Ammo, Inc., the owner of GunBroker.com, reported sales fell 7.5 percent in the fourth quarter and 24.2 percent in the fiscal year ended March 31 with losses widening in both periods. Jared Smith, Ammo’s CEO, said quarterly sales improved sequentially and progress is being made in repositioning both GunBroker and its ammunition and components businesses toward higher-margin opportunities.

Fiscal Year 2024 Overview

  • Net Revenues of $145.1 million, a 24.2 percent decrease.
  • Gross profit margin of approximately 29.4 percent.
  • Adjusted EBITDA of $15.4 million compared to $26.4 million.
  • Net loss of ($15.6) million, compared to net loss of ($4.6) million.
  • Diluted EPS of ($0.16), compared to ($0.07).
  • Adjusted EPS of $0.09, compared to $0.16.

GunBroker.com Marketplace Metrics
(Fiscal Year 2024)

  • Marketplace revenue of approximately $53.9 million.
  • New user growth averaged 30,000 per month.
  • Average take rate increased to 5.9 percent compared to 5.6 percent in fiscal 2023.

Fourth Quarter 2024 Overview

  • Net Revenues of $40.4 million, a 7.5 percent decrease
  • Gross profit margin of approximately 23.3 percent.
  • Adjusted EBITDA of $2.2 million compared to $3.8 million.
  • Net loss of ($5.3) million, compared to net loss of ($2.9) million.
  • Diluted EPS of ($0.05), compared to ($0.04).
  • Adjusted EPS of $0.01, compared to $0.02.

GunBroker.com Marketplace Metrics
(Fourth Quarter 2024)

  • Marketplace revenue of approximately $13.6 million.

Jared Smith, Ammo’s CEO, commented, “Sales increased sequentially despite a slower market environment. We continued to make progress this quarter and ended the fiscal year with a strong pipeline of rifle ammunition and casing sales while accelerating our buildout of GunBroker’s capabilities. This is most evident as we start to deliver on our ZRO Delta contract, while continuing the advancement in financing, cross selling, and carting of accessories that will take place with GunBroker in Fiscal 2025.

“Ammo is at a pivotal point as we finish the first quarter of our 2025 fiscal year. We believe we have changed the trajectory of the business in these past 12 months in a way that will lead to increased shareholder value. Our ongoing transition from low margin pistol Ammo to high margin rifle cases will sustain a more stable and profitable business model going forward. In addition, GunBroker’s multi seller, multi-item checkout process will enable us to capture a higher margin accessory business, while streamlining the checkout process. As we sit here in June, we believe we have never been more poised for success,” Smith concluded.

Fourth Quarter and Fiscal Year 2024 Results
Ammo said, “We experienced sequential revenue growth in our ammunition segment in the final quarter of our fiscal year in comparison to our third quarter while the margins of the GunBroker marketplace segment remain robust.

“We ended the fourth quarter of our 2024 fiscal year with total revenues of approximately $40.4 million in comparison to $43.7 million in the prior year quarter. The decrease in revenue was primarily related to a decrease in activity in our marketplace segment, which we believe decreased as a result of the current macroeconomic environment impacting our industry as well as others. Our casing sales, however, which afford us higher gross margins, increased to $0.9 million up from the prior year period. Revenues for our ammunition segment decreased $0.2 million from the prior year quarter but increased $4.8 million or 21.9 percent quarter-over-quarter as a result of increased ammunition sales in our fourth fiscal quarter.

“Cost of goods sold was approximately $31.0 million for the quarter compared to $31.8 million in the comparable prior year quarter. The decrease in cost of goods sold was related to the decrease in sales volume.

“Our gross margin for the quarter was $9.4 million or 23.3 percent compared to $11.9 million or 27.3 percent in the prior year period. The decrease in gross profit margin was related to the shift in sales mix.

“The robust margins on GunBroker remained steady through our final quarter, but the margins in the ammunition segment did not meet expectations. We expect improvement as production capacities increase. Our inventory levels continued to decrease, generating $4.3 million in cash from operations for the quarter, bringing us to $32.6 million for the full fiscal year.

“There was approximately $2.4 million of nonrecurring expenses in the quarter related to legal and professional fees, which we have included as an addback to adjusted EBITDA.

“For the quarter, we recorded Adjusted EBITDA of approximately $2.2 million, compared to the prior year quarter Adjusted EBITDA of $3.8 million.

“We ended the quarter with a Net Loss of approximately $5.3 million compared with a Net Loss of approximately $2.9 million for the prior year period. This resulted in a loss per share of $0.05 for the quarter or Adjusted Net Income per Share of $0.01 in comparison to a loss per share of $0.04 in the prior year quarter or Adjusted Net Income per Share of $0.03. For our fiscal year, a loss per share of $0.16 or Adjusted Net Loss per Share of $0.09 in comparison to Net Income per share of $0.07 or Adjusted Net Income per Share of $0.16 in the prior year.

“Looking forward, we are focused on increasing our plant capacity with the recent engagement of a global consulting firm, which should improve the product marginality.

“For GunBroker, we launched our cart platform in March of 2024, and will be bringing other efforts online in Fiscal 2025. These efforts may include additional customer financing partnerships such as what we built with Gearfire Capital, which will allow retailers the option to offer flexible financing options to customers. We expect these enhancements will drive sales growth through better functionality and enhanced purchasing power of buyers.

“As of now, we believe we are financially well positioned into Fiscal 2025 given our strong net working capital position. We reported $131.5 million in current assets including $55.6 million of cash and cash equivalents along with $30.9 million of current liabilities. Additionally, we generated $32.6 million in cash from operations for the period.”

Image courtesy Outdoor Life