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

    المصدر: Nasdaq GlobeNewswire / 14 فبراير 2022 15:05:00   America/Chicago

    Record Net Revenues of $64.7 Million Including Marketplace Revenue of $17.6 Million

    Diluted EPS of $0.07 Compared to ($0.04)

    Adjusted EPS of $0.14 Compared to $0.02

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

    SCOTTSDALE, AZ, Feb. 14, 2022 (GLOBE NEWSWIRE) -- AMMO, Inc. (Nasdaq: POWW, POWWP) (“AMMO” or the “Company”), a leading vertically integrated producer of high-performance ammunition and components and operator of GunBroker.com, the largest online marketplace serving the firearms and shooting sports industries, today announced results for its third quarter of fiscal 2022 ended December 31, 2021.

    Third Quarter Fiscal 2022 versus Third Quarter Fiscal 2021:

    • Net revenues increased 289% to $64.7 million
    • Gross profit margin was 34.8% compared to 20.1%
    • Net income was $9.1 million compared to a net loss of $1.9 million
    • Diluted EPS of $0.07 compared to ($0.04), a 275% increase; Adjusted EPS of $0.14 compared to $0.02, a 600% increase
    • Adjusted EBITDA was $20.1 million versus $2.4 million, a 752% increase
    • 100% of our production for 2022 has been sold

    Marketplace Metrics - Third Quarter Fiscal 2022

    • Revenue of $17.6 million
    • New user growth averaged 55,000 per month
    • Number of auctions increased 33.4% year-over-year
    • Average take rate increased to 5.4% versus 4.6% a year ago
    • Loyalty program revenue increased 8.8% year-over-year

    “We delivered another outstanding quarter reflecting strong execution by our team on key growth initiatives around innovation, expanding capacity, and leveraging the incredible power of our Marketplace platform,” said Fred Wagenhals, AMMO’s Chairman and Chief Executive Officer. “Total revenues were up 289% driven by broad-based gains across our business. Our profitability also continued to improve dramatically, fueled by our growing mix of Marketplace revenue and operational efficiencies stemming from our enhanced scale. Industry trends and the underlying demand for our products remain very strong and we are confident in our ability to continue delivering significant growth and improving margins. We also recently announced a $30 million share repurchase authorization, underscoring our positive outlook and commitment to driving shareholder value.”

    Third Quarter Fiscal 2022 Results

    Net revenues of $64.7 million in the third quarter increased 289% compared to the prior year period, reflecting the ongoing strength of demand for both our proprietary and standard ammunition products, as well as continued momentum in our marketplace platform, GunBroker.com. Ammunition sales totaled $44.1 million compared to $12.8 million in last year’s third quarter, an increase of 243%. Marketplace revenue was $17.6 million for the quarter with no comparable year-earlier period due to the timing of the acquisition at the end of April 2021.

    Gross profit was $22.5 million in the third quarter versus $3.3 million in the year-earlier period, driven by strong growth in Ammunition along with incremental revenue from our Marketplace segment. Gross profit margin was 34.8% in the third quarter, compared to 20.1% in last year’s third quarter. As we prepare for our new facility and planned capacity increases coming online in the second quarter of our next fiscal year, we have added additional labor and overhead expenses in this reported quarter in order to make for a swift transition, contributing to a temporary compression in our ammunition segment margin from our previous quarter, which we expect to benefit from in our next fiscal year.

    Operating expenses were $11.9 million for the third quarter of fiscal 2022, compared to $3.8 million for the third quarter of fiscal 2021, an increase of $8.1 million. The majority of the increase was related to $5.6 million in additional operating expenses attributable to GunBroker.com, including $3.3 million of non-cash incremental depreciation and amortization. As a percentage of sales, operating expenses declined by 18.8% year-over-year to 18.4% in the third quarter of fiscal 2022, driven by operating leverage, manufacturing scale and the mix shift in favor of higher margin Marketplace revenues.

    Operating income for the third quarter of fiscal 2022 was $10.6 million, compared to an operating loss of $0.4 million in last year’s third quarter.

    Net income was $9.1 million in the third quarter of fiscal 2022, compared to a net loss of $1.9 million in the third quarter of fiscal 2021. Net income available to common shareholders was $8.3 million or $0.07 per fully diluted share versus a net loss of $1.9 million and ($0.04) per fully diluted share in the third quarter of fiscal 2021. Adjusted net income per diluted share was $0.14 versus an adjusted net income per share of $0.02 in the prior year quarter, a 600% increase.

    Adjusted EBITDA was $20.1 million in the third quarter of fiscal 2022, compared to adjusted EBITDA of $2.4 million a year earlier, a 752% increase.

    Outlook

    We are reiterating our fiscal 2022 guidance and continue to expect revenue of at least $250 million and Adjusted EBITDA of $80 million for the year ending March 31, 2022.

    Conference Call

    Management will host a conference call to discuss the Company’s third fiscal quarter 2022 results at 5:00 p.m. ET today, February 14, 2022. 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/vXOuCpYRkxI5poLwtGtpG5?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. Third 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 

      December 31, 2021  March 31, 2021 
      (Unaudited)    
    ASSETS        
    Current Assets:        
    Cash and cash equivalents $27,414,571  $118,341,471 
    Accounts receivable, net  45,653,542   8,993,920 
    Due from related parties  15,657   15,657 
    Inventories  46,466,594   15,866,918 
    Prepaid expenses  3,923,778   2,402,366 
    Total Current Assets  123,474,142   145,620,332 
             
    Equipment, net  32,368,131   21,553,226 
             
    Other Assets:        
    Deposits  15,585,668   1,833,429 
    Licensing agreements, net  4,167   41,667 
    Patents, net  5,649,562   6,019,567 
    Other intangible assets, net  139,652,716   2,220,958 
    Goodwill  90,870,094   - 
    Right of use assets - operating leases  2,707,546   2,090,162 
    Deferred income tax asset  892,258     
    TOTAL ASSETS $411,204,284  $179,379,341 
             
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
    Current Liabilities:        
    Accounts payable $24,425,343  $4,371,974 
    Factoring liability  4,097,867   1,842,188 
    Accrued liabilities  5,114,768   3,462,785 
    Inventory credit facility  194,810   1,091,098 
    Current portion of operating lease liability  825,343   663,784 
    Current portion of note payable related party  669,463   625,147 
    Insurance premium note payable  285,718   41,517 
    Total Current Liabilities  35,613,312   12,098,493 
             
    Long-term Liabilities:        
    Contingent consideration payable  227,139   589,892 
    Notes payable related party, net of current portion  358,263   865,771 
    Note payable  -   4,000,000 
    Construction note payable, net of unamortized issuance costs  18,905   - 
    Operating lease liability, net of current portion  2,006,707   1,477,656 
    Deferred income tax liability  1,850,277   - 
    Total Liabilities  40,074,603   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 December 31, 2021  1,400   - 
    Common stock, $0.001 par value, 200,000,000 shares authorized 115,436,404 and 93,099,067 shares issued and outstanding at December 31, 2021 and March 31, 2021, respectively  115,437   93,100 
    Additional paid-in capital  382,015,310   202,073,968 
    Accumulated deficit  (11,002,466)  (41,819,539)
    Total Shareholders’ Equity  371,129,681   160,347,529 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $411,204,284  $179,379,341 

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

                 
      For the Three Months Ended
    December 31,    		  For the Nine Months Ended
    December 31,    		 
      2021  2020  2021  2020 
                 
    Net Revenues                
    Ammunition sales $44,069,473  $12,834,490  $112,629,655  $27,987,438 
    Marketplace revenue  17,596,769   -   46,646,051   - 
    Casing sales  3,022,944   3,785,754   10,891,897   10,305,648 
       64,689,186   16,620,244   170,167,603   38,293,086 
                     
    Cost of Revenues  42,166,320   13,278,338   102,457,775   32,590,149 
    Gross Profit  22,522,866   3,341,906   67,709,828   5,702,937 
                     
    Operating Expenses                
    Selling and marketing  1,510,574   542,271   4,226,817   1,244,323 
    Corporate general and administrative  3,737,455   1,639,052   10,976,288   3,805,230 
    Employee salaries and related expenses  2,939,095   1,172,765   7,943,076   3,329,511 
    Depreciation and amortization expense  3,725,921   416,625   10,044,994   1,242,809 
    Loss on purchase  -   -   -   1,000,000 
    Total operating expenses  11,913,045   3,770,713   33,191,175   10,621,873 
    Income/(Loss) from Operations  10,609,821   (428,807)  34,518,653   (4,918,936)
                     
    Other Expenses                
    Other income  363   461,000   21,788   274,400 
    Interest expense  (190,319)  (1,938,630)  (468,404)  (2,704,315)
    Total other expenses  (189,956)  (1,477,630)  (446,616)  (2,429,915)
                     
    Income/(Loss) before Income Taxes  10,419,865   (1,906,437)  34,072,037   (7,348,851)
                     
    Provision for Income Taxes  1,351,998   -   1,351,998   - 
                     
    Net Income/(Loss)  9,067,867   (1,906,437)  32,720,039   (7,348,851)
                     
    Preferred Stock Dividend  (782,582)  -   (1,902,966)  - 
                     
    Net Income/(Loss) Attributable to Common Stock Shareholders $8,285,285  $(1,906,437) $30,817,073  $(7,348,851)
                     
    Net Income/(Loss) per share                
    Basic $0.07  $(0.04) $0.28  $(0.15)
    Diluted $0.07  $(0.04) $0.27  $(0.15)
                     
    Weighted average number of shares outstanding                
    Basic  114,757,014   47,790,105   111,289,024   47,023,094 
    Diluted  116,717,500   47,790,105   113,350,998   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 Nine Months Ended 
     31-Dec-21 31-Dec-20 31-Dec-21 31-Dec-20 
             
    Reconciliation of GAAP net income to Adjusted EBITDA            
    Net Income (Loss)$9,067,867 $(1,906,437)$32,720,039 $(7,348,851)
    Provision for income taxes 1,351,998     1,351,998    
    Depreciation and amortization 4,623,355  1,224,130  12,778,103  3,588,966 
    Loss on purchase -  -  -  1,000,000 
    Excise taxes 3,982,221  1,201,841  10,317,110  2,707,534 
    Interest expense, net 190,319  1,938,630  468,404  2,704,315 
    Employee stock awards 1,045,125  240,853  2,898,250  716,589 
    Stock grants 65,098  65,455  197,110  213,130 
    Stock for services 4,200  87,500  4,200  87,500 
    Warrant issued for services 145,508  -  145,508  - 
    Other income, net (363) (461,000) (21,788) (274,400)
    Contingent consideration fair value (359,309) (30,748) (362,753) (88,106)
    Adjusted EBITDA$20,116,019 $2,360,224 $60,496,181 $3,306,677 


      For the Three Months Ended 
       31-Dec-21   31-Dec-20  
                    
    Reconciliation of GAAP net income to
    Fully Diluted EPS 
    Net Income (Loss) $9,067,867  $0.08   $(1,906,437) $(0.04)  
    Provision for income taxes   1,351,998   -       -   
    Depreciation and amortization  4,623,355   0.04    1,224,130   0.03   
    Loss on purchase  -   -    -   -   
    Interest expense, net  190,319   0.00    1,938,630   0.04   
    Employee stock awards  1,045,125   0.01    240,853   0.01   
    Stock grants  65,098   0.00    65,455   0.00   
    Stock for services  4,200   0.00    87,500   0.00   
    Warrants issued for services   145,508   -    -   -   
    Other income, net  (363)  (0.00)   (461,000)  (0.01)  
    Contingent consideration fair value  (359,309)     (30,748)    
    Adjusted Net Income $16,133,798  $0.14   $1,158,383  $0.02   
                     


      For the Nine Months Ended 
       31-Dec-21   31-Dec-20 
                   
    Reconciliation of GAAP net income to
    Fully Diluted EPS
    Net Income (Loss) $32,720,039  $0.29   $(7,348,851) $(0.16) 
    Provision for income taxes   1,351,998   -       -  
    Depreciation and amortization  12,778,103   0.11    3,588,966   0.08  
    Loss on purchase  -   -    1,000,000   0.02  
    Interest expense, net  468,404   0.00    2,704,315   0.06  
    Employee stock awards  2,898,250   0.03    716,589   0.02  
    Stock grants  197,110   0.00    213,130   0.00  
    Stock for services  4,200   0.00    87,500   0.00  
    Warrants issued for services   145,508   -    -   -  
    Other income, net  (21,788)  (0.00)   (274,400)  (0.01) 
    Contingent consideration fair value  (362,753)     (88,106)   
    Adjusted Net Income $50,179,071  $0.44   $3,306,677  $0.07  
                    


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