Outdoor Holding Company (POWW) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. And good afternoon and welcome to the AMMO Incorporated third quarter 2024 earnings call. (Operator Instructions) Participants on 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. I would now like to turn the conference over to Mr. Matt Blazei of CORE IR, the company's Investor Relations firm. Please go ahead, sir.

女士們先生們，謝謝你們的支持。下午好，歡迎參加 AMMO 公司 2024 年第三季財報電話會議。（操作員說明）本次電話會議的參與者請注意，本次電話會議的音訊正在透過網路進行現場直播，並且也被錄製以供回放之用。我現在想將會議轉交給該公司投資者關係公司 CORE IR 的 Matt Blazei 先生。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 領導團隊的是執行主席 Fred Wagenhals；賈里德·史密斯，首席執行官；羅伯威利 (Rob Wiley)，財務長。

During this call, management will be making forward-looking statements, including statements that address analyst 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，管理階層將做出前瞻性聲明，包括滿足分析師對未來業績或營業績預期的聲明。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有重大差異。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 include non-GAAP financial measures that demo 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 reconciliations of 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非公認會計準則財務指標，demo 認為這些指標有助於評估其績效。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。有關非公認會計原則財務指標與淨虧損（其最直接可比較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, February 8, 2024. 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. It is now my pleasure to turn the call over to AMMO's Chief Executive Officer, Jared Smith.

本次通話的內容包含時效性訊息，僅截至今天（2024 年 2 月 8 日）準確。除法律要求外，Ammo 不承擔公開更新或修改任何資訊以反映本次電話會議後發生的事件或情況的義務。現在我很高興將電話轉給 AMMO 執行長 Jared Smith。

Good afternoon, everyone. Calendar 2023 was a challenging year for our industry and for the US economy. Despite this backdrop, AMMO, Inc. continued to transition its business to a stronger and leaner operating model as we push through this very tough economic period.

大家下午好。2023 年對我們的產業和美國經濟來說都是充滿挑戰的一年。儘管存在這種背景，AMMO, Inc. 在我們度過這個非常困難的經濟時期的過程中，繼續將其業務轉向更強大、更精簡的營運模式。

We have emerged from this time with an impeccable balance sheet, and we are encouraged about the significant opportunities we have before us here in the fourth quarter and going forward. We recently announced a $10 million-plus brass contract with ZRODelta and continue to see increasing demand as the ammunition and firearms market recovers from the 2022 and 2023's post-pandemic slump.

從現在起，我們的資產負債表無可挑剔，我們對第四季和未來面臨的重大機會感到鼓舞。我們最近宣布與 ZRODelta 簽訂了一份價值超過 1000 萬美元的黃銅合同，隨著彈藥和槍械市場從 2022 年和 2023 年大流行後的低迷中復蘇，需求繼續增加。

Now turning to our third quarter, we generated $5.1 million in cash this quarter, mostly through our reduction of inventories by $3.5 million. We will continue to work through inventory reductions as the year progresses.

現在轉向第三季度，本季度我們產生了 510 萬美元的現金，主要是透過減少 350 萬美元的庫存來實現的。隨著時間的推移，我們將繼續努力減少庫存。

Third quarter revenues were up $1.6 million sequentially, but net loss was dramatically improved to a loss of $1.6 million for the quarter compared to a loss of $7.5 million in the prior quarter and a loss of $4.1 million in the same quarter of the prior year. This improvement was primarily driven by a nearly 600-basis point sequential increase in gross margins due to decreases in tooling expenses, cost cutting initiatives, and higher traffic on the GunBroker.com marketplace.

第三季營收季增 160 萬美元，但淨虧損大幅改善，本季虧損 160 萬美元，上季虧損 750 萬美元，上年同期虧損 410 萬美元。這項改善主要是由於模具費用減少、成本削減措施以及 GunBroker.com 市場流量增加而導致毛利率環比增長近 600 個基點。

We are seeing a stronger pull through here in January and are optimistic as we grow our capacities for rifle case production as we expect to return to profitability during the 2025 fiscal year. In addition, our marketplace division continues its upward trend with seasonal sales continuing to increase here in Q4.

我們看到 1 月出現了更強勁的成長，隨著我們步槍盒生產能力的提高，我們感到樂觀，因為我們預計在 2025 財年恢復盈利。此外，我們的市場部門持續保持上升趨勢，第四季季節性銷售額持續成長。

GunBroker.com successfully tested our centralized payment processing application this quarter, and we will take our multi-item cart live on or before April 1. The payment application for checkout will support credit card processing for over 80% of our business, and we will continue to onboard sellers throughout the year as we develop the rest of the platform to onboard the remaining 20% of our business.

GunBroker.com 本季成功測試了我們的集中支付處理應用程序，我們將在 4 月 1 日或之前上線我們的多商品購物車。結帳支付應用程式將支援我們超過 80% 的業務的信用卡處理，我們將在全年繼續為賣家提供服務，同時開發平台的其餘部分以吸引剩餘 20% 的業務。

As we've said in the past, this is the first major step in our evolution and our transition from an eBay auction house to the Amazon eBay of the outdoor shooting sports industry. The launch of our cart will drive subsequent evolutions of the platform as we enable tiered category fees, cross-selling, shipping, financing, a better user experience, enhanced search functionality, and much more.

正如我們過去所說，這是我們發展的第一步，也是我們從 eBay 拍賣行轉型為戶外射擊運動產業的亞馬遜 eBay 的第一步。我們的購物車的推出將推動該平台的後續發展，因為我們實現了分級類別費用、交叉銷售、運輸、融資、更好的用戶體驗、增強的搜尋功能等等。

Now I'd like to transition to the ammunition division. We continue to see strong demand for our products and continue to bring on rifle capacity. While the transition has been slower than desired with our rifle brass production, we now have the lines in place to start seeing acceleration this quarter and into fiscal year 2025.

現在我想轉到彈藥部門。我們繼續看到對我們產品的強勁需求，並繼續增加步槍產能。雖然我們的步槍黃銅生產的轉型速度比預期的要慢，但我們現在已經有了生產線，可以在本季度開始看到加速，並進入 2025 財年。

We invested $3.6 million in CapEx projects this year, and our cost-out initiatives will result in a savings of $1.75 million, which will start to take effect this quarter, but with real effect in our 2025 fiscal year. We are well on our way into the rebranding of our ammunition portfolio and have focused our efforts on premium pistol and rifle ammunition, repositioning our core brands, STREAK, Signature, StelTH, and the launch of our HUNT line. This rebranding will carry through to our packaging website, in-store and online displays with our new HUNT line hitting shelves in early summer, while STREAK, StelTH, and Signature lines are hitting stores now.

今年我們在資本支出項目上投資了 360 萬美元，我們的成本削減計劃將節省 175 萬美元，該計劃將於本季度開始生效，但將在 2025 財年真正生效。我們正在順利進行彈藥產品組合的品牌重塑，並將重點放在優質手槍和步槍彈藥上，重新定位我們的核心品牌 STREAK、Signature、StelTH，並推出 HUNT 系列。此次品牌重塑將貫穿我們的包裝網站、店內和線上展示，我們的新 HUNT 系列將於初夏上架，而 STREAK、StelTH 和 Signature 系列現已上架商店。

I'm also proud to announce we recently onboarded Paul Kosowski, our new Chief Compliance and Transformation Officer. Paul will be helping us drive greater compliance and ensuring our business stays in the black as we maneuver in these regulated markets.

我還很自豪地宣布，我們最近任命了新任首席合規與轉型長 Paul Kosowski。保羅將幫助我們提高合規性，並確保我們的業務在這些受監管市場中保持獲利。

As we look at opportunities going into fiscal 2025, we will focus on the transformation of our marketplace. We will also continue to transition our manufacturing model to one of pursuing higher margins and premium rifle and pistol ammunition opportunities, as well as embracing the growing OEM business. I will now hand the call off to Rob Wiley, our CFO, to walk us through our third quarter financials.

當我們審視 2025 財年的機會時，我們將專注於市場的轉型。我們也將繼續將我們的製造模式轉變為一種追求更高利潤和優質步槍和手槍彈藥機會，以及擁抱不斷增長的 OEM 業務的模式。現在，我將把電話交給我們的財務長 Rob Wiley，他將帶領我們了解第三季的財務狀況。

Thank you, Jared, and welcome, everyone. Let me now review the financials of the third quarter of our 2024 fiscal year in more detail. We experienced an improvement in the marginality of our ammunition segment, while the margins of the GunBroker.com marketplace segment remained strong. We continue to see positive demand trends building for our ammunition product and activity continued to increase on GunBroker.com as we enter into the final quarter of our fiscal year.

謝謝賈里德，歡迎大家。現在讓我更詳細地回顧一下 2024 財年第三季的財務狀況。我們的彈藥細分市場的邊緣性有所改善，而 GunBroker.com 市場細分市場的利潤仍然強勁。隨著進入本財年最後一個季度，我們繼續看到彈藥產品的積極需求趨勢，並且 GunBroker.com 上的活動持續增加。

We ended the third quarter with total revenues of approximately $36 million in comparison to $38.7 million in the prior year quarter. The decrease in revenue was related to a decrease in sales activity from our ammunition segment as a result of a change in the US commercial ammunition market from the comparable prior quarter. Our casing sales, however, which afford us higher gross margins increased to $4.7 million, up from $3 million in the prior year period.

第三季結束時，我們的總收入約為 3,600 萬美元，而去年同期的總收入為 3,870 萬美元。收入下降與我們彈藥部門的銷售活動減少有關，這是由於美國商用彈藥市場與上一季相比發生的變化所致。然而，我們的腸衣銷售額從去年同期的 300 萬美元增至 470 萬美元，這為我們帶來了更高的毛利率。

Our marketplace revenue was $14 million for the reported quarter, compared to $15.4 million in the prior year quarter, which decreased as a result of the current macroeconomic environment impacting our industry as well as others. Cost of goods sold was approximately $25.1 million for the quarter compared to $26.2 million in the comparable prior year quarter. The decrease in cost of goods sold was related to the decrease in sales volume.

我們報告季度的市場收入為 1,400 萬美元，而去年同期為 1,540 萬美元，由於當前的宏觀經濟環境影響了我們的行業以及其他行業，因此收入有所下降。本季的銷售成本約為 2,510 萬美元，而去年同期為 2,620 萬美元。銷售成本下降與銷售下降有關。

Our gross margins for the quarter were $10.9 million or 30.3% compared to $12.5 million or 32.4% in the prior year period. The decrease in gross profit margin was related to the shift in our sales mix.

我們本季的毛利率為 1,090 萬美元，或 30.3%，而去年同期為 1,250 萬美元，即 32.4%。毛利率的下降與我們銷售結構的轉變有關。

Our cost cutting measures are paying off. There was a 5.4% decrease in operating expenses as a percentage of sales from the prior year quarter adjusted to exclude non-recurring expenses. There are approximately $1.5 million of non-recurring expenses related to legal and professional fees, which we have included as an add-back to adjusted EBITDA.

我們的成本削減措施正在發揮成效。在排除非經常性費用後，營運費用佔銷售額的百分比較去年同期下降了 5.4%。大約有 150 萬美元的非經常性費用與法律和專業費用相關，我們已將其作為調整後 EBITDA 的附加費用計入其中。

For the quarter, we recorded adjusted EBITDA of approximately $5.4 million compared to the prior year quarter adjusted EBITDA of $6.2 million. This resulted in a net loss per share of $0.02, or adjusted net income per share of $0.04 compared to the prior year quarter of net loss per share of $0.04 or adjusted net income per share of $0.04.

本季調整後 EBITDA 約為 540 萬美元，而去年同期調整後 EBITDA 為 620 萬美元。這導致每股淨虧損 0.02 美元，或調整後每股淨收益 0.04 美元，而去年同期每股淨虧損 0.04 美元或調整後每股淨收益 0.04 美元。

Our improvement to our marketplace GunBroker.com progresses as our cart platform is on schedule to launch on April 1. We purchased approximately 145,000 shares of our common stock under our repurchase plan in the reported quarter, bringing us to just over 1.3 million shares repurchased in total under the plan. That concludes our opening remarks. I will now turn the call over to the operator for questions. Thank you.

隨著我們的購物車平台按計劃於 4 月 1 日推出，我們對市場 GunBroker.com 的改進也在取得進展。在報告的季度中，我們根據回購計劃購買了約 145,000 股普通股，使我們根據計劃回購的股票總數略高於 130 萬股。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 MKM.

（操作員說明）Matt Koranda，ROTH MKM。

Hey guys, good afternoon. Maybe just a few on the AMMO business first, and then we'll cover GunBroker, but maybe just talk about the drivers of brass revenue in the quarter. They fell off a bit sequentially, obviously up a bunch year-over-year. Maybe just talk about sort of the puts and takes around why that fell on a quarter-over-quarter basis.

嘿夥計們，下午好。也許首先只討論 AMMO 業務，然後我們將討論 GunBroker，但也許只討論本季黃銅收入的驅動因素。它們連續下降了一點，但同比明顯上升了很多。也許只是談談看跌期權和看跌期權為何逐季度下跌。

And then where should that volume be headed in the fourth quarter and beyond? I know you mentioned it as a meaningful driver, but just any additional color that we can kind of think about as it pertains to brass volume.

那麼第四季及以後的銷量應該走向何方呢？我知道你提到它是一個有意義的驅動程序，但只是我們可以考慮的任何附加顏色，因為它與黃銅體積有關。

Absolutely, thank you for the question, Matt. Yeah, our brass came back online back in November, but really we held back some brass for our own internal loading to meet future production as we launched our HUNT lines. And we're making sure that we've got some brass available that will pass-through production over the course of the next quarter to two quarters.

當然，謝謝你的提問，馬特。是的，我們的黃銅在 11 月恢復上線，但實際上，我們在推出 HUNT 生產線時保留了一些黃銅用於我們自己的內部裝載，以滿足未來的生產。我們正在確保我們有一些可用的黃銅，這些黃銅將在下一個季度到兩個季度內進行生產。

Brass sales are strong, great pipeline, production -- more capacity is coming online every day. It's still a great play for us and it was really just holding back inventories for our own loading.

黃銅銷售強勁，管道和生產​​量大——每天都有更多的產能上線。這對我們來說仍然是一個很棒的遊戲，它實際上只是保留了我們自己裝載的庫存。

Okay, and then maybe just talk about the levers, Jared, that you have at your disposal here to get that gross margin into the positive territory in the fourth quarter. Nice improvement on a sequential basis. I assume it's kind of a combination of a mix of more brass sales, pricing, firming up in the loaded round side of things, but maybe just unpack a bit more for us in terms of how you're thinking about getting to positive gross margins in the fourth quarter.

好吧，然後也許只是談談賈里德，你可以使用哪些槓桿來使第四季度的毛利率達到正值。連續的進步很好。我認為這是更多黃銅銷售、定價、在負載方面的鞏固的結合，但也許只是為我們提供更多關於您如何考慮獲得正毛利率的信息在第四季度。

Our brass production, Matt, is still less than 30% of the total capacity that we have. So it's really about continuing to build out those brass lines. We saw a sequential price decrease, reduction in tooling cost, reduction in material for our entire brass casings division as we push more into these larger calibers.

我們的黃銅產量，馬特，仍然不到我們總產能的 30%。所以這實際上是關於繼續建立這些黃銅生產線。隨著我們將更多的產品推向更大的口徑，我們看到價格連續下降，模具成本降低，整個黃銅外殼部門的材料減少。

As I just mentioned, we landed a very large contract in conjunction with ZRODelta on the .50 cal, 12.7 by 108 line. That's a further big margin play for us going into 2024. We'll continue to press on these larger calibers as more capacity comes online. We think price out there on the market is fairly healthy. Inventories are healthy. We see positive trends ahead.

正如我剛才提到的，我們與 ZRODelta 共同簽訂了一份非常大的合同，涉及 0.50 cal、12.7 x 108 生產線。進入 2024 年，這對我們來說將是一個更大的利潤空間。隨著更多產能上線，我們將繼續推動這些更大口徑的產品。我們認為市場上的價格相當健康。庫存健康。我們看到未來的正面趨勢。

Does that mean we can expect positive gross margins in the AMMO business in the fourth quarter?

這是否意味著我們可以預期第四季度 AMMO 業務的毛利率為正？

I think we're going to be well on our way to breakeven our positive gross margins in the fourth quarter. We're super confident on our ability to start cranking out more and more brass. This 12.7 contract, it's really about making sure that those start dates are on target. But yeah, we're confident whether it's Q4 or our Q1 2025 fiscal year.

我認為我們將在第四季順利實現正毛利率的損益兩平。我們對開始生產越來越多黃銅的能力非常有信心。這份 12.7 的合約實際上是為了確保這些開始日期符合目標。但是，是的，無論是 2025 財年第四季還是第一季度，我們都充滿信心。

Okay, all right, helpful. And then just turn into GunBroker, I guess I'm curious -- the obvious question is GMV looks like it was down year-over-year. Despite if you look at mix and sort of the surge in activity that we saw in terms of the primary firearms market, it was up at least in October and November, I think kind of marginally positive in December even. So, just any help on the differential there for you guys versus mix, why you didn't necessarily see as much of the pickup. It'd just be helpful to kind of get the understanding for the business.

好的，好的，有幫助。然後就轉向 G​​unBroker，我想我很好奇——明顯的問題是 GMV 看起來逐年下降。儘管如果你看看我們在主要槍支市場上看到的活動激增的組合和排序，它至少在 10 月和 11 月有所上升，我認為即使在 12 月也略有積極。所以，只是對你們與混合的差異有任何幫助，為什麼你們不一定看到那麼多的拾音器。這對於了解業務會有幫助。

What I think the question that you asked was, why were we not up as high as mix? Is that the right way to look at it?

我認為你問的問題是，為什麼我們沒有達到混合水平？這是正確的看待方式嗎？

Yes, yes, exactly.

是的，是的，完全正確。

Okay, GunBroker is a resource for this industry and when there's an abundance of guns on the shelf, they're not necessarily running down and going to GunBroker as often. We still saw positive trends. We continue to see positive trends going into Q4. You got to remember, we haven't really delivered to our marketplace-enhanced checkout features, and we see that as a big upside for us going into Q1 of 2025 as we roll out the multi-item cart and checkout process.

好吧，GunBroker 是這個行業的資源，當貨架上有大量槍支時，它們不一定會經常被耗盡並流向 GunBroker。我們仍然看到積極的趨勢。我們繼續看到第四季度的積極趨勢。您必須記住，我們還沒有真正提供市場增強的結帳功能，我們認為這對我們進入 2025 年第一季來說是一個很大的好處，因為我們推出了多商品購物車和結帳流程。

Okay, all right, got you. I guess just last one on GunBroker, what are the last hurdles that you have to clear to get to the payments and carting initiative on April 1? I mean, it's coming up pretty fast here, a little over a month away. Maybe just discuss any additional items that need to be tackled.

好的，好的，明白了。我想這只是 GunBroker 上的最後一個，為了在 4 月 1 日實現支付和購物計劃，您必須克服的最後障礙是什麼？我的意思是，這裡進展得很快，還有一個多月的時間。也許只是討論需要解決的任何其他問題。

And I did hear, I guess, if I heard you correctly, did you say on or before? What are some of the things that could happen to swing you before April 1 in terms of getting to carting?

我確實聽到了，我猜，如果我沒聽錯的話，你說的是「在」還是「之前」？在 4 月 1 日之前，有哪些事情可能會影響您參加卡丁車比賽？

Honestly, we just need a few more weeks of testing. We'd like to see a couple Sundays of higher volume traffic. There's not really anything that's keeping us. It's just making sure that when we do roll it out, it rolls out successfully. I can't speak to really any one impediment that keeps us from going live.

老實說，我們只需要再進行幾週的測試。我們希望看到幾個週日的流量更高。確實沒有什麼可以留住我們。只是確保當我們推出它時，它會成功推出。我無法談論任何阻礙我們上線的障礙。

Okay, great. I'll turn it over. Thanks, guys.

好的，太好了。我會把它翻過來。多謝你們。

Thank you, Matt.

謝謝你，馬特。

Mark Smith, Lake Street.

馬克史密斯，湖街。

Hi, guys. First one for me, just wanted to ask about this recent contract. Jared, I don't know if you can give us any additional details or if you can quantify maybe what margin or profitability on this contract business would be like kind of versus your typical ammo or typical brass casing business.

嗨，大家好。我的第一個問題只是想問一下最近的合約。賈里德，我不知道您是否可以向我們提供任何其他詳細信息，或者您是否可以量化該合約業務與典型的彈藥或典型的黃銅外殼業務相比的利潤或盈利能力。

Absolutely. Well, it's a little bit of a mixed bag on the margin because we're still seeing overheads across the entire ammunition business -- across our entire factory, a little higher than we would like. So with turning this line on, I mean, based upon our estimates, there's a 40% margin -- plus 40% margin on this play. It's 6 million pieces. We will be producing this well into the first part of 2025 calendar year. It's a strong 40%-margin play just on those cases.

絕對地。嗯，這在利潤率上有點好壞參半，因為我們仍然看到整個彈藥業務——我們整個工廠的管理費用，比我們想要的要高一些。因此，隨著這條線的開啟，我的意思是，根據我們的估計，有 40% 的利潤——再加上這場比賽的 40% 的利潤。是600萬塊。我們將在 2025 年上半年生產這口井。僅就這些案例而言，40% 的利潤率就很強勁。

Perfect. And then it looked like the proprietary ammo had a little better sales during the quarter than I'd expected. Was that just some of the new branding and shipping, some of maybe stuff in new boxes or things that looked a little better in the quarter?

完美的。然後看起來專有彈藥在本季度的銷量比我預期的要好一些。這只是一些新的品牌和運輸，一些新盒子裡的東西或本季看起來更好的東西嗎？

It's a little bit of the rebranding. We're really hitting our stride on the rebranding just now. Shipments are going out on the black and yellow boxes that have a better presence. I would tell you that I think it's a big part of market recovery. The sales team really hit its stride in Q4. We've got a really strong team that is out and I think people are starting to recognize the AMMO, Inc. brand again. The pricing out there is healthier than it was in Q2 and Q3 or in Q1 and Q2.

這是品牌重塑的一點點。我們現在在品牌重塑方面確實取得了進展。貨物裝在黑色和黃色的盒子上，這樣更顯眼。我想告訴你，我認為這是市場復甦的重要組成部分。銷售團隊在第四季度確實取得了長足的進步。我們擁有一支非常強大的團隊，我認為人們開始再次認識 AMMO, Inc. 品牌。那裡的定價比第二季和第三季或第一季和第二季更健康。

Okay. Next question for me is just looking at ammo margin here, still tough, but I'm curious if you can dive into a little bit more how much of that was maybe, we'll call it one-time-ish in nature with the press still being down, versus just kind of headwinds that are out there in the industry. In particular, for loaded ammo, what are you seeing for powder propellant and any other kind of costs that are hurting margin right now?

好的。我的下一個問題是看看這裡的彈藥餘量，這仍然很困難，但我很好奇你是否可以更深入地了解其中可能有多少，我們將其稱為一次性的與行業中存在的一些逆風相比，媒體仍處於低迷狀態。特別是，對於裝彈彈藥，您對火藥推進劑以及目前正在損害利潤率的任何其他類型成本有何看法？

There is certainly a constraint for propellant. I think the market is going to see that constraint more and more as the year goes on. I think that's going to impact some of the smaller players more than the bigger players. As we look into kind of the one-time plays -- I mean, once again, as I said earlier, we're still at less than 30% capacity of our rifle production, and there is a massive capacity still sitting there as we bring it on, more and more capacity day by day.

推進劑肯定存在限制。我認為隨著時間的推移，市場將越來越多地看到這種限制。我認為這對一些規模較小的企業的影響將大於規模較大的企業。當我們研究一次性的遊戲時——我的意思是，正如我之前所說，我們的步槍生產能力仍然不足 30%，而且在我們生產的過程中仍然有大量的產能存在。繼續吧，容量一天比一天大。

So that's really where our margin creation comes from. And then I think the inventory levels out there in the US market are relatively healthy. Despite it being an election year, I think people are coming off of this kind of post-'22, '23 slump. We came out of SHOT Show and talking to all the retailers and dealers out there, everybody's pretty confident about what we're seeing in the market.

這就是我們創造利潤的真正來源。然後我認為美國市場的庫存水準相對健康。儘管今年是選舉年，但我認為人們正在擺脫這種 22、23 年後的低迷狀態。我們從 SHOT Show 出來並與所有零售商和經銷商進行了交談，每個人都對我們在市場上看到的東西非常有信心。

Okay, the last question for me, this new contract is certainly a positive, curious across the board for your business, kind of how you feel about contract business. You've got, I think you call it your Signature on Target, happy and happy rounds. Just curious, any update on kind of your outlook on military or global contract business?

好的，我的最後一個問題是，這份新合約對您的業務來說肯定是積極的、全面的好奇，就像您對合約業務的感受一樣。我想你已經稱它為你的目標簽名，快樂又快樂的回合。只是好奇，您對軍事或全球合約業務的看法有何更新？

It's really, really solid and we've held off on taking large contracts, because we wanted real internal proof of performance before we go sign on to any larger deals. I mean, there's no lack of ability for us to go out and get multi-year contracts, but we really wanted to perform first. And I think some of our clients are waiting for us to perform first before they start sending in more orders.

這真的非常非常可靠，我們推遲了簽訂大型合同，因為在簽署任何更大的交易之前，我們需要真正的內部績效證明。我的意思是，我們並不缺乏出去獲得多年合約的能力，但我們真的想先表現出來。我認為我們的一些客戶正在等待我們先執行任務，然後才能開始發送更多訂單。

They know it's a new factory. They know we can produce premium rifle cases and cartridges. But once again, they want to see the proof before they bet the entire future of their supply lines honor. And so I think we're gaining that confidence back day by day. And we'll start taking those larger contracts, such as this 12.7 by 108 contract that we just took.

他們知道這是一座新工廠。他們知道我們可以生產優質的步槍盒和子彈。但再一次，他們希望在押注其供應線的整個未來之前先看到證據。所以我認為我們正在一天天地恢復這種信心。我們將開始承接那些較大的合同，例如我們剛剛承接的 12.7 x 108 合約。

Okay, great. Thank you.

好的，太好了。謝謝。

Thank you, Mark.

謝謝你，馬克。

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Jared Smith for any closing remarks. Please go ahead.

我們的問答環節到此結束。我想將會議轉交賈里德·史密斯先生發表閉幕詞。請繼續。

I want to thank you all for participating on today's call and your interest in AMMO, Inc. We look forward to sharing our progress when we report our fiscal fourth quarter and full fiscal year 2024 results in June. Thanks and have a great day.

我要感謝大家參加今天的電話會議以及對 AMMO, Inc. 的關注。我們期待在 6 月報告第四財季和 2024 財年全年業績時分享我們的進展。謝謝，祝你有美好的一天。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。