(POWW) 2023 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the AMMO, Inc. fiscal third-quarter 2023 earnings call. (Operator Instructions) Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes.

女士們，先生們，謝謝你們的支持。下午好，歡迎來到 AMMO, Inc. 2023 財年第三季度財報電話會議。 （操作員說明）本次電話會議的參與者請注意，本次電話會議的音頻將通過互聯網進行現場直播，並且還會被錄製以供播放。

I would now like to turn the call over to Scott Arnold of CoreIR, the Company's Investor Relations firm. Now please go ahead, sir.

我現在想把電話轉給公司投資者關係公司 CoreIR 的 Scott Arnold。現在請繼續，先生。

Good morning, and thank you for participating in today's conference call. Joining me from AMMO's leadership team are Fred Wagenhals, Chairman and Chief Executive Officer; Rob Wiley, Chief Financial Officer; and Jared Smith, President and Chief Operating Officer.

早上好，感謝您參加今天的電話會議。和我一起來自 AMMO 領導團隊的是董事長兼首席執行官 Fred Wagenhals； Rob Wiley，首席財務官；和總裁兼首席運營官 Jared Smith。

During this call, management will be making forward-looking statements, including statements that address AMMO's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in AMMO's most recently filed periodic reports on Form 10-K and Form 10-Q, the Form 8-K filed with the SEC today, and the company's press release that accompanies this call, particularly the cautionary statements.

在此次電話會議中，管理層將發表前瞻性聲明，包括闡述 AMMO 對未來業績或運營結果的預期的聲明。前瞻性陳述涉及可能導致實際結果與這些陳述存在重大差異的風險和其他因素。有關這些風險的更多信息，請參閱 AMMO 最近提交的 10-K 表格和 10-Q 表格定期報告、今天向美國證券交易委員會提交的 8-K 表格以及隨附的公司新聞稿中描述的風險因素這一呼籲，尤其是警告性聲明。

Today's conference call includes non-GAAP financial measures that AMMO believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure to net loss, its most directly comparable GAAP financial measure, please see the reconciliation table located in the company's earnings press release. The content of this call contains time-sensitive information that is accurate only as of today, February 14, 2023. Except as required by law, AMMO disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

今天的電話會議包括 AMMO 認為可用於評估其業績的非 GAAP 財務指標。您不應孤立地考慮此附加信息或將其作為根據 GAAP 編制的結果的替代。有關此非 GAAP 財務指標與淨虧損（其最直接可比的 GAAP 財務指標）的調節，請參閱公司收益新聞稿中的調節表。本次電話會議的內容包含時效性信息，截至今天，即 2023 年 2 月 14 日，這些信息都是準確的。除法律要求外，AMMO 不承擔任何公開更新或修改任何信息以反映本次電話會議後發生的事件或情況的義務.

It is now my pleasure to turn the call over to Fred Wagenhals.

現在我很高興將電話轉給 Fred Wagenhals。

Thank you, and I appreciate everyone joining us for our fiscal third-quarter 2023 earnings call. I would like to start the call by saying how excited I am to introduce our newest management team member, President and COO, Jared Smith, to our shareholders. The management team spent a lot of focused time over the past year, searching for the right person to join us, to help us refine our operations as we moved into our new manufacturing facility at Manitowoc.

謝謝，我感謝大家加入我們的 2023 財年第三季度財報電話會議。我想在電話開始時說，我很高興向我們的股東介紹我們最新的管理團隊成員、總裁兼首席運營官 Jared Smith。在過去的一年裡，管理團隊花了很多時間來尋找合適的人選加入我們，以幫助我們在搬進馬尼托瓦克的新製造工廠時改進我們的運營。

Jared is the one. And from what I've seen in just the past month since he came aboard, the Board and our management team did a great job in finding someone who will be a critical piece to take this company to the next level of growth. Jared and Rob Wiley, our CFO, will discuss the market environment and our performance in detail across both the manufacturing and marketplace segment of our business. But I did want to comment on a few items before I hand the floor over to my colleagues.

賈里德就是其中之一。從他上任後的過去一個月裡我所看到的情況來看，董事會和我們的管理團隊在找到一個能將公司帶到下一個增長水平的關鍵人物方面做得很好。 Jared 和我們的首席財務官 Rob Wiley 將詳細討論我們業務的製造和市場部分的市場環境和我們的表現。但在我將發言權交給我的同事之前，我確實想對一些項目發表評論。

We started this company in 2016 with the vision and the mission to innovate and capture a meaningful share of the ammunition market, picking our spots for acquisitions, staying focused on always improving manufacturing operations, all while working to bring our customers the products they desire. We have grown by leaps and bounds in these short seven-plus years, and I am proud of what we've accomplished. But there is much work left to do. And we now have the team assembled to meet these challenges and are excited about the opportunities that lie before us.

我們於 2016 年創立了這家公司，其願景和使命是創新並在彈藥市場佔據有意義的份額，選擇我們的收購地點，始終專注於改善製造運營，同時努力為我們的客戶提供他們想要的產品。在這短短的七年多時間裡，我們取得了突飛猛進的發展，我為我們所取得的成就感到自豪。但是還有很多工作要做。我們現在組建了團隊來應對這些挑戰，並對擺在我們面前的機遇感到興奮。

Regardless of the political spin we all hear coming out of Washington, the US is already in the throes of a recession. And the inflationary drivers are hitting consumers hard in their pocketbooks. Those pressures are being felt across the market, both by AMMO and its peers alike. However, we are responding to those challenges. And Jared will outline what we are doing to best position our company within the environment and will highlight a number of the positive changes we have already made and will continue to make in the face of these headwinds as we continue to increase capacity and operational efficiencies.

不管我們都聽到來自華盛頓的政治動向如何，美國已經處於經濟衰退的陣痛之中。通貨膨脹的驅動因素正在嚴重打擊消費者的錢包。整個市場都感受到了這些壓力，包括 AMMO 及其同行。然而，我們正在應對這些挑戰。賈里德 (Jared) 將概述我們為使公司在環境中處於最佳地位而正在做的事情，並將重點介紹我們已經做出的一些積極改變，並將在我們繼續提高產能和運營效率的同時，面對這些不利因素繼續做出改變。

I've spoken on a few occasions about the development at GunBroker.com. And we are excited that these enhancements are going to start rolling out this spring so that marketplace users, both buyers and sellers, can take advantage of these new opportunities. This enhanced platform will significantly leverage the amazing GunBroker.com platform, driving greater revenues and profitability to the AMMO's bottom line.

我曾多次談到 GunBroker.com 的發展。我們很高興這些增強功能將於今年春天開始推出，以便市場用戶（包括買家和賣家）可以利用這些新機會。這個增強的平台將顯著利用令人驚嘆的 GunBroker.com 平台，為 AMMO 的底線帶來更大的收入和盈利能力。

We are continuing to explore the market for additional best-in-class folks to join our team. Jared is a prime example of the new leadership we are adding to the mix, bringing 17 years of very strategic and focused experience to the table. We have already spent a lot of time together speaking with both industry and marketplace about our plans going forward.

我們將繼續探索市場，以吸引更多一流人才加入我們的團隊。 Jared 是我們正在加入的新領導層的典型代表，他帶來了 17 年非常具有戰略意義和專注的經驗。我們已經花了很多時間與行業和市場討論我們未來的計劃。

At this time and without further ado, I would like to turn the call over to Jared Smith, AMMO's new President and COO. He will walk you through the current state of our operations and what we believe the future has in store for AMMO, its team, and our shareholders.

此時，事不宜遲，我想將電話轉給 AMMO 的新總裁兼首席運營官 Jared Smith。他將向您介紹我們目前的運營狀況，以及我們相信 AMMO、其團隊和我們的股東未來的發展方向。

Thank you, Fred. Good morning, everyone. First, I want to thank the AMMO team for the opportunity to be here as President and COO. I joined the company on January 6 of this year, so I've been in the saddle for a mere 39 days. So bear with me because we've got quite a bit of ground to cover.

謝謝你，弗雷德。大家，早安。首先，我要感謝 AMMO 團隊讓我有機會來到這裡擔任總裁兼首席運營官。我是今年1月6日入職的，在馬鞍上才39天。所以請耐心等待，因為我們還有很多內容要講。

I've spent the last 17 years in the firearm and ammunition sector. And I've always seen AMMO, Inc.'s ammunition and marketplace businesses, following the acquisition of GunBroker.com, as best in class for their space and potential. What Fred and the team accomplished over the last seven years is truly remarkable. The transformative addition of the GunBroker.com marketplace to the ammo portfolio certainly made the entire market stand up and take notice.

在過去的 17 年裡，我一直在槍支和彈藥行業工作。在收購 GunBroker.com 之後，我一直認為 AMMO, Inc. 的彈藥和市場業務在空間和潛力方面處於同類最佳水平。弗雷德和他的團隊在過去七年所取得的成就確實令人矚目。 GunBroker.com 市場對彈藥產品組合的變革性補充無疑使整個市場站起來並引起注意。

I ultimately joined this team because of the huge potential of the operations, opportunities to innovate, the ability to bring transformative change, and continue the growth trajectory of this company. I'm excited to share my vision for the company with you. But before we begin, one must understand the current state of the ammunition market as well as AMMO, Inc.'s position in it.

我最終加入這個團隊是因為運營的巨大潛力、創新機會、帶來變革的能力以及延續這家公司的發展軌跡。我很高興與您分享我對公司的願景。但在我們開始之前，必須了解彈藥市場的現狀以及 AMMO, Inc. 在其中的地位。

For the last two quarters, the industry has seen serious headwinds from its record highs in 2021 and early '22. Consumer confidence and increased inflations caused an erosion of the customer's wallet for other items such as gas, milk, and bread. While our cost for copper, zinc, lead, and labor are all up and ammunition prices on the shelf are down in comparison, we've seen margin compression in almost every sector. The non-vertically integrated manufacturers, such as AMMO, get squeezed in the middle.

在過去兩個季度中，該行業在 2021 年和 22 年初創下歷史新高後遭遇了嚴重的逆風。消費者信心和通貨膨脹加劇導致客戶購買其他物品（例如汽油、牛奶和麵包）的錢包受到侵蝕。雖然我們的銅、鋅、鉛和勞動力成本都在上漲，而貨架上的彈藥價格相比之下有所下降，但我們幾乎在每個部門都看到了利潤率壓縮。非垂直整合的製造商，如 AMMO，被擠在中間。

AMMO produces cases, loads, and manufactures some but few of its projectiles and none of the primer component. The supply chain for gunpowder nitrocellulose is more difficult than ever. And the team has been sourcing European primers and powders at high prices and unpredictable volumes to sustain their production. All of these issues lead to high cost in the time of a normalizing market, especially for 9 and 223 calibers.

AMMO 生產彈殼、裝載和製造部分彈丸，但不製造底火組件。火藥硝化纖維的供應鏈比以往任何時候都更加困難。該團隊一直在以高價和不可預測的數量採購歐洲底漆和粉末，以維持他們的生產。所有這些問題都會導致市場正常化時的高成本，尤其是 9 口徑和 223 口徑。

Our factories are not pivot overnight. And we will continue to see an adverse effect in this last quarter as we continue to sell off higher-price components, flushing out slower-moving inventory and sell off commodities, which will have a negative impact on margins. However, our sales and operations are pivoting. But no large manufacturing operation is capable of pivoting at the rate Wall Street or our shareholders would like to see.

我們的工廠不會在一夜之間轉變。我們將繼續在最後一個季度看到不利影響，因為我們將繼續出售價格較高的組件，清理流動較慢的庫存並出售商品，這將對利潤率產生負面影響。但是，我們的銷售和運營正在發生變化。但沒有一家大型製造企業能夠以華爾街或我們的股東希望看到的速度進行調整。

To be blunt, as our earnings and forecast for this quarter reflect, we were not fully prepared as a manufacturer for this shift. AMMO spent 2021 and 2022 manufacturing commodity products to meet consumer demand. We manufactured commodity products because they were easier and higher throughputs with less cost than their counterparts. We manufactured commodity product as a larger percentage of sales because of simplified planning and logistics.

坦率地說，正如我們對本季度的收益和預測所反映的那樣，我們作為製造商並沒有為這種轉變做好充分準備。 AMMO 將 2021 年和 2022 年用於製造商品以滿足消費者需求。我們製造商品是因為它們比同類產品更容易、產量更高、成本更低。由於簡化了規劃和物流，我們生產的商品佔銷售額的比例更大。

Our purchasing and sourcing opportunities were based on this trend. Sales teams were oriented towards top-line revenues like most growing companies. And we weren't sufficiently focused on our brand and margin maintenance during this time, which leaves us where we are today.

我們的採購機會正是基於這一趨勢。與大多數成長型公司一樣，銷售團隊以收入為導向。在這段時間裡，我們沒有充分關注我們的品牌和利潤率維護，這讓我們處於今天的位置。

I share this with you so everyone is aware of how we got here. So you can see the trajectory of where we are going. It is important to note, AMMO's rifle and pistol brass manufacturing capability is truly unmatched for its open capacity and potential. In previous roles as an industrial buyer. supplier. and consumer of AMMO's products, I've always greatly appreciated the quality of the pistol and rifle brass that came off the lines, especially the uniqueness of the STREAK technology that they brought to market.

我與您分享這個，以便每個人都知道我們是如何走到這一步的。所以你可以看到我們要去的地方的軌跡。值得注意的是，AMMO 的步槍和手槍黃銅製造能力因其開放能力和潛力而真正無與倫比。曾擔任工業採購員。供應商。作為 AMMO 產品的消費者，我一直非常讚賞下線的手槍和步槍的黃銅質量，尤其是他們推向市場的 STREAK 技術的獨特性。

Behind the scenes, the AMMO team was not stagnant and knew they must pivot. They were very busy constructing a manufacturing facility to produce a completely different offering while attending to never-before-seen consumer demand. In August of 2022, we moved into a new 185,000 square-foot brass manufacturing, loading, and testing facility that can produce calibers that ranged from 25 Auto up to 50 BMG, and everything in between.

在幕後，AMMO 團隊並沒有停滯不前，他們知道他們必須轉向。他們非常忙於建造製造設施以生產完全不同的產品，同時滿足前所未有的消費者需求。 2022 年 8 月，我們搬進了一個新的 185,000 平方英尺的黃銅製造、裝載和測試設施，可以生產從 25 Auto 到 50 BMG 以及介於兩者之間的所有口徑。

This is where we refine and enhance the operations at all levels to position the company for a bright and profitable future. It is here where our skill set and core competencies are ready for the real demand that will thrive in strong markets and execute profitably in normalized markets. It is here where we will be positioned to react in a nimbler fashion to the market's macro trends.

在這裡，我們改進和加強各級運營，使公司為光明和盈利的未來做好準備。正是在這裡，我們的技能組合和核心競爭力已為真正的需求做好準備，這些需求將在強勁的市場中蓬勃發展，並在正常化的市場中實現盈利。正是在這裡，我們將能夠以更靈活的方式對市場的宏觀趨勢做出反應。

What are those trends and why do they matter? On the last two years, [16 million] new consumers purchased a firearm for the first time. Secondly, the shooting sports captured the fastest growing high school sport in the US, trap shooting. The third macro trend is conflict in Europe -- on the European continent have resulted in an environment where those countries will be restocking their inventories for the next 10 to 15 years. This is important.

這些趨勢是什麼？為什麼它們很重要？在過去兩年中，[1600 萬] 新消費者首次購買了槍支。其次，射擊運動囊括了美國發展最快的高中運動——陷阱射擊。第三個宏觀趨勢是歐洲的衝突——在歐洲大陸，這些國家將在未來 10 到 15 年內補充庫存。這個很重要。

The fourth macro trend that we're following is consumers are looking for longer range, flatter, heavier payloads with greater energy delivered to their targets than ever before across both pistol and rifle. That's both commercially and militarily. And the last trend is commercial [LE] and the military are looking for lead-free alternatives.

我們關注的第四個宏觀趨勢是，消費者正在尋找比以往任何時候都更遠、更扁平、更重的有效載荷，以及比以往任何時候都更強大的手槍和步槍。這既是商業上的，也是軍事上的。最後一個趨勢是商業化 [LE]，軍方正在尋找無鉛替代品。

So how do we take these macro trends and adjust our business model? Our consumers and industrial partners are wanting to shift their production to higher performance products that meet the needs of these macro trends. Our company is one of the only manufacturers with the open capacity and skill set to meet this demand today. Our state-of-the-art plant came online at an opportune time to position our organization to better meet those challenges.

那麼我們如何把握這些宏觀趨勢，調整我們的商業模式呢？我們的消費者和工業合作夥伴希望將他們的生產轉移到滿足這些宏觀趨勢需求的更高性能產品。我們公司是當今僅有的具有開放能力和技能的製造商之一，可以滿足這一需求。我們最先進的工廠適時上線，使我們的組織能夠更好地應對這些挑戰。

We will brand around and deliver new technology to this target market. And we will enable our industrial partners to meet those needs, both domestically and internationally. This shift to brass manufacturing as a larger percentage of our business and loading high-performance rifle ammunition manufacturing requires less working capital, enables higher margins, and better cash flow. We will continue to leverage our relationships to diversify our supply chain, allowing us to better plan, price, and maintain margin in our loaded ammunition operations. We'll be freeing up cash currently stuck in inventory and streamlining our purchasing around new domestic supply lines.

我們將圍繞這個目標市場打造品牌並提供新技術。我們將使我們的工業合作夥伴能夠滿足國內和國際的這些需求。這種向黃銅製造的轉變在我們的業務中所佔比例更大，裝載高性能步槍彈藥製造需要更少的營運資金，從而實現更高的利潤和更好的現金流。我們將繼續利用我們的關係使我們的供應鏈多樣化，使我們能夠更好地計劃、定價和維持我們裝填彈藥業務的利潤。我們將釋放目前滯留在庫存中的現金，並圍繞新的國內供應線簡化我們的採購。

I report on the guidance for the next year, but we are knee-deep into the re-forecasting and budgeting process. We are preparing a budget and a forecast around a new set of execution principles for this enhanced footprint. While I pause on our guidance, everyone should know that in the last 40 days, we've sold out of our entire current capacity for long-action rifle brass.

我報告了明年的指導意見，但我們正在深入進行重新預測和預算編制過程。我們正在圍繞一套新的執行原則為這種增強的足跡準備預算和預測。雖然我暫停了我們的指導，但每個人都應該知道，在過去的 40 天裡，我們已經售罄了目前所有的長動步槍黃銅產能。

In the last 40 days, we've secured domestic gunpowder sources, which will free up cash flow, enabling us to sell off our high inventories of European powders and primers. AMMO, Inc. will finally compete in the high-performance, high-margin categories that it hasn't effectively participated in due to a lack of premium powders. We are in a better position to execute, and our outlook is healthier today than it's ever been.

在過去的 40 天裡，我們已經獲得了國內火藥來源，這將釋放現金流，使我們能夠出售歐洲火藥和底漆的高庫存。 AMMO, Inc. 最終將在由於缺乏優質粉末而未能有效參與的高性能、高利潤類別中展開競爭。我們處於更好的執行位置，我們今天的前景比以往任何時候都更健康。

We are in a better position because we have a tool that we've not leveraged in the past. With the company's purchase of GunBroker, we have solidified a way to aggregate data and cultivate a wealth of opportunity. For example, a diverse group of participants, from hunters to sportsmans to long-range shooting enthusiasts, all flocked to the website; and every search, purchase, or bid they initiate is captured for us.

我們處於更好的位置，因為我們擁有過去未曾利用過的工具。通過公司對 GunBroker 的收購，我們鞏固了一種聚合數據和培養大量機會的方式。例如，各種各樣的參與者，從獵人到運動員再到遠程射擊愛好者，都湧向了該網站；他們發起的每一次搜索、購買或出價都會為我們捕獲。

This priceless cultivation of data does not exist in this form for anyone else in the market. This allows us to make data-driven, market-oriented decisions that will fuel our investments. This will enable us to find the areas of real performance and demand on a real-time basis. This is the new trend line for the ammunition division.

這種無價的數據培養對於市場上的任何其他人來說都是不存在的。這使我們能夠做出以數據為導向、以市場為導向的決策，從而推動我們的投資。這將使我們能夠實時找到實際性能和需求的領域。這是彈藥部門的新趨勢線。

I told the story 100 times over the last 40 days; and I will continue to tell the story every day for the next 180 days. For the investors on the phone listening or watching for the first time, GunBroker facilitates a legally compliant and thoroughly documented exchange between a buyer and a seller, either through an auction or the buy it now capability, one item, one transaction at a time. And this is incredibly important to understand -- one item, one transaction at a time.

在過去的 40 天裡，我把這個故事講了 100 遍；在接下來的 180 天裡，我將繼續每天講述這個故事。對於第一次通過電話收聽或觀看的投資者，GunBroker 促進了買賣雙方之間合法合規且有完整記錄的交易，無論是通過拍賣還是立即購買功能，一次一件物品，一項交易。理解這一點非常重要——一次一項，一項交易。

GunBroker does all this while meeting every federal and state regulation for the exchange of firearms. It has no inventory and does not receive or ship anything. It merely facilitates the transaction. We are in the top 500 websites for traffic in the US. And over 5 million unique users come to our site in any given month.

GunBroker 在滿足所有聯邦和州的槍支交易法規的同時完成了所有這些工作。它沒有庫存，也不接收或運送任何東西。它只是促進交易。我們是美國流量排名前 500 的網站。任何一個月都有超過 500 萬獨立用戶訪問我們的網站。

Under any objective metric, we are the 600-pound gorilla in this space. And we have been and remain in that position, notwithstanding the fact that GunBroker has not developed the ability to cart product, process credit card fees internally, or capture advertising revenue in any meaningful way. This all changes in 2023, 2024 calendar year.

在任何客觀指標下，我們都是這個領域的 600 磅重的大猩猩。儘管 GunBroker 尚未開發出推車產品、內部處理信用卡費用或以任何有意義的方式獲取廣告收入的能力，但我們一直處於並將繼續處於該位置。這一切都將在 2023 年、2024 年發生變化。

This 600-pound gorilla becomes the 900-pound gorilla that it was meant to be. GunBroker is transitioning from a one-item-per-transaction platform to a cart-based platform. The GunBroker team has been working around the clock since acquisition, testing, developing, and building relationships with the banking community as well as the distribution dealer network across the country to make this next step a reality.

這只 600 磅重的大猩猩變成了它本應成為的 900 磅重的大猩猩。 GunBroker 正在從單件交易平台過渡到基於購物車的平台。 GunBroker 團隊自收購、測試、開發並與銀行界以及全國各地的分銷商網絡建立關係以來一直在夜以繼日地工作，以使下一步成為現實。

When we go live this summer, we will be positioned to not only facilitate the sell or directly sell a firearm to the consumer, but also support and leverage that foundational transaction with the sale of the scope, swing, scope mounts, ammunition, camouflage, boots, water bottles, batteries -- you get the picture. For any new hunting, shooting consumer, the gun is most likely the least expensive purchase you make, certainly when you view and value the total aggregated transaction of all complementary accessories required by the market to enjoy the shooting sports, hunting experience,

當我們今年夏天上線時，我們的定位不僅是促進銷售或直接向消費者銷售槍支，而且還將通過銷售瞄準鏡、搖擺、瞄準鏡支架、彈藥、迷彩、靴子、水瓶、電池——你明白了。對於任何新的狩獵、射擊消費者來說，槍支很可能是您購買的最便宜的東西，當然當您查看和評估市場為享受射擊運動、狩獵體驗所需的所有輔助配件的總交易時，

Hunting and shooting sports participants will have a user-friendly marketplace where the consumer can interact with new and used equipment dealers, distributors, and other enthusiasts reselling their equipment to kit out their next endeavor. In 2022, GunBroker facilitated [$1.2 billion] in exchange on our marketplace website based on singular transactions between a buyer and seller with no ability to cart products.

狩獵和射擊運動參與者將擁有一個用戶友好的市場，消費者可以在其中與新舊設備經銷商、分銷商和其他愛好者互動，轉售他們的設備以裝備他們的下一次嘗試。 2022 年，GunBroker 在我們的市場網站上促成了 [12 億美元] 的交易，基於無法購買產品的買賣雙方之間的單一交易。

In the past, GunBroker has only received revenue based on a fee for processing that singular transaction. Going forward, we will have an incredibly robust and user-friendly platform before the market that presents GunBroker with multiple revenue sources.

過去，GunBroker 僅根據處理單筆交易的費用獲得收入。展望未來，我們將在市場面前擁有一個非常強大且用戶友好的平台，為 GunBroker 提供多種收入來源。

GunBroker operates in a federal and state-regulated environment. GunBroker is roughly 6% of the entire firearm trade in the US. You got to think about that -- 6%. We ship to multiple locations, managing different state sales tax implications, all while managing different buyers and sellers. Our customers value data privacy, value in real terms, and efficiency. We manage this value offering all while maintaining the largest auction and marketplace of its kind for this industry.

GunBroker 在聯邦和州監管的環境中運作。 GunBroker 約占美國整個槍支貿易的 6%。你必須考慮一下——6%。我們運送到多個地點，管理不同州的銷售稅影響，同時管理不同的買家和賣家。我們的客戶重視數據隱私、實際價值和效率。我們管理這一價值提供，同時維持該行業同類最大的拍賣和市場。

This is the moat that protects us. The more complicated and intricate space we operate in, the higher the cost of entry is for our competition. We are the largest player in this space. And the security and the tech to make the operational efficiencies flow seamlessly keep us in this space. One might ask, why is this not already been done or communicated before now?

這是保護我們的護城河。我們經營的空間越複雜，我們的競爭進入成本就越高。我們是這個領域最大的參與者。使運營效率無縫流動的安全性和技術讓我們留在這個領域。有人可能會問，為什麼以前沒有做過或沒有溝通過？

The real answer is that this takes time and dedicated teams to execute at this scale. Many software houses don't want to have anything to do with this firearm-centric marketplace. Banking relationships had to be forged, transactional volume secured, tested, and accounted for. Why have we not done a better job of communicating the story?

真正的答案是，這需要時間和專門的團隊才能以這種規模執行。許多軟件公司不想與這個以槍支為中心的市場有任何關係。必須建立銀行關係，確保交易量，測試和核算。為什麼我們沒有更好地傳達故事？

Well, we failed to communicate the fundamentals of how buyers and sellers transact today versus the future. Secondly, our messaging is confusing. We are AMMO, Inc. Our sticker is POWW. And when you hear the historic message, we've been focused on ammunition with ammunition themes based in an ammunition market that made front pages.

好吧，我們未能傳達買賣雙方今天與未來如何交易的基本原則。其次，我們的消息傳遞令人困惑。我們是 AMMO, Inc. 我們的貼紙是 POWW。當您聽到歷史性信息時，我們一直專注於基於成為頭版的彈藥市場的彈藥主題的彈藥。

GunBroker's messaging got lost. The buyer-seller experience and the new user experience was not articulated until now. Within our portfolio, our messaging going forward must change. The look and feel of how we go to market must change.

GunBroker 的消息丟失了。買賣雙方的體驗和新的用戶體驗直到現在才被闡明。在我們的產品組合中，我們未來的信息傳遞必須改變。我們如何進入市場的外觀和感覺必須改變。

I hope you can tell how excited I am about the future of this company. I couldn't be more bullish about our future; and that is why I joined the team. While the industry is currently facing headwinds, we have been busy creating our own tailwinds. I can't express the energy and passion this team brings to the table every single day.

我希望你能說出我對這家公司的未來有多興奮。我對我們的未來非常樂觀；這就是我加入團隊的原因。雖然該行業目前面臨逆風，但我們一直在忙於創造自己的順風。我無法表達這支球隊每一天所帶來的活力和激情。

We are constantly onboarding top talent to facilitate this new growth. And we're seeking talented engineers, accountants, analysts, and leaders to see how they can fit into the larger ecosystem that we are creating here. Thank you for taking the time, allowing me to come on board this team, and listen to my thoughts today.

我們不斷招募頂尖人才，以促進這一新的增長。我們正在尋找有才華的工程師、會計師、分析師和領導者，看看他們如何融入我們在這裡創建的更大的生態系統。感謝您抽出時間讓我加入這個團隊，並聆聽我今天的想法。

At this time, I would like to turn it over to Rob Wiley to walk us through the financials.

在這個時候，我想把它交給 Rob Wiley 來引導我們完成財務。

Thank you, Jared. Welcome, everyone. Let me now review our third-quarter financials in more detail. We are facing headwinds in the market today along with the rest of the industry but remain excited about the new direction of our two segments in upcoming quarters, with our marketplace enhancements coming online in the first half of our next fiscal year and the shift in our manufacturing strategy that will drive profitability.

謝謝你，賈里德。歡迎大家。現在讓我更詳細地回顧一下我們第三季度的財務狀況。今天，我們與其他行業一樣面臨市場逆風，但我們仍然對未來幾個季度我們兩個部門的新方向感到興奮，我們的市場增強功能將在下一財年上半年上線，我們的轉變將推動盈利能力的製造戰略。

As is observed by the peers within our space, we continuously see margin compression on our ammunition segment. US commercial ammunition market continues to slow from the inflationary impact and global recessionary drivers being felt across most industries. The reduction in sales; higher commodity and freight costs; along with the increased operating expenses, such as the remainder of the one-time legal expenses related to the proxy contention, stock compensation, corporate insurance, and payroll, have increased our cost of revenues and operating expenses, resulting in a net loss for the period.

正如我們所在領域的同行所觀察到的那樣，我們不斷看到彈藥部門的利潤率受到壓縮。美國商業彈藥市場因通貨膨脹影響和大多數行業都感受到的全球衰退驅動因素而繼續放緩。銷售額減少；更高的商品和運費；加上運營費用的增加，例如與代理權爭奪、股票補償、公司保險和工資相關的一次性法律費用的剩餘部分，增加了我們的收入成本和運營費用，導致淨虧損時期。

We addressed these increases. And as discussed earlier in the call, we plan to recoup cash tied up in our inventory in our quarter ending in March and pivot the direction of our manufacturing operations opportunities that provide enhanced profitability opportunities, such as premium rifle brass, including our expanded offerings of large-caliber brass.

我們解決了這些增長問題。正如電話會議早些時候所討論的那樣，我們計劃在截至 3 月的季度收回我們庫存中的現金，並轉向我們的製造業務機會的方向，這些機會提供了更高的盈利機會，例如優質步槍黃銅，包括我們擴大的產品大口徑黃銅。

Additionally, we continue to push forward on the improvements to our GunBroker.com marketplace, which represent great leveraging opportunities that springs from this incredibly robust site. In this regard, we are currently tracking for the payment suite and cart platform to launch in the first half of our next fiscal year, which we remain reasonably confident will drive growth and profitability to the site.

此外，我們繼續推進我們的 GunBroker.com 市場的改進，這代表了從這個非常強大的網站中產生的巨大利用機會。在這方面，我們目前正在跟踪支付套件和購物車平台在下一財年上半年推出，我們仍然有理由相信這將推動該網站的增長和盈利能力。

We ended the third quarter with total revenues of approximately $38.7 million in comparison to approximately $64.7 million in the prior year period. This was a decrease of 40% from the prior-year quarter. The decrease in revenue was mainly attributable for ammunition segment and the inflationary impacts that are currently affecting the market.

我們在第三季度末的總收入約為 3870 萬美元，而去年同期約為 6470 萬美元。這比去年同期下降了 40%。收入減少主要是由於彈藥部門和目前影響市場的通貨膨脹影響。

These market conditions also impacted the revenue of our marketplace segment, effecting a 12% decrease from the prior year period. However, operating performance of our marketplace, GunBroker.com, still remains strong. And although our top-line revenues wavered, our margins are still comparable to historical performance.

這些市場條件也影響了我們市場部門的收入，比去年同期下降了 12%。然而，我們的市場 GunBroker.com 的經營業績仍然強勁。儘管我們的營收出現波動，但我們的利潤率仍與歷史業績相當。

Our cost of revenues were approximately $26.2 million for the quarter compared to $42.2 million in the comparable prior year quarter. This decrease was related to reduced sales volume and increased commodity costs. Accordingly, this resulted in a gross margin of $12.5 million compared to $22.5 million. As our sales volume fell in the reported quarter, we anticipate another quarter of margin compression to the increased costs.

本季度我們的收入成本約為 2620 萬美元，而去年同期為 4220 萬美元。這一減少與銷量減少和商品成本增加有關。因此，這導致毛利率為 1250 萬美元，而毛利率為 2250 萬美元。由於我們在報告季度的銷量下降，我們預計另一個季度的利潤率將因成本增加而受到壓縮。

We expect to swiftly transition to more profitable sales activity starting in the first quarter of next fiscal year Buy shifting our focus, more sales of our premium brands to large-caliber ammunition rounds. Our balance sheet remains strong with our total current liabilities decreasing by 21% since our year end and our total current assets virtually unchanged.

我們預計從下一財年第一季度開始迅速過渡到更有利可圖的銷售活動，將我們的重點轉移到我們的優質品牌的更多銷售到大口徑彈藥上。我們的資產負債表依然強勁，我們的總流動負債自年底以來減少了 21%，而我們的總流動資產幾乎沒有變化。

We are revising our adjusted EBITDA and adjusted net income per share calculations moving forward, which we believe will provide the market with a more accurate representation of our operations. To transition to our new calculations, we are providing our historical adjusted EBITDA and adjusted net income per share calculations as well as the calculations you can expect to see moving forward and incorporate it into our updated data guidance.

我們正在修改調整後的 EBITDA 和調整後的每股淨收入計算，我們相信這將為市場提供更準確的業務表現。為了過渡到我們的新計算，我們提供了歷史調整後的 EBITDA 和調整後的每股淨收入計算以及您可以預期看到的計算，並將其納入我們更新的數據指南。

For the quarter, using our historical adjusted EBITDA and adjusted net income per share calculation, we recorded adjusted EBITDA of approximately $7.9 million compared to the prior year quarter adjusted EBITDA of $20.1 million. Using our moving forward adjusted EBITDA calculation, we recorded $4.8 million in adjusted EBITDA for the period compared to $10.7 million in the prior year period.

本季度，使用我們歷史調整後的 EBITDA 和調整後的每股淨收入計算，我們記錄的調整後 EBITDA 約為 790 萬美元，而去年同期調整後的 EBITDA 為 2010 萬美元。使用我們向前調整的 EBITDA 計算，我們在此期間記錄了 480 萬美元的調整後 EBITDA，而去年同期為 1070 萬美元。

This resulted in a loss per share of $0.04 for a historical adjusted net income per share of $0.05 in comparison to $0.14 in the prior year period. Using our updated calculation, adjusted net income per share was $0.05 in comparison to adjusted net income per share of $0.08 in the prior year period. Due to the decline in sales activity as a result of market shift, we are reducing our guidance for our 2023 fiscal year. We are updating guidance to revenues of $185 million, adjusted EBITDA using our new calculation of $22 million, and EBITDA of $17 million.

這導致每股虧損 0.04 美元，歷史調整後每股淨收入為 0.05 美元，而去年同期為 0.14 美元。使用我們更新後的計算，調整後每股淨收益為 0.05 美元，而去年同期調整後每股淨收益為 0.08 美元。由於市場變化導致銷售活動下降，我們正在降低對 2023 財年的指導。我們正在更新對 1.85 億美元收入的指導，調整後的 EBITDA 使用我們新計算的 2200 萬美元和 1700 萬美元的 EBITDA。

Looking forward to our next fiscal year, we expect the new direction of our company to increase profitability through increased sales of our brass casings and a performance rifle ammunition that will increase the gross margins of our ammunition segment. Additionally, the launch of the payment processing suite, carting platform, and analytics offerings are anticipated to position our GunBroker.com marketplace; will allow for increases in our gross merchandise volume; and, as a result, increasing revenue and profitability.

展望下一個財政年度，我們預計公司的新方向是通過增加黃銅彈殼和高性能步槍彈藥的銷量來提高盈利能力，這將提高我們彈藥部門的毛利率。此外，支付處理套件、購物平台和分析產品的推出預計將定位我們的 GunBroker.com 市場；將允許增加我們的商品總量；並因此增加收入和盈利能力。

That concludes our opening remarks. I will now turn the call over to the operator for questions. Thank you.

我們的開場白到此結束。我現在將把電話轉給接線員詢問問題。謝謝。

Thank you. (Operator Instructions) Matt Koranda, Roth Capital.

謝謝。 （操作員說明）Matt Koranda，Roth Capital。

Hey, guys. Good afternoon, just want start out with the ammo business. Can you just disentangle for us the embedded price declines versus volume in that segment in the third quarter? Just curious -- like you mentioned, demand seems to be an issue. But just also curious how to think about production at the facility during the quarter. And was there any supply disruption? Or was it all a demand issue that you're experiencing currently in terms of this decline?

大家好。下午好，只想從彈藥業務開始。您能否為我們理清第三季度該細分市場的嵌入式價格下降與銷量的關係？只是好奇——就像你提到的，需求似乎是一個問題。但也很好奇如何考慮本季度工廠的生產。有沒有供應中斷？還是您目前在這種下降方面遇到的都是需求問題？

Hey. Matt. This is Jared Smith. First of all, thank you for your question. I'm going to repeat the question back to make sure I heard it correctly. You're asking about, in this past quarter, the lack of demand or the lack of volume and sales. Was that related to production issues or just pure market issues? Is that correct assumption of your question?

嘿。馬特。這是賈里德·史密斯。首先，謝謝你的問題。我將重複這個問題以確保我沒有聽錯。你問的是，在過去的這個季度，需求不足或銷量和銷售額不足。這與生產問題有關還是僅僅是純粹的市場問題？這是對你的問題的正確假設嗎？

Yeah, they are. That's correct. And thanks, Jared.

是的，他們是。這是正確的。謝謝，賈里德。

Fantastic. So the reality is it's a mix of both. When you move into any new facility like this new 185,000-square-foot facility, there's walls that have to go up. There is racking that has to go in place. Machines have to be set, laid, and turned back on.

極好的。所以現實是兩者兼而有之。當您搬入任何新設施時，例如這個 185,000 平方英尺的新設施，總有一些牆需要建起來。有必須到位的貨架。必須設置、放置和重新啟動機器。

So is there an impact from the move? Absolutely. Was there an impact from the market? Absolutely. And the sheer demand on 9 and 223, as I said in the prior reporting, is -- the volumes of 9 and 223 in relation to our total capacity was affected by the market.

那麼此舉有影響嗎？絕對地。有沒有受到市場的影響？絕對地。正如我在之前的報告中所說，對 9 和 223 的絕對需求是 - 與我們總產能相關的 9 和 223 的數量受到市場的影響。

But the real reality is that we didn't have a primer. We didn't have the powder. And we didn't have the fundamentals to shift to these other higher-margin plays that we will be turning our factory to over the next three to six months.

但真正的現實是我們沒有底漆。我們沒有粉末。而且我們沒有基本面來轉向我們將在未來三到六個月內將我們的工廠轉向這些其他利潤率更高的遊戲。

Okay. Got it. That's helpful, Jared. Curious also if you could just maybe speak to the changeover that you've alluded to in terms of capacity. It sounds like you're going to be going after more centerfire rifle rounds, more casings in the mix on a go-forward basis. Maybe just draw us a path, if you could, for the next couple of quarters in terms of how the capacity cuts over, what you expect as we -- obviously, you've embedded this into the fourth quarter.

好的。知道了。這很有幫助，賈里德。也很好奇你是否可以談談你提到的容量方面的轉變。聽起來您將繼續使用更多的 centerfire 步槍子彈和更多的彈殼。也許只是給我們畫一條路，如果可以的話，在接下來的幾個季度裡，關於產能如何削減，你對我們的期望——顯然，你已經將其嵌入到第四季度。

But I'm just curious over the next, call it, two to three quarters, how we should expect capacity and production to trend within the AMMO business as you cut over to the more differentiated rounds and some of the more casings-heavy mix that you've alluded to.

但我只是很好奇，在接下來的兩到三個季度裡，當你轉向差異化程度更高的彈藥和一些更重的彈殼混合彈時，我們應該如何預期 AMMO 業務的產能和產量趨勢你提到過。

You can't compare historic ammo production in its existing factory to what we have going forward. The other very interesting fact about this factory is that we have the ability to change over from 9 millimeter to 300 Blackout on almost every one of our lines. That is a unique capability that does not exist in this market.

您無法將其現有工廠的歷史彈藥生產與我們未來的生產進行比較。關於這家工廠的另一個非常有趣的事實是，我們有能力在我們幾乎每一條生產線上從 9 毫米切換到 300 Blackout。這是這個市場上不存在的獨特能力。

So our ability to draw off of and sell premium rifle cases in both short and long action is truly unique. And as I had alluded to earlier, we already, in the first 30 days, sold out of our entire long rifle action capacity. So what you'll see in the course of April, May -- I'm sorry, February, March, April, is that we will be moving off of our inventories that we have a heavy commodities, products that have already been built and are in the process of being loaded.

因此，我們在短期和長期行動中提取和銷售優質步槍箱的能力確實是獨一無二的。正如我之前提到的，在最初的 30 天裡，我們已經賣光了我們所有的長步槍行動能力。所以你會在四月、五月期間看到——對不起，二月、三月、四月，我們將擺脫庫存，我們有大量商品，已經生產的產品，正在加載。

And then, we'll shift that production capacity to selling brass. So instead of losing 5%, 10% margins, we'll be gaining 30% margins. You will see a reduction in the top line, but you will see a growth in the bottom line. And that's where the focus is.

然後，我們將把生產能力轉移到銷售黃銅上。因此，我們將獲得 30% 的利潤，而不是損失 5%、10% 的利潤。你會看到收入減少，但你會看到利潤增加。這就是重點所在。

Okay. Got it. And then maybe just -- could you just clarify how you guys think about market share, whether that be with OEMs, whether that be with retailers? Just curious how to think about -- you guys have talked about retailers have lower purchase volumes. Have you lost any customers over the last couple of quarters? Or are they just essentially downsizing volume across the board? How do you think about market share and what you're defending there currently and over the next couple of quarters?

好的。知道了。然後也許只是 - 你能否澄清你們如何看待市場份額，無論是原始設備製造商，還是零售商？只是好奇如何思考 - 你們談到零售商的採購量較低。在過去的幾個季度中，您是否失去了任何客戶？或者他們只是在本質上全面縮減交易量？你如何看待市場份額以及你目前和未來幾個季度在那裡捍衛的東西？

They've downsized across the board. They've also realized that they are not profitable in these positions around commodity products. Our position on the US market is less than 1% total market share for the ammunition we manufacture. There is this massive space out there. And the trend line is for premium rifle, which is really what this factory was built around.

他們已經全面裁員。他們還意識到，他們在這些圍繞大宗商品的職位上並沒有盈利。我們在美國市場上的地位是我們製造的彈藥的總市場份額不到 1%。那裡有這個巨大的空間。趨勢線是高級步槍，這正是這家工廠的基礎。

The facility in Wisconsin is a rifle case manufacturer with the ability to produce pistol cases. And we matched that brass capacity with loading capacity. But the beauty of our story going forward is that we don't have to produce the full capacity in ammo.

位於威斯康星州的工廠是一家步槍箱製造商，有能力生產手槍箱。我們將黃銅容量與負載能力相匹配。但我們未來故事的美妙之處在於，我們不必生產全部彈藥。

Our goal is to support our industrial partners, the large OEM manufacturers out there. The goal is for us to find the niche products by following the trend lines that we see within GunBroker to be able to orient our production facility around those opportunities.

我們的目標是支持我們的工業合作夥伴，即大型 OEM 製造商。我們的目標是通過遵循我們在 GunBroker 中看到的趨勢線找到利基產品，以便能夠圍繞這些機會調整我們的生產設施。

What are those opportunities? It's within the cartridges, like 44 Mag and 45 Colt. It's a collision of cost capacities that we're seeing trend very, very heavily right now due to impacts from the European theater. We are able to follow those because we don't have dedicated lines to 9 and 223.

這些機會是什麼？它在彈藥筒內，例如 44 Mag 和 45 Colt。由於歐洲劇院的影響，我們現在看到的趨勢非常非常嚴重，這是成本能力的衝突。我們能夠遵循這些，因為我們沒有通往 9 和 223 的專用線路。

We have completely flexible lines dedicated to a range of calibers from 9 to 300 Blackout. It's our ability to meet that new demand because we don't produce projectiles and I don't have to turn on 9 millimeter or turn off 9-millimeter projectile machines that make up a third of our factory. When we can't sell ammo at high margins, we'll sell brass at high margins.

我們擁有完全靈活的生產線，專用於從 9 到 300 Blackout 的一系列口徑。這是我們滿足新需求的能力，因為我們不生產射彈，而且我不必打開或關閉占我們工廠三分之一的 9 毫米射彈機器。當我們不能以高利潤出售彈藥時，我們將以高利潤出售黃銅。

Okay. I got it, super clear. And then just maybe if you could just finally stitch that together for us, either Jared or Rob, just in the way we should be thinking about the path forward for gross margins, especially for the manufacturing business. It looks like GunBroker's relatively rock steady on the margin front. So really curious about the core manufacturing business. How do we think about getting back to, call it, that mid- to high 20%-plus margins?

好的。收到了，超清晰然後也許如果你能最終為我們把它縫合在一起，無論是賈里德還是羅布，就像我們應該考慮毛利率的前進道路一樣，特別是對於製造業務。看起來 GunBroker 在利潤率方面相對穩定。對核心製造業務真的很好奇。我們如何考慮回到 20% 以上的中高利潤率？

Every time we sell a piece of brass -- yes. Every time we sell a piece of brass, we make anywhere between 20% and 40% margin and even more on -- as you go up in caliber, the higher the margin is. So 338 Norma Magnum, which we have capacity for; 338 Lapua; 50 BMG, those are 50%- to 60%-margin plays. So we don't have to load, we can sell brass.

每次我們賣出一塊黃銅——是的。每次我們出售一塊黃銅，我們都能賺取 20% 到 40% 的利潤，甚至更多——隨著質量的提高，利潤就越高。所以我們有能力生產 338 Norma Magnum； 338拉普阿； 50 BMG，這些是 50% 到 60% 的保證金遊戲。所以我們不必裝貨，我們可以賣黃銅。

And when we see opportunities just to load, we'll fill those niche opportunities through our existing shelf. The goal is that in the next 180 days, we will completely turn this ship over to focus on profitability, to focus on throughputs based around profitability. I go into next week with the team here, and we are putting down our new budget and our forecast. And I'll have a lot more to say on this in the following weeks. But we're --because I've only sat in the seat for 39 days, there's still a lot of work to be done.

當我們看到只是加載的機會時，我們將通過我們現有的貨架來填補這些利基機會。目標是在接下來的 180 天內，我們將把這艘船完全轉過來專注於盈利能力，專注於基於盈利能力的吞吐量。我和這裡的團隊一起進入下週，我們正在製定新的預算和預測。在接下來的幾周里，我將對此發表更多看法。但我們——因為我只坐了 39 天，還有很多工作要做。

Fair enough. I appreciate all the commentary. And I'll leave it there, guys. Thanks.

很公平。我感謝所有的評論。我會把它留在那裡，伙計們。謝謝。

Edward Reilly, EF Hutton.

愛德華賴利，EF 赫頓。

Hi, guys. Thanks for taking my question. Last quarter, you cited expectation of strong demand from the export market. Wondering if it's still the case today.

嗨，大家好。感謝您提出我的問題。上個季度，您引用了出口市場強勁需求的預期。想知道今天是否仍然如此。

It is the case today that we're seeing stronger demand from the export market. And what it's doing, it's actually diverting the larger manufacturers in this space for small [cowl], especially Lake City, to focus on those export opportunities, which is freeing up capacity in space, both domestically and internationally, Because their lines are focused on, once again, high volume, high output around 5.56, 7.62 by 51, and in some cases 50.

今天的情況是，我們看到出口市場的需求更加強勁。它正在做的事情實際上是在轉移這個領域的大型製造商，以生產小型 [cowl]，尤其是 Lake City，以專注於那些出口機會，這釋放了國內和國際的空間容量，因為他們的生產線專注於，再一次，高音量，高輸出在 5.56 左右，7.62 由 51，在某些情況下為 50。

Okay, great. And then just on the comments around the long rifle capacity already being sold out over the past 30 days, wondering if you could maybe give us any details around the customer mix there.

好的，太好了。然後就關於過去 30 天已經售罄的長步槍容量的評論，想知道你是否可以向我們提供有關那裡客戶組合的任何詳細信息。

It's very, very heavy towards OEM, large players that are now seeing this shift and are coming back to Jagemann for the quality that they've known and that they bought in the past. And when we say long action, that's 270/30-06, 338 Norma, 300 Win Mag, 7-millimeter Win Mag, those where we have tremendous margins. And those are players that come to this market. They want a strong partner, an industrial partner, that can help them meet their demands year in year out. So it's not a one-time customer with bad credit. That is non-strategic to our business.

這對 OEM 來說非常非常沉重，大型玩家現在看到了這種轉變，並且因為他們所知道的和他們過去購買的質量而回到 Jagemann。當我們說長槍機時，就是 270/30-06、338 Norma、300 Win Mag、7 毫米 Win Mag，這些我們有巨大的利潤空間。那些是來到這個市場的參與者。他們需要一個強大的合作夥伴，一個工業合作夥伴，可以幫助他們年復一年地滿足他們的需求。因此，它不是信用不良的一次性客戶。這對我們的業務來說是非戰略性的。

Okay. Got it. Thank you.

好的。知道了。謝謝。

Mark Smith, Lake Street.

馬克史密斯，湖街。

Hi, guys. I've got a handful of questions here. Jared, just want to stay on the ammo piece first. Just how are you looking at channel inventory domestically today? Obviously, we see issues in a lot of 9 mill and 223/5.56. Are you seeing the increase in other centerfire rifle, even some of the specialty-type rounds today? Walk us through where that channel inventory is and potentially how long it takes to clean up some of these calibers that have gotten too heavy.

嗨，大家好。我這裡有幾個問題。 Jared，只想先留在彈藥片上。您如何看待今天國內的渠道庫存？顯然，我們在 9 mill 和 223/5.56 中看到了很多問題。您是否看到其他 centerfire 步槍的增加，甚至是今天的一些特種彈藥？帶我們了解渠道庫存在哪裡，以及可能需要多長時間才能清理掉其中一些已經變得太重的口徑。

I think the calibers that were -- that this market is overly focused on is 9 and 223. And they've been overly focused on it with every cyclical market that we've seen over the last 10 years. There are still really bright spaces in the market, as I said earlier, for 44 Ma, 45 Long Colt, all your [wind] cartridges. You still see really strong demand in this new space of 6-millimeter ARC, 6.5 PRC, 7-millimeter PRC, 338 Norma Magnum. Those channels are yet to be filled; and that's where we'll end up tuning our factories and our capacities towards.

我認為這個市場過度關注的口徑是 9 和 223。過去 10 年我們看到的每個週期性市場都過度關注它。正如我之前所說，對於 44 Ma、45 Long Colt 以及所有 [wind] 彈藥筒，市場上仍然存在真正的光明空間。在這個 6 毫米 ARC、6.5 PRC、7 毫米 PRC、338 Norma Magnum 的新領域，您仍然會看到非常強勁的需求。這些渠道尚未填補；這就是我們最終將調整我們的工廠和我們的能力的地方。

When you say in terms of sitting inventories, yes, there's inventory coming back on the shelf. And that's due to an inflationary and recessionary effect of just total market share. But those total dollars in market share is, once again, primarily in that high commodity space. And we're not too concerned about those volumes sitting in the retail space because we will divert our production elsewhere.

當你說現有庫存時，是的，貨架上有庫存。這是由於總市場份額的通貨膨脹和衰退效應。但市場份額的總美元再次主要集中在高商品領域。而且我們不太擔心零售空間中的那些數量，因為我們會將生產轉移到其他地方。

Okay. And as we think about shifting over to some of these other rounds, walk us through how you weigh -- you're just shifting purely over to brass and selling brass into other OEMs to hit some of this demand versus shifting lines over to 6.5 PRC or whatever the calibers may be, how you weigh that decision making.

好的。當我們考慮轉向其中一些其他輪次時，請告訴我們您的權衡——您只是單純地轉向黃銅並將黃銅出售給其他 OEM 以滿足部分需求，而不是將生產線轉移到 6.5 PRC或者無論口徑如何，您如何權衡決策。

Our decision making is based upon what we call strategic account management. It's that we are going to segment the marketplace. We're going to find the clients that have been underserved in the last year that are high credit-worthy clients that we have a direct relationship. And we will continue to feed those clients time and time again. When we look at things like 6.5 Creedmoor and the trend line for 6.5 Creedmoor, there are six other calibers that are coming to the market that we can then divert our focus away from these areas that are getting oversaturated. And that's how we look at the space. Does that answer your question?

我們的決策基於我們所說的戰略客戶管理。這是我們要細分市場。我們將找到去年服務不足的客戶，這些客戶是我們有直接關係的高信譽客戶。我們將繼續一次又一次地為這些客戶提供食物。當我們查看 6.5 Creedmoor 和 6.5 Creedmoor 的趨勢線時，還有其他六種口徑即將進入市場，然後我們可以將注意力從這些變得過飽和的區域轉移開。這就是我們看待這個空間的方式。這是否回答你的問題？

That does. The other piece that I just wanted to look rearview mirror a little bit on: maybe why some of the shift wasn't done sooner? And walk me through. Was it maybe just been slower on shift, some of having a new plant, or was it that you couldn't get perhaps some of the projectiles or powder that you needed to build some of these other rounds?

確實如此。另一件我只是想稍微看看後視鏡：也許為什麼有些轉變沒有早點完成？並引導我完成。可能只是換班速度變慢了，有些是因為有了新工廠，還是您無法獲得製造其他一些砲彈所需的某些彈丸或粉末？

We couldn't get the powders to go after those other rounds. We couldn't get enough supply of primers to go after those opportunities. We couldn't get our factory up fast enough. And we did it in 13 months by the way, but we couldn't get the factory up fast enough and tune and the annealing lines set up and the operations and the staffing reorganized. It was done in record pace time. But once again, that's never fast enough. But we're here now; and we're shifting and we're pivoting.

在其他幾輪之後，我們無法獲得粉末。我們無法獲得足夠的引物供應來抓住這些機會。我們的工廠建設速度不夠快。順便說一句，我們在 13 個月內就做到了，但我們無法足夠快地啟動工廠並進行調整，無法設置退火線，無法重組運營和人員配置。這是在創紀錄的速度時間內完成的。但再一次，這永遠不夠快。但是我們現在在這裡；我們正在轉變，我們正在轉向。

Okay. And then just as we think purely about brass casing manufacturing, walk us through added capacity in the new plant and maybe where you're at today on what you're moving, as far as your capacity, just as we look purely at cases.

好的。然後就像我們純粹考慮黃銅外殼製造一樣，帶我們了解新工廠的額外產能，也許你今天所處的位置，就你的產能而言，就像我們純粹看案例一樣。

Historically in the past, the maximum cases that ever came out of any previous facility related to ammo was in that 350 million to 400 million space. The capacity that's available out of this plant exceeds 750 million in our current shift operation. So we can double the capacity of cases. We have ample manufacturing and loading space to go after these opportunities. It's not going to be for a lack of capacity going forward.

從歷史上看，以前任何與彈藥相關的設施中出現的最大案例都在 3.5 億到 4 億空間內。在我們目前的輪班運營中，該工廠的可用產能超過 7.5 億。所以我們可以將案件的容量增加一倍。我們有足夠的製造和裝載空間來抓住這些機會。這不會是因為缺乏未來的能力。

Okay, great. And then you guys talked -- oh, go ahead, Jared.

好的，太好了。然後你們談了談——哦，繼續吧，Jared。

No, I was just saying, the beauty of all this and what I didn't realize until really coming in the door and sitting down with the analytics team is that we can tune our forecast on a weekly basis based upon the trend lines that we're seeing coming out of GunBroker. It is such a data-rich environment that allows us, as manufacturers, to make better decisions on where we're making our next investments.

不，我只是說，這一切的美妙之處以及直到真正走進門並與分析團隊坐下來我才意識到的是，我們可以根據我們確定的趨勢線每週調整我們的預測看到來自 GunBroker 的消息。正是這樣一個數據豐富的環境，讓我們作為製造商能夠更好地決定下一次投資的地點。

And do you have more flexibility in shifting production within brass casing? Is that pretty easy? If you see, for instance, more demand on some straight wall brass casing from other OEMs, are you able to shift and hit that pretty quickly? Or is there maybe more tooling and eye that are needed to share some of that over?

在黃銅套管內轉移生產時，您是否具有更大的靈活性？這很容易嗎？例如，如果您看到其他原始設備製造商對某些直壁黃銅外殼的需求增加，您是否能夠迅速轉變並達到這一目標？或者是否需要更多的工具和眼睛來分享其中的一些？

There's always tooling and guys that we need to invest in as new calibers evolve. But the breadth of the tooling and die sets are already there. There's not massive CapEx that we have to put into place to make this profitable. It's existing and we can go -- like I said earlier, we can go from 9 to 300 Blackout on the same machine. It's really unheard of in this industry.

隨著新口徑的發展，我們總是需要投資於工具和人員。但是工具和模具組的範圍已經存在。我們無需投入大量資本支出即可實現盈利。它已經存在，我們可以繼續——就像我之前說的，我們可以在同一台機器上從 9 點到 300 點停電。這在這個行業真是聞所未聞。

And then just GunBroker sounds like it continues to do well. Walk us through any more that you can in-depth today on where you're at as far as learning from the demand trends that you're seeing at GunBroker and shifting that over to some of the decision making in manufacturing ammunition.

然後只是 GunBroker 聽起來它繼續表現良好。向我們介紹您今天可以深入了解您在 GunBroker 看到的需求趨勢中所處的位置，並將其轉移到製造彈藥的一些決策中。

This is the piece that really baffles my mind as I came into this space is the lack of awareness of where GunBroker is today and where it's going within the next six months. This single transaction, it's capped by a single transaction because of the way the development's been done. And the ability to go to a cart is huge for GunBroker.

當我進入這個領域時，真正讓我感到困惑的是缺乏對 GunBroker 今天的位置以及未來六個月內的發展方向的認識。由於開發的完成方式，這一單一交易受到單一交易的限制。去購物車的能力對 GunBroker 來說意義重大。

And by that shift, I've seen where not only people are buying a 7-millimeter PRC rifle, we're seeing where they're also investing their dollars. So we can take that data, work with our industrial partners, work within our own factories, and build those relationships with those marketers and those people that are going to market and go, I want to put a package together of 7-millimeter PRC with the latest holster or the next firearm manufacturer. That's the kind of data and the ability for us to be able to leverage going forward.

通過這種轉變，我看到人們不僅在哪裡購買 7 毫米 PRC 步槍，我們還看到他們也在哪裡投資。因此，我們可以獲取這些數據，與我們的工業合作夥伴合作，在我們自己的工廠內工作，並與那些營銷人員和那些將要進入市場的人建立關係，我想將 7 毫米 PRC 與最新的皮套或下一個槍支製造商。這就是我們能夠利用的數據類型和能力。

I think the last question for me -- and maybe, Rob, this might be best for you. Any breakdown you can give us as we look at your top-line guidance? And I realize it's just one quarter. But any additional info you can give us on what the GunBroker sales maybe are as the breakout within your guidance as well as any shifts, even though they may be small within casing sales, is built into the guidance for March quarter?

我想最後一個問題對我來說——羅伯，也許這對你來說是最好的。當我們查看您的頂線指導時，您可以給我們任何細分嗎？我意識到這只是四分之一。但是，您可以向我們提供有關 GunBroker 銷售量的任何其他信息，作為您指導中的突破以及任何變化，即使它們在外殼銷售中可能很小，也已納入 3 月季度的指導中？

Yeah. Thank you, Mark. This is Rob Wiley. And typically, we don't get too granular on our guidance. But just forward looking at Q4, I'm sure you can come up with the remainder of the revenue that we're forecasting there. But we really think the split of 60% over the ammunition casing side of the business and the remainder 40% from the GunBroker platform.

是的。謝謝你，馬克。這是羅伯·威利。通常，我們不會對我們的指導過於細化。但展望第四季度，我相信你可以得出我們在那裡預測的剩餘收入。但我們真的認為業務的彈殼方面有 60% 的拆分，其餘 40% 來自 GunBroker 平台。

Perfect. Thank you, guys.

完美的。感謝你們。

Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Fred Wagenhals for any closing remarks.

女士們，先生們，我們的問答環節到此結束。我想將會議轉回給 Fred Wagenhals 作閉幕詞。

Yeah. Thank you. And I know the investors can't see it from where you're sitting, but there has been a big change in this company since Jared came on board. In 40 days, we've made a lot of progress. And just watch and see where we go over the next four to six months.

是的。謝謝。而且我知道投資者無法從你坐的位置看到它，但是自從賈里德加入以來，這家公司發生了很大的變化。在 40 天裡，我們取得了很大的進步。看看我們在接下來的四到六個月裡會去哪裡。

Thank you very much. Have a good day, gentlemen.

非常感謝。祝你有美好的一天，先生們。

And thank you, sir. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝你，先生。會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。