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    Mark Smith • Lake Street Capital Markets

    Mark Smith's questions to Legacy Housing Corp (LEGH) leadership

    Mark Smith's questions to Legacy Housing Corp (LEGH) leadership • Q2 2025

    Question

    Mark Smith from Lake Street Capital Markets asked for the outlook on product margins given tariffs and inflation, requested quantification of recent pricing actions, and inquired about differences in consumer behavior between renters and homebuyers.

    Answer

    President & CEO Duncan Bates noted that while pricing has been adjusted for tariffs, rising commodity and labor costs present ongoing challenges, requiring a balance between price and volume. He confirmed two price increases in 2025: one in February and a more significant one in late June. Bates observed that renters are very price-sensitive, which pressures community operators and shifts demand toward smaller, more affordable homes. He remains optimistic long-term due to the national affordable housing crisis.

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    Mark Smith's questions to Legacy Housing Corp (LEGH) leadership • Q1 2025

    Question

    Mark Smith of Lake Street Capital Markets inquired about the drivers behind the significant increase in average home selling price, the factors contributing to lower Mobile Home Park (MHP) sales, and any atypical capital expenditure plans for the year.

    Answer

    Executive Robert Bates clarified that the primary driver for the higher average selling price was a sales mix shift toward higher-priced retail and inventory finance sales, not underlying price hikes. He noted MHP sales were impacted by both timing delays on large orders and softer demand, which the company is addressing with a modified financing program. Regarding capital allocation, Bates confirmed there were no uses of cash outside the norm, with a continued focus on completing the Bastrop development and monetizing noncore real estate.

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    Mark Smith's questions to Legacy Housing Corp (LEGH) leadership • Q3 2024

    Question

    Mark Smith from Lake Street Capital Markets asked for an update on the settlement agreement, questioning if there would be any ongoing impact in Q4, and inquired about the significant increase in the MHP financing portfolio.

    Answer

    Executive Robert Bates confirmed that the moving parts of the settlement agreement were completed in Q3, with no further impact expected. He noted the company is now operating two parks acquired through the settlement and plans to monetize them. Regarding the MHP portfolio, Bates explained that as part of the settlement, some balances were shifted from the development loan portfolio to the MHP portfolio.

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    Mark Smith's questions to Legacy Housing Corp (LEGH) leadership • Q2 2024

    Question

    Mark Smith of Lake Street Capital Markets asked about the MHP loan portfolio's interest rates in a changing rate environment, the accounting and balance sheet impact of the recent litigation settlement, and the sustainability of the strong gross profit margin on product sales given potential cost pressures.

    Answer

    Executive Robert Bates explained that MHP loan portfolio growth has slowed with the park business but noted that as existing two-year fixed-rate loans flip to variable, rates will increase. He clarified the litigation settlement will consolidate numerous MHP and development notes into a single new note, reducing the overall loan balance on their books while Legacy takes ownership of two mobile home parks. Regarding margins, Bates expressed pride in maintaining levels despite lower volume and believes they are sustainable. He identified labor as the primary cost pressure and stated that if they can increase production volume, they can maintain similar gross margin levels by holding prices firm.

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    Mark Smith's questions to Sturm Ruger & Company Inc (RGR) leadership

    Mark Smith's questions to Sturm Ruger & Company Inc (RGR) leadership • Q2 2025

    Question

    Mark Smith of Lake Street Capital Markets inquired about the specifics of the product rationalization and SKU reduction, including its impact on sales, unit volume, and average selling price (ASP). He also asked about the completion status and long-term savings from the organizational realignment, and for insights into current consumer demand trends.

    Answer

    President & CEO Todd Seyfert explained that the rationalization primarily affected the American Gen 1 rifle, MSRs, and the EC9 pistol, moving roughly 70,000 units and reducing the ASP by about $16. He clarified that the organizational realignment is complete but was a strategic reallocation of talent, not a cost-saving measure, so significant ongoing savings are not expected. Seyfert also noted that while the broader market is down, Ruger is outpacing it by focusing on market share gains through innovation and its diverse product portfolio.

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    Mark Smith's questions to Sturm Ruger & Company Inc (RGR) leadership • Q1 2025

    Question

    Mark Smith asked about the new RXM pistol's impact on average selling price (ASP) during the quarter and whether it exemplifies the company's future platform strategy. He also inquired about potential margin pressures from tariffs and inflation, and what gives management confidence to expand capacity amid a weaker consumer environment.

    Answer

    President and CEO Todd Seyfert explained that the RXM launch affected Q1 ASP due to the production ramp-up. He affirmed the RXM is a key example of their platform-building strategy. Regarding tariffs, Seyfert stated that as a U.S. manufacturer with a domestic supply chain and a stockpile of raw materials, the company sees no immediate impact but is monitoring the situation. He attributed the confidence for CapEx expansion to a strong new product pipeline and the company's debt-free balance sheet, which allows it to aggressively pursue market share.

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    Mark Smith's questions to Sturm Ruger & Company Inc (RGR) leadership • Q4 2024

    Question

    Mark Smith inquired about the sales impact of the new RXM pistol, its potential as a platform for future products with Magpul, and the company's capital allocation strategy for cash on the balance sheet.

    Answer

    Outgoing CEO Christopher Killoy explained that the RXM pistol had a significant and well-planned launch in December, becoming their largest ever. He confirmed the RXM is a platform for future variations and the Magpul collaboration is strong. Regarding cash, Killoy stated the priority is funding the business and new products, followed by strategic acquisitions, and then returning capital to shareholders via special dividends or share buybacks.

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    Mark Smith's questions to Sturm Ruger & Company Inc (RGR) leadership • Q3 2024

    Question

    Mark Smith of Lake Street Capital Markets inquired about the significant difference in average selling price (ASP) between new orders and the existing backlog, the shipping timeline for backlogged rifles into Q4 and 2025, the drivers behind the lower gross profit margin in the quarter, and the current state of consumer demand and the promotional environment.

    Answer

    President and CEO Christopher Killoy explained that the high ASP in the backlog is primarily driven by higher-priced Marlin and American Gen II rifles. He noted that while production is being maximized, a significant portion of this backlog will likely ship in Q1 and Q2 of 2025. Killoy attributed the gross margin decline to a mix of factors: no annual price increase, strategic pricing on 75th-anniversary models, and the deleveraging of fixed costs at current volumes, plus fewer workdays in Q3. Regarding the market, he acknowledged promotional pressure but stated Ruger will remain disciplined, relying on product innovation rather than widespread rebates to compete.

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    Mark Smith's questions to Kura Sushi USA Inc (KRUS) leadership

    Mark Smith's questions to Kura Sushi USA Inc (KRUS) leadership • Q3 2025

    Question

    Mark Smith asked for the drivers behind the increase in 'other costs' at the restaurant level, sought more detail on G&A management practices, and questioned if success in smaller markets alters the long-term outlook for total unit potential in the U.S.

    Answer

    SVP Benjamin Porten clarified that the Q3 'other costs' of 14.7% was a bounce-back from an abnormally low Q2, and the year-to-date figure of 14.3% is in line with fiscal 2024, representing minor growth across items like R&M and utilities. CFO Jeff Uttz emphasized that G&A control is purposeful, focusing on slowing hiring and reallocating work rather than cutting staff. Porten affirmed that success in smaller markets expands their white space potential but did not provide a new total unit number.

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    Mark Smith's questions to Kura Sushi USA Inc (KRUS) leadership • Q2 2025

    Question

    Mark Smith asked for confirmation that the G&A guidance includes the recent litigation expense and inquired about the potential impact of tariffs on the build-out costs for new restaurants.

    Answer

    CFO Jeff Uttz confirmed the G&A guidance includes the litigation expense. Hajime Uba, via interpreter Benjamin Porten, estimated a worst-case scenario of a $400,000 incremental build-out cost per unit due to tariffs on imported equipment. However, he emphasized that this does not change their appetite for a 20%+ unit growth rate, given strong unit economics and a robust capital position.

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    Mark Smith's questions to Kura Sushi USA Inc (KRUS) leadership • Q1 2025

    Question

    Mark Smith questioned if the G&A guidance was conservative given the strong leverage in the quarter and asked for the reasons behind the lower-than-expected preopening expenses.

    Answer

    Benjamin Porten stated he was comfortable with the G&A guidance, which implies a 60 basis point year-over-year improvement, noting that the 80-90 basis points of leverage seen in prior years is difficult to sustain. He then explained, on behalf of Hajime Uba, that lower preopening costs were due to having fewer units under construction compared to the prior year and efficiencies gained from a restructured, smaller opening team.

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    Mark Smith's questions to Cadre Holdings Inc (CDRE) leadership

    Mark Smith's questions to Cadre Holdings Inc (CDRE) leadership • Q1 2025

    Question

    Mark Smith from Lake Street Capital Markets asked about the expected timing and potential lumpiness of business throughout the rest of the year and sought details on tariff mitigation strategies beyond pricing.

    Answer

    Executive Warren Kanders stated that while backlog visibility is limited, Q2 revenue is expected to be up sequentially, with Q4 projected to be the strongest quarter of the year, driven by Armor and EOD project timing. CFO Blaine Browers outlined tariff mitigation tactics that include shifting production between existing facilities, such as between the U.S. and Canada for bomb suits, and accelerating internal productivity projects to offset cost pressures without major factory moves.

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    Mark Smith's questions to Cadre Holdings Inc (CDRE) leadership • Q4 2024

    Question

    Mark Smith asked if any revenue delays from the previous cybersecurity incident were impacting Q1, what was driving the lower Q1 EBITDA margin guidance, and for an update on domestic law enforcement hiring trends.

    Answer

    CFO Blaine Browers confirmed that the impact from the cybersecurity incident was almost entirely resolved in Q4 2024, with minimal spillover into Q1. He explained that the lower Q1 EBITDA margin guidance of 12-14% is primarily a function of lower sales volume and the resulting lack of leverage on SG&A, not a decline in gross margins. President Brad Williams stated that law enforcement headcount continues to be stable. He noted that while a tougher economy could theoretically boost recruitment, the high hurdles and success rates of recruit classes act as a filter on potential hiring increases.

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    Mark Smith's questions to Cadre Holdings Inc (CDRE) leadership • Q3 2024

    Question

    Mark Smith of Lake Street Capital Markets inquired about the nuclear business, asking about the timeline for recognizing benefits from new projects like small modular reactors (SMRs). He also asked about the long-term outlook following the U.S. election and any potential impact from tariffs.

    Answer

    President Brad Williams explained that for new nuclear plants like SMRs, Cadre's products are utilized once the plants are operational and generating waste, not during construction. Executive Warren Kanders stated they foresee no changes from the election due to bipartisan support for law enforcement spending and noted that the company's regional supply chain mitigates risks from potential tariffs on Asian goods.

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