Byrna Technologies Inc. (NASDAQ:BYRN) Q4 2022 Earnings Conference Call February 9, 2023 9:00 AM ET

Company Participants

Bryan Ganz - CEO

David North - CFO

Conference Call Participants

Jeff Van Sinderen - B. Riley

Ryan Rackley - Raymond James

Operator

Greetings, and welcome to the Byrna Technologies Fourth Quarter 2022 Earnings Conference Call and Webcast. As a reminder, this conference call is being recorded and all participants are in a listen-only mode. Before turning the call over to Bryan Ganz, Byrna Technologies' Chief Executive Officer, I will read the Safe Harbor statement.

Some discussions made today may include forward-looking statements. Actual results could differ materially from the statements made today. Please refer to Byrna's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligation to update forward-looking statements as a result of new information, future events or otherwise.

As this call will include references to non-GAAP, please see the press release in the Investors Section of our website ir.bynra.com. For further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results.

I'll now turn the call over to Mr. Bryan Ganz. Sir, please go ahead.

Bryan Ganz

Thank you. Good morning, everyone, and thank you for joining us for Byrna's fiscal 2022 fourth quarter earnings call. David North, our CFO and I will be discussing our Q4 and full year 2022 results. And I will provide some additional color on both the quarter and the year and discuss recent developments. We'd like to start by turning the call over to David so that he can discuss the Q4 and full year full year results and financial performance. David and I will be taking questions at the conclusion of the presentation.

David?

David North

Thanks, Bryan, and thanks all of joining us today.

Let's start with a review of the financial results for the fiscal fourth quarter. Revenues for the fourth quarter of 2022 were $16.0 million that's a 43.5% increase over the $11.0 for last year's fourth quarter. Gross profit increased by 52.0% to $8.7 from $5.7 in last year's fourth quarter while gross margin improved to 54.1% of net revenue from 51.1% in last year's fourth quarter.

The improvement in gross margin was driven by a reduced dependence on air freight and an improved product mix with higher margin ammo sales representing a greater percentage of overall sales. Operating expenses remained relatively flat at $8.7 million in the fourth quarter of 2022 compared to $8.8 million in the fourth quarter of last year.