• AMMO, Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results

    Источник: Nasdaq GlobeNewswire / 13 июн 2024 16:05:00   America/New_York

    SCOTTSDALE, Ariz., June 13, 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 Fourth Quarter and Fiscal Year 2024, ended March 31, 2024.

    Fiscal Year 2024 Overview

     Net Revenues of $145.1 million, a 24.2% decrease.
     Gross profit margin of approximately 29.4%.
     Adjusted EBITDA of $15.4 million compared to $26.4 million.
     Net loss of ($15.6) million, compared to net loss of ($4.6) million.
     Diluted EPS of ($0.16), compared to ($0.07).
     Adjusted EPS of $0.09, compared to $0.16.
       

    GunBroker.com “Marketplace” Metrics – Fiscal Year 2024

     Marketplace revenue of approximately $53.9 million.
     New user growth averaged 30,000 per month.
     Average take rate increased to 5.9% compared to 5.6% in fiscal 2023.
       

    Fourth Quarter 2024 Overview

     Net Revenues of $40.4 million, a 7.5% decrease
     Gross profit margin of approximately 23.3%.
     Adjusted EBITDA of $2.2 million compared to $3.8 million.
     Net loss of ($5.3) million, compared to net loss of ($2.9) million.
     Diluted EPS of ($0.05), compared to ($0.04).
     Adjusted EPS of $0.01, compared to $0.02.
       

    GunBroker.com “Marketplace” Metrics – Fourth Quarter 2024

     Marketplace revenue of approximately $13.6 million.
     New user growth averaged 32,000 per month.
     Average take rate increased to 6.0%
       

    Jared Smith, AMMO’s CEO, commented “Sales increased sequentially despite a slower market environment. We continued to make progress this quarter and ended the fiscal year with a strong pipeline of rifle ammunition and casing sales while accelerating our buildout of GunBroker’s capabilities. This is most evident as we start to deliver on our ZRO Delta contract, while continuing the advancement in financing, cross selling, and carting of accessories that will take place with GunBroker in Fiscal 2025.

    “AMMO is at a pivotal point as we finish the first quarter of our 2025 fiscal year. We believe we have changed the trajectory of the business in these past 12 months in a way that will lead to increased shareholder value. Our ongoing transition from low margin pistol ammo to high margin rifle cases will sustain a more stable and profitable business model going forward. In addition, GunBroker’s multi seller, multi-item checkout process will enable us to capture a higher margin accessory business, while streamlining the checkout process. As we sit here in June, we believe we have never been more poised for success,” Mr. Smith concluded.

    Fourth Quarter and Fiscal Year 2024 Results

    We experienced sequential revenue growth in our ammunition segment in the final quarter of our fiscal year in comparison to our third quarter while the margins of the GunBroker marketplace segment remain robust.

    We ended the fourth quarter of our 2024 fiscal year with total revenues of approximately $40.4 million in comparison to $43.7 million in the prior year quarter. The decrease in revenue was primarily related to a decrease in activity in our marketplace segment, which we believe decreased as a result of the current macroeconomic environment impacting our industry as well as others. Our casing sales, however, which afford us higher gross margins, increased to $0.9 million up from the prior year period. Revenues for our ammunition segment decreased $0.2 million from the prior year quarter but increased $4.8 million or 21.9% quarter-over-quarter as a result of increased ammunition sales in our fourth fiscal quarter.

    Cost of goods sold was approximately $31.0 million for the quarter compared to $31.8 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 $9.4 million or 23.3% compared to $11.9 million or 27.3% in the prior year period. The decrease in gross profit margin was related to the shift in sales mix.

    The robust margins on GunBroker remained steady through our final quarter, but the margins in the ammunition segment did not meet expectations. We expect improvement as production capacities increase. Our inventory levels continued to decrease, generating $4.3 million in cash from operations for the quarter, bringing us to $32.6 million for the full fiscal year.

    There was approximately $2.4 million of nonrecurring expenses in the quarter related to legal and professional fees, which we have included as an addback to adjusted EBITDA.

    For the quarter, we recorded Adjusted EBITDA of approximately $2.2 million, compared to the prior year quarter Adjusted EBITDA of $3.8 million.

    We ended the quarter with a Net Loss of approximately $5.3 million compared with a Net Loss of approximately $2.9 million for the prior year period. This resulted in a loss per share of $0.05 for the quarter or Adjusted Net Income per Share of $0.01 in comparison to a loss per share of $0.04 in the prior year quarter or Adjusted Net Income per Share of $0.03. For our fiscal year, a loss per share of $0.16 or Adjusted Net Loss per Share of $0.09 in comparison to Net Income per share of $0.07 or Adjusted Net Income per Share of $0.16 in the prior year.

    Looking forward, we are focused on increasing our plant capacity with the recent engagement of a global consulting firm, which should improve the product marginality.

    For GunBroker, we launched our cart platform in March of 2024, and will be bringing other efforts online in Fiscal 2025. These efforts may include additional customer financing partnerships such as what we built with Gearfire Capital, which will allow retailers the option to offer flexible financing options to customers. We expect these enhancements will drive sales growth through better functionality and enhanced purchasing power of buyers.

    As of now, we believe we are financially well positioned into Fiscal 2025 given our strong net working capital position. We reported $131.5 million in current assets including $55.6 million of cash and cash equivalents along with $30.9 million of current liabilities. Additionally, we generated $32.6 million in cash from operations for the period.

    Conference Call

    Management will host a conference call at 5:00 PM ET today, June 13, 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/10188534/fc5c14c674

    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. Fourth Quarter and Fiscal Year 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=FE9IBGzz, 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 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

      March 31, 2024  March 31, 2023 
           
    ASSETS        
    Current Assets:        
    Cash and cash equivalents $55,586,441  $39,134,027 
    Accounts receivable, net  28,221,321   29,346,380 
    Inventories  45,563,334   54,344,819 
    Prepaid expenses  2,154,170   5,126,667 
    Current portion of restricted cash  -   500,000 
    Total Current Assets  131,525,266   128,451,893 
             
    Equipment, net  58,082,040   55,963,255 
             
    Other Assets:        
    Deposits  349,278   7,028,947 
    Patents, net  4,539,290   5,032,754 
    Other intangible assets, net  111,049,067   123,726,810 
    Goodwill  90,870,094   90,870,094 
    Right of use assets - operating leases  2,000,093   1,261,634 
    Deferred income tax asset  1,487,088   - 
    TOTAL ASSETS $399,902,216  $412,335,387 
             
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
    Current Liabilities:        
    Accounts payable $23,156,495  $18,079,397 
    Accrued liabilities  7,030,667   4,353,354 
    Current portion of operating lease liability  479,651   470,734 
    Note payable related party  -   180,850 
    Current portion of construction note payable  273,459   260,429 
    Insurance premium note payable  -   2,118,635 
    Total Current Liabilities  30,940,272   25,463,399 
             
    Long-term Liabilities:        
    Contingent consideration payable  59,838   140,378 
    Construction note payable, net of unamortized issuance costs  10,735,241   10,922,443 
    Operating lease liability, net of current portion  1,609,836   903,490 
    Deferred income tax liability  -   2,309,592 
    Total Liabilities  43,345,187   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 March 31, 2024 and March 31, 2023, respectively  1,400   1,400 
    Common stock, $0.001 par value, 200,000,000 shares authorized 120,531,507 and 118,562,806 shares issued and 119,181,067 and 118,294,478 outstanding at March 31, 2024 and March 31, 2023, respectively  119,181   118,294 
    Additional paid-in capital  396,730,170   391,940,374 
    Accumulated deficit  (37,620,566)  (18,941,825)
    Treasury Stock  (2,673,156)  (522,158)
    Total Shareholders’ Equity  356,557,029   372,596,085 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $399,902,216  $412,335,387 


    AMMO, Inc.

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)

      For the Three Months Ended
    March 31,
      For the Years Ended
    March 31,
     
      2024  2023  2024  2023 
                 
    Net Revenues                
    Ammunition sales $ 22,445,216  $ 23,508,227  $69,390,801  $114,116,044 
    Marketplace revenue   13,570,124    16,662,831   53,942,076   63,149,673 
    Casing sales   4,405,807    3,512,664   21,721,695   14,174,084 
        40,421,147    43,683,722   145,054,572   191,439,801 
                     
    Cost of Revenues   31,021,560    31,773,675   102,431,803   136,031,204 
    Gross Profit   9,399,587    11,910,047   42,622,769   55,408,597 
                     
    Operating Expenses                
    Selling and marketing   547,981    742,326   1,370,079   4,729,540 
    Corporate general and administrative   7,976,832    7,059,882   29,583,274   24,980,079 
    Employee salaries and related expenses   3,607,354    4,264,701   16,703,822   15,679,135 
    Depreciation and amortization expense   3,425,790    3,328,010   13,542,791   13,278,762 
    Total operating expenses   15,557,957    15,394,919   61,199,966   58,667,516 
    Loss from Operations   (6,158,370)   (3,484,872)  (18,577,197)  (3,258,919)
                     
    Other Expenses                
    Other income/(expense)   (708,779)   (3,012)  (332,593)  25,181 
    Interest expense   163,088    (93,871)  (446,473)  (632,062)
    Total other expense   (545,691)   (96,883)  (779,066)  (606,881)
                     
    Loss before Income Taxes   (6,704,061)   (3,581,755)  (19,356,263)  (3,865,800)
                     
    Provision for Income Taxes   (1,371,180)   (639,189)  (3,791,063)  730,238 
                     
    Net Loss   (5,332,881)   (2,942,566)  (15,565,200)  (4,596,038)
                     
    Preferred Stock Dividend   (782,639)   (765,625)  (3,122,049)  (3,105,034)
                     
    Net Loss Attributable to Common Stock Shareholders $ (6,115,520) $ (3,708,191) $(18,687,249) $(7,701,072)
                     
    Net Loss per share                
    Basic $ (0.05) $ (0.04) $(0.16) $(0.07)
    Diluted $ (0.05) $ (0.04) $(0.16) $(0.07)
                     
    Weighted average number of shares outstanding                
    Basic   118,775,757    117,874,162   118,249,486   117,177,885 
    Diluted   118,775,757    117,874,162   118,249,486   117,177,885 


    AMMO, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

      For the Year Ended
    March 31,
      2024  2023 
           
    Cash flows from operating activities:        
    Net Loss $(15,565,200) $(4,596,038)
    Adjustments to reconcile Net Loss to Net Cash provided by operations:        
    Depreciation and amortization  18,813,897   17,519,949 
    Debt discount amortization  83,253   83,253 
    Employee stock awards  4,082,108   5,807,779 
    Stock grants  203,000   179,094 
    Common stock purchase options  430,457   - 
    Stock for services  -   - 
    Contingent consideration payable fair value  (80,540)  (63,764)
    Allowance for credit losses  419,527   191,299 
    Loss on disposal of assets  259,540   - 
    Reduction in right of use asset  476,252   629,140 
    Warrant issued for services  -   213,819 
    Deferred income taxes  (3,796,680)  730,238 
    Changes in Current Assets and Liabilities        
    Accounts receivable  705,532   14,417,405 
    Due from related parties  -   15,000 
    Inventories  8,781,485   4,671,333 
    Prepaid expenses  4,028,696   2,763,855 
    Deposits  6,679,669   4,306,375 
    Accounts payable  5,077,098   (8,694,813)
    Accrued liabilities  2,532,695   (1,970,078)
    Operating lease liability  (499,448)  (647,480)
    Net cash provided by operating activities  32,631,341   35,556,366 
             
    Cash flows from investing activities:        
    Gemini acquisition  -   - 
    Purchase of equipment  (8,024,765)  (12,541,325)
    Proceeds from disposal of assets  3,750   - 
    Net cash used in investing activities  (8,021,015)  (12,541,325)
             
    Cash flow from financing activities:        
    Payments on inventory facility, net  -   (825,675)
    Proceeds from factoring liability  37,252,869   71,348,761 
    Payments on factoring liability  (37,252,869)  (71,834,432)
    Payments on assumed debt from Gemini  -   - 
    Payments on note payable - related party  (180,850)  (684,921)
    Payments on insurance premium note payment  (3,174,834)  (2,134,143)
    Proceeds from construction note payable  -   1,000,000 
    Payments on construction note payable  (257,425)  (150,743)
    Payments on note payable  -   - 
    Sale of preferred stock  -   - 
    Common stock issued for exercised warrants  76,200   101,506 
    Common stock issuance costs  -   - 
    Preferred stock dividends paid  (2,968,923)  (2,960,416)
    Common stock repurchase plan  (2,152,080)  (522,426)
    Net cash used in financing activities  (8,657,912)  (6,662,489)
             
    Net increase in cash  15,952,414   16,352,552 
    Cash, beginning of period  39,134,027   23,281,475 
    Restricted cash, beginning of period  500,000   - 
    Cash and restricted cash, end of period $55,586,441  $39,634,027 
    Restricted cash, end of period $-  $500,000 
    Cash, end of period $55,586,441  $39,134,027 

    (Continued)

      For the Year Ended
    March 31,
      2024  2023 
           
    Supplemental cash flow disclosures:        
    Cash paid during the period for:        
    Interest $667,063  $665,043 
    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  $4,252,778 
    Dividends accumulated on preferred stock $144,618  $144,618 
    Construction note payable $-  $10,237,032 
    Acquisition stock issuances $-  $- 
    Warrant issued for services $-  $- 


    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.

    Reconciliation of GAAP Net Loss to Adjusted EBITDA

      For the Three Months Ended
       31-Mar-24   31-Mar-23
            
    Reconciliation of GAAP Net Loss to Adjusted EBITDA       
    Net Loss $(5,332,881)  $(2,942,566)
    Provision for income taxes  (1,371,180)   (639,189)
    Depreciation and amortization  4,766,681    4,568,977 
    Interest expense, net  (163,088)   93,871 
    Employee stock awards  1,104,263    1,349,806 
    Stock grants  50,750    43,750 
    Common stock purchase options  50,412    - 
    Warrants issued for services  -    106,910 
    Other income, net  708,779    3,012 
    Contingent consideration fair value  (20,242)   (18,192)
    Other nonrecurring expenses(1)  2,372,888    1,248,865 
    Proxy contest fees(2)  -    - 
    Adjusted EBITDA $2,166,382   $3,815,244 


    (1) Other nonrecurring expenses consist of professional and legal fees that are nonrecurring in nature.
    (2) Includes proxy contest fees of $910,000 for Employee Stock Awards issued as a result of the Settlement Agreement as discussed in Note 17 of our consolidated financial statements.

      For the Year Ended
       31-Mar-24   31-Mar-23
            
    Reconciliation of GAAP Net Loss to Adjusted EBITDA       
    Net Loss $(15,565,200)  $(4,596,038)
    Provision for income taxes  (3,791,063)   730,238 
    Depreciation and amortization  18,813,897    17,519,949 
    Interest expense, net  446,473    632,062 
    Employee stock awards  4,082,108    5,807,779 
    Stock grants  203,000    179,094 
    Common stock purchase options  430,457    - 
    Warrants issued for services  -    213,819 
    Other income (expense), net  332,593    (25,181)
    Contingent consideration fair value  (80,540)   (63,764)
    Other nonrecurring expenses(1)  10,498,990    1,248,865 
    Proxy contest fees(2)  -    4,724,385 
    Adjusted EBITDA $15,370,715   $26,371,208 


    (1) Other nonrecurring expenses consist of professional and legal fees that are nonrecurring in nature.
    (2) Includes proxy contest fees of $910,000 for Employee Stock Awards issued as a result of the Settlement Agreement as discussed in Note 17 of our consolidated financial statements.

      For the Three Months Ended 
      31-Mar-24  31-Mar-23 
    Reconciliation of GAAP Net Loss to Fully Diluted EPS                
    Net Loss $(5,332,881) $(0.05) $(2,942,566) $(0.03)
    Depreciation and amortization  4,766,681   0.04   4,568,997   0.04 
    Interest expense, net  (163,088  -   93,871   - 
    Employee stock awards  1,104,263   0.01   1,349,806   0.01 
    Stock grants  50,750   -   43,750   - 
    Warrants issued for services  -   -   106,910   - 
    Contingent consideration fair value  (20,242)  -   (18,192)  - 
    Common stock purchase options  490,755   -   -   - 
    Nonrecurring expenses  2,372,888   0.02   1,248,865   0.01 
    Tax effect  (1,848,767)  (0.01)  (1,566,604  (0.01)
    Adjusted Net Income $1,420,359  $0.01  $2,884,837  $0.02 


      For the Year Ended   
      31-Mar-24  31-Mar-23 
    Reconciliation of GAAP Net Loss to Fully Diluted EPS                
    Net Loss $(15,565,200) $(0.13) $(4,596,038) $(0.04)
    Depreciation and amortization  18,813,897   0.16   17,519,949   0.15 
    Interest expense, net  446,473   -   632,062   0.01 
    Employee stock awards  4,082,108   0.03   5,807,779   0.05 
    Stock grants  203,000   -   179,094   - 
    Warrants issued for services  -   -   213,819   - 
    Contingent consideration fair value  (80,540)  -   (63,764)  - 
    Common stock purchase options  430,457   -   -   - 
    Nonrecurring expenses  10,498,990   0.09   5,973,250   0.05 
    Tax effect  (7,886,230)  (0.06)  (6,393,194)  (0.05)
    Adjusted Net Income $10,942,955  $0.09  $19,272,957  $0.16 


      For the Three Months Ended
    March 31,
      For the Years Ended
    March 31,
     
      2024  2023  2024  2023 
    Weighted average number of shares outstanding                
    Basic  118,775,757   117,874,162   118,249,486   117,177,885 
    Diluted  118,775,757   117,874,162   118,249,486   117,177,885 

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