The CEO of the parent company of Remington Ammunition in Lonoke is out and has been replaced by a board member, the company said Thursday.
Chris Metz agreed to resign his post as chief executive officer and step down as a company director at the request of the Vista Outdoor Board, according to a news release. The move comes from the board's "loss of confidence in his leadership for reasons not involving financial reporting or internal controls," according to a release.
Gary McArthur, 63, a director since 2015, will serve as interim CEO effective immediately. Metz will continue to work full-time as a non-officer through March 31 to facilitate the transition and up to an additional three months as a consultant, according to a filing with the Securities and Exchange Commission. He became CEO in 2017.
Metz is also entitled to a lump sum payment equal to 100% of his current base salary of a little over $1 million and other benefits, according to the SEC filing.
Minnesota-based Vista Outdoor formed in 2015 and now is made up of 41 outdoor brands, including bicycles, camping gear, golf and skiing equipment, optics and ammunition makers. It purchased Remington Ammunition out of bankruptcy in late 2020. Remington Ammunition employs a little more than 1,000 workers in Arkansas at last count.
In May, Vista Outdoor said it would spin off its sporting product segment, which includes its ammo brands like Remington and its outdoor product segment. On Thursday, as part of its third quarter earnings call, the company said those plans are still on track to be completed in fiscal 2023.
Vista Outdoor reported net income of $65.15 million or $1.13 per share for its third quarter of fiscal 2023 which ended Dec. 25, compared with $118.14 million or $2 per share for the comparable quarter a year ago. A consensus estimate of seven analysts pegged earnings per share at $1.12 for the period, according to Yahoo Finance.
Revenue for the third quarter was $754.78 million, down $40 million from $794.65 million for the third quarter of 2022. A consensus estimate of six analysts put revenue at $753.73 million.
During a conference call with analysts, company executives said prices across all types of ammunition were up because of inflation but had declined a bit for some pistol offerings. They expected prices to remain steady in the coming year.
Shares of Vista Outdoor fell 79 cents to close Thursday at $29.08 in trading on the New York Stock Exchange. Shares have traded as low as $22.97 and as high as $44.64 over the past year.
Remington began ammunition production at the Lonoke facility in 1969. The operation includes 750,000 square feet of manufacturing space.