Second Quarter Fiscal 2024 vs. Second Quarter Fiscal 2023
● | Net Revenues of | |
● | Gross profit margin of approximately 24.1% compared to 26.6% | |
● | Adjusted EBITDA of | |
● | Net loss of | |
● | Diluted EPS of ( | |
● | Adjusted EPS of | |
GunBroker.com “Marketplace” Metrics – Second Quarter 2024
● | Marketplace revenue of approximately | |
● | New user growth averaged approximately 26,000 per month | |
● | Average take rate increased to 6.0% compared to 5.3% in fiscal 2023 | |
“Events in October have completely flipped the market on its head. We see strong demand for our brass casings and even stronger demand internationally. While we have had delays in bringing the factory on-line, we continue to make investments to secure future predictability, profitability, and capacity. The fundamentals of the industry are improving. Gunbroker.com is starting to see the payoff of payment processing capabilities on the platform as we continue to transition GunBroker.com from an auction house to an Amazon-like model for firearms and accessories,”
Second Quarter 2024 Results
The margins in our marketplace segment remain strong and although our gross margins have decreased in our ammunition segment due to the aforementioned operational struggles, we are optimistic on the future performance of this segment. While challenges continue in the market today, the demand for our brass casings remain robust. We are beginning to see positive trends in the demand for our ammunition product and we are seeing the activity on GunBoker.com increase as we enter into our third fiscal quarter.
We are positioned to capitalize on these positive trends given our strong financial position as we have reported
We ended the first quarter with total revenues of approximately
Cost of goods sold was approximately
Our gross margin for the quarter was
There were approximately
For the quarter, we recorded Adjusted EBITDA of approximately
This resulted in a net loss per share of (
We continue to push forward on the improvements to our marketplace, GunBroker.com. We have formally launched OutdoorPay, our payment processing platform, and are in the process of onboarding our userbase to this platform, which will enable us to launch our cart platform soon thereafter.
We repurchased approximately 198,000 shares of our common stock under our repurchase plan in the reported quarter bringing us to just over 1.2 million shares repurchased in total under the plan.
Conference Call
Management will host a conference call at
Participants are asked to preregister for the call at the following link: https://dpregister.com/sreg/10183047/fa923d6953.
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 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the
The conference call will also be available through a live webcast at the following link: which is also available through the company’s website.
https://event.choruscall.com/mediaframe/webcast.html?webcastid=kAqERLpp,
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. Second Quarter 2024 Conference Call.”
About
With its corporate offices headquartered in
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:
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 49,564,868 | $ | 39,134,027 | ||||
Accounts receivable, net | 23,030,851 | 29,346,380 | ||||||
Inventories | 53,014,205 | 54,344,819 | ||||||
Prepaid expenses | 3,920,007 | 5,126,667 | ||||||
Current portion of restricted cash | - | 500,000 | ||||||
Total Current Assets | 129,529,931 | 128,451,893 | ||||||
Equipment, net | 55,821,414 | 55,963,255 | ||||||
Other Assets: | ||||||||
Deposits | 3,189,518 | 7,028,947 | ||||||
Patents, net | 4,786,022 | 5,032,754 | ||||||
Other intangible assets, net | 117,440,022 | 123,726,810 | ||||||
90,870,094 | 90,870,094 | |||||||
Right of use assets - operating leases | 1,017,982 | 1,261,634 | ||||||
TOTAL ASSETS | $ | 402,654,983 | $ | 412,335,387 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 19,598,548 | $ | 18,079,397 | ||||
Accrued liabilities | 6,250,164 | 4,353,354 | ||||||
Current portion of operating lease liability | 370,980 | 470,734 | ||||||
Note payable related party | - | 180,850 | ||||||
Current portion of construction note payable | 265,977 | 260,429 | ||||||
Insurance premium note payable | 1,157,745 | 2,118,635 | ||||||
Total Current Liabilities | 27,643,414 | 25,463,399 | ||||||
Long-term Liabilities: | ||||||||
Contingent consideration payable | 99,302 | 140,378 | ||||||
Construction note payable, net of unamortized issuance costs | 10,830,663 | 10,922,443 | ||||||
Operating lease liability, net of current portion | 744,616 | 903,490 | ||||||
Deferred income tax liability | 349,327 | 2,309,592 | ||||||
Total Liabilities | 39,667,322 | 39,739,302 | ||||||
Shareholders’ Equity: | ||||||||
Series A cumulative perpetual preferred Stock 8.75%, ( | 1,400 | 1,400 | ||||||
Common stock, | 118,461 | 118,294 | ||||||
Additional paid-in capital | 394,331,516 | 391,940,374 | ||||||
Accumulated deficit | (29,086,926 | ) | (18,941,825 | ) | ||||
(2,376,790 | ) | (522,158 | ) | |||||
Total Shareholders’ Equity | 362,987,661 | 372,596,085 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 402,654,983 | $ | 412,335,387 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net Revenues | ||||||||||||||||
Ammunition sales(1) | $ | 15,516,589 | $ | 29,386,969 | $ | 29,622,618 | $ | 70,356,852 | ||||||||
Marketplace revenue | 12,474,716 | 14,562,694 | 26,386,918 | 31,067,640 | ||||||||||||
Casing sales | 6,381,081 | 4,338,896 | 12,617,425 | 7,620,093 | ||||||||||||
34,372,386 | 48,288,559 | 68,626,961 | 109,044,585 | |||||||||||||
Cost of Revenues | 26,084,120 | 35,452,850 | 46,314,155 | 78,073,214 | ||||||||||||
Gross Profit | 8,288,266 | 12,835,709 | 22,312,806 | 30,971,371 | ||||||||||||
Operating Expenses | ||||||||||||||||
Selling and marketing | 289,952 | 1,068,501 | 585,533 | 2,976,671 | ||||||||||||
Corporate general and administrative | 7,855,624 | 5,055,699 | 15,803,187 | 10,084,996 | ||||||||||||
Employee salaries and related expenses | 5,590,035 | 3,923,700 | 9,706,315 | 6,708,798 | ||||||||||||
Depreciation and amortization expense | 3,371,802 | 3,291,322 | 6,715,845 | 6,641,678 | ||||||||||||
Total operating expenses | 17,107,413 | 13,339,222 | 32,810,880 | 26,412,143 | ||||||||||||
Income/(Loss) from Operations | (8,819,147 | ) | (503,513 | ) | (10,498,074 | ) | 4,559,228 | |||||||||
Other Income/(Expenses) | ||||||||||||||||
Other income | (321,341 | ) | 5,098 | 371,610 | 198,596 | |||||||||||
Interest expense | (212,314 | ) | (97,265 | ) | (416,515 | ) | (217,752 | ) | ||||||||
Total other income/(expense) | (533,655 | ) | (92,167 | ) | (44,905 | ) | (19,156 | ) | ||||||||
Income/(Loss) before Income Taxes | (9,352,802 | ) | (595,680 | ) | (10,542,979 | ) | 4,540,072 | |||||||||
Provision for Income Taxes | (1,857,505 | ) | 207,827 | (1,954,649 | ) | 2,090,552 | ||||||||||
Net Income/(Loss) | (7,495,297 | ) | (803,507 | ) | (8,588,330 | ) | 2,449,520 | |||||||||
Preferred Stock Dividend | (782,639 | ) | (782,639 | ) | (1,556,771 | ) | (1,556,771 | ) | ||||||||
Net Income/(Loss) Attributable to Common Stock Shareholders | $ | (8,277,936 | ) | $ | (1,586,146 | ) | $ | (10,145,101 | ) | $ | 892,749 | |||||
Net Income/(Loss) per share | ||||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.01 | |||||
Diluted | $ | (0.07 | ) | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.01 | |||||
Weighted average number of shares outstanding | ||||||||||||||||
Basic | 118,167,228 | 116,927,607 | 117,941,755 | 116,744,972 | ||||||||||||
Diluted | 118,167,228 | 116,927,607 | 117,941,755 | 118,063,619 |
(1 | ) | Included in revenue for the three months ended |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
For the Six Months Ended | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net Income/(Loss) | $ | (8,588,330 | ) | $ | 2,449,520 | |||
Adjustments to reconcile Net Income/(Loss) to | ||||||||
Depreciation and amortization | 9,293,566 | 8,594,968 | ||||||
Debt discount amortization | 41,626 | 41,626 | ||||||
Employee stock awards | 2,290,746 | 2,351,438 | ||||||
Stock grants | 101,500 | 91,594 | ||||||
Contingent consideration payable fair value | (41,076 | ) | (25,246 | ) | ||||
Allowance for doubtful accounts | 1,047,587 | 934,135 | ||||||
Reduction in right of use asset | 243,652 | 398,033 | ||||||
Deferred income taxes | (1,960,265 | ) | 817,310 | |||||
Changes in Current Assets and Liabilities | ||||||||
Accounts receivable | 5,267,942 | 12,590,905 | ||||||
Due from related parties | - | 9,000 | ||||||
Inventories | 1,330,614 | (9,590,856 | ) | |||||
Prepaid expenses | 2,262,859 | 1,130,589 | ||||||
Deposits | 3,839,429 | 2,633,655 | ||||||
Accounts payable | 1,519,151 | (3,017,415 | ) | |||||
Accrued liabilities | 1,760,716 | (1,295,829 | ) | |||||
Operating lease liability | (258,628 | ) | (403,184 | ) | ||||
Net cash provided by operating activities | 18,151,089 | 17,710,243 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of equipment | (2,618,205 | ) | (8,405,180 | ) | ||||
Net cash used in investing activities | (2,618,205 | ) | (8,405,180 | ) | ||||
Cash flow from financing activities: | ||||||||
Proceeds from factoring liability | 26,047,370 | 45,600,000 | ||||||
Payments on factoring liability | (26,047,370 | ) | (45,291,282 | ) | ||||
Payments on inventory facility, net | - | (825,675 | ) | |||||
Payments on note payable - related party | (180,850 | ) | (334,374 | ) | ||||
Payments on insurance premium note payment | (2,017,089 | ) | (1,334,183 | ) | ||||
Proceeds from construction note payable | - | 1,000,000 | ||||||
Payments on construction note payable | (127,858 | ) | - | |||||
Preferred stock dividends paid | (1,420,677 | ) | (1,420,727 | ) | ||||
Common stock repurchase plan | (1,855,569 | ) | - | |||||
Common stock issued for exercised warrants | - | 24,242 | ||||||
Net cash used in financing activities | (5,602,043 | ) | (2,581,999 | ) | ||||
Net increase in cash | 9,930,841 | 6,723,064 | ||||||
Restricted cash, beginning of period | 500,000 | - | ||||||
Cash, beginning of period | 39,134,027 | 23,281,475 | ||||||
Cash and restricted cash, end of period | $ | 49,564,868 | $ | 30,004,539 | ||||
Restricted cash, end of period | $ | - | $ | 1,000,000 | ||||
Cash, end of period | $ | 49,564,868 | $ | 29,004,539 |
(Continued)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
For the Six Months Ended | ||||||||
2023 | 2022 | |||||||
Supplemental cash flow disclosures: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 375,885 | $ | 141,131 | ||||
Income taxes | $ | - | $ | 1,302,811 | ||||
Non-cash investing and financing activities: | ||||||||
Insurance premium note payment | $ | 1,056,199 | $ | 2,035,519 | ||||
Dividends accumulated on preferred stock | $ | 136,094 | $ | 136,044 | ||||
Construction note payable | $ | - | $ | 9,804,580 |
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
Reconciliation of GAAP net income to Adjusted EBITDA
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
Reconciliation of GAAP net income to Adjusted EBITDA | ||||||||||||||||
Net Income (Loss) | $ | (7,495,297 | ) | $ | (803,507 | ) | $ | (8,588,330 | ) | $ | 2,449,520 | |||||
Provision for Income Taxes | (1,857,505 | ) | 207,827 | (1,954,649 | ) | 2,090,552 | ||||||||||
Depreciation and amortization | 4,673,479 | 4,294,845 | 9,293,566 | 8,594,968 | ||||||||||||
Interest expense, net | 212,314 | 97,265 | 416,515 | 217,752 | ||||||||||||
Employee stock awards | 1,467,949 | 1,176,375 | 2,290,746 | 2,351,438 | ||||||||||||
Stock grants | 50,750 | 43,750 | 101,500 | 91,594 | ||||||||||||
Other (income) expense, net | 321,341 | (5,098 | ) | (371,610 | ) | (198,596 | ) | |||||||||
Contingent consideration fair value | (20,052 | ) | (23,944 | ) | (41,076 | ) | (25,246 | ) | ||||||||
Other nonrecurring expenses(1) | 3,867,692 | 741,131 | 6,627,418 | 741,131 | ||||||||||||
Adjusted EBITDA | $ | 1,220,671 | $ | 5,728,644 | $ | 7,774,080 | $ | 16,313,113 |
1 | ) | For the three and six months ended |
Reconciliation of GAAP net income to Fully Diluted EPS
For the Three Months Ended | ||||||||||||||||
Reconciliation of GAAP net income to Fully Diluted EPS | ||||||||||||||||
Net Income/(Loss) | $ | (7,495,297 | ) | $ | (0.06 | ) | $ | (803,507 | ) | $ | (0.01 | ) | ||||
Depreciation and amortization | 4,673,479 | 0.04 | 4,294,845 | 0.04 | ||||||||||||
Interest expense, net | 212,314 | - | 97,265 | - | ||||||||||||
Employee stock awards | 1,467,949 | 0.01 | 1,176,375 | 0.01 | ||||||||||||
Stock grants | 50,750 | - | 43,750 | - | ||||||||||||
Contingent consideration fair value | (20,052 | ) | - | (23,944 | ) | - | ||||||||||
Nonrecurring expenses | 3,867,692 | 0.03 | 741,131 | 0.01 | ||||||||||||
Tax effect(1) | (2,319,673 | ) | (0.02 | ) | (1,360,309 | ) | (0.01 | ) | ||||||||
Adjusted Net Income | $ | 437,161 | $ | - | $ | (803,507 | ) | $ | 0.04 |
For the Six Months Ended | ||||||||||||||||
Reconciliation of GAAP net income to Fully Diluted EPS | ||||||||||||||||
Net Income/(Loss) | $ | (8,588,330 | ) | $ | (0.07 | ) | $ | 2,449,520 | $ | 0.02 | ||||||
Depreciation and amortization | 9,293,566 | 0.08 | 8,594,968 | 0.07 | ||||||||||||
Interest expense, net | 416,515 | - | 217,752 | - | ||||||||||||
Employee stock awards | 2,290,746 | 0.02 | 2,351,438 | 0.02 | ||||||||||||
Stock grants | 101,500 | - | 91,594 | - | ||||||||||||
Contingent consideration fair value | (41,076 | ) | - | (25,246 | ) | - | ||||||||||
Nonrecurring expenses | 6,627,418 | 0.06 | 741,131 | 0.01 | ||||||||||||
Tax effect(1) | (4,329,437 | ) | (0.04 | ) | (2,531,771 | ) | (0.02 | ) | ||||||||
Adjusted Net Income | $ | 5,770,902 | $ | 0.05 | $ | 11,889,386 | $ | 0.10 |
(1 | ) | Tax effects are estimated by applying the statutory rate to each applicable Non-GAAP adjustment. |
For the Three Months Ended | For the Six Months Ended | |||||||||
2023 | 2022 | 2023 | 2022 | |||||||
Weighted average number of shares outstanding | ||||||||||
Basic | 118,167,228 | 116,927,607 | 117,941,755 | 116,744,972 | ||||||
Diluted | 118,167,228 | 116,927,607 | 117,941,755 | 118,063,619 | ||||||
Source:
2023 GlobeNewswire, Inc., source