Many familiar faces and new faces today. Thank you for joining us for Vista Outdoor's 2022 Investor Day at the New York Stock Exchange. My name is Shelly Hubbard, Vice President of Investor Relations, and we're excited to have both the executive team and the extended leadership team in attendance today. I wanna introduce our speakers today. You're gonna hear from Chris Metz, Chief Executive Officer, Jason Vanderbrink, President of Sporting Products, Vishak Sankaran, President of Outdoor Accessories and Golf, and Sudhanshu Priyadarshi, our CFO. On the next slide, I just wanna note our safe harbor. We are going to be making some forward-looking statements today. Please note the forward-looking statements. These remarks do constitute forward-looking statements we're gonna make today for purposes of the safe harbor provision. Note that the company does not undertake any obligation to update these as we go forward. Without further ado, I'd like to introduce CEO, Chris Metz. Vista Outdoor, the owner of brands like Remington Ammunition and CamelBak, is spinning off its ammo and outdoor segments into two separate publicly traded companies. Sporting Products is a lower growth, very high cash flow business that tends to attract an investor base that would prefer a return to shareholders via dividends. Outdoor Products, it's a business that's growing faster. It's, you know, half of our growth has been organic, half of it's been acquisitive. We've acquired 5 companies in Outdoor Products in the past 12 months. Good morning, everyone. Shelley, I've got to thank you for working the kinks out, hopefully, on the slides here. Hopefully, we'll continue to advance here. I usually have to take that honor. Hey, listen, it's good to see everybody here live and in person. Also, a warm welcome to those folks who are joining us virtually. For those of you who are new to Vista Outdoor, we're a $3 billion company, a diversified portfolio of 39 leading brands. Importantly, many of our brands share number one share positions and are in healthy, growing, high participation markets. We're winning because of the strengths of the strategies we put in place years ago and the execution against those strategies, which we believe positions us well to continue to capture the positive lifestyle shifts in outdoor recreation. Our purpose is to unite people around a shared love and responsibility for the outdoors. Our vision is to empower people to achieve their goals and live their best outdoor lives. Our commitment is to invest in our people and communities and to lead and promote stewardship. Our purpose, our vision, and our commitment to lead is centered around three focus areas, which are really, really important to us. The first is policy and partners. We at Vista are passionate about ensuring that we are good stewards of our planet and creating access for all. That's why we advocate for policies on land conservation, recreational access, and climate change solutions. We want future generations to enjoy the same healthy environment outdoors that we do today. Second is business operations. In order to maintain a healthy planet, we focus on integrating KPIs into our operations, provide FASB-related disclosures in our annual ESG report, and do our part to reduce emissions and manage overall energy usage. We recycle and use recycled materials and sustainable packaging wherever and whenever possible. Lastly, we are focused on culture and people. We're committed to a diverse and inclusive workforce through a variety of ways, including improved hiring practices to attract a racially diverse people, veterans, and women. I'm proud to say that we're being recognized in the world for what we're doing. For example, we were personally, or we were recently named as one of America's most trusted companies in 2022 by Newsweek. Investor's Business Daily or IBD recognized Vista Outdoor as one of the best ESG companies in 2021, placing us in the top three for all the consumer products. Last year, Forbes awarded us as one of the most admired employers in 2021. Thanks to the hardworking people at Vista and the efforts of our team, I was recently named as a finalist for EY's Entrepreneur of the Year. We have a saying at Vista Outdoor that when we do well financially, we can also do good for others. This is my favorite page. I mean, these are the leaders and many others in this room that are the ones that make it all happen. If you remember a couple years ago, this is the same exact org chart I chose, I showed you then. We have a senior tenured leadership team of highly skilled operators that have seen different cycles and have built Vista into what we are today. Although you're only going to hear from a few of us and a few of them in the next 60 minutes, you'll be able to meet a lot of the other leaders in the organization throughout lunch and in the product display areas here and outside. We are incredibly well-positioned to continue to grow and prosper as we have in the past few years. We have over a dozen number one share leading brands in our portfolio. Our TAM is over $100 billion and growing. We generate in excess of $300 million in cash flow with very little debt. We're generating in excess of 20% EBITDA margins and guided that this will continue. We have one of the most talented, proven management teams in the industry, certainly a good setup for continued success. When you look at this page and you think about our brand portfolio, it really brings home why Vista Outdoor is truly unique. We have more number one brands than any competitor in our markets we compete in. We have 10 brands in excess of $100 million, three in sporting products, and seven in outdoor products. We are far and away the largest supplier in every big customer you can think of, and we are the most diverse company participating in many different outdoor recreational categories. Why, why is this important? Well, this gives us the size and scale to employ the largest service and support organization in the industry, which gives us a presence at retail to be the absolute best. We have tremendous relationships with every large customer from the CEO on down. Our diversity of categories allows us to withstand corrections in a particular segment better than others. You'll hear me say this many times going forward, but in today's very unsteady macro environment, we are as good a flight to safety as any investment you make. Here we've got the manner in which we create value. These are our strategic pillars or our strategic plan. We introduced this a couple years ago, but frankly, we've been working on this since the day I walked in. It has evolved, and certainly we've added to it over the years, but it is largely the same framework that we put in place when I walked in the door. This is part, honestly, of the secret sauce that makes us who we are. Everyone in our company knows the five strategic pillars that we are investing in to create value. I'll touch on a few of these centers of excellence, acquisitions, and capital allocation in later slides, but let me touch just briefly on the first two, talent and culture and organic growth. We brought in some of the best talent and created a founder's mentality-led culture that gives our brands the autonomy and the voice to be their best. We hold them accountable for greatness, but importantly, we give them the responsibility to achieve it. Organic growth. From the very start when I walked in the door, we've invested just about every free dollar we had in growth, particularly new product innovation and brand building. We grew over 20% organically in the past 12 months, and 40% of it was from new products introduced in the last 36 months. Clear evidence of the impact in investing in product innovation. Of course, as they like to say, the proof is in the pudding, and we've grown our revenues by over $1 billion over the past three years. W've taken our EBITDA from 5.5% to 24.3%, and we've taken our free cash flow to over $300 million a year. In fact, our free cash flow would've been even higher this past fiscal year, but not for the fact that we strategically invested in inventory that we think will pay dividends this year. Folks, I'll be the first to admit that we've benefited from the tailwinds of COVID, but let me share what we have done irrespective of COVID. We've created a new products machine that now contributes roughly 40% of our revenues, and we all know that with new products comes higher margins. We've created an entire digital team that didn't exist when I walked in four and a half years ago. D2C alone has grown from $0, cold start, to over $200 million today, and all of this at higher margins. Most exciting, though, is that we have a substantial room to continue to grow, and all the heavy investing is largely behind us. We've turned Vista from a customer-centric company into a customer-centric and consumer-centric organization. We've acquired seven companies in the past couple of years, contributing an incremental $500 million to our top line. These newly acquired companies not only lead our company in growth but also exceed our legacy margins. Let me say that again a little bit differently. We are acquiring into businesses that both grow faster and are more profitable than our legacy businesses today. I'm extremely excited about the sustained structural changes that we've made and brought to Vista to drive long-term growth and value. We have built a $3 billion business generating roughly $700 million a year in EBITDA, $300 million a year in cash flow, and we don't take target-setting lightly. We set realistic financial goals a year ago, and we exceeded just about every one of them with record performance off of a record performance the prior year. Although I'm extremely proud of the 20% organic growth we delivered the past twelve months, I'm also excited about the companies we have acquired. As our balance sheet strengthened and we developed the means to acquire, we did so prudently. We did this while also buying back $100 million in stock and maintaining an incredibly low leverage. I've spent a decade before I came to Vista Outdoor in private equity, and I've been part of dozens and dozens of acquisitions, and I've certainly seen my share of home runs and I've seen my share of strikeouts. All of these experiences have shaped me and enabled me to lead our efforts to build our own internal M&A team. In fact, we built a very differentiated M&A team and a differentiated M&A strategy. Although I don't want to give away the recipe, if you will, I'll touch on a few things that we believe make us better than most. First, we spend a lot of time identifying companies that fit our criteria and that our business units covet. When we go, we then go build relationships with these targets. I personally spend an increasing amount of time getting to know founders and leaders of target companies, many of which may not come to market for another few years. We've also built an incredibly talented internal team of about six folks within our M&A group that have various backgrounds. Backgrounds in strategy, private equity, investment banking. We use this group as a farm system, if you will. A farm system with resources flowing into our business units, allowing us to recruit and continue to build talent with substantial career paths throughout the company. Clearly, our size and scale create advantages versus others, and we leverage this to increase value. We know our centers of excellence create real growth and margin expansion for every company we acquire. Simply put, we've expanded margins with every acquisition we have made. Our systems, particularly our web-based e-commerce technology, has enabled us to exceed our growth case for every acquisition we've made to date, and we continue to push on what other scale advantages we think we can create. One such example is licensing. We know we've got a stable of great brands, and we believe we can create a multimillion-dollar profit stream with the licensing talent we have recruited and the opportunities that we see going forward. Our acquisitions to date have been compelling and multifaceted, proving that we don't need to stick to one play or a single strategy. We've bought the traditional type of tuck-in or bolt-on acquisitions like Remington, HEVI-Shot, and Fiber Energy. We've also invested in new platforms like e-bikes with QuietKat and technical gear and apparel with our most recent one, Stone Glacier. We've also bought into what we call high tech, high margin businesses like Foresight Sports. The common thread amongst all of these is they are synergistic with our existing businesses. They're great cultural fits and are businesses that we can get great returns on. Of course, as they say, again, the proof is in the pudding. With Remington, we studied this business so hard when it went through its bankruptcy proceedings prior to that we felt like we knew the business better than the current management team that was there. Today, boy has it paid off with over $300 million of revenue. HEVI-Shot, we had built a strong relationship with the founder and the owner and this company over the years, and when it came time for the owner to sell, we pounced. This gem has extended our leadership into non-toxic ammunition leaders. QuietKat? Yeah, QuietKat has been a wonderful acquisition, as we've more than tripled the business since acquisition, and I'll touch more on this later. Foresight Sports, what a terrific acquisition. We got to know the founders, John and Scott, and built their trust, enabling us to beat some pretty formidable golf companies to acquire them. Like other acquisitions, we've helped John and Scott expand capacity. We've helped surround them with what we call subject matter expertise and resources, and we are currently helping them with systems. Systems that will enable them to scale going forward very efficiently or more efficiently. The results have been incredible so far. We're on pace to exceed $125 million this year and believe that this will be a half a billion-dollar platform at Vista Outdoor with company-leading margins. I will now move on to the decision to separate our business, our Outdoor Products business, and our Sporting Products business from Vista Outdoor. Many of you have seen this slide from our announcement a couple weeks ago, and we believe we have two viable and distinct business platforms that have compelling investment theses that will lead to continued growth in value. First, Outdoor Products. With seven brands in excess of 100 million dollars in sales, Outdoor Products will continue to be the acquirer of choice. With LTM sales of $1.3 billion, we expect to continue to grow this business prior to spin, both organically and through acquisition, while carrying less than 2x debt. I'd fully expect Outdoor Products to be larger upon separation. Sporting Products. With extremely strong market-leading positions within ammunition, Sporting Products will continue to be the dominant force within each of its categories. With LTM sales of $1.7 billion, we expect to leverage the high free cash flow of this business to pay down debt while simultaneously paying an attractive dividend to shareholders. We've tried extremely hard, as many of you know, over the last number of years, with superb execution to unlock the value within the current structure of Vista Outdoor. In doing so, we have taken our stock price from a low of roughly $5 to where it sits today at $38. Our EBITDA multiple has compressed over the same period of time from roughly 10x EBITDA to today's 4x EBITDA. We've learned over the years there are distinct enough differences in our two operating segments that lend themselves to being standalone. A separation gives us the ability to focus deeper and invest in our two operating segments and in areas of partnership that we can't as easily do today as one. Both companies will have industry-specific, discrete capital allocation models and strategies that will be different, thus allowing new investors drawn to that type of investment philosophy to enter the stock where they won't necessarily enter the stock today. Unfortunately, we know there are people and companies that are reticent to invest in us, and the separation opens those doors. We know that today, we are dramatically undervalued at 4x EBITDA, despite outperforming many of our peers. Now, I'm not here by any stretch of the imagination to tell you how to value us. You'll do your own work, and you'll come to your own conclusions on this. However, what I can tell you as we studied it is that the group of Outdoor Products companies that are our peer set trade at 12-17 times EBITDA. This is the business that we will spin out of Vista Outdoor. When you compare our assets, our strengths, our market positions, and of course, our performance, our track record, financial metrics and growth projections, you will, I think, come to the same conclusion that we will be valued substantially higher at a higher place than we are today. Keep in mind that we anticipate, as I said previously, that by the time we spin Outdoor Products, we will have acquired a couple more companies to the portfolio, or we'll spin with cash on the balance sheet to allow further acquisitions. Regardless, the new Outdoor Products company will be set up for success. Our Sporting Products business will also be set up for success with an unassailable market position and an incredible free cash flow generation. The business will easily be able to service its debt, set at 3x or less, while also being able to pay an attractive dividend to shareholders. As Sporting Products pays down its debt, it will be able to increase its dividend potentially. Importantly, it will now be free to create partnerships within the industry that is in its best personal self-interest. Net-net, both companies will be substantially stronger. Two distinct businesses with two different growth opportunities, right? Outdoor Products will leverage our centers of excellence to further penetrate a $100 billion TAM, continuing to grow double digits with a proven management team. Sporting Products will leverage its dominant position and strong free cash flow to lean into the unprecedented and diverse participation rates we have seen over the past three years. Of all the slides, this may be the most exciting slide. The participation rates are extremely encouraging across all of our categories. In fact, all of our businesses are seeing historical highs in participation, and all are showing continued strength. Most encouraging, however, is the unprecedented increase in younger, more ethnically diverse, and a growing number from urban areas. To name just a few compelling participation rates, we'll start with camping. Camping trips have increased seven7% since 2015, and over 50% of the new campers identify as non-white. PeopleForBikes reports that February bike sales were 24% higher than the previous three-year average. European Cyclists' Federation forecasts that bike sales will increase 30% by 2030. Hunting licenses drawn the past 12 months are at the highest rate since they started keeping records in 1960. As one of the leaders in packs, in bottles, in backcountry cooking, technical gear, apparel, and all things hunting accessories-wise, we are better positioned than just about anyone to take advantage of these sustainable trends. As you might imagine, we spent an enormous amount of time studying and evaluating the separation. Unanimously, our board determined that this transformative next step was compelling enough to pursue. The timing is right now because both businesses are separating from a position of strength. Our balance sheet and free cash flow will enable our businesses to be continued successfully. We've built great execution by adhering to a disciplined operating model across Vista Outdoor. I don't talk a lot about our operating model, but it is something that honestly makes us unique. It is the same operating model that I helped build while leading portfolio companies in my decade in private equity. Our operating model gives responsibility to leaders, but then holds them accountable for the results. The results are fostered and monitored in various ways, from reporting that we see on a daily basis to daily reporting and reviews on a weekly and monthly basis. It's a rhythm that all of our businesses grow into. We've set some bold, but what we believe are highly achievable targets. Those of you who know me well know that I don't overpromise and under-deliver. Outdoor Products will separate in a year bigger than it is today, and we intend to continue to leverage our free cash flow until separation, as I mentioned previously, pursuing what we believe will be compelling acquisitions. Upon separation, we expect Outdoor Products to be in a low leverage to no leverage position. Sporting Products will separate as the same high-margin, cash-generating machine that it is today. Importantly, Sporting Products will carry a debt structure of three times or less leverage that will allow it to simultaneously service its debt while paying a healthy dividend to shareholders, as I mentioned previously. This capital allocation strategy is extremely important part of unlocking the value to our shareholders with this separation. Let me shift a little bit to Outdoor Products, the business that we're gonna be spinning out of Vista Outdoor. There's four key takeaways on Outdoor Products. One, diversified portfolio of market-leading brands with size and scale. Two, new product innovation investments starting four years ago are really driving strong organic growth. Three, strategic acquisitions increase our TAM and expand our growth and our margins. Significant upside in further TAM expansion as we develop what we call technology ecosystems. We have seen 20% compounding annual growth and significant margin expansion over the past two years. However, this is more than COVID tailwinds. Again, we've built a new products innovation machine that is contributing to 40% of our top-line revenue today. We've built an e-commerce and D2C team that is talking to millions of followers every day, creating compelling content to engage consumers and selling product where and when they want it. We've built an M&A team that I discussed earlier that is delivering acquisitions that grow faster than our legacy businesses and are more profitable. I believe we have an argument with our set of brands to be called the best stable of outdoor product brands in the industry. A third of our brands have number one share positions. seven of our brands generate over $100 million in revenue annually. Today, we operate in a TAM of $12.5 billion across what we call 5 platforms that you see on the left side of the equation with our share position there, or the left side of the page. Adjacencies, however, as we look hard at growing into the $30 billion TAM through prudent acquisitions that we call near adjacencies. That's part of the pipeline that we're looking at today. Adjacencies that we know well and can bring immediate value to. As we look to the future, we have every belief that we can expand and play in the full $100 billion TAM. Now, I wish I could bring up every brand president, every business unit president to you today to present. However, in the limited time we have, we'll bring them up to help answer some questions, and again, you'll get to talk to them later. What I'm gonna do now is just share with you a quick thumbnail sketch on each of our five business platforms. First is CamelBak. CamelBak invented water bottles, packs, and hydration. It's one of the most iconic brands in all of outdoor recreation. However, honestly, we lost our way before I walked in. We weren't focused on the consumer, and we didn't innovate. The market moved to stainless steel, and we were slow to follow. We recruited Greg Williamson, who you'll meet about four years ago. Greg's worked for me in the past and grew up in an ad agency CPG company and knows what great looks like. It's taken Greg a few years to build the team in his image, to develop a thoughtful strategic plan supported by innovative products and brand marketing, but I'm happy to share that CamelBak has got its mojo back. It grew 30% this past fiscal year, coming off of a very strong previous year. It's at the highest level of sales in the company's history, and its pipeline is chock-full with some incredibly innovative new products that you'll see hit the market over the next 12-18 months. I'm very excited about the prospects of CamelBak going forward. Bell and Giro are two of the most well-known and respected brands in cycling, skiing, and motocross, and make up our, what we call our action sports platform. Action sports is a platform that we are very bullish on. The TAM is big. It's $19 billion big. The business is global, with many of our sales coming from outside the U.S., and the participation rate is increasing year-over-year. We have a talented team led by Ric Kern, who's coming off of two record years. Bell & Giro, winning in the industry by leading with innovative products, and we expect this team and this business to continue to grow for us. Camp Chef. Camp Chef is a company we acquired about five and a half years ago, and we have more than doubled the size of the company under the leadership of Brandon Sparrow, who you will also meet today. Despite the headwinds of some of our peer competitors, we love the long-term trends of outdoor cooking. We believe this platform can grow substantially as we look out to the future. Camp Chef has always been the leader in what we call backcountry cooking. We believe that with further investments in talent and brand building, we can continue to grow the share in the backyard category where our competitors play. A big introduction to the backyard will come later this year with our new Apex Grill, the industry's first dual-fuel grill that can cook with pellets and propane, or propane, I should say. It's kind of a, what I would call a one grill for every backyard type of grill. It's gonna be a terrific introduction. It's something we've been working on for years. We also recently acquired Fiber Energy. Fiber Energy gives our team a steady supply of wood chips because our market research has informed us that the attachment rate of branded pellets to branded grills is high and something we didn't have before the acquisition we made recently. Our fourth platform is golf, and we think the potential for golf and margin expansion in our golf platform is incredibly exciting. You're gonna hear from Vishak Sankaran, who is the leader of our golf platform, and he'll take you through golf in a moment. Our last and fifth platform is outdoor accessories. Outdoor accessories is a highly fragmented market, but one with a huge TAM. We have many of the marquee brands in the industry, including Bushnell, where we invented the laser rangefinder 25 years ago. Our talented team continues to innovate with award-winning new products and has taken share in many of the categories we participate in over the past few years. We're extremely excited about our acquisition of Stone Glacier, which gives us a foothold into the growing technical gear and apparel market. Jeff Sposito, who is the President and CEO of that business, he and the team have done a remarkable job in creating what we call a cult-like following for the Stone Glacier brand. We believe we can use our scale and M&A team to continue to find gems like this in the outdoor space. We spent a lot of time developing arguably one of the best in-house M&A teams, as I mentioned before, in really all of outdoor products. I touched on a bit of this earlier in my presentation. As I also mentioned, you know, I personally spend a great deal of time getting to know leaders and founders of potential businesses that we have identified as good fits for our company. We think this is extremely important to limiting the risk and both sides getting to know each other and knowing what to expect. With each acquisition we make, we know we can accelerate sales and expand margins. We identify those opportunities during our exhaustive due diligence phase and track them closely post-phase. In fact, I've got a weekly stand-up meeting with every new acquisition where we track the investment thesis and make sure that it's hitting plan. Every one of our acquisitions has proven this out, and all of them have exceeded our base case projections. Let me share with you just one example. When we acquired QuietKat, we knew where we could add value. The company had a leading position in overlanding electric bikes with incredible technology and cutting-edge marketing. However, the company lacked the resources and know-how, if you will, that frankly many smaller companies lack. Upon close, we immediately helped the founders, Jake and Justin Roach, to grow their inventory position and invest in inventory, add key resources, and invest in high-return CapEx and R&D projects. We also leveraged our supply chain center of excellence and our in-country team in China to increase their manufacturing base and double their manufacturing capacity. Within the first two years of our ownership, we will take the company from roughly $15 million in sales to $50 million in sales this year. We think we can double the size again in the next fiscal year. E-bikes is an exploding category, and that's a big part of it, but we feel that we have built the foundation to continue to be leaders in this space. Our centers of excellence, as you've heard me talk about before, are a big part of what makes us different in the outdoor products market. Although the TAM is huge at $100 billion, it is made up of many small to medium-sized businesses. The trick, we think, is to allow our brands to maintain their founders-led mentality and remain semi-autonomous. We give them, again, the full responsibility for their businesses but then hold them accountable for the results. We also take it a step further with our centers of excellence. We support them with a very lean corporate staff that enables us to leverage our combined scale. Importantly, we also support them with what we call our centers of excellence. Centers of excellence, you should think of as those areas where we can bring outsized value to our brands that they couldn't afford and do on their own. It's not an easy concept to copy because you can't tell a founder what to do. You need to partner with them, and you need to have a center of excellence resource team that can convince them of the value whereby they welcome the support. I spent 10 years in private equity really kind of perfecting this model, and it's one of the reasons we believe that we can consistently extract more value out of every company we acquire. When we acquire a company, we know where and how we're going to add value before we close. In summary, when we spin, we will create one of the most exciting outdoor products companies. A company that is scaled today but will be even bigger and more profitable upon spin. A company with a proven track record for execution and results, with an incredibly large TAM to continue to expand into. With that, I'd like to introduce. Is it Vishak or Jason? Jason. So Jason is the leader of our sporting products business. Jason's been with us since the day I walked in the door, and Jason is one of our most talented leaders. You're gonna get to see him today, and the business is in great hands with his leadership. Jason. We're gonna sell T-shirts at remington.com and federalpremium.com, and all of the profits go to a humanitarian crisis that we see unfolding under our eyes every day. All right. Thanks, Chris. Good morning, everyone. Thanks for coming this morning, and we're excited to talk about our Sporting Products business unit for y'all. You can't go without technical glitch. Mitch? Hey, welcome to being a leader. Exactly. We will try to get this figured out. Sorry about that. While they're figuring this out, just so you guys know, when we do go outside afterwards and see all the products, we're gonna have Killer Street Tacos out there. Make it out. All right. I'm Jason Vanderbrink. I've been with the company for 18 years. The first 14 years of it, I led the commercial side of the business for all of our brands. In the last four years, I've had the honor of leading our ammunition business, where we can focus on the end consumer and focus on becoming and maintaining the low-cost operator that we are today. Our four key takeaways today, we're a major United States ammunition manufacturer and a major primer manufacturer in the world. We are the innovative leader with the most iconic brands in this industry. Our industry has seen and embraced millions of new diverse Americans participating in the shooting sports, which bodes well for long-term value creation. The market dynamics has shifted dramatically, and we'll touch on that in a few minutes. Our overview, like I said, we're the leading global designer and manufacturer of ammunition. Our brands include Federal, CCI, HEVI-Shot, Speer, Estate, and Remington. Our management team is second to none. Our management team is very tenured. We've been together for many, many years, and we know how to operate in the ups and downs of the economic cycle in the ammunition business. We have strong recurring revenue and very strong free cash flow, no matter where we are in the economic cycle. We will continue to lead the industry in sustainability initiatives, along with demonstrating our need for conservation and access to public lands. Our brands, second to none, as I said, but what differentiates us from everyone in the industry is consumers come to us for innovation. We just introduced, along with Smith & Wesson, 30 Super Carry, which is a game changer in personal protection pistols. Since the divestiture of Savage, this has allowed us to work with all gun companies. All major gun companies today are coming to Vista to work with us on innovation since we're agnostic and we don't own a firearms company anymore. Federal's Terminal Ascent, simply the best bullet that has ever been produced for long-range hunting. Remington Core-Lokt. When we acquired Remington, we had to invigorate it with innovation. We introduced Core-Lokt Tipped to the iconic Core-Lokt brand. Today, we're at $1.7 billion in sales in fiscal year 2022. Federal turned 100 years old last week. Remington is 206 years old. Between two brands, we have 300-year-old brands that are the best brands in the industry. Indicators, supply chain, we are fine. On demand, we're at approximately $3 billion in orders. We are the world's leading primer manufacturer. We are the supplier of many primers to the industry. We do that because we have long-term contracts in place with our OEM partners, and also it helps with absorption in the markets going forward. Since 2017 to 2019, we had made the strategic shift to get out of less volatile categories such as 5.56 and.223. Our channel today of our customers is extremely low, and industry consolidation has happened. When we touch base about the Remington acquisition, it's one for the ages. Remington is the premier brand in hunting and recreational shooting in the United States. We have created 900 jobs in the community andf Lonoke, Arkansas. We have added capacity to Vista Outdoor without adding capacity to the market, and the best is yet to come in Lonoke, Arkansas. We will ensure that Remington is as financially stable and profitable as our legacy brands. We're undertaking a 3- to 5-year modernization of Lonoke facility, and we have started last year with modernizing the primer factory, so we can ensure that Remington primers are of the same quality as Federal and CCI in the market today. We have paid for the acquisition in 18 months. We will surpass $400 million in sales, and we will invigorate Remington with much needed innovation. Our sporting products, as we said earlier, very, very high cash generative business, no matter what part of the economic cycle you look at. We will have low cost routing between all four of our facilities. We are increasing technology to maintain quality and upgrade all four of our facilities and technology. We will expand the use of our recycled materials in more than just Anoka, Minnesota. The key focus for our management is to continue to be obsessed with low-cost manufacturing. Our long-term contracts that we have today, the FBI, we're the only company in the world to have four contracts in the newly released contracts for pistol. We have all of the FBI's business for.223 on the duty round because our technology and ammunition is second to none, and the FBI awarded us with such. U.S. Customs and Border Protection, we have all of their business for pistols. NYPD, we have all of the business with Speer. Law enforcement, without question, we are the number one provider in law enforcement, and the Speer Gold Dot today is still the duty round of choice. OEMs, as I mentioned before, we have entered into long-term contracts with many OEM partners on our primers because our primers are simply the best and most reliable in the field. A look at our backlog. It's a very healthy backlog. As we said, at the end of our fiscal year, it was $3 billion. 89% of our orders are less than 18 months old. Since the pandemic, our backorder position has not only increased, but it has also been stabilized. 87% of our backorders took the price increase, as we have announced 6 price increases in the last two years. It is very important to understand that 87% of our orders got the price increase. Only 13% didn't because that's the long-term contracts that we had talked about. The state of the industry, we couldn't be more excited for the future. Frankly, what we have seen is what we knew this industry could be, and what we love about this industry is the diversity now that has came since the COVID. One-third of all new gun purchases are from females. We have seen a 50% increase in new gun purchases from people of color. The average age of a new gun owner in America is 36 years old, down from 49 years old. We have gained a generation in gun owners in America, which bodes well for future consumption. The interest in our shooting sports is second to none. Hunting, multiyear highs in hunting license sales. Recreational shooting, it is the thing to do today in America. Personal defense, we own that category. Very high margin. It's where the category, it's where the market's going, and we're the leader in that market. High school trap, the fastest growing high school sport in America, and that bodes very well for Federal, because Federal, for 50 years, has given back to youth shooting, and we will continue to give back to youth shooting. Youth education, we will lead, and we will continue to lead, educating our youth on gun safety and hunting. Field to table movement, it is a big, big deal right now. Last year, the hunting, Hunters for the Hungry donated 2.1 million pounds of meat to needy families. Public policy has to be a focus for us continuing going forward. We need to fight for access of public lands and more ranges, so we welcome the legislation on bipartisan support out of Washington a couple years ago to modernize the Pittman-Robertson Act, which will build more shooting ranges using the Federal Excise Tax that we pay. Training and education and safety, 43% of entrants signed up for professional training. That is a great statistic. What's different now versus fiscal year 2017 to 2019? Consumer demographics has absolutely shifted. Prior to 2017 to 2019, prior to that, it was a stagnant, declining market. Today, it is a very, very highly diverse growing segment. Usage stockpiling was the normal in 2017 to 2019. Today, it's all consumption. People are using what they're buying. Product mix, we were all heavily driven on Lake City, which is an extremely volatile market of the 5.56 223 market. Today, much more shifted to hunting and pistol markets, which is where our brands today are much stronger. Market conditions, it was compressed in 2017-2019. Today, with the Remington and acquisition Hevi-Shot, it is an expanding market. Fiscal year 2016 and 2022 just displays what I just talked about. Fiscal year 2016, you can see a quarter of our business was Lake City, which we sold at near cost to get rid of the inventory because we were tied with a contract. We have replaced the Lake City business with Remington and HEVI-Shot. We have replaced it 4x and 30% more in margin. We are not reliant on a volatile, unprofitable category going forward. We have the category where the consumers are and where profitability is long term. Cost structure. For four years, we have worked on leaning out the organization. It is imperative that we maintain our low-cost manufacturing facilities today. With the Hevi-Shot acquisition, as Chris had mentioned, we are now the leader in non-toxic ammunition. Hevi-Shot is a metallurgy company that makes ammunition. In the future years, look for Hevi-Shot to expand in categories that it's not in today as well. Underperforming brands, we acquired Remington, and that is certainly a humongous deal for us going forward. Some more facts on the first-time purchasers. Only a quarter of them bought a gun because of the concerns of civil unrest. seven5% of the new users bought it, whether it be for hunting, recreational shooting, first-time home buyers, family heritage. It is a very sustainable base going forward. The key is the new users are shooting 2-3 times more than a legacy shooter, and they are shooting the ammunition they're buying. They are not hoarding the ammunition. A demographic, seven4% of new gun owners are 44 years of age or younger. 25%, all of them, are people of color. One-third of new gun owners are females. Some of the stereotypes of hunting and recreational shooting is a rural sport, seven5% of the new gun owners are suburban or urban customers. The dynamics have absolutely shifted. 85% of the new gun owners say they are only buying ammunition to consume. 15% are buying more than they plan to consume. Legislation and fear buying is not what is driving this market today. Only 14% are buying a firearm because they may be threatened of Second Amendment legislation coming down the pipe. Our own all of our new users are much more enthusiastic and committed to this category than what we saw in fiscal 2017 to 2019. As Chris touched on, the profitability of our business unit has never been stronger and will continue to be strong. From fiscal 2020, our EBITDA rate of 10% is now at 36%. We've taken 6 price increases to help offset the commodity markets in the last two years. Remington and HEVI-Shot, Remington will exceed $400 million in revenue. Our run rate's gonna be somewhere between Remington and HE-Shot of $100 million, and the best is yet to come on profitability on Remington. I promise you, we are going to make Remington as profitable as our legacy business. With that, Vishak Sankaran can talk about our golf business. Foresight Sports was founded with the goal of creating world-class products, not only for the best players in the world, but also to be used by the golf masses. Perhaps the most powerful indication of the growth of our company has just been over the last couple of years on the PGA Tour to see the pros lined up throughout the range, using their Quads, taking it out on the golf course during the practice rounds. We would not be talking about Bryson DeChambeau if he had just increased his power and his distance. He's maintained the accuracy, and a lot of that has to do with this GCQuad that you see so many players walking around with. The response we've gotten from the best players in the world has just been incredible, and what's so gratifying is to be able to take that same technology and make it available to the golf masses. Everything that we've done as a company has been able to allow people to go at their own pace to build a golf simulator or just stick with a launch monitor to improve their game. As a brand, we will be something that every golfer wants to be in communication with, whether it's from tips that players that use our products are providing or whether it's just data about the game itself. We're gonna be able to provide meaningful insights to golfers of all skill levels. Whether it's playing a virtual round of golf against someone in another part of the world, whether it's going into a partner location and then getting a fitting, or whether they wanna characterize their game or driver and get a comparison using AI, we're building a complete ecosystem that would allow golfers, no matter where they're at in their journey in golf, they can touch us and get some meaningful content out of that ecosystem. Thank you, Jason. Good morning, everyone. I'm Vishak Sankaran, President, Outdoor Accessories & Golf. I have been here at Vista Outdoor for now over four years. Prior to coming here, I ran the Craftsman business for Sears, and before that, I ran a healthcare technology business at Stanley Black & Decker. Most of my career has been spent in the consumer side of the business in either brand marketing or operations side at companies like Stanley Black & Decker and GE. Now, when you look at our business, our strategy that I walked you through at our last year's Investor Day is really performing exceptionally well. Over the past two years, we have more than doubled our business while delivering well above fleet average margins. This year, our golf business will be in excess of $250 million-dollar platform, one that has significant scale and is meaningfully contributing to the results of the Outdoor Products segment in Vista Outdoor. Now looking forward, we are equally excited and confident that we can continue to maintain this pace of growth. Golf, like many sports, is being transformed by technology. Having two of the most strongest technology leadership brands in the industry, we are confident that we can drive that transformation. The acquisition of Foresight Sports gave us entry into the fast-growing off-course segment and expanded our consumer base by over 50%. Putting together one of the leading consumer brands in golf in Bushnell Golf with one of the leading technology brands in Foresight Sports allows us to rapidly drive penetration in the young but fast-growing launch monitor and simulator category, substantially expanding our addressable market. The technology platform that we have in our Foresight business really positions us well to create a number of new innovative products and services for our golfing enthusiasts. Now before I get into talking about the strategies, let me give you a few insights into the golf industry. Like Chris mentioned, participation in golf has been growing strongly the last few years. Now we have over 37 million Americans who are enjoying golf in one form or the other. In fact, we have seen that rounds played over last year has grown to over 529 million. Both and all of these metrics are historic highs that we have not seen over the last decade. Now from a global perspective, we have an equivalent number of participants in the rest of the world as we have in America. Couple of other interesting trends about our industry in the US is that we continue to see a healthy number of young golfers come into our sport, and women demographics has continued to grow over the last couple of years, all positive indicators for our industry. The key fact I want you to walk away from this slide with is that the growth over the last 8 years in golf has largely come from the off-course segment of golf. Now for those of you who are not familiar with off-course golf, it started in early 2000 with Topgolf. Over the last 5 years has really expanded to include a number of diverse venues that offer technology-driven golf, whether that be maybe in a traditional range type setting or in a indoor arcade type setting, or frankly, even in the comfort of your own home, both for practice and entertainment. These new venues offer a highly engaging, a much more accessible and frankly, a golfing experience in a non-intimidating setting that really have become fantastic off-ramps to bring non-golfers into our industry at a rapid pace. Now this off-course golf consumer base has grown to be over 12 million strong, one that is much younger, an average age of 30, substantially more diverse, and frankly, way more technology savvy than we had before. This is a segment that we, as Vista Outdoor and Bushnell Golf, did not participate in until the acquisition of Foresight Sports, and that has expanded our served consumer base from 25 million to now over 37 million. Now, golfers have always been passionate about game improvement. As golfers, we're always seeking new technology that can help us drive the ball further or be more consistent in our stroke play. One of the key technologies that have come on the scene and really enabled this for golfers in recent years is launch monitor technology. Launch monitor is a device that uses a variety of different technologies to define how a golfer swings their club, how that club face can contact the ball, the trajectory of the ball as it exits the face, and uses all the characterization of the data together with some physics and algorithms to really predict how that ball flight will take place and where the ball will land. It is that ability to connect how a golfer's body dynamics and swing can really impact distance travel and consistency that has made these devices rapidly being embraced by professional golfers. What we know in the golf industry is once professionals and pros embrace technology, it rapidly filters down to everyday golfers. Equally important is that this level of prediction has reached a level of accuracy now that you can take these launch monitors, combine them with a variety of new projection technologies, and really create simulators that can create a very realistic experience and really engaging experience of playing golf. Even if you're not on a course and really indoors, and that is what is allowing launch monitors to transform not just the on-course side of golf, but also the off-course segment in golf. That is exactly why we acquired Foresight Sports, a market leader in the launch monitor and simulator technology. They definitely expanded our presence in the off-course segment of golf, one of the fastest-growing segment. This Foresight Sports technology that we have, its unique camera-based technology is the industry best in characterizing how the swing of a golfer and the hitting dynamics. That coupled with the proprietary algorithm that we have in Foresight allows us to most accurately predict the flight of the ball and the distance traveled than anyone else in the industry, period. It's this accuracy that has allowed and made our GC Quad, which is our number one product in the market, rapidly be embraced by professional golfers. In fact, there's a little infographic on your tables I'd love for you to look at, and it's really from the most recent event that we had over the weekend at Southern Hills, the PGA event, where almost every top golfer there was using our GC Quad to practice before the game. Justin Thomas, the eventual winner, was one of the early adopters of our GC Quad product. It is the same accuracy that we have, that we deliver, that has also made us the device of choice for teaching pros and coaches, and frankly, for most of the OEM manufacturers in the industry as they design and develop the next generation of their golf equipment. Now this technology that we have in Foresight is not only market-leading, it's also differentiated and highly defensible position that gives us a leading advantage in the category. But probably more exciting for us is really the financial model that comes with it. It's a model that includes not just the sale of an installed device, but an ongoing recurring revenue from add-on software sales and data monetization of the data collected that really substantially increases the lifetime value that we get from a consumer in addition to just the installed sale. There are only three components to this business model. Obviously, the sale of the launch monitor device itself or the device together with all the components that you need to create a simulator that we call SIM IN A BOX. The consumer can then buy a number of added software like courses, what they like to play on or practice on or just enjoy, and we have over 200 of these legendary courses now in our database. Equally exciting as you want to enrich your online experience, you can buy a number of gaming modules, including one that we have designed for kids called Fairgrounds. Of course, we have all the data that we collect from these shots. We have the industry's. One of the industry's largest collection of shot data with over 250 million shots categorized in our database. What that lets us do is apply analytics and AI to really extract meaningful insights that we can now offer to either individual golfers to improve their game or to enterprise partners, all monetizable as we move forward. Most of our revenue today comes from the hardware side because we are in the mode of rapidly expanding our installed base. The launch monitor and simulator category is still young and nascent. High growth, rapidly growing, but young and nascent, with less than 3% participation. The two key barriers to participation really have been awareness and the high price point of entry that's well over $10,000. That is what we believe as Vista Outdoor, we can come in with our competencies and capabilities to change. Bushnell Golf, the consumer brand that we have, has loyalty and trust of consumers across the globe, and we understand how to market and drive rapid adoption of technology among golfing enthusiasts. Frankly, we did that successfully with laser rangefinder technology, and we are confident that we can do it again with launch monitors. Second, our center of excellence in supply chain, coupled with all the capabilities and competencies we have around operational excellence, lets us drive supply chain efficiencies in the procurement of electronic components and other components, drive manufacturing efficiencies and capacity expansion rapidly in our operations to take this technology down the cost curve at a very rapid pace. That is exactly why in the third quarter of last year, when we launched our first device under the Bushnell brand called the Launch Pro, we launched that at an incredibly entry price of just $3,000. That, coupled with the Foresight GC3 product that we launched at $7,000+, has become instant success and gained rapid, completely changed and transformed the industry. That launch has been one of the most successful in our golf business, exceeding expectations every single month. Frankly, they have been so broadly embraced and so quickly embraced by the avid golfers that it has expanded our served market from just 1 million consumers to over 9 million consumers. It is this rapid penetration that we can drive in the launch monitor category, coupled with continued innovation that we're confident of bringing in our core Bushnell Golf technologies, so electronic distance measurement and audio, golf audio, that gives us confidence that we can drive 20%-30% annual growth in this business. Really grow this business to be about 2-3 times its current size or $500 million, as Chris mentioned, delivering extremely high EBITDA margins. Now, looking forward, what else is there beyond that? With Foresight Sports, we acquired really the key elements of a technology platform, which put together we can really build into a true technology ecosystem in combination with our industry partners. What that lets us do is take all that data we collect, all the analytics and insights we create, and really put together technology solutions and tools for golfers to improve their game or performance enablement, as we would call it. That's whether it be in hitting or putting, coaching, training, or fitting for golfs. We can also take all this data analytics and directly pump it and connect it into our Bushnell Golf devices, like a laser range finder and GPS, that consumer can use on course to get insights and coaching tips on how to play that specific round of golf or that course in the best possible way. Of course, we have an online gaming platform for golf today that can be built out into a full-fledged gaming and esports platform that expands and brings in a number of new consumers to expand a total addressable market, not just for us, but frankly, the entire golf industry. We believe that that'll let us build this business up to well over $1 billion. With that, I'd like to thank you for your attention, and next up, I'll bring up Sudhanshu Priyadarshi to bring us home. Thank you, Vishak, and good morning, everyone. My name is Sudhanshu Priyadarshi. I am the CFO of Vista Outdoor. I've joined Vista over two years ago, and before that, I spent majority of my career at PepsiCo and Walmart. This morning, Chris, Jason, and Vishak have shared details of our business, and I'm here to tell you the financials and also update you on future goals. Before I start, let's take a look at our key takeaways. Our strategy that we laid out prior to pandemic has allowed us to transform Vista and create a company that will thrive in the future. We have strong underlying fundamentals that's driving growth. We have hit a new record of sales growth and profit in fiscal 2022, and we have a strong balance sheet, cash flow generation capacity, and we have a sustainable model for compounding value creation. Let's look at how our prior multi-year strategic transformation has enabled us to deliver financial performance like this. From fiscal 2020 through our guidance of fiscal 2023, we have grown compounded annual growth rate in 21% in sales, 81% in adjusted EBITDA, 210% in EPS, while generating more than $300 million dollar of free cash flow. That's a seven7% CAGR. Our fiscal 2022 financial performance exceeded our three-year financial target that we laid out one year ago. Our sustainable model for compounding value creation has five pillars, as Chris talked about. Talent and culture, organic growth that's driven by innovation, our centers of excellence, acquisitions, and underpinning all that is our capital allocation strategy. These strategic pillars is the foundation the way we operate, grow, and create long-term shareholder value. As you can see here, after record last year performance in both Outdoor Products segment and Sporting Products segment, we expect to grow again in fiscal year 2023, as we laid out in our guidance. Our Outdoor Products business will get to $1.4 billion prior to any new acquisitions we will do and deliver and expect to deliver 16% of EBITDA. Our Sporting Products business that has grown from $900 million to $1.7 billion in fiscal year 2022 will grow again and expect to deliver $1.8 billion in sales at around 30% EBITDA margin. As I've said before, today, we have a strong balance sheet, and we have reduced our leverage from over 4x to less than 1x. We have ample liquidity when we ended fiscal year 2022. As Chris mentioned, in Outdoor Products, we are driving shareholder value through different levers. Levers like innovation, levers like strategic acquisitions and share repurchases. All of these pillars are key for disciplined capital allocation strategy that creates compounded value creation. Internal investments drives organic growth. Strategic acquisition has allowed us to transform Vista into two segments that soon will be a standalone public company, an industry-leading standalone public company. Share repurchases, we have bought approximately 5% of our outstanding shares by deploying this capital, and we've maintained 1-2 times leverage during this cycle. As we said, our strong financial performance has allowed us. In last three years, we have invested over $900 million dollar across these three pillars. This is balanced. This is giving us setting up for the future success. Our investments in CapEx and R&D will drive innovation and organic growth. As I said, M&A has transformed us. We have two industry-leading segments that will become a public company, and share repurchases. Chris talked about our fiscal 2025 targets, but let me lay out again. Our Outdoor Products business that's roughly $1.3 billion in sales in fiscal 2022 will be. We'll expect to be $2.5-$3 billion in fiscal year 2025. It will be driven by 10%+ organic growth and our strategic acquisitions we will continue to do, and we have proven that we can grow both sales and profit better than when we acquired the company through our scale and through our center of excellence. DTC and international will be a key pillar to those organic growth, and we expect our EBITDA to free cash flow conversion of 50%-60% in Outdoor Products business. As Jason laid out about his Sporting Products, how we have ample demand, we have a new diversified broad-based diversified demand base, and we are the low-cost operator in the industry. We expect our Sporting Products business to grow from $1.7 billion to $1.8-$2 billion. These businesses, we expect to grow low single digit, and Remington will achieve the full profitability and full capacity in next 2-3 years as same as our legacy ammunition business. In summary, we have great brands, we have expandable total addressable market, we have a strong balance sheet, and proven leadership who has driven the transformation for last four years, and those leadership will continue to drive transformation for both Sporting Products and Outdoor Products companies. I will not talk about this slide, but Chris shared with us that we believe the separation will unlock significant value. We believe both Outdoor Products companies and Sporting Products company will be compared against their own peer set, and that will drive higher multiple for both of these companies, unlocking significant shareholder value. Before we open up to the Q&A, I want to reiterate what Chris has said earlier. Over the last four years, we have successfully transitioned Vista Outdoor to a leading outdoor recreation company. We have a diversified portfolio that is delivering results and is above our three-year target that we laid out last year. On behalf of our entire management team, we are very excited about the future of both Outdoor Products and the Sporting Products company as we enter this new era. Thank you. Let's open it up to Q&A. Thank you, Sudhanshu. Now we're gonna open it up to the Q&A session. We'll let Chris and team come up here and get situated. We're gonna do our best to get to all of your questions today. I know we ran a little bit over. We are gonna be taking some questions online, as well. All right, Catherine, she'll be walking around with a microphone too. If you have a question, please raise your hand and Catherine will come to you. Catherine? Here you go. Hold it like an ice cream cone. Okay. Thanks. Good morning. Maybe a question for Jason. Jason, the company divested Savage Arms about three years ago. As a standalone, you know, company, would Sporting Products be interested in reentering the firearms segment through either acquisition or internal development? Thanks. Yeah. Let me take that question 'cause that's something that, you know, we're not prepared to answer right now, right? It's a hypothetical in the future that as we sit down and look at the potential for, Sporting Products, again, our first order of business is to service the debt, to pay dividends to shareholders, to look at, you know, managing float. Things of that nature will keep the business busy for a while. All right. Thank you. We have a question up front. Question. Yeah. Thank you. Hey, guys. Matt Koranda, ROTH Capital Partners. So maybe just on the Outdoor Products side, was curious if we could touch on, I guess, in recent weeks, it's become pretty clear that, you know, certain retailers are citing being relatively over-inventoried. I'm just curious what you guys are seeing within the certain brands and Outdoor Products on that front in terms of POS data. What are you seeing in terms of sell-through, willingness to sort of load in as well? Curious if you could touch on some of that. Yeah. Matt, let me just take it from a high level. I mean, there's no question that, you know, what we're seeing in major retailers is a slowing of POS. I would say within our businesses, because we're so diverse, we've got areas that I communicated previously, like outdoor cooking, where we've seen some slowness in POS. We've got channels of distribution, which we call mass market, the Targets, the Walmarts of the world that has slowed our bike accessory sales. But that's part of the beauty of our model, is we've got other categories that are frankly roaring and show no slowing down. The neat thing about it too is we purposely lean into inventory. When I first walked in, we did a thorough SKU rationalization. I mean, believe it or not, we've got tens of thousands of SKUs across our brands. We went in systematically. We reduced SKUs that were C, D, excess and obsolete SKUs. We've rebuilt not only into new products, but also into A SKUs. We've invested in those SKUs, and we did it strategically to support the demand, which we feel really good about now because not only will it support the demand that we continue to see in the forecast that we have with our retail and dealer partners, but it's also fortuitous with inflation that we're sitting on a good, cost basis with our inventory. We don't have to pay increase in logistics costs given some of the inventory we've got in stock. We feel good about it. The underlying demands that we're seeing certainly support the guidance that we've given this year. Great. Very helpful. Maybe just one on the spin, and this one's probably more directed at Jason. You guys mentioned a target leverage ratio, and I think the three turns sort of level for Sporting Products. Just curious, I mean, that would imply, at least at the current level of EBITDA and Sporting Products, you're gonna be north of $1.5 billion worth of debt. I don't know what, you know, sort of you're basing the leverage ratio on in terms of what year you're benchmarking off of, but just curious if you could sort of speak to your level of comfort with that level of debt, you know, sort of where we are in the ammunition cycle as well. Yeah. Matt, why don't I let Sudhanshu take that and I'll add on to it because we've spent an awful lot of time studying this and looking at different sensitivity analysis scenarios. Thanks, Chris, and thanks, Matt. This is our initial capital allocation strategy where we laid out that ammunition company will have more debt because they will pay down debt, they will return money to shareholders, but Outdoor Products company will be a growth business. Obviously, it depends on what the long-term EBITDA of ammunition business looks like when we spin, but based on the guidance or target we laid out, it comes out to be around $500 million of EBITDA. Yes, we do believe that in next six to nine months, we will continue to do M&A in Outdoor Products, and we expect in that range of debt will stay at Sporting Products, but they will generate 50%-60% of free cash flow from EBITDA, and the number one priority will be to pay down debt and then do dividend and opportunistic share repurchase. We believe both companies can sustain and spin as a growth company in terms of Outdoor Products and return money to shareholders as well as the dividend in Sporting Products. Let me add on to Matt's question because it's something that we've given an awful lot of thought to, and we can give you a point in time answer, and we can give you a directional answer. What we've done with our board and with the help of the ammunition team is we've gone back and looked at history. We said, "Where did the business perform in troughs? Where did it perform in spikes?" We looked at what we call kind of a normalized inventory. Now, we also layered in the structural changes that we made in the industry. We also layered in the fact that we wanna pay a healthy dividend. What we arrived to was a number that three times or less is in the ballpark of what you're talking about here. As we sensitized it, we looked at the potential for price reductions, right? We've had seven price increases, and we've anticipated some more discounting, some more marketing. All that stuff has been factored into the analysis that we did that leads us to believe that the capital allocation philosophy and strategy is prudent. Catherine. Oh, Jeff? Catherine. Yeah. Jeffrey. Thanks. Oh, all right. Yeah. Thanks. Jeff Gates from Gates Capital. First of all, Chris, congratulations on how you've run the company the last few years since you've come in. I think you've done a really good job with both operational execution and capital allocation. My question, you keep alluding to increased scale in Outdoor Products before you spin it, so can you just give us a little more direction on the kind of scale you're talking about? Is it one big deal? Is it a series of additional bolt-ons or sort of what are you thinking in that respect? The second question is, regarding capital allocation on the ammunition business going forward, would you expect share repurchases plus dividends to be almost 100% of the excess cash flow generation at that entity, or how are you thinking of that? Okay. Yeah, Jeff, the first question again was? I was thinking about the capital allocation. The scale. The scale. Yeah. The way we're viewing the acquisitions, Jeff, is really no differently than the way we viewed it to date. We're not looking to swing for the fences with a big transformational acquisition. The only thing I will say definitively is that we are not as excited to buy smaller businesses unless it's just a super strategic fit that can bolt in and tuck in really nicely, only because it takes an awful lot of our time to do that. We've got a pipeline that is very robust, that is very strong, that we think it could use up our excess cash prior to spin, but we don't wanna have the proverbial gun to our head where we're forced to go buy something that we don't think is in the best interest of the business. We're gonna look at it just as we've looked at every acquisition. If they come about, we'll do them. If they don't, we'll be in a beautiful balance sheet position. Secondly, in terms of the capital allocation, I mean, you know, when we spin and Sporting Products as a standalone company, we fully expect that the majority of cash will be used to service the debt and to pay a very healthy dividend. However, we've modeled it and sensitized it, so there will be excess cash, right? That we leave the business in a position to be able to either increase that dividend, to be able to withstand other things or make investments or buy back shares. We feel like we're in a very good position the way we've modeled it to focus on the top two allocation strategies, but give us a little bit of flexibility. Great. Hi, Jim Chartier here, Monness, Crespi, Hardt. It sounds like QuietKat and Foresight Sports are key drivers of the organic growth for the next three years. Can you just kinda lay out where that comes from? Is it, you know, additional channel expansion, just a, you know, adoption by consumers, international? There are also some of the higher ticket items, so, you know, how do you see that performing if we go into some kind of recession? Thanks. Vishak, do you wanna handle the first question on Foresight? Yeah, absolutely. Thank you, Chris. Now, like we talked about, right, Foresight is in some incredibly high growth markets where penetration is accelerating, and we are in a position to drive that with our both differentiated innovation leadership position with our launch monitors, and one that frankly is highly defensible in our mind. We're very confident we can drive that growth. Even beyond that are just a number of other technology solutions that the management teams are already working on that we alluded to in our tech ecosystem that we truly believe can continue to grow and expand rapidly the growth. We're confident of seeing that growth. As the install base grows, given the lifetime revenue opportunity from software add-ons, that just is a significant plus-up as you move forward. Then there's international expansion. We really haven't really entered the international arena, and both our brands, both Foresight and Bushnell Golf, are incredibly strong with international markets. There's tremendous upside we see in the Foresight business as we look forward. Great. Brandon, you wanna touch on QuietKat briefly? Sure. Yeah, QuietKat, super exciting for me, and one that is a fun business to be part of. I think the big thing with QuietKat is it's very early on in its life cycle, right? You look at the e-bike category, it's brand new to America. It's growing very, very quick. It has a lot of runway ahead of it. You know, in recent weeks, there's plenty of turmoil in the market, and our number one highest price points are our number one sellers, and we have tons of DTC business. You know, people are coming in, they're paying the premium, and there's a long ways to go with that brand. Super exciting in the years to come. Just let me finish and add to the point on one of the questions you asked about what about if there's recessionary times. The golf business, our average consumer, and you saw the numbers, the household income and net worth is extremely high. These are consumers where disposable income might shrink, but still substantially are extremely high. Really don't have never seen that impact of buying behavior in the past, and I'm very confident that really won't be very influential in that. The only thing I'll add to it is that, you know, we've got some founders that we partnered with, so if John and Scott were up here on Foresight, they honestly believe that we could be the number one golf company in the industry. Take golf club companies, take all of this. They believe that the ecosystem they're building will make them the community hub for all things golf. If I had Jake and Justin, who are in the audience up here talking about QuietKat, you know, these guys have such a big dream for where they're gonna take bikes that a little bit different than Foresight, where it's not quite as price inelastic, but these bikes, there's such a growth in the e-bike category that these gentlemen have done a wonderful job of staying disciplined on price and not chasing price down. They're expanding channels of distribution, so we're leveraging our law enforcement team, we're leveraging our dealer base and repping groups, so we're opening up channels of distribution that these guys haven't seen before. If I had Jeff Sposito up here from Stone Glacier, I think they're gonna be the next one that is the QuietKat and exploding, right? I mean, there is a cult-like following, and if you talk to some of the people that are buying the KUIU and the Sitka of the world, we think they could be the next brand. Hi. On the outdoor accessories business, how has that historically performed in a market downturn? Vishak, I'll touch on that if you want. You want to? Okay. Both of us. Yeah. You know, we're so close to this. You know, it's interesting, we studied recessionary periods of time, and it's been a while since we've had a recession. What we found in talking to our legacy employees and studying our past history is the majority of our business is tied to consumables, right? It's more of an add-on and attachment. You know, Foresight and QuietKat are two companies that are differentiated because they're more of a main purchase. Most of our other businesses are really kind of add-ons to an activity. It doesn't cost a lot of money to get into them. Most people, when they look to change their discretionary spending because of inflation in gas and food and what have you, tend to migrate to lower cost activities and skip the big, expensive vacations. That all bodes well for us and makes us a little bit more recession-proof, if you will. Great. Catherine, while you're walking around, I've got a question online. Greg, this one's for you. Where do you see the largest white space opportunities for CamelBak growth? Is it international or adjacent categories? Yeah. Thank you. This one? Okay. Good question. Hopefully, everyone got a chance to hear it. When you think about growth for the brand, it really comes from those commercial levers you'd expect us to pull, right? There's a product component to that, both enhancing our core, mainly hydration packs and reservoir accessories. But it's really taking, you know, the brand and the products associated with it into these new adjacencies that are larger and growing, quite honestly. That's what's brought us into categories like drinkware, further expansion into vacuum stainless steel. You see some new products over there today, our entrance into water filtration, as well as a very CamelBak point of view on soft coolers, which we think gives us a tremendous amount of opportunity for growth. From a channel standpoint, not different than what the team talked about earlier today, international is certainly a focus for us. We're a global brand with over 30% of our sales internationally, and that's continuing to overindex. D2C, you think about our brand, our price points, our use cases, it lines up perfectly for, you know, being able to continue to grow out our D2C presence. Thanks. Thanks, Greg. Thank you. Hi, guys. Brian Harbour from Morgan Stanley. So you mentioned e-commerce, but I think we didn't get into it too much. Like I said, I was just curious if, you know, are some of the new brands really additive to your efforts on e-commerce, and do you think there's things you can kind of learn from them and share through some of the other brands? You know, what else will be kind of the focus to continue to grow that over time? I guess the related question is just how does that kind of factor into some of the margin guidance that you've provided? Yeah. Good question, and I'll let a couple of the brand leaders touch on it because they're growing their D2C business really, really nicely. A common thread among all the acquisitions that we've made, including Camp Chef five and a half years ago, is they overindex to D2C, right? Without question, our legacy brands that are much, much bigger learn from that. We share a lot of best practices. The one thing we do, too, is we invest in a common platform so that you think about each of these brands that may have 1 million followers, social followers. Across all of our brands, we've got multi-million. We've got over 10 million social followers, and the majority of our brands are using a common platform, where increasingly, as we move forward, we can share those trends, that data, to inform, you know, our decisions on marketing spend and what have you. It's certainly built into our guidance here. When you think of D2C, and we've given some numbers on total e-commerce, about 20% of our overall sales, I tend to think of top quartile companies being more nearly 30% or better. I would look at that 10% as part of the investment thesis, right? That's how we look at it. We say, "Okay, so what? Now what?" We've gone from a cold start to $200 million in D2C. How do we double and triple that going forward? How do we continue to challenge ourselves? We're thinking in new ways. I mean, Brandon is lighting up TikTok. You wanna talk about TikTok for a second? Sure. This is a good example of teaching us what this new technology is like. Yeah. I you know, run Camp Chef on my day-to-day. You know, TikTok is one of those things our social media team came up and said, "Hey, let's try the early adopters." It has exploded for us in this past year. Haven't been into it a year yet and already have several million views. But also you know, is turning that you know, to conversion. More important than that is you know, the QuietKat group that we spoke to, and you asked about how the influence of new brands coming on. I'm working with them on a weekly basis, and we're sharing ideas of what they're seeing in D2C, what I'm seeing in D2C, as well as social. You know, we're definitely building upon each other, and we learn from them, they learn from us, and both teams end up in a lot better place in the long run. It's been a really good experience. I will say, Bob Steelhammer, who leads our center of excellence in all things e-commerce and digital, he is the thread amongst all of our business units, right? He's the lightning rod for not just technology decisions, but a lightning rod for communications and bringing our marketing and increasingly our bigger digital teams across our brands together. Think about when I talked about semi-autonomous. Our brands decide where they spend their money on ambassadors and affiliates and followers and all the social stuff that they know better than any of us will ever know. In the center, we help lean in on bigger technology decisions, what I call plumbing and piping, right? Things that are very difficult for a business that's focused on the here and now. We look a little bit further out, and we start to develop a thesis on things that we ought to be looking at. When we have great ideas, like you heard, Vishak talking about this technology ecosystem in Foresight, which we're we don't wanna lift the curtains too much on this 'cause we think it's gonna be something that's really special to us. But we've already brought businesses in to San Diego to study what they're doing and say, "Hey, this digital ecosystem, why couldn't we be the community hub for hunting accessories, for outdoor cooking?" You know, a lot of this is software development, right? The guys at Foresight have dozens of resources, software developers, coders around the world that are developing out that ecosystem right now. I mean, I think it's something like over 30 developers that are working on our behalf, that are around the world coding, right? Because a lot of this is stuff that we wanna introduce online, and we're in hurry-up offense to get that technology built. We have one more question coming in online too. Kathleen, while you're walking around. Ric, this one's for you. Thinking about mass retail, it seems to be struggling as of late. How big of a channel is this for Bell and Giro, and what impacts are you seeing? That's a good question. The good news is we saw the headwinds coming in for mass this year, so we actually budgeted that business to be down. Two-thirds of our business is really in the specialty bike, power sports, and our snow business, and that we're very bullish on. If you look at what's gone on since the pandemic, thousands of new cyclists have entered the market, and many of those are now stepping up with their equipment, so our high-end helmets, footwear, soft goods, apparel. Bell and Giro are the number one, number two brands in many of those segments. We're well-positioned to take advantage of that growth. The second thing, and Brandon touched on, is really the explosion of e-bikes. It took off in Europe, where we have a big share in Europe as well, but it's exploding in the U.S. Again, great position to take advantage of that e-bike explosion. The last thing I would leave you with is really our snow business. Giro Snow had a record performance in the U.S. last year as the resorts started to open back up. Even on top of that, our pre-seasons are the highest we've ever seen from a preseason order standpoint. Europe is much like the U.S. was last year. They've been shut down for nearly two years. There's little inventory out in the pipeline. As those resorts open back up with Giro being a number one position, well-poised again, well-positioned to take advantage of that and grow our sales. Ultimately, we've built a plan where our specialty business will hopefully offset the challenges we have in mass. Kathleen. Yeah. Hey, Ryan Sundby, William Blair. Chris, I think you mentioned the seven acquisitions as being accretive to sales and profitability, compared to the legacy business. As you look at the outdoor pipeline moving forward, is that something we should still expect? Second, I think in one of the questions you mentioned maybe a preference for larger deals. Does that change the sequencing there as well? We certainly expect to continue to lean into companies that we feel like are accretive to our base business, right? If you look at a 15%-20% EBITDA margin guidance and Outdoor Products at 16%, we feel a lot more comfortable getting to the higher end of that range and you know, continuing to be top quartile, maybe even moving into top decile. But that's not an absolute, right? We may lean into a business that is fleet average and be super happy with the growth potential of that and just be looking at the dollars that it contributes. But the one thing that I can say with surety is every acquisition we buy, as I mentioned in my presentation, we study where we're gonna add value. We've got an investment thesis. Some people might call them synergies, but they're more than synergies, right? Some are more synergistic, where we know we can extract value. It's really leveraging the centers of excellence, where we dig in and we understand, not too different than some of these other companies that are very acquisitive in different industries. I, you know, my mentor at Black & Decker was George Sherman, who went to work for the Rales brothers at Danaher, and he's credited with building that DBS, the Danaher Business System. In a consumer products way, I studied that company, and because we're a fast-moving business, it doesn't necessarily apply to us, but a lot of the same theories have informed my thinking on operating models to extract results and also in the way we look at acquisitions, so that we can get the types of returns we think we should be able to get. Now, in terms of size, again, we spent just under half a billion dollars in Foresight. It's gonna be one of the best decisions we made. There's no absolutes, right? I mean, we have a balance sheet, and we have a risk for an appetite for risk that's only so big, right? There's only so many big assets out there. We're not targeting size as much as we're just targeting the potential and something that we feel like is a good cultural fit and something we can add value to and something we can generate really good returns on. Great. I think we have time for one more question. All right, we've got one more from online. Jason, this one's for you. You've talked a lot about the commercial part of the business. Any particular thoughts on growth for the non-commercial pieces of your business? Yeah, good question. Obviously, our business unit is not gonna go chase top line if there's not bottom line. Customers come to our business because they want performance ammunition that is the best money can buy, and we will expand that business as long as it's not just top-line driven. On the international law enforcement, Department of Defense business, 16% of our overall business, we will expand that. We have the capabilities to expand that, but we're gonna expand it in the right spot, where it's gotta add bottom line, not only top line. I'll add to that, and I give Jason a lot of credit. Jason and I have partnered since he stepped into his first GM role, gosh, four and a half years ago. You know, we like to marry what I call tribal knowledge in the industry, but we wanna bring in people that understand how to make money. There is a difference, right? I mean, so the industry is littered with enthusiasts. When you ask them what their goals are, they say, "My goal is to ski 200 days a year." "No, no. I mean, your financial goal. You know, your goals for the business. They're like, "What is my goal?" You know, we want that tribal knowledge and that industry expertise to really lean in on product innovation, but we want leaders that understand how to make money and how to push the levers to make money or pull the levers to make money. Ammo is a perfect example. We've got those factories humming right now and producing the right SKUs, minimizing changeovers, and God forbid, if it corrects a little bit on the top line, we know exactly where we're gonna pull the cost at. We did it before. That's why when you look at peak to peak, our margins are 1,000 basis points higher, not by accident, but by a lot of the work that we did to consolidate the industry, to make it more disciplined, to really invest in primers where there's only a couple of suppliers. We have a much better way to control our own destiny than we ever have. That's what I think is misunderstood when we start thinking about the ammunition business. Very, very different than the way it used to be. Great. Thanks, Chris. I wanna thank everyone online for joining us today. For everyone who's attending today, we have a fantastic outdoor experience waiting for you. We've got some Camp Chef cooking up some food. We have QuietKat out there. You can test out the Foresight Sports simulator. Not only meet and speak to the leadership team, but we have an extended team here today with founders of many of these businesses too. Thank you. Yeah. Thanks, everyone. Thank you.