Vista Outdoor Reports Strong Second Quarter Financial Results; Special Meeting of Stockholders to Vote on Sale of The Kinetic Group to CSG Scheduled to be Held on November 25, 2024
-
Vista Outdoor Board of Directors Committed to Maximizing Value to Stockholders Through Sales of The Kinetic Group and Revelyst For an Expected Total Cash Consideration to Stockholders of Approximately$45.00 1 per Share; Leading Independent Proxy Advisory Firm Institutional Shareholder Services ("ISS") Recommends Vista Outdoor Stockholders Vote "FOR" the Sale of The Kinetic Group to CSG
-
Vista Outdoor FY2025 Q2 Financial Results In-Line With Expectations: Sales of
$666 Million ; Operating Income of$66 Million with 9.9 Percent Margin; Adj. EBITDA of$111 Million Translating to 16.7 Percent Margin
-
Revelyst FY2025 Q2 Financial Results Exceeded Expectations: Sales of
$315 Million ; Operating Income of $21Million With Margin of 6.6 Percent, an Increase of 270 Basis Points Year-Over-Year and 720 Basis Points Sequentially; Adj. EBITDA More Than Doubled Sequentially to $38Million With Margin of 12.1 Percent
-
The Kinetic Group FY2025 Q2 Sales of$351 Million ; Operating Income of$87 Million with 24.8 Percent Margin; Adj. EBITDA of$94 Million Translating to 26.7 Percent Margin
-
Vista Outdoor Total Debt Decreased
$45 Million Sequentially to$590 Million ; Net Debt of$553 Million and a Net Debt Leverage Ratio of 1.3Times
"I am proud of the strong quarter the
“Our teams across Revelyst worked hard to deliver a terrific second quarter, keeping us on track with our commitment to double standalone adjusted EBITDA for the Fiscal Year,” said
“Looking ahead, we are excited to partner with SVP to capitalize on the momentum that we have built at Revelyst. The partnership positions us well to continue to leverage our integrated international house of brands and leadership in the outdoor industry. We see accelerating growth and an ability to deliver further innovation and top-tier products to outdoor enthusiasts bolstered by the access to SVP’s full operating resources and network. The future at Revelyst is bright, and I look forward to the next step in our journey alongside SVP.”
“The Kinetic Group continues to demonstrate best-in-class performance, while facing a tougher market than last year,” said
Note that in the results below when referring to "Revelyst," it comprises three new operating and reportable segments:
________
1 Based on management estimates, including an assumption the SVP transaction closes on
Consolidated results for the three months ended
-
Sales decreased 1.6 percent to
$666 million driven primarily by lower volume atRevelyst Adventure Sports and divestitures within Revelyst Outdoor Performance, partially offset by increased price at The Kinetic Group and higher volume primarily driven by new product introductions at Revelyst Precision Sports Technology. -
Gross profit increased 1.2 percent to
$211 million due to improved inventory health and increased price atRevelyst Adventure Sports , divestitures within Revelyst Outdoor Performance and increased price at The Kinetic Group, partially offset by increased input costs for copper and powder at The Kinetic Group and lower volume atRevelyst Adventure Sports . - Operating expenses increased 9.5 percent driven primarily by increased incentive compensation and increased restructuring costs related to the GEAR Up initiative partially offset by lower selling, general and administrative costs at Revelyst primarily related to GEAR Up initiatives.
-
Operating income declined 13.3 percent to
$66 million and operating income margin decreased 133 basis points to 9.9 percent. Adjusted operating income was$88 million , down 3.6 percent. Adjusted operating income margin decreased 27 basis points to 13.2 percent. -
Net income decreased to
$42 million . Net income margin decreased to 6.3 percent. -
Adjusted EBITDA declined 4.4 percent to
$111 million . Adjusted EBITDA margin decreased 48 basis points to 16.7 percent. -
Diluted Earnings per Share (EPS) was
$0.71 , down 6.6 percent, compared with$0.76 in the prior fiscal year. Adjusted EPS increased to$1.03 , or up 7.3 percent, compared with$0.96 in the prior fiscal year. -
Year to date cash provided by operating activities was
$81 million , compared to$108 million in the prior fiscal year to date period. Year to date adjusted free cash flow was$111 million .
For the three months ended
Revelyst
-
Sales declined 3.9 percent to
$315 million driven by lower volume atRevelyst Adventure Sports and divestitures within Revelyst Outdoor Performance. The decline was partially offset by increased volume within Revelyst Precision Sports Technology. -
Gross profit increased 5.0 percent to
$98 million due to improved inventory health and increased price atRevelyst Adventure Sports and improved inventory health and divestitures at Revelyst Outdoor Performance, partially offset by lower volume atRevelyst Adventure Sports , manufacturing efficiency headwinds at Revelyst Outdoor Performance and increased discounting at Revelyst Precision Sports Technology. -
Operating income increased 67.1 percent to
$21 million due to higher gross profit and lower selling, general and administrative costs related to GEAR Up initiatives acrossRevelyst Adventure Sports and Revelyst Outdoor Performance, partially offset by decreased gross profit and increased selling, general and administrative costs at Revelyst Precision Sports Technology. Operating income margin increased 270 basis points to 6.6 percent. -
Adjusted EBITDA increased 25.8 percent to
$38 million . Adjusted EBITDA margin increased 286 basis points to 12.1 percent.
The Kinetic Group
-
Sales increased 0.5 percent to
$351 million , due to increased price. -
Gross profit declined 1.8 percent to
$113 million driven primarily by increased input costs of copper and powder, partially offset by increased price. -
Operating income decreased 5.7 percent to
$87 million due to lower gross profit and increased incentive compensation. Operating income margin decreased 163 basis points to 24.8 percent. -
Adjusted EBITDA decreased 5.1 percent to
$94 million . Adjusted EBITDA margin decreased 158 basis points to 26.7 percent.
Financial Update
“At Vista Outdoor, we delivered second quarter results in-line with our expectations and our fundamentals remained strong,” said
"We continue to prioritize a strong balance sheet and a healthy inventory position. During the quarter we saw Revelyst inventory decrease
“Given the recently announced sale of both The Kinetic Group and Revelyst businesses we have elected to withdraw our full year Fiscal Year 2025 guidance. Upon the sale of The Kinetic Group, that is expected to close prior to year-end 2024, Revelyst will become a publicly traded company under the stock ticker GEAR. The Revelyst sale to SVP is contingent on the completion of the CSG transaction and is expected to close by the end of
Earnings Conference Call Webcast Information
In light of the Company's pending sale of The Kinetic Group to CZECHOSLOVAK GROUP a.s., as well as its pending sale of Revelyst to
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.
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 operating expenses, adjusted operating income, adjusted operating income margin, 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 |
|
$ |
211,429 |
|
$ |
145,704 |
|
|
$ |
65,725 |
|
|
9.9 |
% |
|
$ |
255 |
|
|
$ |
(8,237 |
) |
|
$ |
(15,945 |
) |
|
27.6 |
% |
|
$ |
41,798 |
|
|
$ |
0.71 |
||
Post acquisition compensation |
|
|
— |
|
|
|
(68 |
) |
|
|
68 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
68 |
|
|
|
||||
Transaction costs |
|
|
— |
|
|
|
132 |
|
|
|
(132 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
32 |
|
|
|
|
|
(100 |
) |
|
|
||||
Loss on divestiture |
|
|
— |
|
|
|
(872 |
) |
|
|
872 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
1,473 |
|
|
|
|
|
2,345 |
|
|
|
||||
Gear Up restructuring |
|
|
— |
|
|
|
(7,093 |
) |
|
|
7,093 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,702 |
) |
|
|
|
|
5,391 |
|
|
|
||||
Planned separation costs |
|
|
— |
|
|
|
(14,358 |
) |
|
|
14,358 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(3,446 |
) |
|
|
|
|
10,912 |
|
|
|
||||
As adjusted |
|
$ |
211,429 |
|
|
$ |
123,445 |
|
|
$ |
87,984 |
|
|
13.2 |
% |
|
$ |
255 |
|
|
$ |
(8,237 |
) |
|
$ |
(19,588 |
) |
|
24.5 |
% |
|
$ |
60,414 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(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. |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
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 |
|
$ |
208,870 |
|
|
$ |
133,085 |
|
|
$ |
75,785 |
|
|
11.2 |
% |
|
$ |
(1,174 |
) |
|
$ |
(16,643 |
) |
|
$ |
(13,546 |
) |
|
23.4 |
% |
|
$ |
44,422 |
|
|
$ |
0.76 |
|
Post acquisition compensation |
|
|
— |
|
|
|
(160 |
) |
|
|
160 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
160 |
|
|
|
||||
Executive transition costs |
|
|
— |
|
|
|
(433 |
) |
|
|
433 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(218 |
) |
|
|
|
|
215 |
|
|
|
||||
Restructuring |
|
|
— |
|
|
|
(3,936 |
) |
|
|
3,936 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(945 |
) |
|
|
|
|
2,991 |
|
|
|
||||
Transition costs |
|
|
— |
|
|
|
(3,554 |
) |
|
|
3,554 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(854 |
) |
|
|
|
|
2,700 |
|
|
|
||||
Planned separation costs |
|
|
— |
|
|
|
(7,375 |
) |
|
|
7,375 |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,770 |
) |
|
|
|
|
5,605 |
|
|
|
||||
As adjusted |
|
$ |
208,870 |
|
|
$ |
117,627 |
|
|
$ |
91,243 |
|
13.5 |
% |
|
$ |
(1,174 |
) |
|
$ |
(16,643 |
) |
|
$ |
(17,333 |
) |
|
23.6 |
% |
|
$ |
56,093 |
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(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;
- loss on the divestiture of our Fiber Energy business;
- restructuring costs related to our GEAR Up transformation program, including severance costs, contract terminations related to location closures and professional fees; 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 independent, publicly traded companies, including restructuring, severance, advisory and legal fees; -
restructuring costs related to a
$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: post-acquisition compensation, transaction costs, executive transition costs, restructuring, GEAR Up restructuring, transition costs and planned separation costs.
|
|
Three months ended |
|
Six months ended |
||||||||
(in thousands) |
|
|
|
|
|
|
||||||
Cash provided by operating activities (as reported) |
|
$ |
26,778 |
|
|
$ |
80,543 |
|
|
$ |
107,540 |
|
Capital expenditures |
|
|
(7,739 |
) |
|
|
(10,023 |
) |
|
|
(13,425 |
) |
Free cash flow |
|
|
19,039 |
|
|
|
70,520 |
|
|
|
94,115 |
|
Post acquisition compensation |
|
|
84 |
|
|
|
167 |
|
|
|
166 |
|
Transaction costs |
|
|
587 |
|
|
|
615 |
|
|
|
— |
|
Executive transition costs |
|
|
— |
|
|
|
— |
|
|
|
3,474 |
|
Restructuring |
|
|
— |
|
|
|
— |
|
|
|
4,281 |
|
Gear Up restructuring |
|
|
6,821 |
|
|
|
14,512 |
|
|
|
— |
|
Transition costs |
|
|
64 |
|
|
|
230 |
|
|
|
6,665 |
|
Planned separation costs |
|
|
15,012 |
|
|
|
25,372 |
|
|
|
7,034 |
|
Adjusted free cash flow |
|
$ |
41,607 |
|
|
$ |
111,416 |
|
|
$ |
115,735 |
|
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) |
|
$ |
87,093 |
|
|
$ |
21,485 |
|
|
$ |
108,578 |
|
Depreciation and amortization |
|
|
6,627 |
|
|
|
16,120 |
|
|
|
22,747 |
|
Amortization of cloud computing software costs (2) |
|
|
36 |
|
|
|
535 |
|
|
|
571 |
|
Adjusted segment EBITDA |
|
$ |
93,756 |
|
|
$ |
38,140 |
|
|
$ |
131,896 |
|
Adjusted segment EBITDA margin |
|
|
26.7 |
% |
|
|
12.1 |
% |
|
|
||
|
|
|
|
|
|
|
||||||
|
|
Three months ended |
||||||||||
(in thousands except percentages) |
|
The Kinetic Group |
|
Revelyst |
|
Total |
||||||
Segment operating income (1) |
|
$ |
92,348 |
|
|
$ |
12,854 |
|
|
$ |
105,202 |
|
Depreciation and amortization |
|
|
6,458 |
|
|
|
17,473 |
|
|
|
23,931 |
|
Amortization of cloud computing software costs (2) |
|
|
36 |
|
|
|
457 |
|
|
|
493 |
|
Adjusted segment EBITDA |
|
$ |
98,842 |
|
|
$ |
30,784 |
|
|
$ |
129,626 |
|
Adjusted segment EBITDA margin |
|
|
28.3 |
% |
|
|
9.4 |
% |
|
|
||
(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 |
|
$ |
41,798 |
|
|
$ |
44,422 |
|
Other expense, net |
|
|
(255 |
) |
|
|
1,174 |
|
Interest expense, net |
|
|
8,237 |
|
|
|
16,643 |
|
Income tax provision |
|
|
15,945 |
|
|
|
13,546 |
|
Depreciation and amortization |
|
|
22,849 |
|
|
|
24,879 |
|
Amortization of cloud computing software costs |
|
|
544 |
|
|
|
324 |
|
Post acquisition compensation |
|
|
68 |
|
|
|
160 |
|
Transaction costs |
|
|
(132 |
) |
|
|
— |
|
Loss on divestiture |
|
|
872 |
|
|
|
— |
|
Gear Up restructuring |
|
|
7,093 |
|
|
|
— |
|
Transition costs |
|
|
— |
|
|
|
3,554 |
|
Planned separation costs |
|
|
14,358 |
|
|
|
7,375 |
|
Executive transition costs |
|
|
— |
|
|
|
433 |
|
Restructuring |
|
|
— |
|
|
|
3,936 |
|
Adjusted EBITDA |
|
$ |
111,377 |
|
|
$ |
116,446 |
|
Adjusted EBITDA margin |
|
|
16.7 |
% |
|
|
17.2 |
% |
Segment Income to Consolidated Net Income Reconciliation |
||||||||
|
|
Three months ended |
||||||
(in thousands) |
|
|
|
|
||||
Segment income |
|
$ |
108,578 |
|
|
$ |
105,202 |
|
Corporate costs and expenses (1) |
|
|
(42,853 |
) |
|
|
(29,417 |
) |
Operating income |
|
$ |
65,725 |
|
|
$ |
75,785 |
|
Other expense, net |
|
|
255 |
|
|
|
(1,174 |
) |
Interest expense, net |
|
|
(8,237 |
) |
|
|
(16,643 |
) |
Income tax provision |
|
|
(15,945 |
) |
|
|
(13,546 |
) |
Net Income |
|
$ |
41,798 |
|
|
$ |
44,422 |
|
|
|
|
|
|
||||
(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 |
|
$ |
590,000 |
|
|
$ |
720,000 |
|
Less: Cash |
|
|
(36,925 |
) |
|
|
(60,271 |
) |
Net Debt |
|
$ |
553,075 |
|
|
$ |
659,729 |
|
(in thousands except ratio) |
|
Twelve months ended
|
|
Twelve months ended
|
||||
Net loss |
|
$ |
(9,109 |
) |
|
$ |
(5,505 |
) |
Other expense, net |
|
|
95 |
|
|
|
1,988 |
|
Interest expense, net |
|
|
47,746 |
|
|
|
62,949 |
|
Income tax benefit |
|
|
(9,497 |
) |
|
|
(8,979 |
) |
Depreciation and amortization |
|
|
96,026 |
|
|
|
99,291 |
|
Amortization of cloud computing software costs |
|
|
2,803 |
|
|
|
2,363 |
|
Post acquisition compensation |
|
|
296 |
|
|
|
1,328 |
|
Transaction costs |
|
|
802 |
|
|
|
755 |
|
Gain on divestitures |
|
|
(18,787 |
) |
|
|
— |
|
Contingent consideration |
|
|
5,888 |
|
|
|
5,888 |
|
Executive transition costs |
|
|
250 |
|
|
|
1,342 |
|
Impairment |
|
|
226,406 |
|
|
|
220,070 |
|
Restructuring |
|
|
1,636 |
|
|
|
5,604 |
|
Gear Up restructuring |
|
|
19,761 |
|
|
|
8,279 |
|
Transition costs |
|
|
1,655 |
|
|
|
7,310 |
|
Planned separation costs |
|
|
59,016 |
|
|
|
42,179 |
|
Adjusted EBITDA |
|
$ |
424,987 |
|
|
$ |
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 CSG 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 CSG Transaction. In connection with the CSG Transaction, Revelyst, a subsidiary of
Participants in Solicitation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (preliminary and unaudited) |
||||||||||||||||
|
|
Three months ended |
|
Six months ended |
||||||||||||
(Amounts in thousands except per share data) |
|
|
|
|
|
|
|
|
||||||||
Sales, net |
|
$ |
665,915 |
|
|
$ |
676,808 |
|
|
$ |
1,310,096 |
|
|
$ |
1,370,141 |
|
Cost of sales |
|
|
454,486 |
|
|
|
467,938 |
|
|
|
887,510 |
|
|
|
934,514 |
|
Gross profit |
|
|
211,429 |
|
|
|
208,870 |
|
|
|
422,586 |
|
|
|
435,627 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
11,284 |
|
|
|
12,203 |
|
|
|
23,723 |
|
|
|
24,283 |
|
Selling, general, and administrative |
|
|
133,548 |
|
|
|
120,882 |
|
|
|
270,897 |
|
|
|
243,373 |
|
(Gain) loss on divestitures |
|
|
872 |
|
|
|
— |
|
|
|
(18,787 |
) |
|
|
— |
|
Operating income |
|
|
65,725 |
|
|
|
75,785 |
|
|
|
146,753 |
|
|
|
167,971 |
|
Other income (expense), net |
|
|
255 |
|
|
|
(1,174 |
) |
|
|
178 |
|
|
|
(1,715 |
) |
Interest expense, net |
|
|
(8,237 |
) |
|
|
(16,643 |
) |
|
|
(17,658 |
) |
|
|
(32,861 |
) |
Income before income taxes |
|
|
57,743 |
|
|
|
57,968 |
|
|
|
129,273 |
|
|
|
133,395 |
|
Income tax provision |
|
|
(15,945 |
) |
|
|
(13,546 |
) |
|
|
(30,355 |
) |
|
|
(30,873 |
) |
Net income |
|
$ |
41,798 |
|
|
$ |
44,422 |
|
|
$ |
98,918 |
|
|
$ |
102,522 |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.72 |
|
|
$ |
0.77 |
|
|
$ |
1.69 |
|
|
$ |
1.78 |
|
Diluted |
|
$ |
0.71 |
|
|
$ |
0.76 |
|
|
$ |
1.68 |
|
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
58,410 |
|
|
|
58,041 |
|
|
|
58,361 |
|
|
|
57,757 |
|
Diluted |
|
|
58,786 |
|
|
|
58,299 |
|
|
|
58,714 |
|
|
|
58,426 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (preliminary and unaudited) |
||||||||
(Amounts in thousands except share data) |
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
36,925 |
|
|
$ |
60,271 |
|
Net receivables |
|
|
376,206 |
|
|
|
355,903 |
|
Net inventories |
|
|
612,847 |
|
|
|
609,999 |
|
Income tax receivable |
|
|
11,049 |
|
|
|
9,113 |
|
Other current assets |
|
|
45,632 |
|
|
|
39,836 |
|
Total current assets |
|
|
1,082,659 |
|
|
|
1,075,122 |
|
Net property, plant, and equipment |
|
|
177,283 |
|
|
|
201,864 |
|
Operating lease assets |
|
|
97,726 |
|
|
|
107,007 |
|
|
|
|
318,251 |
|
|
|
318,251 |
|
Net intangible assets |
|
|
600,861 |
|
|
|
627,636 |
|
Deferred income tax assets |
|
|
13,009 |
|
|
|
12,895 |
|
Deferred charges and other non-current assets, net |
|
|
63,844 |
|
|
|
59,605 |
|
Total assets |
|
$ |
2,353,633 |
|
|
$ |
2,402,380 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
158,198 |
|
|
$ |
163,411 |
|
Accrued compensation |
|
|
52,345 |
|
|
|
56,983 |
|
Federal excise, use, and other taxes |
|
|
34,266 |
|
|
|
35,552 |
|
Other current liabilities |
|
|
128,148 |
|
|
|
129,352 |
|
Total current liabilities |
|
|
372,957 |
|
|
|
385,298 |
|
Long-term debt |
|
|
587,519 |
|
|
|
717,238 |
|
Long-term operating lease liabilities |
|
|
96,904 |
|
|
|
105,699 |
|
Accrued pension and postemployment benefits |
|
|
18,572 |
|
|
|
22,866 |
|
Other long-term liabilities |
|
|
45,966 |
|
|
|
44,982 |
|
Total liabilities |
|
|
1,121,918 |
|
|
|
1,276,083 |
|
|
|
|
|
|
||||
Common stock—$.01 par value: |
|
|
|
|
||||
Authorized—500,000,000 shares |
|
|
|
|
||||
Issued and outstanding—58,425,417 shares as of |
|
|
584 |
|
|
|
582 |
|
Additional paid-in-capital |
|
|
1,651,441 |
|
|
|
1,653,089 |
|
Accumulated deficit |
|
|
(137,115 |
) |
|
|
(236,033 |
) |
Accumulated other comprehensive loss |
|
|
(73,454 |
) |
|
|
(74,348 |
) |
Common stock in treasury, at cost—5,539,022 shares held as of |
|
|
(209,741 |
) |
|
|
(216,993 |
) |
Total stockholders' equity |
|
|
1,231,715 |
|
|
|
1,126,297 |
|
Total liabilities and stockholders' equity |
|
$ |
2,353,633 |
|
|
$ |
2,402,380 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (preliminary and unaudited) |
||||||||
|
|
Six months ended |
||||||
(Amounts in thousands) |
|
|
|
|
||||
Operating Activities |
|
|
|
|
||||
Net income |
|
$ |
98,918 |
|
|
$ |
102,522 |
|
Adjustments to net income to arrive at cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
21,576 |
|
|
|
24,470 |
|
Amortization of intangible assets |
|
|
24,965 |
|
|
|
25,336 |
|
Amortization of deferred financing costs |
|
|
1,529 |
|
|
|
4,154 |
|
Impairment of long-lived assets |
|
|
8,043 |
|
|
|
2,802 |
|
Gain on sale of business |
|
|
(18,787 |
) |
|
|
— |
|
Deferred income taxes |
|
|
(154 |
) |
|
|
514 |
|
Gain on foreign exchange |
|
|
(302 |
) |
|
|
(240 |
) |
Loss on disposal of property, plant, and equipment |
|
|
419 |
|
|
|
69 |
|
Share-based compensation |
|
|
8,145 |
|
|
|
2,680 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Net receivables |
|
|
(20,537 |
) |
|
|
(57,128 |
) |
Net inventories |
|
|
(19,920 |
) |
|
|
13,541 |
|
Accounts payable |
|
|
(7,649 |
) |
|
|
(5,104 |
) |
Accrued compensation |
|
|
(3,915 |
) |
|
|
(8,859 |
) |
Accrued income taxes |
|
|
711 |
|
|
|
(17,125 |
) |
Federal excise, use, and other taxes |
|
|
(1,290 |
) |
|
|
(5,027 |
) |
Pension and other postretirement benefits |
|
|
(2,808 |
) |
|
|
685 |
|
Other assets and liabilities |
|
|
(8,401 |
) |
|
|
24,250 |
|
Cash provided by operating activities |
|
|
80,543 |
|
|
|
107,540 |
|
Investing Activities |
|
|
|
|
||||
Capital expenditures |
|
|
(10,023 |
) |
|
|
(13,425 |
) |
Proceeds from the sale of businesses |
|
|
39,538 |
|
|
|
— |
|
Asset acquisition |
|
|
(263 |
) |
|
|
— |
|
Proceeds from the disposition of property, plant, and equipment |
|
|
— |
|
|
|
137 |
|
Cash provided by (used for) investing activities |
|
|
29,252 |
|
|
|
(13,288 |
) |
Financing Activities |
|
|
|
|
||||
Proceeds from credit facility |
|
|
103,000 |
|
|
|
102,000 |
|
Repayments of credit facility |
|
|
(233,000 |
) |
|
|
(162,000 |
) |
Payments on long-term debt |
|
|
— |
|
|
|
(55,000 |
) |
Payments made for debt issue costs and prepayment premiums |
|
|
— |
|
|
|
(60 |
) |
Proceeds from exercise of stock options |
|
|
36 |
|
|
|
39 |
|
Payments made for contingent consideration |
|
|
(750 |
) |
|
|
(8,585 |
) |
Payment of employee taxes related to vested stock awards |
|
|
(3,300 |
) |
|
|
(16,200 |
) |
Cash used for financing activities |
|
|
(134,014 |
) |
|
|
(139,806 |
) |
Effect of foreign currency exchange rate fluctuations on cash |
|
|
873 |
|
|
|
(700 |
) |
Decrease in cash and cash equivalents |
|
|
(23,346 |
) |
|
|
(46,254 |
) |
Cash and cash equivalents at beginning of period |
|
|
60,271 |
|
|
|
86,208 |
|
Cash and cash equivalents at end of period |
|
$ |
36,925 |
|
|
$ |
39,954 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106481278/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: