Outdoor Holding Company (POWW) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to the AMMO, Inc., first-quarter 2024 earnings conference 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，感謝你們的支持。下午好，歡迎參加 AMMO, Inc. 2024 年第一季度收益電話會議。 （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正在通過互聯網進行現場直播，並且還被錄製用於回放。

I would now like to turn the call over to Matt Blazei of CoreIR, the company's Investor Relations firm. Please go ahead, sir.

我現在想將電話轉給該公司投資者關係公司 CoreIR 的 Matt Blazei。請繼續，先生。

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

下午好，感謝您參加今天的電話會議。與我一起加入 AMMO 領導團隊的還有執行主席 Fred Wagenhals；賈里德·史密斯，首席執行官；羅布·威利 (Rob Wiley)，首席財務官。

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 in it.

在本次電話會議中，管理層將做出前瞻性聲明，包括涉及 AMMO 對未來業績或運​​營業績預期的聲明。前瞻性陳述涉及風險和其他因素，可能導致實際結果與這些陳述存在重大差異。有關這些風險的更多信息，請參閱 AMMO 最近提交的表格 10-K 和表格 10-Q 定期報告、今天向 SEC 提交的表格 8-K 以及隨附的公司新聞稿中描述的風險因素這一呼籲，特別是其中的警告性聲明。

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.

今天的電話會議包括 AMMO 認為有助於評估其業績的非 GAAP 財務指標。您不應孤立地考慮此附加信息，也不應將其視為根據 GAAP 準備的結果的替代品。有關此非公認會計原則財務指標與淨虧損（其最直接可比的公認會計原則財務指標）的調節表，請參閱公司收益新聞稿中的調節表。

The content of this call contains time-sensitive information that is accurate only as of today, August 9, 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.

本次電話會議的內容包含時效性信息，僅截至今天（2023 年8 月9 日）準確。除非法律要求，AMMO 不承擔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 AMMO's Executive Chairman, Fred Wagenhals.

現在我很高興將電話轉給 AMMO 執行主席 Fred Wagenhals。

Thank you, and good afternoon. I appreciate everyone joining us for our first-quarter 2024 earnings call.

謝謝你，下午好。我感謝大家參加我們的 2024 年第一季度財報電話會議。

I would like to begin this call by welcoming Jared Smith as the new Chief Executive Officer of AMMO, Inc. The Board, executive management team, and I believe that Jared's background and success in the ammunition industry, combined with his strategic vision for our next phase of growth, will be instrumental to build greater shareholder value. We look forward to working with him and are confident and energized he will guide AMMO to future successes.

在本次電話會議開始時，我謹歡迎 Jared Smith 擔任 AMMO, Inc. 董事會、執行管理團隊的新任首席執行官，我相信 Jared 在彈藥行業的背景和成功，以及他對我們下一步的戰略願景增長階段，將有助於建立更大的股東價值。我們期待與他合作，並相信他將帶領 AMMO 走向未來的成功。

As the company's original founder, I will continue to be engaged on a daily basis as the Executive Chairman of the Board and will work very closely with Jared to assist in this transition. As many of you on this call are aware, Jared has been with AMMO since January 2023 as President and Chief Operating Officer.

作為公司的原始創始人，我將繼續擔任董事會執行主席，並與賈里德密切合作，協助完成這一過渡。本次電話會議中的許多人都知道，Jared 自 2023 年 1 月以來一直在 AMMO 擔任總裁兼首席運營官。

Until his recent appointment as CEO, I look forward to remaining a strong voice in the execution of our strategic plan and will stay until the job is finished. I believe the markets are -- significantly undervalued the opportunities in front of us.

在他最近被任命為首席執行官之前，我期待著在執行我們的戰略計劃時保持強有力的聲音，並將一直留到工作完成。我相信市場大大低估了我們面前的機會。

I am proud of what we've built since I founded this company just seven years ago and will continue to make sure our stakeholders understand exactly what the vision of AMMO is and what we are working towards. I am optimistic; our value has nowhere but to go but up. Our Board, executive management team, and I are completely committed to making that happen.

我對自七年前創立這家公司以來所取得的成就感到自豪，並將繼續確保我們的利益相關者準確理解 AMMO 的願景以及我們正在努力的目標。我很樂觀；我們的價值只能上升。我們的董事會、執行管理團隊和我完全致力於實現這一目標。

At this time, I would like to turn the call over to Jared Smith, AMMO's new Chief Executive Officer. He will discuss our first quarter in more detail, review the current state of operations, and what we believe the future has in store for AMMO, its team, and its shareholders.

現在，我想將電話轉給 AMMO 新任首席執行官賈里德·史密斯 (Jared Smith)。他將更詳細地討論我們第一季度的情況，回顧當前的運營狀況，以及我們認為 AMMO、其團隊和股東的未來。

Thank you, Fred, and good afternoon, everyone. This is my first earnings call as CEO, and I couldn't be more excited to be here.

謝謝弗雷德，大家下午好。這是我作為首席執行官第一次參加財報電話會議，能夠來到這裡我感到非常興奮。

The last six months, we've been rolling up our sleeves and making tremendous strides in creating real operational lift inside and outside the four walls. As I laid out in my letter to shareholders on July 31, we are driving the business through three major categories. First category: we're expanding GunBroker.com's platform and reach through centralized payment processing, carting, and the addition of services to complement the products relevant to our community.

在過去的六個月裡，我們一直在捲起袖子，在四堵牆內外創造真正的運營提升方面取得了巨大進步。正如我在 7 月 31 日致股東的信中所述，我們正在通過三個主要類別推動業務發展。第一類：我們正在擴展 GunBroker.com 的平台，並通過集中支付處理、購物和添加服務來補充與我們社區相關的產品。

The second category is we're focusing the ammunition division on enhancing margins through expansion of our rifle brass lines, continuous improvement measures, and vertical integration into projectile manufacturing. And finally, and most importantly, we're aligning the goals, compensation, and incentives of the management team with shareholder interest.

第二類是我們將彈藥部門的重點放在通過擴大我們的步槍黃銅生產線、持續改進措施以及垂直整合到彈丸製造中來提高利潤率。最後，也是最重要的，我們正在將管理團隊的目標、薪酬和激勵措施與股東利益結合起來。

Our work and our strategic directions are starting to pay off, as we have already begun to see the positive effects here in the first quarter. Our gross margins were 40.9% compared to 27.3% in the prior quarter, with an adjusted EBITDA of $6.6 million, up from $3.8 million in Q4.

我們的工作和戰略方向正在開始得到回報，因為我們已經在第一季度開始看到積極的影響。我們的毛利率為 40.9%，而上一季度為 27.3%，調整後 EBITDA 為 660 萬美元，高於第四季度的 380 萬美元。

Cash generated from operations was $13 million, up from $5.2 million in the same quarter last year. As we transition the business away from low-margin commodity ammunition sales to higher-margin OEM brass sales, we gave up top-line revenue and focused on bottom-line profitability. This was reflected in our sales for the quarter being down $34.3 million from $43.7 million in the prior quarter due to this transition in the business and overall market conditions.

運營產生的現金為 1,300 萬美元，高於去年同期的 520 萬美元。當我們將業務從低利潤的商品彈藥銷售轉向高利潤的 OEM 黃銅銷售時，我們放棄了頂線收入，專注於底線盈利能力。由於業務和整體市場狀況的轉變，我們本季度的銷售額比上一季度的 4370 萬美元減少了 3430 萬美元，這反映了這一點。

We had a total increase in cash of $8.4 million and repurchased 739,000 shares this last quarter through our buyback program. We will continue to focus on strengthening our balance sheet through capital allocation with strategic buybacks and accredited purchases as we see opportunity in the quarters ahead.

上個季度我們的現金總額增加了 840 萬美元，並通過回購計劃回購了 739,000 股股票。我們將繼續專注於通過資本配置、戰略回購和認可購買來加強我們的資產負債表，因為我們看到了未來幾個季度的機會。

I'd now like to speak specifically on GunBroker.com. We moved $238.8 million in product on the platform this quarter down from $281.2 million in the prior quarter. This follows industry seasonality was only slightly lower than our internal projections for GunBroker.com. While revenues decreased, our margins remained strong, 87% compared to 85.5% in the prior quarter.

我現在想專門談談 GunBroker.com。本季度我們在平台上的產品轉移額為 2.388 億美元，低於上一季度的 2.812 億美元。這是因為行業季節性僅略低於我們對 GunBroker.com 的內部預測。雖然收入下降，但我們的利潤率仍然強勁，為 87%，而上一季度為 85.5%。

We also expect a lift on the platform starting in Q3, Q4 as we roll out our centralized payment processing and multi-item cart. As we start the multi-item cart, we will be able to increase accessory sales and over time, increase our final value fee across the higher-margin products and services.

我們還預計，隨著我們推出集中支付處理和多商品購物車，該平台將在第三季度、第四季度開始得到提升。當我們啟動多商品購物車時，我們將能夠增加配件銷售，並隨著時間的推移，提高利潤率較高的產品和服務的最終價值費用。

We believe high single digits are achievable compared to the 5% to 6% we currently earn today. We are rolling out beta testing of payment processing and will continue to onboard new sellers through Q4. Our cart capabilities are in development, and we anticipate that platform coming online by the end of our fiscal year.

我們相信，與我們目前 5% 到 6% 的收入相比，高個位數的收入是可以實現的。我們正在推出支付處理的 Beta 測試，並將在第四季度繼續吸引新賣家。我們的購物車功能正在開發中，我們預計該平台將在本財年末上線。

I'd now like to transition to the ammunition division. The ammunition division of AMMO, Inc., created positive margins for the first time since June of 2022. We reported $20.3 million in revenue with a 9.5% gross margin, up from negative 8.6% in the previous quarter.

我現在想轉到彈藥部門。 AMMO, Inc. 的彈藥部門自 2022 年 6 月以來首次實現正利潤率。我們公佈的收入為 2,030 萬美元，毛利率為 9.5%，高於上一季度的負值 8.6%。

While this is a major win, we anticipate strong headwinds for loaded ammunition sales for the next two quarters. We continue to refocus the ammunition company on the most profitable segments of the market and will continue to monitor our margins during this very tough economic time.

雖然這是一次重大勝利，但我們預計未來兩個季度的裝載彈藥銷售將面臨強勁阻力。我們繼續將彈藥公司的重點重新集中在市場上最賺錢的領域，並將在這個非常困難的經濟時期繼續監控我們的利潤率。

The OEM market for casings, brass casings, the revenue increased to $6.2 million, up from $3.5 million in the previous quarter. This is a great result considering we started this transition in January.

外殼、黃銅外殼的OEM市場，收入從上一季度的350萬美元增至620萬美元。考慮到我們在一月份就開始了這一轉變，這是一個很好的結果。

I'd like to thank everybody for joining the call today. And I look forward to continued and robust communication with you as the year progresses. At this time, I would now like to turn it over to Rob Wiley to walk us through the financials.

我要感謝大家今天加入電話會議。我期待著隨著時間的推移與您繼續保持密切的溝通。現在，我想將其交給 Rob Wiley，讓他帶領我們了解財務狀況。

Thank you, Jared. Welcome, everyone. Let me now review the financials of the first quarter of our 2024 fiscal year in more detail.

謝謝你，賈里德。歡迎大家。現在讓我更詳細地回顧一下 2024 財年第一季度的財務狀況。

Margins on our marketplace segment remain strong. And our gross margins have increased on our ammunition segment as we begin to see the benefits of the transition to our leaner operating model, with a higher focus on brass sales.

我們的市場部分的利潤仍然強勁。隨著我們開始看到向更精簡的運營模式過渡的好處，更加註重黃銅銷售，我們的彈藥部門的毛利率有所增加。

We remain confident with the progress we have made today but still face headwinds as we continue to see softening in the US commercial ammunition markets. We have, however, continued to increase our cash position with $13 million in cash from operations generated in the quarter.

我們對今天取得的進展仍然充滿信心，但由於美國商業彈藥市場繼續疲軟，我們仍然面臨阻力。然而，我們繼續增加現金頭寸，本季度運營產生的現金為 1,300 萬美元。

We ended the first quarter with total revenues of approximately $34.3 million in comparison to $60.8 million in the prior-year quarter. The decrease in revenue was primarily related to the decrease in sales activity from our ammunition segment as the US commercial ammunition markets continue to soften.

第一季度結束時，我們的總收入約為 3,430 萬美元，而上年同期為 6,080 萬美元。收入下降主要與美國商用彈藥市場持續疲軟導致彈藥部門銷售活動減少有關。

Our casing sales, however, which afford us higher gross margins, increased to $6.2 million, up from $3.3 million in the prior-year period. Our marketplace revenue was $13.9 million for the reported quarter.

然而，我們的腸衣銷售額從去年同期的 330 萬美元增至 620 萬美元，這為我們帶來了更高的毛利率。報告季度我們的市場收入為 1390 萬美元。

Cost of goods sold was approximately $20.2 million for the quarter, compared to $42.6 million in the comparable prior-year quarter. The decrease in cost of goods sold was related to the decrease in sales volume but was also related to higher gross margins from our two segments.

本季度的銷售成本約為 2,020 萬美元，而上年同期為 4,260 萬美元。銷售成本的下降與銷量的下降有關，但也與我們兩個部門的毛利率較高有關。

Our gross margin for the quarter was $14 million or 40.9%, compared to $18.1 million or 29.8% in the prior-year period. The increase in gross profit margin is related to the shift in our sales mix.

本季度毛利率為 1,400 萬美元，即 40.9%，而去年同期毛利率為 1,810 萬美元，即 29.8%。毛利率的增加與我們銷售結構的轉變有關。

There were approximately $2.8 million of nonrecurring legal expenses incurred in our first fiscal quarter, which we have included as an addback to adjusted EBITDA. Without the nonrecurring legal expenses, we would have generated a profit for the quarter.

我們的第一財季產生了大約 280 萬美元的非經常性法律費用，我們已將其作為調整後 EBITDA 的加計。如果沒有非經常性法律費用，我們本季度就會產生利潤。

For the quarter, we recorded adjusted EBITDA of approximately $6.6 million, compared to the prior-year-quarter adjusted EBITDA of $10.6 million. This resulted in a net loss per share of $0.02 or an adjusted net income per share of $0.05, compared to the prior-year period of net income of $0.02 per share or adjusted net income per share of $0.07.

本季度調整後 EBITDA 約為 660 萬美元，而去年同期調整後 EBITDA 為 1060 萬美元。這導致每股淨虧損 0.02 美元或調整後每股淨收益 0.05 美元，而上年同期淨收益為每股 0.02 美元或調整後每股淨收益 0.07 美元。

We continue to push forward on the improvements to our marketplace, GunBroker.com. We are currently in the process of rolling out beta testing for our payment platform, with formal launch expected to begin by the end of this quarter.

我們繼續推進市場 GunBroker.com 的改進。我們目前正在對我們的支付平台進行 Beta 測試，預計將於本季度末開始正式發布。

Our cart platform for the GunBroker.com marketplace is on pace and is expected to launch by the end of this fiscal year. We feel confident in our financial position, as we have reported $130.6 million in current assets including $47.5 million of cash and cash equivalents in comparison to $23.9 million in current liabilities.

我們針對 GunBroker.com 市場的購物車平台正在穩步推進，預計將於本財年年底推出。我們對自己的財務狀況充滿信心，因為我們報告的流動資產為 1.306 億美元，其中包括 4750 萬美元的現金和現金等價物，而流動負債為 2390 萬美元。

We repurchased approximately 739,000 shares of common stock under our repurchase plan in the reported quarter, bringing us to over 1 million shares repurchased in total under the plan. We continue to look for opportunities to bolster our impressive balance sheet.

在報告季度，我們根據回購計劃回購了約 739,000 股普通股，使我們根據計劃回購的股票總數超過 100 萬股。我們繼續尋找機會來增強我們令人印象深刻的資產負債表。

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

我們的開場白就到此結束。我現在將把電話轉給接線員詢問問題。謝謝。

(Operator Instructions) Matt Koranda, ROTH.

（操作員說明）Matt Koranda，ROTH。

Hey, guys. Mike Zabran on for Matt. Maybe just start on the casing side of the business. I guess, just what percentage of casings production are we currently selling to OEMs?

大家好。邁克·扎布蘭 (Mike Zabran) 替補馬特 (Matt)。也許只是從外殼業務開始。我想，我們目前銷售給原始設備製造商的外殼產量的百分比是多少？

At some point in the past, talked about it being 10% to 15%. But obviously, it's a different business nowadays. So just where do we stand there? And where does that need to go over time as we continue to scale the casing side of the business?

在過去的某個時候，談到過它是 10% 到 15%。但顯然，如今這是一個不同的行業。那麼我們現在處於什麼位置呢？隨著我們繼續擴大套管業務，隨著時間的推移，這需要走向何方？

This is Jared Smith. Thanks for joining the call. I see our business taking a turn for the positive over the next two quarters. And the casings business is easily going to be 25% to 35% of our business going forward.

這是賈里德·史密斯。感謝您加入通話。我預計我們的業務在接下來的兩個季度將出現積極的變化。未來腸衣業務很容易占到我們業務的 25% 到 35%。

It is a growing business. There's demand out there. There are strong margins to be captured there, certainly, in this very, very tough economic time, as ammunition sales continue to decline and margin compresses across the board for the rest of the non-vertically integrated players.

這是一項不斷增長的業務。那裡有需求。當然，在這個非常非常困難的經濟時期，隨著彈藥銷售持續下降以​​及其他非垂直一體化參與者的利潤率全面壓縮，那裡有很高的利潤率。

Got it. And given that loaded ammo demand is still relatively soft across the entire industry, how should we think about pricing for shell casings? Are we having to compete on price here to add OEMs, or is price relatively stable for casings?

知道了。鑑於整個行業的裝載彈藥需求仍然相對疲軟，我們應該如何考慮彈殼的定價？我們是否必須在這裡進行價格競爭才能增加 OEM，或者外殼的價格相對穩定？

Price is -- we re-entered into this market in a declining market. So I would say, right now and for the foreseeable future, price is very stable. Our capacities are increasing. More capacity comes online with a new factory that we brought online back in August every day.

價格是——我們在市場下滑的情況下重新進入這個市場。所以我想說，現在和可預見的未來，價格非常穩定。我們的能力正在增強。我們在 8 月份每天都上線了一家新工廠，產能不斷增加。

And I see this -- I mean, this is a huge win for us, and I see this continuing. And I do not see any further price erosion related to the market on the casing demand.

我看到了這一點——我的意思是，這對我們來說是一個巨大的勝利，而且我認為這種情況會持續下去。我沒有看到與市場對套管需求相關的任何進一步的價格侵蝕。

Got it. Makes sense. And switching to the loaded ammo side, good to see loaded ammo margins kind of sequentially improve pretty meaningfully. I'm just wondering, do we have any remaining bulk loaded ammo inventory to clear through, or are we kind of done on that end?

知道了。說得通。切換到裝彈彈藥一側，很高興看到裝彈彈藥餘量逐漸顯著提高。我只是想知道，我們是否還有剩餘的散裝彈藥庫存需要清理，或者我們在這方面已經完成了嗎？

For the most part, we're done. We will always have to manufacture some amount of range ammo to be relevant in this market. But it will play a much, much smaller role going forward than it has in the past.

大部分情況下，我們已經完成了。我們總是需要生產一定數量的射程彈藥才能在這個市場上發揮作用。但未來它所扮演的角色將比過去小得多。

In terms of clearing out our inventory, I think our inventory is healthy. There's still some items -- slow-moving inventory that sit there, but it's not a major factor. Not a going concern for us.

在清理庫存方面，我認為我們的庫存是健康的。仍然有一些物品——流動緩慢的庫存仍然存在，但這不是一個主要因素。對我們來說不是一個持續關注的問題。

Yup. Got it. That makes sense. So last one for me: aside from any unforeseen discounting if the demand environment gets worse, how should we think about the progression and timing of getting loaded ammo gross margins back to the 20% range? Do you think we can get there by year-end? Just how are we thinking about how that maybe just scales over time?

是的。知道了。這就說得通了。最後一個問題是：如果需求環境變得更糟，除了任何不可預見的折扣之外，我們應該如何考慮將裝載彈藥毛利率恢復到 20% 範圍的進度和時機？你認為我們能在年底前實現這一目標嗎？我們如何思考它如何隨著時間的推移而擴展？

Yeah. I think for our business, margins improve. We have more rifle brass capacity coming on in the two quarters ahead. That's clearly where we can make margin.

是的。我認為對於我們的業務來說，利潤率有所提高。未來兩個季度我們將有更多的步槍黃銅產能。這顯然是我們可以賺取利潤的地方。

We can defer kind of the non-vertically integrated piece of our production over a larger dollar value and margins increase. And once again, really, our focus is rifle ammunition and playing a much, much larger role in that rifle space, both domestically and internationally.

我們可以推遲生產中非垂直整合的部分，而不是增加更大的美元價值和利潤率。事實上，我們的重點是步槍彈藥，並在國內和國際步槍領域發揮著更大的作用。

Okay. I'll take the rest offline. Thanks, guys.

好的。我會把剩下的部分離線。多謝你們。

Thank you, sir.

謝謝你，先生。

(Operator Instructions) Mark Smith, Lake Street.

（操作員說明）馬克·史密斯，湖街。

Hi, guys. First question from me, kind of broadly within ammo. Jared, can you give us any updates just as -- you talked about continued headwinds coming here. Maybe talk about kind of high-demand calibers -- 9-millimeter, 223, 556 -- kind of what you're seeing there. And then, any changes that you're seeing in demand or pricing or kind of channel inventory in kind of everything else, primarily centerfire rifle?

嗨，大家好。我的第一個問題，大致是在彈藥範圍內。賈里德（Jared），您能否給我們提供任何最新消息，就像您談到這裡持續存在的逆風一樣。也許談論一些高要求的口徑——9毫米、223、556——就像你在那裡看到的那樣。然後，您在其他方面（主要是中心火力步槍）的需求、定價或渠道庫存方面看到了任何變化嗎？

Yeah. So I think what's happened, Mark, is that a lot of the ammunition manufacturers have been holding on to inventory, waiting for little shifts in the market for things to pop. I see 9-millimeter and 223 -- I really don't see any further price erosion out there from what's currently on the shelf.

是的。因此，馬克，我認為發生的情況是，許多彈藥製造商一直持有庫存，等待市場出現小幅變化，以便出現情況。我看到了 9 毫米和 223——我真的沒有看到目前貨架上的價格有任何進一步的下跌。

There will be some specials coming out for Black Friday. But I think for all intents and purposes, the market's fairly stable. And we've bottomed out, and we can stay at this for the next two quarters.

黑色星期五將會推出一些特價商品。但我認為，無論出於何種意圖和目的，市場都相當穩定。我們已經觸底，並且可以在接下來的兩個季度保持這種狀態。

Going forward, there are still fantastic pockets that we can play in in revolver. There's still inventory out there that is lower than pre-pandemic inventory levels in those areas, and that's where we plan to play.

展望未來，我們仍然可以用左輪手槍玩一些很棒的遊戲。這些地區的庫存仍然低於大流行前的庫存水平，而這正是我們計劃發揮作用的地方。

Okay. And then maybe talk as much as you can -- it might be tough competitively. But walk us through kind of the margin on brass casing sales versus on loaded ammo.

好的。然後儘可能多地談論——競爭可能會很艱難。但請讓我們了解一下黃銅外殼銷售與裝載彈藥的利潤率。

Yeah. I mean, today, our cost to produce ball ammo is somewhere between [220] to [240] per a thousand. And the price at retail is [205]. We just can't play there. Whereas I can sell a brass case, and I can still make 10% margins.

是的。我的意思是，今天，我們生產球彈藥的成本在每千人 [220] 到 [240] 之間。零售價為[205]。我們就是不能在那裡玩。而我可以賣一個黃銅盒子，我仍然可以賺取 10% 的利潤。

So I sell brass casings anywhere between $75 a thousand up to $85 a thousand. And there's space and there's demand there. We can help out the international market. We can help out our domestic players, and we can help out new brands that are wanting to enter this space.

因此，我出售的黃銅外殼價格在 75 千美元到 85 千美元之間。那裡有空間，也有需求。我們可以幫助開拓國際市場。我們可以幫助國內企業，也可以幫助想要進入這個領域的新品牌。

So the rifle ammunition, if we looked at like 223, 223 at retail right now is going anywhere between [375] and [425] for ball ammo. We're just -- the primer's too much of a factor of our cost for us to play in volume against larger vertically integrated players. But we can sell the brass casing for a 20% to 35% margin. It's where we're going to stay, and it's where we're going to play until this market returns.

因此，如果我們看看現在零售的 223、223 步槍彈藥，其彈丸彈藥的價格介於 [375] 和 [425] 之間。我們只是——底漆在我們的成本中佔據了太多的因素，以至於我們無法與更大的垂直整合的玩家進行大量的比賽。但我們可以以 20% 到 35% 的利潤出售黃銅外殼。這是我們將停留的地方，也是我們將在市場回歸之前發揮作用的地方。

And we're going into an election year next year, so we're quite excited. And there's not a lack of international demand out there for brass casings -- brass rifle casings.

明年我們將進入選舉年，所以我們非常興奮。國際上並不缺乏對黃銅彈殼——黃銅步槍彈殼的需求。

Okay. Yeah. And then as we think broadly about you guys getting back more heavily into brass casing sales to OEMs, can you talk at all about maybe how much of this is on contract versus just kind of open-to-buy orders from OEMs?

好的。是的。然後，當我們廣泛地考慮你們更多地重新向原始設備製造商銷售黃銅外殼時，您能談談其中有多少是合同上的，而不是原始設備製造商的開放式購買訂單嗎？

Great question, Mark. Yes. We are signing large contracts today. I would say our contractual sales are now making up somewhere between 15% to 25% of our total capacity at that point -- all new contracts within the last six months.

好問題，馬克。是的。今天我們正在簽署大合同。我想說，我們的合同銷售現在占我們當時總產能的 15% 到 25% 之間——所有新合同都是在過去六個月內完成的。

Okay. And then I think the last one from me: broadly speak to -- I know it's a seasonally weaker quarter here for GunBroker and just kind of demand for some of these products.

好的。然後我想到我的最後一句話：廣泛地說，我知道對於 GunBroker 來說，這是一個季節性疲軟的季度，並且只是對其中一些產品的需求。

But talk about where you guys see the consumer primarily -- specific to GunBroker, where's this consumer? What's it going to take to kind of maybe spur some more buying activity from these consumers, and maybe your outlook as we move into more important hunting and holiday seasons?

但談談你們主要在哪裡看到消費者——具體到 GunBroker，這個消費者在哪裡？怎樣才能刺激這些消費者更多的購買活動，也許您對我們進入更重要的狩獵和假日季節的前景有何看法？

Sure. Great question, first of all. GunBroker is a perfect reflection of the market. And what we're seeing for new guns is that new guns are in the retail locations. And they're not having to go to GunBroker to find that ubiquitous Glock 17 or the Remington 870.

當然。首先，這是個好問題。 GunBroker 是市場的完美反映。我們所看到的新槍是在零售店裡有新槍。他們不必去 GunBroker 尋找隨處可見的 Glock 17 或 Remington 870。

What they are going to GunBroker for are those unique items. We're actually seeing our marginality improve on the platform because we're doing, A, a higher mix of sales of used guns. But what's really going to drive GunBroker users back to the GunBroker platform is streamlining the checkout process, internalizing and providing credit card services, and it's the cart item. And it's really just the ease of use of that platform that we'll be delivering in Q3 and Q4 of this year.

他們去 GunBroker 尋找的是那些獨特的物品。實際上，我們看到我們在平台上的邊緣性有所改善，因為我們正在做，A，二手槍銷售的更高組合。但真正促使 GunBroker 用戶回到 GunBroker 平台的是簡化結帳流程、內部化和提供信用卡服務，而這就是購物車項目。我們將在今年第三季度和第四季度提供該平台的易用性。

Excellent. Thank you, guys.

出色的。感謝你們。

Excellent. Thank you, Mark.

出色的。謝謝你，馬克。

This concludes our question-and-answer session. And I will turn the call over to Jared Smith for any closing comments.

我們的問答環節到此結束。我會將電話轉給賈里德·史密斯（Jared Smith）徵求結束意見。

I just want to say thank you for everybody for tuning in today. We are extremely bullish about the future. We're heading into the fall season. We've had this factory now for a year there in Manitowoc, Wisconsin.

我只想對大家今天的收聽表示感謝。我們對未來非常樂觀。我們即將進入秋季。我們在威斯康星州馬尼托沃克的這家工廠已經成立一年了。

Things are really starting to click for us as brass sales are taking on. From the GunBroker side, the developments that we're doing on the platform are exciting.

隨著黃銅銷售的增加，我們的情況確實開始變得順利。從 GunBroker 方面來看，我們在該平台上所做的開發是令人興奮的。

You're going to be hearing more from us in the future and stay tuned. And thank you for joining the call today.

未來您將會聽到我們更多的消息，請繼續關注。感謝您今天加入電話會議。

The conference has now concluded. Thank you for attending today's presentation.

會議現已結束。感謝您參加今天的演講。