Jagemann Munition Components Expected to be Immediately Accretive and Contribute $20-25 Million of Revenue and $4 Million of Operating Income for Fiscal 2020
SCOTTSDALE, AZ, March 26, 2019 (GLOBE NEWSWIRE) -- AMMO, Inc. (OTCQB: POWW), a technology leader and premier American ammunitions manufacturer, is providing an update on its recent business progress following its transformational acquisition of Jagemann Stamping Company’s Casing Division, or Jagemann Munition Components (“JMC”).
Fred Wagenhals, CEO of AMMO, Inc. (“AMMO”) commented, “We have made tremendous progress this fiscal year toward our goal of becoming a technology-driven, fully integrated ammunition manufacturer. Following the strategic acquisition of Jagemann Munition Components our supply chain is secure and we are able to lower our cost structure and ensure we have the necessary supply to compete on the global market. Our balance sheet remains solid and we anticipate transitioning to a cash flow positive position beginning in the second fiscal quarter ending September 30, 2019. We are extremely excited about what the future holds as we pursue our growth initiatives across our Commercial and Global Tactical Defense divisions.”
Business Highlights
- Commercial Division – AMMO’s recent rollout of its STREAKTM Visual Ammunition product line to 142 Bass Pro Shops and Cabela’s locations is in process, with expanded sell-through and reorders being processed. Bass Pro Shops’ ‘2nd Amendment Savings’ flyer began March 4th and STREAKTM sales increased over 250% during the subsequent two-week period, as compared to the normal sell-through rate. AMMO will be exhibiting at the 148th NRA Annual Meetings & Exhibits in Indianapolis, Indiana April 26-28. AMMO, Inc. is prominently located in the exhibit halls in booth 3630 displaying the latest in STREAKTM Visual Ammunition.
- Global Tactical Defense Division – The Company debuted the new line of TAC-P™ precision tactical munitions at SHOT Show in Las Vegas, Nevada in January of this year. As part of the product launch, the Defense Division hosted two days of “hands on” range demonstrations to showcase the performance of its new line of ammunition. During the week-long event, the Company met with representatives from across the globe to discuss their open requirements, and how this new line of match grade armor piercing rounds, coupled with the next generation of STREAK™ Visual Ammunition, could be integrated for deployment. As a result of the demonstrations, the Company has signed several new distributors and received initial orders for testing and validation. Since SHOT Show, the Company was asked to provide pricing and proposals for several potential customers.
Additionally, just this month, AMMO was awarded its first U.S. Law Enforcement contract within its home state of Arizona. Under the contract, AMMO will be supplying its “AMMO Branded” ammunition to include both pistol and certain calibers of rifle rounds. Sales under this contract should begin in the second fiscal quarter of 2019.
- Jagemann Munition Components (“JMC”) – As announced on March 18, 2019, AMMO acquired the brass casing division of Jagemann Stamping Company, or JMC. This acquisition was a critical element in the Company’s long-term strategy as it secures its supply chain for these important components and creates a more competitive pricing structure that it can leverage across all of its targeted markets. JMC also greatly enhances the Company’s plant capacity and technical expertise required for the development of further military grade projectiles.
Financial Expectations
The Company continues to expect consolidated revenue of approximately $50 million dollars for their fiscal year ending in March of 2020. JMC is anticipated to contribute $20 million to $25 million of this target, based upon their prior year performance and early market indications. The balance of the revenue growth is expected through a ramp in its Commercial operations across the various consumer channels and initial orders and contracts from the Global Tactical Defense Division. Importantly, with the closing of the JMC asset, which has historically produced operating margins of approximately 20%, the Company expects to realize positive operating cash flow during the second quarter ended September of 2019 with an acceleration through the balance of the year as its Commercial operations gain greater scale.
Upcoming Conference Presentation
On April 1, 2019 at 9:00 am EST, executive management will be presenting at the Spring Investor Summit 2019, formerly known as The MicroCap Conference. The event is being held at the Essex House in New York City. Investors interested in arranging a meeting can register with the event organizers at: microcapconf.com or contact ICR to make arrangements.
About AMMO, Inc.
AMMO, Inc. designs and manufactures products for a variety of aptitudes, including law enforcement, military, hunting, 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, including its patented STREAK™ Visual Ammunition, the Jesse James line of munitions and accessories, /stelTH/ subsonic munitions, O.W.L. Technologies®, TAC-PTM Tactical Precision Defense munitions, and OPS (One Precise Shot) a lead-free frangible tactical line of munitions for self-defense. The Company’s corporate offices are headquartered in Scottsdale, Arizona, and operates a munitions manufacturing facilities in Payson, Arizona, as well as a brass casings manufacturing facility in Manitowoc, Wisconsin. For more information please visit: www.ammoinc.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.
In our filings with the Securities and Exchange Commission, references to “AMMO, Inc.”, “AMMO”, “the Company”, “we,” “us,” “our” and similar terms refer to AMMO, Inc. and its wholly owned operating subsidiaries The Enlight Group (d/b/a Jagemann Munition Components), SNI, LLC and Ammo Technologies, Inc.”
Investor Contact:
Jeff Sonnek
ICR, Inc.
Phone: (646) 277-1263
jeff.sonnek@icrinc.com
Media Contact:
Mark Hanish
President of Global Commercial Sales & Marketing
Phone: (480) 530-2827
mhannish@ammo-inc.com