Vista Outdoor

Vista Outdoor Inc.

Type	Public
Traded as	NYSE: VSTO S&P 600 Component
Industry	shooting sports and outdoor products
Founded	2015, spun off from Alliant Techsystems
Headquarters	Farmington, Utah, United States
Key people	Michael Callahan (Interim Chairman and CEO)
Products	firearms, ammunition, and outdoor accessories
Number of employees	5,800
Website	www.vistaoutdoor.com

Vista Outdoor Inc. is an American publicly traded "designer, manufacturer, and marketer" of outdoor sports and recreation products. The company operates in two segments, shooting sports and outdoor products. It is a "house of brands" with more than 30 labels and subsidiaries that produce ammunition, firearms, and outdoor accessories. The company trades under "VSTO" on the New York Stock Exchange.^[1][2][3]

History

Alliant Techsystems (ATK), entered the ammunition and outdoor products business in 2001. ATK grew through acquisitions and a surge in demand for ammunition for police, hunting, and other private uses.^[4]

In December 2014, regulators were informed that Vista Outdoor had signed an agreement for a $350 million secured loan with a term of five years and a $400 million revolving line of credit. Proceeds were partially used to pay down debt.^[4] ATK and Orbital filed a joint proxy statement and prospectus describing the share issuance with the Securities and Exchange Commission on December 17, 2014. The same month, the Department of Justice granted approval to the merger and spinoff.^[2][5]

ATK spun-off Vista Outdoor upon closing its merger with Orbital Sciences and became Orbital ATK on February 9, 2015. Anyone holding ATK common stock at the end of the business day on February 2, 2015 received two shares of Vista Outdoor common stock. Eligible shareholders had their brokerage account credited or received a book-entry account statement reflecting their ownership. Vista Outdoor was thus initially 100% owned by ATK shareholders. Vista Outdoor stock traded on a "when-issued" basis from January 29, 2015 to February 9, 2015. It began "regular way" trading on the New York Stock Exchange on February 10, 2015 under the ticker symbol "VSTO." No payment or action of any kind was required of shareholders. This transaction was conducted on a tax-free basis. U.S. shareholders generally did not have to recognize a gain or loss for federal tax purposes.^[1][6][7]

On February 25th, 2016, BRG Sports announced its acceptance of a $400-million cash and earn-out deal to sell its "Action Sports" business to Vista Outdoor. Vista gained control of the Bell Sports, Giro, Blackburn, and C-Preme brands.^[8]

Financial results

For fiscal year 2015, Vista Outdoor reported earnings of $79.5 million or $1.25 per share on $2.08 billion in revenue. ^[9]

In a January 11, 2017 press release, Vista Outdoor disclosed that it expected to record "a material asset impairment charge in its hunting and shooting accessories reporting unit" for the third quarter of its fiscal year 2017. Vista reported that "the Company's preliminary analysis indicates the impairment charge will be in the range of $400 million to $450 million." ^[10]

Brands and subsidiaries

Most of Vista's brands are associated with shooting and hunting. The company also makes gear for camping, hiking, skiing, and biking such as flashlights, headlamps, lanterns, helmets, goggles, GPS locators, etc.^[2][11]

Bushnell

Bushnell scopes on display at a hunting exhibition

Also knowns as Bushnell Outdoor Products, Bushnell specializes in optics and imaging. Its products include binoculars, spotting scopes, telescopes, night vision equipment, GPS devices, laser rangefinders, riflescopes, holographic weapon sights, game cameras, and other high-end optical equipment. It also sells Bollé Performance Eyewear ski goggles and sunglasses and Serengeti Eyewear all-purpose sunglasses. David P. Bushnell founded Bushnell Corporation in 1948 during his service in the Allied-occupied Japan. In 1999, Bushnell was acquired by private equity firm Wind Point Partners. In 2007, Bushnell was acquired by MidOcean Partners, another private equity firm, which acquired it in a leveraged buyout. In 2008, Bushnell acquired the assets of Simmons Outdoor Corporation from Meade Instruments. ATK announced its acquisition of Bushnell on September 5, 2013 for $985 million in cash, subject to post-closing adjustments.^[12][13]

CCI

Cascade Cartridge, usually called CCI Ammunition, is based in Lewiston, Idaho. In its infancy, CCI made centerfire primers for government use. As of March 2015, it mainly manufactures rimfire ammunition but also makes centerfire handgun ammunition, primers for reloading and industrial purposes, and shotgun shells. CCI was founded in 1951 by Dick Speer, brother of Speer Bullets founder Vernon Speer. CCI was previously known as the Speer Ammunition Company.^[14][15]

Federal Premium

Hydra-Shok 9mm ammunition from Federal Premium

Federal Cartridge, usually styled Federal Premium, is located in Anoka, Minnesota. Federal Premium manufactures finished shotshell, centerfire, and rimfire ammunition, as well as powder, primer, and shell casings.^[16]

Jimmy Styks

Kyle Reeves and Jeremy Wilkens founded Jimmy Styks in 2009 in Huntington Beach, California. In July 2015, Vista Outdoor announced its intent to purchase Jimmy Styks for $40 million upfront with additional payments to the founders, who are staying with the company, triggered by meeting financial targets over the next three years. Jimmy Styks makes stand-up paddle boards and accessories. It will be integrated into Vista Outdoor's outdoor products division. This purchase price is multiple of about 5.5 times the expected 2015 calendar year EBITDA.^[17]

In January 2016, Vista Outdoor announced that it would use its relationships with retailers to expand the number of stores that offer Jimmy Styks products.^[18]

List of Vista Outdoor brands

Outdoor products brands

Shooting sports brands

Leadership

Mark W. DeYoung

Mark W. DeYoung was Vista Outdoor's first chairman and CEO. DeYoung retired from Vista Outdoor in July 2017. Independent board member Michael Callahan was acting as interim CEO and chairman as of the same date.^[19]

Before heading Vista Outdoor, DeYoung was President and CEO of Alliant Techsystems (ATK) from 2010 to 2015. During his tenure, ATK completed acquisitions of Savage Arms and Bushnell. In 2015, DeYoung led the transaction that spun-off ATK's sporting goods business to create Vista Outdoor and merged ATK's aerospace and defense units with Orbital Sciences forming Orbital ATK. DeYoung previously headed ATK's Armament Systems group, the company's largest business. Under DeYoung, this unit expanded into new markets and increased its revenue from $600 million in fiscal year 2003 to $2.1 billion in fiscal year 2010.^{[12][20][21][22]}

DeYoung started his career with Hercules Aerospace in Salt Lake City, Utah in 1985. He held numerous management positions at Hercules in its solid rocket motor and composite structures businesses. After Hercules was acquired by ATK in 1995, DeYoung continued to advance and held roles in finance, operations, composite structures, human resources, and munitions. DeYoung earned an undergraduate degree in business at Weber State University, in Ogden, Utah. He holds an MBA from Westminster College in Salt Lake City, Utah where he taught management and finance and was named "Adjunct Professor of the Year." DeYoung is also a member of Orbital ATK's board of directors.^[21][23]

Operations

Vista Outdoor decided to station its headquarters in Utah after the company applied for and received targeted tax credits from the Utah state government. The company thus capitalized on Utah's goal of recruiting global brand businesses from six strategic economic clusters: outdoor products, life sciences, aerospace/defense, financial services, energy, and software/information technology. In its application, Vista Outdoor said it would invest about $10 million in a new facility where about 90 highly-paid employees would work. Counting medical benefits, these employees will be paid about $125 million over a seven-year period. Utah economic development officials expect about $6.7 million in new tax revenue from the project over this period.^[24]

Although its corporate headquarters is in Utah, the leadership teams for individual brands will remain in the locations where products are designed and developed.^[2][25][26] Vista Outdoor has about 5,800 employees worldwide, with 4,000 in the United States. The company has manufacturing and support facilities spread over 11 U.S. states, Puerto Rico, Mexico, and Canada. It has sales and sourcing operations in Mexico, Canada, Europe, Australia, New Zealand, and Asia.^[1][26] For example, 1,200 of Vista Outdoor's employees staff an ammunition factory in Lewiston, Idaho.^[27]

In June 2015, Vista announced that it would build its new corporate headquarters at Station Park in Farmington City, Utah. As of June 2015, construction was expected to begin during the summer of the same year with completion expected in the middle of 2016. Station Park is a mixed-use development next to a commuter rail station.^[28]

In January 2016, Vista opened a factory in American Fork, Utah to manufacture Gold Tip and Bee Stinger archery products.^[29] The new factory is significantly larger than the facility it replaced. The additional space is being used for increased research and development, improved production processes, and better employee amenities.^[30]

References

External links

• Official website