VSTO - Earnings call transcript Q4 2024

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Operator

Hello, and welcome to the Fourth Quarter Fiscal Year 2024 Vista Outdoor Earnings Conference Call. My name is Elliot, and I will be coordinating your call today. [Operator Instructions] I would now like to hand over to Tyler Lindwall, Vice President of Investor Relations. The floor is yours. Please go ahead.

Tyler Lindwall

good Fiscal everyone Year and our us operator, Quarter Fourth XXXX you, morning joining to for Thank Earnings Call. morning Revelyst; Vista Outdoor. this Outdoor Andy Keegan, the me are Officer, Co-CEO and Nyman, With Vista Financial of Kinetic and Group; CEO, and Jason Outdoor Co-CEO, Chief Vanderbrink, CEO of Eric Vista

We these statements of our on Litigation be the a I'd statements known performance. reflecting forward-looking begin, we provide Private everyone these Reform potential forward-looking Securities we of to and no several understanding estimates on make to Act. to based Before statements. These assumptions operating that under during forward-looking the today, provisions and events and around making to are remind reflect and like today's effect us information our call, safe best we'll statements obligation our future financial harbor updates

actual the from release you Outdoor These our press which and we subject uncertainties. face information forward-looking statements quarterly for on SEC and to are Vista and more Vista may the risks risk that We these filings industries earnings encourage in forward-looking uncertainties statements. factors results and differ and review to Outdoor's operate, these materially

materials note include comments on Please posted supplement financial of website have that measures. which also non-GAAP this at investors.vistaoutdoor.com, we reconciliations our and presentation our morning

Eric, I'll turn it over to you.

Eric Nyman

build Vista Revelyst Group. strong belief the Outdoor of Kinetic long-term I'm as Thanks, team confident at strategy all results. leadership joining be our to and discuss we Outdoor, morning quarter with to that continue Tyler. the fourth behalf you fiscal foundation you in this thank XXXX excited the And to our us today speaking and year for share and on we Vista on

achieved allowing free fiscal flow billion, $X.XX $XXX and were our during the during million the year is margins adjusted generated year, of throughout financial fiscal for us sales down with the on of $XXX line strong. adjusted We we million to company our expectations above of cash profitability. The debt EBITDA sales expectations for results Total quarter, fourth with in pay And the XX.X%. year.

In by ratio the $XXX strong debt bringing work strong from fourth free million decreased $XXX our net quarter, and our flow testament we X.Xx vision cash as results million, hard generated flow at our dedication the year-end. to leverage of long-term remains a of all to and are our and our These strategic adjusted employees. cash

with be other be the consideration As share. an CFIUS ability to will in Outdoor satisfied. update held, will that stockholders for proposed X and in and to each receive the $XX.XX closing confident transaction conditions closing At all share cash Vista CSG, on our continue the transaction, of receive we Revelyst clearance CSG

under the Revelyst with MNC's further Board that the the closing the proposal with CSG, reinforces permitting and and unsolicited be million share. engaging QX MNC acquiring per shareholders said, the a interest April XXXX, fiscal the indication cash form with to to of the XXXX, debt that, with does of cash transaction distributed superior determined intend $XX.XX MNC's net Vista to in significant revised in meets The the price standard revised an amount March its including we on significant CSG to MNC's repurchase. Further, above view for sheet Outdoor proposal or of the balance year the share Following in alternative confirmed will consider $XXX to which Revelyst dividend expressed pursuant capitalize transaction, proposed the discussions engagement cash the we agreement related special are merger of that during we Capital, undervalues all-cash Vista not MNC. all in transaction, quarter XX, decrease interest, generated in to of has MNC offer in business. That Board CSG XX, be

these Time favor to Central vote XXXX. respect agreement X:XX June the Given will proposal existing to transaction The a.m. XX, CSG discussions, of special we CSG. the the to with stockholders recommend the on in Vista stockholders merger adopt adjourn of Board with meeting ongoing continues to

have proud of my of work Outdoor am time the demonstrate right our the company is I the and our the strategic accomplished teams in results direction with Vista one.

their to Kinetic the pivotal year, the our despite and challenges. to all achievements commitment I has has Revelyst our to made high-quality in employees and want and passion and inspiring. Over efforts tremendous while consumers past been products company's continuing deliver both and stakeholders. This a the Vista service have customers, to Outdoor macroeconomic history our Group business, uncertainties separate we year been across our ongoing diligent to rich and for thank your and the our

this on to the At and formulated be great support leadership and made Revelyst. Revelyst, driven with X have In Now the progress we passion. team's strategy, months. over unwavering by team, last our have we I to and continue motivated partnership company's

to transform organization the global outdoor integrated in of journey a undertaken our have We into house the brands leading industry.

sales margin results adjusted versus and through the stronger EBITDA X.X%, Our delivered translating million, to along and EBITDA have our each enabled ongoing at collective fourth million year work fiscal EBITDA year the challenges, step of uncertainties with quarter finished potential. Revelyst the $XX $XXX as unlock way and full adjusted business tripling during transform line adjusted efforts with we and of in macroeconomic of our prior an to its strong us we the expectations, period. to have emerged

and opportunities like to partnerships gaming At fiscal off-course combination we acquisition Through PinSeeker's were continue exciting maker real-time, add bolster leading app collective to that and the experiences simulator and touch to quickly passionate We Sports and announced Technology content, our to brand-led, would customers. I hosts to the highlights and PinSeeker, Our products, requirements digital world-class opportunities transform of hardware, Revelyst platform, consumers consumer-obsessed connectivity across be some to other of business and our Revelyst solutions and closest-to-the-pin ecosystem. that on the digital the of brands results Foresight's Precision exceptional our the a Revelyst which exceed teams e-sports tournaments. maker enable virtual will and fueled, our engaging excited arise. across golf PinSeeker new to during profitably exciting in year.

So for details coming in stay months. the tuned

believe We participation tremendous growth poised opportunity, a to all-time golf, off-course a we XX in participants. where revolutionize to million new reached are expanding high XXXX,

athletes on In Bushnell to proven laser provide delivered CamelBak, developed trust to the have Sports on-course at make cross speaks for building professional levels most reported addition, over Adventure in In progress their of across architecture Blackburn. market-leading survey that Revelyst Bushnell compelling that Fox used for highest-performing quarter, golf. the a innovations our Within globe. that infrastructure for on RS devices Fox of players Fox, the leading our championship platform, in competition. The abilities in golfers helmet the helmet. address ability Bell, needs brand's our Golf, a and field preparation motor VX history has advanced and off-road the continue industry the helmets XX-year with team's our all the rangefinder a powerful about new volumes Giro, in teams brand riders XX% the QuietKat the of

sneaker us the for official Visma-–Lease sponsor streetwear boutique, be apparel reach Giro a entering its juggernaut team differentiate women's these cycling the cross-country an men's road Supreme and to supplier helmets the addition, specialty for all into by market Bike, teams in Fox categories with and and pro marketplace. of brand The launched In the and offering. maintain its its increase Livestock expanded lifestyle cyclocross, road in agreement disciplines. Giro partnerships cycling across leading tour collaborations world to elevate the and high-end both to #X continues across or and share the

addition, Chef, by Primos, Bushnell, integrate build out BLACKHAWK! the Glacier, Camp performance continues team In and and Outdoor Eagle. Revelyst platform Stone the led Simms, to

day customer the the demonstrates Bozeman At more in brand Simms, X any for at and Fishing This out. Men's the introduced is newly craftsmanship, team attention key Stockingfoot day Wader GXZ Wader. than the including highlights gear precision Fly and and heritage the to top-end other team a for the brand based detail received product Show, Best that its XXXX awards,

U.S. apparel Air its contract passionate its to business battle wear Glacier Eagle new for everyday belt Stone launched to strong a of the strict government Force that And requirements. I in in Additionally, confident have adherence remain the in the developed our for at manufacturing was U.S. Revelyst. lifestyle has MOLLE a to strategy supporting initial we response. that hunter XK Rucksack delivery system the addition awarded vision and

organization for our direct-to-consumer growth our ecosystem. into wildly the our through leading transforming an an brand-led, Through are we maker-fueled brands offerings, technology consumer consumers. We gaming innovative drive mission, outdoor experiences of channel expanded obsessed product integrated and to house and enhanced industry in strategy will human digital the deliver global

both by during while direct-to-consumer approximately to the the gain Sports Our entirety way Revelyst year. across QX the the to led fiscal growing XX%, Adventure year-over-year continue fiscal of XX% further Precision improving quarter, X% and traction, gained the DTC full year. sales Sports Technology in platforms Revelyst sales

excited retail are and demand channels. within which inventory strong, that about results, We our brands noise wholesale for show these absent the is

Transformation I to the where on, want ongoing Moving tremendous quarter. during we progress touch on efforts, Up GEAR made the

model, brands to reinvest expansion. As a and reminder, highest profitability transformation cost EBITDA increase potential program is growth simplify efficiency our accelerate line to into our and business GEAR savings Up our and top

progress teams across through Up to work initiative supply consolidation. the chain drive Our GEAR continue on

footprint. warehouse center of our to example and Nevada consolidate recent a As closed this further our we effort, Reno, distribution

chain operations ideal developing and building teams and savings key the a previous we the stand-alone savings efforts Revelyst's track. Chain ability year $XX deploy Supply EBITDA goal of our executing more, talent, to announced operationally, of him cost and realizing year-over-year, Joe Chain confident hires, as to actions we on a adjusted remain effective first Chief realize experience Beck to including million chain Joe's leadership long-term million make global including strategy million as and GEAR by of of stand-alone $XXX business processes, the run supporting hire fiscal supply Officer. Through separation rate Additionally, here with year hiring are business, Supply design addition supply analytics in recent for a we will his most Officer. cost Chief the during potential fiscal Up and XXXX. Financially our rate XXXX, and $XX outlined run double technology,

reaffirm to consumers positively patterns double is adjusted believe longer due to EBITDA mid-teens. improvements are will adjusted ongoing the do we impact future In year change term. bright. both profitability organizational expect purchasing am EBITDA the the our in to meaningfully and in the continue operational uncertainties, be will not macroeconomic term, short stand-alone ability in margins Revelyst's Revelyst's that confident in confident and our stand-alone I XXXX. And While our fiscal We that to that term long we short closing,

to want navigate strong us gratitude our again of macroeconomic We that team work, consumers express help their and to sincere the climate incredible foundation will and my customers. have for success. established Revelyst's the and commitment demands the uncertain exceed a support passionate I to

am and over is to of Our an extraordinary for Jason I we skills, Jason, together. I'll individuals the team achieve Kinetic talented experience, knowledge excited provide now hand can the what quarter. it about over comprised to on with you. Group update to and

Jason Vanderbrink

morning. EBITDA margin $XXX.X of provided finished guidance Good the were a in achieving financial of a our by fourth the quarter. with off face in quarter difficult our XX.X% The last the or market. strong, capping Kinetic adjusted $XXX year million million, Sales solid we performance team Group an

sales of which a adjusted finished an EBITDA to net billion at ammunition year, XX.X%. the equates with $X.XX of million, margin $XXX.X For

recent quarterly for transition and a potential our trends. by prepare sales we in are and ownership we As year-end results XXXX, encouraged

have order delivering expectations. several and on We our that our are there in strengthen a confidence categories financial in product backlogs strong position

number each handgun, and the trends, by in inventory We impacted commodity production indicates remained costs, year-over-year pricing double-digit the with categories. Along retail over challenges of but we the costs increased copper, a and levels, select with taken some last ammunition strong highlighted partners, input including increases data rifle quarter. not overall POS stable group higher encouraged sell-through open remain shotshell positive to have which actions ahead to orders. a related by From offset have have sell-through in the powder rounds of of remained

a past Tip rimfire Remington delivers design. effective expanding NICS SHOT straight wanting continued monthly from lineup This leading and XXth of to avid at firearms more to ranges quarter, added bullets. great accuracy big bullet tipped Fusion Rifle. the hunter, expectations This and in million first brands baseline better extreme our in cut ending its from XX ammunition launched Long offering whitetail new game the Federal fanfare. proven the leader the extended April, shooting and checks checks. on copper X and than of hunter's higher performance the ammunition data ever supports tough a month adjusted Show bullet. CCI, a in participants. This released accuracy For alloy surpassed premier terminal launched self-defense of for products hunting healthy annual volume, bullet Uppercut, several high

all Our delivering manufacturing the are in constants X focused on on X consumer our and teams best customer remain building in ammunition America at There history. company facilities demand. and

defenders law who homes unapologetic the the military enforcement a Amendment we'll right in always of are We and our as support women protect men and and the constitutional freedoms. and Second

Andy? continue perform We confidence future is our continue work them and new their the that best the to with team products for filled level full to will all help missions. we the will them on with great you. development ammunition with and to in of research highest business, I in at opportunities. Thank have

Andrew Keegan

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

businesses We For slide reference the Kinetic we I presentation. a in updated sales additional and Precision out. for our Revelyst's non-GAAP Performance would Kinetic measures, our our also Revelyst revenue refer Overall, segments, during statements had for my the X with Outdoor financial regarding as first Adventure segments please range the the and a fourth the Revelyst note to remarks, solid in to of quarters. reporting to Revelyst expectations in both quarter lower information sales of manner sports, that quarter. X Revelyst meeting in end we the step will segments in X and X Revelyst organically quarter, Page Group growing include and Sports Technology. I guidance the combined the met like Revelyst forward-looking fourth time

an expectations, Revelyst point the single basis the which quarter third our front, over improvement digits, met of EBITDA over On our above Kinetic fourth expectations was margins high and the was in quarter. XXX

delivering Additionally, quarter. outperformed quarter, expectations our us position adjusted free $XXX flow by cash net in million million, fourth $XXX our the reduce allowing significantly the debt in to

For lower an the decreased Kinetic the due by at million quarter, partially the $XXX.X X.X% sales to in to volumes Group, Revelyst increase fourth total business. offset

down For year, fiscal $X.X to and total $X.X decreased the sales were XX.X%. XX.X% billion, billion organic sales

by margin profit Group, Kinetic by and year margin $XXX.X to in profit gross basis lower million at $XXX XXX XX.X%. to the to of Group flat QX higher Revelyst. to decreased million gross margin in profit to Revelyst gross due Gross partially was XX.X% X.X% decreased X% at relatively offset lower gross equating Kinetic points to QX due gross and profit XX.X% gross at and at the at both costs partially contracted offset $XXX.X gross Fiscal profit million, SG&A Kinetic EBITDA XX.X%. EBITDA lower higher at Revelyst. profit Group, an QX to decreased

basis a organic X.X% was EBITDA and margin XX.X% and EPS year the to $XXX was $XXX.X points million, year EBITDA to decline EBITDA XX.X%, XX.X% margin organic FY of to million, declined for XXX contracted XX.X%. QX $X.XX 'XX, EPS dropped and For full XX.X% to $X.XX. declined while

Slide XX. to Turning

work strong mentioned, Our by to in balance our year-over-year flow improve inventory, $XXX during QX. which efforts our improve, fundamentals of million approximately levels committed through allowed lower to adjusted quarter, and $XXX We team's we inventory Revelyst's optimize financial to us sheet to decrease continues sound to and X%. These quarter, free sequentially continued portfolio. and the efforts are driven and the implementing sheet health our policies. further about reduction optimizing of cash during and hard year-over-year and These of our the net our of prioritizing as business balance debt sequential debt decreased XX% XX% million the by primarily X% decrease drove remain

on sheet at X.Xx. great and improve optimize XXXX, balance Our to net fiscal our to a executing portfolio. plan our we've already debt leverage continuing gotten ratio now the is of off year health our start, In to

that the of long transact. This highly focus with the employees the brand to and in X, divestiture will included as providing May us will We home this brand to returned CSG dedicated right be capital report attractive significant the we from provide that potential. transaction core are to cash on as completed for well valuation allow Hodgdon value us will term The the to and on the divestiture the concentrate assets a its that shareholders upon of our growth be to pleased Powder, transaction. excess RCBS completion

leverage review and long-term a deliver accelerate for and efficiencies strategic ongoing expertise redefine is value. and Our to to critical to allows focus ourselves synergies growth, our that success improve drive is step position our and us

and FY sequentially Revelyst business and sales up partially $XX.X margin EBITDA volume Precision XXX gross FY million, to QX XX.X%. QX price, decreased the to $XXX.X EBITDA billion, new Slide 'XX XX sports basis $XXX margin for to offset costs. Turning for decreased 'XX in gross and in was million margin increased million lower basis. Gross year-over-year EBITDA $XX.X was to profit sales on to in due volume XX.X% X.X%. Organic declined and X.X%. product increased EBITDA to XX.X% basis EBITDA million $XX.X QX were performance. and EBITDA technology the organic up 'XX offset year margin This due on to to by points discounting. Revelyst by FY X.X% and profit $XXX.X million, partially gross increased Outdoor lower points SG&A quarter X.X% due increased driven XXX up increased introductions. was an a and decrease X.X%, XXX.X%, and Revelyst, our XXX decreased to FY results profit contracted of of XX.X% to Within and increased X.X% million, basis organic to to XX.X%, margin an gross XX. efficiencies, QX $X.XX was XX.X% increase by points and in 'XX

lower Group, sales decreased the For and to due across million XX.X% FY all billion. to Kinetic XX.X% decreased in 'XX QX sales categories lower pricing. volumes $XXX.X to nearly $X.XX

XX.X%. QX Gross QX input profit, decreased to was gross million lower the to decreased gross to to 'XX volume million, lower $XXX.X SG&A margin mix XX.X% decreased to by in million, contracted to down $XXX.X gross $XXX.X due million margin EBITDA and quarter XX.X% unfavorable FY for and EBITDA and XX.X% increased EBITDA cost. and decreased FY XX.X%. decreased 'XX to and to gross due and offset costs XX.X% margin margin EBITDA profit $XXX.X profit XX% partially XX.X% inflation. 'XX FY lower to was QX price, due

Moving on to Page XX.

fiscal standpoint As we year increasing injuries bottom to year a both which excludes production seasonality the throughout distributed X, On and XXXX. In and input our Energy There to guidance at global powder, expected year. costs were occurred line XXXX. Fiber been sales sales sales At in fiscal to Group, shortage, a environmental related fire facility copper fiscal the EBITDA Kinetic Missouri. XXXX our the and from Fiber net including divested or limiting production look products' fire. business, a February in no be expected for and to year our Seymour, are are RCBS, Both the Revelyst products. main has XXXX, factors powder and Energy top from upcoming issues pressure evenly

of Fiber total approximately combined we Energy our and do as million XXXX. RCBS year sales However, fiscal the result year $XX fire, products in material contributed not in XXXX. expect revenue fiscal contribution of the from business a

consumers not do fiscal due we challenges. to remarks, prepared uncertainties his ongoing year in the to and in meaningfully purchasing mentioned patterns Eric change expect macroeconomic As XXXX our

in months we channels the observed recent and have of we addition, many wholesale categories In sell. in becoming healthier retail

have at inventory and retailers, are inventory channels smaller inventory more their but Adventure Sports, channels, see orders. in levels as However, Revelyst Across retailers managing down at through to certain the come specialty we inventory tightly the continue levels burden. most just quantity work including time

guidance. expect year as dynamic factor into included to We this it fiscal in we have continue as a and our head XXXX

to cost contributions than to expect driven $XXX primarily billion, transformation at Revelyst's to down. Based $X.XX million our higher improvement, related chain of of freight has fiscal lower to between $XXX $X.XXX program; Revelyst, the inventory restructuring announced $XX end usual inventory of year to in billion. we higher promotions $X.XXX previously Revelyst's expected billion freight to from Kinetic $X.X to improvements our Kinetic to million rate for between of fiscal $X.XXX run sales EBITDA XXXX million. EPS inventory as priced begun the which is million, of our $XXX XXXX, XXXX; our and this, expect April $XXX savings by in range which sales following: million our to $XX and Up and on million we $XXX free related $X.XX has EBITDA flow million full year guidance, three, range million. $XXX fully we the $X.XXX fiscal EBITDA Group's drive turned the program, our $XXX the and billion of to sales $XXX Revelyst's look and as supply Group two, to of meaningful EBITDA XXXX One, levels we in $XX had promotion billion balance four, through million year by to which cash As $X.XX GEAR of billion and cost levels million the with of and compared range million

we expect low of digits RCBS Revelyst, single year-over-year, the at down QX Fiber to Energy. and look sales loss sales be to by we As from the driven

half We line EBITDA low GEAR single effect. Thank questions. back fiscal open to to margins everyone. for please in start be full Up in mid- savings to as the teens high to the grow digits take the expect Operator, the and you, year

Operator

Riley. Our from Glaessgen with Instructions] B. first [Operator comes question Anna

Anna Glaessgen

segment? by I'd great. progress was to how by any to for would start sales unpacking -- you outlook What's going revenue 'XX expect being through the to Revelyst. like on start color year And the I by assumed fiscal be

Andrew Keegan

the appreciate question, I Yes. Anna.

we -- would guided I haven't by at look we start. segment, as So

facing new see the Precision to hangover business through look opportunities opportunities challenges. growth businesses, the past the within XX% even some products strongest with the introduced are as in be think past, we I potential that we've some a progress will continues has the we've year. in as sees at as Sports, the as we We quarter still of businesses and this inventory that Adventure the as channel Sports, north the strong growth. Other mentioned, The rate. a specialty discussed

throughout little start year bit slower on you'll that, So as then on. that progress continue out we and a will it

Anna Glaessgen

it. there's And that give bike out understanding some the stands hangover within that us -- issue? that the likely demand categories, POS update inventory channel, those sports looks some Got in segment, that where to adventure underlying taking could said, the inventory within you specialty mostly on perspective on what like

Andrew Keegan

Yes.

On at, But be the I'd in the is a of of it's still POS, year-over-year platforms, gaining, the market we take that we're this is throughout probably those excited key say still looking categories are cleared, that's in rest to as down fair. our are time, what little share is given share the and gaining we season the see through of are we sports be future the evaluating spring year. a to adventures all push to rest we're -- it's the not is take going that through that. to has that going through. Once trajectory clearing. POS the market to It's able inventory not is happening the which It of why the we clearing. by but It's really saying down, -- just been going businesses though not is that

Anna Glaessgen

opportunities margin where for related just 'XX, the guidance, downside mostly outlook in to the it. for upside fiscal think just Got I are through And one cases me. to and want more scale, associated as the or a as deleverage? leverage in year-over-year? fall margin assumption is the well, of underlying kind margin the for about sales we think sliding Or there improvement

Andrew Keegan

or that to the business? Revelyst clarify, to want I is total specific for

Anna Glaessgen

Revelyst. specific yes, Sorry, to

Andrew Keegan

a do bit Revelyst, to you're is have on that flow-through perspective sales mostly sales-related going guidance from going have be a We specific a more. the it to item. So to little

So the a little come down rate you'll see bit.

savings in other about. talked the the pieces we've that confident GEAR are We Up and

So on it's that. less focused

Operator

to Koranda with ROTH MKM. turn Matt now We

Matt Koranda

million the But fiscal you some in my that really of then inflected Just rest to just outlook sales fourth wanted the mind, and shouldn't Like to we basically is positive quarter. out given probably that Revelyst, highlighted that the since DTC I year the right way update. much restock $XX channel in likely deal strip the I'm the we through about cover on think flat for focus from Revelyst just product the guessing sustain launch guess too maybe just And it, growth? in questions if the it in can't it why certain and needs Fiber 'XX related? just of RCBS. pockets, Was your

Eric Nyman

Matt. hear from you. good It's Sure. to

So comment. I'll start with the first

the assumptions right that's And on that everyone We I could about built the obviously There variability. We on midpoint, of confident, think -- of that be range. business we most where think for trends in And flat. is macroeconomic we correct a year provide this continue range, you'd based to midpoint our we plan feel uncertain that. lot good to being are I be guess, now. that seeing about conservatively the question flat feel a would I we've fairly be your

we range to provide a around want sure we make that So that.

the all we team right doing, that. and that that things sure we improve make doing the On the margin that side feel is the against really to confident margin things we're

x focus. flat that's things. be And So our thought divestitures right how you'd is I about that think we've

Matt Koranda

that the it. Got how into rate much realized year, Okay. called midpoint $XX Revelyst guess, And million we the of does 'XX? EBITDA then for that you specifically? gets I are all how $XX of run know And 'XX? just I guide million 'XX, for this in that to actually, on rate, of terms counting hit $XX out in the Andy, just you run wrap maybe Or savings in to million the have of then improvement sort of that plan in in margin

Andrew Keegan

Yes.

hitting of number. start Eric then as will the effect effective year of Reno improve you'll spring So of Matt. million be Those announcement which as savings margins is we've year. hit facility to will things go several contributed That mentioned in here all million here. on is all to we be throughout going is why increase announced to to the won't that that FY summer, to the the will, take made part quarter we've offices. some 'XX mean, said, the forward. I at amount that's $XX the guidance that in that once, because the cost see here thanks, expected $XX will changes and the you the those The throughout confect It

go we as wrap this other items will too. that happen And throughout couple a have year. we'll So of that forward

current that to 'XX year, million. be the to million more will there than $XX to $XX So hit the annualize in in $XX then will actually $XX million and that million

Matt Koranda

Got before. coming you. out is in the put could. mean that year in reduction terms Revelyst's combined maybe lower Maybe this expense costs? guide I And does Okay. then And that, corporate implied than bit us level we guess, the the see that of stand-alone just little some from? corporate that that you looks, just Where update a if for on could improvement you in

Andrew Keegan

the, the corporate of you For mean the came end year, through? cost how

Matt Koranda

so consolidated guide. versus based on just level an EBITDA EBITDA the I guidance guess the of segment into I'm backing guide Well, implied level

So bit looks lower little a it just implied.

alluding So to. that's what I'm

Andrew Keegan

got I yes. you. Yes,

total Revelyst we for kind $XX-ish for what the What of rate it kind still But be to run stand-alone million we up we're of the we had current Revelyst For the expecting the that made current of is. in previously. as expected is, that what Vista we from have range. are we're build some ballpark plan, costs, still cuts taking year the looking we're in

Matt Koranda

that here. expect the And in on of in maybe last the cash free like of be Andy, just should pro I Any pretty seasonality Revelyst, had just a one flow the we terms forma how still noticed then you. is at Got that fiscal balance you 'XX. sheet thinking midpoint healthy. the about thoughts, X-parter Okay.

expect we And improve normal should that in perspective. sheet, balance go if I next there Revelyst of wondering example relatively other even here, near-term could monetization. year being a just the bit RCBS, I Just short but guess, from guess, the further? like Are standpoint, cash the a will best curious, divestiture from in off, the stand-alone items pipeline that seasonal flow a then

Andrew Keegan

question the Matt, Sure. X-part people. take X we'll with

Matt. we Strategically, right areas. still portfolio and the that brands. part, in bolt-on right room momentum a the there's sales divestiture we've feel right do acquisitions more explore the to take And lot and of create I'll divestitures creating talked so -- about think could the like a growth I great frankly,

team companies. proud And in finding think to Hodgdon. right to few hear I'd are I that momentum RCBS, the the do be a the good sheet, the what and really not discussions months connect So some And also brands for our for was but in just company from of at selling that able opportunities with the balance could we're company to for team we ahead. think you'll continuing we strong really say other other over returning around

Unknown Executive

at what would question cash, to throughout grow year it to trended. It's of I how look similar will it that, did this the on year. seasonality And of your we've of we kind kind

I think we'll expect similar kind outlook. of

Operator

Chartier Our comes with Hardt. Jim Monness, from Crespi & question next

James Chartier

you level Or kind assume price of are you thinking And how those increases implemented? Jason, are you've And in increase are fully guidance? some for the taken of is what be year? do there? the conservatism they'd assuming there -- of so all that kind far, you of increases price about

Jason Vanderbrink

And help cover guide, think we you Yes, implemented the May price increase, increases. market to a to I is we're a have the in Jim. on assume pricing, In safe momentum, one going increase. that. months just that take price price pretty another accept assume have to targeted given copper will, going increase, that, And that confident the to price X, to copper. said Having broader it's the we're if we any the coming didn't

we we we've have fiscal range bottom in as going the all powder continue that in margin and to think focused see going of quarter, we're year be to mean, and come to. with copper, we're on deliver that EBITDA what the the still to of going I business, and in solely year love side like the line. we into offset at that 'XX be much think I to to would can in the challenged pricing momentum 'XX. high XX.X% we I that We're guided So as to we

James Chartier

Great. guidance 'XX? And kind POS that's Andy, in of the then Eric for the assumed or is what FY trend

Eric Nyman

to you. Jim, good from Sure. hear

about both of on are this of the seeing Right really particularly market momentum, modest and momentum good with probably rest does, what to the market significant we're Bell we really Fox Anna. clearly the in be important and year. Again, starts regardless build the and talked share positive POS So market that's share gains turn. modestly slightly planning throughout like like winning year, brands feeling Matt we're as And and across then feel the trend seeing shipments, down consumer QX being and will business, share like again, front. we the is the we We're market and to us. on conservatively we'll Giro when and for really now,

and us we're see So like our that feel momentum half at we'll point, for allow of back businesses, to our inflection which some range. good think will some I we achieve

Operator

with turn Instructions] We now Street. to Lake [Operator Mark Smith

Mark Smith

guys on you price First, to sounds something, seeing The Jason, you're that now? increase, -- it said. like not like kind just want took I to enough it up that right that just cover you sounds of pressures follow the that's in inflationary May

Jason Vanderbrink

Yes, it was category. very everything, Mark. particular price cover to enough wouldn't a in it a be targeted increase, And

help So more here broader categories a cover with will out be to now. increase right price the we we're that cost coming to increase copper seeing shortly

Mark Smith

side? are if then you there promotional I'm the the little if some conservativeness what a seeing leads primarily doing gives the maybe Revelyst,but environment, are you curious, the to side, or And anything guys competitors on what Kinetics just Okay. on of is pause anything Revelyst that bit on kind of there's primarily of in

Eric Nyman

in was QX, business, we're promotion lot had fiscal our certainly, Revelyst on activity, that in Mark, of and Sure. decrease. a the purposeful. our seeing activity side, We

job teams I the through an in some inventory did our think of business. the excellent working

decline significant You year-over-year saw inventory. a over in $XXX million

So we in feel pretty at this point. a we're like position good

do see I'll We promotional pretty activity about side on of the And Jason feel when to year-over-year Kinetic. I good you decrease that business. Revelyst think the are. but where we you'll think we can about better, always turn it over

Jason Vanderbrink

calendar all side quo. the status on and the Mark, much year of we to seeing at ammo we're that promotion the be expect on Kinetic, of business, of Yes. kind remainder for not the

Mark Smith

Okay. small rebuild? stay is plant, following a on Fiber the one. you it's continue Is want Any that And -- that to business But last for Energy to that plan fire side? one me, in? there that a to at a plans on

Andrew Keegan

to mean to outcome tough through early Yes, now. happen our be it It's certainly it's for exact was there. to say covered going the to a what able that, We're working claim, us be. insurance to bit Mark, group. see evaluating right down is the the by team little I that We're as insurance

solution things have working So certainly we in as more the have We'll come we're the that there. we up months ahead through. a updates down few with

Operator

our concludes to you this gentlemen, thank We'd and for call. today's Ladies like participation. conference and Q&A your

lines. You may now disconnect your

Vista Outdoor (GEAR) 9 May 242024 Q4 Earnings call transcript