Fiscal Year 2024 Overview
● | Net Revenues of | |
● | Gross profit margin of approximately 29.4%. | |
● | Adjusted EBITDA of | |
● | Net loss of | |
● | Diluted EPS of ( | |
● | Adjusted EPS of | |
GunBroker.com “Marketplace” Metrics – Fiscal Year 2024
● | Marketplace revenue of approximately | |
● | 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 | |
● | Gross profit margin of approximately 23.3%. | |
● | Adjusted EBITDA of | |
● | Net loss of | |
● | Diluted EPS of ( | |
● | Adjusted EPS of | |
GunBroker.com “Marketplace” Metrics – Fourth Quarter 2024
● | Marketplace revenue of approximately | |
● | New user growth averaged 32,000 per month. | |
● | Average take rate increased to 6.0% | |
“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,”
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
Cost of goods sold was approximately
Our gross margin for the quarter was
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
There was approximately
For the quarter, we recorded Adjusted EBITDA of approximately
We ended the quarter with a Net Loss of approximately
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
As of now, we believe we are financially well positioned into Fiscal 2025 given our strong net working capital position. We reported
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/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
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
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 | ||||||
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%, ( | 1,400 | 1,400 | ||||||
Common stock, | 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 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended | For the Years Ended | ||||||||||||||||||||||
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 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
For the Year Ended | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net Loss | $ | (15,565,200 | ) | $ | (4,596,038 | ) | ||
Adjustments to reconcile Net Loss to | ||||||||
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 | ||||||||
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
Reconciliation of GAAP Net Loss to Adjusted EBITDA
For the Three Months Ended | |||||||||
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
For the Year Ended | |||||||||
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
For the Three Months Ended | ||||||||||||||||
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 | ||||||||||||||||||
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 | For the Years Ended | |||||||||||||||
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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