Vista Outdoor CEO Resigns Unexpectedly
Chris Metz on Feb. 1 stepped down as chief executive of Anoka-based recreation company Vista Outdoor. The company’s board asked Metz to step down due to a “loss of confidence in his leadership,” according to a Thursday SEC filing.
The board’s decision did not stem from any disagreements relating to the company’s “operations, policies, or practices,” according to the filing. The board noted that its loss of confidence wasn’t the result of “financial reporting or internal controls,” either, which makes Metz’s departure a bit of a mystery.
Despite that, Metz apparently leaves on good terms. “It has been an honor to lead Vista Outdoor for the last six years,” Metz said in a press release. “Vista Outdoor has an excellent team of dedicated employees who will continue to drive the Company’s future success.”
Metz’s departure comes ahead of Vista’s planned split into two separate publicly traded entities, one focused on ammunition and the other focused on outdoor products. The ammunition business will continue to be based in Anoka, while the outdoor division will be headquartered in Montana. “I stand fully behind the planned separation of the Outdoor and Sporting Products segments into two strong, standalone businesses and believe the Company has a bright future ahead,” Metz said.
Metz will remain with the company as a “full-time, non-officer employee” of the company through March 31. After that final termination date, Metz will receive a “lump sum cash payment equal to 100% of his current annual base salary.”
Meanwhile, Vista board member Gary McArthur was appointed to serve as interim CEO. “The entire Board, including myself, has been deeply involved in the oversight and execution of our strategy, and I am confident we will continue to capitalize on our strong momentum,” McArthur said in the press release.
Vista has been buying up other outdoor products companies ahead of its planned separation. In July, the company announced plans to acquire Fox Racing and Simms Fishing.
On Thursday, Vista also released its latest quarterly earnings showing a drop in net income. For the third quarter ended Dec. 25, Vista reported net income of $65.1 million, down from $118.1 million in the same quarter last year. The company’s net sales also declined, though not as much. Vista reported third quarter sales of $754 million, down from $794 million.
