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Sep 30, 2023

Ammo Q2 2024 Earnings Report

Reported a difficult quarter due to industry challenges and operational issues, but remains optimistic about future performance and is transitioning to a leaner, more profitable model.

Key Takeaways

AMMO, Inc. reported a decrease in revenue, primarily due to lower ammunition sales, but saw increased casing sales. The company is optimistic about future performance, citing positive trends in ammunition demand and increased activity on GunBroker.com. They reported $129.5 million in current assets including $49.6 million of cash and cash equivalents, in comparison to $27.6 million in current liabilities.

Second quarter was difficult due to industry and operational challenges.

Transitioning to a leaner and more profitable operating model.

Market conditions improving due to recent international and domestic events.

GunBroker.com is starting to see the payoff of payment processing capabilities on the platform.

Total Revenue
$34.4M
Previous year: $48.3M
-28.8%
EPS
-$0.07
Previous year: $0.05
-240.0%
Gross Profit
$8.3M
Previous year: $12.8M
-35.3%
Cash and Equivalents
$49.6M
Previous year: $29M
+71.0%
Free Cash Flow
$3.85M
Previous year: $9.36M
-58.8%
Total Assets
$403M
Previous year: $424M
-5.0%

Ammo

Ammo

Ammo Revenue by Segment

Forward Guidance

Company is positioned to capitalize on positive trends given our strong financial position.

Positive Outlook

  • Strong demand for brass casings
  • Stronger demand internationally
  • Fundamentals of the industry are improving
  • Gunbroker.com is starting to see the payoff of payment processing capabilities
  • Positive trends in the demand for our ammunition product

Challenges Ahead

  • Fiscal second quarter was a very difficult quarter for our industry
  • Mechanical and supply issues
  • Roughly one quarter behind where we thought we would be by now
  • Gross margins have decreased in our ammunition segment due to operational struggles
  • Challenges continue in the market today

Revenue & Expenses

Visualization of income flow from segment revenue to net income