AMMO, Inc. (Nasdaq: POWW, POWWP) (“AMMO” or the “Company”), the
owner of GunBroker.com, the largest online marketplace serving the
firearms and shooting sports industries, and a leading vertically
integrated producer of high-performance ammunition and components,
today reported results for its third quarter of fiscal 2023, ended
December 31, 2023.
Third Quarter Fiscal 2023 vs. Third
Quarter Fiscal 2022
|
● |
Net Revenues decreased 40% to $38.7 million. |
|
● |
Gross profit margin of approximately 32.3%. |
|
● |
Historical Adjusted EBITDA of $7.9 million compared to
$20.1million. |
|
● |
Updated Adjusted EBITDA of $4.8 million compared to $10.7
million. |
|
● |
Net loss of ($4.1) million, compared to net income of $9.1
million. |
|
● |
Diluted EPS of ($0.04), compared to $0.07. |
|
● |
Historical Adjusted EPS of $0.05, compared to $0.14. |
|
● |
Updated Adjusted EPS of $0.05 compared to $0.08 |
GunBroker.com “Marketplace” Metrics –
Third Quarter 2023
|
● |
Marketplace revenue of approximately $15.4 million. |
|
● |
New user growth averaged 40,000 per month. |
|
● |
Average take rate increased to 5.7% compared to 5.4% in fiscal
2022. |
Fred Wagenhals, AMMO’s Chairman & CEO,
commented that “[t]he entire ammunition market is currently facing
significant headwinds primarily due to the current inflationary and
recessionary drivers impacting the consumer. Despite these
near-term challenges, the management team and AMMO Board remains
excited about the Company’s prospects in both the short and long
term. Our confidence is supported by the continued ramp up in the
production capacity at our state-of-the-art facility in Manitowoc,
along with the continuing rollout of enhancements to our
Gunbroker.com Marketplace site.
“These opportunities, coupled with the exciting
addition of our newest executive management team member, Jared
Smith, President & COO, supports the high level of confidence I
have in AMMO’s future. Jared’s experience, the wealth of his
relationships, intellect and drive are all valuable assets for our
organization as we chart our path forward to a bright future
through the balance of this fiscal year and beyond,” Mr. Wagenhals
concluded.
Third Quarter 2023 Results
We ended our third quarter with total revenues
of approximately $38.7M in comparison to approximately $64.7M in
the prior year quarter - this was a decrease of 40% from the prior
year quarter. The decrease in revenue was mainly attributable to
our ammunition segment and the inflationary impacts that are
currently affecting the market. These market conditions also
impacted the revenue of our Marketplace segment effecting a 12%
decrease from the prior year period. However, operating performance
of our Marketplace, GunBroker.com still remained strong and
although our top line revenues waivered, our margins are still
comparable to historical performance.
We continue to see margin compression on our
ammunition segment as we have seen further pricing pressure as the
US commercial markets continue to slow from the inflationary impact
and approaching global recession. The reduction in sales, higher
commodity and freight costs along with increased operating expenses
such as, the remainder of the one-time legal expenses related to
the proxy contention, stock compensation, corporate insurance and
payroll have increased our cost of revenues and operating expenses
resulting in a net loss for the period.
To address these increases and as discussed
earlier in the call we plan to recoup cash tied up in our inventory
in our quarter ending in March and pivot the direction of our
manufacturing operations to more profitable opportunities such as
premium rifle brass. Additionally, we continue to push forward on
the improvements to our marketplace, GunBroker.com, and expect the
payment suite and cart platform to launch in the first half of our
next fiscal year, which should drive growth and profitability to
the site.
Our Cost of Revenues was approximately $26.2M
for the quarter compared to $42.2M in the comparable prior year
quarter. This decrease was related to reduced sales volume and
increased commodity costs. Accordingly, this resulted in a gross
margin of $12.5M compared to $22.5M. As our sales volume fell in
the reported quarter, we anticipate another quarter of margin
compression due to these increased costs, but expect to swiftly
transition to more profitable sales activity starting in the first
quarter of our next fiscal year.
Our balance sheet remains strong with our total
current liabilities decreasing by 21% since our year end and our
total current assets at virtually unchanged.
We are revising our Adjusted EBITDA and Adjusted
Net Income Per Share calculations moving forward, which we believe
will provide the market with a more accurate representation of our
operations. To transition to our new calculations, we are providing
our historical Adjusted EBITDA and Adjusted Net Income Per Share
calculations and as well the calculations you can expect to see
moving forward and incorporated into our updated guidance. For the
quarter, using our historical Adjusted EBITDA and Adjusted EPS
calculation we recorded adjusted EBITDA of approximately $7.9M
busing, compared to prior year quarter Adjusted EBITDA of $20.1M.
Using our Updated Adjusted EBITDA calculation, we recorded $4.8M in
Adjusted EBITDA for the period compared to $10.7M.
This resulted in a loss per share of $(0.04) or
Historical Adjusted Net Income per Share of $0.05 in comparison to
$0.14 in the prior year period. Using our updated calculation,
Adjusted Net Income per Share was $0.05 in comparison to Adjusted
Net Income per Share of $0.08 in the prior year period.
Outlook
Due to the decline is sales activity due to the
market shift, we are reducing our guidance for our 2023 fiscal
year. We are updating our guidance to revenues of $185 million,
adjusted EBITDA using our new calculation of $22 million, and
EBITDA of $17 million.
Conference Call
Management will host a conference call to
discuss the Company’s Fiscal second quarter 2023 results at 5:00
p.m. ET today, February 14th, 2023.
Investors interested in participating in the
live conference call or audio-only webcast, may join by dialing
1-866-777-2509 (domestic), 1-412-317-5413 (international), or via
webcast at
https://event.choruscall.com/mediaframe/webcast.html?webcastid=yW2dwlnP.
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. Third Quarter 2023 Conference
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 specialty rounds for military use via government programs. 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 Reports filed on
Form 8-K.
Investor Contact:CoreIRPhone: (212)
655-0924IR@ammo-inc.com
Source: AMMO, Inc.
AMMO, Inc.CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
December 31, 2022 |
|
|
March 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
27,093,614 |
|
|
$ |
23,281,475 |
|
Accounts receivable, net |
|
|
30,419,611 |
|
|
|
43,955,084 |
|
Due from related parties |
|
|
- |
|
|
|
15,000 |
|
Inventories |
|
|
67,145,401 |
|
|
|
59,016,152 |
|
Prepaid expenses |
|
|
3,838,968 |
|
|
|
3,423,925 |
|
Current portion of restricted cash |
|
|
500,000 |
|
|
|
- |
|
Total Current Assets |
|
|
128,997,594 |
|
|
|
129,691,636 |
|
|
|
|
|
|
|
|
|
|
Property and
Equipment, net |
|
|
55,290,328 |
|
|
|
37,637,806 |
|
|
|
|
|
|
|
|
|
|
Other
Assets: |
|
|
|
|
|
|
|
|
Deposits |
|
|
9,656,907 |
|
|
|
11,360,322 |
|
Patents, net |
|
|
5,156,120 |
|
|
|
5,526,218 |
|
Other intangible assets, net |
|
|
126,870,205 |
|
|
|
136,300,387 |
|
Goodwill |
|
|
90,870,094 |
|
|
|
90,870,094 |
|
Right of use assets - operating leases |
|
|
1,378,711 |
|
|
|
2,791,850 |
|
TOTAL
ASSETS |
|
$ |
418,219,959 |
|
|
$ |
414,178,313 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
20,964,686 |
|
|
$ |
26,817,083 |
|
Factoring liability |
|
|
1,678,450 |
|
|
|
485,671 |
|
Accrued liabilities |
|
|
4,298,739 |
|
|
|
6,178,814 |
|
Inventory credit facility |
|
|
- |
|
|
|
825,675 |
|
Current portion of operating lease liability |
|
|
518,778 |
|
|
|
831,429 |
|
Current portion of note payable related party |
|
|
358,263 |
|
|
|
684,639 |
|
Current portion of construction note payable |
|
|
258,430 |
|
|
|
- |
|
Insurance premium note payable |
|
|
119,449 |
|
|
|
- |
|
Total Current Liabilities |
|
|
28,196,795 |
|
|
|
35,823,311 |
|
|
|
|
|
|
|
|
|
|
Long-term
Liabilities: |
|
|
|
|
|
|
|
|
Contingent consideration payable |
|
|
158,570 |
|
|
|
204,142 |
|
Notes payable related party, net of current portion |
|
|
- |
|
|
|
181,132 |
|
Construction note payable, net of unamortized issuance costs |
|
|
10,967,947 |
|
|
|
38,330 |
|
Operating lease liability, net of current portion |
|
|
980,009 |
|
|
|
2,091,351 |
|
Deferred income tax liability |
|
|
2,819,962 |
|
|
|
1,536,481 |
|
Total Liabilities |
|
|
43,123,283 |
|
|
|
39,874,747 |
|
|
|
|
|
|
|
|
|
|
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, 2022 and March 31, 2022, respectively |
|
|
1,400 |
|
|
|
1,400 |
|
Common stock, $0.001 par value, 200,000,000 shares authorized |
|
|
|
|
|
|
|
|
118,044,417 and 116,485,747 shares issued and 117,894,417 and |
|
|
|
|
|
|
|
|
116,485,747 outstanding at December 31, 2022 and March 31, 2022,
respectively |
|
|
117,894 |
|
|
|
116,487 |
|
Additional paid-in capital |
|
|
390,501,876 |
|
|
|
385,426,431 |
|
Accumulated deficit |
|
|
(15,233,633 |
) |
|
|
(11,240,752 |
) |
Treasury Stock |
|
|
(290,861 |
) |
|
|
- |
|
Total Shareholders’ Equity |
|
|
375,096,676 |
|
|
|
374,303,566 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
418,219,959 |
|
|
$ |
414,178,313 |
|
AMMO, Inc.CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
For the Three Months EndedDecember
31, |
|
|
For the Nine Months EndedDecember
31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammunition sales |
|
$ |
20,250,965 |
|
|
$ |
44,069,473 |
|
|
$ |
90,607,817 |
|
|
$ |
112,629,655 |
|
Marketplace revenue |
|
|
15,419,202 |
|
|
|
17,596,769 |
|
|
|
46,486,842 |
|
|
|
46,646,051 |
|
Casing sales |
|
|
3,041,327 |
|
|
|
3,022,944 |
|
|
|
10,661,420 |
|
|
|
10,891,897 |
|
|
|
|
38,711,494 |
|
|
|
64,689,186 |
|
|
|
147,756,079 |
|
|
|
170,167,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
|
26,184,315 |
|
|
|
42,166,320 |
|
|
|
104,257,529 |
|
|
|
102,457,775 |
|
Gross Profit |
|
|
12,527,179 |
|
|
|
22,522,866 |
|
|
|
43,498,550 |
|
|
|
67,709,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
1,010,543 |
|
|
|
1,510,574 |
|
|
|
3,987,214 |
|
|
|
4,226,817 |
|
Corporate general and administrative |
|
|
7,835,201 |
|
|
|
3,737,455 |
|
|
|
17,920,197 |
|
|
|
10,976,288 |
|
Employee salaries and related expenses |
|
|
4,705,636 |
|
|
|
2,939,095 |
|
|
|
11,414,434 |
|
|
|
7,943,076 |
|
Depreciation and amortization expense |
|
|
3,309,074 |
|
|
|
3,725,921 |
|
|
|
9,950,752 |
|
|
|
10,044,994 |
|
Total operating expenses |
|
|
16,860,454 |
|
|
|
11,913,045 |
|
|
|
43,272,597 |
|
|
|
33,191,175 |
|
Income/(Loss) from
Operations |
|
|
(4,333,275 |
) |
|
|
10,609,821 |
|
|
|
225,953 |
|
|
|
34,518,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense) |
|
|
(170,403 |
) |
|
|
363 |
|
|
|
28,193 |
|
|
|
21,788 |
|
Interest expense |
|
|
(320,439 |
) |
|
|
(190,319 |
) |
|
|
(538,191 |
) |
|
|
(468,404 |
) |
Total other expense |
|
|
(490,842 |
) |
|
|
(189,956 |
) |
|
|
(509,998 |
) |
|
|
(446,616 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before Income
Taxes |
|
|
(4,824,117 |
) |
|
|
10,419,865 |
|
|
|
(284,045 |
) |
|
|
34,072,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes |
|
|
(721,125 |
) |
|
|
1,351,998 |
|
|
|
1,369,427 |
|
|
|
1,351,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss) |
|
|
(4,102,992 |
) |
|
|
9,067,867 |
|
|
|
(1,653,472 |
) |
|
|
32,720,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock Dividend |
|
|
(782,639 |
) |
|
|
(782,582 |
) |
|
|
(2,339,409 |
) |
|
|
(1,902,966 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss) Attributable
to Common Stock Shareholders |
|
$ |
(4,885,631 |
) |
|
$ |
8,285,285 |
|
|
$ |
(3,992,881 |
) |
|
$ |
30,817,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.04 |
) |
|
$ |
0.07 |
|
|
$ |
(0.03 |
) |
|
$ |
0.28 |
|
Diluted |
|
$ |
(0.04 |
) |
|
$ |
0.07 |
|
|
$ |
(0.03 |
) |
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
117,348,511 |
|
|
|
114,757,014 |
|
|
|
116,950,013 |
|
|
|
111,289,024 |
|
Diluted |
|
|
117,348,511 |
|
|
|
116,717,500 |
|
|
|
116,950,013 |
|
|
|
113,350,998 |
|
AMMO, Inc.CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOW(Unaudited)
|
|
For the Nine Months Ended December
31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net Income/(Loss) |
|
|
(1,653,472 |
) |
|
|
32,720,039 |
|
Adjustments to reconcile Net Income/(Loss) to Net Cash provided by
(used in) operations: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
12,950,972 |
|
|
|
12,778,103 |
|
Debt discount amortization |
|
|
62,440 |
|
|
|
18,905 |
|
Employee stock awards |
|
|
4,457,973 |
|
|
|
2,898,250 |
|
Stock grants |
|
|
135,344 |
|
|
|
197,110 |
|
Stock for services |
|
|
- |
|
|
|
4,200 |
|
Warrants issued for services |
|
|
106,909 |
|
|
|
148,508 |
|
Contingent consideration payable fair value |
|
|
(45,572 |
) |
|
|
(362,753 |
) |
Allowance for doubtful accounts |
|
|
1,327,419 |
|
|
|
1,097,985 |
|
(Gain) on disposal of assets |
|
|
- |
|
|
|
(12,044 |
) |
Reduction in right of use asset |
|
|
512,063 |
|
|
|
496,469 |
|
Deferred income taxes |
|
|
1,283,481 |
|
|
|
958,019 |
|
Changes in Current Assets and Liabilities |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
12,208,054 |
|
|
|
(20,755,245 |
) |
Due to (from) related parties |
|
|
15,000 |
|
|
|
- |
|
Inventories |
|
|
(8,129,249 |
) |
|
|
(30,599,676 |
) |
Prepaid expenses |
|
|
1,941,206 |
|
|
|
1,569,928 |
|
Deposits |
|
|
1,678,415 |
|
|
|
(13,051,850 |
) |
Accounts payable |
|
|
(5,852,397 |
) |
|
|
7,538,451 |
|
Accrued liabilities |
|
|
(2,044,248 |
) |
|
|
1,310,641 |
|
Operating lease liability |
|
|
(522,917 |
) |
|
|
(514,872 |
) |
Net cash provided by (used in) operating activities |
|
|
18,431,421 |
|
|
|
(3,559,832 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchase of equipment |
|
|
(10,566,182 |
) |
|
|
(50,517,840 |
) |
Gemini acquisition |
|
|
- |
|
|
|
(12,868,156 |
) |
Proceeds from disposal of assets |
|
|
- |
|
|
|
59,800 |
|
Net cash used in investing activities |
|
|
(10,566,182 |
) |
|
|
(63,326,196 |
) |
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
Payments on inventory facility, net |
|
|
(825,675 |
) |
|
|
(896,287 |
) |
Proceeds from factoring liability |
|
|
57,300,000 |
|
|
|
86,465,962 |
|
Payments on factoring liability |
|
|
(56,107,221 |
) |
|
|
(84,210,284 |
) |
Payments on note payable - related party |
|
|
(507,508 |
) |
|
|
(463,192 |
) |
Payments on insurance premium note payment |
|
|
(1,916,070 |
) |
|
|
(1,922,651 |
) |
Proceeds from construction note payable |
|
|
1,000,000 |
|
|
|
- |
|
Payments on construction note payable |
|
|
(66,586 |
) |
|
|
- |
|
Preferred stock dividends paid |
|
|
(2,195,075 |
) |
|
|
(1,758,405 |
) |
Common stock repurchase plan |
|
|
(291,011 |
) |
|
|
|
|
Common stock issued for exercised warrants |
|
|
56,046 |
|
|
|
943,907 |
|
Payments on assumed debt from Gemini |
|
|
- |
|
|
|
(50,000,000 |
) |
Payments on note payable |
|
|
- |
|
|
|
(4,000,000 |
) |
Sale of preferred stock |
|
|
- |
|
|
|
35,000,000 |
|
Common stock issuance costs |
|
|
- |
|
|
|
(3,199,922 |
) |
Net cash used in financing activities |
|
|
(3,553,100 |
) |
|
|
(24,040,872 |
) |
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash |
|
|
4,312,139 |
|
|
|
(90,926,900 |
) |
Cash, beginning of period |
|
|
23,281,475 |
|
|
|
118,341,471 |
|
Cash and restricted cash, end of period |
|
$ |
27,593,614 |
|
|
$ |
27,414,571 |
|
(Continued)
AMMO, Inc.CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOW(Unaudited)
|
|
For the Nine Months Ended December
31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Supplemental cash flow
disclosures: |
|
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
433,761 |
|
|
$ |
474,454 |
|
Income taxes |
|
$ |
1,302,811 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Non-cash investing and
financing activities: |
|
|
|
|
|
|
|
|
Construction note payable |
|
$ |
10,237,032 |
|
|
$ |
- |
|
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.
Historical Reconciliation of GAAP net
income to Adjusted EBITDA
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
|
31-Dec-22 |
|
|
31-Dec -21 |
|
|
31-Dec -22 |
|
|
31-Dec -21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP
net income to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(4,102,992 |
) |
|
$ |
9,067,867 |
|
|
$ |
(1,653,472 |
) |
|
$ |
32,720,039 |
|
Provision for Income
Taxes |
|
|
(721,125 |
) |
|
|
1,351,998 |
|
|
|
1,369,427 |
|
|
|
1,351,998 |
|
Depreciation and
amortization |
|
|
4,356,004 |
|
|
|
4,623,355 |
|
|
|
12,950,972 |
|
|
|
12,778,103 |
|
Excise Taxes |
|
|
1,669,206 |
|
|
|
3,982,221 |
|
|
|
7,816,598 |
|
|
|
10,317,110 |
|
Interest expense, net |
|
|
320,439 |
|
|
|
190,319 |
|
|
|
538,191 |
|
|
|
468,404 |
|
Employee stock awards(1) |
|
|
2,106,535 |
|
|
|
1,045,125 |
|
|
|
4,457,973 |
|
|
|
2,898,250 |
|
Stock grants |
|
|
43,750 |
|
|
|
65,098 |
|
|
|
135,344 |
|
|
|
197,110 |
|
Stock for services |
|
|
- |
|
|
|
4,200 |
|
|
|
- |
|
|
|
4,200 |
|
Warrant Issuance |
|
|
106,909 |
|
|
|
145,508 |
|
|
|
106,909 |
|
|
|
145,508 |
|
Other income/(expenses),
net |
|
|
170,403 |
|
|
|
(363 |
) |
|
|
(28,193 |
) |
|
|
(21,788 |
) |
Contingent consideration fair
value |
|
|
(20,326 |
) |
|
|
(359,309 |
) |
|
|
(45,572 |
) |
|
|
(362,753 |
) |
Proxy contention fees |
|
|
3,983,254 |
|
|
|
- |
|
|
|
4,724,385 |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
7,912,057 |
|
|
$ |
20,116,019 |
|
|
$ |
30,372,562 |
|
|
$ |
60,496,181 |
|
(1) Includes proxy contention fees of $910,000
for Employee Stock Awards issued as a result of the Settlement
Agreement as discussed in our Quarterly Report on Form 10-Q.
Updated Reconciliation
of GAAP net income to Adjusted EBITDA
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
|
31-Dec-22 |
|
|
31-Dec -21 |
|
|
31-Dec -22 |
|
|
31-Dec -21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP
net income to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(4,102,992 |
) |
|
$ |
9,067,867 |
|
|
$ |
(1,653,472 |
) |
|
$ |
32,720,039 |
|
Provision for Income
Taxes |
|
|
(721,125 |
) |
|
|
1,351,998 |
|
|
|
1,369,427 |
|
|
|
1,351,998 |
|
Depreciation and
amortization |
|
|
4,356,004 |
|
|
|
4,623,355 |
|
|
|
12,950,972 |
|
|
|
12,778,103 |
|
Interest expense, net |
|
|
320,439 |
|
|
|
190,319 |
|
|
|
538,191 |
|
|
|
468,404 |
|
Employee stock awards(1) |
|
|
2,106,535 |
|
|
|
1,045,125 |
|
|
|
4,457,973 |
|
|
|
2,898,250 |
|
Stock grants |
|
|
43,750 |
|
|
|
65,098 |
|
|
|
135,344 |
|
|
|
197,110 |
|
Stock for services |
|
|
- |
|
|
|
4,200 |
|
|
|
- |
|
|
|
4,200 |
|
Warrant Issuance |
|
|
106,909 |
|
|
|
145,508 |
|
|
|
106,909 |
|
|
|
145,508 |
|
Other income/(expenses),
net |
|
|
170,403 |
|
|
|
(363 |
) |
|
|
(28,193 |
) |
|
|
(21,788 |
) |
Contingent consideration fair
value |
|
|
(20,326 |
) |
|
|
(359,309 |
) |
|
|
(45,572 |
) |
|
|
(362,753 |
) |
Proxy contention fees |
|
|
3,983,254 |
|
|
|
- |
|
|
|
4,724,385 |
|
|
|
- |
|
Tax effect(2) |
|
|
(1,438,439 |
) |
|
|
(5,476,081 |
) |
|
|
(5,350,584 |
) |
|
|
(5,290,304 |
) |
Adjusted EBITDA |
|
$ |
4,804,412 |
|
|
$ |
10,657,717 |
|
|
$ |
17,205,381 |
|
|
$ |
44,888,767 |
|
(1) Includes proxy contention fees of $910,000
for Employee Stock Awards issued as a result of the Settlement
Agreement as discussed in our Quarterly Report on Form 10-Q.(2) Tax
effect computed at statutory rates.
Historical Adjusted
EPS |
|
For the Three Months Ended |
|
|
|
31-Dec-22 |
|
|
31-Dec-21 |
|
Reconciliation of GAAP
net income to Fully Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(4,102,992 |
) |
|
|
$ |
(0.03 |
) |
|
$ |
9,067,867 |
|
|
$ |
0.08 |
|
|
Provision for income taxes |
|
|
(721,125 |
) |
|
|
|
(0.01 |
) |
|
|
1,351,998 |
|
|
|
0.01 |
|
|
Depreciation and
amortization |
|
|
4,356,004 |
|
|
|
|
0.04 |
|
|
|
4,623,355 |
|
|
|
0.04 |
|
|
Interest expense, net |
|
|
320,439 |
|
|
|
|
- |
|
|
|
190,319 |
|
|
|
- |
|
|
Employee stock awards |
|
|
2,106,535 |
|
|
|
|
0.02 |
|
|
|
1,045,125 |
|
|
|
0.01 |
|
|
Stock grants |
|
|
43,750 |
|
|
|
|
- |
|
|
|
65,098 |
|
|
|
- |
|
|
Stock for services |
|
|
- |
|
|
|
|
- |
|
|
|
4,200 |
|
|
|
- |
|
|
Warrants issued for services |
|
|
106,909 |
|
|
|
|
- |
|
|
|
145,508 |
|
|
|
- |
|
|
Other income, net |
|
|
17,403 |
|
|
|
|
- |
|
|
|
(363 |
) |
|
|
- |
|
|
Contingent consideration fair
value |
|
|
(20,326 |
) |
|
|
|
- |
|
|
|
(359,309 |
) |
|
|
- |
|
|
Proxy contention costs |
|
|
3,983,254 |
|
|
|
|
0.03 |
|
|
|
- |
|
|
|
0.04 |
|
|
Adjusted Net Income |
|
$ |
6,242,851 |
|
|
|
$ |
0.05 |
|
|
$ |
16,133,798 |
|
|
$ |
0.14 |
|
|
Historical Adjusted
EPS |
|
For the Nine Months
Ended |
|
|
|
31-Dec-22 |
|
|
31-Dec-21 |
|
Reconciliation of GAAP
net income to Fully Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(1,653,472 |
) |
|
$ |
(0.01 |
) |
|
$ |
32,720,039 |
|
|
$ |
0.29 |
|
|
Provision for income taxes |
|
|
1,369,427 |
|
|
|
0.01 |
|
|
|
1,351,998 |
|
|
|
0.01 |
|
|
Depreciation and
amortization |
|
|
12,950,972 |
|
|
|
0.11 |
|
|
|
12,778,103 |
|
|
|
0.11 |
|
|
Interest expense, net |
|
|
538,191 |
|
|
|
- |
|
|
|
468,404 |
|
|
|
- |
|
|
Employee stock awards |
|
|
4,457,973 |
|
|
|
0.04 |
|
|
|
2,898,250 |
|
|
|
0.03 |
|
|
Stock grants |
|
|
135,344 |
|
|
|
|
|
|
|
197,110 |
|
|
|
- |
|
|
Stock for services |
|
|
- |
|
|
|
- |
|
|
|
4,200 |
|
|
|
- |
|
|
Warrants issued for services |
|
|
106,909 |
) |
|
|
- |
|
|
|
145,508 |
|
|
|
- |
|
|
Other income, net |
|
|
(28,193 |
) |
|
|
|
|
|
|
(21,788 |
) |
|
|
- |
|
|
Contingent consideration fair
value |
|
|
(45,572 |
) |
|
|
- |
|
|
|
(362,753 |
) |
|
|
- |
|
|
Proxy contention costs |
|
|
4,724,385 |
|
|
|
0.04 |
|
|
|
- |
|
|
|
- |
|
|
Adjusted Net Income |
|
$ |
22,555,964 |
|
|
$ |
0.19 |
|
|
$ |
50,179,071 |
|
|
$ |
0.44 |
|
|
Updated Adjusted EPS |
|
For the Three Months
Ended |
|
|
|
31-Dec-22 |
|
|
31-Dec-21 |
|
Reconciliation of GAAP
net income to Fully Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) |
|
$ |
(4,102,992 |
) |
|
$ |
(0.03 |
) |
|
$ |
9,067,867 |
|
|
$ |
0.08 |
|
|
Depreciation and
amortization |
|
|
4,356,004 |
|
|
|
0.04 |
|
|
|
4,623,355 |
|
|
|
0.04 |
|
|
Interest expense, net |
|
|
320,439 |
|
|
|
- |
|
|
|
190,319 |
|
|
|
- |
|
|
Employee stock awards |
|
|
2,106,535 |
|
|
|
0.02 |
|
|
|
1,045,125 |
|
|
|
0.01 |
|
|
Stock grants |
|
|
43,750 |
|
|
|
- |
|
|
|
65,098 |
|
|
|
- |
|
|
Stock for services |
|
|
- |
|
|
|
- |
|
|
|
4,200 |
|
|
|
- |
|
|
Warrants issued for
services |
|
|
106,909 |
|
|
|
- |
|
|
|
145,508 |
|
|
|
- |
|
|
Contingent consideration fair
value |
|
|
(20,326 |
) |
|
|
- |
|
|
|
(359,309 |
) |
|
|
- |
|
|
Proxy contention costs |
|
|
3,983,254 |
|
|
|
0.03 |
|
|
|
- |
|
|
|
- |
|
|
Tax effect (1) |
|
|
(1,390,215 |
) |
|
|
(0.01 |
) |
|
|
(5,476,184 |
) |
|
|
(0.05 |
) |
|
Adjusted Net Income |
|
$ |
5,403,358 |
|
|
$ |
0.05 |
|
|
$ |
9,305,979 |
|
|
$ |
0.08 |
|
|
(1) Tax effect computed at statutory rates.
Updated Adjusted EPS |
|
For the Nine Months
Ended |
|
|
|
31-Dec-22 |
|
|
31-Dec-21 |
|
Reconciliation of GAAP
net income to Fully Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) |
|
$ |
(1,653,472 |
) |
|
$ |
(0.01 |
) |
|
$ |
32,720,039 |
|
|
$ |
0.29 |
|
|
Depreciation and
amortization |
|
|
12,950,972 |
|
|
|
0.11 |
|
|
|
12,778,103 |
|
|
|
0.11 |
|
|
Interest expense, net |
|
|
538,191 |
|
|
|
- |
|
|
|
468,404 |
|
|
|
- |
|
|
Employee stock awards |
|
|
4,457,973 |
|
|
|
0.04 |
|
|
|
2,898,250 |
|
|
|
0.03 |
|
|
Stock grants |
|
|
135,344 |
|
|
|
- |
|
|
|
197,110 |
|
|
|
- |
|
|
Stock for services |
|
|
- |
|
|
|
- |
|
|
|
4,200 |
|
|
|
- |
|
|
Warrants issued for
services |
|
|
106,909 |
|
|
|
- |
|
|
|
145,508 |
|
|
|
- |
|
|
Contingent consideration fair
value |
|
|
(45,572 |
) |
|
|
- |
|
|
|
(362,753 |
) |
|
|
- |
|
|
Proxy contention costs |
|
|
4,724,385 |
|
|
|
0.04 |
|
|
|
- |
|
|
|
- |
|
|
Tax effect (1) |
|
|
(5,358,562 |
) |
|
|
(0.05 |
) |
|
|
(5,296,470 |
) |
|
|
(0.05 |
) |
|
Adjusted Net Income |
|
$ |
15,856,168 |
|
|
$ |
0.14 |
|
|
$ |
43,552,391 |
|
|
$ |
0.38 |
|
|
(1) Tax effect computed at statutory rates.
|
|
For the Three Months EndedDecember
31, |
|
|
For the Nine Months EndedDecember
31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Weighted average number of
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
117,348,511 |
|
|
|
114,757,014 |
|
|
|
116,950,013 |
|
|
|
111,289,024 |
|
Diluted |
|
|
117,348,511 |
|
|
|
116,717,500 |
|
|
|
116,950,013 |
|
|
|
113,350,998 |
|
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