Byrna Technologies Inc. (NASDAQ:BYRN) Q1 2022 Earnings Conference Call April 6, 2022 9:00 AM ET

Company Participants

Bryan Ganz - President, Chief Executive Officer

David North - Chief Financial Officer

Conference Call Participants

Jeff Van Sinderen - B. Riley

Jon Hickman - Ladenburg

Ryan Rackley - Raymond James

Operator

Greetings and welcome to the Byrna Technologies’ fiscal year end 2021 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’ll 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. I just want to make one clarification. This is the first quarter fiscal year 2022 earnings call.

David North will be discussing our Q1 fiscal year 2022 results, after which I will provide some additional color on the quarter and recent developments. I’d like to start by turning the call over to David so that he can discuss our first 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. Now I’ll review the financial results for the fiscal first quarter ended February 28, 2022.

Revenues were $8.0 million this quarter, a decrease of $0.9 million compared to $8.9 million in last year’s first quarter. Orders received during the quarter increased substantially, however, up 45.6% to $8.9 million this quarter from $6.1 million in the first quarter of 2021, when sales included the fulfillment of $2.8 million of backorders received in prior quarters.

Sales for the quarter were lower than expected due to a large $2.2 million order backlog that didn’t ship by month end. In addition to $1.6 million of international orders that were held pending export permits, part of the backlog was comprised of the initial Sportsman’s Warehouse order which shipped in March. Lower sales volume caused only a slight decrease in gross profit, which declined to $4.6 million compared to $4.7 million in the first quarter of last year. This was because gross profit margin has improved to 57.8% of revenue compared to 53.3% last year.