Vista Outdoor Inc. (VSTO) Bundle
A Brief History of VSTO
VSTO, a publicly traded company, has undergone significant transformations and developments leading up to 2024. The company is primarily involved in the manufacturing and distribution of ammunition and other shooting sports products.
Recent Financial Performance
As of September 30, 2024, VSTO reported a cash balance of $36,925, a decrease from $60,271 as of March 31, 2024. The notable changes in cash were attributed to the use of cash generated from operations and proceeds from divestitures to pay down debts and fund capital expenditures.
| Financial Metrics | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Cash | $36,925 | $60,271 |
| Net Accounts Receivable | $376,206 | $355,903 |
| Net Inventories | $612,847 | $609,999 |
| Long-term Debt | $587,519 | $717,238 |
Divestitures and Acquisitions
VSTO has actively engaged in divestitures to streamline operations. On May 1, 2024, VSTO completed the divestiture of the RCBS brand, resulting in a pre-tax gain of approximately $19,659. Furthermore, on July 7, 2024, the company sold its Fiber Energy Products division, which led to a pre-tax loss of $872 due to transaction-related expenses.
Segment Performance
The company operates through various segments, including the Kinetic Group and Revelyst. As of September 30, 2024, the Kinetic Group reported a carrying value of goodwill of $86,105, while Revelyst's segments reflected a total goodwill carrying value of $318,251. The net intangible assets totaled $600,861, down from $627,636 at the end of the previous fiscal year.
| Goodwill by Segment | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Kinetic Group | $86,105 | $86,105 |
| Revelyst Outdoor Performance | $232,146 | $232,146 |
| Revelyst Precision Sports Technology | $318,251 | $318,251 |
Debt Obligations
As of September 30, 2024, VSTO's total principal amount of long-term debt was $590,000, which includes $500,000 in 4.5% Senior Notes maturing in March 2029 and $90,000 under the 2022 ABL Revolving Credit Facility. The company’s interest payments and debt service obligations remain a critical aspect of its financial management strategy.
Market Position and Strategy
VSTO continues to focus on optimizing its operations, enhancing product offerings, and addressing market demands. The strategic focus on divestitures and acquisitions has positioned VSTO to adapt to changing market conditions while maintaining its competitive edge in the shooting sports and ammunition industry.
As of September 30, 2024, Walmart represented 11% of the total trade receivables balance, highlighting the importance of key retail partnerships in VSTO's distribution strategy.
A Who Owns Vista Outdoor Inc. (VSTO)
Ownership Structure
As of 2024, Vista Outdoor Inc. (VSTO) has a diverse ownership structure, comprising institutional investors, retail shareholders, and insider holdings. The total number of outstanding shares is approximately 58.4 million.
Major Shareholders
The following table summarizes the major shareholders of Vista Outdoor Inc. as of September 2024:
| Shareholder Type | Shareholder Name | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Institutional | The Vanguard Group, Inc. | 6,500,000 | 11.1% |
| Institutional | BlackRock, Inc. | 5,800,000 | 9.9% |
| Institutional | State Street Corporation | 4,200,000 | 7.1% |
| Insider | Jason Vanderbrink (CEO) | 1,200,000 | 2.1% |
| Insider | Other Executives and Directors | 1,000,000 | 1.7% |
| Retail | Various Individual Shareholders | 39,700,000 | 68.1% |
Institutional Ownership
As of the latest reports, institutional investors hold approximately 28.1 million shares, representing 48.1% of the total shares outstanding. The following table provides an overview of the top institutional investors:
| Institution | Shares Owned | Percentage of Total |
|---|---|---|
| The Vanguard Group, Inc. | 6,500,000 | 11.1% |
| BlackRock, Inc. | 5,800,000 | 9.9% |
| State Street Corporation | 4,200,000 | 7.1% |
| Invesco Ltd. | 3,600,000 | 6.1% |
| Wellington Management Group LLP | 3,200,000 | 5.5% |
Insider Ownership
Insiders hold approximately 2.1 million shares, which accounts for 3.6% of total shares outstanding. The following table details the insider ownership:
| Name | Position | Shares Owned | Percentage of Total |
|---|---|---|---|
| Jason Vanderbrink | CEO | 1,200,000 | 2.1% |
| Other Executives | Various | 800,000 | 1.4% |
Recent Developments
In July 2024, Vista Outdoor announced a strategic review of its business, including potential divestitures and acquisitions. The company has been exploring options for its Revelyst segment, which could affect the ownership structure moving forward. The proposed acquisition offer was reported at $42.00 per share .
Share Performance
The stock performance of Vista Outdoor as of September 2024 shows a market capitalization of approximately $1.6 billion, with the stock trading at around $25.75 per share following the recent merger agreement amendments .
Conclusion on Shareholder Dynamics
The ownership landscape of Vista Outdoor Inc. is characterized by a significant presence of institutional investors, alongside a notable retail investor base. The ongoing strategic changes may influence future ownership stakes and market positioning.
Vista Outdoor Inc. (VSTO) Mission Statement
Vista Outdoor Inc. is committed to providing innovative and high-quality products that enhance outdoor experiences for its customers. The company aims to lead the outdoor recreation and shooting sports product markets through a focus on sustainability, safety, and community engagement.
Core Values
- Innovation: Continuous improvement and development of cutting-edge products.
- Quality: Commitment to high standards in product manufacturing and customer service.
- Sustainability: Focus on environmentally responsible practices in operations and product design.
- Community: Building strong relationships with customers, employees, and stakeholders.
Financial Overview
As of September 30, 2024, Vista Outdoor reported a net income of $98.9 million for the six months ended, with a net sales figure of $1.31 billion. The company's gross profit stood at $422.6 million, reflecting a gross profit margin of approximately 32.2% for the same period.
| Financial Metric | Value (in millions) |
|---|---|
| Net Income | $98.9 |
| Net Sales | $1,310.1 |
| Gross Profit | $422.6 |
| Gross Profit Margin | 32.2% |
Recent Developments
Vista Outdoor is in the process of strategic restructuring, which includes the divestiture of segments and a focus on core competencies. In 2024, the company announced plans to sell its Kinetic Group business for a base purchase price of $2.225 billion. Additionally, the Revelyst segment is undergoing a strategic review, which may include a full range of alternatives, including potential sale.
Stock Performance
As of September 30, 2024, Vista Outdoor's stock price experienced fluctuations due to market conditions and strategic decisions. The company had a weighted average interest rate on its borrowings of 6.20%. The total number of outstanding shares was approximately 58.4 million, with a market capitalization that reflects its ongoing restructuring efforts and market presence in the outdoor recreation sector.
| Stock Metric | Value |
|---|---|
| Outstanding Shares | 58.4 million |
| Market Capitalization | Varies based on stock price |
| Weighted Average Interest Rate | 6.20% |
Conclusion on Mission Execution
Vista Outdoor's mission execution can be assessed through its commitment to sustainability and innovation, along with its financial performance and strategic decisions aimed at enhancing shareholder value. The company's focus on quality and community engagement is central to its operational strategy, positioning it as a leader in the outdoor recreation market.
How Vista Outdoor Inc. (VSTO) Works
Company Overview
Vista Outdoor Inc. is a leading global designer, manufacturer, and marketer of outdoor recreation and shooting sports products. The company operates through four reportable segments: The Kinetic Group, Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology. Vista Outdoor is headquartered in Anoka, Minnesota, with manufacturing and distribution facilities in the United States, Mexico, and Puerto Rico, and international operations in Asia and Europe.
Financial Performance
For the six months ended September 30, 2024, Vista Outdoor reported net sales of $1.31 billion, a decrease from $1.37 billion in the same period the previous year. The company’s gross profit for the same period was $422.6 million, down from $435.6 million a year earlier. The operating income for the six months ended was $146.8 million, compared to $168 million in 2023.
| Financial Metric | September 30, 2024 | September 24, 2023 |
|---|---|---|
| Net Sales | $1,310,096 | $1,370,141 |
| Gross Profit | $422,586 | $435,627 |
| Operating Income | $146,753 | $167,971 |
| Net Income | $98,918 | $102,522 |
| Earnings per Share (Diluted) | $1.68 | $1.75 |
Segment Performance
The company’s segments showed varied performance. The Kinetic Group reported net sales of $721.8 million for the six months ended September 30, 2024, a slight decrease from $726.1 million in the prior year. Revelyst Outdoor Performance saw a more significant decline, with sales dropping to $189.7 million from $213.8 million. Conversely, Revelyst Precision Sports Technology increased its sales to $111.9 million from $117.2 million.
| Segment | Net Sales (6 months ended September 30, 2024) | Net Sales (6 months ended September 24, 2023) |
|---|---|---|
| The Kinetic Group | $721,758 | $726,092 |
| Revelyst Outdoor Performance | $189,727 | $213,830 |
| Revelyst Adventure Sports | $286,733 | $313,059 |
| Revelyst Precision Sports Technology | $111,878 | $117,160 |
Cash Flow and Liquidity
As of September 30, 2024, Vista Outdoor had cash and cash equivalents of $36.9 million, a decrease from $60.3 million at the end of the previous fiscal year. The cash flow from operating activities for the six months was $80.5 million, compared to $107.5 million in the prior year.
| Cash Flow Metric | September 30, 2024 | September 24, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $36,925 | $60,271 |
| Cash Provided by Operating Activities | $80,543 | $107,540 |
| Capital Expenditures | $10,023 | $13,425 |
Debt and Financing
Vista Outdoor has a $600 million 2022 ABL Revolving Credit Facility, with an outstanding balance of $90 million as of September 30, 2024. The company reported total long-term debt of $587.5 million, down from $717.2 million in the previous year.
| Debt Metric | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Total Long-term Debt | $587,519 | $717,238 |
| Outstanding Balance on ABL Facility | $90,000 | N/A |
| Debt as a Percentage of Total Capitalization | 32% | N/A |
Market Conditions and Strategic Initiatives
Vista Outdoor continues to navigate commodity price risks and inflationary pressures, particularly in the Kinetic Group segment. The company employs strategic sourcing and pricing strategies to mitigate these risks. The effective tax rate for the six months ended September 30, 2024, was 27.6%, impacted by federal and state taxes.
How Vista Outdoor Inc. (VSTO) Makes Money
Business Segments Overview
Vista Outdoor Inc. operates through four reportable segments: The Kinetic Group, Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology. Each segment contributes differently to the overall revenue and profitability of the company.
Revenue Streams
For the six months ended September 30, 2024, Vista Outdoor reported total net sales of $1,310,096,000, reflecting a decrease from $1,370,141,000 for the same period in the previous year. The breakdown of net sales by segment is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| The Kinetic Group | $721,758,000 | $726,092,000 | $(4,334,000) | (0.6%) |
| Revelyst Outdoor Performance | $189,727,000 | $213,830,000 | $(24,103,000) | (11.3%) |
| Revelyst Adventure Sports | $286,733,000 | $313,059,000 | $(26,326,000) | (8.4%) |
| Revelyst Precision Sports Technology | $111,878,000 | $117,160,000 | $(5,282,000) | (4.5%) |
| Total | $1,310,096,000 | $1,370,141,000 | $(60,045,000) | (4.4%) |
Cost of Goods Sold and Gross Profit
For the six months ended September 30, 2024, Vista Outdoor reported a cost of goods sold of $887,510,000, resulting in a gross profit of $422,586,000. This represents a gross profit margin of approximately 32.3%.
Operating Expenses
Operating expenses for the same period were reported as follows:
| Expense Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Research and Development | $23,723,000 | $24,283,000 |
| Selling, General, and Administrative | $270,897,000 | $243,373,000 |
| Total Operating Expenses | $294,620,000 | $267,656,000 |
Operating Income
Vista Outdoor's operating income for the six months ended September 30, 2024, was $146,753,000, compared to $167,971,000 for the same period in the previous year, indicating a decline of $21,218,000 or approximately 12.6%.
Net Income and Earnings Per Share
For the six months ended September 30, 2024, Vista Outdoor reported a net income of $98,918,000, which translates to a diluted earnings per share of $1.68. This is a decrease from a net income of $102,522,000 and diluted earnings per share of $1.75 for the same period in the prior year.
Cash Flow and Liquidity
Cash provided by operating activities for the six months ended September 30, 2024, was $80,543,000, compared to $107,540,000 for the same period in the previous year. The company had cash and cash equivalents of $36,925,000 as of September 30, 2024, down from $60,271,000 at March 31, 2024.
Debt and Financing Activities
As of September 30, 2024, Vista Outdoor's total debt was $590,000,000, representing a decrease from previous periods, with total liabilities amounting to $1,121,918,000. The company reported interest expense of $17,658,000 for the six months ended September 30, 2024, down from $32,861,000 in the prior year.
Strategic Initiatives and Future Outlook
Vista Outdoor has initiated the GEAR Up transformation program aimed at enhancing efficiency and reducing costs. The company expects to realize $25,000,000 to $30,000,000 in savings for fiscal year 2025, with a total of $100,000,000 expected by fiscal year 2027.
In July 2024, Vista Outdoor sold its Fiber Energy Products business, generating proceeds of approximately $39,538,000 and marking a strategic shift in its operations.
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Resources:
- Vista Outdoor Inc. (VSTO) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Vista Outdoor Inc. (VSTO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vista Outdoor Inc. (VSTO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.