VSTO - Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to today's First Quarter Fiscal Year 2023 Vista earnings conference call. My name is Candice and I will be your moderator for today's call. All lines have been placed on mute during the presentation portion of the call with an opportunity for question and answer at the end [Operator Instructions]. I would now like to pass the conference over to our host Shelly Hubbard to begin.

Shelly Hubbard

Thank you, operator and good morning, to everyone joining us for our first quarter fiscal year 2023 earnings call. Officer. is President, Vista Priyadarshi, Sporting President Chief morning Officer; Chief Senior this and Vanderbrink, Jason Products; Financial me Chris Outdoor’s Metz, Executive Vice With and Sudhanshu

everyone to Before Private that be we in and us Securities several on turn statements materials forward comments under Litigation that of site these looking these we face looking These uncertainties. forward risks the like SEC statements presentation Vista We provisions we the begin, I'll that Chris, to Outdoor’s operate. assumptions Safe making this posted during to risk estimates call, to Please Harbor and for based we investors.vistaoutdoor.com, note our release Vista I'd These today's best non-GAAP the encourage will include of the morning, on information make have Act. statements statements our more a factors reconciliation and and remind Reform Outdoor you. of information looking filings our known industries today. forward to and it which on are which understanding our reflect subject uncertainties measures. review supplement and and you Web today's we press over financial at the

Chris Metz

quarter on planned separation. across innovations strong welcome. our Thank despite product future current key our and Shelly. why acquisitions you, Racing growth Simms seeing businesses, update Good cover the confident morning, lastly, include about our performance, earnings our are Fox planned macroeconomic strong an Today, and trends and and five Fishing, we of marketplace we from our will I one everyone topics, These are which address headwinds.

well long off positioned great balance XXXX economic first in environment. in growth future targets strong believe Fiscal term to returns, in XXXX so is fiscal strong a ample with to and deliver and liquidity, executed despite out maintaining We Let's start while Vista a sheet macroeconomic quarter our free invested challenging Outdoor flow performance. continued a plan with cash a our QX. We with start the is and doing headwinds.

capture execution Our seeing positioned strategy lifestyle in us shifts are recreation. outdoor the and we have to

we by our during continued Although, sales the participation own environment. bump, in not the elevated highly in the pandemic encouraged as outdoor as destiny. COVID that I've mantra with led are control we activity are post the always

such recent can expand continue to you Slide soon we and on we've planned company XX as market be see a with our of As to X, coveted Fox Fishing. acquisitions most brands, as XX, the strategic acquisitions, Racing addressable created through and Simms

in XX maintaining a you number two more we slide can on revenue. As our than category generating multiple also amassed $XXX brands result, will leading number million annual see brands across five. have as one, power positions We're

manufacturer and of generate expected expected calendar revenue and in outerwear, brand a is leading Fox gear, Moving is Racing, to Fox annual calendar waders, this in are Fishing Fishing, fishing categories. lifestyle this generate Simms Simms on their that to to premium in cult-like and and iconic footwear million performance Racing million both a brand mountain revenue Slide bike brands in apparel, motocross, path technical year. year. with X, a $XXX is following global $XXX

two in three, number to grow committed $XXX share and our for on with will we and growth businesses, million-plus to deliver track results, And key number market. XX are one we're three to continue on the our positions and leverage profitability. we you value unlocking shareholders. Slide Before and Two, building continue we want leave One, the today dive quarter's X. into to shown messages I as

results to commitment. this testament quarter a are and full first Our your guidance

XX% driven operating Revenue up year prior new last in segment best largely X% was product sales X. from shifts portfolio, was strength in moving the Slide year, by second our product brand pricing. mix by outdoor In in in XX% challenging declining year-over-year, our by excellence. down environment revenue slightly outdoor innovation we driven higher QX, and outdoor execution and the better Now outdoor $XXX offset posted driven of lifestyles million, ever recreation, accessories. a by demand expected, volume, QX more the our growth and over to Sporting of partially as grew This recreation segment. segment continued record product

you me more are bit color seeing. give on trends a Let we

year of was demand lack higher QX, soften due money inflation. to this and beginning opening stimulus at to the During price points

short However, Within price this driven steady. outdoor participation points, exceptional see posted CamelBak rates we strong golf by also sales to primarily continue higher underlying remain and participation as rates and remain recreation, term is increased, believe we growth products. elevated. at At new demand,

demand. in cooking sell from impacted Our in This retailers are and outdoor brick up platform year position, at and point keep inventory to particularly high was an last medium elevated grills. lower were comps replenishing by year overstock with retailers price mortar low as price

the and an to ammunition rate that run elevated we settling normalization are market, higher is consumption and domestic peak We prior seeing to within beginning a are levels. than see commercial post consumer demand

has shooters who growth both new diversity. culturally but Our and are been for frequently ammo positive. Recent more entrants than and driven ranks outlook more in remains increasing participating The not legacy politically shooters. consuming by ammunition new are driven of quantity

have more have led stimulus in Overall, have we expect We large elections our at Across of the this reduced hunting prices as continue on helmets categories to been bought across which tough see won't price categories reducing points. retailers confident affecting heavily midterm day whereas June, opening customers large even our buy comps or as of bike retail July. demand. QX and several through purchases both inflation strong. this accessories, mass remain categories, and in lower is particularly to QX, creating shifted halting Similarly, in a last impact year in accessories. products to where it new channel also and in in be QX, price outdoor event sell our I'll point that such areas expect shooting year remain note in certain grills and demand categories to in are brands, through was as last our we lower solid Amazon's all spend to affected by extremely open to QX year in buyers higher Prime

very all headwinds. first, Our higher QuietKat Stone believe they're economic latest performing and the dynamics; acquisitions, to these reason including despite as inflation; Fox planned Glacier in reflects planned participating consumers affluent Foresight, We two this as selling are they're more end and growth is we categories, as our of businesses and well Simms less acquired by Fishing. higher which Racing acquisitions second, a affected well key

slowing operating bottom-line. was margin products was of the a a from these points acquisitions historic in the rate strong environment. total the diversified diluted that affords second also flexibility the the in having company margin ever, XX expect expanded offset and quarter on demonstrating history to EBITDA basis our second EPS highs, QX We company at strategic the Adjusted for best highest to current to XX.X%, portfolio legacy partially be $X.XX.

Moving to Slide X.

delivered creation our strong Investor product capital value the at allocation strategy we in out inclusive laid as innovation new May, Day M&A. exemplified from expansion, we excellence, and traction of revenue quarter growth, profitability This

was this in innovations XX, Looking year. more quarter new XXX% are product drinkware, of which than CamelBak at growth. year investments Examples market included up traction on driving Slide our on a

market This cooler media to leading and the strong introduced quarter CamelBak ChillBak series, coverage uptake.

only can With and class in the CamelBak an integrated hydration entered the insulation provide. space soft reservoir we cooler ChillBak, have with best

Additionally, easy reservoirs. we have launched as line our reservoir to our with a clean fill, to as well hydration to new cement such The universal reservoir features, fit. key in easy position Fusion Fusion lightweight, leadership as continues

are consecutive camping over million by expectations. XXXX sold increased during X July, DXC, CamelBak exceeded from Apex digits with Apex million prior up Grill led households first growth households posted XX% the in the in Chef For a were XX which added sales during Lifestyle first which Camp strong The time Camp year. year. embracing camping. year week. out quarter were the camping double There new Chef stoves the shifts sixth launched year. Grill active

the featured best profile the in In market. Apex a in covering Journal Xth the Street Grill fact, on was Wall the grills of July

Apex than supply of more game favorable chip demand, monitors, of driven factors. consumer launch level changing launch supply. recently planned pack launch October data new game, Sales XXX% and Calloway exclusive the including and innovation. personal prior year larger with Topgolf on the monitor, to the Foresight drove reliability. and grilling Keep the consumer strong surged Giro reflected lineup Camp monitor shot success in in XX another changes of with Xst. on partner, all their more cameras. Trail is our chain launch CelluCORE our by cameras eye by there's Chef technology growth and at over new the leading trail Bushnell’s Snow part growth up as their than quarter, the product a procure the highest XXX% an with yet Foresight for year. because quality, accuracy strong named ability compared GCX strong demand the innovation year, continued delivers While they're as the driven

with Moto space, stronger showcasing and driven where the in double In Fox products, our Bell and by that a line are new the of one the by to Bell one sponsored success building supply solar adjustable integrated most we such consumer driven brands other chain dual addition, on Racing. athletes, extensions, we order social with media the by in capability SIM two outlets. strong up new an efficiencies fulfillment and led launching momentum be are This panel. performances are demand, as and XX in excited to with was category exciting gear Powersports digits traditional

to moving Now XX. Slide

organic commitment of The strategic trend and so As in leverage and are future the while low capital a ratio. and shares, to make to maintaining do the early we to excellence repurchase above innovations allocation. our result committed lifestyles invest I've to flow cash growth, XXXX, drive leverage shift this and began in described to just acquisitions

that XXXX. on shared value first like your in Now I'd Slide turn to we you to with calendar creation attention the framework XX,

that With several have we recreation. in while term into right these delivers each us successful use this the biking. on accretive platform are to will our Fishing, one and all into and enhancing ability brand leadership in pillars stakeholders. across acquisitions growth our positions to strategy we believe can bring deploy of planned categories, of with opportunities as growth continuing apparent. most the implementation leaned we We sporting expand legendary motocross Simms create long passionate became address acquisitions, the outdoor we for Fox mountain we With capitalize term and QX long With to of to value a bases fishing acquisitions, Racing, opportunities

quarter, are we rising as operating in first We're the strong taking businesses challenging actions our inflation eroding interest incorporated more us our risks. time. a potential and much dynamics guidance the to known on acknowledge that environment While and of mindful impacts with expectations these We as mitigate we consumer reported sentiment. we we are a this rates, recognize well with and at into to have visibility

several our levers our including product performance have shown Managing absorb controlling name offerings to across portfolio managing on diversified optimizing pull, can brand and to we a in We and allows a as portfolio. costs competitive inventory, advantage us slide few, is XX. fluctuations a

lean decades our a firmly built cost help the theme the driven years place future. in We flexibility the in enabling to we've two quarter, pivot the us remains of us right a performance summarize for first teams quickly. our And place. past with industry the structure that's experience organization nimble in navigate with To to the have

talented outdoor results our team flow to and Our new of our strategic reflect sports brands, and markets. management generation, our workforce, and continue strong products, recreation innovative the execution strength cash

models are track we about the business approval company's ago. on and despite rationale tailored nearly confident year unlocking demand strategic the that our outdoor proforma of environment. Both structure by calendar remain We billion product capital value on segment we across the Moving activities. on will capture both a annual days and allocation in Board space. to to is With announced also well companies confidential regulatory Form-XX spin XX current separation holds business one based nearing strategy largest businesses as true Today, registration to that and just respective and the there off consumer spin products with positioned X obtaining also a on three approval offer brand will XX, capital outdoor so, for our including regulatory to items with of support their a portfolio preparing Each and of compelling to are sales, do by SEC, will approvals, other the filing the statement each To the in Slide opportunity diversified the goals. complete lifestyle Form-XX in the and variety gating companies offers be SEC Directors. XXXX. along a final term Outdoor their of each have investment models. differentiated long distinctive shown

I further As to separation unlock previously we shareholder mentioned, expect the value.

transformative with the the hand real. like economic was The it the Vanderbrink, of to sporting important to will and start performance. acquisitions separation I'd products We financial to and course successful Fox Fishing. and understand Simms both I detail, stayed negative and on planned over fiscal few who in announcement thoughts. execution pressures more Before Racing Jason ‘XX reiterate a macro discuss We are

grilling pressures seeing seeing our Despite advantages macroeconomic ever. to backyard and experiencing at than customers, are across ammo lower Target demand the normalizing. in brands. Walmart. secular headwinds all We're key including We're companies points facing, stronger in slowing competitive We demand are and that are appears downdraft be and price fundamentals our

We confident term remain continue grow ammo as about normalizing to at highs. demand new our opportunities is to long

our our bottom line and new the increasing Fishing opening diversifying driving acquisitions affinity and for while enhancing the Simms machine and and Fox price product TAM. expect Our are brands. we faster, is Racing growing do our innovation our top Past replacing And same. to points talent, portfolio

by Jason. us financial free continue sheet, thrive is the scale future. liquidity. supported and I'll Outdoor. And that, value challenges, it impacts labor weather execution Vista tight Our of chain diversified to healthy in versus unlock With with cash into and inflation, a unprecedented supply now environment competition. is can industry these balance driving size leading unique to portfolio leading and flow ample our hand brands as win and not believe are constraints strong to our over of generation and the market we performance, Today's provides We Jason? to the

Jason Vanderbrink

Good Chris. you, morning, Thank everyone.

products fiscal prior XX% sporting year. the set a in Chris delivering As quarter, in million $XXX mentioned, first from is the a revenue, which record increase

implement few orders our Note Our quarter due large higher was also than reflected for brands. shipments the bottom volume to have in, sales fill the shipments manufacturing of year. consumer timing low improve performance higher invested commercial our along continued been to resulted delivered growth the aligned profit. this in year coveted the savings expected volume It also with higher said, and see of and the for over demand. ship impacting pricing. We demand dollar that well XX% we multi-billion has In optimized driven shortages our in by amount backlog. driven finished quarter. market improved drive as million These and operations higher goods We've leader to of efficiencies, was channel XX.X% improving compared low rates still XX% to business. in and inventory production quarters. across able in strong gross quarters. translated upcoming EBITDA we that long That prior changes primarily leaders turnover improvements to we've we operations on the inventory for by and are a the Labor the cost up to line the EBITDA to XXX over projects are as year, we this continue the clear next we've also low cost categories are the margin

to As a come. a have result, for built I feel strong confident that foundation we years

that prior of will don't the new Although, post cycles. last higher than suggest to of peak we in have we we demand experienced structural the levels levels changes persist, be in demand years seen the over anticipate couple the high that market

Army at will result line of Investor changes profitability externally. which business replacing positioned $XXX we key mid-XXs presented our low fiscal we to The in believe EBITDA From in today our made the than produce that been, the both HEVI-Shot. have deliver sales with ammunition sustained sell and include: to Remington from transformed higher less ways, are price in have in behaviors. ever had Lake in the significant have internally Ammunition Day. we cost, categories, are brands $XXX from rate acquisitions we company XXXX, ammunition industry or much ammunition that acquired are of point The over in below year revenue We Remington, irrational stable and pricing which we in our and more margin we better to we million Plant with million both With two these at who led much sensitive. the close City

much more profit with We OEM margins. agreements at have customers secured primary favorable multi-year

We are leader expansion. installed shotgun ammo large future in non-led the shooting. youth With HEVI-Shot, clear the of shell base for acquired manufacturing in we leader a with

Anoka, have in in every modernized of cost Minnesota factory aspect We out manufacturing. our to take largest

We major overhead favorable more our and aren't past law in prior pricing contracts have any two and the And years. than factory enforcement government a we have we in added half not improving secured efficiencies. much years. at And done

Our running CCI thirds Remington Lonoke, in levels and plan. Federal at is the our facility of efficiency roughly Arkansas two

of demand shows it's consumption well safety five to consumption. our are more that years new personal prevalent include those data However, Today, respect target table to firm, and change plus the was users and and they're ownership, years, field historic market XX external driving three to round Federal respectively. Super Carry contrast, which South in purchased high a the cost Ammo that expanded major efficiency much its of our shell by home Remington's overall research million all clear By diverse we growing a A active are rim to the significantly. piling in high as products, interest matching one by and Externally, nation's role Core-Lokt historically load, sub-brand and from reducing movement, levels activities firearms innovation market the grown tip, With recognition. fire the changing behaviors. a Federal’s see shotgun XX group driving played consumer new ago. rates two The ammunition recognized participation before. most ammunition, recent well. most with and are stock much as levels. has increase purchasing and path important above outdoor is Associates, and that about for CCI drivers desires Blazer increases owners Politics study handgun structural along in than Lake past of consumer over more and to reputable outdoor rifle most have per recent

actively we’re to of the I'd operational Anoka food quality supporting and need, hardworking teams close, services successful delivering significant for and oppose it like high that, dedication to for like misguided in We Sudhanshu. $XXX,XXX is the of honored I'm Ukraine, organization. more our hand Police recognize Department and to the raised I talented and Before the causes Pitman program. our our is lead people represent to to terms attempts community. and as conservation excellence. working to great I'd also Robertson our Their our across Trust hardworking of relief I'll this over platform Wildlife innovation performance, recognized recognize conservation each and across Minnesota to eliminate leader families than why in the most humanitarian recently Fund, business and wildlife country's industry ammunition brands. products in culture With

Sudhanshu Priyadarshi

prior in our our unless adjusted Both Thank Web be site. results as noted compared focus reported site and are and and the you, earnings comments included release morning, will to otherwise. on period results and My on today Jason, Web found can adjusted good everyone.

and the XX% in EPS more flow. second We best cash and and sales, for than to growth strong EBITDA sales ever. generated XX. quarter quarter posted Slide delivered in Turning we Overall, record our profit

profitability prudent quarter to profit million Total interest to shares, XX% EPS $XXX XX.X%. than XX For sales increased leverage. to expanded approximately to rate XX.X%. ever more higher and by EBITDA and Operating X.X% as the strong Gross a tax increased expense. EBITDA percentage $XXX expansion, XX.X%, points points increased by $X.XX, XX% sales was basis higher growth, to million. quarter, was driven second increased basis cost and million, management. $XXX exceed XX% driven operating a gross profit slightly XX points expense sales offset roughly down margin X due of basis increased to to $XXX the million, a by gross minimally QX decline lower margin company outstanding in to which XX%

XX. Turning to Slide

primarily remains driven strong. debt sheet $XXX million, acquisitions. Net year-over-year balance increased Our to by

quarter Our to liquidity million increased $XXX of end. as immediate

Our debt X.X ratio net leverage times, below target our ratio. declined to

Racing the times. we capital X recently Slide ratio which and With roughly X XX post-closing times, allocation ratio is expect our a our announced Fox planned within of highlights Fishing, of leverage target to X.X of acquisitions strategy. Simms

to Over strong the a meet has past flow generation four enabled capital priorities. allocation our cash quarters, us free

to invest sustainable Chris growth are We are profitable continually organically. driving investments These and mentioned. as

long portfolio, diversifying strong we further our of same return X% for stock, total are expect will our At We our have the that and return term. acquisitions and we while leverage. market user the addressable repurchased our new over Our drive generating time, investment base. low end broadening shareholders evaluate the approximately highest maintaining

Our in four over sheet solid has performance. strong financial the financial and resulted years balance discipline sustainable a past

a term profitability. we Turning growth strong businesses XX. acquire Acquisitions driver, strengthened to our with value and brand Slide portfolio key add our adjacent can drive long improve growth in portfolio spaces, complement where has which and to are

the on allocation as before have our billion how after and are sales. not we to approximately separation, the separation. in products move capital further pursue we segment’s will material we with acquisitions annualized the We Before discuss created prior thinking in I anticipated to outer scale to expect result, do any strategy about $X.X

Our primary opportunistic paydown repurchases. share will now and on debt focus be

be prior times leverage business, products further maximum X range spin, to the reduce We to our X the our times. to we leverage expect end ratio our expect ratio between for the to target X Post of [remainco], spin. to of low X to sporting

leverage to paying to use is our plan generation XX cash within [reduce] XX months, Our to X less to dividend. times a strong ratio while than

ratio of for X times a or business product outdoor our that spin. to Spinco leverage will expect X have We

for comparison, five our two over since on Slide let's to Within power have more outdoor segment acquisitions year X% agreements was and CamelBak. ‘XX low stimulus turn first fiscal Outdoor announced QX results last driven added XX% our benefited driven year environment strength were acquisitions. quarter higher to XX. fiscal we in $XX XX% and QX accretive purchase to leverage declined ‘XX average In by replenish expense outdoor ’XX. a year lower and product Sales channel flat, in than to lower recreation profit meet accessories Outdoor up and declined primarily inventory checks, heightened EBITDA remained Gross to driven to compared higher year. legacy inflationary and and by products, and million, to to sales related selling sales. definitive offset fiscal reflecting businesses Now compared demand. QX up Golf brands. accessories growth higher by higher supply costs, due and margin, lower low XX.X% chain transportation operating sales by freight SG&N in acquisitions outdoor costs

XX%. costs. margin by products. to to year volume sales million. driven increased and to a Sales due commodity mix XX.X%, Gross profit margin ago. XX%, freight to increased slightly $XXX and XX.X% to from XX% sporting and EBITDA EBITDA Turning increased contracted declined higher Gross price. higher primarily

our for outlook. XX Slide updated to fiscal turn XXXX year Let’s

between and year For in X% $X.X billion, sales to $X.XXX range we $X.XXX the increase billion midpoint; the billion between and XX.X%; billion; over XX% $X.XX; EPS in to sales $X.XX $XXX full to sporting margin of adjusted and year product $X.XX range the adjusted million expect billion of year, $X.XXX billion the to free EBITDA up cash $X.XXX fiscal million. $XXX to between sales flow to product outdoor generation at to

we to to and $XX quarters Fox million closing million to expense Fishing. assumptions. guidance Racing our last interest three the includes our Furthermore, following Simms in fiscal as to increase year, expect upon We $XX look the

levels For reduced QX sporting to goods inventories have mentioned. products, low finished very as Jason record sales in

working efficiency also rates, at are turnover employee and labor Remington. through We reduce higher shortages

QX aligned quarterly a to year we full be sales QX average fiscal As in sales result, XXXX. with more expect in through closely

driven see to strength continue and our we performance product, executions, new strong outdoor by product CamelBak For in innovation.

reduced however being year, expectations at are will opening for prudent long fiscal points. visibility price We our how the with our inflations higher into consumer impact given

benefited in inventory first to We expect ‘XX, in QX sales outdoor line with year loading the sales fiscal be half toward year. by expected the as This QX, of reflects second Racing as Simms end decline well in QX with last no both continued growth for Fox products also which the reflecting QX weighted macroeconomic quarter and and of later than Fishing pressures. of the closing

QX be QX aligned. expect We and closely to sales

costs. have a In to to note tend quarter. that our seasonality is cost experience addition, further few Overall, QX it our and Simms Racing be fiscal and will over past would we in to Fishing continue important evaluate higher what Fox we years optimize maintained lean structure to the opportunities

We risk. are control factors measures taking proactive on our within to further reduce

you, We are confident about Thank everyone. our creating. future and the long are term value we

up Let's Operator? questions. now for open it

Operator

Eric from Instructions] Wold Our question B. comes Riley. of first [Operator

Eric Wold

couple Sudhanshu, quick up the two Appreciating latest the guidance. a and on from comments. the to your just guess, contributions questions follow I acquisitions

the You that more made seasonal. comment QX they're

‘XX the level there's sales a in of ‘XX way proforma just baseline of Is less there of kind Fox, contribution kind and trying give the kind sense between to the So a change of obviously assumption average rolling a there fiscal your of of us Simms, of of some between assuming business sense Foresight, two. took kind straight a year get both my Just is delta that fiscal the half sales. someone of you periods? back

Sudhanshu Priyadarshi

pieces. of great it lot This has moving a question, a and is

and As closed Simms. Fox haven't you know, we

end close QX. of to sometime We expect by

higher half be dollar So QX. in have will number in second term and we in and for outdoor in we product our Fox Simms benefit will that's seeing and QX what where

year million We in growing you last it last a in that's us closed helping accessories and seeing business. offset we year business, Foresight, we it. roughly $XXX the decline grow large QX, was outdoor a

we helped look year. till X%, Fox Foresight, by was and helped it's saw proforma but the so only for it hard to declined this -- you're So Simms it math we close

Eric Wold

will ability talked guess, whatnot sales the the of and Jason, about not or million math, remaining you then landing? pause something supply demand your range sure I Is the market. shortages that terms to, the quarters? $XXX question in range side. into that for around of consumption the drop but where million that And Is three would from and POS I do for labor give ammo thought something kind through some demand? if on side the sell $XXX on is for if more to You the you you Or seeing the

Jason Vanderbrink

finished to goods $XXX we pointed delivered we had When the our right script, now. is low in million, as inventory very

of year, look we being being the I low labor see an to kind rest we year what right shortages our for at going them. of should the think, frankly, relatively look when now finished inventory rate we run from want goods to at the So where fiscal due ’XX and on forward average did we just

Chris Metz

Jason's too. inventory Eric, to position. Chris. this I is would had add comment We a healthy

QX. were fill bit able elevated we you why that's to more the business. of a products for in sporting backlog, And So saw will, the if you numbers

Jason Vanderbrink

we're two like full, much is we're seeing. less Eric, add to market the unlike really Not as and that's XXX as rifle what we've why also seen onto quarters -- on last what that is category. And far that, reliant for small

the is where the going in forward going one demand most growth the number leader is clear where category are we forward growth the So in the remains.

Eric Wold

terms it out? the sales part or shake really Just is driven in supply demand just way any in in where so will your to of confirm, driven

Jason Vanderbrink

clear we're the one where supply. is In number our certainly leader categories

Operator

of question MKM partners. Our Stember of Scott the line next from comes

Scott Stember

be the higher going like talk about elections? Obviously, course are environment even pricing just expect normalizing, you about through things next we're you out the plain. but Jason, sounds to ammo. the midterm the things year, take question, talking roof you a keep can't of on over the much if how it forever Could First

Jason Vanderbrink

in some As but far our arena, the as biggest demand seeing the small we’re the XXX, the in most advantages Again, market. price seen small we pricing, on share market categories we're seeing any on where haven't the market. that a pressures degradation the player with rifle we're relatively

Scott Stember

could its obviously, out, if that you about this you their expect And order cut intake the some hit of talk hit run second when bigger quarter, mass timeline and leveling that to overall talk to then it the of some the but have over ordering. to the because going comments of course? process you Could about probably quarter of merchandisers that's would

Chris Metz

Scott, cities. bit tale alluded a as remarks of -- Chris, that it's in two we alluded prepared of the we

you've that So the price the merchants more is SKUs through inflation. by that lower point -- mass selling are got demographic consumer affected

the as all to more our demographic the But sports And end mid and affected accessories It of products grilling -- point consumer sell where load so and Chef. a of platform lot action we've got of and mass, our so we the demographic where our affects our price our of have in to ordering business. acquisitions it some resistant, given your customers on the a frankly that much. point, hasn't deal recession that in of But affected flip just outdoor overall. timing the inflation in great inflation much the higher Camp affects helmets our side, terms our stopped

to heavy report Walmart a saw get and promotional they're you down So more position. inventory rid of earnings

So its pretty much typically demand of couple even that way pretty stopped and our before quarters across work out. We've categories though still solid. to affect in was the board of us, it a seen a lot takes they this

the pretty So half categories you up to start expect in rest we of back for pick of second to we've been QX the to and we've then the year some where suffering. is way should these similar the guided in look QX,

Scott Stember

framework deals the measure just updated of core a contributing better guidance. not that's have little pre-acquisition the give two last or closed we could guidance? So businesses. But I then last could us to And question, just yet. a a of much your just on bit how the appreciate you

Sudhanshu Priyadarshi

$XXX assume it of QX, closes you roughly end will be in it on plus that we by depending close. million If range, when

So to We that's X.XXX business. product the you math for do X.XXX. our outdoor should guided

that business you take and compare you much from roughly when in we're see reflects million $XXX out slightly our If of QX. flat, QX, you ‘XX what -- seeing, But the fiscal M&As, is growing growth we're all seeing will these from that reflects all these macro base or is XXXX. challenges and

Operator

Our line Capital. next Koranda of of Matthew question ROTH comes from the

Matt Koranda

your well, expected of do EBITDA just helpful with contribute? guide versus Just prior reconcile it'd EBITDA what if Simms to the are Fox be midpoint at to as you outlook same Sudhsanshu, the maybe XXX could and the thing kind the and curious,

Sudhanshu Priyadarshi

leverage, see or efficiency, not guided [Technical and and but months you much first as the meaningful is year chain from you in math and do cost six it's not labor product QX six ammunition -- math of that supply growing as outdoor haven't but when EBITDA, months not similar and Simms margin business, onwards, can you on there we operating six as contraction last a Difficulty]. math see it higher from Fox it's close. our our product Fox sales It's business, higher base in will depending gross we do you months the because for then also mainly for cost, on it's Simms watch. meaningful, we because So their -- and costs the reduced business, that first continued can

Matt Koranda

is product put on And could supply like maybe constraint Federal? how if point side like -- guys allude you But at Remington a wondering Vista Jason, core the and brands within did then constraints maybe, versus much finer there's to on -- supply on the some not it the sporting your some Remington. segment, maybe you inefficiencies of maybe sounds

Jason Vanderbrink

that [Technical out categories We're none Difficulty] not it's going is, factories most of factory, the by to where the safe to our you know, [Technical it but say in Difficulty]. break demand demand

on it's categories So it's we so side, where a throughput on leader. the just on are much one an number efficiency not clear side

Matt Koranda

year. pickup fiscal product mentioned back in And of maybe the sort last outdoor within load for half demand, for segment in potential one especially you of in then the the Chris,

the in to pickup what the the we in curious customers, some a you terms you of what of gives buy indications visibility half confidence of that year? your fiscal have back Just open retail there of say from to sort see

Chris Metz

factors. So Matt, a there's of number

two a in we in year is where last quarter in loaded quarter particularly outdoor are one outdoor us really customers quarters quarter think comps our our business, accessories first for products difficult So and two. one, bit and more thought I than

So to it's already working system. way the it's that’s going -- through

lastly, activity, some general seasonality as seasonal highly just of particularly Secondly, early of of Snow. you've is particularly you move got periods. products And in in three, fall we contribution encouraging. of got new And our in, the coming the then hunting some the and into indications on then some in Golf

Operator

of comes from line Our of Sundby question the next William Ryan Blair. right

Ryan Sundby

on the close an could and that any acquisition [Technical opportunities Chris, with of accessories of versus entry I and brands be something just about Difficulty] like maybe some that's there think contrast and great. risks here of I Simms some wondering a other category like bike more and fishing. to seemingly approach was how if maybe guess, your a new you color first fit for Fox you compare would the growth and into

Chris Metz

have So -- well. to both lot are point, of your them some of have differences and Ryan, as a similarities

the large in So bring let cultural the world participate similarities. markets, have and they're and theme to if class consistent fit. TAMs me increasingly will. date, all made their we've one team a great at and acquisitions space, other They faster talk and management brands growing following. look the When all acquisitions first cult-like in the iconic they're about we there's They across then number you

they're excellence and we've that developed. us and synergistic the complementary they're of allow centers So leverage to

a the made we've most since Remington. acquisition is Fox Simms Now between differences a Fox highly synergistic, is synergistic the and it's probably

control to believe within think there. action [space], you we our The we will own opportunities continue great. It's a trends when are grow. business So about really destiny the can't that

looking book pre-order terrific. fall into is Our

control no on but Difficulty] side there's the grow to reason this destiny to well. shouldn't that business, [Technical So as believe we we're able cost to our continue

we the more forward of that. be one Simms, integrating couple So we over we'll but we'll years. be be as next excited quick a exploring couldn't That's not look it carefully for K.C. about built team, the terrific What is he's the in Simms. is space. his most Walsh and [fishing] easily Difficulty] has it a the done [Technical opportunity brand team iconic

we've really of platform been, opening couple the with into fishing studying of a we prepared more commented it, we years, get play so we've really really, over space remarks the it. wanted digging if it as targeting previously last it and better, to comments, could. on into understanding And been I've But

And they strengths they much as so us landing just as we in will provided Simms them because them, use they to for where could. and that a opportunity. places just love them couldn't hope that to leverage And grow perfect they leverage continue they know spot our as

lot add will terrific to of value them acquisitions a Vista both So of are just we that think Outdoor.

Ryan Sundby

a from sounded to I of it ago. there a just just, part and versus isolated demand of quarter and the about [actual] on broader that is had to this then Is decline the to was softening products points way earlier? maybe checks there price an big products, And help stimulus you due for quantify like year how guess, some quickly the maybe impact talked certain that

Chris Metz

consumers. unemployment what's I country would baffles I and is -- price kind affecting people the of in think that is view the this really sensitive So category Ryan. of very interesting is a our of stimulus lot And checks more low.

affected mentioned before sensitive. have the So affecting jobs, see checks it us some and or inflation affecting at without you, the stimulus has those people sociodemographic I so have price more lower of as good more them end categories of are but wages, earning they're market, what so and that we

Operator

comes from Smith next line Street Lake Our Mark of the Capital from Markets.

Mark Smith

in the still business it First, at backlog little of sounds just bit. a just on you've ammo kind Jason, wanted dig multi-billions. to like confirmed

of kind be why versus much next -- three to over the so trying look down that strong production maybe level? at would quarters Just if would will why volume we of QX reconcile if a flat, be pricing would backlog, down, production

Jason Vanderbrink

we had goods inventory had we lower As much than is finished expected. our mentioned,

output quite get and So to get. our where efficiencies we at we had that expected factory didn't want

we as you [hopefully] a demand, finished equation, healthy throughput mentioned. side see where demand So versus good on the inventory nothing had

Chris Metz

to bit it. So let add me a

to able more dig good detail, to to because in some start in be and open as if our up whip inventory had raw position the the businesses do and you routes the see products of relatively we finished you're of dig guys a the really you into what ability the Jason into pond As healthy. to that. said, sporting just versus drained QX, materials But kind and little you, have we bit going

hey, been, we're backlog, a if And we're to ship to so Jason's has that. going do listen, able mantra

the that in So we well quarter. did first

tight, efficiences really within is is a Now market. talking tight labor what Jason about

got So when got bringing geographies new we're it over. that's manufacturing, where labor, market, you particularly a of in these turned in labor you're tight labor some some you've

And so they're [another] not of will as efficient quarters. as couple they

you longer little great versus bit job So efficiency rebuilding that some going to But finished our simply that Remington, higher to take the of And demand. plants. reason if quarters, our get that's we be doing for great, to them a original They're particular, inventory the a goods supply plan the is to two the other in lower will, expectations. we see in output. to it's

Mark Smith

kind there retail And any retail fire as kind that center plant? look and inefficiencies from but Are shelves there we of shotgun, more at the of some come demand inefficiencies that's rifle over there. changeover perhaps inventory look that in in change nine come at also are with trends millimeter or out to

Jason Vanderbrink

what what there's rationalization, to some the years be we Mark, whether changeovers make minimize what during lines. it’d certainly are, SKU last on products have five worked we

we're much better off a years ago. than basis, go forward we five on were much, So

throughput on efficiencies getting up, getting out OEE and up. getting Just changeovers

So and kept we certainly a a eye on these steady that have years. during past two half

Mark Smith

we as big think about trends. of kind picture, consumer then And

of than about You maybe kind Bell Giro? you points, of Bell within. the higher so, price that points talk an end about that for on quarter talked be would during saw guys versus Giro example perhaps demand the weaker it if being trends you versus price entry the And have can

Chris Metz

about interesting mass brand Bell of of lot category, distribution, channels think a is motocross what's and Also as higher mass a the the brand, mountain are demographic. us one of part of a which their is through leaders selling biking in Mark, big So Bell helmets which business. it of the the

really two. or level another down to be itself in taken Bell So needs

So are right nicely. this into built we've got a upside of now. really down we've stuff mass got course, that guidance. of that's All pockets growing is And then bit channel Bell really, our our

Now a sociodemographic. to sells predominantly higher Giro, Giro

well. So that fared has

see about the high you're we're because rates a people the want the price the participating our and to Camp up see or for to still say lot country. XX% biking continuing And camping, with that slowing we thing Chef. that by were and why points. backyard But back are So participation are parks we [Technical encouraged sales We one said though, highly I about talked the that's people talking grill consumer very visiting in road we opening do trends [continue] is Difficulty].

with issue this So think term to be the soft. that with going is a continuing we don't opening point to long price categories be

of start it start we'll of those think level as will it replenishing some we to our to retailers we key is fix Some categories, go as that forward. it. But

Mark Smith

one And the for last me.

direct Just consumer during to can about you or guys talk e-comm trends quarter? the

Chris Metz

affected So that our consumer. in some affected way direct the to in brick same strong Obviously, direct to also mortar of the get total. consumer and business in be categories are to continues

grilling business DXC. past little categories So we've camping a grow in in of and up slower, strength that a point made continue mid our bit price the platforms the other to was where of opening but in by sold some lot

Operator

Our final Hardt. Jim of from of line question Monness Crespi comes Chartier the

Jim Chartier

more the about little think, for platform talk the bit goal I that the Foresight partnership of I $XXX was the million getting Topgolf. terms in towards, What mean do wondering a what over with if could business, that does you you does for time?

Chris Metz

way like be increase. I partnerships big as up that. would much characterize not a size of don't It'll typically it's nice. is We dollar the But

in the really their gives halo it is When top But fitting get locations. you brand. what's other Foresight this a working you now. We've the our get So with it get have a best into the group long the exciting Titleist costs, brand into Acushnet's we've it we'll And effect Calloway, with that locations, increasingly get some wasn't we'll the top like platform guys we'll technology. for well. TaylorMade okay, time Calloway as been says, working the just been of

exciting. got guys terrific so credit that's we're the partnership really on. bring want to best the was third you've on and why to use going big And to technology, come we the announcement So say, you, to Calloway's board guys to one you

support in every we're build with we relationship going can. so them to them and a way And to continue

Jim Chartier

that And ‘XX, you're said think deal accretive be and then I the FY Simms, until integration. won't on post mid-teens you a margin EBITDA forecasting

do then the margins kind to those building do know I you need organic of fishing up And mid-teens. of you guess the to acquisitions a kind do to that. mentioned what bring you What's to So planned platform. versus

Sudhanshu Priyadarshi

Sudhanshu. this So is

excellence, the Simms. will and a as we value, new of supply have center we to more It's e-commerce things, platform. that's more there’re lot where you lot synergy two chain a So with and know add with

get billion being of you our of a benefit, company. bigger excellence it plus of the retailers So relationship plus they we will X most know center part call our with

EBITDA So margin. they last level. those of us lot are get made for to years mid the investments the to teen couple this of things And get to help will that

we grow will more continue we So the see as business Difficulty] at [Technical leverage to in this level.

Chris Metz

had Jim, Sudhanshu's too question platform. to the And just to add a fishing on you about comments,

opportunistically a purchase. and we've manner. we down prudent And at We'd like take really got up pay can is opens And our for to very a to in total market future a at look it though in stated, large addressable leverage continue this low think where that debt, we down us. the secondly, as then point so repurchases a to share that's even nod have strategy go that allocation to capital leverage. But we

just but to future. Simms down we funnel out not have the building looking So the that to that's going that in of ignoring business now imminent. continue And anything M&A activities and don't we're path our we're right

Operator

no gentlemen, thank I'd and to like Ended at time, as Ladies Abruptly]. this questions today joining waiting, [Call you. additional Thank are for there you

Vista Outdoor (GEAR) 28 Jul 222023 Q1 Earnings call transcript