RGR - Earnings call transcript Q3 2024 | Sturm, Ruger & Company, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Q3 2024 Sturm, Ruger Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Chris Killoy, President and CEO. Please go ahead.

Christopher Killoy

Good morning, and welcome to the Sturm, Ruger & Company Third Quarter 2024 Conference Call. I'll ask Kevin Reid, our General Counsel, to read the caution on forward-looking statements. the Financial quarter then then XXXX discuss operations Chief of an I our our third the financial and Dineen, Officer, give will overview will Tom market. results, and your After that, questions. we'll to get Kevin?

Kevin Reid

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

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

Christopher Killoy

Thank you, Kevin.

Tom discuss quarter company's will results. XXXX the third Now

Thomas Dineen

Chris. Thanks,

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

in diluted per and period earnings sales were the share. For XXXX, $X.XX were corresponding net $XXX.X million

sales were earnings $XXX.X share. XX, XXXX, $X.XX X per ended months net were diluted million the For September and

diluted earnings XXXX, and net For period XXXX, corresponding XX, per the short-term $X.XX in $XX cash were $XXX.X and investments million. totaled share. At million September sales were our

value no debt. per of invested United book share, Stockholders' in a we million fund year. At equity within cash our equates which X XXXX, of in operations. treasury $XX.X short-term and investments a United of instruments, money first $X.XX of September States $XXX.X X.X:X, which in treasury mature which investments. In to generated was current States short-term exclusively invests XX, and X Our are million, and the was was that ratio months had we XXXX, market from cash $XX.XX bills

Our totaled year-to-date expenditures capital million. $XX.X

dividends XXXX million. of quarterly $XX an for expect average our price capital the share will of X we payment $XX.X million. In total months $XX.X of of million our the $XX.XX stock XXX,XXX the $XX of of a expenditures million to total of shares our approximately XXXX, through shareholders per We first repurchase common returned and at

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

dividend quarterly income net XX% is our reminder, therefore, approximately quarter-to-quarter. varies a As of and

update dividend to returns capitalize strategy, consistently and our opportunities ability our strong financial shareholders -- sacrificing to us the dividends to coupled emerge. for variable allows third variable continually our that Our sheet, balance provide the That's our without debt-free with on quarter. Chris?

Christopher Killoy

recover last as X.X% the the quarter Foundation National from the of year, half somewhat appeared third NICS market adjusted first by sluggish a After to Shooting increased background year. by checks as in overall Sports demand Tom. Thanks,

NICS rate unit period, X%, increase. same the the For increased of our to the of from products sell-through the estimated retailers distributors independent the twice

coupled some indicate adjusted our XXXX, would market that outpacing share. product products disposable and are sell-through while NICS. picked not debt. consumer These and percentage estimated X%, again, are and that on is perhaps increased increase new currently X the months gains even lever-action pricing discipline decreased our XXX,XXX and NICS our used including firearm income, metrics rising II several grow NICS quarterly experiencing given of with not year. Marlin greater gun and sales overall decreased does distinguish increased our not with sales. gun up promotion-rich long-term our represent several would Generation of the environment. current the tough diversity production of to our larger times of first without a sales strong for us Rifle these in the between suggest the retail X%, data demand and of That's finished sales unusual sacrificing gun decreased units lines. Furthermore, American the demand economic An year-to-date product like For families, NICS our rifles, inventory our we strong have goods surprising during rates appear used indicate past distributor despite This the to families since than we likely used gun has in distributors' allowed high-interest sales. The or for inventories focus Consequently,

to for to profitability not production inception new winter since growth, has it at more capitalize us products. Developing excitement allowing of in traditionally the well some to our Ruger. drive is positioned the season, our are blueprint on sought-after the entering increase demand XXXX. success our pent-up Rather, selling We and and innovative new been stronger for fall products

XX-millimeter and We of to recently and year so the XX launch American anniversary, family LC LCP And the culminate will the pistol, are new rifles, pistol, and models Carbine we II rifle MAX during chambered rifles, the with the auto, proud of XXth this you. lever-action with X No. rifles, Mini anniversary XXXX new exciting XX including XXth near many milestone XXXX, Gen introduced to the stock. a XX/XX in product Marlin side-folding retailer IV XXX have the our launched another offerings Target Mark coming auto

the in of New first sales $XXX million X of totaled firearm months product sales XXXX. XX% or

the only focused remain years. We introduced long-term New on that major X goal past sales the value. creating include shareholder product new of in were products

promotes market. Two the Show the weeks Manufacturer and were ago, Year awards Firearm we instead Missouri. recognized the Our firearms and our long-term the our industry promotion in invest We enhances to strategy benefit performance with essential and were be Kansas our the current retailers distributors confidently profitability wholesale XXth consecutive thrilled pricing customers NASGW time to City, the inventory success and year years. long-term channel, and last leadership period not named this to of for consistency in both second and but is distribution XX disciplined X throughout year's in allowing always volatile Ruger's may sales by at in

Gen have XXXX. the been career. run. Those so opportunity and another Operator, third great over Board with POA NASGW Best many for please their to industry. may the Awards outdoor sports It with think New industry Directors American presenting Ruger the people years. the It's with blessed me are highlights can't II rifle have in where would to I I of do been honor. was truly XX I great of of the work the shooting have the NASGW an years in New spent my Best Product. I the earned alongside quarter Chairman's of like Award for thank of Additionally, question? Overall my first also a Caliber and Rifle the we rather business recognition would

Operator

Mark going And Smith of is our to from Lake be first Street. question

Mark Smith

kind about and orders some before, higher we've discuss just a this price. I big on delta for of the between of function to First talked rifles the question of those and discuss can one much just me, you orders still but building color kind the in between timing Is on X to of wanted ASP shipping us maybe difference versus Or anything this them? numbers? give backlog,

Christopher Killoy

price. biggest the a products backlog, in when there that of is impact drives Marlins backlog. biggest north Marlins. the American at are we Marlins Thanks, the Gen number but look higher the ASP of the thing much that in There's that also are thing good Mark. that number IIs biggest a skews number the up is that that selling The

Mark Smith

and Or more this into important in of time consumers' rifles? get fourth this a feel kind quarter hunting be out those building are is like get you delayed lot rifles hands that to 'XX here those key And shipping you in and seasons? of may in for in

Christopher Killoy

maximize now than right quality. of is into down go We're lot are for Marlins doing maximizing XXXX. sure team don't ever Carolina in The them sacrifice QX in we Marlin more to built. production job a going production A we've making We're building particular. North but great Mayodan, in

backlog I QX suspect the into and QX. that least at will numbers will -- So continue

Mark Smith

we items shipped mix margin gross Okay. at being a and were And function that look Was of really then quarter? down. quarter, during the the during that as of of kind that pricing profit

Christopher Killoy

the one an of mean price didn't I market. in competition overall year, the based There's increase things certainly mix. we some on the take this

these the thing, that. also we those year, saw XXth anniversary fixed sharp at And made today we make some deleveraging is levels course, that prices years We volume. some volume the the really guns several we at on when fairly implement -- decisions then ago, we this is the to other was those we're where strategic versus when sure look on market get to our of biggest costs factor

negative other shutdown, QX. has take fewer impact because week the remember a July third quarter, we to of thing our July The the Xth in our workdays always on

Mark Smith

kind last you being then you of me, think know of is And Chris, at. demand, gun insights additional the Okay. And being one of on and about can on that consumer think the used But promotional how consumer the it kind any us environment. your I talked I give just sales any where that? up also in function comments commentary, I fits? for a

to I right these word is of price at the the You level. know but trying just aggressive being discussed -- right some if anniversary items don't

that promotional Or you rotate in industry? like do we other you not compete? through to items, feel be like you're more you the to feel As move these pressure seeing and need do

Christopher Killoy

-- happening rebates. We're lot pressure we in the Show definitely seeing where there. the looking wholesalers. a what's industry. just our at with There's NASGW meeting We're We're got back we're out from of seeing

as gun see If promotional change get keeping We we'll the lot aggressive a may so, efforts. any where through But we of That's QX into not get powder you we're Right look I think that now, you'll calendar typically XXXX. -- over dry. store our next or Ruger rebates month without manufacturers. at from the participates.

speak, continue said, players you're the line single one If nowhere there's Like MSRs, so in making to our from out category. platform there, breadth -- category us products and one product the to capacity AR that having rifles, somewhat lots got help is I but to market only from are particularly maybe us discount. you've keep of variety share offer Ruger's insulated of to we defend In case, to deep. turn then all of

to dry excited a we're weeks, powder disciplined, exciting and do drive innovation one best very, we're of which very of our So couple stay about. keep some continue going in to products, the with you'll to really and just new see

Operator

Our Rommel next of question comes Capital. from Aegis Dionisio

Rommel Dionisio

this Chris, is -- do a I this more get thing been if promotions of to oversupply? just quarters, continuing competitive think the you could in been been fairly your this just I are there is on thoughts bit. hasn't there's cyclical promotional while at I'd in maybe we're years. robust some industry environment for a it's just somewhat period because, obviously, the But industry for stable. such a wonder extended of demand perspective love we on seeing I particularly time a why the several there industry. mean, permanent your mean general again, the over hear point. Is that Is stability

Christopher Killoy

like bit our and fires we've Good think We not with there. in the We crisis might this were election customer of in previous Thanks, talking team is do they of cycles. the have phrase for out think perhaps question. election our uptick just demand And of gunwriters base certainly things is didn't going in quite capacity example, an out year, seen an buying own a week. there. about see the Rommel. one there more industry turned I And is fatigue. this one We

not slowed location. inventoried retailers their have manufacturers They've their inventoried. over got probably and down. perhaps at Some They've over wholesalers

in So of that that some discounting. results

stimulation from artificial I I look stable think but it's we're absent demand, pretty to I it's think stable. as environment at upticks you're and I these see a right, going any we XXXX quarter-to-quarter. look at mean think in

continue new but rather take product now, share I Gen II in looking be be off launches and American hit gain we've I heard my -- share to of exciting distributors. was on to at crystal we're that case, exciting XXXX, far our rifles We the run. market to and grow, for case, to a our clearer the with have scrambling new launch of course, than of that. a trying that success. And trying to be by in home start. things our aggressive centerfire we've We exciting But way. in strong about are know, and products fourth business said, based coming competitors clear impact we're not discount think what for in Ruger's we're family to is products. rifles loud our American Gen to do our excited market that Marlins, in driver going and right try X better got wish very our and We to we're very a to going planning very off is ball new we're Ruger, great the of to is to saw way a way quarter us. the our really centerfire best and big got certainly think American I do the particular, But rifles to like Gen X take from for to up old-fashioned continue I family some going like that. rebates discount And with

Rommel Dionisio

Great.

Okay. We hearing more about look to that. forward

a sort the What were kind parts pandemic other moving there sort -- picture shooters, or that you maybe a items quarters? there of obviously, of of few the around -- here Just lot women and during moving seeing you're whether see participation change items that. picture of bigger that around, any big first-time -- all The that those some last of are these that's marketplace more follow-up. in

Christopher Killoy

We've we've older some offerings industry of the Mark after new products IV this Good get and to turn that the a which going or new lot to pandemic. and to caliber. to to XX/XXs some our home are pistol question. And niches, trying thought IV new XX like that, fun lifelong our way the go we those hang did like a IV customers, great the I manipulate extremely But shoot not target become or once for and bought niche customers shooting those mentioned, things using well, customers, been exciting lifelong XXX female a those into particularly on and of customers to customers Mark the to did, they're range our XX/XXs of those onetime entire try customers. pistols, with like when purchaser have and product sports. strength year the ACP caliber. We're like much who of products into of We personal did hand some been incumbent to buyers like at the There and comfortable easier grow to in again slide Security-XXX, control to XX/XX do gain a first-time very rifle a the if successful may with long to It's to continue upon hands, have variations. Mark during a the participant things of easier have you during some rifle in new with, our lifelong us that lot the particularly been done they the said, their fairly the frankly, have can in gun pandemic. going a and customer a a the customers may they a protection they or our

Operator

time. further I'm questions Thank you. this no showing And at

CEO, So back Killoy, I to for like remarks. turn it closing and Chris would to President

Christopher Killoy

call, X upcoming you important I shareholders. of to want like would this mention for thank especially dates. to our I attending all

is Tuesday day. election Next

all into your have great we country, a thank political you, to with our XX, Without vote. polls speaking to to look the including served to the of forward is the our right our thanks issues the members to of hard-working build we all team economic fought servicewomen country. And rights November our attain our servicemen veteran prayer the Day. exercise to sacrifice rugged, following global all firearms. the of a call in Please uncertain that is great the say reliable and for their at and you the these the who the quarterly of on quick members next and loyal to an us. and especially of to X,XXX protect As veterans, head Ruger of Please service voice those the our moment family yourself learn customers future, ability sell for many We importance. wouldn't and of and We like brave who vote. And take who Veterans Thank freedoms, candidates I sacrifice Ruger would you. to February. educate thank about and design, Monday, important are

Operator

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

disconnect. now may You

Sturm, Ruger & Company (RGR) 31 Oct 242024 Q3 Earnings call transcript