Byrna Technologies Inc. (NASDAQ:BYRN) Q3 2022 Earnings Conference Call October 5, 2022 9:00 AM ET

Company Participants

Bryan Ganz - Chief Executive Officer, President and Director

David North - Chief Financial Officer

Conference Call Participants

Jeff Van Sinderen - B. Riley Securities

Jim McIlree - Dawson James

Operator

Greetings, and welcome to the Byrna Technologies Fiscal Third 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 results, please see the press release in the Investor Relations 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 very much. Good morning, everyone, and thank you for joining us for Byrna’s fiscal year 2022 third quarter earnings call. As usual, David North will be discussing our financial results, after which time I will provide some additional color on the quarter and discuss recent events.

I'd like to start by turning the call over to David, so he can discuss our third quarter financial performance. David and I will be taking questions at the conclusion of the presentation. David?

David North

Thanks, Bryan. And thanks, everyone, for joining us today. Let's start with a walk down to third quarter's income statement. Third quarter revenues came in at $12.4 million, an increase of 43% over revenues of $8.7 million in the third quarter of 2021. Revenues were also up $0.8 million from the second quarter of this year making this the third consecutive quarter of revenue growth in 2022.

We ended the quarter with $1.7 million of unshipped orders, all of which we expect to ship this quarter. Byrna’s gross profit margin was 55.4% after $0.2 million of charges for inventory reserves and another $0.2 million of unfavorable manufacturing variances. Our move of our manufacturing operations into our larger new Greenfield facility in Ft. Wayne, Indiana went well and we're back up running smoothly and experiencing higher levels of both efficiency and quality in this larger more efficient facility. Nevertheless, some minor startup inefficiencies are inevitable in such a move and the unfavorable manufacturing variance were a result of those.