News Details

Record Net Revenues of $ 6 1 . 0 Million Including Marketplace Revenue of $ 16. 8 Million

Diluted EPS of $0. 1 1 Compared to ($0.0 5 )

Adjusted EPS of $0.17 Compared to ($0.01)

Raises Fiscal 2022 Outlook to $2 5 0 Million of Revenue and $ 8 0 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

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

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.