• AMMO, Inc. Reports Third Quarter 2024 Financial Results

    来源: Nasdaq GlobeNewswire / 08 2月 2024 16:05:00   America/New_York

    SCOTTSDALE, Ariz., Feb. 08, 2024 (GLOBE NEWSWIRE) -- AMMO, Inc. (Nasdaq: POWW, POWWP) (“AMMO” or the “Company”), the owner of GunBroker.com, the largest online marketplace serving the firearms and shooting sports industries, and a leading vertically integrated producer of high-performance ammunition and components, today reported results for its third quarter of fiscal 2024, ended December 31, 2024.

    Third Quarter Fiscal 2024 vs. Third Quarter Fiscal 2023

    Net Revenues of $36.0 million
    Gross profit margin of approximately 30.3% compared to 32.4%
    Adjusted EBITDA of $5.4 million compared to $6.2 million
    Net loss of ($1.6) million, compared to a net loss of ($4.1) million
    Diluted EPS of ($0.02), compared to ($0.04)
    Adjusted EPS of $0.04, compared to $0.04

    GunBroker.com “Marketplace” Metrics – Third Quarter 2024

    Marketplace revenue of approximately $14.0 million
    New user growth averaged approximately 37,000 per month
    Average take rate increased to 5.9% compared to 5.7% in fiscal 2023

    Jared Smith, AMMO’s CEO, commented “Despite the challenges we faced in calendar 2023 for our industry, Ammo Inc. continues to transition its business to a stronger and leaner operating model. We have emerged from this time with an impeccable balance sheet and remain encouraged about the significant opportunities we have before us here in the fourth quarter and going forward.

    “We continue to see increasing demand as the ammunition and firearms market recovers from 2022 and 2023’s post pandemic slump. As we look at opportunities going into fiscal 2025, we will focus on the transformation of our marketplace platform. We will also continue to transition our manufacturing model to one of pursuing higher margin, premium rifle and pistol ammunition opportunities as well as embracing the growing OEM brass business.,” Mr. Smith concluded.

    Third Quarter 2024 Results

    We experienced an improvement in the marginality of our ammunition segment while the margins of the GunBroker.com marketplace segment remain strong. We continue to see positive demand trends building for our ammunition product and activity continues to increase on GunBoker.com as we enter into the final quarter of our fiscal year.

    We ended the third quarter with total revenues of approximately $36.0 million in comparison to $38.7 million in the prior year quarter. The decrease in revenue was primarily related to a decrease in sales activity from our ammunition segment as a result of a change in the US commercial ammunition market from the comparable prior year quarter. Our casing sales, however, which afford us higher gross margins, increased to $4.7 million up from $3.0 million in the prior year period. Our marketplace revenue was $14.0 million for the reported quarter, compared to $15.4 million in the prior year quarter, which decreased as a result of the current macroeconomic environment impacting our industry as well as others.

    Cost of goods sold was approximately $25.1 million for the quarter compared to $26.2 million in the comparable prior year quarter. The decrease in cost of goods sold was related to the decrease in sales volume.

    Our gross margin for the quarter was $10.9 million or 30.3% compared to $12.5 million or 32.4% in the prior year period. The decrease in gross profit margin was related to the shift in our sales mix.

    Our cost cutting measures are paying off, there was a 5.4% decrease in operating expenses as a percentage of sales from the prior year quarter adjusted to exclude nonrecurring expenses.

    There were approximately $1.5 million of nonrecurring expenses related to legal and professional fees which we have included as addbacks to Adjusted EBITDA.

    For the quarter, we recorded Adjusted EBITDA of approximately $5.4 million, compared to prior year quarter Adjusted EBITDA of $6.2 million.

    This resulted in a net loss per share of ($0.02) or adjusted net income per share of $0.04, compared to the prior year period of net loss per share of ($0.04) or adjusted net income per share of $0.04.

    Our improvements to our marketplace, GunBroker.com, continue as our cart platform is on schedule to launch on April 1st.

    We repurchased approximately 145,000 shares of our common stock under our repurchase plan in the reported quarter bringing us to just over 1.3 million shares repurchased in total under the plan since repurchases began in December 2022.

    Conference Call

    Management will host a conference call at 5:00 PM ET on February 8, 2024, to review financial results and provide an update on corporate developments. Following management’s formal remarks there will be a question-and-answer session.

    Participants are asked to preregister for the call at the following link: https://dpregister.com/sreg/10185867/fb6f640d8c

    Please note that registered participants will receive their dial-in number upon registration and will dial directly into the call without delay. Those without Internet access or who are unable to pre-register may dial in by calling 1-844-481-2698 (domestic) or 1-412-317-0655 (international).

    Please join at least 5-10 minutes prior to the scheduled start and follow the operator’s instructions. When requested, please ask for “AMMO, Inc. Third Quarter 2024 Conference Call.”

    The conference call will also be available through a live webcast at the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=mnSsDVht, which is also available through the Company’s website.

    About AMMO, Inc.

    With its corporate offices headquartered in Scottsdale, Arizona, AMMO designs and manufactures products for a variety of aptitudes, including law enforcement, military, sport shooting and self-defense. The Company was founded in 2016 with a vision to change, innovate and invigorate the complacent munitions industry. AMMO promotes branded munitions as well as its patented STREAK Visual Ammunition, /stelTH/subsonic munitions, and specialty rounds for military use via government programs. For more information, please visit: www.ammo-inc.com.

    About GunBroker.com

    GunBroker.com is the largest online marketplace dedicated to firearms, hunting, shooting and related products. Aside from merchandise bearing its logo, GunBroker.com currently sells none of the items listed on its website. Third-party sellers list items on the site and Federal and state laws govern the sale of firearms and other restricted items. Ownership policies and regulations are followed using licensed firearms dealers as transfer agents. Launched in 1999, GunBroker.com is an informative, secure and safe way to buy and sell firearms, ammunition, air guns, archery equipment, knives and swords, firearms accessories and hunting/shooting gear online. GunBroker.com promotes responsible ownership of guns and firearms. For more information, please visit: www.gunbroker.com.

    Forward Looking Statements

    This document contains certain “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies, goals and objectives of management for future operations; any statements concerning proposed new products and services or developments thereof; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing.

    Forward looking statements may include the words “may,” “could,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words, or the negative thereof. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made. You should, however, consult further disclosures and risk factors we include in Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports filed on Form 8-K.

    Investor Contact:
    CoreIR
    Phone: (212) 655-0924
    IR@ammo-inc.com

    Source: AMMO, Inc. 

    AMMO, Inc.

    CONDENSED CONSOLIDATED BALANCE SHEETS

      December 31, 2023  March 31, 2023 
       (Unaudited)     
    ASSETS        
    Current Assets:        
    Cash and cash equivalents $54,679,868  $39,134,027 
    Accounts receivable, net  21,121,450   29,346,380 
    Inventories  49,502,732   54,344,819 
    Prepaid expenses  3,708,865   5,126,667 
    Current portion of restricted cash  -   500,000 
    Total Current Assets  129,012,915   128,451,893 
             
    Equipment, net  57,278,603   55,963,255 
             
    Other Assets:        
    Deposits  2,265,932   7,028,947 
    Patents, net  4,662,656   5,032,754 
    Other intangible assets, net  114,296,627   123,726,810 
    Goodwill  90,870,094   90,870,094 
    Right of use assets - operating leases  2,113,943   1,261,634 
    Deferred income tax asset  115,908   - 
    TOTAL ASSETS $400,616,678  $412,335,387 
             
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
    Current Liabilities:        
    Accounts payable $19,146,138  $18,079,397 
    Accrued liabilities  6,570,668   4,353,354 
    Current portion of operating lease liability  463,059   470,734 
    Note payable related party  -   180,850 
    Current portion of construction note payable  265,977   260,429 
    Insurance premium note payable  173,029   2,118,635 
    Total Current Liabilities  26,618,871   25,463,399 
             
    Long-term Liabilities:        
    Contingent consideration payable  80,080   140,378 
    Construction note payable, net of unamortized issuance costs  10,797,696   10,922,443 
    Operating lease liability, net of current portion  1,737,615   903,490 
    Deferred income tax liability  -   2,309,592 
    Total Liabilities  39,234,262   39,739,302 
             
    Shareholders’ Equity:        
    Series A cumulative perpetual preferred Stock 8.75%, ($25.00 per share, $0.001 par value) 1,400,000 shares issued and outstanding as of December 31, 2023 and March 31, 2023, respectively  1,400   1,400 
    Common stock, $0.001 par value, 200,000,000 shares authorized 119,994,033 and 118,562,806 shares issued and 118,643,593 and 118,294,478 outstanding at December 31, 2023 and March 31, 2023, respectively  118,644   118,294 
    Additional paid-in capital  395,449,082   391,940,374 
    Accumulated deficit  (31,513,554)  (18,941,825)
    Treasury Stock  (2,673,156)  (522,158)
    Total Shareholders’ Equity  361,382,416   372,596,085 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $400,616,678  $412,335,387 


    AMMO, Inc.

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)

      For the Three Months Ended
    December 31,
      For the Nine Months Ended
    December 31,
     
      2023  2022  2023  2022 
                 
    Net Revenues                
    Ammunition sales(1) $17,322,967  $20,250,965  $46,945,585  $90,607,817 
    Marketplace revenue  13,985,034   15,419,202   40,371,952   46,486,842 
    Casing sales  4,698,463   3,041,327   17,315,888   10,661,420 
       36,006,464   38,711,494   104,633,425   147,756,079 
                     
    Cost of Revenues  25,096,088   26,184,315   71,410,243   104,257,529 
    Gross Profit  10,910,376   12,527,179   33,223,182   43,498,550 
                     
    Operating Expenses                
    Selling and marketing  236,565   1,010,543   822,098   3,987,214 
    Corporate general and administrative  5,803,255   7,835,201   21,606,442   17,920,197 
    Employee salaries and related expenses  3,390,153   4,705,636   13,096,468   11,414,434 
    Depreciation and amortization expense  3,401,156   3,309,074   10,117,001   9,950,752 
    Total operating expenses  12,831,129   16,860,454   45,642,009   43,272,597 
    Income/(Loss) from Operations  (1,920,753)  (4,333,275)  (12,418,827)  225,953 
                     
    Other Expenses                
    Other income/(loss)  4,576   (170,403)  376,186   28,193 
    Interest expense  (193,046)  (320,439)  (609,561)  (538,191)
    Total other expense, net  (188,470)  (490,842)  (233,375)  (509,998)
                     
    Loss before Income Taxes  (2,109,223)  (4,824,117)  (12,652,202)  (284,045)
                     
    Provision for Income Taxes  (465,234)  (721,125)  (2,419,883)  1,369,427 
                     
    Net Loss  (1,643,989)  (4,102,992)  (10,232,319)  (1,653,472)
                     
    Preferred Stock Dividend  (782,639)  (782,639)  (2,339,410)  (2,339,409)
                     
    Net Loss Attributable to Common Stock Shareholders $(2,426,628) $(4,885,631) $(12,571,729) $(3,992,881)
                     
    Net Loss per share                
    Basic $(0.02) $(0.04) $(0.11) $(0.03)
    Diluted $(0.02) $(0.04) $(0.11) $(0.03)
                     
    Weighted average number of shares outstanding                
    Basic  118,447,154   117,348,511   118,110,943   116,950,013 
    Diluted  118,447,154   117,348,511   118,110,943   116,950,013 


    (1)Included in revenue for the three months ended December 31, 2023 and 2022 are excise taxes of $1,498,429 and $1,669,206, respectively. Included in revenue for the nine months ended December 31, 2023 and 2022 are excise taxes of $3,958,391 and $7,816,598, respectively.


    AMMO, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
    (Unaudited)

      For the Nine Months Ended
    December 31,
     
      2023  2022 
           
    Cash flows from operating activities:        
    Net Loss $(10,232,319) $(1,653,472)
    Adjustments to reconcile Net Loss to Net Cash provided by operations:        
    Depreciation and amortization  14,047,216   12,950,972 
    Debt discount amortization  62,440   62,440 
    Employee stock awards  2,977,845   4,457,973 
    Stock grants  152,250   135,344 
    Common stock purchase options  380,045   - 
    Warrants Issued for Services  -   106,909 
    Contingent consideration payable fair value  (60,298)  (45,572)
    Allowance for doubtful accounts  1,117,565   1,327,419 
    Reduction in right of use asset  362,402   512,063 
    Deferred income taxes  (2,425,500)  1,283,481 
    Changes in Current Assets and Liabilities        
    Accounts receivable  7,107,365   12,208,054 
    Due from related parties  -   15,000 
    Inventories  4,842,087   (8,129,249)
    Prepaid expenses  2,474,001   1,941,206 
    Deposits  4,763,015   1,678,415 
    Accounts payable  1,066,741   (5,852,397)
    Accrued liabilities  2,072,696   (2,044,248)
    Operating lease liability  (388,261)  (522,917)
    Net cash provided by operating activities  28,319,290   18,431,421 
             
    Cash flows from investing activities:        
    Purchase of equipment  (5,562,283)  (10,566,182)
    Net cash used in investing activities  (5,562,283)  (10,566,182)
             
    Cash flow from financing activities:        
    Proceeds from factoring liability  37,252,869   57,300,000 
    Payments on factoring liability  (37,252,869)  (56,107,221)
    Payments on inventory facility, net  -   (825,675)
    Payments on note payable - related party  (180,850)  (507,508)
    Payments on insurance premium note payment  (3,001,805)  (1,916,070)
    Proceeds from construction note payable  -   1,000,000 
    Payments on construction note payable  (181,639)  (66,586)
    Preferred stock dividends paid  (2,194,792)  (2,195,075)
    Common stock repurchase plan  (2,152,080)  (291,011)
    Common stock issued for exercised warrants  -   56,046 
    Net cash used in financing activities  (7,711,166)  (3,553,100)
             
    Net increase in cash  15,045,841   4,312,139 
    Restricted cash, beginning of period  500,000   - 
    Cash, beginning of period  39,134,027   23,281,475 
    Cash and restricted cash, end of period $54,679,868  $27,593,614 
    Restricted cash, end of period $-  $500,000 
    Cash, end of period $54,679,868  $27,093,614 

    (Continued)

    AMMO, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
    (Unaudited)

      For the Nine Months Ended
    December 31,
     
      2023  2022 
           
    Supplemental cash flow disclosures:        
    Cash paid during the period for:        
    Interest $548,118  $433,761 
    Income taxes $-  $1,302,811 
             
    Non-cash investing and financing activities:        
    Operating lease liability $1,214,711  $901,076 
    Insurance premium note payment $1,056,199  $2,035,519 
    Dividends accumulated on preferred stock $144,618  $144,334 
    Construction note payable $-  $10,237,032 
    Warrants issued for services $-  $427,639 

    The accompanying notes are an integral part of these condensed consolidated financial statements.

    Non-GAAP Financial Measures

    We analyze operational and financial data to evaluate our business, allocate our resources, and assess our performance. In addition to total net sales, net loss, and other results under accounting principles generally accepted in the United States (“GAAP”), the following information includes key operating metrics and non-GAAP financial measures we use to evaluate our business. We believe these measures are useful for period-to-period comparisons of the Company. We have included these non-GAAP financial measures in this Current Report on Form 8-K because they are key measures we use to evaluate our operational performance, produce future strategies for our operations, and make strategic decisions, including those relating to operating expenses and the allocation of our resources. Accordingly, we believe these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

    Reconciliation of GAAP net income to Adjusted EBITDA

    Adjusted EBITDA

      For the Three Months
    Ended
      For the Nine Months
    Ended
     
      31-Dec-23  31-Dec-22  31-Dec-23  31-Dec-22 
                 
    Reconciliation of GAAP net income to Adjusted EBITDA                
    Net Loss $(1,643,989) $(4,102,992) $(10,232,319) $(1,653,472)
    Provision for Income Taxes  (465,234)  (721,125)  (2,419,883)  1,369,427 
    Depreciation and amortization  4,753,650   4,356,004   14,047,216   12,950,972 
    Interest expense, net  193,046   320,439   609,561   538,191 
    Employee stock awards  687,099   2,106,535   2,977,845   4,457,973 
    Stock grants  50,750   43,750   152,250   135,344 
    Common stock purchase options  380,045   -   380,045   - 
    Warrant Issuance  -   106,909   -   106,909 
    Other (income) expense, net  (4,576)  170,403   (376,186)  (28,193)
    Contingent consideration fair value  (39,274)  (20,326)  (60,298)  (45,572)
    Other nonrecurring expenses(1)  1,498,684   3,983,254   8,126,102   4,724,385 
    Adjusted EBITDA $5,410,201  $6,242,851  $13,204,333  $22,555,964 


     1)For the three and nine months ended December 31, 2023, other nonrecurring expenses consist of professional and legal fees that are nonrecurring in nature. For the three and nine months ended December 31, 2022, other nonrecurring expenses consist of proxy contest fees.

    Reconciliation of GAAP net income to Fully Diluted EPS

      For the Three Months Ended 
      31-Dec-23  31-Dec-22 
    Reconciliation of GAAP net income to Fully Diluted EPS                
    Net Loss $(1,643,989) $(0.01) $(4,102,992) $(0.03)
    Depreciation and amortization  4,753,650   0.04   4,356,004   0.04 
    Interest expense, net  193,046   -   320,439   - 
    Employee stock awards  687,099   0.01   2,106,535   0.02 
    Stock grants  50,750   -   43,750   - 
    Common stock purchase options  380,045   -   -   - 
    Warrant issuance  -   -   106,909   - 
    Contingent consideration fair value  (39,274)  -   (20,326)  - 
    Nonrecurring expenses  1,498,684   0.01   3,983,254   0.03 
    Tax effect(1)  (1,708,026)  (0.01)  (2,294,820)  (0.02)
    Adjusted Net Income $4,171,985  $0.04  $4,498,753  $0.04 


      For the Nine Months Ended 
      31-Dec-23  31-Dec-22 
    Reconciliation of GAAP net income to Fully Diluted EPS                
    Net Loss $(10,232,319) $(0.09) $(1,653,472) $(0.01)
    Depreciation and amortization  14,047,216   0.12   12,950,972   0.11 
    Interest expense, net  609,561   -   538,191   - 
    Employee stock awards  2,977,845   0.03   4,457,973   0.04 
    Stock grants  152,250   -   135,344   - 
    Common stock purchase options  380,045       -   - 
    Warrant issuance  -       106,909   - 
    Contingent consideration fair value  (60,298)  -   (45,572)  - 
    Nonrecurring expenses  8,126,102   0.07   4,724,385   0.04 
    Tax effect(1)  (6,037,463)  (0.05)  (4,826,590)  (0.04)
    Adjusted Net Income $9,962,939  $0.08  $16,388,140  $0.14 


     (1)Tax effects are estimated by applying the statutory rate to each applicable Non-GAAP adjustment.


      For the Three Months Ended
    December 31,
      For the Nine Months Ended
    December 31,
     
      2023  2022  2023  2022 
    Weighted average number
    of shares outstanding
                
    Basic  118,447,154   117,348,511   118,110,943   116,950,013 
    Diluted  118,447,154   117,348,511   118,110,943   116,950,013 


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