Vista Outdoor Inc. (VSTO) has reported an 124.10 percent jump in profit for the quarter ended Oct. 02, 2016. The company has earned $73.22 million, or $1.22 a share in the quarter, compared with $32.68 million, or $0.52 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $44.34 million, or $0.74 a share compared with $39.58 million or $0.63 a share, a year ago.

Revenue during the quarter grew 24.11 percent to $684.31 million from $551.38 million in the previous year period. Gross margin for the quarter expanded 7 basis points over the previous year period to 27.09 percent. Total expenses were 84.72 percent of quarterly revenues, down from 88.98 percent for the same period last year. This has led to an improvement of 426 basis points in operating margin to 15.28 percent.

Operating income for the quarter was $104.56 million, compared with $60.74 million in the previous year period.

However, the adjusted operating income for the quarter stood at $76.60 million compared to $70.20 million in the prior year period. At the same time, adjusted operating margin contracted 154 basis points in the quarter to 11.19 percent from 12.73 percent in the last year period.

"Vista Outdoor delivered solid second quarter results, including an increase of 24 percent in both sales and gross profit over the prior-year period as a result of acquisitions and strong performance in our Shooting Sports segment," said Vista Outdoor chairman and chief executive officer Mark DeYoung. "Year over year, our Outdoor Products and Shooting Sports segments delivered organic sales growth for the quarter. During the quarter, we also welcomed Camp Chef to the Vista Outdoor family of brands. Camp Chef is a leading provider of outdoor cooking solutions and provides Vista Outdoor with a foothold in one of the camping market's most attractive categories."

For fiscal year 2017, Vista Outdoor Inc. forecasts revenue to be in the range of $2,720 million to $2,780 million. The company expects diluted earnings per share to be in the range of $2.65 to $2.85.

The company has spent $489.20 million cash to meet investing activities during the first six months as against cash outgo of $479.27 million in the last year period. It has incurred net capital expenditure of $31.05 million on net basis during the first six months, up 81.73 percent or $13.96 million from year ago period.

Cash flow from financing activities was $375.82 million for the first six months, up 32.09 percent or $91.31 million, when compared with the last year period.

Cash and cash equivalents stood at $48.28 million as on Oct. 02, 2016, down 43.95 percent or $37.86 million from $86.13 million on Oct. 04, 2015.

Working capital declines

Vista Outdoor Inc. has witnessed a decline in the working capital over the last year. It stood at $637.72 million as at Oct. 02, 2016, down 12.92 percent or $94.63 million from $732.34 million on Oct. 04, 2015. Current ratio was at 2.12 as on Oct. 02, 2016, down from 3.19 on Oct. 04, 2015.

Cash conversion cycle (CCC) has decreased to 94 days for the quarter from 145 days for the last year period. Days sales outstanding went down to 66 days for the quarter compared with 69 days for the same period last year.

Days inventory outstanding has decreased to 53 days for the quarter compared with 106 days for the previous year period. At the same time, days payable outstanding went down to 24 days for the quarter from 29 for the same period last year.