Byrna Technologies Inc. (OTCQB: BYRN) (CSE: BYRN) today announced results for its fiscal third quarter ended August 31, 2020.
Third Quarter 2020 Compared to Third Quarter 2019:
- Revenues were $4,198,157 compared to $307,101.
- Gross margin was 51% compared to 19%.
- Loss from operations was $566,358 compared to a loss from operations of $706,153.
Nine Months 2020 Compared to Nine Months 2019:
- Revenues were $5,537,141 compared to $423,977.
- Gross margin was 47% compared to 23%.
- Loss from operations was $3,051,566 compared to a loss from operations of $2,501,937.
"Byrna Technologies generated a significant increase in sales in our fiscal third quarter, both on a year-over-year and a sequential basis," stated Bryan Ganz, Byrna Technologies' Chief Executive Officer. "The current socio-political climate has created a heightened sense of the need for effective and reliable less-lethal self-defense in both civilians and law enforcement professionals. This, coupled with increased awareness of the unique aspects of our product resulting from favorable, high-profile media coverage, drove rapid order growth for our Byrna® HD less-lethal personal security device."
Mr. Ganz continued, "As we announced yesterday, we recently commenced production at our new Fort Wayne, IN manufacturing facility. I am very proud of our team's ability to get this new production capacity up and running nearly a year ahead of plan in order to fulfill our robust backlog and satisfy our customers' orders, as well as capitalize on the extraordinary demand for the Byrna® HD that we expect to continue for the foreseeable future. With Fort Wayne's 500 unit per day capacity adding to our 600 unit per day production in South Africa, the recent additions to our management team, and investments in corporate infrastructure, we believe Byrna is now very well positioned as a formidable player in the growing less-lethal defense market."
Business Overview
Revenues were $4,198,157 in the third quarter of 2020, representing a year-over-year increase of $3,891,056. This increase was driven by strong growth in orders for the Company's Byrna® HD resulting from enhanced market awareness of the product.
Gross profit was $2,129,534 representing a gross margin of 51% compared to $59,422, or a 19% gross margin in the prior year period. The increase in gross profit was the result of substantially higher revenues, with margin expansion reflecting greater absorption of fixed costs on higher production and sales volumes.
Operating expenses were $2,695,892 in the third quarter of 2020, up from $765,575 in the prior year period. The increase in operating expenses reflects increased investment in corporate infrastructure to build and support growth in revenues including employee-related expenses, marketing costs, and accounting, auditing, and bank fees.
Financial Position at August 31, 2020:
- Cash of $11,791,354, including $7,136,946 of restricted cash.
- Total assets of $21,909,431.
- Total debt of $217,171.
- Stockholders' equity of $8,778,918.
The Company's cash position at August 31, 2020 was an increase of $10,709,454 from November 30, 2019, primarily due to early warrant exercises and free cash flow (defined as cash flow from operations less purchases of property and equipment) generation during the nine-month period. Cash flow from operations for the first nine months of fiscal 2020 was $4,784,054 and free cash flow was $3,761,084.
OutlookMr. Ganz concluded, "Based on our current backlog of orders, the ramp of production at our recently commissioned manufacturing facility in Fort Wayne, and the sustained production rate at our facility in South Africa, we expect revenues for the full fiscal year 2020 to be in the range of $16 – $18 million. Additionally, we expect our fiscal fourth quarter of 2020 ending November 30th to be our first quarter of positive net income, as we benefit from increasing operating leverage on continued strong sales growth. Overall, we are optimistic about the Company's prospects for delivering improved profitability and increased cash flow heading into the end of 2020 and entering 2021, as we work to build greater value for our stockholders."
About Byrna Technologies Inc.
Byrna is a technology company, specializing in the development, manufacture, and sale of innovative less lethal equipment and munitions. For more information on the Company, please visit the corporate website here or the Company's investor relations site here. The Company is the manufacturer of the Byrna®HD personal security device, a state of the art handheld CO2 powered launcher with the look and feel of a handgun, designed to provide a less-lethal alternative to a firearm for the consumer, private security, and law enforcement markets . The Byrna HD is engineered with patented designs and proprietary parts. Unlike pepper spray and stun guns, it has an effective range of up to 60 feet and comes with multiple easily reloadable magazines that can hold multiple .68 caliber hard kinetic rounds or highly chemical irritant and pepper rounds designed to effectively stop an assailant without loss of life or permanent injury. To purchase Byrna® products visit the Company's e-commerce store.
