POWW - Earnings call transcript Q4 2021

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Operator

Good afternoon, and welcome to AMMO, Inc.’s 2021 Fiscal Year End Earnings Call. Please note this event is been recorded. I would now like to turn it over to John Flynn, AMMO's Vice President. Please go ahead, John.

John Flynn

Thank you, operator. everyone. afternoon, Good for you today. And joining thank us

performance. we discussion along please include and regarding of that me forward-looking could these that those let this that statements projected. future expectations or materially you actual remind estimates note with statements will that are Before follows begin, Please differ the from results session question-and-answer

XX-K, Form and then the Some our of XXXX the fiscal most available the fourth are described year will projections differ from of copy the in our our factors on transcript quarter of that limitations third could risk in fiscal cause A recent section Investor full XX-Q quarter Relations our website Form earnings and actual results press today's section. to factors be without release.

other Rob press Wagenhals, data will CFO. over available questions. it this release, are also With the take turn to and Investor Fred begin I morning to we'd some are remarks earnings your will CEO; information Wiley, and under now and Fred. and and Relations. thereafter me initial be Fred happy with Chairman financial AMMO's Our

Fred Wagenhals

with to those was making certain all of where forward Thanks, company occasion, what world year. dealing civil is and lofty more beating grips the It hello the COVID exactly volatile team we move midterm lives business the the past actually I to expectations. news about to is about When The today. starting done. to an and I process President ugly the We and great daily have making year. able stands am to certain election Last the unrest a we has over. campaign rose with pleased what environment, unrest. spoke our AMMO were We've daily talk in get our already civil all the exciting a moving from troubling note the new and done bit personal was to our continues in team now a expectations, its to election also in even for next head. season that that resulting few pandemic. entire this met you, learned We we year the rear minutes job is is see to And go a post-COVID challenging. John, to And be continuing everyone. our fiscal and this

professionals Let past take of minutes to about incredible me fiscal talk few have what this a our year. accomplished team

Well, changed. last earnings During I seen. the pattern growth about have call, our hasn't growth that talked we incredible

it fact, today. In continues

of over have a revenue We year growth achieved XXX%.

Our team calendar achieved raise annual million. million, revenue well-received We by completed that an capital was this up for from raising million year. prior year, incredibly additional of the markets, $XX.X $XX.X $XXX the early

our for production GunBroker.com firearm, accessories. purchase to the GunBroker.com team identified transaction, entered $XXX LOI key million AMMO worked legal capabilities We a the address of stacked a online While increase and year, then and to vertical-integration companies. to acquisition ammunition leading worked out of the into clock we our that marketplace and the world is family close orders team would GunBroker.com. our around strategy, further management into another believe opportunity enhance team next manufacturing shipping our hard swiftly the into sales bringing

leverage sale the allow be integrating our revenue, in our ability to product able into we will this at the while market. margins are million to a are transforming in online us a we allow offerings largest will assortment our family, the the from for bring believe, of to and to accessories. XX%, With amazing ammunition, annual this increase enjoy technology manufacturer exposure, bringing And operations of transaction firearms, our experience. This corporate and company have GunBroker.com We site legal of customer shareholders enhance GunBroker.com our close, an $XX additional increased And transaction all operating By reasonably auction time. EBITDA approximately this we enjoy pure the to of to world-class these excess to consumer marketplace. will at now value. we

Our team has worked Military. answer call hard of the States United to the

giant corner And have operational As square will world-class the We our awarded now a war ballistic continue Wisconsin, result, year. recently plant of the will land new closed capabilities. us production the U.S. Department current construction the XXX,XXX hands development allow this piece greatest broken on we place to a to that have time on contract from fighters. in next of Defense world's facility to match around a create purchase by to we plant. of ammunition state-of-the-art the a of That of our grounds accelerate manufacturing the foot in

We of Our included statement sign a performance. AMMO were into Index, in incredible XXXX continue margins company have new every revenue, the confidence included helping XXXX Russell build increasing we plant the of operational under an our and base. built and grow Russell shareholder within will day. value growing of to is to place assets strength the roof, one and the for our being all us our market's financial to each continue

formed we As me have ammunition you company heard stagnant say to this industry. the before, disrupt

work to weeks products by nations. set been the opportunities commercial both own to requested other The and international starting day products, goals, of on remains tirelessly and military those hopeful service look doing are work and our the up needs. develop on markets allied our the on market night and always the see We the we has application, just in coming the servicing new some focus and for some military months. for service Our we remain them continue especially the needs, U.S. team fill accretive open slowly that to and We and business and execution. military will

plant new the efforts into Our only enhance will years. R&D those coming

all ammunition not Through clear, execution value continued the bringing We industry of we expansion, to team working ahead for and on the our with through hard And our to will be acquisitions. been technology and shareholders. innovation, have finished. we're always hard forge work create edge, to increased leading

from personal today, our shareholders you of and to developments to informed we transaction corporate Speaking and an to us the by manufacturing and to stop a didn't special job to exciting groups hunting my to great to interest the didn't our continue seen market better all employees, only our close, for are and to amendment GunBroker.com have and progress like our amazing times. all again this to I second to during leader the goal political With make shooting, involved unrest motivate ammunition and me firearm, date. [disrail] of attacks aware is years would certain we've certain the company by world-class enjoyed will consumers company. COVID shareholders marketplace failing of for these extend customers and as politicians be support continuing to come. my appreciation us, of and do my

Now, color I would detail like performance our to company's and on to Wiley, Rob turn year. financial provide over the additional Rob through our CFO. will you. Thank past call the

Rob Wiley

Fred. you, Thank

an referenced in to grow at exceptional Fred company pace. the continued his As comments,

to like our First, sheet. I'd balance review

mainly of from our raise due increased resulting completion fiscal year This our in the on-hand to to increase our XXXX total have March. capital in since We is $XXX million end. cash assets an

volume the year. by increased Our million to sales $X fiscal Accounts and $XX.X receivable cash inventory as increased receivable increase. and doubled than our inventory million though continues have more

We company growth. free add quicker flow, prior service be facilitate continue The to cash to to production year our with to to our debt delivery able up equipment customers since times. restructured end

quarterly best the expected delivered quarter history, even performance fourth fiscal with quarters better Our XXXX. in fiscal company throughout

talk on move Now, and I'd about to like sales.

for million. increase fiscal Sales to XXX% were sales in quarter for the $XX.X million, a year quarter. $XX.X the Our to increased XXX% the comparison XXXX

coupled of We've on expanding marketplace the leading sporting with of of $XXX addition fiscal our experienced of the increase quarter. XXXX for our work diligent $X.X a from recently fiscal is employees, quarter-over-quarter, the our XX% customers sales This testament previous growth to our GunBroken.com, enthusiasts. the shareholders, million the world's of of and the strength given also million, guidance suppliers, distribution outdoor We a support hard revenue with the channels.

Next, about of amortization fiscal XX% quarter, added When or margin XXX%. increase the increases gross for are of increased our million approximately to with I'd margins $X.X have to margins. sales, also for and our back like a goods gross sold, quarter. year-over-year Along cost fourth our to profit depreciation talk the to our XX% our

margins rapidly to increase additions from our operations. Our our achieved margins continue as to in developing we enjoy scale

the would with significant fiscal We year margins to I now operating discuss GunBroker.com. through expect our addition [XXXX] to in of see growth expenses. our the like

a quarter. expenses was as of quarter. decrease from percentage fourth is XX% Our the This XX% for sales the prior year a operating

year XX%, the approximately was $X.X this loss quarter. $X.X non-cash this non-cash a percentage quarter year, the approximately expenses million decrease expenses For the as Net from approximately year million. prior of a Again, $XXX,XXX; was XX% our for loss included million. the for of expenses. was sales $XX.X included however, of approximately operating Net

to EBITDA back other for grown added Next, year. increase has the calculation unusual million in. EBITDA quarter, like or the with metric XXX% that a the from EBITDA a EBITDA. I company Adjusted is prior would the adjusted values, to expenses discuss non-cash Adjusted $X.X

increase the For million, EBITDA was adjusted from year, prior the a XXX% our $X.X year.

our combination first adjusted operational fiscal EBITDA, also within noting, the XX discussing see expenditures adjusted the the to bears and continuing move of half the It better per expect we half GunBroker.com, standalone. in $XX XXXX fiscal the disciplined will to our on as EBITDA months. debt of I scaling second we referenced shows I we improved million of continuing when a Through of excess impact As EBITDA than improvement share. reduction, to EBITDA margin be be to our XXXX now expect are capital adjusted improvement, of in a earnings costs. the addition next

share fourth for the Our a increased from to prior increase fiscal quarter, year adjusted $X.XX XXX% earnings fourth our per quarter.

adjusted year, $X.XX, of better from company's the metric a prior is true earnings to a the a believe the as we earnings is increase values operating Adjusted year. share that that company share XXX% representation increased performance. the per For per

have As at knowledge, we would adjusted into least $XXX operating to translate million fiscal of expand EBITDA. $XX necessary generate and XXXX, our revenue, model beyond view which and we in team, look assets million annual the in excess

U.S. our market. two this exceedingly domestic core the million, see match take newly will no levels, indication $X acquired months to GunBroker.com $XX guidance will to of a around our We GunBroker.com seeing profit the Demand and of annual adjusted million, We that fundamentals we're requirements have the fourth markets EBITDA. transactional higher margins, our through gross further for support volumes is assets. for The our quarter include from sales to and fundamentals demand significant spend fiscal we operations our capital slowing. marketplace to strong reflecting and Additionally, are us planned ammunition and believe in assets model. better

achieve to As previously to speaking We you quarter. [best] expanding in with the announced, we look expect our forward in profitability business. about this future

ready that So, concludes questions. comments. opening now to my We're take

it our pass Thank will moderator. back I So, you. to

Operator

and Thank today gentlemen, Rob and you. CEO; question-and-answer at instructions]. this Goodmanson, Rob And we Chairman and [Operator will time questions CFO; ladies Wagenhals, have Fred President Answering Director. conduct we Wiley, and session. our

Our Matt Partners, ROTH with first your Koranda comes Capital state question. question from please

Matt Koranda

thanks the questions. for guys, taking Hey,

commercial to the demand on wanted an off start Just with environment. update you could if ammo

right in maybe create at of I backlog, you the could that off the Does Are terms backlog about orders for that then as how where typically relatively you just in, thread in sort sort figure. fiscal likely stands the given is? deterrence ‘XX? even of up you are of far have if the booked full-year also booked prior for think looking any or new to a guys for now? disclose think able just year sort you past provided of we backlog guys the And

Fred Wagenhals

year the in weeks from If our million or we've everything days Yes, now about Payson weeks. in following orders. fulfil our continued over over some no At slowdown have back capacity a more had few And this election. the anything, time moved Fred our We've into Wagenhals. seen scale point the see right last we've Manitowoc. into have orders. We've our sales this the in I to in buy since and increased. consumer two we demand to equipment record-breaking facility And last big surge $XXX

-- three to three at we But now on probably at I caliber. you say, when And look you but to the months to got look close out we're So, feel would that out. very orders. months comfortable we're that, six

Matt Koranda

more gate then that capacity where us? what the or it. Got of to you in want understand Okay. to sort Fred, ammo time. current that loaded out be helpful the you've since due is quantify it'd your for then, And to expect of or And or could mentioned recent quarter also over from. expansion, coming you we just specifically kind capacity at next to, point speak And to also maybe it this surge two however add is

Fred Wagenhals

building say of we got Well, scaled very X want we're ammo, that, loaded a day. And million feel about would running I up everything right we're per depends and now recently couple to it but rounds a we've we supply now. XXX,XXX day. to control And confident items, scale-up on we've been where of under is all that rounds

our day. goal million was X,XXX X rounds So, day per or per rounds

Matt Koranda

And inventory safety just are supply stock, that potentially of makes sort get and tight? want are to I are where chain, it could we That to to of component you environment. touch of, to you coming But well, so as them could. we Okay. in days a in did bit sort to I like of demand would mentioned kind did on components where some notice tightness speak, guys you is How up little And that quarter. give guys build you sense. supply? still since speak I trying this add the you inventory strong can addressing kind assume looks last what supply of additional scrambling, a if still

Rob Goodmanson

Rob this that going answer question. is Matt, Goodmanson. Fair. to I'm

component, very we -- strong in -- case brass we a major believe a we position. As feel do we’re

to the not supply that. multiple primer have make primers. chain, suppliers We whole to of and We relationships goal We the just layered certain the stuff. continue supply maintaining reliable the and achieved leveraged other across contracts and large primer supplier of our with manage suppliers consistent necessary just

So, a I think good... we've got

Matt Koranda

it that in it. point a words sure don't So, put want is case? sounds like to but want though, Is mouth, put just to fine tight your primer relatively I still the make on

Rob Goodmanson

thankfully primer again, we tight. just very use will is don't But -- there It be supplier. one

the We little industry have contracts contacts multiple primers a and across and with just scares. are them bit

Matt Koranda

Got it.

that of first one more But from update it I'll Maybe you online, sort guys got past here. low-hanging an and to financing be guys then about have maybe the of press release to But fruit to around as some talked bit that. maybe you turns of from of priorities you now we've kind it's terms able get to see as turn there's and the that GunBroker but also see of you talk whatnot. me, I lines in add-on potential bring you that list just the in the what you talked of priority terms to that in and additional about on through where you put we've kind that? on Okay. can take ammunition of And think brought terms could headed? over platform, well and been in Obviously, wanted just product about little put some a payments

Rob Goodmanson

there. the we're of right priorities we’re of While talking, some kind hitting

GunBroker users one We best I million experience. we marketplace. marketplace. got the the really X to really enhance product and with is world's to are want lines. mean plus to of going leverage customer are host additional that being ways active and that do to offerings We additional I And online think we the leading

that with X% like with you're to last users. of the -- approximately I do On And we of only that, fruit. retention. things to revenues to to But an ticket GunBroker. is has our financing top to of their conversion can talked it's size. going bunch ACH the drive help going much A they're average feel of customer, come about this seems This I ammunition was the by grow us We going we'll available retention. of the hanging number help year, low pretty of for believe we also going see ammunition options a going a been to direct think really GunBrokers. One course, point sales thing.

are be going to with that company. you're So options I the going think financing see well-received to

Matt Koranda

it's consumer queue, fiscal material weeks recent year guys, demand update one way quick in the months, terms do there. and of the how it. you're know a how GunBroker a I'll in then running I rest relatively one. wanted over if trends and terms get so this just have any trended now has what to trending and you you months I’ll I or get rate for that elevated could? umbrella several from in talk maybe see under got But lied, last that of been wanted do GMV changed is speak, a promising but back see just bit seeing you Okay, in more that just you in of the little to just about this to in

Rob Wiley

Matt, Rob Hey Wiley. is this

GMV in actually a prior outpacing So was year. setting XXXX, year. your we're GMV record setting seeing In XXXX record

the For that. of we're indication year, any the in remainder seeing not of slowing

of excited the to very So come. year

Operator

Mark with Markets. Our question next Capital from Lake comes Street Smith

Mark Smith

First integration. fully on guys but still this with you've you a kind now at work it it's or little that feel online needs Do kind guys? be have add-on hit done and to got is just to service any it you on improving the bringing done you an here, point everything bit just on GunBroker you like there that need of of

Fred Wagenhals

you the real second working job are very we and IT their today that. for We're which they're -- much us integration planning is Fred the The closing but on being working were on Mark, is Wagenhals. our as we working this expected transaction, going made with team cooperative. platform to was marketplace while integration where we're easier well real GunBroker.com is probably, happy with, is none, who and the people

Mark Smith

gives what's to guys that and GunBroker kind wouldn't is look had the happening on haven't having transactions And you yet? on as and really lens talked or have any seen can a slowdown the price consumers much know even Does about with at now that that I GunBroker of that better in-house or things learn we sensitivity, you you you consumer you consumer day before? there have day from behavior, insights

Rob Goodmanson

us selling, is that products I think are to added insight manufacturing have well, products to with from GunBroker it's for that? insight directly optimistic put-on side that that for space the the going bullish very additional in the to go It's not, we with excited that lot very can We're a that win space where are and be huge but people which us. a have year. GunBroker’s there of this as coming for of for on yet. in only side, that We which not products extremely not

Mark Smith

And just pricing still here changes Excellent. you will buy they'll come they and any situation just seeing at in you peers or as look if from competitors ammunition, price? build any you pressure a or on are it any about it, we are or at where

Rob Goodmanson

a are a I'll quick SKUs down at There take very ran stab bit. little that fast a few and that. slowed had up

I that do think are truly is lot excessive they still out still build there, that is The a it very to most demand importing broad. there, will come. of of SKUs the of with possibly And ammunition. had it and

Mark Smith

take I you Okay. last But that just, is do have announcements business. And with as guys me kind we of contracts military at you've had versus some of from contracts, how good government think this the to one capacity the capacity look on able kind be and What military margins weigh on do new you consumer like, year? ammunition? a your contract to are

Rob Goodmanson

a go import will to for and probably Defense, the and was break capacity, that the even And and business. we moving getting contracts started a of military the comes with who with years we that of as Department you contract lot the everybody. in if allied world-class And the volume. as we we're future of it manufacturing. few with worked military performance that any in couple acquire to think can't machine, for a before potential and military But will. grade requirements a the us team we going the company, but contracts have to But were into fabulous U.S. be pursue perform very Armor unless about, actually job different helped say branches can put there's that some to any the we ago respects. had that or we team this of this products answers. together equipment that, far or allied that going things secure confident forward. those Yes, we've prior I anything, everything their the done with under to to bright of the opportunities Let's when not the MilSpec We STREAK talk levels do We're that within a go an in moving we're Military supply all few But applications. U.S. that Piercing a in of and not is think nation, we

Mark Smith

ammunition I hits and And great. focused ammunition. than rather It of just now look guys forward, the technology guys you that manufacturer more sounds really that transitioning proprietary always just And that That's differentiated specialty have being a to been still like innovation kind as maybe manufacturer. point so guess we so are company, more plain of the more Okay. and as is than on goal? products, you selling just you ammunition, from

Rob Goodmanson

what We us. want any working to reason we be to for do. see mean, far we don't change so to I disrupter. very try And well, a

like. You think way, you'd And move whatever line. to and ecommerce the a can product it's that top change. need But us I platform is solid call antiquated our of

Fred Wagenhals

going cheapest selling some Fred. on this or blue on to white the at Mark, I red be a a be box that's it we're the and ever price. not don't be think is to us. going for It's going to company little lettering shelf

Operator

Macro question. Ops, state With And Brandon our please comes question from next Beylo your

Brandon Beylo

one question. just had quick I

of and centers, kind an of it I the -- age. was believe to start in, April you're people to, lot such online center only moving pandemic. towards did was doing the that a opened of call you're Going digital you move are back just guys And call when kind the a XXXX. when it you aggressively built interesting way at And back

of building well center, it's through about perspective, know kind from why an and kind you were early us call operational So, to thinking take through I it doing what went decided days into and deciding of and But you the that and since. decision-making it? on maybe go done why really

Fred Wagenhals

million previous Chris my way. experience, center. million wanted we partner took to to we a just finding before. more center, guy both in us And a from backorder continued that it. done and call to selling Larson's that experience they're took the my And several XXX XXX million And run we previous than are a found or And And employees, they XXX guy doing and do and had off happened with right XXX to it April service company for we call customer finally now him had a and in March. now. it's Well right in, with in it bring years right in helping build XX million

guy the say, was everything. -- would timing time as it. to at And I right picked is it right So we've the do

Brandon Beylo

revenue next do your of that seeing three higher orders, percentage then you're side will you government split a and your most years, military a military Got and the generation which I’ll Or retail be over the to from more And it. maybe it, what it percentage the the to I'll between Will the revenue percentage you'll out get question it do of five from a comes government, When looking more retail mix hop-off. call revenue international, and one comprise think process? there was lumpy so probably think you revenue? then retail? from higher that your then

Fred Wagenhals

a I just point that might these And working team But retail size at always worth we that the know one I'll the we've think Well, that. this on, stab take but time. of some has to I XX% of company. orders XX% thought be in a got been our

someday for a to split, -- to hopefully speaking the myself. military, XX% of XX% consumer market. the see XX-XX I'm So, just where done we're and like I'd

Brandon Beylo

have those or actual and some or amounts signed plans happen, of of terms any number? that, any plans on know stuff you releases dollar like have in actual in have deals order do when disclosing have disclosing, I the releasing on been if deals maybe terms or you And bringing those Because guys you do but not? on been

Fred Wagenhals

we're United from kind States of the of standpoint, at Government. Well, our mercy the

as things So, exciting press have with any some them releases said that earlier, And, able we're get by on but not them, Rob we that we're very people is to to working do love do we approval. we'd about there that. to that's run to talk to

at mercy the So, we're States United Government. of

Brandon Beylo

early the to know at more of to you I margin kick think or to it realizing way you guys call expansion, that is operational basis, in was capability? of comes On you do in percentage guys know terms the leverage this question. point? of leverage a now. And too When it one -- at full you're operational starting where XX% I that Are at XX% the are of they, there, see way lot a

Rob Wiley

over financial way. see you bit are a Rob $XXX But as Brandon, expect margins gross to our this broken year growing of guidance revenue next loaded answer mix little I'm we one-third past question, fiscal year, to the operations at this to is fiscal of part just so statements really we've do XX%. our in your announced of of we've rapidly, margins from from two-thirds of been this increase approximately in in answer the previously out growth million. kicking next roundabout by to the off Wiley. at kind with fiscal going can GunBroker our Historically, GunBroker. to XXX% a the our were ammo and And look and the operations. the addition of two the And next with margins year. we we able in them And our year, had loading to they margins

Brandon Beylo

it. Got

Fred Wagenhals

that a there. right, big thing, makes other The difference

not GunBroker, in manufacturing just Now, ammo. We're a we're we've company making acquired anymore that marketplace. the

Brandon Beylo

just think of as you maybe business think re-rate Do to a and commodity you guys see at public than maybe are market some going the a more even point, you producer? you of eventually marketplace

Rob Goodmanson

they Yes, Yes. I think are.

Operator

with question comes Matt question. your Partners. ROTH state Koranda next Please Capital Our from

Matt Koranda

Thanks follow-up. for taking the

pipeline could to an to touch acquisition be think see could way transact then, mention happen GunBroker continue give interestingly, get Any you balance fiscal see it sort Fred and to to look guess, us really Just M&A that of we to of Would on something preferred around post at if issuance. on sort how post that? I quantify kind wanted cash this helpful acquisitions. of, looks transactions? year. and could potential Maybe additional just you the update process willingness if I and was the And that sits your and those thought where

Fred Wagenhals

Well, this was Fred.

something X our adding I by And think is, marketing. for has tent our of or flashlight We're at accretive, be fits company. company our this looking up be in Directors, of we're is it a thing game it that and me, We're looking add first it And to for not to family of companies, and or looking Board a has accretive can X For to channels us? plan. it X to X. to

Rob Wiley

cash close It with And in a your we Matt, million stock $XXX first was answer the to combination question, acquisition. approximately debt. of the year and ended cash to

of million after We took had we $XX which And with completed closed offering, million on in you was approximately preferred total $XX we that proceeds. GunBroker debt cash. million. gross as $XX in was mentioned, books, out their So of the which the that, had

Operator

Capital. from Our with Jon next Berman question Berman comes

Unidentified Analyst

to suppliers, you prices? of increases commodity the if broader give along long-term have the if for wondering overview And sales of was timeframe potential could in could you with sort exposure your a about the talk you deals list? I

Rob Wiley

price passed exposure of product the the have the increases customers. increases, of have to through we Yes, we industry, increases commodity but our consistent to with our prices on do rest

Operator

James. comes with Raymond question next from Michael Our Dwyer

Michael Dwyer

profit do the Rob, margin where you fiscal the you some see if coming color year? would gross be over And give of that, around that segmentation helpful? could

Rob Wiley

Hi, Mike you. thank and

gross could we margin rapidly. increasing is So -- our

due year. our scale, expect throughout previously, increases XX% that see with we that our continuing kicked historically potential mentioned to grow margins there’s of As I this next approximately very margins have excited and off fiscal GunBroker.com to I'm to

Michael Dwyer

from in Street Fred by should mentioned a word I've look you your a times the going And How forward? re-rating introductory marketplace this at heard do see comments. the few standpoint? that

Rob Goodmanson

Rob -- marketplace a to straight realize is Part to will a after and company. here. be not company. way this think will really place to doing is they carry a moving forward we numbers the manufacturing this we're is Street I out different year of as see, it, and This than the will do what manufacturing be. that, plan to next starting that year, Mike our the valuation The that Hi, a Goodmanson year just the is new I and come think was actually

Fred Wagenhals

my car experience And it product little just you on we die-cast was probably did that T-shirt, before XXX Performance, line. with I past SKUs bought Action this saw We there. or Mike, didn't and we because question Fred. buy a GunBroker, stuff lot, not just to I've we GunBroker my this we is asked other put a over. is what it had been I be answer have did we could -- knew

So the GunBroker. grow plan is to

Michael Dwyer

SKUs on XXX see you GunBroker's website? Could

Fred Wagenhals

Probably.

Operator

from Our question Please comes Carter with next your question. RBC. state Paul

Unidentified Analyst

Hi months. to guys. all correct? I that quarter, the you little talk to be and that very running are you guys Is facility big -- if going going in to you it's the appreciate that's XX a shooter. Great doing. new I much. about And I understood about correctly, work be and want up bit Thank

Rob Goodmanson

in completed like send everything Goodmanson. there. Rob later. and bunch Might Manitowoc. just I'd we'll is right picture a do dirt We we're moved. being here broke looks ground now, but just Yes. it it X in of a to what this June of ago like about you by it's move anxious It will a week Yes, be to

Unidentified Analyst

that's right. Yes,

of I question hear anything on is, plan really about that you didn't facility or how carrying that the new cost my of operational surrounding cost facility? So the that

Rob Goodmanson

I was The think it. or $XX however, I million. We'll on $X. believe of involved, a beneficial. about the mortgage we TIF There's facility money carry very -- cost it's is land, paid just

Unidentified Analyst

Okay. appreciate I answer. the

ammo? question, don't curiosity developed mind. a Inc. the one So want Who AMMO, if to I'm ask brilliant shareholder the of idea you STREAK I of

Fred Wagenhals

slight It patented, and and use pay a in that by very of Louisiana forever. was that Lafayette And University developed patent we patent. royalty the we to it’s own

Operator

you. Thank

Beylo Please Ops. comes from Brandon your question. state Our next with Macro question

Brandon Beylo

guys. Hey,

it I was I've question. just more but thought Sorry, one got done,

Have the disrupting growing, the [Stone clearly industry going the differentiated are from industry doing just or or any otherwise some of seen about kind his alluded pushback manufacturers innovation -- comments. care seen it's and term, fast ammo manufacturers like just River]? for of themselves with to to or better larger lackadaisical, So in you you gun do whether you of what position and earlier our just the & as to guys super-boring them and Fred attempted that's sort still that's, of retaliation lack with marketplace products Wesson adjust doesn't gun see or an Smith you the trying Have a really on? we're to

Fred Wagenhals

want for we've wishes This copy think Wagenhals. come like a had around, or in companies a to there's done. given we'd and Fred we've ammo About tried anybody year we and seen if to licensing to ago, future the I product. -- us, but our us haven't to we haven't STREAK license street I decide anybody what is license opportunities But

Brandon Beylo

decided And was it. wasn't licensing, just that. not thinking reason that assume, behind a what you why came that first it I you a in Was to at a Got Is offer you deal that? turn it that -- to Or for there for terms turn favorable down license time? your you of us?

Fred Wagenhals

went produce test had sure able that to don't just made I what out market market for. good think product. and first had before wanted the and licensed we were time, ever we the we to the And in and we at we orders a foothold But

Robert Goodmanson

on. to Goodmanson. little a add just is This And Robert

don't think are taken You they've we've How mad. think them you years their I But didn't to these Federal business lackadaisical, just just it's XXX. had hard a I it's to different without that very And change make everybody do anybody have lackadaisical. and mentioned for XXX model. approach. companies, we for just So, mad? making change they being Winchester for had

Brandon Beylo

licensing, would it So to And once at if to keep feel comfortable like don't sounds like in fulfilling do and that enough not you guys licensing backlog, comfortable say maybe have going? do developing would for you're you're of what you you're existing would capacity in you be work product, your have something and to but to orders. all you're add room more kind add you your you than

Rob Goodmanson

Let's answer that with a solid maybe.

Operator

time. Thank at it for you. management you. And closing are no this questions there I'll to back remarks. turn Thank further

Fred Wagenhals

thank grow. time day forward talk watch to a guys Well, you the have good to us and We you. and next we look

Operator

conference. Thank Have day. All concludes today's may a you. great parties This disconnect.

AMMO (POWW) 30 Jun 212021 Q4 Earnings call transcript