Sturm, Ruger & Company, Inc. Declares another Special Dividend of $2.85 Per Share
SOUTHPORT, Conn.--(BUSINESS WIRE)--
Sturm, Ruger & Company, Inc. (RGR) announced today that its Board of Directors voted to declare a special dividend of $2.85 per share on the Company’s issued and outstanding shares of common stock. This cash dividend will be paid on March 21, 2013 to shareholders of record as of January 31, 2013.
Chief Executive Officer Michael O. Fifer commented on the special dividend, “The decision to return this cash to our shareholders was based on an analysis that indicates we can continue to fund our high rate of organic growth, including expected increases in both working capital and capital expenditures, and fund our quarterly dividend while still growing our cash reserves at a modest rate. In addition, the special dividend will substantially increase the Company’s return on our shareholders’ equity, as the equity will now more accurately reflect the net assets being used in the conduct of the business. Likewise, after the special dividend, our long-term investors will still own the same future stream of earnings, resulting in an increase to their return on investment.”
Mr. Fifer concluded, “This special dividend reflects our confidence in the future to be able to pursue good opportunities that come our way. We remain committed to our new product development strategy and will continue to seek accretive acquisition opportunities and prudently expand our manufacturing capacity.”
About Sturm, Ruger
Sturm, Ruger was founded in 1949 and is one of the nation’s leading manufacturers of high-quality firearms for the commercial sporting market. Sturm, Ruger is headquartered in Southport, CT, with manufacturing facilities located in Newport, NH and Prescott, AZ.