(Amounts in thousands except per share data and unless otherwise indicated)
Forward-Looking Information is Subject to Risk and Uncertainty
Some of the statements made and information contained in this report, excluding historical information, are "forward-looking statements," including those that discuss, among other things: our plans, objectives, expectations, intentions, strategies, goals, outlook or other non-historical matters; projections with respect to future revenues, income, earnings per share or other financial measures forVista Outdoor ; and the assumptions that underlie these matters. The words "believe," "expect," "anticipate," "intend," "aim," "should" and similar expressions are intended to identify such forward-looking statements. To the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward-looking information provided by the Private Securities Litigation Reform Act of 1995. Numerous risks, uncertainties and other factors could cause our actual results to differ materially from the expectations described in such forward-looking statements, including the following:
•supplier capacity constraints, production or shipping disruptions or quality or price issues affecting our operating costs;
•the supply, availability and costs of raw materials and components;
•increases in commodity, energy, and production costs;
•seasonality and weather conditions;
•our ability to complete acquisitions, realize expected benefits from acquisitions and integrate acquired businesses;
•reductions in or unexpected changes in or our inability to accurately forecast demand for ammunition, accessories, or other outdoor sports and recreation products;
•disruption in the service or significant increase in the cost of our primary delivery and shipping services for our products and components or a significant disruption at shipping ports;
•risks associated with diversification into new international and commercial markets, including regulatory compliance;
•our ability to take advantage of growth opportunities in international and commercial markets;
•our ability to obtain and maintain licenses to third-party technology;
•our ability to attract and retain key personnel;
•disruptions caused by catastrophic events;
•risks associated with our sales to significant retail customers, including unexpected cancellations, delays, and other changes to purchase orders;
•our competitive environment;
•our ability to adapt our products to changes in technology, the marketplace and customer preferences, including our ability to respond to shifting preferences of the end consumer from brick and mortar retail to online retail;
•our ability to maintain and enhance brand recognition and reputation;
•others' use of social media to disseminate negative commentary about us, our products, and boycotts;
•the outcome of contingencies, including with respect to litigation and other proceedings relating to intellectual property, product liability, warranty liability, personal injury, and environmental remediation;
•our ability to comply with extensive federal, state and international laws, rules and regulations;
•changes in laws, rules and regulations relating to our business, such as federal and state ammunition regulations;
•risks associated with cybersecurity and other industrial and physical security threats;
•interest rate risk;
•changes in the current tariff structures;
•changes in tax rules or pronouncements;
•capital market volatility and the availability of financing;
•foreign currency exchange rates and fluctuations in those rates;
25
--------------------------------------------------------------------------------
Table of Contents
•general economic and business conditions inthe United States and our markets outsidethe United States , including as a result of the war inUkraine and the imposition of sanctions onRussia , the COVID-19 pandemic, conditions affecting employment levels, consumer confidence and spending, conditions in the retail environment, and other economic conditions affecting demand for our products and the financial health of our customers; and •risks related to the separation of our Outdoor Products and Sporting Products segments, including that the process of exploring the transaction and potentially completing the transaction could disrupt or adversely affect the consolidated or separate businesses, results of operations and financial condition, that the transaction may not achieve some or all of any anticipated benefits with respect to either business and that the transaction may not be completed in accordance with our expected plans or anticipated timelines, or at all. You are cautioned not to place undue reliance on any forward-looking statements we make. A more detailed description of risk factors that may affect our operating results can be found in Part 1, Item 1A, Risk Factors, of our Annual Report on Form 10-K for fiscal year 2022 and in the filings we make withSecurities and Exchange Commission (the "SEC") from time to time. We undertake no obligation to update any forward-looking statements, except as otherwise required by law.
Business and Products
We serve the outdoor sports and recreation markets through a diverse portfolio of well-recognized brands that provide consumers with a wide range of performance-driven, high-quality, and innovative products. Our broad range of consumers include outdoor enthusiasts, hunters and recreational shooters, athletes, as well as law enforcement and military professionals. We sell our products through a wide variety of mass, specialty and independent retailers and distributors, such as Academy, Amazon,Bass Pro Shops /Cabela's , Dick's Sporting Goods, Kiesler Police Supply,Nations Best Sports ,Sports Inc. , Sports South, Sportsman's Warehouse, Target, and Walmart. Some of our products are also sold directly to consumers through the relevant brand's website. We have a scalable, integrated portfolio of brands that allows us to leverage our deep customer knowledge, product development and innovation, supply chain and distribution, and sales and marketing functions across product categories to better serve our retail partners and consumers.
Reportable Segments and Products
We operate under eight operating segments, which have been aggregated into two reportable segments, Sporting Products and Outdoor Products.
•Our Sporting Products reportable segment designs, develops, distributes and manufactures ammunition, primers, components and related equipment and accessories and serves devoted hunters, recreational shooters, federal and local law enforcement agencies and the military. Ammunition products include pistol, rifle, rimfire, shotshell ammunition and primers. Our Sporting Products reportable segment consists of our Ammunition operating segment, which includes our ammunition-related businesses, including Federal, Remington, CCI, Speer, and HEVI-Shot. •Our Outdoor Products reportable segment designs, develops, distributes and manufactures gear and equipment to enhance the outdoor experiences of a wide variety of end users, including hunters, hikers, campers, cyclists, skiers, snowboarders, anglers and golfers. Products from the businesses included in this reportable segment include sport optics and archery and hunting accessories, e-bikes, helmets, goggles and accessories for cycling, snow sports, motocross and power sports, pellet grills, cookware, pellets and camp stoves, hydration packs, water bottles, drinkware and coolers, launch monitors, laser rangefinders, GPS devices, golf simulators and other technology products, waders, sportswear, outerwear, footwear and fishing tools and accessories. Our Outdoor Products reportable segment consists of:
•Our Outdoor Accessories operating segment, which includes our Bushnell Optics, Primos, RCBS, BlackHawk!, and Eagle businesses;
•Our Sports Protection operating segment, which includes our Bell, Giro and
•Our Cycling operating segment, which is comprised of our QuietKat business;
•Our Outdoor Cooking operating segment, which includes our
•Our Hydration operating segment, which is comprised of our CamelBak business;
•Our Golf operating segment, which includes our Bushnell Golf and Foresight businesses; and
•Our Fishing operating segment, which is comprised of our Simms Fishing business.
26
--------------------------------------------------------------------------------
Table of Contents
Planned Separation of Outdoor Products and Sporting Products
OnMay 5, 2022 , we announced that our Board of Directors has unanimously approved preparations for the separation of our Outdoor Products and Sporting Products reportable segments into two independent, publicly-traded companies. We anticipate that the transaction will be in the form of a distribution to our shareholders of 100% of the stock of Outdoor Products, which will become a new, independent publicly traded company. The distribution is intended to be tax-free toU.S. shareholders forU.S. federal income tax purposes. We currently expect the transaction will be completed in calendar year 2023, subject to final approval by our Board of Directors, a Form 10 registration statement being declared effective by theU.S. Securities and Exchange Commission , our receipt of the necessary regulatory approvals and satisfaction of other conditions. There can be no assurance regarding the ultimate timing of the proposed transaction or that the transaction will be completed.
We expect that the Planned Separation will create a number of benefits for Outdoor Products and Sporting Products, including:
•Enhanced strategic focus with supporting resources: Each company will have enhanced strategic focus with resources to support its specific operational needs and growth drivers.
•Tailored capital allocation priorities: Each company will have a tailored capital allocation philosophy that is better suited to support its distinctive business model and long-term goals.
•Strengthened ability to attract and retain top talent: Each company will benefit from enhanced ability to attract and retain top talent that is ideally suited to execute its strategic and operational objectives.
•Compelling value for shareholders: Each company will present a differentiated and compelling investment opportunity based on its particular business model.
•Expanded strategic opportunities: Improved focus will allow Outdoor Products to further cement its reputation as the acquirer of choice through continued M&A in the outdoor recreation products marketplace and enable Sporting Products to secure attractive partnerships with other manufacturers.
Executive Summary
Financial highlights and notable events for the three months ended
•Net sales decreased
• Sporting Products net sales decreased
• Outdoor Products net sales increased
•Gross profit decreased
• Sporting Products gross profit decreased
• Outdoor Products gross profit decreased
•EBIT decreased$61,622 , or 38.8%, over the comparable quarter last year. EBIT margin decreased to 12.9%, a decrease of 710 basis points over the comparable quarter last year. •Net income decreased to$65,147 , or$1.13 per diluted share, compared to net income of$118,137 , or$2.00 per diluted share, for the comparable quarter last year. Sporting Products Industry Sales of hunting and shooting-sports related products, including ammunition, are heavily influenced by hunting and recreational shooting participation rates, civil unrest and the political environment. We believe that long-term participation trends support our expectation of continued increased demand for hunting and shooting-sports related products. Participation rates have remained strong, and we are seeing an expanded demographic of users. This broadened end consumer base has resulted in a much larger total addressable market opportunity for the industry and for our company. We believe we are well-positioned to succeed and capitalize on this demand given our scale and global operating platform, which we believe is particularly difficult to replicate in the highly regulated and capital-intensive ammunition manufacturing sector.
Outdoor Recreation Industry
We believe that long-term outdoor participation trends combined with a larger base of participants supports our expectation of continued increased demand for the innovative outdoor recreation-related products produced by our Outdoor 27
--------------------------------------------------------------------------------
Table of Contents
Products brands. We believe that demand for our Outdoor Products is being temporarily impacted by higher inflation causing a contraction in disposable income. Rising inflation and the absence of stimulus payments have had an impact on the opening price points of certain categories. However, outdoor participation trends and demand for premium price points remain strong across our brand portfolio. Our Outdoor Products brands hold a strong competitive position in the marketplace, and we intend to further differentiate our brands through focused research and development and marketing investments including increased use of social media and other digital marketing. Following significant investments in our brands' e-commerce capabilities, both directly and through ourE-Commerce Center of Excellence , we believe our brands are well-positioned to benefit from the ongoing shift in consumer shopping behavior to utilize online channels. This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to provide a reader of our financial statements with a narrative from the perspective of our management on results of operations, our financial condition, liquidity, and certain other factors that may affect our future results. The following information should be read in conjunction with our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
Results of Operations
Segment results for the three and nine months ended
Our net sales, gross profit, and EBIT by reportable segment and by corporate and other (where applicable) are presented below (dollars in thousands):
Three months ended Change Nine months ended Change December 25, December 26, December 25, December 26, Net Sales: 2022 2021 Dollars Percent 2022 2021
Dollars Percent Sporting Products$ 401,504 $ 459,646 $ (58,142) (12.6) %$ 1,344,620 $ 1,274,127 $ 70,493 5.5 % Outdoor Products 353,271 335,008 18,263 5.5 % 994,445 961,899 32,546 3.4 % Total net sales$ 754,775 $ 794,654 $ (39,879) (5.0) %$ 2,339,065 $ 2,236,026 $ 103,039 4.6 % Three months ended Sporting Products- The decrease in net sales was a result of lower shipments, primarily of pistol ammunition, as channel inventory has normalized, the timing of shotshell shipments, and the termination of theLake City contract at the beginning of the quarter. Outdoor Products- The increase in net sales was driven by acquired businesses and golf, partially offset by declines in other organic businesses, which were primarily caused by reduced purchasing from international, big box, and other wholesale. Nine months ended Sporting Products- The increase in net sales was driven by improved pricing and higher volume in primer and rimfire, partially offset by volume declines in pistol, and termination of theLake City contract at the beginning of the third fiscal quarter. Outdoor Products- The increase in net sales was driven by acquired businesses and pricing, partially offset by declines in our organic businesses, which were primarily caused by reduced purchasing from big box retailers, and international and other wholesale vendors. Three months ended Change Nine months ended Change December 25, December 26, December 25, December 26, Gross Profit: 2022 2021 Dollars Percent 2022 2021 Dollars Percent Sporting Products$ 141,459 $ 178,062 $ (36,603) (20.6) %$ 501,558 $ 529,659 $ (28,101) (5.3) % Outdoor Products 102,396 104,655 (2,259) (2.2) % 301,675 293,790 7,885 2.7 % Corporate and other (5,049) (1,247) (3,802) - % (8,083)$ (1,631) (6,452) - % Total gross profit$ 238,806 $ 281,470 $ (42,664) (15.2) %$ 795,150 $ 821,818 $ (26,668) (3.2) % Gross profit margin 31.6% 35.4% 34.0% 36.8% Three months ended Sporting Products-The decrease in gross profit was caused by lower volume, unfavorable mix, and increased commodity and freight costs. These decreases were partially offset by pricing. Gross profit margin was 35.2% compared to 38.7% in the prior year quarter. 28
--------------------------------------------------------------------------------
Table of Contents
Outdoor Products-The decrease in gross profit was primarily caused by organic business volume declines, increased amortization costs from acquired businesses, increased promotional activity and unfavorable mix, partially offset by volume from acquired businesses. Gross profit margin was 29.0% compared to 31.2% in the prior year quarter.
Corporate and Other-The decrease in corporate gross profit was due to inventory step-up expenses related to acquisitions completed in the second quarter of fiscal year 2023.
Nine months ended
Sporting Products-The decrease in gross profit was caused by increased commodity and freight costs. These increases were partially offset by improved pricing. Gross profit margin was 37.3% compared to 41.6% in the prior year period. Outdoor Products-The increase in gross profit was primarily driven by volume from acquired businesses and price. These increases were partially offset by organic business volume declines. Gross profit margin was 30.3% compared to 30.5% in the prior year period. Corporate and Other-The decrease in corporate gross profit was due to inventory step-up expenses related to acquisitions completed in the second quarter of fiscal year 2023. Three months ended Change Nine months ended Change December 25, December 26, December 25, December 26, EBIT: 2022 2021 Dollars Percent 2022 2021 Dollars Percent Sporting Products$ 117,935 $ 149,671 $ (31,736) (21.2) %$ 427,573 $ 449,895 $ (22,322) (5.0) % Outdoor Products 14,114 42,277 (28,163) (66.6) % 72,271 127,946 (55,675) (43.5) % Corporate and other (34,724) (33,001) (1,723) (5.2) % (98,186) (84,499) (13,687) (16.2) % Total EBIT$ 97,325 $ 158,947 $ (61,622) (38.8) %$ 401,658 $ 493,342 $ (91,684) (18.6) % EBIT margin 12.9% 20.0% 17.2% 22.1% Three months ended Sporting Products-The decrease in EBIT was primarily caused by decreased gross profit, partially offset by decreased incentive compensation. EBIT margin was 29.4% compared to 32.6% in the prior year quarter. Outdoor Products-The decrease in EBIT was primarily caused by decreased gross profit in the organic businesses, as well as increased selling, general, and administrative costs related to acquired businesses. EBIT margin was 4.0% compared to 12.6% in the prior year quarter. Corporate and Other-The decrease in EBIT was primarily due to increased planned separation costs and decreased gross profit, partially offset by a decrease in contingent consideration and lower incentive compensation.
Nine months ended
Sporting Products-The decrease in EBIT was primarily driven by the decrease in gross profit, partially offset by decreased incentive compensation. EBIT margin was 31.8% compared to 35.3% in the prior year period. Outdoor Products-The decrease in EBIT was primarily caused by decreased gross profit in the organic businesses, as well as increased selling, general, and administrative costs related to the acquired businesses, partially offset by decreases in incentive compensation. EBIT margin was 7.3% compared to 13.3% in the prior year period.
Corporate and Other-The decrease in EBIT was primarily caused by increased planned separation costs, and increased transaction and transition costs, partially offset by a decrease in the fair value of the contingent consideration liabilities and lower incentive compensation.
Three months ended Change Nine months ended Change December 25, December 26, December 25, December 26, Interest expense, net: 2022 2021
Dollars Percent 2022 2021 Dollars Percent Corporate and other$ 18,953 $ 6,695 $ 12,258 183.1 %$ 39,197 $ 18,302 $ 20,895 114.2 % For the three and nine months endedDecember 25, 2022 , the increase in interest expense is due to a higher average interest rate and debt balance, along with increased debt issuance cost associated with our debt refinancing. 29
--------------------------------------------------------------------------------
Table of Contents Three months ended Nine months endedDecember 25 , EffectiveDecember 26 , EffectiveDecember 25 , EffectiveDecember 26 , Effective Income tax provision: 2022 Rate 2021 Rate $ Change 2022 Rate 2021 Rate $ Change Corporate and other$ (13,225) 16.9 %$ (34,115) 22.4 %$ 20,890 $ (77,844) 21.5 %$ (114,638) 24.1 %$ 36,794 See Note 15, Income Taxes, to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more details regarding income taxes.
The decrease in the effective rate for the three and nine months ended
Financial condition
Cash increased to$77,426 atDecember 25, 2022 compared to$22,584 atMarch 31, 2022 , primarily due to cash provided by advances on the 2022 ABL Revolving Credit Facility, 2022 Term Loan, and cash provided by operating activities, which was partially offset by payments for acquisitions completed during this fiscal year. Operating Activities Cash provided by operating activities increased by$88,050 in the nine months endedDecember 25, 2022 compared to the prior year period. The increase was primarily due to the timing of payments by customers, decreased payments for inventory, and decreased income tax payments as compared to the prior year period. These increases were partially offset by increased payments for incentive compensation and timing of payments to vendors.
Investing Activities
Cash used for investing activities increased by$233,658 for the nine months endedDecember 25, 2022 compared to the prior-year period. The increase was primarily driven by the acquisition of businesses during the second quarter of fiscal year 2023. Financing Activities Cash provided by financing activities increased by$404,260 for the nine months endedDecember 25, 2022 compared to the prior year period. The increase primarily relates to proceeds from the 2022 ABL Revolving Credit Facility and 2022 Term Loan and a reduction in the repurchase of treasury shares, partially offset by increased payments on our credit facilities and increased payments for debt issuance costs, as compared to the prior year period.
Liquidity and Capital Resources
In addition to our normal operating cash requirements, our principal future cash requirements are to fund capital expenditures, debt repayments, employee benefit obligations, share repurchases, earn-outs related to previous acquisitions, and any strategic acquisitions. Our short-term cash requirements for operations are expected to consist mainly of capital expenditures to maintain production facilities and working capital requirements. Our debt service requirements over the next two years consist of required interest payments due under our 4.5% Notes, 2022 Term Loan and 2022 ABL Revolving Credit Facility, and principal prepayments due under the 2022 Term Loan. Each of the 2022 ABL Revolving Credit Facility and the 2022 Term Loan includes a covenant that prohibits the spin-off of any line of business ofVista Outdoor or certain of its subsidiaries, including the expected separation of our Outdoor Products segment (the "Planned Separation"), and amendment of each such covenant will require the consent of all lenders under the applicable credit facility in order to permit the Planned Separation. We anticipate that each of the 2022 ABL Revolving Credit Facility and the 2022 Term Loan will be repaid or refinanced in full prior to or upon the consummation of the Planned Separation. Based on our current financial condition, management believes that our cash position, combined with anticipated generation of cash flows and the availability of funding, if needed, under our 2022 ABL Revolving Credit Facility, access to debt and equity markets, as well as other potential sources of funding including additional bank financing, will be adequate to fund future growth to service our currently anticipated long-term debt and pension obligations, make capital expenditures, pay earn-outs related to previous acquisitions, and fund the 2022 Share Repurchase Program over the next 12 months. As ofDecember 25, 2022 , based on the borrowing base less outstanding borrowings of$415,000 , outstanding letters of credit of$15,445 , and the minimum required borrowing base of$60,000 , the amount available under the 2022 ABL Revolving Credit Facility was$109,555 . Our total debt as a percentage of total capitalization (total debt and stockholders' equity) was 46.4% as ofDecember 25, 2022 . There can be no assurance that the cost or availability of future borrowings, if any, will not be materially impacted by capital market conditions, including any disruptions to capital markets caused by COVID-19 pandemic (including the 30
--------------------------------------------------------------------------------
Table of Contents
emergence and spread of vaccine resistant coronavirus variants), the war inUkraine and imposition of sanctions onRussia , or our future financial condition and performance. Furthermore, because our 2022 ABL Revolving Credit Facility is secured in large part by receivables from our customers, a sustained deterioration in general economic conditions, including as a result of the COVID-19 pandemic (including the emergence and spread of vaccine resistant coronavirus variants) or the war inUkraine and imposition of sanctions onRussia , that adversely affects the creditworthiness of our customers could have a negative effect on our future available liquidity under the 2022 ABL Revolving Credit Facility
Additional information about our long-term debt is presented in Note 13, Long-term Debt, to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more details.
Contractual Obligations and Commitments
We lease certain warehouse, distribution and office facilities, vehicles and office equipment under operating leases. As ofDecember 25, 2022 , current and long-term operating lease liabilities of$16,612 and$94,845 , respectively, were recorded in the accompanying condensed consolidated balance sheets. For further discussion on minimum lease payment obligations, see Note 3, Leases, to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more details. Except as discussed in Note 13, Long-term Debt, to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q, and under Liquidity and Capital Resources above, there have been no material changes with respect to the contractual obligations and commitments or off-balance sheet arrangements described in our Annual Report on Form 10-K for fiscal year 2022. Contingencies Litigation From time-to-time, we are subject to various legal proceedings, including lawsuits, which arise out of and are incidental to, the conduct of our business. We do not consider any of such proceedings that are currently pending, individually or in the aggregate, to be material to our business or likely to result in a material adverse effect on our operating results, financial condition, or cash flows.
Environmental Liabilities
Our operations and ownership or use of real property are subject to a number of federal, state, and local environmental laws and regulations, as well as applicable foreign laws and regulations, including those governing the discharge of hazardous materials, remediation of contaminated sites, and restoration of damage to the environment. We are obligated to conduct investigations and/or remediation activities at certain sites that we own or operate or formerly owned or operated. Certain of our former subsidiaries have been identified as potentially responsible parties ("PRPs"), along with other parties, in regulatory agency actions associated with hazardous waste sites. As a PRP, those former subsidiaries may be required to pay a share of the costs of the investigation and clean-up of these sites. In that event, we would be obligated to indemnify those subsidiaries for those costs. While uncertainties exist with respect to the amounts and timing of the ultimate environmental liabilities, based on currently available information, we do not currently expect that these potential liabilities, individually or in the aggregate, will have a material adverse effect on our operating results, financial condition, or cash flows. We could incur substantial additional costs, including cleanup costs, resource restoration, fines, and penalties or third-party property damage or personal injury claims, as a result of violations or liabilities under environmental laws or non-compliance with environmental permits. While environmental laws and regulations have not had a material adverse effect on our operating results, financial condition, or cash flows in the past, and we have environmental management programs in place to mitigate these risks, it is difficult to predict whether they will have a material impact in the future.
Critical Accounting Policies and Estimates
There have been no changes to our critical accounting policies and estimates from the information provided in Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," included in our Annual Report on Form 10-K for fiscal year 2022.
Dependence on Key Customers; Concentration of Credit
No single customer contributed 10% or more of our sales in the nine months ended
31
--------------------------------------------------------------------------------
Table of Contents
If a key customer fails to meet payment obligations, our operating results and financial condition could be adversely affected.
Inflation and Commodity Price Risk
We are exposed to inflationary factors such as increases in labor, supplier, logistics and overhead costs that may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses, if the selling prices of our products are not able to offset these increased costs. Additionally, inflation may potentially impact demand as consumers reduce discretionary spending. We have been impacted by changes in the prices of raw materials used in production as well as changes in oil and energy costs. In particular, the prices of commodity metals, such as copper, zinc, and lead continue to be volatile. These prices generally impact our Sporting Products Segment. See Note 5, Derivative Financial Instruments, to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more details. We have a strategic sourcing, pricing and hedging strategy to mitigate risk from commodity price fluctuation. We will continue to evaluate the need for future price changes in light of these trends, our competitive landscape, and our financial results. If our sourcing and pricing strategy is unable to offset impacts of the commodity price fluctuations, our future results from operations and cash flows would be materially impacted.
© Edgar Online, source