Vista Outdoor Reports Strong Fourth Quarter Financial Results and Fiscal Year 2024 Financial Results
-
Revelyst Q4 Sales Up 1.4% Over Prior Year to
$332 Million , Returning to Organic Growth For First Time In Nine Quarters; The Kinetic Group Q4 Sales of$362 Million for Total Q4 Sales of$694 Million
-
Revelyst Q4 Operating Income Margin Increased 622 Basis Points Year Over Year and Sequentially, Increased
454 Basis Points , While Doubling Adjusted EBITDA Dollars; The Kinetic Group Q4 Operating Income Margin Decreased 422 Basis Points Year Over Year; The Kinetic Group Q4 Adjusted EBITDA of$100 Million
-
Strong Q4 Cash Provided by Operating Activities of
$161 Million And Adjusted Free Cash Flow of$161 Million , Driven Largely by Sequential Inventory Reduction of$45 Million , a 6.8% Decrease; Total Debt Decreased$115 Million Sequentially to$720 Million With a Net Debt Leverage Ratio of 1.5x
-
Positive Fiscal Year 2025 Outlook: Expect FY25 Sales of
$2.665 Billion to$2.775 Billion , Expect Adjusted EBITDA in the Range of$410 Million to$490 Million , Despite Uncertain Macroeconomic Backdrop; Remain Confident In Revelyst's Path to Double Standalone Adjusted EBITDA In FY251
-
Revelyst Continues to Build Momentum With GEAR Up Transformation Program; Expect to Drive
$100 Million of Run-Rate Cost Savings in FY27; Additional Progress Being Made on Portfolio Optimization Through Sale of RCBS to Hodgdon Powder
-
We Have Made Meaningful Progress on Strategic Options: Stockholder Vote for Sale of The Kinetic Group for
$1.91 Billion Scheduled forJune 14, 2024 ; Company in Alternate Discussions with MNC on Proposal to Acquire the Company for$37.50 per Share, has Advised MNC to Increased itsOffer Price
“I am proud of the work our teams at
___________________________________ |
1
|
“We continue to be confident in our ability to receive CFIUS clearance with respect to the CSG transaction, and the Board continues to recommend Vista stockholders vote in favor of the proposal to adopt the merger agreement with CSG,” concluded Nyman.
“The Kinetic Group finished the year strong, achieving our financial guidance and delivering quality EBITDA margins in the high-twenties,” said
Note that in the results below when referring to "Revelyst", it comprises three new operating and reportable segments:
Consolidated results for the three months ended
-
Sales decreased
$47 million to$694 million , down 6.4 percent driven by The Kinetic Group, partially offset by an increase in the Revelyst business. -
Gross profit decreased 6.5 percent to
$221 million and gross profit margin was relatively flat at 31.8 percent. -
Operating expenses were
$158 million . The lower operating expense is primarily due to lower impairment, restructuring, and selling, general, and administrative expenses related to Revelyst, partially offset by increased contingent consideration and GEAR Up restructuring costs. -
Operating income increased to
$63 million . Operating income margin was 9.0%. Adjusted operating income was$85 million , down 9.0 percent. Adjusted operating income margin was relatively flat at 12.2 percent. -
Net income increased to
$40 million . Net income margin increased to 5.8 percent. -
Adjusted EBITDA decreased 7.5 percent to
$109 million . Adjusted EBITDA margin decreased 20 basis points to 15.7 percent. -
Diluted Earnings per Share (EPS) was
$0.69 compared with$(5.18) in the prior year period. Adjusted EPS decreased to$1.02 , or down 2.9 percent compared with$1.05 in the prior fiscal year period.
For the three months ended
Revelyst
-
Sales increased 1.4 percent to
$332 million driven by increased volume as a result of new product introductions in Revelyst Precision Sports Technology, partially offset by lower volume in Revelyst Outdoor Performance. -
Gross profit increased to
$100 million , up 17.3 percent, driven primarily by increased efficiencies, volume, and price, partially offset by increased discounting. -
Operating income (loss) increased 242.7 percent to
$12 million driven by increased gross profit and lower selling, general, and administrative costs. Operating income (loss) margin increased 622 basis points to 3.6 percent. -
Adjusted EBITDA increased 209.5 percent to
$29 million . Adjusted EBITDA margin increased 590 basis points to 8.8 percent.
The Kinetic Group
-
Sales decreased to
$362 million , down 12.5 percent, due to lower volume across nearly all categories and lower pricing. -
Gross profit decreased to
$121 million , down 20.7 percent driven by decreased volume and price, unfavorable mix, and increased input costs due to inflation. -
Operating income (loss) decreased 24.8 percent to
$94 million due to lower gross profit, partially offset by lower selling, general, and administrative costs. Operating income (loss) margin decreased 422 basis points to 25.9 percent. -
Adjusted EBITDA decreased 23.3 percent to
$100 million . Adjusted EBITDA margin decreased 392 basis points to 27.7 percent.
Consolidated results for the twelve months ended
-
Sales decreased 10.8 percent to
$2.7 billion and organic sales were$2.6 billion , down 14.5 percent, driven primarily by lower volume at The Kinetic Group and Revelyst. -
Gross profit decreased 16.7 percent to
$859 million due to lower volume and price at The Kinetic Group and lower organic volume at Revelyst. These decreases were partially offset by lower discounting at The Kinetic Group and increased volume from inorganic business and efficiencies at Revelyst. - Operating expenses decreased 12.4 percent driven primarily by lower impairment, selling, general, and administrative expenses related to organic business, restructuring, and transaction costs, partially offset by increased selling, general, and administrative expenses related to inorganic business, contingent consideration, planned separation, and GEAR Up restructuring costs.
-
Operating income (loss) declined 53.2 percent to
$50 million and operating income (loss) margin decreased 166 basis points to 1.8 percent. Adjusted operating income (loss) was$343 million , down 34.1 percent. Adjusted operating income (loss) margin decreased 441 basis points to 12.5 percent. -
Net income (loss) improved to
$(6) million . Net income (loss) margin increased to (0.2) percent -
Adjusted EBITDA declined 27.8 percent to
$442 million . Adjusted EBITDA margin decreased 378 basis points to 16.1 percent. -
Diluted EPS was
$(0.10) , up 41.2 percent, compared with$(0.17) in the prior fiscal year. Adjusted EPS declined to$3.86 , or down 38.3 percent, compared with$6.26 in the prior fiscal year. -
Cash provided by operating activities was
$401 million , compared to$486 million in the prior fiscal year. Adjusted free cash flow was$432 million .
For the twelve months ended
Revelyst
-
Sales declined 2.2 percent to
$1.3 billion and organic sales were$1.2 billion , down 10.7 percent, driven by lower volume, increased discounting, and unfavorable mix inRevelyst Adventure Sports and Revelyst Outdoor Performance. -
Gross profit decreased 3.5 percent to
$373 million due largely to lower organic volume, increased discounting, and unfavorable mix, partially offset by volume from inorganic business and increased efficiencies. -
Operating income (loss) declined 54.2 percent to
$29 million primarily caused by increased selling, general and administrative costs related to prior year acquisitions and lower gross profit, partially offset by lower selling, general, and administrative costs related to organic business. Operating income (loss) margin decreased 251 basis points to 2.2 percent. -
Adjusted EBITDA decreased 21.5 percent to
$98 million . Adjusted EBITDA margin decreased 188 basis points to 7.6 percent.
The Kinetic Group
-
Sales decreased 17.4 percent to
$1.5 billion , driven by lower volume across nearly all categories as channel inventory has normalized, the termination of theLake City contract at the beginning of the third fiscal quarter in the prior fiscal year, and lower pricing. These decreases were partially offset by increased shipments and lower discounting. -
Gross profit declined 25.7 percent to
$486 million driven primarily by decreased volume and price, unfavorable mix, and increased input costs due to inflation. These decreases were partially offset by lower discounting. -
Operating income (loss) decreased 29.4 percent to
$390 million , due to lower gross profit, partially offset by decreased selling costs. Operating income (loss) margin decreased 457 basis points to 26.8 percent. -
Adjusted EBITDA decreased 28.0 percent to
$416 million . Adjusted EBITDA margin decreased 422 basis points to 28.6 percent.
Fiscal Year 2025 Outlook
"Fiscal Year 2024 was a transformative year for our company with the signing of a definitive agreement with CSG to sell the Kinetic Group for
"We remained disciplined during the year and prioritized the health of our balance sheet, driving a
"Our Fiscal Year 2025 guidance reflects headwinds that include a global powder shortage, increasing input costs, including for copper and powder, and competitive market pricing at The Kinetic Group pressuring the bottom line during the year. At Revelyst, our guidance takes into consideration our expectation that consumers do not meaningfully change their purchasing patterns due to ongoing economic uncertainties and challenges. Sales guidance also excludes a combined approximately
Vista Outdoor Establishes Fiscal Year 2025 Financial Guidance
The Company expects:
-
Sales in the range of
$2.665 billion to$2.775 billion
– The Kinetic Group Sales expected to be approximately$1.425 billion to$1.475 billion
– Revelyst Sales expected to be approximately$1.240 billion to$1.300 billion -
Adjusted EBITDA in the range of
$410 million to$490 million
– The Kinetic Group adjusted EBITDA expected to be approximately$350 million to$400 million
– Revelyst adjusted EBITDA expected to be approximately$130 million to$160 million -
Earnings Per Share (EPS) in the range of
$3.60 to$4.50 -
Cash provided by operating activities in the range of
$280 million to$362 million ; adjusted Free Cash Flow in the range of$240 million to$320 million - Effective tax rate of approximately 25.0 percent
-
Interest expense in the range of
$30 million to$40 million - Capital expenditures as a percent of sales of approximately 1.5 percent
Earnings Conference Call Webcast Information
Non-GAAP Financial Measures
Non-GAAP financial measures such as adjusted EBITDA, adjusted EBITDA margin, adjusted operating income, adjusted operating income margin, adjusted EPS, adjusted free cash flow, net debt and net debt leverage ratio as included in this press release are supplemental measures that are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”). These non-GAAP measures should be considered in addition to, and not as substitutes for, GAAP measures. Please see the tables below for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.
Beginning with the second quarter of fiscal year 2024, we modified our presentation of non-GAAP results and no longer exclude from adjusted results expenses related to retention payments in connection with our acquisitions. These specified expenses that were previously excluded from adjusted results under the line items of transition costs, planned separation costs, and post-acquisition compensation are included in “operating expenses” in our as reported results. The Company made these changes to its presentation of non-GAAP financial measures following comments from, and discussions with, staff members of the
Reconciliation of previously reported adjusted EPS |
||||||||
(Unaudited, dollars in thousands, except per share data) |
|
Three months ended
|
|
Twelve months ended
|
||||
Transition costs previously specified |
|
$ |
235 |
|
|
$ |
742 |
|
Planned separation costs previously specified |
|
|
— |
|
|
|
444 |
|
Post-acquisition compensation previously specified |
|
|
1,497 |
|
|
|
7,880 |
|
Income tax impact |
|
|
(122 |
) |
|
|
(1,023 |
) |
Decrease in as adjusted net income |
|
$ |
1,610 |
|
|
$ |
8,043 |
|
|
|
|
|
|
||||
Decrease in adjusted EPS |
|
$ |
0.03 |
|
|
$ |
0.14 |
|
Adjusted EPS previously reported |
|
|
1.08 |
|
|
|
6.40 |
|
Revised adjusted EPS |
|
$ |
1.05 |
|
|
$ |
6.26 |
|
Reconciliation of Non-GAAP and Supplemental Financial Measures
In addition to the results prepared in accordance with GAAP, we are providing the information below on a non-GAAP basis, including, adjusted gross profit, adjusted operating expenses, adjusted operating income (loss), adjusted other operating income margin, adjusted interest expense, adjusted taxes, adjusted tax rate, adjusted net income, and adjusted diluted earnings (loss) per share (EPS).
Three months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(in thousands except per share amounts and percentages) |
|
Gross
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Other
|
|
Interest
|
|
Taxes |
|
Tax rate |
|
Net income |
|
EPS (1) |
||||||||||||||||||
As reported |
|
$ |
220,507 |
|
$ |
157,976 |
|
|
$ |
62,531 |
|
|
9.0 |
% |
|
$ |
(359 |
) |
|
$ |
(14,861 |
) |
|
$ |
(7,143 |
) |
|
15.1 |
% |
|
$ |
40,168 |
|
|
$ |
0.69 |
|
|
Post acquisition compensation |
|
|
— |
|
|
(848 |
) |
|
|
848 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
848 |
|
|
|
|||||
Transaction costs |
|
|
— |
|
|
(756 |
) |
|
|
756 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(182 |
) |
|
|
|
|
574 |
|
|
|
|||||
Contingent consideration |
|
|
— |
|
|
(2,742 |
) |
|
|
2,742 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
2,742 |
|
|
|
|||||
Impairment |
|
|
— |
|
|
(1,258 |
) |
|
|
1,258 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(302 |
) |
|
|
|
|
956 |
|
|
|
|||||
Debt extinguishment |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
2,423 |
|
|
|
(582 |
) |
|
|
|
|
1,841 |
|
|
|
|||||
Restructuring |
|
|
— |
|
|
(450 |
) |
|
|
450 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(108 |
) |
|
|
|
|
342 |
|
|
|
|||||
Gear Up restructuring |
|
|
— |
|
|
(7,478 |
) |
|
|
7,478 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,795 |
) |
|
|
|
|
5,683 |
|
|
|
|||||
Transition costs |
|
|
— |
|
|
(542 |
) |
|
|
542 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(130 |
) |
|
|
|
|
412 |
|
|
|
|||||
Planned separation costs |
|
|
— |
|
|
(8,131 |
) |
|
|
8,131 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,951 |
) |
|
|
|
|
6,180 |
|
|
|
|||||
As adjusted |
|
$ |
220,507 |
|
$ |
135,771 |
|
|
$ |
84,736 |
|
|
12.2 |
% |
|
$ |
(359 |
) |
|
$ |
(12,438 |
) |
|
$ |
(12,193 |
) |
|
16.9 |
% |
|
$ |
59,746 |
|
|
$ |
1.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(1) As reported net earnings per share and adjusted net earnings per share are both calculated based on 58,517 diluted weighted average shares of common stock. |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Three months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(in thousands except per share amounts and percentages) |
|
Gross
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Other
|
|
Interest
|
|
Taxes |
|
Tax rate |
|
Net income
|
|
EPS (1) |
||||||||||||||||||
As reported |
|
$ |
235,747 |
|
$ |
528,170 |
|
|
$ |
(292,423 |
) |
|
(39.5 |
)% |
|
$ |
744 |
|
|
$ |
(20,120 |
) |
|
$ |
17,464 |
|
|
5.6 |
% |
|
$ |
(294,335 |
) |
|
$ |
(5.18 |
) |
|
Post acquisition compensation |
|
|
— |
|
|
5,765 |
|
|
|
(5,765 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
1,346 |
|
|
|
|
|
(4,419 |
) |
|
|
|||||
Transaction costs |
|
|
— |
|
|
(60 |
) |
|
|
60 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(16 |
) |
|
|
|
|
44 |
|
|
|
|||||
Contingent consideration |
|
|
— |
|
|
11,105 |
|
|
|
(11,105 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
981 |
|
|
|
|
|
(10,124 |
) |
|
|
|||||
Inventory step-up |
|
|
1,449 |
|
|
— |
|
|
|
1,449 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(362 |
) |
|
|
|
|
1,087 |
|
|
|
|||||
Executive transition costs |
|
|
— |
|
|
(5,631 |
) |
|
|
5,631 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(706 |
) |
|
|
|
|
4,925 |
|
|
|
|||||
Impairment |
|
|
— |
|
|
(374,355 |
) |
|
|
374,355 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(25,896 |
) |
|
|
|
|
348,459 |
|
|
|
|||||
Restructuring |
|
|
— |
|
|
(13,111 |
) |
|
|
13,111 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(3,278 |
) |
|
|
|
|
9,833 |
|
|
|
|||||
Transition costs |
|
|
— |
|
|
(3,318 |
) |
|
|
3,318 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(830 |
) |
|
|
|
|
2,488 |
|
|
|
|||||
Planned separation costs |
|
|
— |
|
|
(4,448 |
) |
|
|
4,448 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,112 |
) |
|
|
|
|
3,336 |
|
|
|
|||||
As adjusted |
|
$ |
237,196 |
|
$ |
144,117 |
|
|
$ |
93,079 |
|
$ |
12.6 |
% |
|
$ |
744 |
|
|
$ |
(20,120 |
) |
|
$ |
(12,409 |
) |
|
16.8 |
% |
|
$ |
61,294 |
|
|
$ |
1.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(1) Potential common stock equivalents were excluded from the computation of as reported net loss per share, as their effect was antidilutive. As reported net loss per share is calculated based on 56,776 basic and diluted weighted average shares of common stock. Adjusted net income per share is calculated based on 58,342 diluted shares of common stock. |
Year ended March
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(in thousands except per share amounts and percentages) |
|
Gross
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Other
|
|
Interest
|
|
Taxes |
|
Tax rate |
|
Net income
|
|
EPS (1) |
|||||||||||||||||
As reported |
|
$ |
858,985 |
|
$ |
808,532 |
|
|
$ |
50,453 |
|
|
1.8 |
% |
|
$ |
(1,988 |
) |
|
$ |
(62,949 |
) |
|
$ |
8,979 |
|
|
62.0 |
% |
|
$ |
(5,505 |
) |
|
$ |
(0.10 |
) |
Post acquisition compensation |
|
|
— |
|
|
(1,328 |
) |
|
|
1,328 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
1,328 |
|
|
|
||||
Transaction costs |
|
|
— |
|
|
(755 |
) |
|
|
755 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(181 |
) |
|
|
|
|
574 |
|
|
|
||||
Contingent consideration |
|
|
— |
|
|
(5,888 |
) |
|
|
5,888 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
5,888 |
|
|
|
||||
Executive transition costs |
|
|
— |
|
|
(1,342 |
) |
|
|
1,342 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(437 |
) |
|
|
|
|
905 |
|
|
|
||||
Impairment |
|
|
— |
|
|
(220,070 |
) |
|
|
220,070 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(47,620 |
) |
|
|
|
|
172,450 |
|
|
|
||||
Debt extinguishment |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
2,423 |
|
|
|
(582 |
) |
|
|
|
|
1,841 |
|
|
|
||||
Restructuring |
|
|
— |
|
|
(5,604 |
) |
|
|
5,604 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,345 |
) |
|
|
|
|
4,259 |
|
|
|
||||
Gear Up restructuring |
|
|
— |
|
|
(8,279 |
) |
|
|
8,279 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,987 |
) |
|
|
|
|
6,292 |
|
|
|
||||
Transition costs |
|
|
— |
|
|
(7,310 |
) |
|
|
7,310 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,754 |
) |
|
|
|
|
5,556 |
|
|
|
||||
Planned separation costs |
|
|
— |
|
|
(42,179 |
) |
|
|
42,179 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(10,123 |
) |
|
|
|
|
32,056 |
|
|
|
||||
As adjusted |
|
$ |
858,985 |
|
$ |
515,777 |
|
|
$ |
343,208 |
|
|
12.5 |
% |
|
$ |
(1,988 |
) |
|
$ |
(60,526 |
) |
|
$ |
(55,050 |
) |
|
19.6 |
% |
|
$ |
225,644 |
|
|
$ |
3.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(1) Potential common stock equivalents were excluded from the computation of as reported net loss per share, as their effect was antidilutive. As reported net loss per share is calculated based on 57,946 basic and diluted weighted average shares of common stock. As adjusted net income per share is calculated based on 58,445 diluted shares of common stock. |
|||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Year ended March
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(in thousands except per share amounts and percentages) |
|
Gross
|
|
Operating
|
|
Operating
|
|
Operating income margin |
|
Other
|
|
Interest
|
|
Taxes |
|
Tax rate |
|
Net income
|
|
EPS (1) |
|||||||||||||||||
As reported |
|
$ |
1,030,897 |
|
$ |
923,042 |
|
|
$ |
107,855 |
|
|
3.5 |
% |
|
$ |
2,124 |
|
|
$ |
(59,317 |
) |
|
$ |
(60,380 |
) |
|
119.2 |
% |
|
$ |
(9,718 |
) |
|
$ |
(0.17 |
) |
Post acquisition compensation |
|
|
— |
|
|
1,017 |
|
|
|
(1,017 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
375 |
|
|
|
|
|
(642 |
) |
|
|
||||
Transaction costs |
|
|
— |
|
|
(8,105 |
) |
|
|
8,105 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,497 |
) |
|
|
|
|
6,608 |
|
|
|
||||
Contingent consideration |
|
|
— |
|
|
27,508 |
|
|
|
(27,508 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
1,003 |
|
|
|
|
|
(26,505 |
) |
|
|
||||
Inventory step-up |
|
|
9,528 |
|
|
— |
|
|
|
9,528 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(2,382 |
) |
|
|
|
|
7,146 |
|
|
|
||||
Executive transition costs |
|
|
— |
|
|
(5,631 |
) |
|
|
5,631 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(706 |
) |
|
|
|
|
4,925 |
|
|
|
||||
Impairment |
|
|
— |
|
|
(374,355 |
) |
|
|
374,355 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(25,896 |
) |
|
|
|
|
348,459 |
|
|
|
||||
Debt issuance |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
785 |
|
|
|
(196 |
) |
|
|
|
|
589 |
|
|
|
||||
Restructuring |
|
|
— |
|
|
(13,111 |
) |
|
|
13,111 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(3,278 |
) |
|
|
|
|
9,833 |
|
|
|
||||
Transition costs |
|
|
— |
|
|
(4,315 |
) |
|
|
4,315 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,079 |
) |
|
|
|
|
3,236 |
|
|
|
||||
Planned separation costs |
|
|
— |
|
|
(26,237 |
) |
|
|
26,237 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(6,559 |
) |
|
|
|
|
19,678 |
|
|
|
||||
As adjusted |
|
$ |
1,040,425 |
|
$ |
519,813 |
|
|
$ |
520,612 |
|
|
16.9 |
% |
|
$ |
2,124 |
|
|
$ |
(58,532 |
) |
|
$ |
(100,595 |
) |
|
21.7 |
% |
|
$ |
363,609 |
|
|
$ |
6.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(1) Potential common stock equivalents were excluded from the computation of as reported net loss per share, as their effect was antidilutive. As reported net loss per share is calculated based on 56,600 basic and diluted weighted average shares of common stock. As adjusted net income per share is calculated based on 58,104 diluted shares of common stock. |
During the three months and fiscal year ended
-
post-acquisition compensation expense related to the
Stone Glacier acquisition; - transaction costs associated with possible and actual transactions, including advisor and legal fees and other costs;
- transition costs for prior acquisitions to integrate into the Company such as professional fees and travel costs;
- executive transition costs for executive search fees and related costs for the transition of our CEO and General Counsel executives;
-
costs associated with the planned separation of our
Revelyst and The Kinetic Group businesses into two separate companies, including restructuring, and advisory and legal fees; - impairment expense related to goodwill, indefinite-lived, amortizing intangibles, and long-lived assets;
-
restructuring costs related to an over
$50 million cost reduction and earnings improvement program, announced during our fourth fiscal quarter of 2023, which includes severance and asset impairments related to product line reassessments, office closures, and headcount reductions across our brands and corporate teams; - restructuring costs related to our GEAR Up transformation Program, including severance costs and asset impairments related to location closures;
- change in the estimated fair value of the contingent consideration payable related to our acquisitions; and
- costs incurred to write off unamortized debt issuance costs related to our term loan that was paid off during the fourth fiscal quarter.
During the three months ended
During the full year ended
During the three months and fiscal year ended
- inventory step-up costs associated with our acquisitions of Fox and Simms, expensed over their inventory cycles;
- transaction costs associated with possible and actual transactions, including advisor and legal fees and other costs;
- transition costs for prior acquisitions to integrate into the Company such as professional fees and travel costs;
- executive transition costs for severance, executive search fees and related costs for the transition of our CEO and General Counsel executives, who departed the Company during our fourth quarter;
-
costs associated with the planned separation of our
Revelyst and The Kinetic Group businesses into two separate companies, including restructuring, severance and advisory and legal fees; - impairment expense related to goodwill and indefinite-lived intangibles;
-
restructuring costs related to an over
$50 million cost reduction and earnings improvement program, announced during our fourth fiscal quarter of 2023, which includes severance and asset impairments related to product line reassessments, office closures, and headcount reductions across our brands and corporate teams; - change in the estimated fair value of the contingent consideration payable related to our acquisitions; and
- costs incurred to write off unamortized debt issuance costs related to our 2021 ABL Revolving Credit Facility refinance.
During the three months ended
During the full year ended
Free Cash Flow
Free cash flow is defined as cash provided by operating activities less capital expenditures.
Adjusted free cash flow is defined as free cash flow eliminating the cash impact of the following items that are adjusted in our presentation of adjusted net income: transaction costs, transition costs, planned separation costs, post-acquisition compensation, restructuring, GEAR Up restructuring, and executive transition costs.
(in thousands) |
|
Three months
|
|
Year ended
|
|
Year ended
|
|
Projected year ending
|
||||||
Cash provided by operating activities (as reported) |
|
$ |
160,618 |
|
|
$ |
400,887 |
|
|
$ |
486,185 |
|
|
|
Capital expenditures |
|
|
(11,116 |
) |
|
|
(30,534 |
) |
|
|
(38,810 |
) |
|
~(39,975 - 41,625) |
Free cash flow |
|
|
149,502 |
|
|
|
370,353 |
|
|
|
447,375 |
|
|
|
Post acquisition compensation |
|
|
1,603 |
|
|
|
1,853 |
|
|
|
2,984 |
|
|
— |
Transaction costs |
|
|
25 |
|
|
|
25 |
|
|
|
9,235 |
|
|
— |
Executive transition costs |
|
|
(418 |
) |
|
|
3,724 |
|
|
|
893 |
|
|
— |
Restructuring |
|
|
1,424 |
|
|
|
6,201 |
|
|
|
7,140 |
|
|
— |
Gear Up restructuring |
|
|
906 |
|
|
|
3,406 |
|
|
|
— |
|
|
— |
Transition costs |
|
|
328 |
|
|
|
11,027 |
|
|
|
1,949 |
|
|
— |
Planned separation costs |
|
|
7,751 |
|
|
|
34,977 |
|
|
|
22,504 |
|
|
— |
Adjusted free cash flow |
|
$ |
161,121 |
|
|
$ |
431,566 |
|
|
$ |
492,080 |
|
|
|
|
|
|
|
|
|
|
|
|
Organic Sales Reconciliation
Organic sales is a non-GAAP measure of sales growth excluding the material impacts of acquisitions from year-over-year comparisons. Sales are considered inorganic for the twelve months after acquisition. We believe this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis. This measure is used in assessing achievement of management goals for at-risk compensation.
|
|
Three months ended |
|
Years ended |
|||||||||
(in thousands) |
|
|
|
|
|
|
|
|
|||||
The Kinetic Group |
|
$ |
361,586 |
|
$ |
413,311 |
|
$ |
1,452,627 |
|
|
$ |
1,757,932 |
Revelyst |
|
|
332,083 |
|
|
327,431 |
|
|
1,293,436 |
|
|
|
1,321,875 |
Sales, net |
|
$ |
693,669 |
|
$ |
740,742 |
|
$ |
2,746,063 |
|
|
$ |
3,079,807 |
Less Revelyst acquisitions |
|
|
— |
|
|
— |
|
|
(113,431 |
) |
|
|
— |
The Kinetic Group organic sales, net |
|
$ |
361,586 |
|
$ |
413,311 |
|
$ |
1,452,627 |
|
|
$ |
1,757,932 |
Revelyst organic sales, net |
|
|
332,083 |
|
|
327,431 |
|
|
1,180,005 |
|
|
|
1,321,875 |
Organic sales, net |
|
$ |
693,669 |
|
$ |
740,742 |
|
$ |
2,632,632 |
|
|
$ |
3,079,807 |
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA is defined as net income before other income (expense), interest, taxes, and depreciation and amortization, excluding the non-recurring and non-cash items referenced above. We calculate “Adjusted EBITDA margins” as Adjusted EBITDA divided by net sales.
Segment Adjusted EBITDA Reconciliation
|
|
Three months ended |
|
Year ended |
||||||||||||||||||
(in thousands except percentages) |
|
The
|
|
Revelyst |
|
Total |
|
The
|
|
Revelyst |
|
Total |
||||||||||
Segment operating income (1) |
|
$ |
93,801 |
|
|
$ |
12,082 |
|
|
$ |
105,883 |
|
$ |
389,960 |
|
|
$ |
28,607 |
|
|
$ |
418,567 |
Depreciation and amortization |
|
|
6,465 |
|
|
|
17,052 |
|
|
|
23,517 |
|
|
25,813 |
|
|
|
69,677 |
|
|
|
95,490 |
Adjusted segment EBITDA |
|
$ |
100,266 |
|
|
$ |
29,134 |
|
|
$ |
129,400 |
|
$ |
415,773 |
|
|
$ |
98,284 |
|
|
$ |
514,057 |
Adjusted segment EBITDA margin |
|
|
27.7 |
% |
|
|
8.8 |
% |
|
|
|
|
28.6 |
% |
|
|
7.6 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three months ended |
|
Year ended |
||||||||||||||||||
(in thousands except percentages) |
|
The
|
|
Revelyst |
|
Total |
|
The
|
|
Revelyst |
|
Total |
||||||||||
Segment operating income (loss) (1) |
|
$ |
124,659 |
|
|
$ |
(8,468 |
) |
|
$ |
116,191 |
|
$ |
552,232 |
|
|
$ |
62,423 |
|
|
$ |
614,655 |
Depreciation and amortization |
|
|
6,136 |
|
|
|
17,881 |
|
|
|
24,017 |
|
|
25,087 |
|
|
|
62,829 |
|
|
|
87,916 |
Adjusted segment EBITDA |
|
$ |
130,795 |
|
|
$ |
9,413 |
|
|
$ |
140,208 |
|
$ |
577,319 |
|
|
$ |
125,252 |
|
|
$ |
702,571 |
Adjusted segment EBITDA margin |
|
|
31.6 |
% |
|
|
2.9 |
% |
|
|
|
|
32.8 |
% |
|
|
9.5 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) We do not calculate GAAP net income at the segment level, but have provided segment operating income as a relevant measurement of profitability. Segment operating income does not include interest expense and taxes as well as other non-cash and non-recurring items. Segment operating income is reconciled to our consolidated net income in the segment income to consolidated net income reconciliation table included in this press release. |
Consolidated Adjusted EBITDA Reconciliation
|
|
Three months ended |
|
Years ended |
||||||||||||
(in thousands except percentages) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
40,168 |
|
|
$ |
(294,335 |
) |
|
$ |
(5,505 |
) |
|
$ |
(9,718 |
) |
Other expense (income), net |
|
|
359 |
|
|
|
(744 |
) |
|
|
1,988 |
|
|
|
(2,124 |
) |
Interest expense, net |
|
|
14,861 |
|
|
|
20,120 |
|
|
|
62,949 |
|
|
|
59,317 |
|
Income tax provision (benefit) |
|
|
7,143 |
|
|
|
(17,464 |
) |
|
|
(8,979 |
) |
|
|
60,380 |
|
Depreciation and amortization |
|
|
24,484 |
|
|
|
24,998 |
|
|
|
99,291 |
|
|
|
92,089 |
|
Post acquisition compensation |
|
|
848 |
|
|
|
(5,765 |
) |
|
|
1,328 |
|
|
|
(1,017 |
) |
Transaction costs |
|
|
756 |
|
|
|
60 |
|
|
|
755 |
|
|
|
8,105 |
|
Contingent consideration |
|
|
2,742 |
|
|
|
(11,105 |
) |
|
|
5,888 |
|
|
|
(27,508 |
) |
Inventory step-up |
|
|
— |
|
|
|
1,449 |
|
|
|
— |
|
|
|
9,528 |
|
Executive transition costs |
|
|
— |
|
|
|
5,631 |
|
|
|
1,342 |
|
|
|
5,631 |
|
Impairment |
|
|
1,258 |
|
|
|
374,355 |
|
|
|
220,070 |
|
|
|
374,355 |
|
Restructuring |
|
|
450 |
|
|
|
13,111 |
|
|
|
5,604 |
|
|
|
13,111 |
|
Gear Up restructuring |
|
|
7,478 |
|
|
|
— |
|
|
|
8,279 |
|
|
|
— |
|
Transition costs |
|
|
542 |
|
|
|
3,318 |
|
|
|
7,310 |
|
|
|
4,315 |
|
Planned separation costs |
|
|
8,131 |
|
|
|
4,448 |
|
|
|
42,179 |
|
|
|
26,237 |
|
Adjusted EBITDA |
|
$ |
109,220 |
|
|
$ |
118,077 |
|
|
$ |
442,499 |
|
|
$ |
612,701 |
|
Adjusted EBITDA margin |
|
|
15.7 |
% |
|
|
15.9 |
% |
|
|
16.1 |
% |
|
|
19.9 |
% |
Segment Income to Consolidated Net Income Reconciliation
|
|
Three months ended |
|
Years ended |
||||||||||||
(in thousands) |
|
|
|
|
|
|
|
|
||||||||
Segment income |
|
$ |
105,883 |
|
|
$ |
116,191 |
|
|
$ |
418,567 |
|
|
$ |
614,655 |
|
Corporate costs and expenses (1) |
|
|
(43,352 |
) |
|
|
(408,614 |
) |
|
|
(368,114 |
) |
|
|
(506,800 |
) |
Operating income |
|
$ |
62,531 |
|
|
$ |
(292,423 |
) |
|
$ |
50,453 |
|
|
$ |
107,855 |
|
Other income, net |
|
|
(359 |
) |
|
|
744 |
|
|
|
(1,988 |
) |
|
|
2,124 |
|
Interest expense, net |
|
|
(14,861 |
) |
|
|
(20,120 |
) |
|
|
(62,949 |
) |
|
|
(59,317 |
) |
Income tax (provision) benefit |
|
|
(7,143 |
) |
|
|
17,464 |
|
|
|
8,979 |
|
|
|
(60,380 |
) |
Net Income |
|
$ |
40,168 |
|
|
$ |
(294,335 |
) |
|
$ |
(5,505 |
) |
|
$ |
(9,718 |
) |
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes corporate overhead and certain non-recurring items as described in the schedules to this release |
Net Debt and Net Debt Leverage Ratio
Net debt is defined as total debt less cash and cash equivalents. Net debt leverage ratio is defined as net debt as of the balance sheet date divided by adjusted EBITDA for the twelve months then ended. We believe that using net debt is useful to investors in determining our leverage ratio since we could choose to use cash and cash equivalents to retire debt. Vista Outdoor’s definitions may differ from those used by other companies.
Net Debt and Net Debt Leverage Ratio Reconciliation
(in thousands) |
|
As of |
||
Total Debt Outstanding |
|
$ |
720,000 |
|
Less: Cash |
|
|
(60,271 |
) |
Net Debt |
|
$ |
659,729 |
|
(in thousands except ratio) |
|
Twelve months ended
|
||
Net loss |
|
$ |
(5,505 |
) |
Other expense, net |
|
|
1,988 |
|
Interest expense, net |
|
|
62,949 |
|
Income tax benefit |
|
|
(8,979 |
) |
Depreciation and amortization |
|
|
99,291 |
|
Post acquisition compensation |
|
|
1,328 |
|
Transaction costs |
|
|
755 |
|
Contingent consideration |
|
|
5,888 |
|
Executive transition costs |
|
|
1,342 |
|
Impairment |
|
|
220,070 |
|
Restructuring |
|
|
5,604 |
|
Gear Up restructuring |
|
|
8,279 |
|
Transition costs |
|
|
7,310 |
|
Planned separation costs |
|
|
42,179 |
|
Adjusted EBITDA |
|
$ |
442,499 |
|
Net debt leverage ratio |
|
|
1.5 |
|
About
Forward-Looking Statements
Some of the statements made and information contained in this press release, excluding historical information, are “forward-looking statements,” including those that discuss, among other things:
You are cautioned not to place undue reliance on any forward-looking statements we make, which are based only on information currently available to us and speak only as of the date hereof. A more detailed description of risk factors that may affect our operating results can be found in Part 1, Item 1A, Risk Factors, of our Annual Report on Form 10-K for fiscal year 2023, in Part II, Item 1A, Risk Factors, of our Quarterly Report on Form 10-Q for the third quarter of fiscal year 2024, and in the filings we make with the
No Offer or Solicitation
This communication is neither an offer to sell, nor a solicitation of an offer to buy any securities, the solicitation of any vote, consent or approval in any jurisdiction pursuant to or in connection with the Transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Additional Information and Where to Find It
These materials may be deemed to be solicitation material in respect of the Transaction. In connection with the Transaction, Revelyst, a subsidiary of
Participants in Solicitation
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (preliminary and unaudited) |
||||||||||||||||
|
|
Three months ended |
|
Years ended |
||||||||||||
(Amounts in thousands except per share data) |
|
|
|
|
|
|
|
|
||||||||
Sales, net |
|
$ |
693,669 |
|
|
$ |
740,742 |
|
|
$ |
2,746,063 |
|
|
$ |
3,079,807 |
|
Cost of sales |
|
|
473,162 |
|
|
|
504,995 |
|
|
|
1,887,078 |
|
|
|
2,048,910 |
|
Gross profit |
|
|
220,507 |
|
|
|
235,747 |
|
|
|
858,985 |
|
|
|
1,030,897 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
13,094 |
|
|
|
12,776 |
|
|
|
49,644 |
|
|
|
44,209 |
|
Selling, general, and administrative |
|
|
144,882 |
|
|
|
141,039 |
|
|
|
540,076 |
|
|
|
504,478 |
|
Impairment of goodwill and intangibles |
|
|
— |
|
|
|
374,355 |
|
|
|
218,812 |
|
|
|
374,355 |
|
Operating income (loss) |
|
|
62,531 |
|
|
|
(292,423 |
) |
|
|
50,453 |
|
|
|
107,855 |
|
Other (expense) income, net |
|
|
(359 |
) |
|
|
744 |
|
|
|
(1,988 |
) |
|
|
2,124 |
|
Interest expense, net |
|
|
(14,861 |
) |
|
|
(20,120 |
) |
|
|
(62,949 |
) |
|
|
(59,317 |
) |
Income (loss) before income taxes |
|
|
47,311 |
|
|
|
(311,799 |
) |
|
|
(14,484 |
) |
|
|
50,662 |
|
Income tax (provision) benefit |
|
|
(7,143 |
) |
|
|
17,464 |
|
|
|
8,979 |
|
|
|
(60,380 |
) |
Net income (loss) |
|
$ |
40,168 |
|
|
$ |
(294,335 |
) |
|
$ |
(5,505 |
) |
|
$ |
(9,718 |
) |
Earnings (loss) per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.69 |
|
|
$ |
(5.18 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.17 |
) |
Diluted |
|
$ |
0.69 |
|
|
$ |
(5.18 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.17 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
58,165 |
|
|
|
56,776 |
|
|
|
57,946 |
|
|
|
56,600 |
|
Diluted |
|
|
58,517 |
|
|
|
56,776 |
|
|
|
57,946 |
|
|
|
56,600 |
|
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(preliminary and unaudited) |
||||||||
|
|
|
||||||
(Amounts in thousands except share data) |
|
2024 |
|
2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
60,271 |
|
|
$ |
86,208 |
|
Net receivables |
|
|
355,903 |
|
|
|
339,373 |
|
Net inventories |
|
|
609,999 |
|
|
|
709,897 |
|
Income tax receivable |
|
|
9,113 |
|
|
|
— |
|
Other current assets |
|
|
39,836 |
|
|
|
60,636 |
|
Total current assets |
|
|
1,075,122 |
|
|
|
1,196,114 |
|
Net property, plant, and equipment |
|
|
201,864 |
|
|
|
228,247 |
|
Operating lease assets |
|
|
107,007 |
|
|
|
106,828 |
|
|
|
|
318,251 |
|
|
|
465,709 |
|
Net intangible assets |
|
|
627,636 |
|
|
|
733,176 |
|
Deferred income tax assets |
|
|
12,895 |
|
|
|
— |
|
Deferred charges and other non-current assets, net |
|
|
59,605 |
|
|
|
68,808 |
|
Total assets |
|
$ |
2,402,380 |
|
|
$ |
2,798,882 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current portion of long-term debt |
|
$ |
— |
|
|
$ |
65,000 |
|
Accounts payable |
|
|
163,411 |
|
|
|
136,556 |
|
Accrued compensation |
|
|
56,983 |
|
|
|
60,719 |
|
Accrued income taxes |
|
|
— |
|
|
|
6,676 |
|
Federal excise, use, and other taxes |
|
|
35,552 |
|
|
|
38,543 |
|
Other current liabilities |
|
|
129,352 |
|
|
|
146,377 |
|
Total current liabilities |
|
|
385,298 |
|
|
|
453,871 |
|
Long-term debt |
|
|
717,238 |
|
|
|
984,658 |
|
Deferred income tax liabilities |
|
|
— |
|
|
|
40,749 |
|
Long-term operating lease liabilities |
|
|
105,699 |
|
|
|
103,313 |
|
Accrued pension and postemployment benefits |
|
|
22,866 |
|
|
|
25,114 |
|
Other long-term liabilities |
|
|
44,982 |
|
|
|
59,384 |
|
Total liabilities |
|
|
1,276,083 |
|
|
|
1,667,089 |
|
Commitments and contingencies |
|
|
|
|
||||
Common stock—$.01 par value: |
|
|
|
|
||||
Authorized—500,000,000 shares |
|
|
|
|
||||
Issued and outstanding—58,238,276 shares as of |
|
|
582 |
|
|
|
570 |
|
Additional paid-in-capital |
|
|
1,653,089 |
|
|
|
1,711,155 |
|
Accumulated deficit |
|
|
(236,033 |
) |
|
|
(230,528 |
) |
Accumulated other comprehensive loss |
|
|
(74,348 |
) |
|
|
(80,802 |
) |
Common stock in treasury, at cost—5,726,163 shares held as of |
|
|
(216,993 |
) |
|
|
(268,602 |
) |
Total stockholders' equity |
|
|
1,126,297 |
|
|
|
1,131,793 |
|
Total liabilities and stockholders' equity |
|
$ |
2,402,380 |
|
|
$ |
2,798,882 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(preliminary and unaudited) |
||||||||
|
|
Years Ended |
||||||
(Amounts in thousands) |
|
2024 |
|
2023 |
||||
Operating Activities |
|
|
|
|
||||
Net income |
|
$ |
(5,505 |
) |
|
$ |
(9,718 |
) |
Adjustments to net income to arrive at cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
49,145 |
|
|
|
48,126 |
|
Amortization of intangible assets |
|
|
50,146 |
|
|
|
43,963 |
|
Amortization of deferred financing costs |
|
|
10,098 |
|
|
|
6,702 |
|
Impairment of goodwill and intangibles |
|
|
218,812 |
|
|
|
374,355 |
|
Impairment of long-lived assets |
|
|
4,462 |
|
|
|
— |
|
Change in fair value of contingent consideration |
|
|
5,855 |
|
|
|
(27,510 |
) |
Deferred income taxes |
|
|
(54,988 |
) |
|
|
(43,177 |
) |
Gain on foreign exchange |
|
|
(624 |
) |
|
|
(1,249 |
) |
Loss on disposal of property, plant, and equipment |
|
|
1,326 |
|
|
|
1,719 |
|
Share-based compensation |
|
|
11,450 |
|
|
|
28,119 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Net receivables |
|
|
(13,480 |
) |
|
|
66,860 |
|
Net inventories |
|
|
105,884 |
|
|
|
18,537 |
|
Accounts payable |
|
|
29,500 |
|
|
|
(33,596 |
) |
Accrued compensation |
|
|
(3,847 |
) |
|
|
(25,803 |
) |
Accrued income taxes |
|
|
(19,627 |
) |
|
|
59,679 |
|
Federal excise, use, and other taxes |
|
|
(2,991 |
) |
|
|
(3,311 |
) |
Pension and other postretirement benefits |
|
|
1,333 |
|
|
|
1,988 |
|
Other assets and liabilities |
|
|
13,938 |
|
|
|
(19,499 |
) |
Cash provided by operating activities |
|
|
400,887 |
|
|
|
486,185 |
|
Investing Activities |
|
|
|
|
||||
Capital expenditures |
|
|
(30,534 |
) |
|
|
(38,810 |
) |
Proceeds from note receivable |
|
|
— |
|
|
|
10,683 |
|
Acquisition of businesses, net of cash received |
|
|
(16,478 |
) |
|
|
(761,589 |
) |
Proceeds from the disposition of property, plant, and equipment |
|
|
328 |
|
|
|
47 |
|
Cash used for investing activities |
|
|
(46,684 |
) |
|
|
(789,669 |
) |
Financing Activities |
|
|
|
|
||||
Proceeds from credit facility |
|
|
204,000 |
|
|
|
468,000 |
|
Repayments of credit facility |
|
|
(339,000 |
) |
|
|
(283,000 |
) |
Proceeds from issuance of long-term debt |
|
|
— |
|
|
|
350,000 |
|
Payments on long-term debt |
|
|
(205,000 |
) |
|
|
(145,000 |
) |
Payments made for debt issue costs and prepayment premiums |
|
|
(63 |
) |
|
|
(17,209 |
) |
Proceeds from exercise of stock options |
|
|
162 |
|
|
|
4,213 |
|
Payments made for contingent consideration |
|
|
(22,573 |
) |
|
|
(706 |
) |
Payment of employee taxes related to vested stock awards |
|
|
(17,967 |
) |
|
|
(9,090 |
) |
Cash (used for) provided by financing activities |
|
|
(380,441 |
) |
|
|
367,208 |
|
Effect of foreign currency exchange rate fluctuations on cash |
|
|
301 |
|
|
|
(100 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
(25,937 |
) |
|
|
63,624 |
|
Cash and cash equivalents at beginning of year |
|
|
86,208 |
|
|
|
22,584 |
|
Cash and cash equivalents at end of year |
|
$ |
60,271 |
|
|
$ |
86,208 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508098445/en/
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