VISTA OUTDOOR ANNOUNCES 1Q FY21 OPERATING RESULTS
Aug. 17, 2020
Source: Vista Outdoor news release
Anoka, Minnesota -- Vista Outdoor Inc. has reported operating results for the first quarter of its Fiscal Year 2021 (FY21), which ended on June 28, 2020.
"We had an incredible start to our fiscal year, and we see continued strength going forward in both our Outdoor Products and Shooting Sports segments, with increasing participation rates across all of our categories. The hard work we have done over the past two years in building a nimble and profitable platform has enabled our brands to capitalize on these outdoor recreation trends. We are turning incremental sales growth into margin acceleration, higher quality earnings and strong cash flow, allowing us to further de-leverage our balance sheet", said Vista Outdoor Chief Executive Officer, Chris Metz. "Going forward, we will continue to reinvest our improved cash flow in several areas, including enhancing the new product innovation pipeline within our market leading brands; pursuing acquisitions that deliver top line growth and earnings accretion within one year of purchase; and further expanding our e-commerce channels to make it even easier for consumers to buy our products wherever and however they shop."
For the first quarter ended June 28, 2020:
Sales were $479 million, up 4 percent compared with the prior-year quarter, and up 10 percent adjusted for divested businesses.
Gross profit was $125 million, up 32 percent compared with the prior-year quarter, and up 41 percent adjusted for divested businesses. Gross profit margin improved by 549 bps compared with the prior-year quarter, and by 574 bps adjusted for divested businesses.
Operating expenses were $77 million, down 23 percent when compared with the prior-year quarter, or down 8 percent when adjusted for divested businesses and asset impairments.
Earnings before interest and taxes (EBIT) was $48 million, up significantly when compared with the prior-year.
Interest expense was $6 million, or down 42 percent when compared with the prior-year quarter.
Fully Diluted Earnings per Share (EPS) was $0.69, compared with $(0.29) in the prior-year quarter. Adjusted EPS was $0.51, or up 738 percent, compared with $(0.08) in the prior-year quarter.
Cash flow provided by operating activities was positive $77 million, compared with a use of cash of $(36) million in the prior-year quarter. Free cash flow generation was positive $73 million, compared with a use of cash of $(45) million in the prior-year quarter.
For the first quarter ended June 28, 2020 Operating Segment Results:
Shooting Sports
Sales were $334 million, up 8 percent compared with the prior-year quarter, or up 17 percent over the prior-year quarter adjusted for divested businesses, driven by continued consumer trends towards personal protection and a resurgence in outdoor recreation activities, offset by COVID-19 related disruptions.
Gross profit was $85 million, up 53 percent compared with prior-year quarter, or up 71 percent when compared with the prior-year quarter adjusted for divested businesses. The gross profit margin was 25 percent, a 735 bps increase compared with the prior-year quarter, and a 796 bps increase compared with the prior-year quarter adjusted for divested businesses. Margin acceleration is the result of improvements to pricing and mix, as well as continued benefits of cost savings initiatives.
EBIT was $55 million, up 224 percent compared with the prior-year quarter, and adjusting for divested businesses was up 250 percent compared with the prior-year quarter.
Outdoor Products
Sales were $145 million, or down 4 percent compared with the prior-year quarter, due to COVID-19 related disruptions for the majority of the quarter primarily impacting Hydration and Golf, offset by the resurgence in outdoor recreation activities and increases in the direct to consumer channel across all brands. Strong demand materialized in the last month of the quarter upon stores re-opening.
Gross profit was $41 million, up 3 percent compared with the prior-year quarter, due to improvements in mix and increases in direct to consumer sales. Gross profit margin was 28 percent, up 190 bps from the prior-year quarter.
EBIT was $12 million, up 68 percent compared with the prior-year quarter.
Please see the tables in the press release for a reconciliation of non-GAAP adjusted gross profit, EBIT, tax rate, earnings per share, and free cash flow to the comparable GAAP measures.
Outlook for Fiscal Year 2021 Second Quarter
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