- Record Fiscal Year Sales Surpassing $3 Billion, up 37%, Record GAAP EPS of
$8.00 and Adjusted EPS of
$8.29
- Sporting Products Sales Increase 55% and Outdoor Products
Sales Rise 18% in FY22
- Fiscal Year EBIT and EBITDA Margins Increase to 21% and 24%,
Respectively, Above 3-Year Targets
- Net Debt Leverage Ratio Improves to 0.9x, Below Target
Leverage Ratio of 1-2x
- Introduces Fiscal Year 2023 Outlook; Expects Sales Growth of
5% at the Midpoint
ANOKA,
Minn., May 5,
2022 /PRNewswire/ -- Vista Outdoor Inc. (NYSE:
VSTO) today reported operating results for the fourth quarter and
Fiscal Year 2022 (FY22), which ended on March 31, 2022.
"The fourth quarter marked our seventh straight quarter of
record-breaking financial results," said Chris Metz, Chief Executive Officer. "Once
again, our results were supported by outstanding performance across
our portfolio of iconic brands, including the seven new brands
acquired over the past 24 months. Upstart innovators QuietKat and
Foresight Sports benefited from our corporate model that empowers
founders while leveraging shared resources to realize benefits out
of reach if on their own. Federal, which just weeks ago celebrated
its 100th anniversary, continued to perform well across all
calibers, sales channels and with end-consumers who are more
diverse and active. The results delivered by our portfolio of
businesses, both legacy and new, demonstrate our ability to enhance
the performance of outdoor brands regardless of where they fall in
the growth and maturity curve. Looking ahead, Vista Outdoor remains
well-positioned to continue to capitalize on today's positive
consumer trends. Underlying demand in outdoor recreation remains
strong, despite the current macroeconomic headwinds, and we begin
fiscal 2023 with positive momentum, from our balance sheet to our
leverage ratio to our powerhouse portfolio of brands.
"Today, we also announced a very important strategic step for
Vista Outdoor that we believe will unlock significant value for our
shareholders and our brands. After a thorough assessment of
our business and value creation opportunities, our Board approved a
plan to separate our Outdoor Products and Sporting Products
segments into two independent, publicly-traded companies. We're
confident we've built two strong businesses that are
well-positioned for continued growth and success as independent
companies. We are very excited to enter this new chapter of growth
for the Company and remain committed to continuing to deliver value
to our shareholders in the near and long-term."
For the three months ended March 31, 2022 versus the
three months ended March 31, 2021:
- Sales reached a record of $809
million, up 36 percent, driven by strong demand across both
Sporting Products and Outdoor Products segments as well as
acquisitions, new product innovation and pricing.
- Gross profit increased to $287
million, up 58 percent, primarily due to higher sales,
favorable pricing and mix and operating leverage.
- Operating expenses were $135
million, up 32 percent, driven primarily by acquisitions and
increased sales and marketing expenses to support higher sales
including the return to customer events such as trade shows.
Operating leverage improved 43 basis points to 16.6 percent.
- Earnings before interest and taxes (EBIT) increased to
$153 million, compared with
$74 million in the prior year
quarter. EBIT margins increased nearly 700 basis points to 18.9
percent. Adjusted EBIT was $160
million, up 99 percent. Adjusted EBIT margins rose more than
600 basis points to 19.8 percent.
- Diluted earnings per share (EPS) increased to $1.93, compared with $1.11 in the prior year quarter. Adjusted EPS
rose to $2.04, compared with
$1.02 in the prior year quarter,
primarily driven by higher sales, gross margin expansion and
operating leverage, partially offset by higher taxes.
For the three months ended March 31, 2022 segment
results versus the three months ended March 31,
2021:
Sporting Products
- Sales increased to $464 million,
up 56 percent, driven by strong demand, increased volume from the
Remington acquisition and favorable pricing and mix.
- Gross profit rose to $183
million, up 98 percent. Margin expansion was driven by
improved pricing, volume and mix as well as operating leverage from
higher volume and operating efficiencies, partially offset by
higher input costs.
- EBIT expanded 128 percent to $151
million.
Outdoor Products
- Sales rose 15 percent to $345
million, led by double-digit growth across Outdoor
Recreation including growth in Action Sports and Outdoor
Accessories.
- Gross profit increased to $106
million, up 16 percent driven primarily by the acquisitions
of Foresight Sports and QuietKat, partially offset by higher
logistics and input costs.
- EBIT was $37 million, down 11
percent, due to higher logistics and input costs as well as higher
selling and marketing expenses reflecting a return to travel and
event participation, including trade shows, compared to the same
period last year.
For the twelve months ended March 31, 2022 versus the
twelve months ended March 31, 2021:
- Sales rose 37 percent to more than $3
billion driven by strong consumer demand across both
segments and acquisitions.
- Gross profit increased 75 percent to $1.1 billion due to higher pricing, volume and
mix, partially offset by higher logistics and input costs.
- Operating expenses increased 29 percent driven primarily by
acquisitions while operating leverage improved 101 basis points to
15 percent due primarily from operating efficiencies.
- EBIT rose 127 percent to $646
million and EBIT margin expanded 842 basis points to 21.2
percent. Adjusted EBIT margin increased 933 basis points to nearly
22 percent.
- EPS increased to $8.00, compared
with $4.44 in the prior fiscal year.
Adjusted EPS rose to $8.29, or up 127
percent, compared with $3.66 in the
prior fiscal year.
- Cash flow provided by operating activities was $318 million, compared to $345 million in the prior fiscal year. Free cash
flow generation was $292
million.
For the twelve months ended March 31, 2022 segment
results versus the twelve months ended March 31,
2021:
Sporting Products
- Sales increased 55 percent to $1.7
billion, driven by the acquisitions of Remington and
HEVI-Shot, strong consumer demand and favorable pricing and
mix.
- Gross profit rose 128 percent to $712
million driven primarily by higher pricing, volume and mix
as well as operating leverage from efficiencies.
- EBIT increased 170 percent to $600
million.
Outdoor Products
- Sales rose 18 percent to $1.3
billion driven primarily by strong consumer demand and
acquisitions reflecting double-digit growth across Outdoor
Recreation, Action Sports and Outdoor Accessories.
- Gross profit increased 24 percent to $399 million due largely to acquisitions as well
as organic growth, partially offset by higher logistics and input
costs.
- EBIT rose 19 percent to $164
million.
The Company will provide additional information in its Form
10-K, which will be filed this month.
Fiscal Year 2023 Outlook
"Following two consecutive
years of record performance, we continue to experience strong
demand across our diverse portfolio of leading brands, driven in
part by lifestyle shifts to spending more quality time outdoors,"
said Sudhanshu Priyadarshi, Chief
Financial Officer. "Our fiscal year 2023 guidance reflects
these favorable consumer trends while also taking into
consideration headwinds related to inflation and supply chain
dislocation that we expect to continue for the foreseeable
future. That said, we are in a strong financial position with
a solid balance sheet and a net debt leverage ratio less than 1.0x
following five acquisitions in FY22 as well as ample
liquidity. Vista Outdoor is well positioned to continue to
drive growth and long-term shareholder value."
Vista Outdoor Establishes Fiscal Year 2023 Financial
Guidance
The company expects:
- Sales in a range of $3,150
million to $3,250 million, up
5 percent at the midpoint (excludes future acquisitions)
-
- Sporting Products sales growth in the mid-single digit
range
- Outdoor Products sales growth in the high-single digit
range
- Adjusted EBITDA range of 20.5 percent to 21.5 percent
- Adjusted earnings per Share (EPS) in a range of $7.00 to $7.75
- Free Cash Flow in a range of $300
million to $350 million
- Effective tax rate of approximately 24 percent
- Interest expenses in the range of $25
million to $30 million
- R&D expenditure growth in the range of 35 percent to 40
percent
- Capital expenditures as a percent of sales of 1-2 percent
For Q1 FY23, the company expects:
- Sales in a range of $770 million
to $790 million, up 17.7 percent at
the midpoint
- Adjusted EBITDA range of 22 percent to 22.5 percent
- Adjusted EPS between $1.85 to
$1.95
Please see the tables in the press release for a reconciliation
of non-GAAP operating expense, EBIT, taxes, net income, earnings
per share, and free cash flow to the comparable GAAP measures.
Share Repurchases
During fiscal year 2022, the Company
repurchased 2,980,681 shares for a total of $113 million equating to an average share price
of $37.97.
Earnings Conference Call Webcast Information
Vista
Outdoor will hold an investor conference call to discuss its
business operations, FY22 financial results, and an update on its
business outlook on May 5, 2022, at
9 a.m. ET. The conference call will
be accessible through live webcast. Interested investors and other
individuals can access the webcast and view and/or download the
earnings press release, including a reconciliation of non-GAAP
financial measures, and the related earnings release presentation
slides, which will also include detailed segment information, via
Vista Outdoor's website (www.vistaoutdoor.com). Choose "Investors"
then "Events and Presentations". For those who cannot participate
in the live webcast, a telephone recording of the conference call
will be available until June 2,
2022. The telephone number is (866) 813-9403 and the access
code is 652135.
Reconciliation of Non-GAAP 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 other
income (expense), adjusted earnings before interest and tax (EBIT),
adjusted interest, adjusted taxes, adjusted net income, and
adjusted fully diluted earnings per share (EPS). Vista Outdoor
defines these measures as, gross profit, operating expenses, other
income (expense), EBIT, interest, taxes, net income, and EPS
excluding, where applicable, the impact of costs incurred for
inventory step-up, transaction costs, debt refinancing and
extinguishment, contingent consideration, transition costs,
post-acquisition compensation, gain on sales of business, and
release of tax valuation allowance. Vista Outdoor management is
presenting these measures so a reader may compare gross profit,
operating expenses, other income (expense), EBIT, interest, taxes,
net income, and EPS excluding these items, as the measures provide
investors with an important perspective on the operating results of
the Company. Vista Outdoor management uses this measurement
internally to assess business performance, and Vista Outdoor's
definition may differ from those used by other companies.
Three months
ended March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands except
per share amounts)
|
|
Gross
Profit
|
|
Operating
Expenses
|
|
Other
Income /
(Expense)
|
|
EBIT
|
|
Interest
Expense
|
|
Taxes
|
|
Net
Income
|
|
EPS
|
|
As reported
|
|
$
287,414
|
|
$
134,534
|
|
$
—
|
|
$
152,880
|
|
$
(6,962)
|
|
$
(33,094)
|
|
$
112,824
|
|
$
1.93
|
|
Inventory step-up
expense
|
|
744
|
|
—
|
|
—
|
|
744
|
|
—
|
|
(186)
|
|
558
|
|
0.01
|
|
Transaction
cost
|
|
—
|
|
(1,776)
|
|
—
|
|
1,776
|
|
—
|
|
(285)
|
|
1,491
|
|
0.03
|
|
Transition
costs
|
|
—
|
|
(608)
|
|
—
|
|
608
|
|
—
|
|
(152)
|
|
456
|
|
0.01
|
|
Post-acquisition
compensation
|
|
—
|
|
(4,415)
|
|
—
|
|
4,415
|
|
—
|
|
(665)
|
|
3,750
|
|
0.06
|
|
As adjusted
|
|
$
288,158
|
|
$
127,735
|
|
$
—
|
|
$
160,423
|
|
$
(6,962)
|
|
$
(34,382)
|
|
$
119,079
|
|
$
2.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands except
per share amounts)
|
|
Gross
Profit
|
|
Operating
Expenses
|
|
Other
Income /
(Expense)
|
|
EBIT
|
|
Interest
Expense
|
|
Taxes
|
|
Net
Income
|
|
EPS
|
|
As reported
|
|
$
182,470
|
|
$
101,788
|
|
$
(6,471)
|
|
$
74,211
|
|
$
(7,822)
|
|
$
623
|
|
$
67,012
|
|
$
1.11
|
|
Inventory step-up
expense
|
|
290
|
|
—
|
|
—
|
|
290
|
|
—
|
|
(69)
|
|
221
|
|
—
|
|
Transaction
cost
|
|
—
|
|
708
|
|
—
|
|
(708)
|
|
—
|
|
170
|
|
(538)
|
|
(0.01)
|
|
Debt refinancing and
extinguishment
|
|
—
|
|
—
|
|
6,471
|
|
6,471
|
|
1,364
|
|
(1,880)
|
|
5,955
|
|
0.10
|
|
Transition
costs
|
|
—
|
|
(479)
|
|
—
|
|
479
|
|
—
|
|
(115)
|
|
364
|
|
0.01
|
|
Release of tax
valuation allowance
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,625)
|
|
(11,625)
|
|
(0.19)
|
|
As adjusted
|
|
$
182,760
|
|
$
102,017
|
|
$
—
|
|
$
80,743
|
|
$
(6,458)
|
|
$
(12,896)
|
|
$
61,389
|
|
$
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year ended
March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands except
per share amounts)
|
|
Gross
Profit
|
|
Operating
Expenses
|
|
Other
Income /
(Expense)
|
|
EBIT
|
|
Interest
Expense
|
|
Taxes
|
|
Net
Income
|
|
EPS
|
|
As reported
|
|
$
1,109,232
|
|
$
463,010
|
|
$
—
|
|
$
646,222
|
|
$
(25,264)
|
|
$
(147,732)
|
|
$
473,226
|
|
$
8.00
|
|
Inventory step-up
expense
|
|
2,375
|
|
—
|
|
—
|
|
2,375
|
|
—
|
|
(594)
|
|
1,781
|
|
0.03
|
|
Transaction
costs
|
|
—
|
|
(6,816)
|
|
—
|
|
6,816
|
|
—
|
|
(1,417)
|
|
5,399
|
|
0.09
|
|
Contingent
consideration
|
|
—
|
|
(956)
|
|
—
|
|
956
|
|
—
|
|
(55)
|
|
901
|
|
0.02
|
|
Transition
costs
|
|
—
|
|
(1,390)
|
|
—
|
|
1,390
|
|
—
|
|
(348)
|
|
1,042
|
|
0.02
|
|
Post-acquisition
compensation
|
|
—
|
|
(8,987)
|
|
—
|
|
8,987
|
|
—
|
|
(1,049)
|
|
7,938
|
|
0.13
|
|
As adjusted
|
|
$
1,111,607
|
|
$
444,861
|
|
$
—
|
|
$
666,746
|
|
$
(25,264)
|
|
$
(151,195)
|
|
$
490,287
|
|
$
8.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year ended
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands except
per share amounts)
|
|
Gross
Profit
|
|
Operating
Expenses
|
|
Other
Income /
(Expense)
|
|
EBIT
|
|
Interest
Expense
|
|
Taxes
|
|
Net
Income
|
|
EPS
|
|
As reported
|
|
$
632,960
|
|
$
359,998
|
|
$
11,996
|
|
$
284,958
|
|
$
(25,574)
|
|
$ 6,628
|
|
$
266,012
|
|
$
4.44
|
|
Inventory step-up
expense
|
|
690
|
|
—
|
|
—
|
|
690
|
|
—
|
|
(165)
|
|
525
|
|
0.01
|
|
Transaction
cost
|
|
—
|
|
(4,957)
|
|
—
|
|
4,957
|
|
—
|
|
(1,190)
|
|
3,767
|
|
0.06
|
|
Debt refinancing and
extinguishment
|
|
—
|
|
—
|
|
6,471
|
|
6,471
|
|
1,364
|
|
(1,880)
|
|
5,955
|
|
0.10
|
|
Gain on sale of
business
|
|
—
|
|
—
|
|
(18,467)
|
|
(18,467)
|
|
—
|
|
4,432
|
|
(14,035)
|
|
(0.23)
|
|
Transition
costs
|
|
—
|
|
(1,118)
|
|
—
|
|
1,118
|
|
—
|
|
(268)
|
|
850
|
|
0.01
|
|
Release of tax
valuation allowance
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(44,101)
|
|
(44,101)
|
|
(0.74)
|
|
As adjusted
|
|
$
633,650
|
|
$
353,923
|
|
$
—
|
|
$
279,727
|
|
$
(24,210)
|
|
$
(36,544)
|
|
$
218,973
|
|
$
3.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*NOTE: Adjustments
to "as reported" results are items that are excluded from reported
GAAP results to arrive at the "as adjusted" results for the
quarters and years ended March 31, 2022 and 2021. EPS amounts may
not foot due to rounding.
|
|
Fiscal Year 2022 Adjustments
During the three months ended March 31,
2022, we incurred cost of goods sold related to the fair
value step-up in inventory from the Stone Glacier acquisition
purchase price allocation. During the year ended March 31, 2022, we incurred cost of goods sold
related to the fair value step-up in inventory from the Stone
Glacier, Foresight and HEVI-Shot purchase price allocations.
The entire amounts were expensed over the first inventory cycle.
Given the infrequent and unique nature of these acquisitions, the
company feels these costs are not indicative of ongoing operations.
The tax effect of the expense was calculated based on a blended
statutory rate of approximately 25 percent.
During the three months and year ended March 31, 2022, we incurred transaction costs
associated with possible and actual transactions, including
advisory and legal fees. Given the nature of transaction costs, and
differences in these amounts from one transaction to another, the
company believes these costs are not indicative of ongoing
operations of the company. A portion of the transaction costs are
not deductible for tax and we applied a 0 percent blended tax rate
and the portion that is deductible we applied a blended tax rate of
25 percent.
During the year ended March 31,
2022, we recognized non-cash expenses for the change in the
estimated fair value of the contingent consideration payable
related to our QuietKat and HEVI-Shot acquisitions. Given the
infrequent and unique nature of these acquisitions, the company
believes these costs are not indicative of ongoing operations. A
portion of the contingent consideration costs are not deductible
for tax and we applied a 0 percent blended tax rate and the portion
that is deductible we applied a blended tax rate of 25 percent.
During the three months and year ended March 31, 2022, we incurred transition costs for
our Stone Glacier, Foresight, Fiber Energy, Remington, and QuietKat
businesses to integrate into the company such as severance,
retention, professional fees and travel costs. Given the infrequent
and unique nature of these acquisitions, the company believes these
costs are not indicative of ongoing operations. The tax effect of
the transition costs that are deductible for tax was calculated
based on a blended tax rate of approximately 25 percent.
During the three months and year ended March 31, 2022, we incurred post-acquisition
compensation expense related to employee retention payments in
connection with the Stone Glacier, Foresight, QuietKat and Venor
acquisitions. Given the infrequent and unique nature of these
acquisitions, we believe these costs are not indicative of ongoing
operations. A portion of the post-acquisition compensation expenses
are not deductible for tax and we applied a 0 percent blended tax
rate and the portion that is deductible we applied a blended tax
rate of 25.
During the three months ended March 31,
2022, our reported tax (expense) benefit of $(33,094) results in a tax rate of 23 percent and
our adjusted tax (expense) benefit of $(34,382) results in an adjusted tax rate of 22
percent.
During the full year ended March 31,
2022, our reported tax (expense) benefit of $(147,732) results in a tax rate of 24 percent
and our adjusted tax (expense) benefit of $(151,195) results in an adjusted tax rate of 24
percent.
Fiscal Year 2021 Adjustments
During the three months and year ended March 31, 2021, we incurred cost of goods sold
related to the fair value step-up in inventory allocated from the
Remington and HEVI-Shot acquisition purchase price allocation. The
entire amount was expensed over the first inventory cycle. Given
the infrequent and unique nature of this acquisition, the Company
believes these costs are not indicative of ongoing operations. The
tax effect of the amortization expense that is deductible for tax
was calculated based on a blended statutory rate of approximately
24 percent.
During the three months and year ended March 31, 2021, we incurred transaction costs
associated with possible and actual transactions, including
advisory and legal fees. Given the nature of transaction costs, and
differences in these amounts from one transaction to another, the
Company feels these costs are not indicative of ongoing operations
of the Company. The tax effect of the transaction costs that are
deductible for tax was calculated based on a blended statutory rate
of approximately 24 percent.
During the three months and year ended March 31, 2021, we incurred transition costs to
integrate the Remington and HEVI-Shot businesses into the Company
such as severance, retention, professional fees, and travel costs.
Given the infrequent and unique nature of these acquisitions, the
Company believes these costs are not indicative of ongoing
operations. The tax effect of the transition costs that are
deductible for tax was calculated based on a blended statutory rate
of approximately 24 percent.
During the three months and year ended March 31, 2021, in connection with the
refinancing of the 2018 ABL Revolving Credit Facility, unamortized
debt issuance costs were written off. During the same periods, we
redeemed in full, all of the outstanding aggregate principal amount
of our 5.875% Notes. We recorded a loss on extinguishment of debt
as a result of this redemption, which represents the premium paid
on early redemption and unamortized debt issuance costs. Given the
infrequent and unique nature of these costs, the company believes
these costs are not indicative of ongoing operations of the
Company. The tax effect of the transaction costs was calculated
based on a blended statutory rate of approximately 24 percent.
During the three months ended March 31,
2021, we reduced the tax valuation allowance by $11,625 to recognize the utilization of available
tax assets to offset otherwise payable taxes. The tax assets arise
from tax losses and other tax attributes that could not be realized
in the then contemporaneous periods. Given the infrequent and
unique nature of this tax situation, we do not believe the
$11,625 reduction in tax expense is
indicative of operations of the Company.
During the three months ended March 31,
2021, our reported tax (expense) benefit of $623 results in a tax rate of negative 1 percent
and our adjusted tax (expense) benefit of $(12,896) results in an adjusted tax rate of 17
percent.
During the year ended March 31,
2021, we recognized a pretax gain on a divestiture of
approximately $18,467. Given the
infrequent and unique nature of this divestiture, the Company
believes these costs are not indicative of ongoing operations. The
tax effect on the pretax gain was calculated based on a blended
statutory rate of approximately 24 percent.
During the year ended March 31,
2021, we reduced the tax valuation allowance by $44,101 to recognize the utilization of available
tax assets to offset otherwise payable taxes. This was also
driven by capital gains related to a divestiture and tax-effected
operating loss, credits, and interest deduction carry forwards
utilized under the provisions of the Coronavirus Aid, Relief, and
Economic Security Act (CARES ACT). The tax assets arise from
tax losses and other tax attributes that could not be realized in
the then contemporaneous periods. Given the infrequent and unique
nature of this tax situation, we do not believe the $44,101 reduction in tax expense is indicative of
operations of the company.
As noted above, our full year reported tax (expense) benefit of
$6,628 results in a tax rate of
negative 3 percent and our adjusted tax (expense) benefit of
$(36,544) results in an adjusted tax
rate of 14 percent.
Free Cash Flow
Free cash flow is defined as cash
provided by operating activities less capital expenditures, and
excluding the following costs which have been adjusted for
applicable tax amounts: inventory step-up, transaction and
transition costs paid to date, contingent consideration, debt
refinancing and extinguishment, and post-acquisition compensation.
Vista Outdoor management believes free cash flow provides investors
with an important perspective on the cash available for debt
repayment, share repurchases and acquisitions after making the
capital investments required to support ongoing business
operations. Vista Outdoor management uses free cash flow internally
to assess both business performance and overall liquidity.
(in
thousands)
|
|
Year ended
March 31, 2022
|
|
Year ended
March 31, 2021
|
|
Projected Year
Ending
March 31, 2023
|
|
Cash provided by
operating activities (as reported)
|
|
$
318,311
|
|
$
345,374
|
|
$331,500 -
415,000
|
|
Capital
expenditures
|
|
(42,782)
|
|
(30,166)
|
|
~(31,500 -
65,000)
|
|
Inventory
step-up
|
|
(594)
|
|
(165)
|
|
—
|
|
Transaction
costs
|
|
4,269
|
|
3,767
|
|
—
|
|
Contingent
consideration
|
|
(55)
|
|
—
|
|
—
|
|
Transition
costs
|
|
741
|
|
850
|
|
—
|
|
Debt refinancing and
extinguishment
|
|
—
|
|
(1,880)
|
|
—
|
|
Post acquisition
compensation
|
|
12,118
|
|
—
|
|
—
|
|
Free cash
flow
|
|
$
292,008
|
|
$
317,780
|
|
$300,000 -
350,000
|
|
|
|
|
|
|
|
|
|
EBITDA Margin
EBITDA margin is defined as EBITDA (earnings before interest,
taxation, depreciation and amortization) divided by net sales.
Vista Outdoor management believes EBITDA margin provides investors
with an important perspective on the Company's core profitability
and helps investors analyze underlying trends in the Company's
business and evaluate its performance on an absolute basis and
relative to its peers. EBITDA margin should be considered in
addition to, and not as a substitute for, GAAP net profit margin.
Vista Outdoor's definition may differ from that used by other
companies.
Vista Outdoor has not reconciled EBITDA margin guidance to GAAP
net profit margin guidance because Vista Outdoor does not provide
guidance for net income, which is a reconciling item between GAAP
net profit margin and non-GAAP EBITDA margin. Accordingly, a
reconciliation to net profit margin is not available without
unreasonable effort.
About Vista Outdoor Inc.
Vista Outdoor is a global designer, manufacturer and marketer of
consumer products in the outdoor sports and recreation markets. The
Company has a portfolio of well-recognized brands that provides
consumers with a wide range of performance-driven, high-quality and
innovative products for individual outdoor recreational pursuits.
Vista Outdoor products are sold at leading retailers and
distributors across North America and worldwide. For news
and information, visit www.vistaoutdoor.com or follow us
on Twitter @VistaOutdoorInc and Facebook at
www.facebook.com/vistaoutdoor.
Forward-Looking Statements
Certain statements in this
press release and other oral and written statements made by Vista
Outdoor Inc. ("Vista Outdoor", "we","us" or "our") from time to
time are forward-looking statements, including those that discuss,
among other things: Vista Outdoor's intent to separate our Outdoor
Products and Sporting Products segments and Vista Outdoor's
preliminary strategic, operational and financial considerations
related thereto; Vista Outdoor's 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 Vista Outdoor;
and the assumptions that underlie these matters. The words
'believe', 'expect', 'anticipate', 'intend', 'aim', 'should' and
similar expressions are intended to identify such forward-looking
statements. To the extent that any such information is
forward-looking, it is intended to fit within the safe harbor for
forward-looking information provided by the Private Securities
Litigation Reform Act of 1995. Numerous risks, uncertainties and
other factors could cause Vista Outdoor's actual results to differ
materially from expectations described in such forward-looking
statements, including the following: risks related to the
separation of our Outdoor Products and Sporting Products segments,
including that the process of exploring the transaction and
potentially completing the transaction could disrupt or adversely
affect the consolidated or separate businesses, results of
operations and financial condition, that the transaction may not
achieve some or all of any anticipated benefits with respect to
either business and that the transaction may not be completed in
accordance with our expected plans or anticipated timelines, or at
all; impacts from the COVID-19 pandemic on Vista Outdoor's
operations, the operations of our customers and suppliers and
general economic conditions; general economic and business
conditions in the United States
and Vista Outdoor's other markets outside the United States, including conditions
affecting employment levels, consumer confidence and spending,
conditions in the retail environment, and other economic conditions
affecting demand for our products and the financial health of our
customers; Vista Outdoor's ability to attract and retain key
personnel and maintain and grow its relationships with customers,
suppliers and other business partners, including Vista Outdoor's
ability to obtain acceptable third party licenses; Vista Outdoor's
ability to adapt its products to changes in technology, the
marketplace and customer preferences, including our ability to
respond to shifting preferences of the end consumer from brick and
mortar retail to online retail; Vista Outdoor's ability to maintain
and enhance brand recognition and reputation; others' use of social
media to disseminate negative commentary about us and boycotts;
reductions in or unexpected changes in or our inability to
accurately forecast demand for ammunition, accessories or other
outdoor sports and recreation products; risks associated with Vista
Outdoor's sales to significant retail customers, including
unexpected cancellations, delays and other changes to purchase
orders; supplier capacity constraints, production disruptions or
quality or price issues affecting Vista Outdoor's operating costs;
Vista Outdoor's competitive environment; risks associated with
diversification into new international and commercial markets
including regulatory compliance; changes in the current tariff
structures; the supply, availability and costs of raw materials and
components; increases in commodity, energy and production costs;
changes in laws, rules and regulations relating to Vista Outdoor's
business, such as federal and state ammunition regulations; Vista
Outdoor's ability to realize expected benefits from acquisitions
and integrate acquired businesses; Vista Outdoor's ability to take
advantage of growth opportunities in international and commercial
markets; foreign currency exchange rates and fluctuations in those
rates; the outcome of contingencies, including with respect to
litigation and other proceedings relating to intellectual property,
product liability, warranty liability, personal injury and
environmental remediation; risks associated with cybersecurity and
other industrial and physical security threats; capital market
volatility and the availability of financing; changes to accounting
standards or policies; and changes in tax rules or pronouncements.
You are cautioned not to place undue reliance on any
forward-looking statements we make. Vista Outdoor undertakes no
obligation to update any forward-looking statements except as
otherwise required by law. For further information on factors that
could impact Vista Outdoor, and statements contained herein, please
refer to Vista Outdoor's filings with the U.S. Securities and
Exchange Commission.
VISTA OUTDOOR
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (preliminary and
unaudited)
|
|
|
|
Three months
ended
|
|
Years
ended
|
(Amounts in
thousands except per share data)
|
|
March 31,
2022
|
|
March 31,
2021
|
|
March 31,
2022
|
|
March 31,
2021
|
Sales, net
|
|
$ 808,595
|
|
$ 596,524
|
|
$
3,044,621
|
|
$
2,225,522
|
Cost of
sales
|
|
521,181
|
|
414,054
|
|
1,935,389
|
|
1,592,562
|
Gross profit
|
|
287,414
|
|
182,470
|
|
1,109,232
|
|
632,960
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
8,951
|
|
6,683
|
|
28,737
|
|
22,538
|
Selling, general, and administrative
|
|
125,583
|
|
95,105
|
|
434,273
|
|
337,460
|
Earnings before
interest, income taxes, and other
|
|
152,880
|
|
80,682
|
|
646,222
|
|
272,962
|
Other income ( expense):
|
|
|
|
|
|
|
|
|
Gain on divestitures
|
|
—
|
|
—
|
|
—
|
|
18,467
|
Loss on extinguishment of
debt
|
|
—
|
|
(6,471)
|
|
—
|
|
(6,471)
|
Earnings before
interest and income taxes
|
|
152,880
|
|
74,211
|
|
646,222
|
|
284,958
|
Interest expense, net
|
|
(6,962)
|
|
(7,822)
|
|
(25,264)
|
|
(25,574)
|
Earnings before income
taxes
|
|
145,918
|
|
66,389
|
|
620,958
|
|
259,384
|
Income tax (provision) benefit
|
|
(33,094)
|
|
623
|
|
(147,732)
|
|
6,628
|
Net income
|
|
$ 112,824
|
|
$
67,012
|
|
$ 473,226
|
|
$ 266,012
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
2.01
|
|
$
1.15
|
|
$
8.27
|
|
$
4.57
|
Diluted
|
|
$
1.93
|
|
$
1.11
|
|
$
8.00
|
|
$
4.44
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
56,195
|
|
58,416
|
|
57,190
|
|
58,241
|
Diluted
|
|
58,387
|
|
60,470
|
|
59,137
|
|
59,905
|
VISTA OUTDOOR
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(preliminary and
unaudited)
|
|
|
|
March
31,
|
(Amounts in
thousands except share data)
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
22,584
|
|
$
243,265
|
Net
receivables
|
|
356,773
|
|
301,575
|
Net
inventories
|
|
642,976
|
|
454,504
|
Income tax receivable
|
|
43,560
|
|
37,870
|
Other current assets
|
|
45,050
|
|
27,018
|
Total current assets
|
|
1,110,943
|
|
1,064,232
|
Net property, plant,
and equipment
|
|
211,087
|
|
197,531
|
Operating lease
assets
|
|
78,252
|
|
72,400
|
Goodwill
|
|
481,857
|
|
86,082
|
Net intangible
assets
|
|
459,795
|
|
314,955
|
Deferred charges and
other non-current assets
|
|
54,267
|
|
29,739
|
Total assets
|
|
$ 2,396,201
|
|
$ 1,764,939
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
|
|
$
146,697
|
|
$
163,839
|
Accrued compensation
|
|
79,171
|
|
63,318
|
Federal excise, use, and other taxes
|
|
40,825
|
|
23,092
|
Other current liabilities
|
|
127,180
|
|
120,568
|
Total current
liabilities
|
|
393,873
|
|
370,817
|
Long-term
debt
|
|
666,114
|
|
495,564
|
Deferred income tax
liabilities
|
|
29,304
|
|
8,235
|
Long-term operating
lease liabilities
|
|
80,083
|
|
77,375
|
Accrued pension and
postemployment benefits
|
|
22,634
|
|
33,503
|
Other long-term
liabilities
|
|
79,794
|
|
42,448
|
Total liabilities
|
|
1,271,802
|
|
1,027,942
|
Commitments and
contingencies
|
|
|
|
|
Common stock—$.01 par
value:
|
|
|
|
|
Authorized—500,000,000
shares
|
|
|
|
|
Issued and
outstanding—56,093,456 shares as of March 31, 2022 and
58,561,016 shares as of March 31, 2021
|
|
560
|
|
585
|
Additional
paid-in-capital
|
|
1,730,927
|
|
1,731,479
|
Accumulated
deficit
|
|
(220,810)
|
|
(694,036)
|
Accumulated other
comprehensive loss
|
|
(76,679)
|
|
(83,195)
|
Common stock in
treasury, at cost—7,870,983 shares held as of March 31, 2022
and 5,403,423 shares held as of March 31, 2021
|
|
(309,599)
|
|
(217,836)
|
Total stockholders'
equity
|
|
1,124,399
|
|
736,997
|
Total liabilities and
stockholders' equity
|
|
$ 2,396,201
|
|
$ 1,764,939
|
VISTA OUTDOOR
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(preliminary and
unaudited)
|
|
|
|
Years Ended March
31
|
(Amounts in
thousands)
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
Net
income
|
|
$
473,226
|
|
$
266,012
|
Adjustments to net income to arrive at cash provided by
operating activities:
|
|
|
|
|
Depreciation
|
|
46,094
|
|
45,264
|
Amortization of intangible
assets
|
|
26,246
|
|
19,846
|
Amortization of deferred
financing costs
|
|
1,411
|
|
2,922
|
Change in fair value of
contingent consideration
|
|
956
|
|
—
|
Gain on sale of
business
|
|
—
|
|
(18,467)
|
Deferred income
taxes
|
|
11,857
|
|
(10,106)
|
Loss on disposal of property,
plant, and equipment
|
|
796
|
|
4,565
|
Loss on extinguishment of
debt
|
|
—
|
|
6,471
|
Share-based
compensation
|
|
27,407
|
|
13,303
|
Changes in assets and
liabilities:
|
|
|
|
|
Net
receivables
|
|
(50,631)
|
|
17,495
|
Net
inventories
|
|
(172,741)
|
|
(84,185)
|
Accounts
payable
|
|
(24,350)
|
|
72,946
|
Accrued
compensation
|
|
14,370
|
|
22,617
|
Accrued income
taxes
|
|
(3,968)
|
|
(37,397)
|
Federal excise, use,
and other taxes
|
|
8,111
|
|
3,323
|
Pension and other
postretirement benefits
|
|
(1,561)
|
|
(6,607)
|
Other assets and
liabilities
|
|
(38,912)
|
|
27,372
|
Cash provided by
operating activities
|
|
318,311
|
|
345,374
|
Investing
Activities
|
|
|
|
|
Capital expenditures
|
|
(42,782)
|
|
(30,166)
|
Proceeds from the sale of business
|
|
—
|
|
23,654
|
Acquisition of businesses, net of cash received
|
|
(545,467)
|
|
(95,605)
|
Proceeds from the disposition of property, plant, and
equipment
|
|
411
|
|
99
|
Cash used for investing
activities
|
|
(587,838)
|
|
(102,018)
|
Financing
Activities
|
|
|
|
|
Borrowings on lines of credit
|
|
400,000
|
|
73,077
|
Payments made on lines of credit
|
|
(230,000)
|
|
(240,333)
|
Proceeds from issuance of long-term debt
|
|
—
|
|
500,000
|
Payments made on long-term debt
|
|
—
|
|
(350,000)
|
Payments made for debt issue costs and prepayment
premiums
|
|
(1,061)
|
|
(6,496)
|
Early redemption of long-term debt
|
|
—
|
|
(5,141)
|
Proceeds from employee stock compensation and stock purchase
plans
|
|
533
|
|
1,386
|
Purchase of treasury shares
|
|
(113,195)
|
|
—
|
Payment of employee taxes related to vested stock
awards
|
|
(7,310)
|
|
(4,133)
|
Cash provided by (used
for) financing activities
|
|
48,967
|
|
(31,640)
|
Effect of foreign
currency exchange rate fluctuations on cash
|
|
(121)
|
|
174
|
(Decrease) increase in
cash and cash equivalents
|
|
(220,681)
|
|
211,890
|
Cash and cash
equivalents at beginning of year
|
|
243,265
|
|
31,375
|
Cash and cash
equivalents at end of year
|
|
$
22,584
|
|
$
243,265
|
|
|
Investor
Contact:
|
Media
Contact:
|
|
|
Shelly
Hubbard
|
Eric
Smith
|
Phone:
612-518-5406
|
Phone:
901-573-9156
|
E-mail:
investor.relations@vistaoutdoor.com
|
E-mail:
media.relations@vistaoutdoor.com
|
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SOURCE Vista Outdoor Inc.