AMMO, Inc. (Nasdaq: POWW ) (“AMMO” or the “Company”), a premier
American ammunition and munition components manufacturer and
technology leader, is pleased to provide a link to the transcript
and summary excerpts of the Q&A session from the Company’s 2021
Third Quarter Earnings call held on February 16, 2021.
Replay:https://ammoinc.com/wp-content/uploads/2021/02/20210216-143495-ammoinc.mp3
Fiscal 2022 is positioned to be transformative
in AMMO’s opinion, with revenue and earnings per share increasing
significantly as the Company continues to deploy resources to
solidify Fiscal 2021’s trajectory.
Q&A session:
Moderator
Our first question comes from the line of Trey
Kidd with Raymond James. You may proceed with your question.
Trey Kidd
Hi, guys, congrats on the quarter. Just had a
two-part question here. Can you explain Adjusted EBITDA, and can
you also expand on the net loss?
Rob Wiley (CFO)
Yes. Thank you, Trey.
Adjusted EBITDA is an EBITDA calculation which
includes add-backs for other non-cash expenses or non-recurring
items. We ended the quarter with positive Adjusted EBITDA of
approximately $2.4 million and for the nine month period, positive
Adjusted EBITDA of $3.3 million.
Moving on to your question about our net loss,
we ended the quarter with net loss of approximately $1.9 million,
which included $2.4 million of non-cash expenses. If excluded, this
would translate into positive net income of approximately
$500,000.
I think this is a great question because it's
important for our shareholders to understand that when non-cash
expenses like depreciation, amortization and others are added back,
it resulted in positive net income of $500,000. Also, we expect
this number to grow rapidly in upcoming quarters.
Moderator
I think we're ready for the next question. Our
next question comes from the line of Lisa Kay, Private Investor.
You may proceed with your question.
Lisa Kay
Hi, guys. I wanted to congratulate you on the
great job you did this quarter. I also wanted to ask if you could
shed some light on the increased margin.
Rob Wiley (CFO)
Yes. Thank you, Lisa.
Our margins for the third quarter of the fiscal
year were approximately 20%. If non-cash depreciation and
amortization are added back, our margins for the quarter would be
approximately 25%. As a standalone, the margin for the quarter was
an 88% increase quarter-over-quarter. Our margins are dramatically
increasing as our sales are increasing.
Moderator
Our next question comes from the line of Gene
Webb with Paulson Investment Company. You may proceed with your
question.
Gene Webb
Hi, guys. Again, congrats on the great quarter
for you and all the team. You've done a great job of growing this
company.
My question is: when do you expect the
GunBrokers.com transaction to close, and what that means to us
going forward for revenues? Thank you.
Rob Wiley (CFO)
Thank you, Gene.
Right now, we're working diligently through the
definitive agreement and we have antitrust laws we have to abide
by. Our working close date as of now is March 31, but we are
working hard to close the transaction prior to our year end. Upon
closing the transaction, this will be highly accretive for us,
which will allow us to generate significant free cash flow and
positive earnings per share.
Moderator
Our next question comes from the line of Len
Combs, Private Investor. You may proceed with your question.
Len Combs
Hi. Thanks. Great job, guys.
You previously went over combining your two
manufacturing locations into one state-of-the-art plant, what's the
timing on that, and again, the potential cost?
Rob Wiley
Thanks, Len.
We anticipate moving into our new facility by
May of 2022. More importantly, we estimate annual cost savings of
approximately a million dollars.
Len Combs
Great. Thank you.
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.
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:Rob Wiley,
CFOAMMO, Inc.Phone: (480) 947-0001IR@ammo-inc.com
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