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    Rommel Dionisio • Aegis Capital Corp.

    Rommel Dionisio's questions to Escalade Inc (ESCA) leadership

    Rommel Dionisio's questions to Escalade Inc (ESCA) leadership • Q2 2025

    Question

    Rommel Dionisio of Aegis Capital Corporation inquired about the impact of tariffs and retail inventory levels on the new product launch cadence, and asked for more detail on the unfavorable product mix that affected gross margins.

    Answer

    President & CEO Armin Boehm stated that Escalade is not delaying its product launch cadence; instead, it is accelerating new product introductions for the holiday season. Boehm explained the unfavorable mix was due to two factors: poor weather impacting seasonal outdoor product sales, and a temporary, joint pause in shipments with retailers to avoid peak tariff costs, which shifted sales out of the quarter.

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    Rommel Dionisio's questions to Escalade Inc (ESCA) leadership • Q1 2025

    Question

    Rommel Dionisio of D.A. Davidson & Co. asked about Escalade's strategy to mitigate tariff impacts, including the speed of shifting production from China. He also sought to quantify the tariff impact on Q1 gross margins and clarify the trend in inventory levels.

    Answer

    President and CEO Armin Boehm detailed a multi-faceted strategy to manage tariff uncertainty, including supply chain optimization, surgical pricing actions, and leveraging their diversified sourcing network. Board Chairman Walt Glazer quantified the Q1 tariff headwind at over 100 basis points, which was more than offset by cost-saving initiatives. Glazer also clarified that the lower year-over-year inventory reflects a successful, ongoing effort to rightsize inventory levels and reduce associated costs.

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    Rommel Dionisio's questions to Escalade Inc (ESCA) leadership • Q4 2024

    Question

    Rommel Dionisio asked about Escalade's inventory strategy in light of potential tariffs and whether the company would build up safety stock. He also inquired if a product mix shift towards archery and table tennis provided a tailwind to gross margins in the quarter.

    Answer

    CFO Stephen Wawrin explained that while Escalade did advance some shipments to get ahead of tariffs, the primary goal remains inventory efficiency and further reductions are possible. Wawrin noted that the product mix impact on gross margin was not significant, and that future margins should improve as the company moves past costs associated with footprint and inventory reductions.

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    Rommel Dionisio's questions to Escalade Inc (ESCA) leadership • Q3 2024

    Question

    Rommel Dionisio inquired about Escalade's recent restructuring, seeking details on the Minnesota facility rationalization and the plan to wind down operations in Orlando, Florida. He also asked for clarification on a recent increase in amortization expense.

    Answer

    CEO Walter Glazer explained that the Minnesota facility's footprint and staffing were reduced to align with a temporary downturn in the water sports market. For the Orlando facility, he detailed a strategic shift from a print-on-demand model to a more cost-effective pre-printed import model, with inventory being consolidated into other locations. CFO Stephen Wawrin clarified that the higher amortization was a one-time charge tied to the Orlando restructuring and that historical levels are a better indicator for future quarters.

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    Rommel Dionisio's questions to Sturm Ruger & Company Inc (RGR) leadership

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

    Question

    Rommel Dionisio from Aegis Capital Corporation asked for more details on the inventory rationalization, specifically concerning Marlin-related items not part of the brand's future roadmap. He sought clarification on the company's long-term strategy and level of enthusiasm for the Marlin brand going forward.

    Answer

    President & CEO Todd Seyfert clarified that the write-off was mainly for assets and materials related to the Marlin Model 60, which is not in the near-term product plan. He emphasized that these materials were part of the original 2020 acquisition. Seyfert strongly reaffirmed the company's enthusiasm for the Marlin brand, highlighting the phenomenal consumer feedback, strong backlog for its popular centerfire rifles, and a robust product pipeline for years to come.

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

    Question

    Rommel Dionisio inquired about the strategy behind the planned increase in capital expenditures, asking if it signals a more aggressive pace for new product launches. He also questioned the potential impact on the bottom line from associated marketing expenses and whether the company sees a significant opportunity in any specific firearm category.

    Answer

    President and CEO Todd Seyfert confirmed the increased CapEx is intended to accelerate the pace of new product introductions and reduce time-to-market. He clarified that the investment will be primarily capital-related in the short term, with sales and marketing expenses expected to grow in parallel later. While declining to specify a product category, Seyfert noted a robust new product pipeline across all existing platforms, prioritized by market feedback and opportunities.

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

    Question

    Rommel Dionisio asked for more detail on gross margin trends, specifically the balance between the adverse product mix shift and the introduction of successful, higher-margin new products.

    Answer

    Outgoing CEO Christopher Killoy clarified that the most significant factor contributing to lower gross margins from a product mix standpoint was the competitive pricing strategy for the 75th-anniversary models. He noted that while these products were very successful, their aggressive pricing impacted the overall margin.

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

    Question

    Rommel Dionisio of Aegis Capital Corp. asked for perspective on the competitive promotional environment, questioning if it has become a permanent industry feature due to stable demand and potential oversupply. He also inquired about any significant shifts in broader market trends, such as participation from first-time shooters or women, in recent quarters.

    Answer

    President and CEO Christopher Killoy suggested the market may be experiencing 'crisis fatigue,' with less panic-buying than in previous election cycles. He agreed that significant industry capacity is fueling competitor discounting. Killoy reiterated Ruger's strategy to gain share through innovation, like the American Gen II rifles, rather than discounting. He also highlighted the focus on converting pandemic-era first-time buyers into lifelong customers with accessible products like the Mark IV pistols, 10/22 rifles, and the easy-to-operate Security-380, which also appeals to niche demographics.

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