Outdoor Holding Company (POWW) Earnings Call Transcript & Summary

The meeting will now proceed to the fourth item on the agenda, to approve the stock initiative plan amendment proposal. Mr. Chairman, I move the adoption of the following resolution, the approval of the stock incentive plan amendment proposal. Do I have a second?

Second.

Shareholders who have sent in proxies need not take any further action with respect to any of the matters that we voted on today. If you wish to vote during the meeting, please use one of the links made available to you on your screen. The next item on the agenda is the preliminary report of the inspectors. Any ballots collected before the polls close but not reflected in the preliminary report will be reflected in the final report of the inspectors. I am presenting the preliminary report of the inspectors. Mr. Chairman, the inspectors of election have presented their preliminary report. They have determined that each of the 9 directors nominated by the Board for election received excess of 82% of the votes cast for election of directors. The inspectors also determine that the ratification of the appointment of Pannell Kerr Forster of Texas, P.C as our independent registered public accounting firm, approval of a nonbinding, advisory basis, the compensation of our named executive officers, to approve the stock incentive plan amendment proposal. Based upon the preliminary report of the inspectors of election, I declare that Fred Wagenhals, Rusty Wallace, Harry Markley, Jessica Lockett, Richard Childress, Steve Urvan, Wayne Walker, Christos Tsentas, Randy Luth, are elected directors, the appointment of Pannell Kerr Forster of Texas, P.C as our independent registered public accounting firm, approval on a nonbinding, advisory basis, the compensation of our named executive officers, the stock incentive plan amendment proposal ratified. There being no further business to come before the meeting and all ballots have been collected, the polls are now closed. That concludes the formal part of our meeting. The annual meeting is adjourned. And now we'll open it up for questions. Thank you.

Thank you, Tod. This is Rob Wiley. I'm the Chief Financial Officer. Our team has been reviewing questions submitted during the course of the meeting. And we have some common themes Fred and I will address that touch on a lot of those submitted questions. I will start and Fred will pick it up when I am finished. In February, the Board authorized a share repurchase program for up to $30 million. We're currently disappointed at the levels that our stock is trading at. And in December, we announced that we have initiated this buyback share repurchase program. And we'll continue to update the market and shareholders accordingly through our public filings. We have grown this business from $2 million in revenues to $240 million in revenues in our most recent fiscal year. We find ourselves in an evolving market at this time, but we are very excited about the future of this company and how we believe we can grow the business from this point in our company's short history. We have a brand-new state-of-the-art facility that significantly increases our capacity and affords us cost savings. We have important new supplier relationships coming online that we have worked hard to develop. With our new capital equipment, we can now bring operational tempo in our new plant to a pace that reduces expenses such as annealing. Our developmental government programs are moving at a quick pace, and we continue to meet and exceed milestone testing protocols. On the GunBroker side of the business, we are working diligently on improvements to the site with additions such as our payment processing suite and our in-house marketing and data analytics suite that we expect to increase both our top line, revenue and profitability. And with that, I'll turn it over to you, Fred.

Thank you. The proxy contest was obviously an unpleasant distraction for this company. The company was required to address this in the midst of a rapidly changing market on the sales side as it relates to the public stock market. But we weathered the storm and came out of this a stronger company. We have a newly contested Board of Directors with a total of 9 folks that are fully engaged and highly motivated to steer this company into its bright future. I'm excited to have Wayne, Christos and Randy Luth as part of our Board, and I'm grateful Steve Urvan and the Board was able to resolve the proxy contest in an amicable way for the benefit of the shareholders and the entire AMMO team. We are going to have to work closely with management to look at additional opportunities to refine operations, manage expenses and expand capabilities, and thus revenue across the commercial ammunition market. Our amazing new plant continues to bring new capabilities online and expand production volume. The AMMO team included management, staff and the Board have a lot of hard work to do. I am confident we have the right team for the right job in the place at this time. We canvassed the market for the past couple of years to locate a proper additional team member to add to our management, and we're excited to identify Jared Smith, who officially came on the company January 3 of this year. His couple of decades of experience in Ammunition space, on the manufacturing, operations and the sales side of the house will provide incredible benefits as he's already working hard to get fully engrossed in the operations so he can enhance operations and overhaul financial performance. In the coming meetings, I am certain you will have the opportunity to hear directly from Jared as we provide further update reports on operations. We took this company from $2 million to over $200 million over the course of a few short years. We identified and closed multiple transactions valued at excess of $0.25 billion. We design, build and open a cutting-edge plant, and we are confident we are positioned to take advantage of the evolving market, both domestically, internationally and in our government programs. We have secured hard-fought shelf space in most major big-box stores, and we'll continue to develop more efficient and -- cost efficiency supply relationships to support the increasing business operations on both the Ammunition and the Marketplace sides of business. Our Board is fully engaged. The management team couldn't be more motivated. And our full team in Atlanta, Wisconsin and in Arizona are running into the office each day, excited to take the next step as we continue to chart a growth plan for this company. Thank you for your support, shareholders, and we will continue to build a great company over the next 12 to 18 months.

Thank you, Fred. That concludes our annual meeting. As Fred mentioned, we appreciate your support and appreciate you attending this meeting. If you have any additional questions, please reach out to our IR e-mail address, ir@ammo-inc.com and thank you again.

That concludes today's meeting. Thank you for attending. You may now disconnect.