Outdoor Holding Company · NASDAQ:POWW
Outdoor — AMMO — Investor Presentation (September 2022)
27 slides from Outdoor's investor presentation, September 2022
Slide 1: September 2022
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Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This document contains certain “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other
Slide 3: Company Overview
COMPANY OVERVIEW AMMO, Inc. is a technology-driven ammunition manufacturing and marketplace company Action Outdoor Sports (Manufacturing) Action Outdoor Sports Revenue ($M) • Engages in the design, production, and marketing of ammunition and ammunition component products $44.3 $32.2 • Serves a varie
Slide 4: Company History
COMPANY HISTORY AMMO awarded AMMO acquires the U.S. DoD Dev. exclusive license to AMMO closes JMC Contract – Fred Wagenhals hybrid luminescence brass case division Ballistic Match founds AMMO, Inc. technology used in acquisition Sniper Ammo STREAK ammunition AMMO establishes AMMO acquires AMMO sales
Slide 5: The Spin Will Create Two Industry Leaders
THE SPIN WILL CREATE TWO INDUSTRY LEADERS OUTDOOR ONLINE ACTION OUTDOOR SPORTS BRANDS FORUMS GunBroker.com is the largest online marketplace High-growth ammunition business, generating INVESTMENT dedicated to firearms, hunting, shooting and related attractive cash flow outdoor products CAPITAL Major
Slide 6: The Spin Will Create Value for Our Shareholders
THE SPIN WILL CREATE VALUE FOR OUR SHAREHOLDERS • 1 Different Investor Bases: Outdoor Online (“OO”) is a low capital intensity, high margin technology business; Action Outdoor Sports (“AOS”) is a manufacturing company with capital intensity, lower margins, strong cash flow and proprietary products;
Slide 7: Outdoor Online
OUTDOOR ONLINE 7
Slide 8: Outdoor Online Overview
OUTDOOR ONLINE OVERVIEW Profile Investment Highlights Leading online marketplace for the legal sale of firearms, ammunition and accessories with 6+ million registered users 1 Large base of outdoor-focused customers Robust infrastructure and technology base 20+ year heritage of innovation 2 that can
Slide 9: Leading Marketplace Platform
LEADING MARKETPLACE PLATFORM Unique Capabilities + Strong Barriers to Entry Proprietary Operating Platform Unmatched Scale • GunBroker.com developed its own proprietary source code upon • GunBroker.com has accumulated a critical mass of users, which which the marketplace website operates allows the
Slide 10: Action Outdoor Sports
ACTION OUTDOOR SPORTS 10
Slide 11: Action Outdoor Sports Overview
ACTION OUTDOOR SPORTS OVERVIEW Profile Investment Highlights Leading ammunition and brass casing manufacturer with proprietary Differentiated, patented products backed by products 1 leading technology New, state-of-the-art 185,000 sq. ft. ammunition and brass case Opportunity for efficiencies and ma
Slide 12: Differentiated and Patented Ammunition Products
DIFFERENTIATED AND PATENTED AMMUNITION PRODUCTS AOS vs. COMPETITION AOS Industry Patented / Non-commodity Product Commoditized Branded / Licensed Marketing Characterized by Use / SKU Premium Quality / Price Point Value 30%+ Target Product Margins 10-20% Average Young, Active, New Users Target Custom
Slide 13: STREAK Visual Ammunition
STREAK VISUAL AMMUNITION EXCLUSIVE PATENTED TECHNOLOGY Hover pointer for PLAY options Young, Active, New Shooters 13
Slide 14: Innovative, Patented Technology (Commercial)
INNOVATIVE, PATENTED TECHNOLOGY COMMERCIAL AMMO, INC. Signature Line STREAK VISUAL AMMUNITION® /stelTH/ Subsonic Ammunition AMMO, INC. Signature Blackline Superior ball and hollow point Exclusive patented technology Designed specifically for superior Superior hollow point ammunition loaded for extre
Slide 15: Innovative, Patented Technology (Defense)
INNOVATIVE, PATENTED TECHNOLOGY DEFENSE Hard Armor Piercing Extremely effective and accurate Optimized incendiary Manufactured in America Incendiary O MA MAG alternative to current armor piercing projectile designed to to match grade specs to ensure O MA MAG (HAPI™) rounds offered by defense penetra
Slide 16: Multi-Channel Distribution
MULTI-CHANNEL DISTRIBUTION Current Ammunition distribution channels Online / Retail Shooting Ranges Distributors Buying Groups 16
Slide 17: Significant Military Opportunity
SIGNIFICANT MILITARY OPPORTUNITY Current progress in the global defense market Next Generation ammunition AP/HAPI™, Compliant with current U.S. O.W.L. Technology™, Ballistic Matching State Department and Department of Sniper and Signature-on-Target (SoT) Commerce statutes and regulations Ammunition
Slide 18: Significant Military Opportunity: Market Penetration Strategy
SIGNIFICANT MILITARY OPPORTUNITY MARKET PENETRATION STRATEGY Launched in 2019 with Mission to Deliver High-Quality, Precision Rounds for Military & Defense Operations Across the World Introduce Proprietary Technologies Penetrate and Expand Market Share Strong demand for our patented Armor Piercing (
Slide 19: Financial Performance
FINANCIAL PERFORMANCE 19
Slide 20: Financial Performance
FINANCIAL PERFORMANCE Net Sales Adjusted EBITDA2 Fiscal Year Ended March 31 Fiscal Year Ended March 31 ($ in millions) ($ in millions) $109.5 $305.0 $75.5 $240.3 Guidance1 Guidance1 $8.1 $62.5 $14.8 $2.6 $4.6 -$6.1 -$7.8 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022
Slide 21: FY2023 Guidance
FY2023 GUIDANCE FY2023 GUIDANCE Action Outdoor Sports, Inc. Outdoor Online, Inc. (Manufacturing) (Marketplace) Revenues $230 million - $240 million $70 million EBITDA $35 million - $38 million $47 million Adjusted EBITDA $57 million - $60 million $51 million 21
Slide 22: Investment Highlights
INVESTMENT HIGHLIGHTS Strong record of operational execution, revenue growth, margin 1 expansion and free cash flow generation 2 Successful track record of acquisitions and integration 3 Large addressable markets with multi-channel, diverse distribution Spin transaction is a likely catalyst for valu
Slide 23: Appendix
APPENDIX 23
Slide 24: Spin Transaction Details
SPIN TRANSACTION DETAILS AMMO anticipates the transaction will be in the form of a dividend distribution to its shareholders of 100% of the stock of AOS, which will become a new, independent publicly traded company The distribution is intended to be tax-free to both companies and their shareholders
Slide 25: Non-GAAP Financial Summary (2022)
NON-GAAP FINANCIAL SUMMARY (2022) *SEE RECONCILIATION OF GAAP TO NON-GAAP AOS Outdoor Online Corporate Total Manufacturing Marketplace Net Sales $ 172,708,804 $ 67,560,362 $ - $ 240,269,166 EBITDA $ 20,335,462 $ 48,020,186 $ (13,845,353) $ 54,510,295 Non-GAAP Adjustments Excise Taxes 14,646,983 - -
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION For the Year Ended 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar-19 Reconciliation of GAAP net income to Adjusted EBITDA Net Income (Loss) $ 33,247,436 $ (7,812,294) $ (14,556,680) $ (11,709,412) Provision for income taxes 3,285,969 - - - Depreciation and amortization 17,339,0
Slide 27: Important Additional Information and Where to Find It
Important Additional Information and Where to Find It AMMO, Inc. (the “Company”) intends to file a proxy statement on Schedule 14A, an accompanying WHITE universal proxy card and other relevant documents with the Securities and Exchange Commission (“SEC”) in connection with its solicitation of proxi