Vista Outdoor (VSTO) has reported 97.70 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.86 million, or $0.02 a share in the quarter, compared with $37.31 million, or $0.61 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.68 million, or $0.03 a share compared with $38.80 million or $0.63 a share, a year ago.
Revenue during the quarter dropped 5.48 percent to $578.75 million from $612.30 million in the previous year period. Gross margin for the quarter contracted 188 basis points over the previous year period to 24.85 percent. Total expenses were 97.59 percent of quarterly revenues, up from 88.93 percent for the same period last year. That has resulted in a contraction of 866 basis points in operating margin to 2.41 percent.
Operating income for the quarter was $13.97 million, compared with $67.80 million in the previous year period.
However, the adjusted operating income for the quarter stood at $14.84 million compared to $70.20 million in the prior year period. At the same time, adjusted operating margin contracted 890 basis points in the quarter to 2.56 percent from 11.47 percent in the last year period.
"Vista Outdoor is focused on implementing initiatives that will ensure we achieve the vision and performance objectives we have established for this company, and in doing so, generate growth and returns for our shareholders," said Vista Outdoor chairman and chief executive officer Mark DeYoung.
For financial year 2018, Vista Outdoor projects revenue to be in the range of $2,360 million to $2,420 million. The company forecasts diluted earnings per share to be in the range of $1.10 to $1.30.
Operating cash flow declinesVista Outdoor has generated cash of $154.69 million from operating activities during the year, down 21.88 percent or $43.31 million, when compared with the last year. The company has spent $548.68 million cash to meet investing activities during the year as against cash outgo of $503.20 million in the last year. It has incurred net capital expenditure of $90.53 million on net basis during the year, up 119.98 percent or $49.38 million from year ago.
Cash flow from financing activities was $287.93 million for the year, up 49.50 percent or $95.33 million, when compared with the last year.
Cash and cash equivalents stood at $45.08 million as on Mar. 31, 2017, down 70.29 percent or $106.62 million from $151.69 million on Mar. 31, 2016.
Working capital increases
Vista Outdoor has recorded an increase in the working capital over the last year. It stood at $763.46 million as at Mar. 31, 2017, up 12.15 percent or $82.70 million from $680.76 million on Mar. 31, 2016. Current ratio was at 3.20 as on Mar. 31, 2017, up from 2.85 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 79 days for the quarter from 59 days for the last year period. Days sales outstanding went up to 35 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding has increased to 58 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went down to 13 days for the quarter from 14 for the same period last year.
Debt increases substantiallyVista Outdoor has witnessed an increase in total debt over the last one year. It stood at $1,121.25 million as on Mar. 31, 2017, up 67.28 percent or $450.96 million from $670.29 million on Mar. 31, 2016. Total debt was 37.67 percent of total assets as on Mar. 31, 2017, compared with 22.78 percent on Mar. 31, 2016. Debt to equity ratio was at 0.90 as on Mar. 31, 2017, up from 0.40 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
