Sturm, Ruger & Company, Inc. (RGR) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by, and welcome to the Sturm, Ruger & Company Annual Meeting of Stockholders Conference Call. [Operator Instructions] I would now like to hand the conference to your speaker today, Ron Whitaker. Please go ahead, sir.

Thank you. Good morning. I'm Ron Whitaker, Chairman of the Board of Sturm, Ruger & Company, Inc. It's my pleasure, on behalf of the directors, officers and employees of the company, to welcome you to our 2020 Annual Meeting of Stockholders. Although we originally had planned for an in-person meeting for our usual practice in consideration of the COVID-19 pandemic and related CDC guidelines, the Board concluded that it is prudent to have a virtual shareholder meeting this year. I don't know about you, but I think that's probably a good thing because I'm looking a little shabby and my shaving razor has not been allowed to have visitors for several weeks. On the positive side, we believe this format will allow greater participation by stockholders who otherwise might not be able to attend a live meeting. As is our custom, we will conduct the business portion of the meeting, followed by a presentation by Chris Killoy, our President and CEO. After that, we will entertain questions from stockholders, which may be submitted via the web portal. In addition to Chris and me, Tom Dineen, our CFO and a Senior Vice President; and Kevin Reid, who is our General Counsel, Corporate Secretary and a Vice President, will be participating today on behalf of the company. I call to order the 2020 Annual Meeting of Stockholders of Sturm, Ruger & Company, Inc. Please note that the polls are open. If you are a stockholder and have not voted or you have voted by proxy and wish to change your vote, you can do so via the web portal. We will be closing the poll shortly, so please vote now if you plan to vote during the meeting. Also, stockholders may submit questions through the portal by typing a question into space provided and clicking the submit button. If you are asking a question, please be mindful of the rules of conduct for the meeting, which are posted with the meeting materials. Our agenda for the formal matters to be brought before the stockholders today will be as follows: to address the necessary appointments and documents -- documentations for the meeting, to establish a quorum and to take votes on items of business properly brought before the meeting. These items of business are, first, to elect 9 directors to serve on the Board of Directors for the ensuing year; second, to ratify the appointment of RSM US LLP as the company's independent auditors for the 2020 fiscal year; and third, to hold an advisory vote on the compensation of the company's named executive officers. As the company's bylaws provide, I will act as Chairman and conduct the meeting. Corporate Secretary, Kevin B. Reid, Sr., will act as Secretary of the meeting and was appointed as inspector of elections before the meeting. As inspector, Mr. Reid will determine the presence of a quorum and serve as judge on all matters requiring the stockholder vote at this meeting. Documents concerning the call and notice of this meeting will be filed with the records of the company and are available for inspection by any stockholder upon request. These documents include a copy of the notice of availability of proxy materials; an affidavit of mailing, certifying the proxy materials were mailed to the stockholders of record of the company; the signed oath and report of the inspector of elections; and a list of registered stockholders entitled to vote at this meeting, which also is available via a link on the web portal. We have previously supplied each stockholder of record with a notice regarding availability of proxy materials that contain instructions on how to access the company's proxy statement and Form 10-K. The bylaws of the company provide that a majority of the voting stock shall constitute a quorum of -- for the transaction of business at this meeting based on proxies and stockholders present. Mr. Reid, may we have a report of the inspector of elections on whether or not a quorum is present?

Mr. Chairman, the proxies received by the company in connection with the 2020 Annual Meeting of Stockholders of the company have been examined and have been found to be in proper forum. And there are present at the meeting by proxy at least 15,512,252 or 88.9% of the shares outstanding of the company which are entitled to vote, and such shares do constitute a quorum for the transaction of business at the meeting. Notably, there were no additional stockholder proposals for business for this meeting properly filed with the Corporate Secretary in accordance with the advanced notice requirements of the company's bylaws, so the business of this meeting is limited to the matters set forth in the agenda.

Thank you. Because a quorum is present, this meeting will proceed. Please note that we will give stockholders an opportunity to comment on the proposals themselves after all proposals have been presented. The first order of business is to elect 9 directors for the ensuing year. Those directors receiving the highest number of votes or a plurality of the votes of shares present in person or by proxy at this meeting will be elected as directors of the meeting to serve until 2021 Annual Meeting of Stockholders and until their successors are duly elected and qualified. As indicated in the company's proxy statement, the Board of Directors has nominated the following persons to serve as directors: me, Ronald C. Whitaker; John A. Cosentino, Jr.; Michael O. Fifer; Sandra S. Froman; C. Michael Jacobi; Christopher J. Killoy; Terrence G. O'Connor; Amir P. Rosenthal; and Phillip C. Widman. The company's bylaws require that a stockholder give advance notice to the company in order to nominate any person as a director. Because no such notice was received, I hereby declare the nominations for directors closed. The second order of business on the agenda is the ratification of the Board's appointment of RSM US LLP as the company's independent auditors for the 2020 fiscal year. The affirmative vote of at least a majority of the shares entitled to vote and represented in person or by proxy at this meeting is required to ratify the appointment of RSM US LLP as our independent auditors for the 2020 fiscal year. The third order of business on the agenda is an advisory vote to approve the compensation of the company's named executive officers as described in the 2020 proxy statement, otherwise known as the say-on-pay vote. While the vote is not binding on Board of the company, we will review the voting results and take them into consideration when making future decisions regarding the compensation of our named executive officers. The affirmative vote of at least a majority of the shares entitled to vote and represented in person by the -- by proxy at this meeting is required [Audio Gap] on an advisory basis, the say-on-pay vote. If any shareholder would like to make a comment regarding any of the 3 proposals, please submit your comment now through the web portal. Because we are all remote and there is a slight delay, I will pause to allow stockholders to comment. Mr. Reid, were there any comments submitted on the proposals?

No, Mr. Chairman, there were not.

This concludes discussion on all formal matters to be brought before the shareholders, and we will finalize the vote on these matters. Mr. Reid?

As the Chairman noted earlier, the polls have been open throughout the meeting. Any stockholder who has not voted or voted by proxy and wishes to change his or her vote may do so by clicking on the voting button on the web portal and allowing -- and following the instructions there. Stockholders who have sent in proxies or voted via telephone or Internet do not need -- and do not want to change their vote do not need to take any further action. We will pause for a moment to permit voting and then close the polls. [Voting]

The polls for all voting matters are now closed at 9:10 a.m. on May 13, 2020. Mr. Chairman, we've completed the tabulation of votes with the following results. On the first proposal, the election of directors, I report that the nominees for election to the Board have all been duly elected. On the second proposal, the ratification of the independent auditors for 2020, I report that a majority of shares present and voting were cast for the approval of RSM US LLP as the company's independent registered public accounting firm for 2020, and their selection is therefore ratified. On the third proposal, the advisory vote on the compensation of the named executive officers as presented in the proxy statement, I report that a majority of the shares present and voting were cast for the approval of the compensation of the company's named executive officers.

Thank you, Mr. Reid. The chair declares that all of the nominees for director named in the proxy statement have been elected and 2 proposals have passed. I now direct that Mr. Reid prepare a written report of the results of the election and include them in a Form 8-K. This concludes the formal business of the 2020 Annual Meeting of Shareholders. In order to help ensure that the meeting runs smoothly, Chris Killoy prerecorded a presentation he usually gives live. Following the presentation, we will have a short question-and-answer period, which will be live. Stockholders wishing to submit any question for consideration should type their questions into the block provided on the web portal and click submit. Again, if you plan to submit a question, please be mindful of the rules of conduct for the meeting that are posted with the meeting materials. [Operator Instructions] Guests are welcome to listen to Mr. Killoy's presentation and the question-and-answer period, but only stockholders of record on the record date are permitted to submit questions. At this time, I would like Kevin Reid to read a cautionary statement, after which we will play Chris' presentation. Kevin?

Thanks, Ron. We want to remind everyone that statements made in the course of this meeting that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's SEC filings including, but not limited to, the company's filings on Form 10-K for the year ended December 31, 2019, and of course, on the Form 10-Q for the first quarter of 2020, which we recently filed. Copies of these documents may be obtained by contacting the company or the SEC or on the company website at ruger.com/corporate or, of course, on the SEC website at sec.gov. We do reference non-GAAP EBITDA. Please note that the reconciliation of GAAP net income to non-GAAP EBITDA can be found in our Form 10-K for the year ended December 31, 2019, and our Form 10-Q for the first quarter of 2020, both of which again are available on our website. Furthermore, the company disclaims all responsibility to update forward-looking statements.

Thank you, Kevin. Operator, please play the presentation.

Stockholders, welcome to the 2020 Ruger Annual Meeting. Just over 2 years ago, we set out to establish our corporate vision, aiming to be a world leader that provides a spirit of freedom, recreation and peace of mind to our responsible customers for generations to come. Today, more than ever, we carry those words with us and are especially focused on providing that peace of mind to others during the tough times that our country is experiencing. As I told our employees, this vision, coupled with our corporate values, have been the guidance force that drives and guides me and our entire team through these tough days. Each of these words: integrity, respect, innovation, teamwork, have driven every decision we have made and have been seen in every program we have put into place during these times. You can see these values shining through in the many proactive steps we took as a company to maintain the health and safety of our employees and to mitigate the impact of this pandemic on our business. We focused on these values when instituting 2 key mandates over the past few months. First and foremost, staying safe, keeping our employees, their families and our communities safe and healthy. And second, staying open, providing value to our consumers through the products that they want and need, providing them with, as we say in our vision, a spirit of freedom, recreation and peace of mind. It is also important to stay open for our customers, the distributors and retailers whose business relies on us, building and shipping products every single day. Lastly, it is important to stay open for you, our stockholder, so we can continue providing stockholder value in these tough times. As I stated during our Q1 earnings call last week, the COVID-19 pandemic has created significant uncertainty and adversely impacted many industries across the global economy. This also left a trail of heartbreak and sorrow across an anxious nation. We are humbled on a daily basis, watching the heroic actions of our health care workers and first responders. With that said, any financial adverse impact on our business was negligible in the first quarter of 2020. That holds true in part due to the many proactive steps we took to mitigate the impact and to maintain the health and safety of our employees. I'd like to highlight those steps once again today. For our employees, we provided all hourly employees with an additional 2 weeks of paid time off so that they could take care of themselves or a loved one if sick. We reached out to and assisted employees with potential health issues, protecting those that may be at the greatest risk to contract the virus. We implemented additional cleaning, sanitizing and other health and safety processes to maintain a clean and safe workplace. And we established a culture of frequent and open communications with weekly updates from me personally across multiple communications platforms. We even established an ask Chris portal to allow any employee at any of our facilities to provide feedback on our efforts directly to me. Additionally, we encouraged employees to work remotely whenever that was possible. Here is a group of our engineers still working on new products we will be bringing to market this year. And for those who needed to be on the factory floor, we implemented social distancing measures throughout each facility, including in every manufacturing cell. As you can see here, our cells are thinned out so that our workers can keep a safe distance, while, of course, wearing the proper face coverings. We also restricted visitor access to avoid introducing new people to the factory environment, keeping our staff safe from unnecessary exposure, only admitting those who needed to be at the facility to perform their jobs. While our employees are, by far, our most important asset, we also wanted to support the places that we live and work, helping wherever we could in our local communities. Specifically, we donated resources to hospitals, nursing homes and police, fire and first responder departments, including 6,500 surgical masks, 700 Tyvek suits, over 200 N95 masks, almost 5,000 safety glasses and 200 shoe coverings. Additionally, we built and delivered over 3,000 face shields, and we also donated $6,000 in cash to local food charities and made our facilities and resources available to truck drivers and delivery personnel. Now even with this pandemic, our efforts on new product innovation have not been slowed. As I mentioned each year, new product innovation is core to what we do. It is one of our values. It is a metric we report on each quarter, and it is truly a differentiator for us in the marketplace. Even in these tough times, we continue to push our innovation and bring new products to market. In the past 16 months alone, 2019 and year-to-date 2020, we have introduced 92 new models, spanning 49 new product offerings. And as we have over the past few years, we offer over 300 distributor exclusives. These are variations on standard models, a different barrel length, Cerakote finish, camouflage pattern, et cetera. These change year-to-year, but add to the breadth of our product offering. This is a real strategic advantage for Ruger. Our ability to produce short runs of 300, 500 or 1,000 guns for a specific distributor or even a retailer has proven to be a very successful and profitable niche. All in all, we are currently offering almost 800 model variations across our 40 product lines. And these product lines cover the full range across our industry, like shooting sports from the beginner to the serious competitor or hunting from small game and varmint hunting right up to dangerous game, which continues to be an important focus for our brand. And of course, in the protection category, firearms for concealed carry, home protection and law enforcement, which has seen a surge in the past few months as well. One of our newest and most popular product has been a cutting-edge new platform for us, the Ruger-57 pistol. The Ruger-57 pistol is a full-featured handgun wrapped around a standard capacity, 20-round steel magazine, chambered in the high-performance and low-recoiling 5.7 by 28 millimeter caliber. Another significant launch that was well received was the LCP II chambered in .22 long rifle. This new, low-recoiling Lite Rack pistol features an easy-to-manipulate slide that shoots comfortably regardless of the hand size or strength. Since its introduction in 2008, the LCP has set the industry standard for a lightweight, compact and reliable carry pistol. This model, based on the second-generation LCP II, offers enhanced features like taller sights, a larger grip surface, crisp new trigger and last-round hold open. Most importantly, it incorporates our new Lite Rack system, which is ideal for new shooters or those who struggle with racking traditional slides and anyone looking to enjoy a day at the range. More recently, in March of this year, we introduced the PC Charger. Based on our popular PC Chassis model, this new pistol boasts an abundant of features, including a 6.5 inch barrel, an integrated Picatinny rail that allows for the mounting of Picatinny-style braces and an ergonomic pistol grip with extended trigger reach. Of course, like our other popular PC Carbine model shown here, this new PC Charger is a takedown model as well. Also worth mentioning in our popular new products, just about a year ago, we launched the Ruger Wrangler, and it continues to be a huge hit with consumers and retailers. The attractive price, combined with the affordability of rimfire ammunition, makes this revolver ideal for learning to shoot, introducing friends or family to the sport or just experiencing the fun of single-action shooting. Of course, new products are the lifeblood of our company. But once we introduce these models, our intent is to become a category leader with them. Here are some of the great product lines that are dominant categories for Ruger. Originally introduced in 1964, the 10/22 remains the benchmark 22 rimfire autoloader. With value priced entry-level models ideal for a new shooters first gun to custom shop models capable of dominating at the highest levels of competition, there was a 10/22 for everyone, each with class dominating reliability and accuracy. New models, many as distributor exclusives continue to thrill our customers, and the pipeline of exciting new configurations is always full. A wide variety of available accessories make every 10/22 the potential start of a customizing adventure. A relative newcomer to the Ruger lineup, the Ruger American rifle has been overwhelmingly embraced by shooting fans as a full-featured and accurate lineup of rifles that won't break the bank. From fun to shoot rimfire models, light weight and accurate hunting rifles to long-range target models, the Ruger American rifle was designed and built by shooters and hunters for shooters and hunters and its success in the marketplace continues to grow. The Ruger Precision rifle was developed on the principle that a supremely accurate long-range capable precision rifle need not cost as much as several mortgage or rent payments. With Rimfire, Centerfire and Centerfire Magnum models now available, targets from a few hundred yards to over a mile are now within the reach of most folk’s budgets. The money save can be put toward ammunition and time at the range where smart Ruger Precision owners can hone their rifle skills and make the most of their hard earned dollars and might just want to match like Ruger -- shooting team captain, Doug Koenig does with his factory made Ruger Precision rifle. The pistol that started the company has continuously been in production since 1949. The Mark IV models being crafted today are the culmination of decades of improvements and now feature an ingenious one-button takedown system. The current lineup dominates the market with classically style models, heavy barrel target pistols and lightweight plinkers backed by a well-earned legacy of performance, reliability and value. New models like the Lite Rack LCP II chambered in .22 long rifle. Other compact pistols like the Security-9 or EC9s and even compact revolvers like the Ruger LCR give law abiding and responsible citizens many concealed carry options when taking responsibility for protecting themselves and their families. Bill Ruger's hunting rifle legacy is on full display with our lineup of modern hunting rifles. The Hawkeye is still in production with new hunting and long-range models being continuously introduced. The Hawkeye has joined in Ruger's hunting gun lineup by the elegant single-shot No. 1, the light and graceful 77 series rotary magazine models and an amazing array of Ruger American rifles. Whether big game hunting in distant lands or pursuing a white-tailed buck in the local fields and forest, Ruger has a hunting rifle for almost every pursuit. Now let me turn to a brief discussion on the current market and our financial performance. As you know, our earnings call and earnings release were last week. I covered much of this information on that call, but I want to touch on some of the highlights. One slide that I like to show every year is this one. This is data from the National Shooting Sports Foundation, or NSSF, and shows new firearms available to the U.S. consumer market. Basically, that includes production, less export, plus imports, shown from 1991 through 2018, which is the most recent publicly available data from the ATF and the commerce department. As you all know by now, I got into this industry in 1989. So I've witnessed these trends firsthand, and there are 2 key takeaways from this data. The first is a positive one. Over the past 28 years, the general trend for the shooting sports industry has been a positive one and growing. Yet the ride hasn't always been smooth. We've experienced numerous political changes at the federal state and local levels throughout this period. And although the long-term trend has been good, there have been plenty of speed bumps along the way. Over the 28 of those years, there were 16 times when we saw a year-over-year comparison go up and 11 times we saw it go down. Another set of data that provides a trend for us to look at is the adjusted NICS data. NICS is an acronym for National Instant Check System. And the adjustments we refer to are done by the NSSF to account for administrative checks that are more likely to represent permit applications and renewals, not necessarily the purchase of a firearm. The data shown here over a shorter period of time than the previous production graph illustrates a slightly positive trend. But prior to the past 2 months where we saw historically high NICS checks numbers, the 5-year trend had actually been heading downward. As I mentioned last week, anecdotal evidence suggests that this increased demand, especially during the last few weeks of March and the month of April, may likely be related to COVID-19 and the impact of state level restrictions and heightened concern for personal protection. As I've said before, the road ahead looks to be a positive one, but there are always speed bumps along the way. As a result of the recent surge in demand, the combined inventories in our warehouses and at our distributors decreased by 113,000 units during the first quarter of 2020. The red bars here represent Ruger inventory. The gray bars represent distributor inventory. As this chart illustrates, the channel inventory of products is the lowest it's been for over 6 years. Although we do not have comprehensive inventory data at the retail level, the retail information we gather suggests that retailer inventory has been depleted in the last month or so. The bottom line, there are plenty of empty shelves that need to be filled with Ruger products. On this chart, our Q1 performance is in the left most column. For the first quarter of 2020, the company reported net sales of $123.6 million and diluted earnings of $0.87 per share compared with net sales of $114 million and diluted earnings of $0.74 per share in the first quarter of 2019. Strong consumer demand, exciting new products and reduced reliance on sales promotions, all contributed to our improved quarterly earnings. Sales of new products represented $23 million or 20% of our firearm sales in the first quarter of 2020. New product sales include only those new products that were introduced in the past 2 years, many of which we discussed a few minutes ago. We generated $31 million of cash from operations during the first quarter of 2020. Speaking of cash, our cash and short-term investments balance was $188 million at the end of March and currently exceeds $200 million. Obviously, this is more than we need to support our normal operations. Our long-term capital allocation philosophy has not changed. Our strategy is predicated on remaining financially strong, physically disciplined and focused on delivering long-term value to our shareholders. We are looking for opportunities to generate strong returns with our capital, and we're prepared to move quickly if the right opportunity arises at the right price. And our disciplined approach to running the company has rewarded long-term Ruger shareholders. Since 2010, we've returned $427 million to our stockholders, with over $300 million in quarterly and special dividends and over $100 million through stock repurchases. As a reminder, our quarterly dividend is approximately 40% of net income. However, our greatest asset in good times and bad is our people. Our Ruger team continues to demonstrate our vision and values in everything we do from designing exciting new products to operate our factories in a safe and efficient manner during this current COVID-19 pandemic. They make me proud to be a part of this team every single day. And now I'd like to open this up to your questions in accordance with the guidelines and ground rules that Ron mentioned a few minutes ago.

Okay. We have now reached the question-and-answer period. Again, stockholders wishing to submit a question should type it into the space provided in the web portal and click submit. As we are all in different locations, Tom Dineen will be presenting the question to Chris on behalf of the stockholders. Chris?

Thanks, Ron. Tom, may I have the first question?

Sure. The first question references reports of surging firearms sales in states. I would like to know how you're proactively working to keep your customers as safe as possible.

Okay. Those of you familiar with Ruger know that safety is a key consideration for us. If you want to learn more about all we do on a daily basis to promote the safe and responsible ownership and use of firearms, I encourage you to read the shareholder report we filed in February of 2019. It's available on our Investor Relations section of the website. Our efforts include, among other things, communicating all -- to all Ruger customers, new or returning, about the importance of safe firearm storage and ownership. We share this important message in our instruction manuals through the Safety Information section on our website, through our e-mail communications. And every Tuesday, we do a Tuesday newsroom on outbound blast to our customers, to name a few. We also proudly support the National Shooting Sports Foundation's many successful firearm safety campaigns, including, for example, its suicide prevention campaign in partnership with the American Foundation for Suicide Prevention and the Veterans administration. These important programs involve educating firearms retailers and ranges on suicide warning sides -- signs and available prevention resources and providing thousands of free have a brave conversation toolkits to members and nonmembers. Other proactive safety programs include the NSSF's hugely successful Project ChildSafe program. We encourage you to check out Gun Owners Care, which showcases these and many other NSSF safety initiatives. Anecdotally, we understand that the increase in firearm sales appears to be driven, in large part, by first-time buyers. So for the last month or 2, we've been running a buying your first gun campaign in our newsroom. This campaign provides helpful tips and links to resources on such things as giving your firearms purchase careful consideration, safely handling and storing your firearms, keeping firearms for self-protection and improving your skills. We have additional safety initiatives in the works, so be on the lookout for these. Check the website and look for -- sign up for the Ruger e-mail blast, and we'll keep you in close contact with our initiatives here.

The next question. In light of the COVID-19 pandemic, does the company have policies and measures in place, such as paid sick leave for all its workers, daily testing, the provision of personal protective equipment, adequate physical distancing to prevent contagion and reporting mechanisms to ensure that all workers are able to report any workplace safety lapses or symptoms of illness without negative consequences?

Thanks, Tom. Well, I think we covered this one pretty thoroughly, both on our call and with investors last week and during the prerecorded presentation you just saw. Also, we issued a press release on April 21 that detailed many of our efforts to support our employees and the communities in which we live and work. But it's a good question, and the answer bears repeating. As I mentioned, we have been extremely proactive and have implemented all the measures described in the question and more. For example, during the early stages of the pandemic, we created a COVID-19 task force that meets daily to examine and adjust our policies and procedures. We provided an additional 2 weeks of paid time off to all employees adversely affected by COVID-19. We are encouraging employees to work remotely wherever and whenever that is possible. We've implemented social distancing throughout each manufacturing facility, including in every manufacturing cell. In accordance with the guidance from the CDC, 100% of our employees are wearing company-supplied face coverings while working in our facilities. We're taking temperatures of all employees entering our manufacturing facilities and have designed a special apparatus to physically separate incoming employees from the security folks and ensure that everyone maintains a safe distance apart. We are regularly communicating with employees to assist them with potential health issues and to remind them of how best to stay safe, especially as the CDC guidance continues to shift. We're also restricting visitor access to avoid introducing new people to our work environment. And we implemented additional cleaning, sanitizing and other health and safety processes to maintain a clean and safe workplace. Frankly, I'm very proud of what we're doing, and I'm confident that Ruger was ahead of the curve on this one.

All right. Chris, the next question. How has the cleaning and disinfecting of the plants affected the timing and efficiency of production?

Good question. To date, we've been fortunate, and we have not had any miss production days in any of our facilities. Of course, health of our workers always comes first. We've had some interruption on certain lines. We've had some scares with people that we think may have come in contact with COVID-19. We've shut down a line, done a deep cleaning and waited until the test results come back from those folks. To date, we're fortunate. I think some of you may have seen that we had one positive case of an employee in our factory in Mayodan, North Carolina. And to date, that's the only positive case we've had. And in that case, the individual contracted the COVID-19 or the coronavirus outside of our facility. So again, to date, it's been minimal impact on our production. However, again, our priority is the health and safety of our folks. And so we won't sacrifice their health and safety for production.

And that's all the questions we have, Chris.

Okay. Thank you, Tom. I want to thank all of you for your interest in Ruger and for your participation in our Annual Meeting of Stockholders. Ron?

Thank you, Chris, and thank you, Tom. There being no other business to come before the meeting, the 2020 Annual Meeting of Stockholders of the company is adjourned. On behalf of the Board of Directors, I would like to thank you for attending the meeting and for your continued support of the company. Thank you.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.