INITIATES REVENUE GUIDANCE FOR FISCAL YEAR 2022 OF
$60 TO $65 MILLION
ANNOUNCES $30 MILLION SHARE
REPURCHASE PROGRAM
ANDOVER, Mass., Dec 6, 2021 /PRNewswire/ -- Byrna
Technologies Inc. (NASDAQ: BYRN) ("Byrna" or "the Company")
today announced preliminary revenue expectations for its fiscal
fourth quarter ended November 30,
2021 ("Q4 2021") of $11.2
million, bringing sales for fiscal year 2021 ("FY 2021") to
$42.2 million – slightly above the
top end of Byrna's most recent guidance of $40.0 to $42.0
million and up approximately 150% from fiscal year 2020 ("FY
2020") sales of $16.6 million.
The majority of Byrna's sales continue to be generated through
Byrna's e-commerce efforts. For Q4 2021, the sales breakdown was as
follows:
- Byrna.com - $7.86 million
(70.1%)
- Amazon.com - $0.83 million
(7.4%)
- Dealer / Distributor - $1.47
million (13.1%)
- International - $0.94 million
(8.4%)
- Law Enforcement - $0.1 million
(1.0%)
The Company expects to see continued strong growth in fiscal
year 2022. As a result, Byrna is initiating full year revenue
guidance of $60 to $65 million for the current fiscal year ending
November 30, 2022 ("FY 2022"). Byrna
believes that revenues for the first quarter of FY 2022 ("Q1 2022")
ending February 28, 2022 will range
between $11.0 to $11.5 million. The first quarter of each fiscal
year is traditionally a slower quarter for Byrna, coming on the
heels of the seasonally strong fourth quarter which benefits from
holiday buying. The Company expects revenues to increase in
each subsequent quarter with the introduction of new products and
the opening of new markets.
Share Repurchase Program
The Company also announced that its Board of Directors has
authorized the repurchase of up to $30
million of the Company's common stock over the next two
years. This authorization reflects the Board's belief that the
shares of the Company are currently undervalued. "Based on
the strength of our balance sheet, coupled with our recent
performance and long-term outlook, we believe an opportunity exists
to create value for our shareholders while continuing to fund
operations and invest in our key growth-driving strategies,"
explained Mr. Ganz. "The repurchases will partially offset the
increase in shares outstanding resulting from the conversion of the
Company's Series A Preferred Stock (March
2021) and warrant exercises by investors in the Company's
historic PIPE offerings which took place from 2016 -2019."
David North, CFO of Byrna added,
"The decision to launch a stock repurchase program at this time
reflects our strong financial position, as well as the successful
start of the execution of our marketing strategy," said
David North, CFO of Byrna.
The Company's repurchases will be consistent with the
requirements of section 4003 of the Coronavirus Aid Relief and
Economic Security Act and relevant SEC rules. The timing and amount
of common stock repurchases made pursuant to the Company's common
stock repurchase program will be subject to various factors,
including the Company's capital position, liquidity, financial
performance, alternative uses of capital, stock price, regulatory
requirements and general market conditions, and may be suspended at
any time. The Company intends to cancel most or all the repurchased
shares, which would reduce the total number of shares and the share
capital accordingly.
The common stock repurchases may be effected through open market
purchases, privately negotiated transactions or by other means,
including through plans that satisfy the conditions of Rule 10b5-1
of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), through purchases in compliance with rule 10b-18 of the Exchange Act, or through the use of
other techniques.
Management Commentary
Mr. Ganz stated, "We are very pleased to have ended FY
2021 on such a high note and to be able to provide robust revenue
guidance for fiscal year 2022. Given our performance to date and
confidence in Byrna's growth prospects, we believe this share
repurchase program represents an attractive investment opportunity
that aligns with our commitment to creating long-term shareholder
value."
With respect to the Company's revenue outlook, Mr. Ganz
continued, "Excluding those quarters in which sales and orders were
positively impacted by Sean
Hannity's mention of Byrna (Q3 2020 and Q2 2021), Q4 2021
was a record quarter for both orders and sales. Sales for the
quarter would have been even stronger but for the negative impacts
of the worldwide supply chain strain, which prevented us from
shipping significant orders during the quarter. Consequently, we
enter FY 2022 with a $1.5 million
backlog which we expect to fill in Q1 2022.
"Revenue expectations for FY 2022 are based, in large part, on
the success of the marketing campaign initiated after our capital
raise in July 2021, coupled with
anticipated, continued growth in Amazon sales. Dealer sales
are also expected to grow as a percentage of overall sales as we no
longer have the capacity constraints that limited dealer sales in
FY 2021. Additionally, Byrna expects to enter the Canadian market
in the first quarter of fiscal year 2022, a virgin territory for
Byrna. Finally, we expect to see significant growth in the
law enforcement market as we begin to reap the benefits of our
strong sales push in this segment over the last twelve months (as
evidenced by the recently announced $200,000 order from the Spokane Sherriff's
Department).
"Perhaps most importantly, new product introductions, including
the Byrna LE (MSRP $499), the Byrna
TCR (MSRP $699), the Byrna TCR-LE
(MSRP $799) and Byrna's 12-gauge
compatible ammunition should add significantly to sales in FY 2022
- with much of the increase being weighted to the second half of
the year."
The above information reflects preliminary estimates with
respect to Byrna's Q4 2021 and FY 2021 revenues and FY 2022
outlook, based on currently available information. The preliminary
financial results and other information provided above are subject
to the completion of Byrna's audit processes, final adjustments (if
any), and any other developments that may arise by the time that
the financial results for Q4 2021, FY 2021 and FY 2022 are
finalized. Forward looking estimates may also be negatively
impacted if supply chain issues worsen. As a result, the
preliminary financial results and forward-looking estimates as well
as other information provided herein may materially differ from the
final, actual results. Byrna intends to release final information
regarding its Q4 2021 financial results on or before February 15, 2022.
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® HD 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 U.S. securities laws. All statements contained in
this news release, other than statements of current and historical
fact, are forward-looking. Such statements include the Company's
plan to repurchase up to $30 million
of its common stock over the next two years, the expected execution
of the repurchase plan, and the Company's intent to cancel most of
the repurchased shares, our anticipated results for the fourth
quarter of fiscal 2021 and full year fiscal 2022, and their
associated drivers. Often, but not always, forward-looking
statements can be identified by the use of words such as
"estimates," "plans," "expects," "projects," "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 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 factors
that may impact the intended stock repurchase plan including
changes in the Company's capital position, liquidity, financial
performance, alternative uses of capital, stock trading
price, regulatory requirements and general market conditions, our
successful transition to managing production and sales of multiple
products, our successful execution of plans to enter
into new and potentially higher volume distribution channels,
market response to our existing and new products, our competitors'
introduction of new products or execution of competing marketing
strategies, the timing and success of our introduction of new
products, supply chain or manufacturing interruptions due to the
pandemic, including developments that may result from the recently
discovered Omnicron variant or future variants, related
reductions and future reductions of cargo space on flights from
South Africa or elsewhere into the
U.S., continuation or escalation of ongoing global supply chain
related constraints, or otherwise that could negatively impact our
production and sales processes, each of which could negatively
impact projected revenues. 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 in our most recent
Form 10-K, Item 1A Risk Factors in our most recent Form 10-Q, and
subsequent filings with the Securities and Exchange Commission
("SEC"), 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.
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SOURCE Byrna Technologies Inc.