Actionable news
0
All posts from Actionable news
Actionable news in VSTO: VISTA OUTDOOR Inc,

Vista Outdoor Announces FY18 First Quarter Operating Results

"We delivered a solid start to Fiscal Year 2018 in the face of a challenging retail environment," said Vista Outdoor Interim Chairman and Chief Executive Officer Michael Callahan. "The company continues its focus on new product development, improved operational performance, and cost savings."

For the first quarter ended July 2, 2017:

  • Sales were $569 million, down 10 percent from the prior-year quarter, including $21 million of additional sales from the acquisition of Camp Chef. Sales were down 13 percent on an organic basis.
  • Gross profit was $147 million, down 14 percent from the prior-year quarter. This includes $7 million of gross profit from the Camp Chef acquisition, offset by an 18 percent decrease in organic gross profit.
  • Operating expenses were $107 million, compared to $112 million in the prior-year quarter.
  • Fully diluted earnings per share (EPS) was $0.29, compared to $0.48 in the prior-year quarter. Adjusted EPS was $0.24, compared to $0.48 in the prior-year quarter.
  • Cash flow provided by operating activities was $39 million, compared to a use of $22 million for operating activities in the prior-year period. Year-to-date free cash flow generation was $23 million, compared to free cash flow use of $41 million in the prior-year period.

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

"We are pleased with our performance in the quarter," said Vista Outdoor Chief Financial Officer Stephen Nolan. "Our working capital reduction efforts are delivering results, with strong cash performance in a quarter when traditionally the company has had a net cash use. Margins were helped by the timing of some general overhead spending and by a late introduction in the quarter of ammunition promotional programs. This late introduction pushed the impact of those programs into later quarters. Our sales programs also resulted in the company pulling ahead some revenue from the second quarter into the latter part of our first quarter. Nonetheless, we are reaffirming previously issued guidance for the full year."

Vista Outdoor reaffirmed its FY18 financial guidance. The company expects:

  • Sales in a range of $2.36 billion to $2.42 billion.
  • Interest expense of approximately $50 million.
  • Adjusted tax rate of approximately 37 percent.
  • Adjusted EPS in a range of $1.10 to $1.30.
  • Capital expenditures of approximately $70 million.
  • Free cash flow in a range of $175 million to $200 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 first quarter FY18 financial results on August 10, 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 1265259.

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 transactions, pension curtailment, change in value of future payments of contingent consideration, transition costs for the Action Sports acquisition, 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.



Vista Outdoor
















Quarter ended July 2,
2017:
















(in thousands)


















Gross
Profit


Operating
Expenses


Operating
Profit


Income
Tax


Income
Tax Rate


Net
Income


EPS


As reported


$

146,558



$

107,217



$

39,341



$

10,296



38.2

%


$

16,652



$

0.29



Pension curtailment




5,783



(5,783)



(2,154)





(3,629)



(0.06)



Contingent consideration




(843)



843



314





529



0.01



Transaction costs




(84)



84



31





53





As adjusted


$

146,558



$

112,073



$

34,485



$

8,487



38.4

%


$

13,605



$

0.24



















Quarter ended July 3,
2016:
















(in thousands)


















Gross
Profit


Operating
Expenses


Operating
Profit


Income
Tax


Income
Tax Rate


Net
Income


EPS


As reported


$

171,377



$

112,275



$

59,102



$

18,015



38.2

%


$

29,124



$

0.48



Contingent consideration
revaluation




3,396



(3,396)



(1,274)





(2,122)



(0.04)



Transaction and transition
costs




(2,002)



2,002



130





1,872



0.03



Inventory step-up


817





817



310





507



0.01



As adjusted


$

172,194



$

113,669



$

58,525



$

17,181



36.9

%


$

29,381



$

0.48





















Outdoor Products






Quarter ended July 3, 2016:






(in thousands)










Gross Profit


As reported




$

80,897



Inventory step-up




817



As adjusted




$

81,714









*NOTE: Adjustments to "as reported" results are items that are excluded to arrive at the "as adjusted" results for the quarters ended July 2, 2017 and July 3, 2016.

During the quarter ended July 2, 2017, we announced changes...


More