Fiscal First Quarter 2020, ended June 30, 2019, Preliminary Revenues of $4.3 Million
Expects Revenue of at Least $6.5 Million for the Fiscal Second Quarter, Representing Sequential Growth of More Than 50%
Company Anticipates Achieving Positive Cash Flow in the Second Half of Calendar 2019
SCOTTSDALE, AZ, July 22, 2019 (GLOBE NEWSWIRE) -- AMMO, Inc. (OTCQB: POWW) (“AMMO”), a technology leader and premier American ammunitions manufacturer, today provided a business update in conjunction with the preannouncement of its fiscal first quarter sales, ended June 30, 2019.
Preliminary Financial Highlights for Fiscal First Quarter, ended June 30, 2019
| ● | Revenue was approximately $4.3 million | |
| ● | AMMO’s commercial projectiles revenue increased 46% on a sequential basis compared to fiscal fourth quarter ended March 31, 2019 | |
| ● | Results reflect first full quarter of Jagemann Munition Components (“JMC”) contribution |
Fred Wagenhals, CEO of AMMO, Inc. commented, “Fiscal first quarter was pivotal for AMMO on a variety of fronts, but most notably was the integration of our recent acquisition, JMC, into our business. Our manufacturing footprint is now aligned and optimized to meet the growing needs of customers demanding difficult to source brass components, as well as our innovative line of projectiles that address a variety of unmet needs in the marketplace. We are pleased with the performance in the fiscal first quarter, and believe our growth will accelerate as the year progresses following the greater distribution we’ve achieved in our commercial division and growing traction within our global tactical defense division that will become visible in the current fiscal second quarter. We continue to forecast a path toward positive cash flow in the second half of calendar 2019 based upon our growing sales pipeline and are pushing forward in our pursuit of an uplisting to a major national exchange.”
Business Highlights & Outlook
| ● | Commercial Division – The Company significantly enhanced its commercial division during the fiscal first quarter with new SKU introductions and marketing engagements in support of its omni-channel strategy that was further bolstered by product placements in a growing roster of retail, e-commerce, and distribution accounts. Additionally, in June the Company launched a new multi-channel marketing strategy. This strategy is two-fold, focusing on in-store engagement which is in support of a broader digital and print advertising approach. The in-store program centers on a countertop display that contains a video package demonstrating the visual signature of STREAKTM to help drive velocity of high-margin sales of the Company’s STREAK products in customer locations. | |
| As a result of these enhancements to the Company’s presence in the market, AMMO’s commercial division generated sequential growth of 46% during the fiscal first quarter. Looking to the fiscal second quarter ended September, the Company believes its momentum will accelerate further, achieving greater than 100% sequential revenue growth based upon existing order fulfillment. |
| ● | Global Tactical Defense Division – AMMO’s innovative line of match grade projectiles and ammunition, branded as Tactical Precision or TAC-PTM, are the centerpiece of the Company’s strategy to address the unique needs of the global armed forces and law enforcement communities. The Company continues to engage with potential customers from allied countries around the world for sale of its TAC-P product portfolio. | |
| As previously disclosed, the division was recently awarded law enforcement contracts that will begin to be monetized in the fiscal second and third quarters of this year. The Company believes that it is poised to realize more substantial contribution from this division as the fiscal year progresses and results from several outstanding RFP processes become known. |
| ● | Jagemann Munition Components (“JMC”) – AMMO, Inc. closed its acquisition of JMC, the brass casing division of Jagemann Stamping Company, on March 18, 2019. 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. | |
| During the fiscal first quarter, the Company began aligning its two manufacturing operations to support the manufacture of military cartridges as well as precision tactical ammunition for the law enforcement and sporting industry. This collaboration includes the relocation of all rifle manufacturing, as well as the production of the patent pending TAC-P projectiles to Jagemann’s state of the art facility. Included in the rounds to be manufactured in Wisconsin are the: .50 caliber, 7.62mm, .338 Norma and Lapua, .300 Norma rounds and 6.5 Creedmore. In addition to producing finished cartridges to serve AMMO’s customer base, Jagemann will also offer these high-quality brass casings to its own expanding customer base. |
About AMMO, Inc.
AMMO, Inc. designs and manufactures products for a variety of markets, 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. Manufacturing operations are based in both northern Arizona and 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