• AMMO, Inc. Reports Financial Results for Second Quarter Fiscal 2022

    来源: Nasdaq GlobeNewswire / 15 11月 2021 16:05:01   America/New_York

    Record Net Revenues of $61.0 Million Including Marketplace Revenue of $16.8 Million

    Diluted EPS of $0.11 Compared to ($0.05)

    Adjusted EPS of $0.17 Compared to ($0.01)

    Raises Fiscal 2022 Outlook to $250 Million of Revenue and $80 Million of Adjusted EBITDA

    SCOTTSDALE, AZ, Nov. 15, 2021 (GLOBE NEWSWIRE) -- AMMO, Inc. (Nasdaq: POWW, POWWP) (“AMMO” or the “Company”), a leading vertically integrated producer of high-performance ammunition and components and owner of GunBroker.com, the largest online marketplace serving the firearms and shooting sports industries, today announced results for its second quarter of fiscal 2022 ended September 30, 2021.

    Second Quarter Fiscal 2022 versus Second Quarter Fiscal 2021:

    • Net revenues increased 408% to $61.0 million
    • Marketplace revenue of $16.8 million
    • Gross profit margin was 43.0% compared to 10.7%
    • Net income was $14.1 million compared to a net loss of $2.3 million
    • Diluted EPS of $0.11 compared to ($0.05); Adjusted EPS of $0.17 compared to ($0.01)
    • Adjusted EBITDA was $24.0 million versus $0.4 million
    • Backlog of over $185 million

    “Momentum remains very strong across our entire business and we reported another record quarterly performance that exceeded estimates for revenue and Adjusted EBITDA. Trends accelerated in the second quarter with Ammunition revenue increasing 360%,” said Fred Wagenhals, AMMO’s Chairman and Chief Executive Officer. “Marketplace revenue growth is being driven by increases in the number of bids, items sold, as well as average ticket amount, coupled with significant increases in adoption rates for our new loyalty program. Margins continued to expand significantly driven by growth in our Marketplace segment, as well as scale-related efficiencies and capacity increases in our core Ammunition business. We also announced another new U.S. military contract in September, and construction activities related to our new state-of-the-art Wisconsin plant continue to track to a mid- 2022 Summer grand opening. Strong execution by our team across our platform is enabling us to again increase guidance as we remain well positioned for future growth.”

    Second Quarter Fiscal 2022 Results

    Net revenues of $61.0 million were up 408% versus last year, driven by continued strength in our Ammunition business and incremental revenue realized as a result of our GunBroker.com acquisition. Ammunition sales totaled $40.2 million compared to $8.7 million in last year’s second quarter, an increase of 360%. Marketplace revenue was $16.8 million for the quarter with no comparable year-earlier period, reflecting closing of the GunBroker.com acquisition during the first quarter – April 30, 2021.

    Gross profit was $26.2 million in the second quarter versus $1.3 million in the year-earlier period, driven by strong growth in Ammunition along with incremental revenue from our Marketplace segment, which has significantly higher margins. Gross profit margin was 43.0% in the second quarter, compared to 10.7% in last year’s second quarter, due to the impact of our higher margin Marketplace revenue. On a sequential basis, second quarter gross margin improved 30 basis points, reflecting the rising mix of Marketplace revenue.

    Operating expenses were $12.0 million for the second quarter of fiscal 2022, compared to $3.0 million for the second quarter of fiscal 2021. The majority of the $9.0 million increase in operating expenses stemmed from the addition of GunBroker.com, including noncash $3.3 million of incremental depreciation and amortization. As a percent of sales, operating expenses declined 535 basis points year-over-year to 19.7% in the second quarter of fiscal 2022, reflecting operating leverage, manufacturing scale and the mix shift in favor of higher margin Marketplace revenues.

    Operating income for the second quarter of fiscal 2022 was $14.2 million compared to an operating loss of $1.7 million in last year’s second quarter.

    Net income was $14.1 million in the second quarter of fiscal 2022, compared to a net loss of $2.3 million in the second quarter of fiscal 2021. Net income available to common shareholders was $13.3 million or $0.11 per fully diluted share versus a net loss of $2.3 million and ($0.05) per fully diluted share in the second quarter of fiscal 2021. Adjusted net income per diluted share was $0.17 in versus an adjusted net income per share loss of ($0.01) in the prior year quarter.

    Adjusted EBITDA was $24.0 million in the second quarter of fiscal 2022, compared to an adjusted EBITDA loss of $0.4 million a year earlier.

    Outlook

    We are increasing our fiscal 2022 revenue guidance from $210 million to $250 million. We are also increasing our Adjusted EBITDA guidance for fiscal 2022 from $70 million to $80 million.

    Conference Call

    Management will host a conference call to discuss the Company’s second fiscal quarter 2022 results at 5:00 p.m. ET, November 15, 2021. To participate in the conference call, please join by dialing 1-877-407-0789 (domestic), 1-201-689-8562 (international), or via webcast
    https://protect-us.mimecast.com/s/udtnCBB8Pkc00D8wfjqei7?domain=viavid.webcasts.com at least 5-10 minutes prior to the scheduled start and follow the operator’s instructions. When requested, please ask for the “AMMO, Inc. Second Quarter Fiscal 2022 Earnings Call.”

    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 armor piercing rounds for military use. 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:
    Reed Anderson
    ICR
    (646) 277-1260
    IR@ammo-inc.com

    AMMO, Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS 

      September 30, 2021  March 31, 2021 
       (Unaudited)     
    ASSETS        
    Current Assets:        
    Cash and cash equivalents $32,938,021  $118,341,471 
    Accounts receivable, net  39,621,340   8,993,920 
    Due from related parties  18,934   15,657 
    Inventories  34,960,878   15,866,918 
    Prepaid expenses  3,412,497   2,402,366 
    Total Current Assets  110,951,670   145,620,332 
             
    Equipment, net  25,695,773   21,553,226 
             
    Other Assets:        
    Deposits  17,217,487   1,833,429 
    Licensing agreements, net  16,667   41,667 
    Patents, net  5,772,897   6,019,567 
    Other intangible assets, net  143,052,686   2,220,958 
    Goodwill  90,870,094   - 
    Right of use assets - operating leases  2,935,322   2,090,162 
    TOTAL ASSETS $396,512,596  $179,379,341 
             
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
    Current Liabilities:        
    Accounts payable $20,807,941  $4,371,974 
    Factoring liability  3,131,676   1,842,188 
    Accrued liabilities  5,452,427   3,462,785 
    Inventory credit facility  194,810   1,091,098 
    Current portion of contingent consideration payable  10,755,000   - 
    Current portion of operating lease liability  867,133   663,784 
    Current portion of note payable related party  654,461   625,147 
    Insurance premium note payable  1,134,159   41,517 
    Total Current Liabilities  42,997,607   12,098,493 
             
    Long-term Liabilities:        
    Contingent consideration payable, net of current portion  529,810   589,892 
    Notes payable related part, net of current portion  531,396   865,771 
    Note payable  -   4,000,000 
    Operating lease liability, net of current portion  2,195,095   1,477,656 
    Total Liabilities  46,253,908   19,031,812 
             
    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 September 30, 2021  1,400   - 
    Common stock, $0.001 par value, 200,000,000 shares authorized 113,583,016 and 93,099,067 shares issued and outstanding at September 30, 2021 and March 31, 2021, respectively  113,583   93,100 
    Additional paid-in capital  369,431,456   202,073,968 
    Accumulated deficit  (19,287,751)  (41,819,539)
    Total Shareholders’ Equity  350,258,688   160,347,529 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $396,512,596  $179,379,341 

    AMMO, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)

                     
      For the Three Months Ended
    September 30,
      For the Six Months Ended
    September 30,
     
      2021  2020  2021  2020 
                     
    Net Revenues                
    Ammunition sales $40,208,402  $8,741,280  $68,560,182  $15,152,948 
    Marketplace revenue  16,777,216   -   29,049,282   - 
    Casing sales  4,016,467   3,271,592   7,868,953   6,519,894 
       61,002,085   12,012,872   105,478,417   21,672,842 
    Cost of Revenues, for the three and six months ended September 30, 2021 and 2020 includes depreciation and amortization of $959,945, $780,150, $1,835,675, and $1,538,652, respectively, and federal excise taxes of $3,937,118, $864,570, $6,334,889 and $1,505,693, respectively  34,786,017   10,723,246   60,291,455   19,311,811 
    Gross Profit  26,216,068   1,289,626   45,186,962   2,361,031 
                     
    Operating Expenses                
    Selling and marketing  1,550,394   332,430   2,716,243   702,052 
    Corporate general and administrative  4,082,236   1,077,194   7,238,833   2,166,178 
    Employee salaries and related expenses  2,647,108   1,174,257   5,003,981   2,156,746 
    Depreciation and amortization expense  3,708,012   415,685   6,319,073   826,184 
    Loss on purchase  -   -   -   1,000,000 
    Total operating expenses  11,987,750   2,999,566   21,278,130   6,851,160 
    Income/(Loss) from Operations  14,228,318   (1,709,940)  23,908,832   (4,490,129)
                     
    Other Expenses                
    Other income/(expense), net  -   (186,600)  21,425   (186,600)
    Interest expense  (112,806)  (442,085)  (278,085)  (765,685)
    Total other expenses  (112,806)  (628,685)  (256,660)  (952,285)
                     
    Income/(Loss) before Income Taxes  14,115,512   (2,338,625)  23,652,172   (5,442,414)
                     
    Provision for Income Taxes  -   -   -   - 
                     
    Net Income/(Loss)  14,115,512   (2,338,625)  23,652,172   (5,442,414)
                     
    Preferred Stock Dividend  (782,639)  -   (1,120,384)  - 
                     
    Net Income/(Loss) Attributable to Common Stock Shareholders $13,332,873  $(2,338,625) $22,531,788  $(5,442,414)
                     
    Net Income/(Loss) per share                
    Basic $0.12  $(0.05) $0.21  $(0.12)
    Diluted $0.11  $(0.05) $0.20  $(0.12)
                     
    Weighted average number of shares outstanding                
    Basic  113,174,363   47,790,105   109,545,553   47,023,094 
    Diluted  116,721,949   47,790,105   112,848,821   47,023,094 

    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 Quarterly Report on Form 10-Q 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.

      For the Three Months Ended  For the Six Months Ended 
      30-Sep-21  30-Sep-20  30-Sep-21  30-Sep-20 
                 
    Reconciliation of GAAP net income to Adjusted EBITDA                
    Net Income (Loss) $14,115,512  $(2,338,625) $23,652,172  $(5,442,414)
    Depreciation and amortization  4,667,957   1,195,835   8,154,748   2,364,836 
    Loss on Purchase  -   -   -   1,000,000 
    Excise Taxes  3,937,118   864,570   6,334,889   1,505,693 
    Interest expense, net  112,806   442,085   278,085   765,685 
    Employee stock awards  1,153,625   220,436   1,853,125   475,736 
    Stock grants  65,098   70,909   132,012   147,675 
    Other income, net  -   -   (21,425)  - 
    Contingent consideration fair value  (3,444)  (29,390)  (60,082)  (57,358)
    Adjusted EBITDA $24,048,672  $425,820  $40,323,524  $758,853 


      For the Three Months Ended
      30-Sep-21 30-Sep-20
               
    Reconciliation of GAAP net income to Fully Diluted EPS            
    Net Income (Loss) $14,115,512 $0.12 $(2,338,625) $(0.05)
    Depreciation and amortization  4,667,957  0.04  1,195,835  0.03
    Loss on Purchase  -  -  -  -
    Interest expense, net  112,806  -  442,085  0.01
    Employee stock awards  1,153,625  0.01  220,436  -
    Stock grants  65,098  -  70,909  -
    Other income, net  -  -  -  -
    Contingent consideration fair value  (3,444)  -  (29,390)  -
    Adjusted EBITDA $20,111,554 $0.17 $(438,750) $(0.01)


      For the Six Months Ended 
      30-Sep-21 30-Sep-20 
                
    Reconciliation of GAAP net income to Fully Diluted EPS             
    Net Income (Loss) $23,652,172 $0.21 $(5,442,414) $(0.12) 
    Depreciation and amortization  8,154,748  0.07  2,364,836  0.05 
    Loss on Purchase  -  -  1,000,000  0.02 
    Interest expense, net  278,085  -  765,685  0.02 
    Employee stock awards  1,853,125  0.02  475,736  0.01 
    Stock grants  132,012  -  147,675  - 
    Other income, net  (21,425)  -  -  - 
    Contingent consideration fair value  (60,082)  -  (57,358)  - 
    Adjusted EBITDA $33,988,635 $0.30 $(745,840) $(0.02) 

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