Vista Outdoor Reports First Quarter Fiscal Year 2025 Financial Results
-
Vista Outdoor Board of Directors Committed to Maximizing Value to Stockholders; Ongoing Review of Strategic Alternatives Continuing to Progress; Special Meeting of Stockholders Scheduled to Be HeldSeptember 13, 2024 -
Vista Outdoor Reaffirms Fiscal Year 2025 Outlook: Expects FY2025 Sales of
$2.665 Billion to$2.775 Billion , Expects Adjusted EBITDA in the Range of$410 Million to$490 Million -
Vista Outdoor Strong Q1 FY2025 Cash Provided by Operating Activities of
$54 Million and Adjusted Free Cash Flow of$70 Million ; Total Debt Decreased$85 Million Sequentially to$635 Million ; Net Debt of$579 Million and a Net Debt Leverage Ratio of 1.3x -
Revelyst Strategically Positioned to Unlock Meaningful Growth and Margin Expansion; Revelyst GEAR Up Transformation Program Contributed
$5 Million in Realized Cost Savings in Q1 FY2025, Providing Clear Path to$25 Million to$30 Million of Cost Savings in FY2025; Reaffirms Expectation to Double Revelyst Standalone Adjusted EBITDA1 in FY2025 and Realize$100 Million of Run Rate Cost Savings in Fiscal Year 2027 -
Revelyst Announces Biggest Partnership Ever, a Collaboration Between Revelyst,
Camp Chef andGuy Fieri , Which Unites the Mayor of Flavortown Himself With the Leading Innovator in Outdoor Cooking Gear. This Multi-Year Partnership Will Include Several Collaborations Between Fieri andCamp Chef and Will Include a Number of Co-branded Cooking Equipment Pieces. Be on the Lookout forMore News on This Category Defining Announcement onAugust 19
"The Board is committed to acting in the best interests of the Company and its stockholders," said
“Revelyst made progress implementing our actionable standalone strategy to drive value creation in the first quarter amid continued market headwinds in certain segments. This gives us confidence in our full-year financial targets as we seek to show sequential quarter-over-quarter improvement throughout the year,” said
“Across the enterprise, we are making good progress on our GEAR Up transformation. The GEAR Up transformation is working to simplify our business model, increase efficiency and expand strategic opportunities that allow us to reinvest in our highest potential brands. We expect more progress in the coming months. Looking ahead, we are excited to announce our biggest partnership ever, a collaboration between Revelyst,
“The Kinetic Group delivered a strong start to the year, reporting sales in line with expectations and profitability ahead of expectations,” said
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1
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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 7.1 percent to
$644 million driven primarily by lower volume at The Kinetic Group and Revelyst, partially offset by increased government sales at Revelyst and increased price at The Kinetic Group.
-
Gross profit decreased 6.9 percent to
$211 million due to decreased volume and increased inflationary costs, including for copper and powder at The Kinetic Group and lower volume at Revelyst, partially offset by increased price at The Kinetic Group.
- Operating expenses decreased 3.3 percent driven primarily by a gain on divestiture, lower transition costs for prior acquisitions and selling, general and administrative cost savings at Revelyst from GEAR Up, partially offset by increased selling, general and administrative costs at The Kinetic Group, increased planned separation costs, an asset impairment related to the sale of Fiber Energy and GEAR Up restructuring costs.
-
Operating income declined 12.1 percent to
$81 million and operating income margin decreased 72 basis points to 12.6 percent. Adjusted operating income was$86 million , down 13.1 percent. Adjusted operating income margin decreased 92 basis points to 13.3 percent.
-
Net income decreased to
$57 million . Net income margin increased to 8.9 percent.
-
Adjusted EBITDA declined 11.3 percent to
$110 million . Adjusted EBITDA margin decreased 80 basis points to 17.1 percent.
-
Diluted Earnings per Share (EPS) was
$0.97 , down 2.0 percent, compared with$0.99 in the prior fiscal year. Adjusted EPS declined to$1.01 , or down 6.5 percent, compared with$1.08 in the prior fiscal year.
-
Cash provided by operating activities was
$54 million , compared to$74 million in the prior fiscal year. Adjusted free cash flow was$70 million .
For the three months ended
Revelyst
-
Sales declined 13.6 percent to
$274 million driven by pre-order delivery timing delays, unfavorable product mix toward lower price point channels and lower royalty revenues withinRevelyst Adventure Sports , lower wholesale volume and order timing within Revelyst Outdoor Performance and lower volume as a result of strong new product introductions in the prior year for Bushnell Golf and order timing within Revelyst Precision Sports Technology. The decline was partially offset by increased government sales at Revelyst Outdoor Performance and growth at Foresight driven by new product introductions at Revelyst Precision Sports Technology.
-
Gross profit decreased 14.2 percent to
$81 million due to the reduction in sales, partially offset by lower freight costs atRevelyst Adventure Sports , lower discounting at Revelyst Outdoor Performance and favorable product mix at Revelyst Precision Sports Technology.
-
Operating income (loss) declined 123.8 percent to
$(2) million due to lower gross profit at all three Revelyst segments, partially offset by decreased selling, general and administrative costs related to GEAR Up initiatives. Operating income (loss) margin decreased 263 basis points to (0.6) percent.
-
Adjusted EBITDA decreased 35.2 percent to
$16 million . Adjusted EBITDA margin decreased 190 basis points to 5.7 percent.
The Kinetic Group
-
Sales decreased 1.6 percent to
$370 million , due to lower shipments across nearly all categories, partially offset by increased price.
-
Gross profit declined 1.6 percent to
$130 million driven primarily by decreased volume and increased input costs primarily for copper and powder, partially offset by increased price.
-
Operating income decreased 3.8 percent to
$104 million due to lower gross profit and increased selling, general and administrative costs. Operating income margin decreased 62 basis points to 28.2 percent.
-
Adjusted EBITDA decreased 3.2 percent to
$111 million . Adjusted EBITDA margin decreased 49 basis points to 30.0 percent.
Fiscal Year 2025 Outlook
“Our balance sheet remains strong and we generated robust cash provided by operating activities of
“Looking forward, we expect to see increased sales and sequential adjusted EBITDA momentum in the quarters ahead at Revelyst, as a result of new and exciting product launches and partnership launches, including the collaboration with
Vista Outdoor Reaffirms Fiscal Year 2025 Financial Guidance
The Company reaffirmed its Fiscal Year 2025 guidance and 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 -
EPS in the range of
$3.56 to$4.46 ; Adjusted EPS in the range of$3.60 to$4.50 -
Cash provided by operating activities in the range of
$262 million to$343 million ; adjusted Free Cash Flow in the range of$240 million to$320 million - Effective and adjusted 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 expenses, adjusted operating income, adjusted operating income margin, adjusted taxes, adjusted tax rate, adjusted net income, 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
|
||
Transition costs previously specified |
|
$ |
1,044 |
|
Planned separation costs previously specified |
|
|
291 |
|
Post-acquisition compensation previously specified |
|
|
1,245 |
|
Income tax impact |
|
|
(320 |
) |
Decrease in as adjusted net income |
|
$ |
2,260 |
|
|
|
|
||
Decrease in adjusted EPS |
|
$ |
0.04 |
|
Adjusted EPS previously reported |
|
|
1.12 |
|
Revised adjusted EPS |
|
$ |
1.08 |
|
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, adjusted 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 |
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(in thousands except per share amounts and percentages) |
|
Gross profit |
|
Operating expenses |
|
Operating income |
|
Operating income margin |
|
Other expense, net |
|
Interest |
|
Taxes |
|
Tax rate |
|
Net income |
|
EPS (1) |
|||||||||||||||||
As reported |
|
$ |
211,157 |
|
$ |
130,129 |
|
|
$ |
81,028 |
|
|
12.6 |
% |
|
$ |
(77 |
) |
|
$ |
(9,421 |
) |
|
$ |
(14,410 |
) |
|
20.1 |
% |
|
$ |
57,120 |
|
|
$ |
0.97 |
|
Post acquisition compensation |
|
|
— |
|
|
(68 |
) |
|
|
68 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
68 |
|
|
|
||||
Transaction costs |
|
|
— |
|
|
(178 |
) |
|
|
178 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(43 |
) |
|
|
|
|
135 |
|
|
|
||||
Gain on divestiture |
|
|
— |
|
|
19,659 |
|
|
|
(19,659 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
3,036 |
|
|
|
|
|
(16,623 |
) |
|
|
||||
Impairment |
|
|
— |
|
|
(6,336 |
) |
|
|
6,336 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,521 |
) |
|
|
|
|
4,815 |
|
|
|
||||
Gear Up restructuring |
|
|
— |
|
|
(5,190 |
) |
|
|
5,190 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,246 |
) |
|
|
|
|
3,944 |
|
|
|
||||
Transition costs |
|
|
— |
|
|
142 |
|
|
|
(142 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
|
|
(107 |
) |
|
|
||||
Planned separation costs |
|
|
— |
|
|
(12,786 |
) |
|
|
12,786 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(3,069 |
) |
|
|
|
|
9,717 |
|
|
|
||||
As adjusted |
|
$ |
211,157 |
|
$ |
125,372 |
|
|
$ |
85,785 |
|
|
13.3 |
% |
|
$ |
(77 |
) |
|
$ |
(9,421 |
) |
|
$ |
(17,218 |
) |
|
22.6 |
% |
|
$ |
59,069 |
|
|
$ |
1.01 |
|
|
|
|
|
|
|
|
|
|
|
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(1) As reported net earnings per share and adjusted net earnings per share are both calculated based on 58,641 diluted weighted average shares of common stock. |
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Three months ended |
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|||||||||||||||||
(in thousands except per share amounts and percentages) |
|
Gross profit |
|
Operating expenses |
|
Operating income |
|
Operating income margin |
|
Other expense, net |
|
Interest |
|
Taxes |
|
Tax rate |
|
Net income |
|
EPS (1) |
|||||||||||||||||
As reported |
|
$ |
226,757 |
|
$ |
134,571 |
|
|
$ |
92,186 |
|
|
13.3 |
% |
|
$ |
(541 |
) |
|
$ |
(16,218 |
) |
|
$ |
(17,327 |
) |
|
23.0 |
% |
|
$ |
58,100 |
|
|
$ |
0.99 |
|
Post acquisition compensation |
|
|
— |
|
|
(160 |
) |
|
|
160 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
160 |
|
|
|
||||
Executive transition costs |
|
|
— |
|
|
(658 |
) |
|
|
658 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(158 |
) |
|
|
|
|
500 |
|
|
|
||||
Restructuring |
|
|
— |
|
|
(834 |
) |
|
|
834 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(200 |
) |
|
|
|
|
634 |
|
|
|
||||
Transition costs |
|
|
— |
|
|
(1,957 |
) |
|
|
1,957 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(470 |
) |
|
|
|
|
1,487 |
|
|
|
||||
Planned separation costs |
|
|
— |
|
|
(2,933 |
) |
|
|
2,933 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(704 |
) |
|
|
|
|
2,229 |
|
|
|
||||
As adjusted |
|
$ |
226,757 |
|
$ |
128,029 |
|
|
$ |
98,728 |
|
$ |
— |
14.2 |
% |
|
$ |
(541 |
) |
|
$ |
(16,218 |
) |
|
$ |
(18,859 |
) |
|
23.0 |
% |
|
$ |
63,110 |
|
|
$ |
1.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|||||||||||||||||
(1) As reported net earnings per share and adjusted net earnings per share are both calculated based on 58,541 diluted weighted average shares of common stock. |
During the three months 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;
- gain on the divestiture of our RCBS brand;
- impairment expense related to long-lived assets of our Fiber Energy business, which was divested after our first quarter end;
- restructuring costs related to our GEAR Up transformation program, including severance costs and asset impairments related to location closures;
- transition costs for prior acquisitions to integrate into the Company such as professional fees and travel costs; and
-
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.
During the three months ended
During the three months ended
- 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; -
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, and; -
post-acquisition compensation expense related to the
Stone Glacier acquisition.
During the three months 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 ended |
|
Three months ended |
|
Projected year ending |
||||
Cash provided by operating activities (as reported) |
|
$ |
53,765 |
|
|
$ |
73,701 |
|
|
|
Capital expenditures |
|
|
(2,284 |
) |
|
|
(7,616 |
) |
|
~(39,975 - 41,625) |
Free cash flow |
|
|
51,481 |
|
|
|
66,085 |
|
|
|
Post acquisition compensation |
|
|
83 |
|
|
|
83 |
|
|
83 |
Transaction costs |
|
|
28 |
|
|
|
— |
|
|
28 |
Executive transition costs |
|
|
— |
|
|
|
2,783 |
|
|
— |
Restructuring |
|
|
— |
|
|
|
2,241 |
|
|
— |
Gear Up restructuring |
|
|
7,691 |
|
|
|
— |
|
|
7,691 |
Transition costs |
|
|
166 |
|
|
|
1,739 |
|
|
166 |
Planned separation costs |
|
|
10,360 |
|
|
|
2,629 |
|
|
10,360 |
Adjusted free cash flow |
|
$ |
69,809 |
|
|
$ |
75,560 |
|
|
|
|
|
|
|
|
|
|
Current FY25 Full-Year Adjusted EPS Guidance |
|
|
|
|
||||
|
|
Low |
|
High |
||||
EPS guidance |
|
$ |
3.56 |
|
|
$ |
4.46 |
|
Gain on divestiture |
|
|
(0.28 |
) |
|
|
(0.28 |
) |
Impairment |
|
|
0.08 |
|
|
|
0.08 |
|
Gear Up restructuring |
|
|
0.07 |
|
|
|
0.07 |
|
Planned separation costs |
|
|
0.17 |
|
|
|
0.17 |
|
Adjusted EPS guidance |
|
$ |
3.60 |
|
|
$ |
4.50 |
|
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA is defined as net income before other expense, net, interest, taxes, depreciation and amortization, and amortization of cloud computing software, 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 |
|||||||||
(in thousands except percentages) |
|
The Kinetic Group |
|
Revelyst |
|
Total |
|||||
Segment operating income (1) |
|
$ |
104,396 |
|
|
$ |
(1,549 |
) |
|
$ |
102,847 |
Depreciation and amortization |
|
|
6,727 |
|
|
|
16,631 |
|
|
|
23,358 |
Amortization of cloud computing software costs (2) |
|
|
36 |
|
|
|
535 |
|
|
|
571 |
Adjusted segment EBITDA |
|
$ |
111,159 |
|
|
$ |
15,617 |
|
|
$ |
126,776 |
Adjusted segment EBITDA margin |
|
|
30.0 |
% |
|
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
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|
Three months ended |
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(in thousands except percentages) |
|
The Kinetic Group |
|
Revelyst |
|
Total |
|||||
Segment operating income (loss) (1) |
|
$ |
108,464 |
|
|
$ |
6,524 |
|
|
$ |
114,988 |
Depreciation and amortization |
|
|
6,913 |
|
|
|
17,700 |
|
|
|
24,613 |
Amortization of cloud computing software costs (2) |
|
|
36 |
|
|
|
458 |
|
|
|
494 |
Adjusted segment EBITDA |
|
$ |
115,413 |
|
|
$ |
24,682 |
|
|
$ |
140,095 |
Adjusted segment EBITDA margin |
|
|
30.6 |
% |
|
|
7.8 |
% |
|
|
(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. |
|
(2) Amortization of cloud computing software costs consist of expense recognized in selling, general and administrative expense for capitalized implementation costs of IT. This expense is not included in depreciation and amortization above. |
Consolidated Adjusted EBITDA Reconciliation
|
|
Three months ended |
||||||
(in thousands except percentages) |
|
|
|
|
||||
Net income |
|
$ |
57,120 |
|
|
$ |
58,100 |
|
Other expense, net |
|
|
77 |
|
|
|
541 |
|
Interest expense, net |
|
|
9,421 |
|
|
|
16,218 |
|
Income tax provision |
|
|
14,410 |
|
|
|
17,327 |
|
Depreciation and amortization |
|
|
23,692 |
|
|
|
24,927 |
|
Amortization of cloud computing software costs |
|
|
618 |
|
|
|
397 |
|
Post acquisition compensation |
|
|
68 |
|
|
|
160 |
|
Transaction costs |
|
|
178 |
|
|
|
— |
|
Gain on divestiture |
|
|
(19,659 |
) |
|
|
— |
|
Impairment |
|
|
6,336 |
|
|
|
— |
|
Gear Up restructuring |
|
|
5,190 |
|
|
|
— |
|
Transition costs |
|
|
(142 |
) |
|
|
1,957 |
|
Planned separation costs |
|
|
12,786 |
|
|
|
2,933 |
|
Executive transition costs |
|
|
— |
|
|
|
658 |
|
Restructuring |
|
|
— |
|
|
|
834 |
|
Adjusted EBITDA |
|
$ |
110,095 |
|
|
$ |
124,052 |
|
Adjusted EBITDA margin |
|
|
17.1 |
% |
|
|
17.9 |
% |
Segment Income to Consolidated Net Income Reconciliation
|
|
Three months ended |
||||||
(in thousands) |
|
|
|
|
||||
Segment income |
|
$ |
102,847 |
|
|
$ |
114,988 |
|
Corporate costs and expenses (1) |
|
|
(21,819 |
) |
|
|
(22,802 |
) |
Operating income |
|
$ |
81,028 |
|
|
$ |
92,186 |
|
Other expense, net |
|
|
(77 |
) |
|
|
(541 |
) |
Interest expense, net |
|
|
(9,421 |
) |
|
|
(16,218 |
) |
Income tax provision |
|
|
(14,410 |
) |
|
|
(17,327 |
) |
Net Income |
|
$ |
57,120 |
|
|
$ |
58,100 |
|
|
|
|
|
|
||||
(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 |
|
As of |
||||
Total Debt Outstanding |
|
$ |
635,000 |
|
|
$ |
720,000 |
|
Less: Cash |
|
|
(55,981 |
) |
|
|
(60,271 |
) |
Net Debt |
|
$ |
579,019 |
|
|
$ |
659,729 |
|
(in thousands except ratio) |
|
Twelve months ended
|
|
Twelve months ended
|
||||
Net loss |
|
$ |
(6,485 |
) |
|
$ |
(5,505 |
) |
Other expense, net |
|
|
1,524 |
|
|
|
1,988 |
|
Interest expense, net |
|
|
56,152 |
|
|
|
62,949 |
|
Income tax benefit |
|
|
(11,896 |
) |
|
|
(8,979 |
) |
Depreciation and amortization |
|
|
98,056 |
|
|
|
99,291 |
|
Amortization of cloud computing software costs |
|
|
2,583 |
|
|
|
2,363 |
|
Post acquisition compensation |
|
|
1,236 |
|
|
|
1,328 |
|
Transaction costs |
|
|
933 |
|
|
|
755 |
|
Gain on divestiture |
|
|
(19,659 |
) |
|
|
— |
|
Contingent consideration |
|
|
5,888 |
|
|
|
5,888 |
|
Executive transition costs |
|
|
684 |
|
|
|
1,342 |
|
Impairment |
|
|
226,406 |
|
|
|
220,070 |
|
Restructuring |
|
|
4,770 |
|
|
|
5,604 |
|
Gear Up restructuring |
|
|
13,469 |
|
|
|
8,279 |
|
Transition costs |
|
|
5,211 |
|
|
|
7,310 |
|
Planned separation costs |
|
|
52,032 |
|
|
|
42,179 |
|
Adjusted EBITDA |
|
$ |
430,904 |
|
|
$ |
444,862 |
|
Net debt leverage ratio |
|
|
1.3 |
|
|
|
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: Vista Outdoor Inc.’s (“Vista Outdoor”, “we”, “us” or “our”) plans, objectives, expectations, intentions, strategies, goals, outlook or other non-historical matters; projections with respect to future revenues, income, earnings per share or other financial measures for
Numerous risks, uncertainties and other factors could cause our actual results to differ materially from the expectations described in such forward-looking statements, including the following: risks related to the previously announced transaction among
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 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,
Participants in Solicitation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (preliminary and unaudited) |
||||||||
|
|
Three months ended |
||||||
(Amounts in thousands except per share data) |
|
|
|
|
||||
Sales, net |
|
$ |
644,181 |
|
|
$ |
693,333 |
|
Cost of sales |
|
|
433,024 |
|
|
|
466,576 |
|
Gross profit |
|
|
211,157 |
|
|
|
226,757 |
|
Operating expenses: |
|
|
|
|
||||
Research and development |
|
|
12,439 |
|
|
|
12,080 |
|
Selling, general, and administrative |
|
|
137,349 |
|
|
|
122,491 |
|
Gain on divestiture |
|
|
(19,659 |
) |
|
|
— |
|
Operating income |
|
|
81,028 |
|
|
|
92,186 |
|
Other expense, net |
|
|
(77 |
) |
|
|
(541 |
) |
Interest expense, net |
|
|
(9,421 |
) |
|
|
(16,218 |
) |
Income before income taxes |
|
|
71,530 |
|
|
|
75,427 |
|
Income tax provision |
|
|
(14,410 |
) |
|
|
(17,327 |
) |
Net income |
|
$ |
57,120 |
|
|
$ |
58,100 |
|
Earnings per common share: |
|
|
|
|
||||
Basic |
|
$ |
0.98 |
|
|
$ |
1.01 |
|
Diluted |
|
$ |
0.97 |
|
|
$ |
0.99 |
|
|
|
|
|
|
||||
Weighted-average number of common shares outstanding: |
|
|
|
|
||||
Basic |
|
|
58,312 |
|
|
|
57,455 |
|
Diluted |
|
|
58,641 |
|
|
|
58,541 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (preliminary and unaudited) |
||||||||
(Amounts in thousands except share data) |
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
55,981 |
|
|
$ |
60,271 |
|
Net receivables |
|
|
355,968 |
|
|
|
355,903 |
|
Net inventories |
|
|
619,531 |
|
|
|
609,999 |
|
Income tax receivable |
|
|
— |
|
|
|
9,113 |
|
Other current assets |
|
|
42,369 |
|
|
|
39,836 |
|
Total current assets |
|
|
1,073,849 |
|
|
|
1,075,122 |
|
Net property, plant, and equipment |
|
|
184,774 |
|
|
|
201,864 |
|
Operating lease assets |
|
|
101,427 |
|
|
|
107,007 |
|
|
|
|
318,251 |
|
|
|
318,251 |
|
Net intangible assets |
|
|
613,324 |
|
|
|
627,636 |
|
Deferred income tax assets |
|
|
12,504 |
|
|
|
12,895 |
|
Deferred charges and other non-current assets, net |
|
|
59,664 |
|
|
|
59,605 |
|
Total assets |
|
$ |
2,363,793 |
|
|
$ |
2,402,380 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
146,745 |
|
|
$ |
163,411 |
|
Accrued compensation |
|
|
49,404 |
|
|
|
56,983 |
|
Accrued income taxes |
|
|
4,104 |
|
|
|
— |
|
Federal excise, use, and other taxes |
|
|
35,282 |
|
|
|
35,552 |
|
Other current liabilities |
|
|
147,597 |
|
|
|
129,352 |
|
Total current liabilities |
|
|
383,132 |
|
|
|
385,298 |
|
Long-term debt |
|
|
632,378 |
|
|
|
717,238 |
|
Long-term operating lease liabilities |
|
|
100,983 |
|
|
|
105,699 |
|
Accrued pension and postemployment benefits |
|
|
18,766 |
|
|
|
22,866 |
|
Other long-term liabilities |
|
|
42,275 |
|
|
|
44,982 |
|
Total liabilities |
|
|
1,177,534 |
|
|
|
1,276,083 |
|
|
|
|
|
|
||||
Common stock—$.01 par value: |
|
|
|
|
||||
Authorized—500,000,000 shares |
|
|
|
|
||||
Issued and outstanding—58,363,474 shares as of |
|
|
583 |
|
|
|
582 |
|
Additional paid-in-capital |
|
|
1,650,078 |
|
|
|
1,653,089 |
|
Accumulated deficit |
|
|
(178,913 |
) |
|
|
(236,033 |
) |
Accumulated other comprehensive loss |
|
|
(73,404 |
) |
|
|
(74,348 |
) |
Common stock in treasury, at cost—5,600,965 shares held as of |
|
|
(212,085 |
) |
|
|
(216,993 |
) |
Total stockholders' equity |
|
|
1,186,259 |
|
|
|
1,126,297 |
|
Total liabilities and stockholders' equity |
|
$ |
2,363,793 |
|
|
$ |
2,402,380 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (preliminary and unaudited) |
||||||||
|
|
Three months ended |
||||||
(Amounts in thousands) |
|
|
|
|
||||
Operating Activities |
|
|
|
|
||||
Net income |
|
$ |
57,120 |
|
|
$ |
58,100 |
|
Adjustments to net income to arrive at cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
11,209 |
|
|
|
12,220 |
|
Amortization of intangible assets |
|
|
12,483 |
|
|
|
12,707 |
|
Amortization of deferred financing costs |
|
|
764 |
|
|
|
2,078 |
|
Impairment of long-lived assets |
|
|
8,043 |
|
|
|
— |
|
Gain on sale of business |
|
|
(19,659 |
) |
|
|
— |
|
Deferred income taxes |
|
|
14 |
|
|
|
576 |
|
(Gain)/loss on foreign exchange |
|
|
55 |
|
|
|
(1,272 |
) |
(Gain)/loss on disposal of property, plant, and equipment |
|
|
396 |
|
|
|
(59 |
) |
Share-based compensation |
|
|
4,123 |
|
|
|
3,307 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Net receivables |
|
|
(67 |
) |
|
|
(51,915 |
) |
Net inventories |
|
|
(17,695 |
) |
|
|
(6,117 |
) |
Accounts payable |
|
|
(20,040 |
) |
|
|
21,850 |
|
Accrued compensation |
|
|
(6,914 |
) |
|
|
(14,546 |
) |
Accrued income taxes |
|
|
14,730 |
|
|
|
16,231 |
|
Federal excise, use, and other taxes |
|
|
(270 |
) |
|
|
(2,951 |
) |
Pension and other postretirement benefits |
|
|
(3,357 |
) |
|
|
341 |
|
Other assets and liabilities |
|
|
12,830 |
|
|
|
23,151 |
|
Cash provided by operating activities |
|
|
53,765 |
|
|
|
73,701 |
|
Investing Activities |
|
|
|
|
||||
Capital expenditures |
|
|
(2,284 |
) |
|
|
(7,616 |
) |
Proceeds from the sale of business |
|
|
33,400 |
|
|
|
— |
|
Asset acquisition |
|
|
(263 |
) |
|
|
— |
|
Proceeds from the disposition of property, plant, and equipment |
|
|
— |
|
|
|
129 |
|
Cash provided by (used for) investing activities |
|
|
30,853 |
|
|
|
(7,487 |
) |
Financing Activities |
|
|
|
|
||||
Proceeds from credit facility |
|
|
63,000 |
|
|
|
30,000 |
|
Repayments of credit facility |
|
|
(148,000 |
) |
|
|
(95,000 |
) |
Payments on long-term debt |
|
|
— |
|
|
|
(90 |
) |
Payments made for debt issue costs and prepayment premiums |
|
|
— |
|
|
|
(31 |
) |
Proceeds from exercise of stock options |
|
|
— |
|
|
|
39 |
|
Payments made for contingent consideration |
|
|
(750 |
) |
|
|
(8,585 |
) |
Payment of employee taxes related to vested stock awards |
|
|
(2,889 |
) |
|
|
(16,024 |
) |
Cash used for financing activities |
|
|
(88,639 |
) |
|
|
(89,691 |
) |
Effect of foreign currency exchange rate fluctuations on cash |
|
|
(269 |
) |
|
|
432 |
|
Decrease in cash and cash equivalents |
|
|
(4,290 |
) |
|
|
(23,045 |
) |
Cash and cash equivalents at beginning of year |
|
|
60,271 |
|
|
|
86,208 |
|
Cash and cash equivalents at end of year |
|
$ |
55,981 |
|
|
$ |
63,163 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240805737326/en/
Investor Contact:
Phone: 612-704-0147
E-mail: investor.relations@vistaoutdoor.com
Media Contact:
Phone: 720-772-0877
E-mail: media.relations@vistaoutdoor.com
Source: