BYRNA FORECAST REVENUES OF $55 TO $60 MILLION FOR FISCAL YEAR 2023
ANDOVER, Mass., Feb. 9, 2023 /PRNewswire/ — Byrna Technologies Inc. (NASDAQ: BYRN) (“Byrna”, “the Company”, “we” or “us”) today announced financial results for its fiscal fourth quarter (Q4 FY22) and full year (FY22) ended November 30, 2022.
2023 should be a very exciting year for Byrna as we roll out these new products and begin production at our new Argentinian production facility. While there are always hiccups with any new product launch or the opening of any new subsidiary or facility, we expect that the combination of new products and a production facility dedicated to the South American market will open significant new markets and new opportunities for Byrna.”
Conference Call
Byrna Technologies will host a conference call later this morning at 9:00 am ET to review these results. To listen to the call live, dial (201) 689-8354 or (877) 709-8150 and ask for the Byrna Technologies call. The question-and-answer portion of the call will be open to industry research analysts. To listen to a simultaneous webcast of the call, please visit ir.byrna.com ten minutes prior to the start of the call and click on the Investors section to download and install any necessary audio software. If you are unable to listen live, the conference call webcast will be archived on Byrna Technologies’ website for thirty days.
About Byrna Technologies Inc.
Byrna is a technology company, specializing in the development, manufacture, and sale of innovative non-lethal personal security solutions. 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® SD personal security device, a state-of-the-art handheld CO2 powered launcher designed to provide a non-lethal alternative to a firearm for the consumer, private security, and law enforcement markets. To purchase Byrna products, visit the Company’s e-commerce store. www.byrna.com.
Forward Looking Information
This news release contains “forward-looking statements” within the meaning of the securities laws. All statements contained in this news release, other than statements of current and historical fact, are forward-looking. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “intends,” “anticipates,” and “believes” and statements that certain actions, events or results “may,” “could,” “would,” “should,” “might,” “occur,” or “be achieved,” or “will be taken.” Forward-looking statements include descriptions of currently occurring matters which may continue in the future. Forward-looking statements in this news release include but are not limited to the Company’s statements related to its revenue projections and related guidance for 2023, expected profitability, margins and cash flows for 2023, expected MAP holidays and discounts during 2023, continuing growth of web traffic, sales trends in the less lethal industry, public sentiment relating to gun violence and trends in firearm laws, trends relating to repeat customers and the expected lifetime value of customers, the expected timeline and effect of introducing a South American production facility, expected macroeconomic trends, including prices and interest rates, brand awareness and brick and mortar stores, replenishment of raw materials and components, including prototypes, to meet inventory, production, new product introduction and sales goals, features of, market reception to, and adoption of new products, and the impact of new products and sales channels on FY 2023 sales. Forward-looking statements are not, and cannot be, a guarantee of future results or events. Forward-looking statements are based on, among other things, opinions, assumptions, estimates, and analyses that, while considered reasonable by the Company at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies, and other factors that may cause actual results and events to be materially different from those expressed or implied.
Any number of risk factors could affect our actual results and cause them to differ materially from those expressed or implied by the forward-looking statements in this news release, including, but not limited to, disappointing market responses to current or future products or services, prolonged, new, or exacerbated disruption of our supply chain, the further or prolonged disruption of new product development, production or distribution or delays in entry or penetration of sales channels due to inventory constraints, the ability to begin production at a new South American facility in a timely fashion or at all, competitive factors, pandemic-related factors, civil unrest, increased shipping costs or freight interruptions, prototype, parts and material shortages, particularly of parts sourced from limited or sole source providers, reduced air freight capacity, or otherwise; determinations by third party controlled distribution channels, including Amazon, not to carry or reduce inventory of our products, potential cancellations of existing or future orders including as a result of any fulfillment delays, introduction of competing products, negative publicity, or other factor; ransomware attack or data breach, product design defects or recalls, litigation, enforcement proceedings or other regulatory or legal developments; changes in consumer or political sentiment affecting product demand or the law regulating the Company’s products or ability to engage in commerce, or other regulatory factors including the impact of commerce and trade laws and regulations, import-export related matters or sanctions or embargos that could affect the Company’s supply chain or markets; delays in planned operations related to licensing, registration or permit requirements; future restrictions on the Company’s cash resources, increased costs and other events that could potentially reduce demand for the Company’s products or result in order cancellations. The order in which these factors appear should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive; accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. Investors should carefully consider these and other relevant factors, including those risk factors in Part I, Item 1A, (“Risk Factors”) in our most recent Form 10-K and the updated risk factors delineated in Part 1, Item 1A of our Form 10-Q for the quarter ended May 31, 2022, should understand it is impossible to predict or identify all such factors or risks, should not consider the foregoing list, or the risks identified in our SEC filings, to be a complete discussion of all potential risks or uncertainties, and should not place undue reliance on forward-looking information. The Company assumes no obligation to update or revise any forward-looking information, except as required by applicable law.
BYRNA TECHNOLOGIES INC. Condensed Consolidated Statements of Operations and Comprehensive Loss (Amounts in thousands except share and per share data) (Unaudited)
For the Three Months Ended November 30,
For the Years Ended November 30,
2022
2021
2022
2021
Net revenue
16,018
11,163
48,036
42,160
Cost of goods sold
(7,355)
(5,463)
(21,758)
(19,270)
Gross profit
8,663
5,700
26,278
22,890
Operating expenses
8,688
8,798
33,733
26,181
LOSS FROM OPERATIONS
(25)
(3,098)
(7,455)
(3,291)
OTHER INCOME (EXPENSE)
Foreign currency transaction loss
(23)
(288)
(87)
(210)
Interest income (expense), net
190
(10)
201
(34)
Forgiveness of Paycheck Protection Program loan
—
—
—
190
Other expenses
(123)
(81)
(310)
(98)
INCOME/(LOSS) BEFORE INCOME TAXES
19
(3,477)
(7,651)
(3,443)
Income tax (provision) benefit
(153)
269
(234)
160
NET LOSS
(134)
(3,208)
(7,885)
(3,283)
Dividends on preferred stock
—
—
—
(1,043)
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS
(134)
(3,208)
(7,885)
(4,326)
Foreign exchange translation adjustment
20
(167)
(604)
(44)
COMPREHENSIVE LOSS
(114)
(3,375)
(8,489)
(3,327)
Net loss per share – basic and diluted
(0.01)
(0.14)
(0.35)
(0.22)
Weighted-average number of common shares outstanding during the year – basic and diluted
21,339,369
23,647,400
22,364,201
19,610,039
BYRNA TECHNOLOGIES INC. Condensed Consolidated Balance Sheets (Amounts in thousands except share and per share data) (Unaudited)
November 30,
2022
2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 20,068
$ 56,308
Restricted cash
—
92
Accounts receivable, net
5,915
1,658
Inventory, net
15,462
6,613
Prepaid expenses and other current assets
1,200
1,490
Total current assets
42,645
66,161
Intangible assets, net
3,872
3,668
Deposits for equipment
2,269
1,293
Right-of-use-asset, net
2,424
1,086
Property and equipment, net
3,309
1,972
Goodwill
2,258
816
Other assets
272
318
TOTAL ASSETS
$ 57,049
$ 75,314
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities
$ 7,708
$ 6,996
Operating lease liabilities, current
757
463
Deferred revenue
458
720
Total current liabilities
8,923
8,179
LONG TERM LIABILITIES
Deferred revenue, non-current
340
405
Operating lease liabilities, non-current
1,792
632
Total Liabilities
11,055
9,216
COMMITMENTS AND CONTINGENCIES (NOTE 19)
STOCKHOLDERS‘ EQUITY
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued
—
—
Common stock, $0.001 par value, 50,000,000 shares authorized. 24,018,612 shares issued and 21,852,625 outstanding as of November 30, 2022 and, 23,754,096 shares issued and outstanding as of November 30, 2021
23
23
Additional paid-in capital
125,474
119,589
Treasury stock (2,165,987 and 0 shares purchased)
(17,500)
—
Accumulated deficit
(61,383)
(53,498)
Accumulated other comprehensive (loss) income
(620)
(16)
Total Stockholders’ Equity
45,994
66,098
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$ 57,049
$ 75,314
Non-GAAP Financial Metrics
In addition to providing financial measurements based on generally accepted accounting principles in the United States (GAAP), we provide the following additional financial metrics that are not prepared in accordance with GAAP (non-GAAP): adjusted EBITDA, non-GAAP net loss, and non-GAAP net loss per share. Management uses these non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate our financial performance. We believe that these non-GAAP financial measures help us to identify underlying trends in our business that could otherwise be masked by the effect of certain expenses that we exclude in the calculations of the non-GAAP financial measures.
Accordingly, we believe that these non-GAAP financial measures reflect our ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business and provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects.
These non-GAAP financial measures do not replace the presentation of our GAAP financial results and should only be used as a supplement to, not as a substitute for, our financial results presented in accordance with GAAP. There are limitations in the use of non-GAAP measures because they do not include all the expenses that must be included under GAAP and because they involve the exercise of judgment concerning exclusions of items from the comparable non-GAAP financial measure. In addition, other companies may use other non-GAAP measures to evaluate their performance, or may calculate non-GAAP measures differently, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.
Non-GAAP adjusted EBITDA
Adjusted EBITDA is defined as net loss as reported in our consolidated statements of operations and comprehensive loss excluding the impact of (i) depreciation and amortization; (ii) income tax provision (benefit); (iii) interest (income) expense; (iv) stock-based compensation expense; (v) severance/separation expense; (vi) other income (forgiveness of PPP loan); and (vii) other financing expenses. Our Adjusted EBITDA measure eliminates potential differences in performance caused by variations in capital structures (affecting finance costs), tax positions, the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense). We also exclude certain one-time and non-cash costs. Reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, is as follows (in thousands):
For the Three Months Ended
November 30,
2022
2021
Net loss
(134)
(3,375)
Adjustments:
Interest (income) expense
(190)
10
Income tax provision (benefit)
153
(269)
Depreciation and amortization
241
134
NON-GAAP EBITDA
70
(3,500)
Stock-based compensation
1,363
632
Severance/separation expense
—
1,300
Other financing costs
—
(4)
NON-GAAP adjusted EBITDA
1,433
(1,572)
For the Year Ended
November 30,
2022
2021
Net loss
(7,885)
(3,283)
Adjustments:
Interest (income) expense
(201)
34
Income tax provision (benefit)
234
(160)
Depreciation and amortization
855
487
NON-GAAP EBITDA
(6,997)
(2,922)
Stock-based compensation
5,424
3,150
Severance/separation expense
556
1,300
Other income: forgiveness of PPP loan
—
(190)
NON-GAAP adjusted EBITDA
(1,017)
1,338
Non-GAAP adjusted net lossand non-GAAP adjusted net (loss) incomeper share
Non-GAAP adjusted net (loss) income is defined as net loss as reported in our consolidated statements of operations and comprehensive loss excluding the impact of (i) stock-based compensation expense; (ii) severance/separation expense (iii) other income (forgiveness of PPP loan); and (iv) other financing expenses. Our non-GAAP adjusted net (loss) income measure eliminates potential differences in performance caused by certain non-cash and one-time costs. We also provide non-GAAP adjusted net (loss) income per share by dividing non-GAAP adjusted net (loss) income by the average basic or diluted shares outstanding for the period. Reconciliation of Non-GAAP adjusted (loss) net income to net loss, the most directly comparable GAAP measure, is as follows (in thousands):
For the Three Months Ended
November 30,
2022
2021
Net loss
(134)
(3,375)
Adjustments:
Stock-based compensation
1,363
632
Severance/separation expense
—
1,300
Other financing costs
—
(4)
NON-GAAP ADJUSTED NET (LOSS) INCOME
1,229
(1,447)
Non-GAAP adjusted net loss per share — basic and diluted
0.06
(0.06)
Weighted-average number of common shares outstanding during the year – basic and diluted
21,339,369
23,647,400
For the Year Ended
November 30,
2022
2021
Net loss
(7,885)
(3,283)
Adjustments:
Stock-based compensation
5,424
3,150
Severance/separation expense
556
1,300
Other income: forgiveness of PPP loan
—
(190)
NON-GAAP ADJUSTED NET (LOSS) INCOME
(1,905)
977
Preferred stock dividends
—
(1,043)
Non-GAAP adjusted net loss available to common shareholders
(1,905)
(66)
Non-GAAP adjusted net loss per share — basic and diluted
(0.09)
(0.00)
Weighted-average number of common shares outstanding during the year – basic and diluted
22,364,201
19,610,039
1 This is a Non-GAAP measure. Refer to the Non-GAAP reconciliation section at the end of this press release.