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Head Of Vista Outdoor Exits

July 11, 2017 by

Mark DeYoung, CEO of Vista Outdoor, suddenly retired from his executive position as well as the Board of Directors yesterday. The report filed with the Securities and Exchange Commission (see below) notes that he won’t be staying on in any role with the company. DeYoung was CEO of ATK (formerly Alliant Technologies) when it split into two companies after merging with Orbital Sciences. He made the decision to go with the sporting and outdoor portion of the company rather than the aerospace and defense related portion.

Vista Outdoor is the parent holding company for Savage Arms, Stevens, Federal ammunition, Speer, RCBS, Weaver and Redfield scopes, and a large number of other well-known brands.

From their 8-K filing:

On July 10, 2017, the Board of Directors of Vista Outdoor Inc. (“Vista Outdoor” or the “Company”) announced that it has elected Michael Callahan, the Company’s current Lead Independent Director, to serve as interim Chairman and Chief Executive Officer effective July 11, 2017, replacing Mark W. DeYoung. Mr. DeYoung has elected to retire from the Company’s Board of Directors and role as Chief Executive Officer, effective July 11, 2017 (the “Retirement Date”).

Mr. Callahan, age 67, has more than 40 years of experience in the sporting goods industry, and has served as Lead Independent Director of Vista Outdoor since the Company spun off from ATK in February 2015. He has been the President and Chief Executive Officer of Aspen Partners, a Utah-based consultant to the outdoor sporting industry, since 2008. From 1990 until his retirement in 2008, Mr. Callahan served in various merchandising, marketing, management and senior executive positions with Cabela’s, Inc., most recently as Senior Vice President Business Development & International Operations where he was responsible for M&A and spearheaded Cabela’s expansion into Canada. Mr. Callahan is a member of the Board of the Midway USA Foundation and formerly served as a member of the Board of Bushnell Outdoor Products, Chairman of the Congressional Sportsmen’s Foundation and Vice Chairman of the Outdoor Business Council of the US Sportsmen’s Alliance.

In connection with Mr. DeYoung’s retirement, the Company has entered into a Waiver and General Release Agreement with Mr. DeYoung (the “Agreement”). In exchange for his waiver of claims against the Company, the Agreement provides Mr. DeYoung a lump-sum cash payment in an amount equal to his current base salary ($1,081,500); a pro-rata portion of his annual bonus (based on the Company’s actual performance for the entire fiscal year); accelerated vesting of his outstanding time-based restricted stock, restricted stock unit and stock option awards that would have vested had he remained employed by the Company for 12 months following his Retirement Date; a pro rata portion of his performance-based long-term incentive awards that would have vested on the next vesting date based on actual performance; company-paid COBRA premiums under Vista Outdoor’s health and welfare plans until 18 months following the Retirement Date; and the ability for Mr. DeYoung to participate in the Company’s Employee Purchase Program as if he remained an employee of the Company. The Employee Purchase Program allows all employees of the Company to purchase Company products at a discount. The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the Agreement filed as exhibit 10.1 hereto and incorporated by reference herein.

At the time of filing, the Company has not finalized a compensatory arrangement with Mr. Callahan in connection with his appointment to the position of interim Chairman and Chief Executive Officer. The entry of the Company of any such material compensatory or other arrangements with Mr. Callahan will be filed by the Company with the Securities and Exchange Commission.

I’m not sure why Mr. DeYoung suddenly retired as he was slated to stand for election to the Board of Directors in August. However, Vista Outdoor’s stock price is now about half what it was merely one year ago. According to the conference call today, the Board and Mr. DeYoung decided to “accelerate his retirement”.  Mr. Callahan has said he will not be a candidate for the permanent CEO position. They are denying that there is anything to read into the fact that the announcement of his retirement was very sudden. At least that is what they are saying.

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NICS Checks Down For June

July 11, 2017 by 1 Comment

The National Shooting Sports Foundation adjusted figure for June 2017 shows a 10.9% decline from the same month in 2016.

From NSSF:

The June 2017 NSSF-adjusted National Instant Criminal Background Check System (NICS) figure of 1,016,213 is a decrease of 10.9 percent compared to the June 2016 NSSF-adjusted NICS figure of 1,140,088. For comparison, the unadjusted June 2017 FBI NICS figure 1,888,266 reflects an 11.1 percent decrease from the unadjusted FBI NICS figure of 2,123,334 in June 2016.

You can see that graphically below:

However, if you study that graphic and read the numbers you should realize that the sky isn’t falling. It is the second highest June on record and the NSSF-adjusted NICS number is still over 1 million checks. Gun sales are probably down from last summer when it appeared that anti-gun Hillary Clinton was going to ride into office after defeating what the media and the experts considered a weak and absurd Republican nominee. Of course we know now that she was the weak candidate and that Donald Trump wasn’t that weak of a candidate.

As with all reports of NICS figures it should be remembered that they do not have a perfect correlation with firearm sales. In many states a carry permit substitutes for a NICS check. Moreover, the NICS check system is also used by many states for permit background checks and rechecks. The NSSF allows for these checks and rechecks when making their adjustments to the reported monthly NICS figures.

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Want To Buy A Shockwave Or Tac-14 In Oregon?

July 10, 2017 by 7 Comments

If you want to buy a Mossberg Shockwave or a Remington Tac-14, you may have to wait a while. According to the Oregon Firearms Federation, the Oregon State Police who are tasked with background checks in that state have put a “hold” on all transfers involving those two firearms. They are now waiting on a ruling from the Oregon Department of Justice.

As you will remember, the Bureau of Alcohol, Tobacco, Firearms, and Explosives has decided that these 14 inch firearms built on shotgun receivers having an overall length of greater than 26 inches, and with a bird’s head grip are not shotguns but rather generic firearms.

More on this from the Oregon Firearms Federation:

Oregon law describes “short barrel” shotguns as:

“a shotgun having one or more barrels less than 18 inches in length and any weapon made from a shotgun if the weapon has an overall length of less than 26 inches.”

However, Oregon law does not define what a “shotgun” is.

Under Federal law, these are not shotguns at all since they are not designed to be fired from the shoulder. These firearms are not considered to have been “made from a shotgun” either since they come from the factory configured with no stock.

While Oregon law prohibit shotguns with barrels shorter than 18 inches, it provides for an “affirmative defense” if the shotgun “was registered as required under federal law.”

Of course, these guns cannot be “registered” under Federal law because they are not regulated under the NFA.

As you may know, many of these guns have already been transferred with OSP approval. OSP has no word on what will happen to people who bought them legally prior to this new policy.
OSP has promised to provide a copy of whatever determination the Department of Justice makes on these guns. If we receive it we will provide it.

 In some states such as North Carolina, there is a definition of any other weapon that more restrictive than the federal law. For example, NCGS § 14-288.8(c)(2) states that a weapon other than a shotgun with a bore greater than 1/2 inch is considered a “weapon of mass death and destruction” unless it is registered under the NFA. This would seem to preclude the sale of the Shockwave and Tac-14 in North Carolina. However, Oregon law has no such definition. Any move to ban their transfer would be stretching the law for political purposes. Unfortunately, given the state of affairs in Oregon in recent years that would not be shocking.

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Finally Confirmed – S&W Buys Suppressor Maker Gemtech (Updated)

July 5, 2017 by 1 Comment

In what has to be considered the worst kept secret on the Interwebs, it was finally confirmed today that Smith & Wesson division of American Outdoor Brands Corp. is buying suppressor maker Gemtech (Gemini Technologies). The Firearm Blog announced it as breaking news on Sunday, July 2nd, and many people posted this to Facebook including myself.

Given that AOBC is a public company, SEC Regulation FD requires “companies to distribute material information in a manner reasonably designed to get that information out to the general public broadly and non-exclusively.” A purchase of this magnitude would certainly have been “material”. I kept looking for a news release on AOBC’s investor relations website as well as for a 8-K filing on the SEC’s website regarding this purchase. 8-K filings usually are simultaneous with new releases though a company has up to four business days to make the filing. I could not find anything official on the purchase of Gemtech.

While I assumed that there was indeed a transaction that was going to take place, not having official confirmation told me one of two things. First, that the transaction wasn’t a done deal yet and maybe there was a snag in the negotiations. Second, it could have meant – and I think this is what happened here – that someone, somewhere jumped the gun on the announcement and violated a non-disclosure agreement.

I think the timing is right for both companies involved. S&W competitors Ruger and SIG both now produce their own suppressor lines. So, too, does Remington with their AAC division. The purchase of Gemtech now allows S&W into the game at a significant level without having to start from scratch. It may also signify a vote of confidence on the part of AOBC and S&W that the Hearing Protection Act will pass as either a stand alone bill or as part of the SHARE Act.

According to Gemtech’s website, they have been in the suppressor business since 1976. While I don’t know how the ownership of Gemtech is structured, I’m guessing that what we are seeing here is a situation similar to that of Crimson Trace. The founder(s) have reached a point where they want to relax a bit and this gives them the opportunity to cash out while still maintaining a presence. Thus, the purchase of Gemtech by S&W becomes a win-win situation for all involved.

The official release is below and notes that the current CEO of Gemtech, Ron Martinez, will stay on as General Manager.

SPRINGFIELD, Mass., July 5, 2017 /PRNewswire/ — American Outdoor Brands Corporation (NASDAQ Global Select: AOBC), a leading manufacturer of firearms and a provider of quality accessory products for the shooting, hunting, and rugged outdoor enthusiast, today announced that its firearms business, Smith & Wesson Corp., has agreed to acquire substantially all of the assets of Gemini Technologies, Incorporated (“Gemtech”), a provider of high quality suppressors and accessories for the consumer, law enforcement, and military markets.

James Debney, President and CEO of American Outdoor Brands, said, “Gemtech is widely recognized for producing some of the finest rifle and pistol suppressors in the market. Gemtech’s strong product development capabilities, combined with our experience in brand management and our manufacturing expertise, will help us to efficiently develop both firearms and suppressors, minimizing our time to market for both product categories. We view this acquisition as opportunistic, allowing us to enter the suppressor category, which resonates strongly with our core firearm consumer, at a time when the market is particularly soft. These elements combine to make Gemtech an excellent fit with our long term strategy.”

The company intends to complete the acquisition of Gemtech utilizing cash on hand and expects the transaction to close this summer. Ron Martinez, President of Gemtech, will continue in his leadership role as General Manager, heading up the company’s strong team located in Eagle, Idaho.

UPDATE: On Monday I had written Liz Sharp, VP for Investor Relations at AOBC, inquiring why there was no release on the purchase of Gemtech and asked if the info had leaked prior to the official release. I got a response back last night after I had written this post. It seems that since AOBC didn’t buy Gemtech but just their assets it was not considered “material”.

Hello, John, and thank you for the inquiry. Yes, Smith & Wesson will purchase the assets of Gemtech in a transaction that we plan to close this summer. Since the transaction is an asset purchase and not deemed to be material, we announced the transaction internally to our employees prior to the holiday, and externally via a press release this morning. … We believe this is a great fit with our strategy. Please let me know if I can help further, and thanks again for the inquiry.

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Happy Free Fishing In North Carolina Day

July 4, 2017 by 2 Comments

The North Carolina General Assembly authorizes one day a year as “free fishing day”. That day is always July 4th. It allows residents and non-residents alike to fish anywhere in the state without a fishing license or trout license for free.

From the NC Wildlife Resource Commission:

RALEIGH, N.C. (June 20, 2017) — July 4 is “free fishing day” in North Carolina where everyone — residents and non-residents alike — can fish in any public body of water from 12:01 a.m. to 11: 59 p.m., without having to purchase a fishing license or additional trout privilege license.

While anyone 16 years and older can fish recreationally in all public waters, including saltwater, without a license on July 4, all other fishing regulations, such as length and daily possession limits, as well as bait and tackle restrictions, apply.

To make “free fishing day” more enjoyable, the N.C. Wildlife Resources Commission stocks a variety of fish in public, inland waters across the state throughout the year to give anglers a better chance of catching fish. Cool mountain waters are stocked with brook, brown and rainbow trout, as well as walleye and muskellunge. In warm waters, Commission staff stocks largemouth bass, American shad, striped bass, channel catfish and sunfishes.

In addition to stocking fish, the Commission has interactive fishing and boating maps on its website to make finding a spot to fish easier.

Authorized by the N.C. General Assembly and enacted in 1994, North Carolina’s annual free fishing day always falls on July 4. On all other days of the year, a fishing license is not required for anglers 15 years and younger, but anyone age 16 and older must have a fishing license to fish in any public water in North Carolina, including coastal waters.

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One Way To Fight Dead Of Night Gun Regulations

July 3, 2017 by

The California Department of Justice submitted a series of regulations relating to “assault weapon bullet button” laws to the Office of Administrative Law. They wanted these regulations to go into effect with no notice and no public comment. When Craig DeLuz of the Firearms Policy Coalition got wind of this he went to the DOJ’s office and asked to inspect these regulations. While this seems reasonable to most people, he was denied.

As a result of this denial, DeLuz, the Firearms Policy Coalition, and the CalGuns Foundation filed suit in California state court on Friday alleging a violation of both the California state constitution and the Public Records Act. Alinsky’s 4th rule for radicals says to make the opposition live up to its own book of rules and FOIA/Public Records Act laws are (or used to be) a darling of progressives.

From the FPC on the lawsuit:

SACRAMENTO, CA (June 30, 2017) — Today, Sacramento resident Craig DeLuz, Firearms Policy Coalition (FPC), and The Calguns Foundation (CGF) have announced a new legal action intended to ensure that the California Department of Justice (DOJ) cannot hide its proposed regulations from the public. The action was filed after DeLuz and two civil rights advocacy organizations sought access to DOJ regulations on so-called “assault weapon” firearms so that they could review them and inform the public, but were denied.

The petitioners are represented by Paul Nicholas Boylan, an attorney based in Davis specializing in records access and government transparency issues.

In May, the Department of Justice submitted to the Office of Administrative Law (OAL) a set of regulations relating to the “Bullet Button Assault Weapons” laws that were passed and signed into law in 2016. Notably, the DOJ had submitted the regulations under the OAL’s “file & print” process, which means that the DOJ wanted the regulations to be put into law without any public notice or comment as would usually be required under the Administrative Procedure Act (APA).

When that action was discovered, DeLuz went to the DOJ’s office and asked to inspect them so that he could let California gun owners know what they contained and pass information back to the groups’ legal counsel for review. But the Department turned him away at the door, claiming that the documents were “draft regulations” and “not available for public inspection” — effectively, keeping the regulations secret from 39 million Californians even though they could have become law.

“My clients recognize that the work the Department of Justice performs directly affects the rights of millions of people,” Boylan said. “The people of California have a constitutional right to examine how and why public agencies make decisions that impact other fundamental rights, and the DOJ is no exception.”

“If a record relates to the public’s business, then the public agency that holds the record must be provided to anyone who wants to see it. That’s the law, and the DOJ must follow it,” Boylan concluded.

“When the Department of Justice denied us access to their submitted regulations and told me that they were not available for public inspection, I was outraged and insulted,” said Craig DeLuz, FPC’s California lobbyist and a spokesperson for the organizations. “Those who claim to enforce the law should be expected to follow it.”

“The California Constitution and Public Records Act make it clear that people have a right to access and inspect information concerning the conduct of the people’s business,” said Brandon Combs, the president of FPC and executive director of CGF. “We know that the Department will have more firearm and ammunition regulations coming out over the coming months, and we will not allow them to use bad faith tactics to deny the people information about these important issues.”

To help inform law-abiding gun owners about the status of the “assault weapons” laws and regulations, Firearms Policy Coalition has established a Web site at BulletButtonBan.com where it posts news and information about the issue.

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Picture Of The Day

July 3, 2017 by

This past Thursday, US District Court Judge Roger T. Benitez issued a preliminary injunction against the enforcement of the State of California’s ban on the possession of standard capacity magazines which was set to go into effect on Saturday, July 1st. Legal scholar Dave Kopel does an excellent job in analyzing Judge Benitez’s decision in the case of Duncan et al v. Becerra.

In celebration of Judge Benitez’s injunction, one California gun owner, Archibald68 on Instagram, was pictured in front of the California State Capitol holding a 30-round magazine while wearing a “banana clip” t-shirt. Gotta love it!

Great pic from @firearms.unknown of @archibald68 celebrating the right to possess common magazines while repping BRD’s Banana Clip tee at the CA State Capitol🙌🏼 ______________________________________ Today, July 1st 2017, would have been the last day for Californians to transfer out of state, sell out of state, or turn over their 10+ mags to law enforcement for destruction without facing criminal charges that would have lead to a fine and suspension of their 2A Right as well seizure of all their firearms, in essence, a backdoor confiscation of weapons. This was via the passage of Prop 63, which was opposed by law enforcement. ______________________________________ U.S. District Judge Roger Benitez, who is based in San Diego, issued a preliminary injunction Thursday, June 29, that found the law was likely unconstitutional because it prevented people from using firearms that employed “whatever common magazine size he or she judges best suits the situation.” The law would have barred people from possessing magazines containing more than 10 cartridges. ______________________________________ BLK RFL DIV called Judge Benitez’s office (619) 446 3589 and, while not personally available, left a message thanking him for protecting the Rights and property of Americans. If you wish to do the same, do it, thank those that stand between us and the statists who wish to criminalize law abiding folks, stand with those who honor their Oath.
A post shared by BLK RFL DIV (@blk.rfl.div) on Jul 1, 2017 at 9:34am PDT
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Wouldn’t You Like To Be Ian?

June 29, 2017 by

Ian McCollum of Forgotten Weapons got the chance to visit and to film at the British National Firearms Centre. Their collection includes the original Pattern Room collection. He released a teaser yesterday of some of the firearms he had a chance to examine.

He was able to visit the collection due to his work with ARES Armament Research Services.

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Another One Down Thanks To The Firearms Policy Coalition

June 29, 2017 by

The City of Tacoma, Washington repealed their ban on the sale, use, and possession of “electronic arms”. This means that stun guns and, presumably, Tasers will now be legal to possess and use for self defense in that city. As legal scholar Eugene Volokh notes, this is just one of many repeals in recent months. The legal reason can be traced back to the Supreme Court’s decision in Caetano v. Massachusetts which found that stun guns were indeed covered by the Second Amendment.

Most of these cities would not have dropped their bans were it not for the Firearms Policy Coalition and their attorney Stephen Stamboulieh. They have been working their way through a list of municipalities with these sort of restrictions and have threatened lawsuits if the bans were not dropped. Mr. Stamboulieh, you may remember, was (unfortunately) an unsuccessful candidate for the NRA Board of Directors this year.

The FPC released the following on their win yesterday:

SACRAMENTO, CA (June 27, 2017) — Firearms Policy Coalition (FPC) today applauded the unanimous repeal of Tacoma Washington’s ban on the sale, use, and possession of electronic arms.

Attorneys for FPC sent a letter to the Tacoma City Council on April 10, which warned that the group was ready and willing to sue based on solid case law if the city refused to repeal the ban.

Said FPC attorney Stephen Stambouleih, “As the Supreme Court noted in Caetano v. Massachusetts it “has held that ‘the Second Amendment extends, prima facie, to all instruments that constitute bearable arms, even those that were not in existence at the time of the founding.’”

As the latest municipality to repeal a ban, Tacoma was one of only a handful of municipalities nation-wide which still had an outright ban on possession and defensive use of electronic stun guns.

“The City of Tacoma did the right thing here,” said FPC President Brandon Combs. “Our staff and attorneys are already reviewing regulations in other cities and states for legal violations. By no means is our work done yet.”

“I think it’s obvious the city knew they would lose any court challenge and they wisely chose to repeal this law,” said Philip Watson, FPC’s Northwest region lobbyist and spokesperson. “We’re not done taking on bans on arms protected by the Second Amendment.”