With Vista Outdoor’s impending split and sale, they declined to have an earnings call for their quarter that ended in September. Instead they released earnings through a press release and gave an update on the vote for the sale.
The vote is going to happen on November 25th. It’s likely the final major hurdle in the way of the sale process.
I am proud of the strong quarter the Vista Outdoor team delivered as we move towards separation. Regarding the separation, the Board underwent a thorough and competitive process, reviewing numerous strategic and other alternatives over nearly three years to maximize value to stockholders. At the conclusion of our review, the Board determined that the transactions with CSG and SVP together maximize value for Vista Outdoor stockholders. Based on our management team’s current estimates, the CSG and SVP transactions will collectively deliver an estimated $45.00 per share of Vista Outdoor common stock. We are pleased to see ISS is recommending Vista Outdoor stockholders vote “FOR” the sale of The Kinetic Group to CSG and recognizes the significant value that the CSG and SVP transactions will deliver to stockholders. The Board continues to recommend Vista Outdoor stockholders vote in favor of the proposal to adopt the merger agreement with CSG at the special meeting of stockholders which will be held on November 25, 2024.
Mike Callahan, Chairman of the Board of Directors
Revelyst Earnings
Camp Chef sits in Revelyst, the outdoor products side of the business. Specifically, they’re in the Revelyst Outdoor Performance segment.
Revelyst has continued to execute on the cost cutting and consolidation strategy. This has led to improved operating performance ahead of the sale.
Our teams across Revelyst worked hard to deliver a terrific second quarter, keeping us on track with our commitment to double standalone adjusted EBITDA for the Fiscal Year. We saw Revelyst adjusted EBITDA more than double sequentially in the quarter driven largely by the demonstrable progress made in our GEAR Up transformation. GEAR Up initiatives have now delivered $11.6 million of realized cost savings through the first half of Fiscal Year 2025 across our key focus areas that include Organizational Structure, Real Estate, Supply Chain and Operations and Direct and Indirect Spend. Actioned initiatives include streamlining our corporate real estate footprint, further optimization of our distribution network and realizing efficiencies through the consolidation of external vendor spend. We expect further profitability improvements in the Fiscal Year primarily driven by the $25 to $30 million of estimated realized cost savings attributable to the GEAR Up transformation positioning us well for the future.
Eric Nyman, Co-CEO of Vista Outdoor and CEO of Revelyst
Similar to Middleby, Revelyst has showed some signs of gains in the quarter with a 5% increase in gross profit. They also are in a better inventory position than they were from the impacts of the Pandemic.
Revenue was down compared to the same quarter last year drive by lower volume from Revelyst Adventure Sports. Revenue was also hurt by the divestiture of their wood pellet business.