Vista Outdoor Inc. reported sales of $551 million in the fiscal second quarter ended Oct. 4, up 5 percent from the prior-year quarter, and up 2 percent on an organic sequential basis.

The year-over-year increase primarily reflects $24 million of sales from the Jimmy Styks and CamelBak acquisitions.

“As expected, we are starting to see stabilization in the shooting sports market as evidenced by another quarter of sequential growth in our Shooting Sports segment,” said Vista Outdoor Chairman and Chief Executive Officer Mark DeYoung. “In the Outdoor Products segment, I am pleased to report the integration of our two recent acquisitions, Jimmy Styks and CamelBak, is going well and the brands are performing in line with our expectations. Vista Outdoor's product development pipeline is robust, and we plan to launch several new and exciting products during the early 2016 show season.”

Gross profit was $149 million, up 16 percent from the prior-year quarter. The increase includes $9 million of gross profit from the recent acquisitions as well as increased organic gross profit.

Operating expenses were $88 million, compared to $69 million in the prior-year quarter. The increase reflects additional expenses as a result of acquisitions, standalone company costs, stock-based compensation, and additional investments in R&D, selling and marketing.

Fully diluted earnings per share (EPS) was $0.52, compared to $0.53 in the prior-year quarter. Adjusted EPS was $0.63, compared to $0.60 in the prior-year quarter.

Year-to-date free cash flow was $5 million, compared to a use of $36 million in the prior-year period.

The company repurchased approximately 690,000 shares in the quarter for $31 million. Since October 4, 2015, Vista Outdoor repurchased approximately 538,000 additional shares for $23.5 million.

“During the quarter, our sales increased due to the recent acquisitions and balanced performance in our organic businesses,” said Vista Outdoor Chief Financial Officer Stephen Nolan. “We achieved increased firearms sales and experienced some market stabilization in the rest of the Shooting Sports segment. Our Outdoor Products segment had strength in optics, golf and shooting accessories, partially offset by challenges in tactical products and archery/hunting accessories, along with foreign currency pressures. Vista Outdoor reaffirms FY16 financial guidance and continues to expect low, single-digit organic growth for the year.”

Reaffirmed Outlook for Fiscal Year 2016

Vista Outdoor reaffirmed its guidance for fiscal year 2015, which calls for:

  • Sales in a range of $2.17 billion to $2.24 billion;
  • Adjusted EPS in a range of $2.05 to $2.30;
  • Capital expenditures of approximately $45 million;
  • Free cash flow in a range of $150 million to $180 million; and
  • Tax rate of approximately 38 percent.