FARMINGTON, Utah, Nov. 9,
2017 /PRNewswire/ -- Vista Outdoor Inc. (NYSE: VSTO) today
reported operating results for the second quarter of its Fiscal
Year 2018 (FY18), which ended on October 1, 2017. The
company also announced that its Board of Directors has named
Michael Callahan to serve as
chairman.
"I am honored to be elected chairman of Vista Outdoor," said
Callahan. "I am optimistic about the future, and the board is
impressed with how quickly our new CEO Chris Metz has wrapped his mind around the
business. His strategic, savvy and decisive approach is exactly the
right leadership the company needs to realize the full potential of
our diverse portfolio of iconic brands."
"I am excited to combine my passion for these brands and this
industry with my professional experience and deep background in
consumer products," said Vista Outdoor Chief Executive Officer
Chris Metz. "While I've only been
here a short time, I realize we have much to do: we must make
significant changes, act decisively, and move quickly to reposition
and stabilize the company. We will take an aggressive position on
profit improvement through both margin expansion and cost
reductions across all areas of the core business.
"We're in the process of completing a portfolio review of our
brands, and we will divest assets where we see the potential to
unlock shareholder value. As a first outcome of this process, we
are announcing our intention to sell the Bollé, Serengeti and Cébé
brands in the Sports Protection business. These brands were
acquired as part of the Bushnell transaction in 2013 and focus
primarily on fashion, prescription and safety eyewear, which are
areas that we have determined are not core to our business. The
sale of these brands is expected to take place over the next few
quarters.
"To allow our business leaders to drive changes faster and have
clear line of sight to the goals at hand, I have decided to
eliminate the Shooting Sports segment president position," said
Metz.
With this restructuring, Shooting Sports President Bob Keller will leave the company on
November 17, 2017.
"I want to thank Bob for his leadership and his many
contributions to the company, and I wish him well in his future
endeavors," said Metz.
Upon Keller's departure, Al
Kasper, President of Firearms, and Jason Vanderbrink, President of Ammunition, will
report directly to Metz, as leaders within the Shooting Sports
Segment. Kasper currently leads Firearms for the company. He
joined Savage Arms in 1996 as chief financial officer and became
its president and chief operating officer in 2001. Vanderbrink has
served as Vista Outdoor's senior vice president of sales since
January 2017 and will also continue
to serve in the sales role as the company evaluates its
organizational structure for sales, marketing and product
development. He joined Vista Outdoor in 2005 and has 17 years of
extensive experience in the outdoor recreation and shooting sports
industries.
"Al's tenure with the company and insights into the firearms
industry make him ideal for this position. Jason has a proven
history of strategic leadership at Vista Outdoor, and has strong
customer relationships and market knowledge within the ammunition
industry. I have confidence in both of these fine leaders and look
forward to working with them as they deploy their capabilities
across these critical roles."
For the second quarter ended October 1, 2017:
- Sales were $587 million, down 14
percent from the prior-year quarter, including $12 million of additional sales from the
acquisition of Camp Chef. Sales were down 16 percent on an organic
basis.
- Gross profit was $139 million,
down 25 percent from the prior-year quarter. This includes
$3 million of additional gross profit
from the Camp Chef acquisition, offset by a 27 percent decrease in
organic gross profit.
- Operating expenses were $266
million, compared to $81
million in the prior-year quarter. This $185 million difference was primarily due to a
$152 million goodwill and intangibles
impairment in the current period, partially offset by a
$30 million acquisition settlement
gain in the prior-year period.
- Fully diluted earnings per share (EPS) was $(2.01), compared to $1.22 in the prior-year quarter. Adjusted EPS was
$0.34, compared to $0.74 in the prior-year quarter.
- Cash flow provided by operating activities year to date was
$109 million, compared to
$10 million in the prior-year period.
Year-to-date free cash flow generation was $77 million, compared to free cash flow use of
$48 million in the prior-year period,
primarily driven by inventory reduction initiatives.
"During the second quarter, the competitive environment in
ammunition, firearms and shooting-related accessories continued to
impact our business," said Vista Outdoor Chief Financial Officer
Stephen Nolan. "Ongoing promotional
activity combined with high inventory trends in our wholesale
channels contributed to a challenging quarter. The company remains
focused on cost-savings initiatives and working capital
improvements. I'm pleased with the significant reductions to
company inventory levels we have made, both year over year and
sequentially. We just completed another workforce reduction to
better align production with demand. The company generated cash at
a level that is higher than our historic average, and we continue
to build out our e-commerce strategy and invest in new, innovative
products."
Please see the tables in the press release for a reconciliation
of non-GAAP adjusted gross profit, operating profit, tax rate,
fully diluted earnings per share, and free cash flow to the
comparable GAAP measures.
Outlook for Fiscal Year 2018
"During the quarter we recorded an impairment of intangible
assets of $152 million in our Outdoor
Products segment, with $75 million
related to our Sports Protection business and $77 million related to our Hunting and Shooting
Accessories business," said Nolan. "The impairment was triggered by
increased downward pressure on sales and margins as a result of
challenging market conditions that have persisted longer than
previously expected. These challenging market conditions have been
exacerbated by additional customer bankruptcies and consolidations.
We continue to see high channel inventories for our Hunting and
Shooting Accessories business. We expect these inventory levels
will take the remainder of the fiscal year to work through, and
will continue to put pressure on sales and margins. Our Sports
Protection business has been impacted by the ongoing challenges
facing the cycling industry broadly and by reduced retail space for
our products.
"The market contraction and competitive environment I mentioned
earlier will have more of an impact in the second half of the year
than it did in the first half, including the full impact of the
ammunition pricing action, which we took in the first and second
quarters. While we have taken actions to reduce costs, these
initiatives have been more than offset by persisting market
conditions. As a result, we are revising our FY18 financial
guidance for the year."
Vista Outdoor revised its FY18 financial guidance. The company
expects:
- Sales in a range of $2.24 billion to
$2.26 billion.
- An adjusted tax rate of approximately 25 percent.
- Adjusted EPS in a range of $0.50 to
$0.60.
- Capital expenditures of approximately $65 million.
- Free cash flow in a range of $155
million to $175 million.
- Interest expense remains unchanged at approximately
$50 million.
The guidance above does not include the impact of any future
strategic acquisitions, divestitures, investments, business
combinations or other significant transactions, nor the impact of
transition expenses for already-completed acquisitions.
Earnings Conference Call Webcast Information
Vista Outdoor will hold an investor conference call to discuss
its second quarter FY18 financial results on November 9, 2017, 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 for one month after the call. The telephone number for
the recorded call is 719-457-0820, and the confirmation code is
8570212.
Reconciliation of Non-GAAP Financial Measures
Gross Profit, Operating Profit, and Earnings Per
Share
The adjusted gross profit, operating expenses, operating profit
(adjusted EBIT), adjusted tax rate, and adjusted earnings per share
(adjusted EPS) presented below are non-GAAP financial measures.
Vista Outdoor defines these measures as gross profit, operating
profit (EBIT), tax rate, and EPS excluding, where applicable, the
impact of costs incurred for current and possible contingent
consideration, transactions, CEO transition costs, goodwill and
intangible asset impairment, pension curtailment, acquisition claim
settlement gain, transition costs, and acquisition inventory
step-up. Vista Outdoor management is presenting these measures so a
reader may compare gross profit, EBIT, tax rate, 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.
|
|
|
|
|
|
|
|
|
Quarter ended
October 1,
2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
Operating
Expenses
|
|
Operating
Profit
|
|
Income
Tax
|
|
Income
Tax Rate
|
|
Net
Income
|
|
EPS
|
|
As
reported
|
|
$
|
138,977
|
|
|
$
|
266,153
|
|
|
$
|
(127,176)
|
|
|
$
|
(25,040)
|
|
|
17.9
|
%
|
|
$
|
(114,705)
|
|
|
$
|
(2.01)
|
|
|
Contingent
consideration
|
|
—
|
|
|
211
|
|
|
(211)
|
|
|
314
|
|
|
|
|
(525)
|
|
|
(0.01)
|
|
|
Transaction
costs
|
|
—
|
|
|
(316)
|
|
|
316
|
|
|
118
|
|
|
|
|
198
|
|
|
—
|
|
|
CEO transition
costs
|
|
—
|
|
|
(8,693)
|
|
|
8,693
|
|
|
3,076
|
|
|
|
|
5,617
|
|
|
0.10
|
|
|
Goodwill and
intangibles
impairment
|
|
—
|
|
|
(152,320)
|
|
|
152,320
|
|
|
23,393
|
|
|
|
|
128,927
|
|
|
2.26
|
|
|
As
adjusted
|
|
$
|
138,977
|
|
|
$
|
105,035
|
|
|
$
|
33,942
|
|
|
$
|
1,861
|
|
|
8.7
|
%
|
|
$
|
19,512
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
October 2,
2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
Operating
Expenses
|
|
Operating
Profit
|
|
Income
Tax
|
|
Income
Tax Rate
|
|
Net
Income
|
|
EPS
|
|
As
reported
|
|
$
|
185,409
|
|
|
$
|
80,846
|
|
|
$
|
104,563
|
|
|
$
|
21,196
|
|
|
22.4
|
%
|
|
$
|
73,224
|
|
|
$
|
1.22
|
|
|
Acquisition claim
settlement gain, net
|
|
—
|
|
|
30,027
|
|
|
(30,027)
|
|
|
143
|
|
|
|
|
(30,170)
|
|
|
(0.50)
|
|
|
Transaction and
transition
costs
|
|
—
|
|
|
(2,067)
|
|
|
2,067
|
|
|
779
|
|
|
|
|
1,288
|
|
|
0.02
|
|
|
As
adjusted
|
|
$
|
185,409
|
|
|
$
|
108,806
|
|
|
$
|
76,603
|
|
|
$
|
22,118
|
|
|
33.3
|
%
|
|
$
|
44,342
|
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*NOTE: Adjustments to "as reported" results are items
that are excluded to arrive at the "as adjusted" results for the
quarters ended October 1, 2017 and October 2,
2016.
During the quarter ended October 1, 2017, Vista Outdoor
incurred transaction costs associated with possible transactions,
including advisory, legal, and accounting service fees. Given the
nature of transaction costs, and differences in these amounts from
one acquisition to another, we feel these costs are not indicative
of operations of the company. The tax effect of the transaction
costs was calculated based on a blended statutory rate of
approximately 37 percent.
During the quarter ended October 1, 2017, Vista Outdoor
recorded $0.8 million of the
$10 million of compensation for the
Camp Chef earn-out, which will be paid over the next three years,
subject to continued Camp Chef leadership employment and the
achievement of certain incremental growth milestones. The tax
effect of the contingent consideration adjustment was calculated
based on a blended statutory rate of approximately 37 percent. In
addition, during the quarter ended October 1, 2017, we reduced
by $1 million the liability for the
earn-out related to the Bell Powersports product line as a result
of changes in expectations and the likelihood of achieving future
profitability milestones for the remaining periods of the earn-out.
There was no tax effect of this contingent consideration
adjustment. Given these contingent consideration amounts relate to
the purchase price of the companies and are not normal ongoing
compensation of the employees, we do not believe these costs are
indicative of operations.
During the quarter ended October 1, 2017, Mr. Mark DeYoung, then CEO, retired from Vista
Outdoor and Michael Callahan assumed
the role of interim CEO. In addition, the company performed a
search for a permanent CEO. We recorded approximately $9 million in costs related to severance,
retirement benefits, and executive search fees related to the CEO
transition. We believe these costs are not indicative of the
ongoing operations of the company. The tax effect of the costs was
calculated based on a blended statutory rate of approximately 37
percent partially offset by a tax deduction shortfall.
During the quarter ended October 1, 2017, we recognized a
$152 million total impairment of
goodwill and identifiable intangible assets. The company previously
anticipated a return to sales growth in fiscal 2018 for the Hunting
and Shooting Accessories and Sports Protection reporting units.
However, during the quarter ended October 1, 2017 the company
concluded that the return to growth for those reporting units would
take longer than previously anticipated. As a result, we reduced
the projected cash flows for these reporting units to reflect the
lower expected sales volume and higher product discounting. This
reduction in our internal projections for these reporting units
triggered an analysis of our goodwill and tradename intangibles.
Given the unusual and infrequent nature of this impairment we do
not believe these costs are indicative of operations of the
company. The tax effect of the goodwill and intangibles impairment
charge was determined based on the fact that the goodwill
impairment charge of $143 million, a
portion of which was non-deductible and the remainder was
deductible at a rate of approximately 37 percent for tax purposes,
and the remaining intangible asset impairment of $9 million was deductible at a rate of
approximately 37 percent.
During the quarter ended October 2, 2016, we finalized a
settlement of claims that we brought against the previous owner of
Bushnell Holdings and third-party insurance providers relating to
certain disputes arising under the purchase agreement with respect
to the acquisition.
During the quarter ended October 2, 2016, Vista Outdoor
incurred transaction and transition costs associated with the
completed transaction of Action Sports and Camp Chef as well as
other possible transactions, including advisory, legal and
accounting service fees, a portion of which were non-deductible for
tax purposes. Transition costs for the Action Sports business
include one-time costs related to the integration of the business
into the company including vendor change fees, insurance-related
expenses, and severance costs.
Free Cash Flow
Free cash flow is defined as cash provided by (used for)
operating activities less capital expenditures and excluding
transaction, transition, and acquisition claim settlement costs net
of taxes incurred to date. 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)
|
|
Six months
ended
October 1, 2017
|
|
Six months
ended
October 2, 2016
|
|
Projected year
ending
March 31, 2018
|
Cash provided by
operating activities
|
|
$
|
109,164
|
|
|
$
|
10,183
|
|
|
$220,809–$240,809
|
Capital
expenditures
|
|
(31,189)
|
|
|
(31,117)
|
|
|
~(65,000)
|
Acquisition claim
settlement gain, net
|
|
—
|
|
|
(30,027)
|
|
|
—
|
CEO transition costs
paid to date, net of tax
|
|
(1,061)
|
|
|
—
|
|
|
(1,061)
|
Transaction costs
paid to date, net of tax
|
|
252
|
|
|
3,123
|
|
|
252
|
Free cash
flow
|
|
$
|
77,166
|
|
|
$
|
(47,838)
|
|
|
$155,000–$175,000
|
Adjusted Earnings Per Share - Guidance Reconciliation
Table
The projected adjusted earnings per share (EPS), excluding the
impact of costs incurred to date for current and possible
transactions, changes in value of future payments of pension
curtailment, contingent consideration, transactions, goodwill and
intangible asset impairment, and transition costs is a non-GAAP
financial measure that Vista Outdoor defines as EPS excluding the
impact of these items. Vista Outdoor management is presenting this
measure so a reader may compare EPS, excluding these items, as this
measure provides 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.
|
|
|
Current FY18
Full-Year Adjusted EPS Guidance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low
|
|
High
|
|
EPS guidance
including pension curtailment, contingent consideration
revaluation, and
transaction costs incurred to date
|
|
$
|
(1.80)
|
|
|
$
|
(1.70)
|
|
|
Pension
curtailment
|
|
(0.06)
|
|
|
(0.06)
|
|
|
Goodwill and
intangibles impairment
|
|
2.26
|
|
|
2.26
|
|
|
CEO transition
costs
|
|
0.10
|
|
|
0.10
|
|
|
Adjusted EPS
guidance
|
|
$
|
0.50
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
Vista Outdoor is a leading global designer, manufacturer and
marketer of consumer products in the growing outdoor sports and
recreation markets. The company operates in two segments, Outdoor
Products and Shooting Sports, and 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. Vista Outdoor is
headquartered in Utah and has
manufacturing operations and facilities in 13 U.S. States,
Canada, Mexico, and Puerto
Rico along with international customer service, sales, and
sourcing operations in Asia,
Australia, Canada, and Europe.
Forward-Looking Statements
Certain statements in this press release and other oral and
written statements made by Vista Outdoor from time to time are
forward-looking statements, including those that discuss, among
other things: 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: general economic and business
conditions in the U.S. and Vista Outdoor's other markets, including
conditions affecting employment levels, consumer confidence and
spending, the 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; reductions, unexpected changes in or our inability to
accurately forecast demand for ammunition, firearms or accessories
or other outdoor sports and recreation products; risks associated
with Vista Outdoor's sales to significant 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
compliance and diversification into international and commercial
markets; 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 firearms and ammunition
regulations; Vista Outdoor's ability to execute its long-term
growth strategy, including our ability to complete and 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. Vista
Outdoor undertakes no obligation to update any forward-looking
statements. For further information on factors that could impact
Vista Outdoor, and statements contained herein, please refer to
Vista Outdoor's filings with the Securities and Exchange
Commission.
VISTA OUTDOOR
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(preliminary and
unaudited)
|
|
|
|
Quarter
ended
|
|
Six months
ended
|
(Amounts in
thousands except per share data)
|
|
October 1,
2017
|
|
October 2,
2016
|
|
October 1,
2017
|
|
October 2,
2016
|
Sales, net
|
|
$
|
587,283
|
|
|
$
|
684,312
|
|
|
$
|
1,156,032
|
|
|
$
|
1,314,581
|
|
Cost of
sales
|
|
448,306
|
|
|
498,903
|
|
|
870,497
|
|
|
957,795
|
|
Gross
profit
|
|
138,977
|
|
|
185,409
|
|
|
285,535
|
|
|
356,786
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
7,447
|
|
|
8,150
|
|
|
15,238
|
|
|
15,981
|
|
Selling, general, and
administrative
|
|
106,386
|
|
|
102,723
|
|
|
205,812
|
|
|
207,167
|
|
Acquisition claim
settlement gain, net
|
|
—
|
|
|
(30,027)
|
|
|
—
|
|
|
(30,027)
|
|
Goodwill and
intangibles impairment
|
|
152,320
|
|
|
—
|
|
|
152,320
|
|
|
—
|
|
Income (loss) before
interest and income taxes
|
|
(127,176)
|
|
|
104,563
|
|
|
(87,835)
|
|
|
163,665
|
|
Interest expense,
net
|
|
(12,569)
|
|
|
(10,143)
|
|
|
(24,962)
|
|
|
(22,106)
|
|
Income (loss) before
income taxes
|
|
(139,745)
|
|
|
94,420
|
|
|
(112,797)
|
|
|
141,559
|
|
Income tax provision
(benefit)
|
|
(25,040)
|
|
|
21,196
|
|
|
(14,744)
|
|
|
39,211
|
|
Net income
(loss)
|
|
$
|
(114,705)
|
|
|
$
|
73,224
|
|
|
$
|
(98,053)
|
|
|
$
|
102,348
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(2.01)
|
|
|
$
|
1.23
|
|
|
$
|
(1.72)
|
|
|
$
|
1.70
|
|
Diluted
|
|
$
|
(2.01)
|
|
|
$
|
1.22
|
|
|
$
|
(1.72)
|
|
|
$
|
1.69
|
|
Weighted-average
number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
57,099
|
|
|
59,710
|
|
|
57,041
|
|
|
60,055
|
|
Diluted
|
|
57,099
|
|
|
60,055
|
|
|
57,041
|
|
|
60,400
|
|
VISTA OUTDOOR
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(preliminary and
unaudited)
|
|
|
|
|
|
(Amounts in
thousands except share data)
|
|
October 1,
2017
|
|
March 31,
2017
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
50,998
|
|
|
$
|
45,075
|
|
Net
receivables
|
|
502,610
|
|
|
450,715
|
|
Net
inventories
|
|
508,835
|
|
|
562,795
|
|
Income tax
receivable
|
|
15,255
|
|
|
25,658
|
|
Other current
assets
|
|
25,333
|
|
|
25,604
|
|
Total current
assets
|
|
1,103,031
|
|
|
1,109,847
|
|
Net property, plant,
and equipment
|
|
270,711
|
|
|
272,346
|
|
Goodwill
|
|
721,121
|
|
|
857,631
|
|
Net intangible
assets
|
|
683,737
|
|
|
708,530
|
|
Deferred charges and
other non-current assets
|
|
31,666
|
|
|
28,393
|
|
Total
assets
|
|
$
|
2,810,266
|
|
|
$
|
2,976,747
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
32,000
|
|
|
$
|
32,000
|
|
Accounts
payable
|
|
134,845
|
|
|
127,718
|
|
Accrued
compensation
|
|
35,663
|
|
|
33,663
|
|
Federal excise
tax
|
|
25,822
|
|
|
30,082
|
|
Other accrued
liabilities
|
|
135,640
|
|
|
122,926
|
|
Total current
liabilities
|
|
363,970
|
|
|
346,389
|
|
Long-term
debt
|
|
1,012,941
|
|
|
1,089,252
|
|
Deferred income tax
liabilities
|
|
132,664
|
|
|
160,765
|
|
Accrued pension and
postemployment benefits
|
|
58,069
|
|
|
64,230
|
|
Other long-term
liabilities
|
|
69,079
|
|
|
71,046
|
|
Total
liabilities
|
|
1,636,723
|
|
|
1,731,682
|
|
|
|
|
|
|
Common stock—$.01 par
value:
|
|
|
|
|
Authorized—500,000,000 shares
|
|
|
|
|
Issued and
outstanding — 57,277,977 shares as of October 1, 2017 and
57,014,319
shares as of March 31, 2017
|
|
573
|
|
|
571
|
|
Additional paid-in
capital
|
|
1,751,192
|
|
|
1,752,903
|
|
Accumulated
deficit
|
|
(206,086)
|
|
|
(108,033)
|
|
Accumulated other
comprehensive loss
|
|
(96,000)
|
|
|
(112,992)
|
|
Common stock in
treasury, at cost — 6,686,462 shares held as of October 1, 2017
and
6,950,120 shares held as of March 31, 2017
|
|
(276,136)
|
|
|
(287,384)
|
|
Total stockholders'
equity
|
|
1,173,543
|
|
|
1,245,065
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,810,266
|
|
|
$
|
2,976,747
|
|
VISTA OUTDOOR
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(preliminary and
unaudited)
|
|
|
|
Six months
ended
|
(Amounts in
thousands)
|
|
October 1,
2017
|
|
October 2,
2016
|
Operating
Activities:
|
|
|
|
|
Net income
(loss)
|
|
$
|
(98,053)
|
|
|
$
|
102,348
|
|
Adjustments to net
income (loss) to arrive at cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
27,503
|
|
|
26,993
|
|
Amortization
of intangible assets
|
|
18,253
|
|
|
20,393
|
|
Goodwill and
intangibles impairment
|
|
152,320
|
|
|
—
|
|
Amortization
of deferred financing costs
|
|
1,494
|
|
|
2,823
|
|
Deferred
income taxes
|
|
(29,425)
|
|
|
(11)
|
|
Loss on
disposal of property, plant, and equipment
|
|
83
|
|
|
—
|
|
Stock-based
compensation
|
|
7,325
|
|
|
6,524
|
|
Changes in assets and
liabilities, net of acquisition of businesses:
|
|
|
|
|
Net
receivables
|
|
(49,967)
|
|
|
(40,122)
|
|
Net
inventories
|
|
52,337
|
|
|
(73,717)
|
|
Accounts
payable
|
|
11,950
|
|
|
(47,574)
|
|
Accrued
compensation
|
|
(246)
|
|
|
(15,651)
|
|
Accrued income
taxes
|
|
12,028
|
|
|
(4,431)
|
|
Federal excise
tax
|
|
(4,335)
|
|
|
2,895
|
|
Pension and
other postretirement benefits
|
|
(3,840)
|
|
|
1,155
|
|
Other assets
and liabilities
|
|
11,737
|
|
|
28,558
|
|
Cash provided by
operating activities
|
|
109,164
|
|
|
10,183
|
|
Investing
Activities:
|
|
|
|
|
Capital
expenditures
|
|
(31,189)
|
|
|
(31,117)
|
|
Acquisition of
businesses, net of cash acquired
|
|
—
|
|
|
(458,149)
|
|
Proceeds from the
disposition of property, plant, and equipment
|
|
58
|
|
|
66
|
|
Cash used for
investing activities
|
|
(31,131)
|
|
|
(489,200)
|
|
Financing
Activities:
|
|
|
|
|
Borrowings on line of
credit
|
|
210,000
|
|
|
290,000
|
|
Payments made on line
of credit
|
|
(270,000)
|
|
|
(130,000)
|
|
Proceeds from
issuance of long-term debt
|
|
—
|
|
|
307,500
|
|
Payments made on
long-term debt
|
|
(16,000)
|
|
|
(16,000)
|
|
Payments made for
debt issuance costs
|
|
(1,805)
|
|
|
(3,660)
|
|
Purchase of treasury
shares
|
|
—
|
|
|
(64,961)
|
|
Deferred payments for
acquisitions
|
|
—
|
|
|
(7,136)
|
|
Proceeds from
employee stock compensation plans
|
|
4,237
|
|
|
75
|
|
Cash (used for)
provided by financing activities
|
|
(73,568)
|
|
|
375,818
|
|
Effect of foreign
exchange rate fluctuations on cash
|
|
1,458
|
|
|
(218)
|
|
Increase (decrease)
in cash and cash equivalents
|
|
5,923
|
|
|
(103,417)
|
|
Cash and cash
equivalents at beginning of period
|
|
45,075
|
|
|
151,692
|
|
Cash and cash
equivalents at end of period
|
|
$
|
50,998
|
|
|
$
|
48,275
|
|
Media
Contact:
|
Investor
Contact:
|
|
|
Amanda
Covington
|
Michael
Pici
|
Phone:
801-447-3035
|
Phone:
801-447-3168
|
E-mail:
media.relations@vistaoutdoor.com
|
E-mail:
investor.relations@vistaoutdoor.com
|
Corporate
Communications
262 N. University
Ave.
Farmington, UT
84025
|
Phone:
801-447-3000
|
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SOURCE Vista Outdoor Inc.