AMMO Inc (POWW) Reports Mixed Q3 2024 Results Amidst Industry Challenges
Net Revenues: Decreased to $36.0 million from $38.7 million in the same quarter last year.
Gross Profit Margin: Dropped to 30.3% compared to 32.4% in the prior year's quarter.
Adjusted EBITDA: Fell to $5.4 million from $6.2 million year-over-year.
Net Loss: Improved to ($1.6) million from a net loss of ($4.1) million in the third quarter of fiscal 2023.
Diluted EPS: Remained stable at ($0.02), with adjusted EPS also steady at $0.04.
Marketplace Performance: GunBroker.com saw revenue of approximately $14.0 million with new user growth averaging 37,000 per month.
Stock Repurchase: AMMO Inc repurchased approximately 145,000 shares under its common stock repurchase plan.
On February 8, 2024, AMMO Inc (NASDAQ:POWW), the owner of GunBroker.com and a leading producer of high-performance ammunition, released its 8-K filing, detailing financial results for its third quarter of fiscal 2024, which ended December 31, 2024. The company reported a decrease in net revenues to $36.0 million, down from $38.7 million in the same quarter of the previous fiscal year. Despite the revenue dip, the net loss improved to ($1.6) million from a net loss of ($4.1) million in the third quarter of fiscal 2023.
AMMO Inc's gross profit margin decreased to approximately 30.3% compared to 32.4% in the prior year's quarter, reflecting a shift in sales mix. Adjusted EBITDA also saw a decline to $5.4 million from $6.2 million year-over-year. Diluted EPS remained at ($0.02), the same as the previous year, with adjusted EPS steady at $0.04.
AMMO Inc's CEO, Jared Smith, commented on the company's performance, stating:
"Despite the challenges we faced in calendar 2023 for our industry, Ammo Inc. continues to transition its business to a stronger and leaner operating model. We have emerged from this time with an impeccable balance sheet and remain encouraged about the significant opportunities we have before us here in the fourth quarter and going forward."
Smith also highlighted the company's focus on high-margin ammunition and the growth of the OEM brass business. The company's marketplace, GunBroker.com, continues to perform well with revenue of approximately $14.0 million and new user growth averaging 37,000 per month.
AMMO Inc's balance sheet remains strong with cash and cash equivalents of $54.7 million. The company also repurchased approximately 145,000 shares of its common stock under its repurchase plan during the reported quarter.
The company's cost-cutting measures have resulted in a 5.4% decrease in operating expenses as a percentage of sales from the prior year quarter, adjusted to exclude nonrecurring expenses. Nonrecurring expenses for the quarter included approximately $1.5 million related to legal and professional fees.
AMMO Inc's marketplace improvements are ongoing, with the GunBroker.com cart platform scheduled to launch on April 1st. The company's management will host a conference call to review the financial results and provide an update on corporate developments.
AMMO Inc, headquartered in Scottsdale, Arizona, designs and manufactures products for law enforcement, military, sport shooting, and self-defense. The company is known for its branded munitions, patented STREAK Visual Ammunition, /stelTH/ subsonic munitions, and specialty rounds for military use.
GunBroker.com, owned by AMMO Inc, is the largest online marketplace dedicated to firearms, hunting, shooting, and related products, promoting responsible ownership and use of firearms.
Investors and analysts interested in participating in the conference call are encouraged to preregister for the event. The call will also be available through a live webcast, accessible through the company's website.
For more detailed financial information and the full earnings report, please refer to the provided 8-K filing.
Explore the complete 8-K earnings release (here) from AMMO Inc for further details.
This article first appeared on GuruFocus.
