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RGR Sturm, Ruger & Co.

Participants
Chris Killoy Chief Executive Officer
Kevin Reid General Counsel
Tom Dineen Chief Financial Officer
Ryan Hamilton Morgan Dempsey
Mark Smith Lake Street Capital
Rommel Dionisio Aegis
Paul Saferstein First New York
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Third Quarter 2020 Sturm, Ruger Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today’s program is being recorded. introduce Officer. for to Killoy, program, like Executive Chief now your today’s host Chris I’d ahead, go Please sir.

Chris Killoy

and Ruger quarter & morning, Company Good welcome third XXXX to conference the Sturm, call.

Reid, I on caution statements. Kevin? to get read forward-looking would we Counsel, to started, ask Before Kevin our General the like

Kevin Reid

is Thanks, want predictions forward-looking intentions, management's hopes, forward-looking everyone expectations or to to that the are made in important or Chris. of the this the statements. from It results company's the that We of statements. future differ course could such meeting those remind company's statements that note state beliefs, in projected actual materially

do XXXX, again company both Form to our the and XX, forward-looking responsibility the note net website XX-Q ruger.com/corporate third information XX, December website. the these ended the the of ended are filings, third including of Additional XX-K or which to in at of Chris? Copies of forward-looking company XXXX, we results at non-GAAP December on on EBITDA the EBITDA. statements to which that update year by income in obtained non-GAAP the the actual but the or, posted not course, is Form XXXX, quarter all the company's SEC limited time XXXX, the sec.gov. found for of could for reports Form factors or SEC the our in concerning website quarter the to on reconciliation contacting contained of the Form cause for GAAP We documents reference time those differ materially on be Please company's and company may XX-K from disclaims statements. night. from that XX-Q last year Furthermore, SEC of course, be for filed can our to

Chris Killoy

Thank you, Kevin.

confidentially third our continues the to in Ruger. update we the provide pandemic third throughout the global was had The impact remained remotely cast COVID-XX proactive any health all has on personal I adverse employees maintaining resulting maintaining $X.X its our already on health the quarter and local business expected of costs communities. and want or Before are possible, which been with workplace; an of with throughout and million the safe to facilities with to social other approximately to XXXX, implementing total visitor departments approximately distancing cell; police and fire local care communicating including introduction donating The to manufacturing $X.X of encouraging impact our by additional quarter we of employees actions in from of COVID-XX our facility economy. discuss health a Nevertheless, cleaning, business employees pandemic additional processes and environment; COVID-XX work factory and dedicated potential of in minimize wherever on to on manufacturing March, that impact the health paid mitigating assisting issues access results, two to maintain hourly time and each uncertainty Since coronavirus hospitals, people every financial providing through million onset negligible and clean and XXXX. have safety our new equipment restricting to protective manufacturing it's facility, recognized. to in employees in safety continue has our the and sanitizing nurses; weeks these off;

unknown. any impact keep clean I'm the the team long-term modest paramount everyone safety from up outweigh benefits limits largely work of certain XX% our of to us health our of expenditures, offset our the incremental including to but action from travel healthy XXXX. areas short-term rate the health costs. current hiring quarter trade and increase conference and dedicated realized of to and adverse third and production production, operations. ability happy the show $X.X do, deferrals, to the self-imposed the XX% When facilities onset on million we employees which ramp COVID-XX the also resumed costs, COVID-XX quarter sponsorships, to on The despite commitment impact our workforce, our expense reductions and of far COVID-XX and the It participation size to business, future Ruger of safety suspended a continue and our hiring workforce hampered may the and in was from some priority. as until we June. reductions This the will and We a approximate involved. thing of And These March report, of advertising. hard have have the We of ensure maintaining expense and at in right deferrals allowed remains prior

have We have our to only fortunate limited operations thus on far. been restrictions

shareholder Our and through our and manage crisis to value. as financial strength balance by debt-free evidenced this provides focus financial sheet of continue we security on our goals flexibility long-term creation and

Officer Now our on our give an and assets. firearms Then Marlin’s third the Financial will purchase to quarter then offer Tom operations results. market current to our approval Deneen, questions. the update Tom? to I'd and of ask recent you to Chief the financial we'll I like And get your overview discuss of

Tom Dineen

Chris. Thanks,

million per diluted the sales XXXX, quarter For share. $XXX.X earnings $X.XX third of net and were were

period, diluted share. net year earnings prior $XX sales and comparable were were $X.XX million per the For

diluted months of million $XXX.X were nine earnings XXXX, share. net first and sales per were $X.XX the For

totaled balance last five times cash drivers improved than more and and net were year. in short-term in share. increase For the earnings our significantly corresponding main sales sales $XXX.X XXXX, $X.XX of period $XXX.X were The September sales diluted earnings, promotions million. quarter were and investments XX% the reliance were on our which The per third XX, sheet. At million reduced than greater XXXX,

Our current ratio we was X.X:X, have no debt. and

first totaled Cash special by million. operations in generated cash quarterly balance dividends $X million was $XXX.X returned the share. XXXX, per Our and company $XX Cash In dividends, was At shareholders during $XXX.X of the XXXX, the This customary equity a nine the the aforementioned September paid through of million, current $XX to is nine value to which book of payment of by stockholders' dividend months per special $XX.XX of returned the reduced equates reflecting approximately million months the its XXXX dividend $XXX August. to XX, share. shareholders. first million.

a share Directors of XX, November for payable quarterly of declared XX, on Board $X.XX shareholders dividend of per Our as record XXXX, November XXXX.

Chris? approximately financial As reminder, is the quarterly a third dividend quarter-to-quarter. our That's and therefore for income of varies XX% quarter. update the net

Chris Killoy

quarter. Tom. independent in of Thanks, quarter, the continued first Ruger XX% products Consumer to increased prior unit estimated of the in the stages to to months began first retailers XXXX, surge nine period. compared which intensify in latter demand, Demand. The sell-through third the distributors of year from the the to

in as consumer For the available attributable consumer the referred concerns for limited adjusted The authority Background home for the Shooting released firearms Industry quarter, August, organizations, be Americans inventory cities Sports Approximately in about that XXXX. unrest first the the alone. that. civil Sports middle firearms the the about increases same gun nearly by personal that to time a Association Check had been Foundation, our were showed many purchases tremendous commonly X to demand XX.X enforcement the and continues background million by continuing that in XX%. System United by in market million constrained an of Trade National Criminal the industry. law first demand is and period, firearms and channel. reduction call likely the as in protection the report That States the checks, of by protests, With some that, owners, in distribution National increase year opportunity driven time from and for survey in growth throughout demonstrations, COVID-XX have XX% our our due surge to Foundation, think stemming for to entered defense funding staggering those adjusted third Americans pandemic. likely concluded right are purchased NICS, Shooting updated of In National Instant this These increased and the

XX% participation field seeing hunting hunter Additionally, program. the to gun also increases We're programs sales like NSSF's new of buyers. represented almost female in fork and in those education, license consumers

for and what to see excited are future have firearms the due might pandemic to and the in certainly participation consumers industry, we who come and the from about are bright. is future defense, enjoying plinking, all now is amongst believe or starting hunting, But of our unrest. aspects to established we're new So to increased personal stickiness competitive that ownership a civil shooting. We

new Sales New months sales $XX of products our products. in XXXX. of or first XX% the firearm of represented nine million

allowing rack introduced major for pistol, Caliber only based include is the with awarded that two II years, II Professional our and for manipulation best rifle, with sales product products take latest weak platforms was training in popular Ruger-XX Association LCP include the for the a providing Award the Outdoor which XXXX shooters enhance single more comfortable off range day introduce a revolver, way at at to recoil to for a also easier the revolver, lower platform action our hoped even shooting than the enjoy we and The LCP on long Media extremely conjunction product slide and on by new system, recently the which or sport. strength Wrangler taken were which new have the and range. utilize light those new NASGW. provides or which overall has LCP fun New XX The venerable could past in the a classic

firearms, existing PC Charger pistol. both Lastly, the new to our for represent of based style pistol on pistol. this and products the response These demand market two configurations AR-XXX a

of market, is in lines We future. and are very excited about the consumer Even and keeps the for new this for platforms. us these media reception these impressive excited current the reception

included is new gas quarter, Please models, value product lines total loyal As demand intentionally the and families reminder, in note our distributors, but customers. XXXX. product our our only provide exclusives. not different With Ruger to our therefore ferocious core we taken mature over high and and launched of distributor focused a pace new on they foot extensions a number off engineering calculation, and our new product in retailers seven four of great in third unique still XXX the models impressive. a pedal sales business teams line their very brings offerings firearms derivatives which to not of This have product are

look and The into to we new the our updates surge opportunity again, are production queue the I incredible exciting forward get these innovative platforms, models capacity providing I've inventory. new when and firearms. products of launching heading Production new closer XXXX. a demand, taken in quarter. during We variety developing and to outstripped products to up third

As our decreased third of end our over quarter the XX,XXX this some combined units. distributors XXX,XXX is a context, to year. inventory warehouses last this at To the in and down combined put inventories compared result, and units

share of the retailer that the first relate Although the of the new retail in brands we June to we hiring I to March Capital for better inventory that data help $X other limitations, million. our which lion's rate bringing at and some from XXX year the expansions since families end allowed we to do efforts by depleted. most in earlier available allowing quarter, Despite the well to at available expenditures second not that of have largely board. us targeted of limited demand. information had development and on employees firearms folks comprehensive suspended meet capacity remains product had new I inventory over nine Ruger product were as these count until our demand. these happy months current Capital mentioned hiring am head level, facilities suggest greatest investments increase as report the the expenditures. our have production to increase the of The all at were

Now I'll Marlin. talk about

the accepted our Outdoor’s of As Bankruptcy Court in some many offer proceeding of to by likely late aware, Remington approved conjunction bankruptcy by September. the you in Marlin was with and are purchase Remington assets the company

of excited products very catalog addition and And reliable are are We excited with too. the firearms. our of rugged to Marlin Marlin customers the loyal broaden

rifles on anticipate first closing have will Marlin second and Marlin we bombarded assertions an Operator, of we forward Ruger lineup the of for with focus the the We in fit have our our calls pending in is XXXX. to overwhelmingly in look getting been up may then to the our on announcement of Marlin quarter fourth running Ruger. reintroducing existing this facilities. question. purchase, half phone and We the purchase XXXX, reinforcing since lines excellent the shooters positive and We emails

Operator

Hamilton Ryan comes [Operator Our line Dempsey. question Instructions] first from of the from Morgan

Your please. question,

Ryan Hamilton

quarter. on Congrats the

Chris Killoy

Thank you.

Ryan Hamilton

You're us the quarter to most cadence the of July looked and welcome. so of through kind Could you like what on? walk June compared

Chris Killoy

constant we saw such. July, of see it right and We or typically decelerating. the level of from sales We data the beginning through quarter As you not necessarily know, constant. throughout saw we disclose did But monthly don't demand right frankly, accelerating it stayed September.

Ryan Hamilton

Excellent.

the lot head Are there about, a maybe increasing side. a to you're commodities constraints talked safely to on on production, bodies new on You count other manufacturing help seeing little, prices? bringing that any commodity touch

Chris Killoy

good question. A

seen who impact really either in constraints some way may or have shutdowns other negatively commodity we pricing But haven't any COVID-related facilities. in our suppliers of suppliers or availability. interruptions negatively our temporary production. some limited anything the within had We've We way of haven't seen the from impacting than that, their or of commodities had

Ryan Hamilton

Great.

far roughly, now? goes, at As right count where as head you are

Chris Killoy

about north folks. of I checked last X,XXX employees, think somewhere on I – X,XXX or between somewhere

Ryan Hamilton

walk me each what are shifts And the you looking to Great. like have through plant. at, don't current

as whatnot? shift how look give far me things estimate a as and Just count rough

Chris Killoy

of a as for it's third got in when modern mean, factory, product a We've like as time and always given account first, in shifts as or five take things Well, some that. cases, an not weekend I second line clean shift. course different as many we

three So factory can associates, accommodate factories with be of obviously all in we are the break second shifts, those shifts first we'll best our schedules flexible and on what depending how and the depending firearms product, can staggered in to on and our demand, and up capacity. shift, on full the on then major depending shift, the some we additional the do typically, running weekends terms of

Ryan Hamilton

right. All

is Marlin of manufacturing remarks Did your your there. the purchase plan current their bring far correctly you You and just on as hear your I touched to kind over as facilities? of all into

Chris Killoy

facility, move fixtures, New into move equipment, product wood facility, cetera, and The existing et Alabama York in tools, Ilion, the Missouri. facilities. Lexington, line the that Yes. coordinating to Marlin in their split of was process the a between We're Ruger all Huntsville, gauges, shop

Ryan Hamilton

back want one me more I on. from I'll and hop then

will on that little adding line using maybe potential bit capacity, on What you As this more. And tooling as a touch additional Obviously, at? kind capacity? capacity add we do were but to to one production new far add of Marlin is capacity we'll there can and just your the whatnot? add that a the they think current

Chris Killoy

fixtures machines. haven't plan as very important the Marlin engineering obviously our the We're great volume products customer closed that's some from to glory this got slate et as while will I plan. tools, to as excited yet. continue a consumers deliver that incremental mean, former be gauges, And that Yes, I everything to And to we've the cetera, property, thing CNC to overall drawings. full of bring still transaction well back mentioned, business. base. we our the its equipment we is to and And intellectual

Ryan Hamilton

or running of you business just the you had can't Have that whole I add inefficiencies know you lot this. – touch Have of and value? of think you businesses they a in lot been can a way you the seeing in probably lot a there been where

Chris Killoy

was really not it regime. I'm prior to on comment under done able Well, the how

to course, limited I'm of constrained. as Of bankruptcy, got they they ability, capacity sure produce. closer by were limited

obviously a given our Marlin we're day to forward So in new Ruger structure, facilities. looking capital the for

Ryan Hamilton

I more. couldn't agree

I you. back And will add of think Thank value. you a line. I move. it's a hop in think I'll guys lot great

Chris Killoy

you. Thank

Operator

Thank you.

Smith Mark Lake from the of Our question comes from next line Street Capital.

please. question, Your

Mark Smith

about off was ASP? price mixed can How a much from me, you increases? little versus that First talk bit of

Chris Killoy

came as it Ruger quarter, increases. where from. Mark, the in things And was product got, was That you've In is move related to third none price product just the all mix, around, of a entry up value way as that point higher guns priced, price you've the are, got other at some a the course all of products of level line, kind Wrangler much price. to revolver such that

ASP the So around for order a we the depending at shipments and – when look it book, moves at on both orders quite the bit. we look

Mark Smith

talk And plans you about? can there that are taking increases price on

Chris Killoy

price small the did of increase We beginning a effective take at November.

that the in fourth of reflected quarter. be most So would

Mark Smith

anything kind give just can Okay. during the that gross sustainability outlook And gross quarter. on obviously margin, fantastic us margins Can there? profit speak and profit of then your of to you

Chris Killoy

forward-looking as nature. that make don't know, a Well, things and we projections you comment of

increase. However, level in our is other demand, efficiencies scaled continued the factories, as we our environment seeing increase thing of volume this promotional with the And seeing where we're of – any sustained we're activity significantly is the back.

products. decreased in we've the So obviously to, And money that's need margins. or like promote shows saving on addition trade – a discount certain much things effect travel, the on has got a positive and to

Mark Smith

the production on you continued quarter for that maybe during Okay. And potential can the kind I of on cadence But of kind demand know and during cadence talk sales quarter. don't that capacity? comment the the then, of and you increases increases in and about

Chris Killoy

back we we’ve biggest increase Well And folks get increased production up that facilities, are at in we to new thing hiring our efforts, operations trying and had increase get to I started and all and people on turned safely, steady on June. And a forward. in those quarter. them would employees HR speed that shop that makes the to said great bring And effort expect fashion trying our as of throughout now in them where doing safe with the continue the job, new a our on as headcount Right a it on, to bringing we folks our third the productive. sense. go floor

Mark Smith

that. Marlin, you as about much then And can as Perfect. questions just two talk on

maybe CapEx, talked full roughly the about being year. guys I think, for You $XX million

number? that of confirm if how is acquisition, that's and kind that of of then much And that? some you any, in If Marlin can equipment that, tooling

Tom Dineen

CapEx business. is million existing figure $XX That Ruger

certain related of none that product a lines we That as transaction is and lines. recall And product filings, line, about Marlin the of new in strictly million new price of existing figures. purchase you so facilities Ruger small reflected a which deposit. was and talked the current $XX expansion primarily product And paid from was, that may that's to we

And cash of so our got we've to on still hand. that the pay from balance

Mark Smith

last one And any that maybe – you you Okay. gone least producing do the start inventory by then and of having retail? or firearms? And the where in on kind pushing issues today, depleted distributor that Marlin idea see any on Marlin time stands inventory at at new out

Chris Killoy

fleet the think is have of already. most to I probably inventory that depleted

inventory at retailers at you have have distributors cleaned obviously visibility not firearms the channel. If levels of inventory, brands Ruger But been firearms we just better the of look country, most throughout and all our out of. the at most

So we sure. think Marlin, that don't probably we the that's same although likely with for know scenario

Mark Smith

Okay.

guys. you Thank great. Sounds

Chris Killoy

Thank you.

Operator

Thank you.

question line Dionisio from next of Our Aegis. Rommel comes the from

Your question, please.

Rommel Dionisio

morning, your a about new a more. just ask Good bit I wanted little Thanks. to touched little you comments, everyone. products. in that Chris, about upcoming

within given that. the strong Just products new obviously, existing two how is for last including the launch demand years your products, the in

well originally know all As call at are a year given about beginning end little could you these sort or scheduled for the you think stick just that approach maybe with you typically Show just of some out many But of just new about products of still planned the the year, SHOT for about given we that's least of introduced. as, moving January, talk you want as new factors? I when that that COVID Thanks. to the schedule perhaps whatever or going how just pushing maybe to for bit, terms or should Do potential now. maybe limitations marketing, because think in cadence, we the

Chris Killoy

new time. hopper. see ready or driven SHOT product couple quite quarter people are of And know, Ruger, focus as a know products Show second, is They a the normal and launch. January, fourth season when show Yes. ready. going a be schedule third distributor based the of do lot times products got them a of ready by product you new We've window our prime lot to a the to new we Well not long-term. you for product And more February, But when as we'll that typically really launches. on are Rommel with cool in frankly, is on those

driven our We've ready of We're even for announcement. those teams But ready likely can. So going the make are when time are think new them make we'll that's have focusing lines, are from that to a out it and this distributors the more couple fast in same we're to environment, sense to we guns going we to production though products new got January quantity in the this will sufficient we have as to they're can products. they really And the period. by while when want sure as thing launch. be on go shielded product engineering that year. great have in If maximizing we we that ready, for I that inventory existing get again, out sure our flat the make

are. to it's interesting at and an that ahead products teams that going really paying are soon dichotomy those selling They're product existing attention So full the speed fact we'll new a be the as as rate. rapid ready no products are

Rommel Dionisio

great. seeing Okay, forward on congrats we the thanks, them. Well, look And to quarter.

Chris Killoy

Rommel. Thanks,

Operator

Thank you.

question the from from next follow-up Hamilton is Dempsey. Our Ryan Morgan of line a

Your question, please.

Ryan Hamilton

prices I constraint but AML retailers and a asked spike quarters, the of of a are AML last know or I've any whatnot couple times new being buyers? indication to from prices of seeing couple shortages on you or over this potential

Tom Dineen

hearing hearing their Well folks for evidence retailers as the anecdotal that are AML. and sales certainly from far as demand we’re our

producing are fellow AML. our think folks ammunition the industry in I well, out at flat as facilities the

their negatively a seen think outstripping it's But of impacting haven't likely demand I So sale well. yet supply firearms. question certainly in case, as that

is at up ammunition where in not demand either supply you're and supply unlike And some AML. previous seeing case you are the shortages the both levels in seen we've sale I high for seeing of case. the times that impacted with definitely think, the because in firearms caught this the firearms, demand this – case,

salesforce. sale on were a available, a where our question not At the of from that's informal but least our it's So it and hearing impact situations AML the through not, we've seen guns what negative like gun. we're had past feedback at was some

Ryan Hamilton

design, Makes is do to when sense. sales, is on classifying else new plan On somewhere those be Marlin, or put you starts… product as new products that going that

Chris Killoy

question. Good

I count new sales. think we'll product probably as

So probably identify it. good that's a question. We'll

a Marlin the We've new of that products. Marlin Ruger rifle line product done. sold Marlin mean, think through product. semi-automatic line. We've So be and to course some got Ruger probably we XXXX I got equipment and has work we Model versus great XXXX, was of And XX/XX. lot they've all product of the work the know moved got product caliber beyond of new what's XX there's ahead lot than of the facilities over also Jesse even get firearms on units the a to more center-fire us lever-action get believe, that XXX, the into time, XX got that a Ruger to I closing, like

very the to we're have access marketplace. mix by that So excited to of bring the back we're to, products going to

Ryan Hamilton

were it missed you did say put going that have And you to may I production? where earlier,

Chris Killoy

between be be seen. least the the Mayodan, three, remains still to New two final think Hampshire to more but Ruger it's between to Carolina split going The be determination, facility. North But that Newport, it's all likely split at I potentially facility and facilities

Ryan Hamilton

time see have years And historical couple – touch perspective, just But demand, then this just in compares this production, me, Could you what COVID of kind maybe surge from the that just from one – the more every a goes, where demand. we from most historically? where Obviously you could just out we we're reflect? see can as touch take on to maybe far of this as what does of period happen historically we that of equation. and

Chris Killoy

different the us seen industry people time the our of Weapons the we’re is, than resulted your home, long-term in the XXXX. years XX even out COVID-XX to plus different with I at still forced your my where run-up surges, in and past things in variety affects a Ban industry, again, we some frankly, XXXX combined categories. the stronger more wide can more it range saw but we've to product And in out I the demand when with that in of fundamentally But think, practice to this distance, has positives firearms. think, enjoy Well, and with what it's you in time Assault spend for in social the field, that or sport getting families some to

positive a slow some the rather then that just for in seen things the than demand. surge industry we've I term, down longer think are over of there's as some the that fundamental And years. implications differences negative

we'll attention to continues look So inventories. close watching I we at to attention, – think We'll pay be how very very distributor flow. demand to attuned our

you associated And and to a can in Our for eye retailers touch I salespeople getting But the distance, now, especially out the of trends the I key right depletion or are local or of inventory friends still seen warehouses, key said, it. like the different. not mean family. new whether a never it’s an shells family the product your with we've within buyers, we'll other shoot good while be lot social on long-term their the distributor there keeping your fundamentally are to watch channel, trends. is quite Ruger level thing inventory with think this, of there’s And I in retailer, to return with outside warehouses, entire

So I three in and than I’ve business. think in the my seen different fundamentally stronger decades

Ryan Hamilton

luck Thank the color. appreciate of you I the in Good year. rest it. for the

Chris Killoy

Thank you.

Operator

Thank you.

comes Saferstein Paul Our line next from question First from of York. New the

question Your please.

Paul Saferstein

for taking question. my Thanks

of owners. COVID Could you new to kind about million talk cautious make bit $XXX – it backlog point of that your to your there's in demand how the manufacturers and some which you many position the then potentially you forecasting? clearing you're incremental related see how just five on You XX-Q talk here gun about to tells would kind sympathetic that might you might little History many of multiple just backlog comments secondly, over guess, brands. our I'm risks your in million about that. they I which Can a are unique of how side, guys away the purchases product to demand that go world. you. relative a you versus take And of in you have quarters fulfill hiring, Thank if you demand, mentioned don't

Chris Killoy

guess Yes, I'll the talk first. to a I couple thank aspects, last you. of one those maybe

right is and lot So are is distributors backlog, distributor distributor sales. is folks as moving. retail what sell a we this selling at dwelling seeing know, candidly backlog. our look What call closely spend through significant looking we we what watch into on now. lot product time more one call don't thing, We're on when how of we and It a of at the our

And note orders our Ruger wholesale non-cancelable. so backwards, independent our distributors on from our are distributors, one

So while to our so stop they're is the goal channel, to cancelable not speak. never

want and not So distributors product exact able see and quickly we to to it got getting they've to and cross-docking pay and don't cases their it's opposite now, moving be where retail. it the Obviously, out in shelves right empty very struggle they're bills. our some

to we the our While don't distributors said, sales lot of business pay based like that from a attention retail. we backlog, on, to run I

question, Paul. remind the focus an you part number, even that's again, if And on. first not me we of So again, it's would your while impressive you something have to

Paul Saferstein

Hiring aspects.

Tom Dineen

extrapolate to diminishing to or question what would I – that history kind – is to related many backlog. what employee XX% was buy. about the new if the XX%, talk and guns fulfilling, kind the the hiring how of about it Well, But XX% keep really might are. up with that you like And and seems kind five of demand annualized million owners numbers you tells mentioned, decreasing of gun the they related least at separate growth,

Chris Killoy

the your good. years thing some appreciate that I goes the okay, I to appreciate business, with XX Right, gun started patience. of That's along forget things. it. But I other

Tom Dineen

Fair.

Chris Killoy

Yes.

from operation marketing a So, a there challenge that great is the it's and standpoint opportunity. standpoint

well just We gun or a not like customer five that, you our think, convince think protection, me, we'd Ruger? are third do importantly, whether at something them much with we that firearm, fun range make range to Ruger our just think, caliber line one interested that's our, sport our you've personal a entry-level, much personal or wide the the just covering that available. great in million people that and do and I Prescott, potentially rimfire as on in serious If home standpoint. or be. three, gun for two, had hunters. bore stickiness. gun because some for see XXXX, got very a suited you into bought up have calibers is so a the may new number IV to a made that may might more like a convince them that need And with got pistols diversity got look And the grown then four? range great get rifles to for, protection excuse might all into of or It's pistols customers this its semiautomatic our I firearm, the going protection rifles, And entry-level for the even buy product you such wide protection, calibers buyer. beyond How it's handgun When on to be home Ruger a Arizona. big firearm the precision who first and shooter have So for them them fun XX second, many a lot and them to from or how hunting, fold way do, the we can to product our up show to of side, that, broad fourth get a of rifles. XXXXs, range so products we There's how Mark range, can XX and out sure that person's you new you've line feel

product we think for great got some think, continue think options we succeed. folks. we'd is to add us. to We the frankly, to that like we've chances And our given So Marlin line for to that opportunity, going

Paul Saferstein

could know history, to an And you you I customer on of of look guns, if one number, if like how average? like many a your buy, does at like don't point kind potentially

Chris Killoy

it. share per customer, the got rivers them of the out than can probably line. most diversity story exact know think, number everyone, marketing and multi of the customers, number better our acquired Well, more on are of you first have off probably of owners. I in to look much got of get so because Ruger they those mix that think most we – I'm behind going buyers. but multiple the rattle that, safe gun choose product I the do everyone And but I throw gun guess But folks we products gun, over guess. that a the them at than do whole of that some from and there's hazard most offerings, once not a we When XXX material, fair you of we've over our in product the flow line separate to that get that hate I to Ruger line they we've

Paul Saferstein

could just that? an getting now Do government. last have Got comments one in, one like the I sneak it. extended seems from kind a license And right gun of you around any if timeframe

Chris Killoy

state in, varies think, I likely process. it you probably Well, state as Depending what are you by it a know. long on be can

went a were on lot significant done. and surprised think live were go purchase state first depending that to potential first buyers obstacles they they I there that buy when again to firearm, getting the that delays of

just we impacted that and by state like course, one, of think were governments local all So, us – COVID-XX were. of the

exercise at hoops And I so were the and had just through rights. they jump second buyer is had the were that's people hadn't biggest to amendment order I to hurdles if they But impact. know they their in think have factor surprised, a some may of surprised before, gun that been some

Paul Saferstein

you the increase there'll can kind over do seeing? would of Yes. Yes, amount And the increase mentioned, that of weighted because you that's just quarters quantify price the definitely New be? case the what the demand that average increases more here. think next be are And price several you York you just in of

Chris Killoy

do mentioned of of Typically, on we've about of the October. was beginning price think, year. we actually or In I had beginning this a increase beginning the November years I the where case, typically

X% was board. it so across about the And

of kind increase. that's so And in line with our price annualized normal

Paul Saferstein

Okay.

even in X%, about you would of where be So the is things looking demand? annualized at think increase kind

Chris Killoy

mean, about that when firearms, I Faber it fact to next they're of I in purchases of rifle. the that even lot market, think, contemplate thinking hunting Yes, conscious their comes we're people this a

that did And but It took was past. we've increase, be a did do that it, just line we did anything I in done again, in take would would years December, it is price we but so normally we opportunistic. X% right with do maybe consider in than certainly to what in not October rather

Paul Saferstein

everything. Thanks Great, Appreciate okay. again.

Operator

Thank you.

a of the Street Capital, Lake Smith follow-up please. line Mark Our next is question from from question, your

Mark Smith

maybe kind month firearm kind Can can MSR you as one it mix Can we've you’ve if and demand by wanted? just Guys, one for would or seen seen traditional anecdotally, if of find then we season, be expect, handgun couple months, you over now quick and me. that last the people a of that rather if so ones. typical they the seems any seasonality from talk it more the just high like of than that rifles. And fact to the about seen? to hunting say demand driven hunting looking We in are they you've think that's more you about just enter that is one a

Chris Killoy

extremely centerfire centerfire prior we last to planning On over strong market were topic, well Good rifle our cycle done American has for Ruger well production COVID. of And a the rifle demand and question. hunting a years. rifles couple and

have strong our there on thought been. hunting be we So sales rifles. will They

to hoping on potentially product, in Maybe maybe you're MSR purchase in correct into they stores an looking came inventory, on on I or that pistol, a gun extent to something. think purchase bolt-action make buying up make ended to a and have and type people centerfire some a a available gone based rifle.

some traditional well But very like of heard cetera. et XXX with as been calibers, we've that. calibers, hunting the So pleased our Bushmaster, Legend, of XXX as newer certainly, rifles in some anecdotally, sale we've the

And like but we hunting were we I said, good so than disappointed thought that. in we season that's been been expecting haven't and initially, stronger – certainly, a

Mark Smith

Okay, great. Thank you.

Operator

the program. further This conclude the session does program for you. like of I'd back remarks. Thank to question-and-answer Chris any to hand Killoy today's

Chris Killoy

and please nurses, responders, the other who go these I and thank also dedication closing, plus fight In harm's I On fellow during time most way emergency to behalf would you. in medical take who like thank of all to And help first to the Ruger, and our work our again, pandemic and at employees Thank to are times. to, hard their all want difficult for Americans this next of continue personnel into doctors, week vote. need. X,XXX us

be to cherished. should right vote Our

our So February, your conference Ruger. heard please be ballot quarter box. for look for you in the XXXX. attending and interest to in you. Thank fourth let your forward Thank at call continued voice results We our discussing

Operator

This ladies you, and your in participation program. for Thank today's does gentlemen, conclude conference. the

You may day. now Good disconnect.