Outdoor Holding Company, the parent of GunBroker.com and formerly Ammo, Inc., posted a loss from continuing operations of $65.2 million in its fiscal year ended March 31 against a loss of $5.4 million a year ago, according to the company’s 10K filing.
The results follow a transition period for the company, during which Outdoor Holding sold its ammunition manufacturing assets on April 18 to Olin Winchester, a subsidiary of Olin Corporation, for a purchase price of $75 million. Outdoor Holding received gross proceeds of $42.9 million from the sale.
The sale enables Outdoor Holding to focus on its high-margin, tech-enabled e-commerce company centered around GunBroker.com.
On May 28, Steve Urvan, the founder of GunBroker.com and the firm’s largest shareholder, was appointed CEO and chairman, replacing Jared Smith. His appointment is part of a settlement resolving litigation between Urvan.
According to the company’s 10K filing, revenues in the fiscal year declined 8.4 percent to $49.4 million. This decrease was due to a reduction in gross merchandise sales generated from its GunBroker.com marketplace, partially offset by a minor increase in its take rate. Outdoor Holding said in its report, “We believe the reduction in gross merchandise sales was a result of economic conditions and reduced discretionary spending among our customer base.”
Gross margins increased to 86.9 percent from 85.8 percent a year ago, primarily due to the increased take rate.
Operating expenses nearly doubled to $102.6 million from $52.7 million the previous year. The increase was primarily due to a $29.1 million contingency for prior litigation against Urvan and a $14.1 million increase in legal and professional fees related to a restatement of financial results, a Special Committee Investigation, the SEC Investigation, and the Urvan litigation as well as a $2.1 million increase in other legal and professional fees, $1.5 million in costs associated with acquisitions and divestitures and a $2.0 million increase in payments for director committee service.
The operating loss totaled $59.7 million, compared to a loss of $6.4 million a year ago.
The filing noted that as of March 31, GunBroker had approximately 8.4 million registered users and averaged 3.67 million daily listings.
Image courtesy Gunbroker.com
