As boss, Metz couldn't turn Arctic Cat around
New Vista CEO was at the helm when struggling Minnesota snowmobile maker was sold in January
Arctic Cat lost $60.5 million in nine months before the company was sold under the leadership of Christopher Metz, Vista Outdoor's new CEO.
Metz joined Vista Outdoor this week. The sale of the snowmobile and all-terrain vehicle manufacturer, Arctic Cat, was announced in January, two years into Metz's stint as CEO of the Minneapolis-based company.
The Minneapolis Star Tribune described Arctic Cat as "long struggling" in a Jan. 25 article about the acquisition of the firm by Textron Inc. for $247 million.
Textron is a conglomerate headquartered in Rhode Island that manufactures Bell helicopters, golf carts and Cessna airplanes, according to the Star Tribune. "The sale ... follows extended turnaround efforts ... that failed to yield consistent profits or greatly excite consumers with new models," the article states.
When Metz came to Arctic Cat, the company already had experienced "years of management turbulence and poor financial performance," according to the Star Tribune. "... Metz focused aggressively on reducing dealer inventory, boosting promotions, new products and sponsoring more events in the sports racing world."
Metz was eligible for $6.6 million in cash, equity and other benefits because of the sale, according to a July 14 article in the Star Tribune.
Metz has an annual base salary of $1 million at Vista. He is eligible for an annual bonus with a target equal to that amount and is receiving a one-time sign-on stock award of $1.75 million, as well as other compensation in excess of $1 million that he receives in successive years with Vista.
A spokeswoman for Vista Outdoor directed the Tribune's questions about Metz to the company's next earnings conference call Nov. 9, which will be broadcast on the internet.
"Chris will actually be speaking more about his professional experience and why he chose to join Vista," Amanda Covington said in an email.
A lot will be expected of Metz at Vista Outdoor. The company had a net income of $16.6 million for the three months ending July 2, compared with $29.1 million for the same time last year. Its stock price was at $20.88 per share Friday. Its high in the last year was $41.05 per share in late November.
The company has shed jobs since last winter at its two ammunition manufacturing operations - in Lewiston and Anoka in the Minneapolis area.
Lewiston's head count is 1,330 compared with about 1,500 at the beginning of the year through layoffs and attrition. The Minnesota operations employ 1,020 after a layoff last week of 200 employees, according to the Star-Tribune. That's down from 1,430 in February.
Demand for ammunition dropped after the presidential election in part because gun owners were no longer as worried about new regulation. At the same time, online shopping is changing the behavior of consumers. Vista Outdoor is responding by developing a direct-to-consumer, e-commerce platform.
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Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.
