Vista closes FY2016 on high note
Vista brands on display at SHOT Show 2016. (Photo: Daniel Terrill)
Vista Outdoor closed out 2016 on a high note with $2.3 billion in sales and raking in $147 million in profit, according to the company’s annual filings with Securities and Exchange Commission.
The Utah-based conglomerate includes roughly 50 brands comprised of gun, ammo and outdoor companies like Savage Arms, Federal Premium, BlackHawk! just to name a few.
Majority of the sales for the Utah-based conglomerate came from gun and ammo sales, which made up$1.41 billion, or 62 percent, and outdoor goods contributed $861.8 billion.
The company reported a slight spike in shooting goods — by about $55.9 million, or 4.1 percent — from the year before. That increase was primarily driven by centerfire and rimfire ammo sales.
For 2016’s fourth quarter, Vista’s sales totaled $619 million, up 26 percent from last year.
Citing figures reported by federal regulators, Vista reported in increase in background checks for long guns. For 2015’s calendar year, the federal background check system processed 5.5 million checks for long guns, which is only marginally different from the year before. So far in 2016, there have been more than 2.9 million checks for long guns.
“This increase along with higher sales on a year-over-year basis within shooting sports in the back half of fiscal year 2016, indicates the market is stabilizing after the declines seen in fiscal years 2014 and 2015,” the company reported.
What’s categorized under the outdoors section — meaning not guns or ammo — made up 38 percent of annual sales, totaling $861.6 million. It’s also an area Vista has been rapidly growing.
Vista’s chief executive officer, Mark DeYoung, credits success and value for shareholders to an expanding the list of brands that fall under the company’s umbrella.
“Our acquisition pipeline remains robust, and we are committed to delivering long-term shareholder value,” he said in a statement issued along with the filing.
In 2016, Vista completed the acquisition process of the Action Sports division of BRG Sports, and last year, the company acquired Jimmy Styks and CamelBak.
By comparison, competing conglomerate, Remington Outdoor Company, finished 2015’s calendar year with a $135.2 million loss, according to filings released late April. Like Vista, Remington’s focus has been expanding, something that’s also attributable to the loss. Remington listed the loss as “restructuring and start-up” costs.
Remington’s annual sales totaled $808.9 million, down $130.4 million in 2014. Of the total, firearms contributed $375.2 million, ammo $355.7 million, and other consumer goods $78 million.
Moving forward, Vista identified financial guidelines for FY2017 that include total sales ranging between $2.72 billion to $2.78 billion.
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Source: http://www.guns.com/2016/06/01/vista-closes-fy2016-on-high-note/
