Fiscal First Quarter 2020, ended June 30, 2019, Revenues of $4.3 Million
Fiscal First Quarter SG&A Expense Decreased 30% as a Percentage of Sales versus Prior Year; Expects Positive Operating Cash Flow in Fiscal 2020 Second Half
Reaffirms Revenue Guidance of at Least $6.5 Million for the Fiscal Second Quarter, Representing Sequential Growth of More Than 50%
SCOTTSDALE, AZ, Aug. 15, 2019 (GLOBE NEWSWIRE) -- AMMO, Inc. (OTCQB: POWW) (“AMMO”), a technology leader and premier American ammunitions manufacturer, today announced its fiscal first quarter financial results, ended June 30, 2019, in conjunction with the filing of its Form 10-Q.
Financial Highlights for Fiscal First Quarter, ended June 30, 2019
- Revenue was $4.3 million, an increase of 244% versus prior year period
- SG&A expenses decreased 30% as a percentage of sales versus the prior year period
- Net loss was $3.8 million and includes approximately $2.0 million of non-cash expenses
- Results reflect first full quarter of Jagemann Munition Components (“JMC”) contribution
“We were pleased with our fiscal first quarter results, which were consistent with our preannouncement issued last month. The business is responding to our efforts to broaden distribution, drive profitability and enhance our cash flow. We remain confident that we will realize positive operating cash flow in the second half of fiscal 2020,” commented Fred Wagenhals, CEO of AMMO, Inc. “Our integration of the JMC acquisition is progressing well and nearing completion. The result of this effort is a more efficient enterprise that can support our expanded portfolio of products which meet the growing needs of our broad customer base that spans commercial, military and law enforcement channels.”
Financial Results
Revenue for the fiscal first quarter of 2020, ended June 30, was $4.3 million, an increase of 244%, compared to $1.8 million in the first quarter of 2019. The improvement in revenue was primarily the result of expanded distribution within our commercial channel. The Company anticipates gross profit margin to expand based upon sales of our proprietary lines of ammunition that carry higher margins as a percentage of their selling prices, reduced component costs through our recently acquired casing operations, and better leverage of our fixed costs through expanded production to support the sales objectives.
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-P™ 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:
Rob Wiley
Chief Financial Officer
Phone: (480) 947-0001
rob@ammo-inc.com
Media Contact:
Mark Hanish
President of Global Commercial Sales & Marketing
Phone: (480) 530-2827
mhannish@ammo-inc.com