AMMO, Inc.’s Record Backlog Increases to $80.1 MM

Discussion in 'General Firearm Discussion' started by azguy1911, Sep 30, 2020.

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  1. azguy1911

    azguy1911 I'm done buying guns, I'm just a bystander now

    Oct 22, 2015
    If a small ammo company has a $80 million back logged imagine Federal, hundreds of millions, I would assume

    SCOTTSDALE, Ariz., Sept. 28, 2020 (GLOBE NEWSWIRE) -- AMMO, Inc. (OTCQB: POWW) (“AMMO” or the “Company”), a premier American ammunition and munition components manufacturer and technology leader, has reported its record backlog, or booked orders, increased to $80.1 million as of August 31, 2020—the largest in Company history.

    “Our record backlog has continued to grow, with booked orders coming in across all channels, including commercial, export, military, and law enforcement,” said Fred Wagenhals, AMMO’s CEO. “In fact, NICS data shows federal background checks for purchasing firearms have increased 72% year-over-year and we don’t anticipate consumer demand for firearms or ammunition slowing anytime soon. As a result, our facilities continue to operate at near maximum capacity to meet customer needs and we are continuing to expand our production capabilities. In addition, we continue to expect that we will achieve positive adjusted EBITDA at the end of our fiscal second quarter as we remain committed to prudently managing expenses through restructuring efforts.”

    The National Shooting Sports Foundation (NSSF) tracks the background checks associated with the sale of a firearm based on the FBI’s National Instant Background Check System (NICS). NSSF-adjusted NICS checks for January through July 2020 were a record 12.1 million, which is up 72%. Nearly 5 million of the record 12.1 million background checks are reported to be first-time gun owners.

    About AMMO, Inc.
    AMMO was founded in 2016 with a vision to change, innovate and invigorate the complacent munitions industry. The Company designs and manufactures products for a variety of markets, including law enforcement, military, hunting, sport shooting and self-defense. AMMO promotes branded munitions, including its patented STREAK™ Visual Ammunition, /stelTH/™ subsonic munitions, O.W.L. Technologies®, and Night OPS (One Precise Shot) – a lead-free frangible tactical line of munitions for self-defense. The Company’s corporate offices are headquartered in Scottsdale, Arizona. Manufacturing operations are based in both northern Arizona and Manitowoc, Wisconsin. For more information please visit: www.ammoinc.com.
     
    boatdoc, wrmiller and Nick Rice like this.
  2. fallenangelhim

    fallenangelhim chicken wings

    Jan 18, 2018
    Yet Remington is selling
     

  3. Genes 1911

    Genes 1911 Well-Known Member

    406
    Nov 10, 2019
    $80M today? OR $25M six months ago??
     
  4. azguy1911

    azguy1911 I'm done buying guns, I'm just a bystander now

    Oct 22, 2015
    has reported its record backlog, or booked orders, increased to $80.1 million as of August 31, 2020—the largest in Company history.
     
  5. henryt

    henryt Well-Known Member

    124
    Aug 7, 2020
    I bought Vista Outdoor on news of their Remington Ammo purchase. I am up 7.86%.
     
    livinthelife likes this.
  6. WVsig

    WVsig Well-Known Member

    953
    Mar 8, 2018
    In past week the available inventory has ground to a halt. Nothing is coming into stock.
     
  7. bdickers

    bdickers Well-Known Member

    725
    Oct 31, 2012
    Where do you guess it's all going?
     
  8. WVsig

    WVsig Well-Known Member

    953
    Mar 8, 2018
    I have two theories.

    One is that everyone has pushed out everything that have produced and are in a catch up period were there was a lull in production because the raw materials and components were not available. It is a lag that will correct itself and within a few weeks over priced ammo will be back on the shelves. $.30 to $.50 9mm.

    The second is that the manufacturers are pushing it out and the distribution and dealers are sitting on the inventory. Brownells has not had ammo in any quantity for almost 2 weeks. All of their pricing for brass cased ammo is now at $.35-$.50 a round. Midway has nothing. SG Ammo, PSA etc... when they get it are selling for $.45+. It would not surprise me if they are sitting on it waiting to see where the price goes. By withholding ammo in an already tight market will drive the price even higher. We have already seen prices go from $14.99 to $19.99 at Federal direct. Holding ammo for 60 days could get them another 30%.

    I hope it is the first one but it would not shock me to find out its the second.
     
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  9. El Perdido

    El Perdido Fictional Western Sage

    Oct 3, 2011
    I have never heard of, nor have I ever seen any ammunition by "Ammo Inc"
     
  10. boatdoc

    boatdoc Well-Known Member

    Aug 3, 2015
    Potus Trump should sell us the surplus ammo that Obamanation bought for every department including the post office. they sure don't need it ;)
     
  11. azguy1911

    azguy1911 I'm done buying guns, I'm just a bystander now

    Oct 22, 2015
    TargetSports, Lucky Gunner and Bulk Ammo have hardly had a single piece of 9mm in a while
     
    WVsig likes this.
  12. WVsig

    WVsig Well-Known Member

    953
    Mar 8, 2018
    Yup and other sources are drying up.
     
  13. NIU2009

    NIU2009 Active Member

    231
    Nov 6, 2018
    I think you're correct on both, but right now the problem is more related to the second. The hitch is always in distribution. These places need product to sell and rather than dribble it out a bit at a time, they're sitting on it. It's far easier for some businesses to absorb a temporary shortage of product than a year. Even with ammo more doubling and tripling in retail price, it won't make up for the lack of volume.

    I'll add one more nuance to that - I don't think distributors are reaping most of the price increases. They can't afford to hike their prices too much or many places will not buy, or buy much less, for fear of being left holding the bag. So, my educated guess is that 80% of the price increases are retail side.
     
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  14. WVsig

    WVsig Well-Known Member

    953
    Mar 8, 2018
    I think that distributors right now can charge whatever they want. Retailers have to buy it. They have no choice which then leads them to charge more at the retail level because they have to maintain a profit margin and stay in business.

    It would not surprise me that both levels are holding back. In the past 1 week more and more brass cased ammo is being sold at $.50. It takes longer to sell out but it is still selling out. $.50 is the going rate now for 9mm brass cased ammo. I am only seeing it go up. The only stuff that stays in stock is reloads and steel priced above $.55.

    Welcome to the new normal.
     
    cgff and 10mm Guy like this.
  15. NIU2009

    NIU2009 Active Member

    231
    Nov 6, 2018
    I'd buy another 1000 rounds of 9mm if I could find it for $0.50/round right now. I'm fine on 5.56 and 7.62, but I wasn't stacked nearly as deep as I thought I was with 9mm when all of this started. Range time is going to be curtailed even more than it already was.
     
    Dreadnought likes this.
  16. Old Sea Dragon

    Old Sea Dragon Well-Known Member

    Feb 10, 2018
    We started selling it since March, at Rural King, probably because our buyers were able to get it, when other brands were not available. Small boxes with tracer bullets, Fmj or Jhp. $5 a box difference in price but not cheap either way. 9, 40, and 45
     
  17. BBP

    BBP Enabler Sponsor

    Feb 1, 2014
    The price increases are on every level.

    I've received notices for three price increases this year from most manufacturers. You aren't safe if your orders are already placed and haven't shipped. If you want your order to ship you pay the new price.

    I just received an email from a distributor today that has cases of buckshot for $70 more then I paid at another distributor last week.

    Retailers are raising prices to match what they can get online for the ammo.



    Sent from my SM-G973U1 using Tapatalk
     
    cgff and WVsig like this.
  18. WVsig

    WVsig Well-Known Member

    953
    Mar 8, 2018
    That is what I am hearing from the smaller retailers.
     
    cgff likes this.
  19. WVsig

    WVsig Well-Known Member

    953
    Mar 8, 2018
  20. cgff

    cgff Well-Known Member

    Aug 24, 2015
    We got an assortment of ammunition in today no real quantities of anything, no 380!
    We are seeing prices up for all, across the board,
    The foot traffic for those looking for all the favorite pistol calibers is triple + what there normally is for a week day. Federal 250 rd boxes/buckets of 115 synthetc priced at 85.00 tax included retail
    Originally I was thinking the long term price increase would be 15-20% of what it was 12-19
    With fire arms sales continuing at a steady pace with more new gun owners and those taking CCW classes, training shooting etc,
    I’m just guessing that pricing will stabilize with a 35%-50% increase from where it was 12-19.
     

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