Vista Outdoor Inc.

Hello and welcome to the first quarter fiscal year 2025 Vista Outdoor Earnings Conference Call. My name is Alex and I'll be coordinating the call today. If you'd like to ask a question at the end of the presentation, please press star followed by one on your telephone keypad. And I'll hand it over to our host, Tyler Lindwall, Vice President of Investor Relations. Please go ahead.

Thank you, Operator, and good morning to everyone joining us for our first quarter fiscal year 2025 earnings call. With me this morning are Eric Nyman, Co-CEO Vista Outdoor and CEO Revalyst, Jason Vanderbrink, Co-CEO Vista Outdoor and CEO The Kinetic Group, and Andy Keegan, Chief Financial Officer, Vista Outdoor. Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements reflecting future events and their potential effect on our operating and financial performance. We make these statements under the safe harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today, and we are under no obligation to provide updates to these forward-looking statements. These forward-looking statements are subject to the risks and uncertainties that face VISTA Outdoor and the industries in which we operate, and actual results may differ materially from these forward-looking statements. We encourage you to review our quarterly earnings press release and VISTA Outdoor's SEC filings for more information on these risks, factors, and uncertainties. Please also note that we have posted presentation materials on our website at investors.vistaoutdoor.com, which supplement our comments this morning and include reconciliations of non-GAAP financial measures. Eric, I'll turn it over to you.

Thank you, Tyler. Good morning, everyone. And thank you all for joining us this morning as we discuss our first quarter fiscal year 2025 results. Before I dive into the quarter, I wanted to first touch on the press release issued last week. Last week, the Board issued a release noting that we have commenced a review of strategic alternatives and have adjourned the special meeting for the CSG transaction to September 13, 2024. The Board is committed to acting in the best interests of the company and its stockholders. The strategic review will be comprehensive and include the following. One, an exploration of a full range of alternatives for Revelist. including a potential sale of Revelist. CSG is also considering an acquisition of Revelist with potential partners in addition to its proposed acquisition of the Kinetic Group. Two, an engagement with MNC Capital and its private equity partner with respect to its proposal to acquire Vista Outdoor to see if it can deliver superior value for the company's stockholders. This follows MNC's recent public statement on July 26, 2024, that if there were a reason or basis to increase our offer, including VISTA engaging with us in providing one, we would increase our offer price. In light of that recent statement, the Board has determined that MNC's proposal would reasonably be expected to lead to a superior proposal and meets the standard for engagement under the terms of the CSG merger agreement. Considering the extensive diligence conducted by MNC and its private equity partner to date, Vista Outdoor expects MNC to be able to confirm an increased proposal for the acquisition of Vista Outdoor in short order. Three, a continued consideration of the separation of Revelist and the Kinetic Group through a spinoff. Our advisors are looking at several strategic alternatives in order to maximize stockholder value. As an update on the strategic review, we have engaged with MNC to see if they can deliver superior value for the company's stockholders. Additionally, we have reached out to several parties regarding a potential acquisition of the Revelist business. Furthermore, CSG remains steadfast in their commitment to acquiring the Kinetic Group and is exploring the acquisition of Revelist with potential partners. The Board continues to recommend Vista Outdoor stockholders vote in favor of the proposal to adopt the merger agreement with CSG. We look forward to evaluating all strategic alternatives that would maximize value for stockholders, and we remain as focused as ever on delivering high-quality, innovative products for our consumers around the world. Moving on to Revolus results. Our teams across the organization executed against our plan in the first quarter of fiscal year 2025, and we are grateful for their hard work delivering in the face of continued market headwinds in certain segments and the continued uncertainty in the face of our planned separation. We did face some challenges in Q1 in both supply chain and new product launch timing introductions, which led to results that were not up to our expectations. That said, we understand the challenges and are already putting solutions in place to improve in the future. And the teams did find some tailwinds led by our gear up cost saving initiatives and great product innovation. Sales for the quarter were $274 million and adjusted EBITDA was $16 million with an adjusted EBITDA margin of 5.7%. We are confident in our fiscal year 2025 financial targets. and strongly believe in Revolus' potential to deliver on the long-term strategy that we are executing. Across the enterprise, we made progress implementing our actionable standalone strategy to drive value creation. Our strategy is built on our Dragonfly Wheel to generate momentum. The Revolus Dragonfly Wheel is our multi-pronged strategic flywheel, which plays upon our iconic Dragonfly logo. The Dragonfly Wheel contains our key strategies to unlock growth and propel margin expansion across our integrated international house of brands. The Dragonfly Wheel is brand focused and consumer informed to unlock value through innovative product and technology offerings, enhanced direct-to-consumer and international channel strategies, a robust digital gaming ecosystem, and world-class licensing partnerships. We continue to focus on innovation by leveraging our portfolio of category-defining power brands to win market share despite challenges related to market softness, order timing, and divestitures. We remain focused on driving growth and market share gains no matter the market conditions and are poised to revolutionize our future through innovative, brand-led, and consumer-obsessed product and technology offerings, as well as leading partnerships. Recent examples of these brand highlights, innovative offerings, and partnerships include in Revelist Adventure Sports, we are capturing market share across numerous categories, including helmets, mountain bike protection, and bike hydration in a declining market environment. Newness is gaining traction with our customers, and many of our newly introduced products and new styles, such as the V3 RS, Race Frame, and PureView are sold out. We intend to further capitalize on these trends with upcoming product launches. In Revelist outdoor performance, recent product launches across the platform have driven market share gains. We continue to grow market share at Sims, where we hold a dominant position in waders and in fishing sportswear, where we recently won best in category awards at ICAST for the women's latitude hoodie and the pro dry suit. The successful launch of the Camp Chef gridiron in the spring drove 8% growth in the flat top grill category, outpacing the market in a category that has been a bright spot within the broader outdoor cooking market. In Revelist precision sports technology, Foresight has had multiple consecutive quarters of growth as a result of the Quad Max and Falcon product launches. The delayed launch of the Phantom 3 GPS drove Bushnell golf sales lower than anticipated in the quarter, though we still expect this product to capture additional sales for the rest of fiscal year 2025. Foresight and Bushnell Golf continue to set the standard in golf technology. The power of these two brands living under the same leadership and platform will really be showcased this fall with a cooperative effort between Foresight Sports and Bushnell Golf that will change the way golfers capture and utilize information from launch monitors and laser range finders. In licensing, our platform teams have been hard at work leveraging our brands to ink new licensing partnerships to unlock additional revenue streams, further scale our brands, and reach new customers. We are excited to announce our biggest partnership ever, a collaboration with celebrity chef and restaurateur Guy Fieri. This collaboration between Revelist, Camp Chef, and Fieri unites the mayor of Flavortown himself with the leading innovator in outdoor cooking gear. Fieri is long served as an unofficial brand ambassador while using the brand's products on screen, on stage, and at home. This multi-year partnership will include several collaborations between Fieri and Camp Chef and will include a number of co-branded cooking equipment pieces. Be on the lookout for more news on this category-defining announcement on August 19th across Revellous social channels, and CampChef.com. We are extremely excited to welcome Guy to Team Revelist. Furthermore, at Foresight, we have an exciting licensing agreement and product collaboration coming very soon through our relationship with Volition America. This custom offering will bridge the tangible and the digital worlds and will benefit the Folds of Honor Foundation. Moving on. Our international expansion and transformation of our operating model is underway, and we believe that there is a significant opportunity to elevate and grow our brands through a unified and scalable approach. We have made substantial progress at Revelist by leveraging the operational backbone we acquired through our acquisition of Fox. This has allowed us to expand our presence across the globe for additional brands to reach new markets. We plan to continue the strategic expansion to regions where a unified operating model can be a growth catalyst for our brands. As we look at our direct-to-consumer and digital approach, our enhanced direct-to-consumer strategy places an emphasis on our own brand channels and other e-commerce sites, including Amazon. This strategy shift is in process and early results are promising, particularly with Amazon. where we grew low single digits year over year in Q1. We have also seen gains at certain direct brand sites, including Foresight, where the direct site revenue is up over 30% year over year and continues to be a leading growth contributor to the Revelist Precision Sports Technology platform. We also had a milestone achievement in the Revelist Adventure Sports platform with the iPhone-created campaign CamelHack that over-indexed and received over 1 million views on TikTok and 2 million views on Instagram, becoming the highest viewed post on Camelback's Instagram of all time. We aim to repeat this success with other products to drive brand engagement and sales in the future. Our digital gaming and esports initiatives are applying Revelist's digital-first thinking to create engaging content and gaming experiences that provide new consumer opportunities. Our acquisition of PinSeeker furthered our commitment to this strategy. PinSeeker has seen explosive year-over-year growth, and early results have exceeded our acquisition forecast model, further validating our digital gaming strategy and the decision to acquire that business. The PinSeeker team has also jump-started our broader Foresight Studios strategy, We had a strong quarter of successful course launches, including our recent digital course launch of Pinehurst No. 2, available on our foresight simulators that coincided with the U.S. Open Week played at the namesake course. We also entered into an exclusive partnership with Taraiti, the No. 2 ranked course in the world on the Golf Digest World's 100 Greatest Golf Courses list. These courses add to Foresight's list of premium course offerings that can be purchased for use in our simulators and demonstrate our commitment to providing a world-class user experience for all of our simulator owners. We are encouraged by these developments and the roadmap the team has set forth, and we expect to have more announcements to come soon. You will hear more about our excellent progress on our Gear Up transformation from Andy shortly. But I wanted to highlight the strong work our teams have done to optimize our portfolio to focus on our core assets with significant value and growth potential. In July, we announced the sale of fiber energy products. This strategic divestiture generated cash for Revelist that can be reinvested in our power brands and product innovation in support of our gear up transformation initiative. The new ownership provides resources and scale to the fiber energy brand. and we wish them the best of luck with this new endeavor. Alongside the RCBS sale announced in May, we have now completed two strategic divestitures to rebalance our portfolio. Our strategic review is ongoing and we see additional opportunities in the future. This review is a critical step in evaluating where further rebalancing will help to best position us for long-term success. In closing, I am energized by the roadmap we have in front of us at Revelist. Teams across our business are executing on our transformation through the Gear Up program and our value-creating Dragon Flywheel to unlock growth and margin expansion through game-changing innovations, exceptional licensing partnerships, an enhanced direct-to-consumer and international channel strategy, and digital-first thinking to create engaging content and gaming opportunities. We are relentless in our pursuit of excellence, and that drives my belief in our strategy and the future ahead of us. I am confident in our financial targets and ability to double our standalone adjusted EBITDA in fiscal year 2025. In that spirit, we'll be announcing the date of our upcoming Investor Day in the weeks ahead and look forward to sharing more details about the REVOIS story. I'll now hand it over to Jason to provide an update on the Kinetic Group. Jason, over to you.