Tom. Thanks
challenging the firearms prior Demand, XXXX the The year decreased for XXXX period. adjusted in the thus NICs, first has far been checks comparable six industry. from months of X%
new and distributors have that of may surveys internal than for market Our in the retailers more data declined NICs the of indicate. overall firearms first would half adjusted indicate year the the
of extension in following: benefited of decrease XXXX. The between the fewer the payment of estimated the NICs retailers in The products to in half of first compared December the offered by an the product XXXX new discount our shipments competitors, from relatively the launch products major terms which new to four independent discrepancy for to be our the decreased XX% may attributable decrease our adjusted sellthrough from sellthrough same distributors the unit of period. and
the The further led anticipation significantly our XXXX, in for were bankruptcy loss that them of cautious retailers. buying And shipments decreased retailer June ultimately inventories protection a filed behavior as discounting formally in to XXXX. distributor to of by reduced significant the
explain new XXXX. and some in sales disparity would NICs both the firearms. which first also the Our This of surveys use data results adjusted between at includes sales increased firearm the indicate of retail half and our used
the in did and offer to extension long-term quick demand not payment deep in the and execution Unlike generate focused attempt terms who of we reckless market, fixes. of our our effort discounts strategy. we of Despite any the on consistent competitors better some weaker softness results, and remain short-term
exciting to We commitment business through allocation. products, optimize approach discipline continue and our develop new will innovative our efficiency to and practices lean cost capital employee to
New product the $XX of months XX% first sales of million firearms six represented or sales in XXXX.
ECXs include the in introduced sales years Wrangler that Rifle. include New revolver, were Rimfire Carbine, product Security-X products the the which the Caliber Precision AR pistol, past pistol only the two major pistol, the the Pistol and new
product As new in our derivatives, line included sales. a reminder, distributor specials extensions are calculation not of and
and primarily the of retailers. independent Production base production our and inventory, inventory levels, reviews our sell-through the of products to distributors estimated manage our we through semi-monthly from
inventory our that independent review our also distributors. We and of
production unit quarter XX% the our distributors in inventory the production as quarter disciplined the was second This in the enter the further quarter warehouses below reduced of decreased of second flexibility demand. XX,XXX combined half first a total of Our allows we XXXX.As the approach production, inventories at during second despite our for units XXXX our of management to and result XXXX, our of the year.
quarter production we our fees were our our three let the took addition reduced. third In high the take workforce. proactive managing additional the quarter shutdown the Over We in weekly workforce. response attrition annual we We time will second shutdown was second two shutdown to reduce the in in in to rent normal implemented quarter, quarter. days that days in the and maintained first of reduced and was
six expenditures capital year low of $X.X is the expenditures, Capital in months us. which million, the first were for
Consequently, expenditures in not lack XXXX. to it the in products. new to expect our as activity total signal product change does nor a we our past, of a capital indicative million $XX However, commitment is new in of development we've approximate this mentioned
and investments is Cash more to and normal $XXX our short-term support operation. investments, million we our cash balance than short-term need of
changed. Our capital not allocation philosophy has
opportunities looking generate returns is shareholders capital. constantly in Our assets to responsibility of strong value. for primary to stewardship shareholder of our creation We're a our the
arises right will in we a We return stand to Nevertheless, at we dividends. if opportunity that right of will the able to cash price. employ the get be decide we where our we the to shareholders not ready capital, to our that capitalize point form at the
Operator, may the question? please have we first
