Matt Koranda: Fair enough. I appreciate all the commentary and I’ll leave it there guys. Thanks.
Operator: And the next question is from Edward Riley from EF Hutton. Please go ahead.
Edward Riley: Hi, guys. Thanks for taking my question. Last quarter, you cited expectation of strong demand from the export market, wondering if this is still the case today?
Jared Smith: It is. It’s the case today that we’re seeing stronger demand from the export market. And what it’s doing? It’s actually diverting the larger €“ the larger manufacturers in this space for small , especially Lake City, to focus on those export opportunities, which is freeing up capacity in space, both domestically and internationally. Because their lines are focused on once again high volume, high output around .
Edward Riley: Okay, great. And then just on the comments around the long rifle capacity already being sold out over the past 30 days, wondering if you could maybe give us any details around the customer mix there?
Jared Smith: It’s very, very heavy towards OEM, large players that are now seeing the shift and are coming back to for the quality that they’ve known and that they’ve bought in the past. When we say long action, that’s , things where we have tremendous margins. And those are players that come to this market. They want a strong partner, an industrial partner that can help them meet their demands year-in, year-out. So, it’s not a one-time customer with bad credit. That is non-strategic to our business.
Edward Riley: Okay, got it. Thank you.
Operator: And the next question is from Mark Smith from Lake Street. Please go ahead.
Mark Smith: Hi, guys. I’ve got a handful of questions here. Jared, just want to, kind of stay on the AMMO piece first. Just as €“ how are you looking at channel inventory domestically today? Obviously, we see issues in a lot of , are you seeing the increase in other center fire rifle even some of the specialty type rounds today, walk us through kind of where that channel inventory is and potentially how long it takes to clean up some of these calibers that have gotten too heavy?
Jared Smith: I think the calibers that this market is overly focused on is . And they’ve been overly focused on it with every cyclical market that we’ve seen over the last 10 years. There are still really bright spaces in the market, as I said earlier, for , all your rimmed cartridges, you still see really strong demand in this new space of 6 millimeter art, , .338 Norma Magnum. Those channels are yet to be filled. And that’s where we’ll end up tuning our factories and our capacities towards. When you say in terms of sitting inventories, yes, there’s inventory coming back on the shelf and that’s due to an inflationary and recessionary effect, just total market share. But those total dollars in market share is once again primarily in that high commodity space. And we’re not too concerned about those volumes sitting in the retail space because we will divert our production elsewhere.
Mark Smith: Okay. And as we think about shifting over to some of these other rounds, walk us through, kind of how you weigh just shifted purely over to brass and selling brass into other OEMs to kind of hit some of this demand versus shifting lines over to or whatever the calibers maybe, kind of how you weigh that decision making?
