VSTO - Earnings call 2 2024 | Vista Outdoor Inc.

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

Operator

Thank you all for joining. I would like to welcome you all to the Second Quarter Fiscal Year 2024 Vista Outdoor Earnings Conference Call. My name is Brika, and I will be your moderator for today's call. [Operator Instructions]

I would now like to pass the conference over to your host, Tyler Lindwall, Vice President of Investor Relations. ahead. go Please

Tyler Lindwall

Officer; and Andy our operator, With to joining Chief of Chief everyone this Products; Officer. of Thank Nyman, Financial Vice Eric quarter good President fiscal for CEO Executive Interim McArthur, second is Products; call. Vanderbrink, year us CEO morning Sporting and you, Outdoor Gary morning Jason Keegan, XXXX me Interim earnings and

financial have and I'll subject also and uncertainties actual Vista press factors Vista non-GAAP filings risk which at these on materially turn information industries reflecting of materials making we future financial review and us face that no under to you. We begin, note and during remind to you and the today's several Act. These Reform the I'd from posted forward-looking safe will we assumptions are that it to we on more performance, which to provide today, best obligation these forward-looking our statements measures. Gary, uncertainties. Please include we Outdoor's we comments effect of and updates reconciliations statements Before based statements potential the on and we of the forward-looking everyone differ be supplement presentation over investors.vistaoutdoor.com, may and encourage events and Securities their estimates to provisions on make results for like statements. our website call, today's risks forward-looking Outdoor our operating harbor our Litigation this under in to known These our forward-looking statements. these and operate, release and these are statements Private SEC to morning understanding reflect information that

Gary McArthur

would our morning, quarter of fiscal results. XXXX Thank everyone. thank discuss us joining year like you, all Tyler, second today as we and to good for you I

Jason and to the comments to and focus under who to the stock provide sale Products. products sporting on Sporting GEAR, few Outdoor then Revelyst ticker For and guidance. turn to to the trade going same results update branded I'm as our Andy, Eric time Then on Products. the QX segment by next do for will provide my the Recently, minutes, over we followed the of an

one most exciting junctures We at company's are of history. currently our the in

recently $X.XX segment strategic a agreement best outcome in certainty billion. have outcome we payment As cash announced, alternative CSG, for for cash definitive successful value vision Anoka, the brands or $XXX sell led is position a the our in million be stockholders value, entered maximizing for provides long-standing by value in with of the to team, that to Vanderbrink to due the hit believe for accelerate approximately our Sporting puts will CZECHOSLOVAK into stay of We locking our its selling by GROUP, Jason headquartered in to Minnesota, remain iconic and term. Long of its to Products business his will heritage near capitalizing and Sporting American great true sheet term, this business stockholders to Revelyst in of compelling consideration America. manufacturing to this and starts jump and and a strategy company. The independent us its allocation as running ground Products capital balance the will

and increase with market its these government Sporting civilian brands teaming iconic sell CSG, to around will customers Additionally, Products efforts to globe. and the

stockholders be This shares Vista the taxable the cash shares fair not recognize Outdoor this and in the stockholders cash And and closing sum between generally consideration recover to Vista to Outdoor their and sale approximately part tax for time tax million. stockholder closing shares stockholders merger. Vista consideration Outdoor will equal of closing, cash Hill X the of in date. they of shares as cash Vista the basis of consideration a share exchange. the instead the consideration built-in stockholders per at dividend Vista and consideration. difference the of or of receive of to in shares allows will receive the a share they treated cash of the in market consideration of determined This Outdoor loss recognize a they Revelyst gain transaction gain a share X Revelyst their $XXX Outdoor for at total receive is every For Revelyst merger basis Upon and value the as closing. time $XX.XX will of the of loss the transaction, and

Revelyst as share of fair equal new such stockholders' closing the value of a tax and forward, the date. of basis market will Looking received determined each share

repurchase Sporting will all After vote receive subject will are the is stockholder conditions. $XXX is Additionally, any Revelyst taxes, transaction we transaction a a remaining used as whether cash onetime sale to closing-related costs to option regulatory debt, free million capitalization the a of in payment the Slide after down the pay we customary X refer be unable, up be debt $XXX under vote, of to closing of buyback approval deck necessary Prior complete will the share that evaluate million paydown or other a provided. customary shares cash is to expect the applicable and the pending. vote dividend. Please special other to payment share with to for stockholders would laws, stockholders of stockholder of form the immediately approvals of appropriate. The we our and slide approximately and all and after payments, before stockholder cash be Revelyst returned program the while have Products repurchase the our security to to to in closing closing, stockholders flow

time regulatory stockholder closing approvals. Under obtain $XXX.X the if to equal transaction the frame to necessary of agreement, vote of the timing have depend close not advisable vote, the required the failure calendar does to take obtain our to the not March-April in primarily necessary approvals, stockholder a approvals. receipt due of XXXX. fee hold will pay we expect the approvals committed If year necessary to upon We prior or to merger regulatory received CSG million regulatory to is regulatory to have actions termination all

hand We future has work new both Revelyst their journey, Sporting separate are achieve cover will CSG more shortly. I'd about the we who success, become companies. Thank our program Jason, our for as thank for call business detail to Products over what both to embark under opportunities of as on and hard Eric's and us and a businesses all new Products. under ownership able Andy the including excited employees now company will everyone. I in today strategic Eric Sporting our the to leadership, in confidence that transformation into in you, giving for discuss will be it shaping future the will like

Jason Vanderbrink

Thank you, morning, everyone. and good Gary,

the at are of we midpoint on positive of and adjusted are a $XXX trends Sporting rate margin standing, in believe with year shows XX%, for We with expectations. line and were Products fiscal our in and our which mix million, strong are the currently quarter margins segment the EBITDA there are the with pleased we horizon. Sales segment is where second product

Accounting customers. and legacy allow private our in to and Officer, Chief CSG heritage. The conservation expand Officer. in our stockholders, Financial decades believe Al for the to his Corporate As Products our working A X Secretary; and the manufacturing iconic the a pleased of of and for Chief for of as our owner and global This and in excited employees military enforcement Sporting and Gary strategic the and future, shooting hunting us outcome is Mark Kerfeld our is great team bright investments support we law our our grow Counsel industry. opening as Controller to leadership business, our business reach Jeff welcome ammunition our sale remarks, team General I'm and U.S. a experience of American knowledge will Ehrich the and customers Kowalski combined our as brands and of has great mentioned

While to checks its XX challenging a over sustained remain In and market than rates base. quarter, were NICS now higher September, see has grown data continues show million. XXXX the this purchases the participation strong. was with conditions to XX% and user straight in continues months industry gun $X very baseline higher signal of firearms more second we

driving gun buying We from in also consumer have across several demand the to categories has new that seasonal global recent seen continued purchase owners. There participation XX and to million monitoring. due the cycle patterns unrest a been are increase return a significant we

their Homeland and contracts both Security monitor market. To We wins, safety. federal's the of for mission and tactical X CBP preserve Enforcement continue point-of-sale secured and duty contract is national their highest our dynamic Border provide rifles. years recent for U.S. This protect this quality some we customer duty and Customs and supports agencies Customs the public Patrol borders second both level our to Department and The ammunition security the bonded to ammunition chose for and Immigrations to inventory largest in ever highlight agencies.

enforcement contract in rifle. .XXX law Speer the use and secured Department, Gold team The for largest the Tactical United Our Miami-Dade Bonded ammunition their duty also department Police force duty the will with eighth member win pistol X,XXX X-millimeter the police department's a States. for Dot Federal

the enforcement globally. provide to We in federal are the quality law duty ammunition and proud United highest States to agencies

in and trust excellent many communities. agencies serve produce protect that States products our employees United to enforcement Our law the

and adjusted ammunition to additional to level. on forward to year that the continue the CSG, making full best to the work at deliver CSG sale our toward will the in we best continue compete we perform America will to in working goals. mid-XX% customer calendar continue us will with As the the of focus improve the strategy markets, EBITDA XXXX. Thank Eric? and have new expand the delivering in segment team on financial and allow look multi-brand you. presence performance We market to our margins. Remington share, of our highest sale base I ammunition closing into business, towards the believe We diverse closing the to team for confidence

Eric Nyman

morning, good and everyone. Jason, Thanks,

category-defining I During my be and ambitious a a I energized eager chance brands, of to learn of the the employees Revelyst achieve and I tremendous and experiences which I are places meet potential Revelyst, on of to of a have excitement our first maker precision, We exist the to company, they transcending from about locations the left XX at listen saw boundaries look excited hear inspire visited of their tour. about lot recently company. have protection. pride as are and number who to performance collective our Revelyst. greatest the we to their weeks, love. named feeling multiple share At a equip we in amount and a future large this have

pursuit all possible humanly is join for what redefine you We are excited Outdoors. to to in us our

us lead into was I future. As the proud many I mentioned, thrilled meet talented the so to of we employees to and have

currently plans previously Keegan, Vista to As Revelyst the CFO interim Board CFO, as join given and confidence this CFO. serve Outdoor of his and announced, as Andy Interim Vice in high ability in me to has work President position. Andy's

team partner we of leadership outdoor to our addition, the recently leading serving I our the am largest the brands. Choi. and with most Andy, years legal eager Corporate In of our Counsel, best for to e-commerce creating platform. that of support period Jung General house are Jung announced work in transformational Jung we during history Counsel a the experience mission and of Revelyst publicly has company's diverse grocery Boxed, this XX expertise, the over and Secretary the of and hiring rest doing as General advance and traded and

able learned became very was tour, on reflect clear few things a and I me. I my As to to what from saw

First, passionate workforces most in industry. we one of have the the

part most a world's of their the many of company reason that is our of is iconic Second, of for comprised collection outdoor brands. the a passion big

several potential. Third, true observed achieve heard brands team, these to been ways and that not what yet assets and and harnessed have our was I elevated in powerful from their

act game our formed coming them and and will strategy urgency. expand for over are we fully key evolve months, pillars with Revelyst on of a will few the plan While that clear, already

highest on company. structure, one complex simplifying acquisitions Through transformation a model, of new with off inefficiencies from are across today and to has structure, Up, the called inspired become ticker program brands simplified the simplified an become accelerate GEAR kicking the iconic elements. Revelyst together outdoor become causing brands their focus of future growth reinvesting business house time, and creating entire business independent cohesive This are our branded increasingly high-performing over current to one multiple increased another form unit elements globally structure, can that Those X efficiency our will we such, by stock delivering program and company. brands and in to potential transformation. In GEAR. work profitability that As a a as the integrated

through in to to marries global learnings shared experiences. with drive while our products leverage growth company that strong create omnichannel across empowerment human imagination wildly the unlock will embarking that efficiency a execution, of on centers strategy We innovation

Foresight fishing Our goal of within is the distinct first one, business GEAR action toward drive led Two, and Simms, reorganize segment platforms success. Primos, achieving which to with camping, to will of simplification initiative The CamelBak, Fox, our Camp with platforms Stone the most the President create of comprised consist which Jeff will growth hunting. Sports, Up three, and QuietKat and be market will Precision And brands, be highest Adventure include of Precision our X highest Sports a leadership be: Sports by Sports Jon largest Bell, group and Golf, will business, Chef, and Glacier Technology. EBITDA Technology, will more, Giro, Bushnell, Performance, margin which our hiking, Adventure McGuane, of which led Werbelow, well-renowned be Watters and Scott Sports. and and in more, Co-Presidents and which potential by Outdoor Bushnell will

In first that being and us a military, the around our to responders allow of Jordan with our be will pride. structure led immediately. also simplified significant will is the President This group efficiency by brand, professionals with enforcement world within Judd, framework Performance. This actioned program off kick serve Outdoor GEAR Up addition, we BLACKHAWK! law

estimated supply with net new beginning simplified within $XXX specifically and our by our start in the our a million on provide investor as leading our total maximize footprint a by rate for QX realized XXXX, We cost unlock restructuring chain the we an technology will partner, our consolidation in through a Investor powered and consulting basis. Enabled and fiscal structure to annual this signed well These details $XX plan. are of announced year XXXX. related road program million will a of recently and estate weeks an on shows, improvements attend streamline addition several by the this year and host cost of to real million to In will April efficiency cost next savings Revelyst, with run that with $XXX strategic our deal of those XXXX, savings back-office current months, $XX savings about savings in early profitability expect million effort of fiscal operations improvements cost in in initiative conferences stack, structure. Day as more organizational and spring XXXX

the at action of time well XXXX. year to decisive taking are this us We position us up and set strong fiscal separation a for to ahead start

in ensure promotions working are gains factors. front high-priced and season. to channel regardless inventory share partners external market are strategic our reflected we utilize We of to and high-priced intend inventory hard our across through our to the products during with guidance, that market to the driving categories, As work continue clear holiday center

expect back and to of finishing margin strong. Through year half will QX, our the the rightsized. fiscal our be the year efforts from up improvements We inventory XXXX, momentum ground in are sequential QX fiscal building from

program and hold the company the reversing restructuring with organic across few experienced the declines past will strategic fuel growth carrying begin year into line Our us fiscal quarters, XXXX top will other taking initiatives over momentum. growth,

strokes holidays. that and announce on list shave we in near Revelyst all-new game products launch our excited brands. market. Lastly, simulator Foresight our best These for Foresight that with showcases the the to your the to select time products across have I term, in the the off built monitor have great From first Falcon ever am technology range teams Sports, the

around live Spherical styling, versatile modern electric you and culture with you from the with Simms the we the Giro, manage, highlighting we And to that's the video you live QuietKat in Owen offer footwear just fishing town. of innovation on moments Challenger all-new Lynx the for innovations Bushnell all-new the short for purpose-built boot, helmet, the integration lets have. and we premium have around QuietKat of camera scout deck built and our to the you Onex time From you the skiing spots a property list comfort. This season, is wildlife protect. From off mountain all-day the true X-inch the water. fishing trails extremely just the see Target Our and offer take from we bikes, all-new products,

is each You will full find our Revelyst Revelyst product. In future all at be able to of social along our unique stories the our channels list behind and across revelyst.com, the with bright. website, closing,

and doubling hard footprint, consumer-focused our expanded own it incredible investments, to savings, to more towards and as Day have for provide in XXXX. I'll our to gaming on financial streamlining Andy we the technology forward look ahead particularly While the over being Investor a work sports over an rescheduled of our technology area. future Andy, from those will and efficiency building, international for precision to sharing DXC down work months We creation innovation, business spring our you. quarter. do, we the value plans brand within and update expanding hand come to now

Andrew Keegan

Eric, financial you, to comments non-GAAP non-GAAP of presented are financial the of on period, measures. will presentation, results adjusted measures. which to directly In the today My reconciliations these prior compared the financial included the measures unless we've and most slide Thank appendix everyone. otherwise using noted, hello, focus GAAP comparable year

adjustment an the slightly refer connection our businesses, a For reflect than a staff of information as do additional for was previously the what payments. non-GAAP Products and and result financial presentation. Further, to separation results adjusted SEC done forward-looking Page of statements preparation regarding in certain measures, not retention Products of different with Outdoor XX slide please correspondence have with Sporting and

Slide to XX. Turning

line purchasing inventory $XXX pressures for quarter basis was prerelease. million, lower consumer short-term shipments categories quarter, The decline all nearly EBITDA our XX.X%. For XX.X%, to in million, due businesses, down by volumes volume driven margin and continue to expenses lower million, $XXX and quarter our in QX gross Organic was was XX.X%, organic Products and with segment decline and in lower points Products margin to XX.X%. businesses and to gross the partners and offset selling levels points. cautious was Organic due million decreased price down the organic $XXX Outdoor decreased XXX partially by be in a quarter costs recent total in was was XX.X% lower EBITDA basis in were decreased primarily Organic products decreased to businesses. Gross down points. sales profit in as Sporting XX.X% earnings Outdoor administrative acquisitions. EBITDA decreased Products and of the related channel million, sporting the the in second to across the segments, to XXX Outdoor driven selling, XXX and general for partially by EBITDA $XXX by decrease in both basis margin The Products the in and offset decreased sales XX.X% Sporting profit volumes $XXX Products.

Second quarter $X.XX. EPS XX.X% decreased to

XX. Slide to Turning

Our $XX healthy. million $XXX was free at flow our and ratio million. sequentially Year-to-date debt million debt cash to leverage X.Xx. remains net $XXX Net balance sheet decreased is now

X.X%, XX% EBITDA profit, acquisitions. decreased partially to gross costs points. EBITDA Turning in on down XXX lower X.X% basis driven as in points. factors decreased of was $XX million, $XX organic organic segment Gross to by margin purchases driven The be million, partially $XXX to QX, $XXX volumes interest profit EBITDA reduced XX.X%. selling, partners businesses, by to organic million. primarily durable sales basis results offset decreased in decline higher in Outdoor X.X%, Organic QX XX. and by quarter sales purchasing XX.X% decreased due Within QX to margin and lower administrative Organic margin as was consumers short-term were business. primarily to in the from to due down XX.X% by and offset an are to decreased by points channel our down XXX continue other down affecting general cautious volume to related with EBITDA to Products, basis inventory decreased of QX Slide million and consumer million, with rates pressured their to XX% $XX levels XXX goods. Gross

to For and the driven across previously lower year. $XXX driven Sporting a points. basis to Gross and Products, margin inventory announced pricing lower Lake decreased third in price. decreased at lower XXX nearly partially XX.X% profit decreased sales was the as shipments XXX profit, fiscal EBITDA XX.X%, points by selling Gross channel to of beginning was costs. million, XX%. has XX.X% of decrease $XXX million the by margin in $XX to City contract normalized, XX.X%, the prior quarter down decreased QX EBITDA QX due volume offset all basis the gross million, decreased termination of primarily by in categories

program XXXX expect contribute we and from savings margins low XXX single-digit are $XX business, adjusted levels fiscal Revelyst and improvement addition as This said point EBITDA total program. freight restructuring will this costs a related in bring of savings margin. in savings $XX XXXX, These stand-alone specifically Up Eric our estimated cost as operations. expect we savings fiscal to we as approximately XXXX, million in Revelyst related Outdoor QX April rate our improvements Revelyst or year as estimated differently, Products communicated of our million we realized streamline EBITDA $XX result restructuring a to Up be limited million XXXX, to to from of GEAR contributing transformation $XXX our year to actioned GEAR of on double-digit fiscal in cost our to savings anticipate high including has to fiscal the estimated mentioned, expected program, in and million to $XX As April of savings program million the program, as an previously approximately in lower stand-alone for GEAR promotions unlock would our cost supply million basis. In aim to been cost simplify We year that related our an part announced Up previously announced a contributions in million annual well in a $XXX cost Revelyst cost chain, million cost XXXX, our of basis work to immediately help start segment realized run $XX $XX currently as fiscal to XXXX XXXX. to

We including with costs fiscal improvement point mid-teens, expect rate will margin estimated year being cost EBITDA an by today's stand-alone primary estimated over $XXX that driver Revelyst the XXXX, the million of the be basis fiscal our realized adjusted stand-alone increase XXXX, of in the X,XXX run from levels. savings

are XXXX call discussed reaffirming year We the weeks on our conference few ago. guidance a full

For in the range of interest Sporting EBITDA thought expectations and full flow of XX.X% fiscal to Products, believe $X.X and mid-XX% of unrest, of see billion XX.XX%, in range billion demand. across QX. $XXX season do year market the impacted EPS we as year. In billion. provide XX.X% Outdoor and the XXXX, $X.XX adjusted cash for in between than $X.XX $X.XXX interest give election and with Products more Sporting to Products the sales and $X.XXX favorable season year. EBITDA of expense the color EBITDA rates consumer Product current and to softening billion, free be we X.XX% previously were EBITDA billion on high $XX tax expect Outdoor range will We fiscal to in our an in In quarterly million categories. rate prudent guidance, billion we of margins more to although and not the margin result margins million of along the segment to $X.XX Adjusted of Outdoor approximately We range sales remainder $X.XXX start Products XX.X% by million between margin XX.X%, global short-term the Products sales QX Sporting pressured in sales range Adjusted that increased segment, X.XX%. and for QX performance million. Diving $XXX the of our to strong adjusted have to hunting of the other factors would it mentioned, effective of $XX and deeper, $X.XXX the in rest QX the

purchasing the season we calendar down slower to as be for This cautious increasing high-priced pressures coupled to inventory in of demand sell-in, year which work driving consumer promotional year the channel calendar expect inventory causing the our is rest until positions XXXX. and their partners during resulting We dynamic slower-than-expected profitability holiday not XXXX, through sell with is remaining QX. in behavior

our of versus start prior to see be growth expect single-digit will GEAR mid-single the the to Due be sales the the impact expect higher range year. prior as product prior QX readthrough. as segment season golf EBITDA through Up exciting decline and holiday increased our year we digits single high our the high patterns business in by period, favorable to low QX adjusted moving environment QX to introductions digits to of versus in program in promotional driven as to period. The versus year-over-year in growth in year in promotions Sports QX, the in the inventory the and the Action businesses price more returning margins in quarter fourth purchasing reduced single-digit we We in returning new well

in fiscal Revelyst seek GEAR adjusted profitability returning XXXX. in adjusted the improvement we our year with generating high to expected in XXXX, on dollars double the a With Outdoor to stand-alone margin Up program, combined, end EBITDA digits organic segment year QX fiscal growth single basis and which Products EBITDA improvement in to includes

you, start up in well partners strong we Operator, still begin We please purchasing also open fiscal for normal to rates gaining everyone. XXXX key questions. line demand again. Thank for channel and a to year us are the expect return categories, which at positions to market as share

Operator

[Operator of Instructions] We Koranda Matt have MKM. ROTH now

Matt Koranda

you another of understand the to CFIUS now pertains just approval then maybe buyer is as on the that, first to high-level potential steps transaction? Just next transaction sales emerge could dynamics the Any involved Ammo the business. that public? And help with us it for

Gary McArthur

Sure. Gary. this Matt, is

expect regulatory speculation. always to to we to whether in in that to and just that approvals, Board the March, a weeks. kind just it next speculating steps. come With We have for proceed from another ability do the we qualified anticipate we not And a they do other do allowed required those It's there, possible. will to CFIUS have will of evaluate will through be that is As buyers. the of comes obviously, as that We, company, all vote shareholder are a frame, process process. such. if filed forward, the as and the would time that's regards and bid that buyer solicit typically forward, go But coming have April

Matt Koranda

inventory appreciate to retail you just that's been I for then and the dynamic in clearing for of seeing commentary some And favorable performance the weeks. Gary. X.XX? seeing the that provided guess, can .XXX and more Jason, the quarters? in you are that, in pricing? about I What of in couple Okay. how that that next guys And of of distribution the it you terms happening and pertains as does into maybe feed inventory talk we've terms channels recent

Jason Vanderbrink

Matt. Yes. question, Good

ours uptick the X inventory the have daily, and we watch weeks daily specifically, and of X do and seen we've say, last So anymore. tied to we'll POS whole lot weeks, recently, don't we a seen in .XXX/X.XX significantly contracts. their we've last of that is What certainly then Most pretty enforcement that partners. on our categories. literally certainly commercially law we with wholesale much seen upticks an but across all categories. daily, broader We across in And the watch our government customers

Matt Koranda

what more Got sort little segment, higher mid-XX% EBITDA us second guess, help it. provided, sort alluded near-term then means. to in guess the revenue, I the the margin guidance that lower commentary that you might that I of to it and were a that performance, And of unpack in be than It quarter. you then where favorable like you sounds just pertains as

where of So kind just those? us are help

Jason Vanderbrink

Yes.

in EBITDA year. half and and if mid-XXs the of if front, could out items always had EBITDA the little we there can back we we trends market we towards guided third see front. like on a are. quarter, on in think the see I fourth get be what we profitable than control more to some assumed. mix what bit the favorability We've the There And that

we guide quarterly. revenue I think the side, on So don't

very I think to to it's going look first the similar half.

the see chance there a had part profitability and similar, of year. the very that look of that degradation first the don't the will we half second predicted is in we The

Matt Koranda

are maybe, And mid-teens guess EBITDA in incremental targets, of be help cost cost clear. for savings on is maybe how Okay. just then Revelyst there? Revelyst, much more the segment If long-term that to versus And it for program would we could million corporate are related still? to curious, program detail a on curious in margins unpack bit get and pertains of the enough the That's us great. Up to $XXX costs? I'm of committing that to how understand you Got GEAR it. Eric, then just I program you stand-alone sort that improvements

Eric Nyman

Up more a continue and to improvements Eric. our it's turn you growth that new a the bit over cost something detail. savings $XXX that is mid-teens first along asked guidance program, doing. back provide regards profitability your GEAR and to that to the then in March on some ladder long-term and committing additional coming organic for Matt, to we from excited detail long-term we feel the about to. Sure. It's it of I'll committed And cost foremost, to And that And are something provide million drives give million Andy very little like question, first to with do XXXX I'll over program we'll color, and the does $XX in everything savings Revelyst. guidance. initiative. still But we're it's that obviously to months. With

Chef, technology able build all good we've see about about and to the feel There's and the platform, to lot Camp will over savings confidence for Adventure warehouses, by great we Performance now sure being be X sites, a our look excitement USA Sport about When that's you been domestic in then will Fox, and consolidation significant this be there. going really it transformation. chain that just to announced really will supply have QuietKat good the and some of So Bushnell X the to which by organization. And significant million of Today, 'XX.We're business for our Bushnell, there lead CamelBak Andy, to group, want detail on several of platforms the $XXX which there's there's by a we profitability. of Outdoor simplifying and to year X color with the cost on Giro, consolidation we Bell, that grow. And in to lot that, stakeholders. in Foresight the that the morning, give which future, have that feel we we DCs see before really Simms I which we Primos working get we Golf, is we really be and to and do and driven opportunity clear some With precision and will sports efficiency really to opportunity driven pass color that a I past by those will initiative weeks, for just and future. driven we on team and which model, a manufacturing consulting platform, cost increased at BLACKHAWK, the it's called focus think world-class make secondly, GEAR how And we today, brands Up, more. entirety savings delivering fiscal

have the and today, estate domestic some we XX consolidation. front, significant On expect locations estate real over real we

that's those color to time. Andy, that? to will feel there. add how But for good of over any those to a programs get we're do little we do just want lead you to that improved more bit yes, So going margins

Andrew Keegan

be Up great Yes. Revelyst. million is Matt, program clear, related GEAR I the we to think to want was your that fully $XXX one point be going is to a

going X, that to to Revelyst. actually that, going a isn't which there to split Revelyst. be goes this Unlike only is between the So be related completely previous of part was the program,

little of to to are us that and is mid-teens revenue of growth with Eric But will a well. will of some getting of long the gap that significant component very a close towards fully new in lot us confident is that -- golf is get be we're other generate about why do, is need if be fairly high-profit what I mid-teens which in as the going areas and additional the this these areas that run. going significant to some help products in implemented. There going to that a be more once bit way will of we think So talked a

Operator

We Markets. Mark have Smith now Lake Capital of Street

Alex Sturnieks

line on Alex the It's Sturnieks Mark for this Smith morning.

business, reinvesting brands Revelyst you the in for simplifying divesting any that mentioned possibility business question, first guys brands. consideration the model, high there my or within potential portfolio? certain Is For discussion Revelyst about the of

Eric Nyman

Alex, And answer it's question. the thanks Eric. is The yes. for

on of we're months our updating power we're a As Simms divesting I Bushnell our our we're at Bushnell. brands also on to being evaluating and stakeholders that in over on licensing of brands, all more power things But or more as really progress make at our and will intensely certainly the we efforts focus And a we're at that all look portfolio. future. give to open about about assets Golf, like be mean brands focus, we're looking lot the to that community. that, a from and And the those we noncore brands how brands in and And going ahead. we assets, level, Giro, of our say Foresight in we're all taking we'll Fox, would things. And as focus information our think Bell, high at continue we going look to our

Alex Sturnieks

then And the my promotional question for second could your thoughts around great. environment. That's give you here,

holiday traditional getting are seeing then enter you partners guys And a you season, are guys little overly we As the levels? being than promotional? more promotional retail

Andrew Keegan

Yes.

the going more our say, as moving inventories as we retailers through time So and inventories than in we I moving this and I level to mentioned, through are be, period. is historical promotional would mean

balance inventory high-priced the on So our we that have sheet.

made progress. have We

we more $XX business was that. quarter, about Products over that bit the here inventory through but need million, of Outdoor little Our in a down in to move

to than will lower season. expecting EBITDA why is past in which will a those we then quarter, for third promotions holiday little the not side. And more see in because the going that promotional are QX be you're environment typical bit continue Revelyst the to margins So return

which with So will back bit but retailers up, will bring little year moved through it it into through because not it it come continue the levels. them of QX, the that well. in move more return historic will expectation. normal next partnering have will is and a And the a It as dip we're will will -- inventories and a be as to

Operator

We now Crespi, Jim of Chartier have Hardt. Monness,

James Chartier

is us for you stand-alone this kind expectation what Revelyst for of Can year? EBITDA your just tell

Andrew Keegan

'XX. million that range X.X-ish midpoint with what to kind for stand-alone in the cost, expected Stand-alone for EBITDA what we're is of X% it's percent -- Yes. so guiding based would an for of you $XX on over segment be FY just expect going

James Chartier

do double then press kind drivers that And plan What's your growth? of maybe that be in in Okay. next outlined, release a to mentioned to in year. then that? to the significant thought confidence ability addition you behind savings And the what cost the would

Andrew Keegan

Yes.

So there's a few things.

-- are I I it, certainly so confident we're goal. that we this think accomplish we mean said can we

having normal or going they're component and those we I historical we're doing promotions, project that lower be with as about levels well, a Promotions expected. the you're what to repeated because at with XX% but XX% that is at to do price savings. is the the not talked just more big of think expect we right, that we inventory than

with supply expected that of normal remaining between the already the amount items the difference to promotions freight those down will we items about. through those inventory talking have $XX to So more high-priced the that in doubling and to $XX that moved we the from that give we're million million coming reductions us

James Chartier

Okay.

don't growth need next So any that? year you achieve meaningful to revenue

Andrew Keegan

to that we'll fact that. top we're the new whatnot start growth, the revenue grow. will to Revenue we is do that through growth to of more be not innovations We a the level. on the and that that the and on basically But be the QX going is working given systems the will we it, organic to get evaluate where would going to expect necessary. and This be cost

James Chartier

any then business? any of of parts to savings plans And into the Okay. Up reinvest the GEAR

Andrew Keegan

expect is net by. would million we $XXX The that move EBITDA the to

us to net really reinvesting. get be which component we are we key a grow is is There it. possible. it growth that make organic long-term. are but to fully we that important mid-teens will is marketing that reinvestment, going be the to savings innovation of But into that that would EBITDA, of that our and portions be we're we're expect expecting, going as as will the aspect this that We reinvestment number to be going that of going just expecting very our is the communicating net for business business But to a between and fully easy the see -- to want the R&D

Operator

Bank of Reuter William have now of We Instructions] America. [Operator

William Reuter

just I X. have

of is with divestiture, The had repaying regard them know you plan since before change still a to this now the closing? the do And give the a there in defeasance more announcement planned has repay if call bonds? to if be or thoughts? plans time little any is, you Do more to first the that you've any been a that you

Andrew Keegan

be so had said, the That, of have we would -- of vote Bill. time a -- end time, we kind March, in the little March period. Thanks, as April

the a make of likely all So be a not on premium. will redemption call bonds, it the

that So expectation is then. the still until

earlier being anything at on discussions point. other any this done had haven't that We than

William Reuter

destocking it regard then the with Is soft sell-through of to with going of environment? And about on different elevated in in inventory inventory is Revelyst and Great. that's of your how those terms kind levels products? channels. the Or and just going commentary on what's

Andrew Keegan

It's -- the So even sell-in just no, we're but [ being what up POS. keeping with is beyond is the that seeing POS POS at so is down down. all the isn't down ], it POS isn't -- the inventory.

year those between year-over-year how in but But So started there isn't gap compared this more previously but down, a point at it's as it that's on down is still that items. that last time. POS is as was, slowing it

kind stabilized seeing of level. it's So we're that just at

So bit We drive would little why the for the which inventory. going is be than be they season. of the what of through to increase QX is holidays to to to continuing it is that higher promotional here down need POS, some push POS, promotions be are in which normally that to a part on why is

William Reuter

I do participate you POS much budgets people post in causing may to behavior of by constrained guess that one in is The just activities versus changes less being being COVID? think down, that follow-up on driven these that. consumer how be of some

Andrew Keegan

these are there a the lighter, it's on consumer it certainly activities think but I budgets, a but little I think mix mix discretionary bit type constrained is in a is -- of that general seeing time is the they're decisions The high. to still items. period. in in or pandemic the Outdoors still making solid some elevated above in We're do participation participation pre-pandemic levels other

right driving going that. still here So years. point this what, few to or where from it's us that growth of exactly they we're long return even now months last term, hard to to the a is on is confident have been it But what's that. but mix over there for constrained is And certainly

Operator

have had we confirm I Instructions] no further [Operator questions.

lovely So call I like here. conclude rest would the a Please to day. of have your

Vista Outdoor (GEAR) 2 Nov 232024 Q2 Earnings call transcript