XML 39 R25.htm IDEA: XBRL DOCUMENT v3.25.0.1
Operating Segment Information
 12 Months Ended
Dec. 31, 2024
Operating Segment Information [Abstract]  
Operating Segment Information

17. Operating Segment Information

 

The Company has two reportable operating segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a number of federally-licensed, independent wholesale distributors primarily located in the United States. The castings segment manufactures and sells steel investment castings and metal injection molding parts.

 

Corporate segment income relates to interest income, the sale of non-operating assets, and other non-operating activities. Corporate segment assets consist of cash and other non-operating assets.

 

The Company evaluates performance and allocates resources, in part, based on income (loss) before taxes. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies (see Note 1). Intersegment sales are recorded at the Company’s cost plus a fixed profit percentage.

 

This segment structure reflects the financial information and reports used by the Company’s management, specifically its CODM, to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting. The Company’s reportable segments are not aggregated.

 

The Company’s method for measuring performance of a reportable segment is primarily gross profit. The CODM does not review disaggregated assets by segment. The Company adopted ASU 2023-07 in January 2025. The most significant provision was the required disclosure of significant segment expenses that are regularly provided to the CODM. The Company’s CODM periodically reviews cost of goods sold by segment and treats it as a significant segment expense.

Year ended December 31,  2024   2023   2022 
Net Sales               
Firearms  $532,608   $540,746   $593,289 
Castings               
Unaffiliated   3,035    3,021    2,553 
Intersegment   31,528    33,086    21,306 
    34,563    36,107    23,859 
Eliminations   (31,528)   (33,086)   (21,306)
   $535,643   $543,767   $595,842 
Costs of Goods Sold               
Firearms  $417,222   $407,068   $410,507 
Castings               
Unaffiliated   4,006    3,080    5,250 
Intersegment   31,528    33,086    21,306 
    35,534    36,166    26,556 
Eliminations   (31,528)   (33,086)   (21,306)
   $421,228   $410,148   $415,757 
Gross Profit (Loss)               
Firearms  $115,386   $133,678   $182,782 
Castings   (971)   (59)   (2,697)
   $114,415   $133,619   $180,085 
Operating Income (Loss)               
Firearms  $33,273   $52,887   $106,803 
Castings   (1,619)   (803)   (3,347)
   $31,654   $52,084   $103,456 
Income (Loss) Before Income Taxes               
Firearms  $34,051   $53,723   $108,609 
Castings   (1,616)   (799)   (3,338)
 Corporate   5,340    5,900    3,008 
   $37,775   $58,824   $108,279 

 

Year ended December 31,  2024   2023   2022 
Identifiable Assets               
Firearms  $230,024   $228,699   $223,301 
Castings   9,303    11,144    11,910 
Corporate   144,707    158,974    249,552 
   $384,034   $398,817   $484,763 
Goodwill               
Firearms  $3,055   $3,055   $3,055 
Castings   209    209    209 
   $3,264   $3,264   $3,264 
Depreciation               
Firearms  $19,952   $19,301   $21,992 
Castings   1,154    1,814    2,452 
   $21,106   $21,115   $24,444 
Capital Expenditures               
Firearms  $20,488   $15,395   $26,598 
Castings   333    401    1,175 
   $20,821   $15,796   $27,773 

 

In 2024, the Company’s largest customers and the percent of firearms sales they represented were as follows: Lipsey’s - 28%; Sports South - 18%; and Davidson’s - 16%.

 

In 2023, the Company’s largest customers and the percent of firearms sales they represented were as follows: Lipsey’s - 24%; Davidson’s - 19%; and Sports South -15%.

In 2022, the Company’s largest customers and the percent of firearms sales they represented were as follows: Lipsey’s - 23%; Davidson’s - 23%; and Sports South - 21%.

 

The Company’s assets are located entirely in the United States and domestic sales represented at least 94% of total sales in 2024, 2023, and 2022.