Earnings call transcript Q1 2023

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Operator

Good day and thank you for standing by. Welcome to the First Quarter 2023 Sturm, Ruger Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Killoy, conference Officer. President like speaker to now Chris today, and would hand over the your I Chief Executive go ahead. Please,

Chris Killoy

first Tom our General Good Ruger to read I'd to of welcome on that, Counsel Chief to quarter forward-looking caution Company statements. like discuss the results Reid, morning and financial call. our XXXX Kevin the get Officer ask the conference Financial Dineen, and our & in questions. quarter operations first Kevin? will After give an XXXX the the your to state I we'll overview Sturm, will market. of then

Kevin Reid

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

concerning the in ended results Additional to SEC the or on the or information and ruger.com/corporate of cause or including, year the materially Company's on sec.gov. from night. to, of Company's first on quarter which at Form XX-Q XXXX, SEC course the at the website forward-looking the we of but time reports as documents SEC the Form contacting may Company by from the for for XX-K these XXXX Company time in the filings, Copies XX, last filed website actual contained be differ to limited statements not December factors that could those obtained

which be the and the forward-looking are the ended Form statements. posted all income our GAAP Furthermore, Company the that Form December XX, of disclaims of XX-K note on for to also to for Please of year EBITDA. non-GAAP Chris? responsibility our reference non-GAAP XX-Q quarter both can update EBITDA in do XXXX, website. net found first our XXXX, We reconciliation

Chris Killoy

you, Thank Kevin.

first company's Tom? quarter the XXXX results. discuss will Tom Now,

Tom Dineen

Thanks, Chris.

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

were corresponding to share. reduction in consumer were led sales earnings demand the $X.XX per XXXX, compared and diluted quarter XX% year. prior the For Decreased sales a period net in first $XXX.X million to

declined profitability our on decreased in costs production with and and to costs. from from toward And by margin materials, fixed of increased increases cost sales, was sales inflationary we shift margin demand undersupplied first production of quarter fulfilling XX%. the the since had early from transportation. XXXX focus unfavorable as margins deleveraging products Our gross services, resulting The in decreased XX% in product relatively energy, XXXX, products and sales mix relating commodities, quarter for lower first lower -- decreased driven from we promotional fuel as and unfavorable XXXX of

our At is totaled $XXX in continued Our shareholder the cultivation strong discipline financial April on focus value our of million. XXXX, and debt-free cash evident balance X, sheet. long-term and short-term investments

are investments within invests instruments, and short-term States invested money in in Treasury exclusively treasury one Our the States which the fund that in bills mature United market year. a United

debt. Stockholders' no our short-term was of equates a value was and equity to had was of $X.XX book share, At X.X:X investments. per and April million, XXXX, X, $XXX.X ratio which we cash current which $XX.XX

reinvested of $X.X operations. form of we from $X.X quarter of company back cash XXXX, the into first generated capital in the In of million We the million that expenditures.

expenditures product to introductions, capital to improvements relating to to approximately total manufacturing our our new We expect equipment $XX upgrades our million and XXXX facilities.

in of through January quarter dividend the million of to the of payment that its XXXX, $X shareholders dividend returned was In company XXXX. and a quarterly special normal the per our $XX first share paid

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

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

Chris Killoy

Tom. Thanks reflect and levels consumer targeting mix slight aligned the in a to resulted This demand quarter with by approach market faithful conditions. a our production production disciplined our better to production overall first of XXXX. XXXX. in products of to long-term and We independent remain responsibly fourth the from quarter The in in flat to essentially first of our the quarter X% estimated about fourth sell-through quarter was decrease XXXX retailers distributors the unit the from of managing compared

following NICS us the Shooting NICS. our finished year. the were the remainder of the the on checks our reduction at and solid Sports a slight trend X% for goods the fourth background National adjusted by Foundation the We distributors, pleased normal units XX,XXX as inventory Comparatively, with decreased from inventory path of products between seasonal of sets total quarter, which for

XXXX. Sales of the the XXXX pistol Rifle LCP XX% $XX quarter products Small-Frame the LC lever-action and first of Marlin million MAX the rifles new the in sales Wrangler MAX-X Security-XXX firearm the represented or including Carbine Autoloading pistol Pistol of Super

the include products two years. in were new that last sales only product major introduced New

Our work. new product are development at teams hard

far XX-XX in Walnut and iconic a presented So the classic stock flooring. and polished XXXX, the Marlin timeless Winchester chambered popular we've alloy XXX blue in an in American Rifle Classic introduced with lever-action steel

XXXX and Ruger a Wrangler a lightweight market convertible model to on to an appreciate. aluminum Pistol new The Ruger frame with that full-size XX be steel featuring sure X-inch Magnum XX delivered price brought will very of competitive customers The popular sites. a Super Ford's Single-Action long on our a frame Wrangler and built a SRXXXX, featured fully alloy Cylinder of the model at revolver adjustable rifle built

MAX-X introduction specifically designed batteries the system market site to And other of its micro-reflex co-witness made our any designed illuminated compact varying hands light self-adjust fiber finally, the Pistol for use a reticle Ruger ReadyDot the optics and Ruger's first without the into conditions. ReadyDots to foray firearms easy-to-use patent-pending with

up these ramping of We products. new production are

rifles Rifle, our product In addition below our Precision categories and Mini-XX double-action several hunting Ruger including levels, all the of and rifles. distributor single pre-pandemic remain the virtually inventories of bolt-action action revolvers Rimfire

highly-regulated to questions, taken have law-abiding states that and a to businesses your discriminate legislative the to firearms and industry. to the prohibit that recognize get engaging in with action from state we agencies Before against I their minute take wanted ammunition the banks

that We legislation practices be to of to will discourage to to treatment industry. the Senate. Act the deal Act is both an Nondiscrimination this are enacted FIND unjust This or such making House way our end Industry federal put including the Firearm and its currently hopeful

our of past the Prescott, Both North Arizona to and Wells banks: Ruger America two change In of lawful because and Carolina nation's five terminate of the course Fargo. and New largest these the of of products employees discriminatory banks by been and sell years, of X,XXX target has are Newport actions factories. Bank the their Hampshire Mayodan in credit us, dedicated to that design extension manufacture decided

question? may have Operator, first we the

Operator

first Instructions] question the will start Lake [Operator you. of Smith line from from Mark Street. Thank Our

Your line is open.

Unidentified Analyst

questions. Hi, taking guys. This Mark. Thanks is my Jason for on for

you as production products make Do such and larger quarter? or a Just up talk curious about lower-priced shipments. other if Wrangler products could mix this

Chris Killoy

question. few both to did Jason, things regular noted Max-X by discounted to There for you point. our the got some we order data, at are our first having new that so at net their but sale that's $XXX, selling more orders a Hi, of looking the the you're distributors product. price incoming priced of still the Max-X a the aggressive street allows quarter inventory every selling the we $XXX We the price. a for That at price relatively to higher day part was price price repositioning one the Wrangler price price sell of average in bias your down what probably basically thanks look a Max-X priced on a orders about at selling to when and down reminder where lower the them that and that things example was average for that shipments. received average data of Also Wrangler than for is Super just

Unidentified Analyst

seeing Okay, promotional got promotions, around are the Really more industry into the what back helpful. you. bottom are a disciplined? the you to you or peers on think your Do will being And race get environment? today

Chris Killoy

Yeah, another good question.

promotional seeing are activity there. out a lot We of

as past. aggressive we've big fairly first stores, had forward at expect months that's not success see go they the as into would good typically the done to the expect moderate were to we counters year. this promotions up as that are seeing And we future the and for a I three some you'll go there We with the see in as see summer the lot box aggressive that out consumer. the but promotions. environment going We're continue we rebates but of continue You'll heat where I in retail to promotional quarter slowdown, that in particularly participated seasonal

Unidentified Analyst

Are segment. queue. Marlin into me great. you I'll seems demand then to strong still the one seeing back And a Okay, rifles? for be nice and just Lever action still for last jump

Chris Killoy

Yeah, very strong demand.

looking in biggest the the of of production the that in terms the me our get one e-mails fact is doing availability come up rifles. later and into for get And We're best to Magnum back In of the the XX of will get I things the the XXXXs this will The Square the to summer, and Bolt configuration launching have XXXXs. we'll XXXs. XXXXs calibers. us be that XXX to

about increase that and excited of overall our will allow to us that Marlin So business. we're production

Unidentified Analyst

Thanks color lot. guys. Okay. Appreciate a the

Chris Killoy

you Thank Jason.

Tom Dineen

Thank you.

Operator

next Thank from line you. Dionisio from question Our Aegis Capital. Instructions] of Rommel comes the [Operator

is line open. Your

Rommel Dionisio

optics obviously, or about you new that that very category. Thank do Good I a introduction, mean, this of pretty this kind morning. entering think the was into dive something and laser you just -- want is is category? this you. you product something category? to The potential significant Is ReadyDot, innovative. guys How one-off,

Chris Killoy

show developed product before We've they a things an get The Good team actually ReadyDot ReadyDot small new well as as cycle. that product Thank things R&D like by actual and before you team. looking -- into like question. materials Rommel. our actual was they get at R&D got development promise the

produce sized own. the So the their our Max-X an optic our batteries fiber it similarly and optic red this for idea excited intent. no that things uses That's I to of and use about we're not together we're did lasers. initiative wouldn't and on and our full-blown particularly light-gathering put about. pistols developing dots dot that call entry a into again team something the fiber intrigued And like optic it

for some both us other vendors out laser to optic. initial And there So partnering successful for been it. distributor -- attempt, through this results a -- satisfying the Shop with and at we're our or But dot level have we with when very website. we've red a our first do pleased very far of River very want been

Rommel Dionisio

very Thanks much. Great.

Operator

from One Lake question. moment Street question line Looks Mark the Capital. you. have we Thank of follow-up a for like our Smith next from

is Mark, line your is open. Your open. line

Chris Killoy

another have you did question? Jason,

Operator

Mark open Street. line ahead Lake from and Let me go his Smith more one time.

open. is line Your

Unidentified Analyst

you. question answered. Sorry, been all have Thank

Tom Dineen

Thank Okay. you.

Chris Killoy

Thanks Jason.

Operator

to like over All further questions closing the any the for don't right. call Chris have Looks I'd back queue like any at remarks. moment. turn I in this to

Chris Killoy

Well, loyal to you all firearms. and our shareholders. Ruger I'd would who And like members call thank especially team, rugged sell the hard-working thank and this customers first the design our of X,XXX off to of for build like reliable attending I

was us Xst. XXXX our their at join agent for which Thank be again. on to once transfer from available instructions is and on hope website. Thursday, filed I received Shareholders or from will Meeting, Annual the virtual and brokers. June held our you directly Our should April XXXX proxy XXth be voting able will online our have you and statement meeting SEC's Shareholders either website

Operator

With participating. conference for you today's concludes this call. Thank that,

have good now disconnect. may Everyone You day. a

Sturm, Ruger & Company (RGR) 4 May 232023 Q1 Earnings call transcript