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Jun 30, 2023
Ammo Q1 2024 Earnings Report
Reported a decrease in revenue due to softening ammunition markets but showed improvements in gross margin and strong cash flow.
Key Takeaways
AMMO, Inc. reported first quarter fiscal 2024 results with a decrease in revenue to $34.3 million compared to $60.8 million in the prior year quarter, primarily due to decreased sales in the ammunition segment. However, the company saw improvements in gross margin and generated $13.0 million in cash from operations. The company reported a net loss per share of $0.02 or adjusted net income per share of $0.05.
Gross margins increased due to a shift in sales mix and benefits from a leaner operating model.
Casing sales increased to $6.2 million, up from $3.3 million in the prior year period.
Marketplace revenue was $13.9 million for the reported quarter.
The company repurchased approximately 739,000 shares of its common stock during the quarter.
Forward Guidance
The company is rolling out beta testing for its payment platform on GunBroker.com, with a formal launch expected by the end of the quarter. The cart platform for GunBroker.com is expected to launch by the end of the fiscal year.
Positive Outlook
- Improvements to marketplace GunBroker.com are underway.
- Beta testing for payment platform is in progress.
- Formal launch of payment platform expected by the end of the quarter.
- Cart platform for GunBroker.com is on pace for launch by the end of the fiscal year.
- Company feels confident in its financial position.
Challenges Ahead
- The company faces headwinds due to softening in the US commercial ammunition markets.
- Revenue decreased due to a decrease in sales activity from the ammunition segment.
- There were approximately $2.8 million of nonrecurring legal expenses incurred in the first fiscal quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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