Delaware
|
58-1972600
|
------------------------------
|
---------------------------
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
Number)
|
PART I
|
FINANCIAL INFORMATION
|
Page
|
Item 1.
|
Financial
Statements
|
|
Condensed
Consolidated Balance Sheets - September 30,
2010
(unaudited),
December
31, 2009, and June
30, 2009 (Predecessor)
|
3
|
|
Condensed Consolidated Statements
of Operations (unaudited) -
Three months ended September 30,
2010 and 2009, and three
months ended September 30,
2009 (Predecessor)
|
4
|
|
Condensed Consolidated Statements
of Operations (unaudited) -
Nine months ended September 30,
2010 and 2009, five months
ended May 28, 2010 (Predecessor)
and nine months ended September 30,
2009
(Predecessor)
|
5
|
|
Condensed Consolidated Statements
of Cash Flows (unaudited) -
Nine months ended September 30,
2010 and 2009, five months
ended May 28, 2010 (Predecessor)
and nine months ended
September 30, 2009
(Predecessor)
|
6
|
|
Notes to Unaudited Condensed
Consolidated Financial Statements -
September 30,
2010
|
8
|
|
Item 2.
|
Management's Discussion and
Analysis of Financial Condition
and Results of
Operations
|
31
|
Item 3.
|
Quantitative and Qualitative
Disclosures about Market Risk
|
41
|
Item 4.
|
Procedures and
Controls
|
41
|
PART II
|
OTHER INFORMATION
|
|
Item 1.
|
Legal
Proceedings
|
42
|
Item 1A.
|
Risk
Factors
|
42
|
Item 6.
|
Exhibits
|
43
|
SIGNATURE
PAGE
|
44
|
|
EXHIBIT
INDEX
|
45
|
CLARUS
CORPORATION
|
||||||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||||||
(IN
THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
|
Predecessor
|
||||||||||||
Company
(Note
1)
|
||||||||||||
September
30, 2010
|
December
31, 2009
|
June
30, 2009
|
||||||||||
(Unaudited)
|
||||||||||||
Assets
|
||||||||||||
Current
Assets
|
||||||||||||
Cash
and cash equivalents
|
$ | 1,592 | $ | 58,363 | $ | 1,271 | ||||||
Marketable
securities
|
- | 24,059 | - | |||||||||
Accounts
receivable, less allowance for doubtful
|
||||||||||||
accounts
of $353, $0, and $474, respectively
|
25,304 | - | 9,727 | |||||||||
Inventories
|
33,338 | - | 25,580 | |||||||||
Prepaid
and other current assets
|
2,649 | 673 | 646 | |||||||||
Income
tax receivable
|
1,339 | |||||||||||
Deferred
income taxes
|
- | - | 1,810 | |||||||||
Total
Current Assets
|
64,222 | 83,095 | 39,034 | |||||||||
Non-Current
Assets
|
||||||||||||
Property
and equipment, net
|
14,164 | 696 | 9,781 | |||||||||
Definite
lived intangible assets, net
|
17,772 | - | 32 | |||||||||
Indefinite
lived intangible assets
|
32,650 | - | 897 | |||||||||
Goodwill
|
34,186 | - | 1,160 | |||||||||
Deferred
income taxes
|
53,246 | - | - | |||||||||
Other
long-term assets
|
702 | - | - | |||||||||
Total
Non-Current Assets
|
152,720 | 696 | 11,870 | |||||||||
TOTAL
ASSETS
|
$ | 216,942 | $ | 83,791 | $ | 50,904 | ||||||
Liabilities
and Stockholders' Equity
|
||||||||||||
Current
Liabilities
|
||||||||||||
Accounts
payable and accrued liabilities
|
$ | 17,363 | $ | 1,713 | $ | 9,884 | ||||||
Deferred
income taxes
|
1,174 | - | - | |||||||||
Current
portion of debt
|
185 | - | 2,992 | |||||||||
Total
Current Liabilities
|
18,722 | 1,713 | 12,876 | |||||||||
Non-Current
Liabilities
|
||||||||||||
Long-term
debt
|
32,741 | - | 13,398 | |||||||||
Other
long-term liabilities
|
1,341 | - | 797 | |||||||||
Deferred
income taxes
|
1,794 | - | 601 | |||||||||
Deferred
rent
|
- | 446 | - | |||||||||
TOTAL
LIABILITIES
|
54,598 | 2,159 | 27,672 | |||||||||
Stockholders'
Equity
|
||||||||||||
Preferred
stock, $.0001 par value; 5,000,000
|
||||||||||||
shares
authorized; none issued
|
- | - | - | |||||||||
Common
stock, $.0001 par value; 100,000,000
|
||||||||||||
shares
authorized; 21,813,484 shares issued
|
||||||||||||
and
21,738,484 outstanding in 2010
|
2 | 2 | - | |||||||||
Common
stock, $0.01 par value; 200,000
|
||||||||||||
shares
issued at June 30, 2009 (including 11,128
|
||||||||||||
shares
held in treasury at June 30, 2009)
|
- | - | 1 | |||||||||
Additional
paid in capital
|
398,790 | 370,994 | 2,722 | |||||||||
(Accumulated
deficit) retained earnings
|
(237,723 | ) | (289,368 | ) | 22,499 | |||||||
Treasury
stock, at cost
|
(3 | ) | (2 | ) | (2,678 | ) | ||||||
Accumulated
other comprehensive income
|
1,278 | 6 | 688 | |||||||||
TOTAL
STOCKHOLDERS' EQUITY
|
162,344 | 81,632 | 23,232 | |||||||||
TOTAL
LIABILITIES AND EQUITY
|
$ | 216,942 | $ | 83,791 | $ | 50,904 | ||||||
SEE
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS.
|
CLARUS
CORPORATION
|
||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||
(UNAUDITED)
|
||||||||||||
(IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
THREE
MONTHS ENDED
|
PREDECESSOR
COMPANY (NOTE 1)
|
|||||||||||
THREE
MONTHS
|
||||||||||||
ENDED
|
||||||||||||
September
30, 2010
|
September
30, 2009
|
September
30, 2009
|
||||||||||
Sales
|
||||||||||||
Domestic
sales
|
$ | 14,056 | $ | - | $ | 10,956 | ||||||
International
sales
|
19,890 | - | 14,599 | |||||||||
Total
sales
|
33,946 | - | 25,555 | |||||||||
Cost
of goods sold
|
24,411 | - | 15,597 | |||||||||
Gross
profit
|
9,535 | - | 9,958 | |||||||||
Operating
expenses
|
||||||||||||
Selling,
general and administrative
|
10,764 | 874 | 6,539 | |||||||||
Restructuring
charge
|
772 | - | - | |||||||||
Merger
and integration
|
88 | - | - | |||||||||
Transaction
costs
|
313 | 32 | - | |||||||||
Total
operating expenses
|
11,937 | 906 | 6,539 | |||||||||
Operating
loss
|
(2,402 | ) | (906 | ) | 3,419 | |||||||
Other
(expense) income
|
||||||||||||
Interest
expense
|
(644 | ) | - | (187 | ) | |||||||
Interest
income
|
6 | 56 | - | |||||||||
Other,
net
|
(1,586 | ) | - | 144 | ||||||||
Total
other (expense) income, net
|
(2,224 | ) | 56 | (43 | ) | |||||||
(Loss)
income before income tax
|
(4,626 | ) | (850 | ) | 3,376 | |||||||
(Benefit)
income tax provision
|
(1,332 | ) | - | 615 | ||||||||
Net
(loss) income
|
$ | (3,294 | ) | $ | (850 | ) | $ | 2,761 |
(Loss)
earnings per share attributable
|
||||||||||||
to
stockholders:
|
||||||||||||
Basic
(loss) earnings per share
|
$ | (0.15 | ) | $ | (0.05 | ) | ||||||
Diluted
(loss) earnings per share
|
$ | (0.15 | ) | $ | (0.05 | ) | ||||||
Weighted
average common shares
|
||||||||||||
outstanding
for earnings per share:
|
||||||||||||
Basic
|
21,731 | 16,867 | ||||||||||
Diluted
|
21,731 | 16,867 | ||||||||||
SEE
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS.
|
CLARUS
CORPORATION
|
||||||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
NINE
MONTHS ENDED
|
PREDECESSOR
COMPANY (NOTE 1)
|
|||||||||||||||
FIVE
MONTHS
|
NINE
MONTHS
|
|||||||||||||||
ENDED
|
ENDED
|
|||||||||||||||
September
30, 2010
|
September
30, 2009
|
May
28, 2010
|
September
30, 2009
|
|||||||||||||
Sales
|
||||||||||||||||
Domestic
sales
|
$ | 18,092 | $ | - | $ | 15,751 | $ | 27,294 | ||||||||
International
sales
|
23,598 | - | 19,192 | 34,268 | ||||||||||||
Total
sales
|
41,690 | - | 34,943 | 61,562 | ||||||||||||
Cost
of goods sold
|
30,347 | - | 21,165 | 38,728 | ||||||||||||
Gross
profit
|
11,343 | - | 13,778 | 22,834 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Selling,
general and administrative
|
18,963 | 3,004 | 12,138 | 18,989 | ||||||||||||
Restructuring
charge
|
2,149 | - | - | - | ||||||||||||
Merger
and integration
|
868 | - | - | - | ||||||||||||
Transaction
costs
|
5,075 | 32 | - | - | ||||||||||||
Total
operating expenses
|
27,055 | 3,036 | 12,138 | 18,989 | ||||||||||||
Operating
(loss) income
|
(15,712 | ) | (3,036 | ) | 1,640 | 3,845 | ||||||||||
Other
(expense) income
|
||||||||||||||||
Interest
expense
|
(980 | ) | - | (165 | ) | (813 | ) | |||||||||
Interest
income
|
45 | 664 | 3 | - | ||||||||||||
Other,
net
|
(1,474 | ) | - | 1,803 | 369 | |||||||||||
Total
other (expense) income, net
|
(2,409 | ) | 664 | 1,641 | (444 | ) | ||||||||||
(Loss)
income before income tax
|
(18,121 | ) | (2,372 | ) | 3,281 | 3,401 | ||||||||||
(Benefit)
income tax provision
|
(69,765 | ) | - | 966 | 624 | |||||||||||
Net
income (loss)
|
$ | 51,644 | $ | (2,372 | ) | $ | 2,315 | $ | 2,777 |
(Loss)
earnings per share attributable
|
||||||||||||||||
to
stockholders:
|
||||||||||||||||
Basic
(loss) earnings per share
|
$ | 2.71 | $ | (0.14 | ) | |||||||||||
Diluted
(loss) earnings per share
|
$ | 2.67 | $ | (0.14 | ) | |||||||||||
Weighted
average common shares
|
||||||||||||||||
outstanding
for earnings per share:
|
||||||||||||||||
Basic
|
19,092 | 16,867 | ||||||||||||||
Diluted
|
19,339 | 16,867 | ||||||||||||||
SEE
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS.
|
CLARUS
CORPORATION
|
||||||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(IN
THOUSANDS)
|
NINE
MONTHS ENDED
|
PREDECESSOR
COMPANY (NOTE 1)
|
|||||||||||||||
FIVE
MONTHS
|
NINE
MONTHS
|
|||||||||||||||
ENDED
|
ENDED
|
|||||||||||||||
September
30, 2010
|
September
30, 2009
|
May
28, 2010
|
September
30, 2009
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net
income (loss)
|
$ | 51,644 | $ | (2,372 | ) | $ | 2,315 | $ | 2,777 | |||||||
Adjustments
to reconcile net income (loss) to net cash (used in) provided by
operating activities:
|
||||||||||||||||
Depreciation
on property and equipment
|
1,170 | 260 | 865 | 1,684 | ||||||||||||
Amortization
of intangible assets
|
444 | - | 2 | - | ||||||||||||
Accretion
of notes payable
|
336 | - | 17 | 10 | ||||||||||||
Loss
on disposition of assets
|
597 | - | 1 | 2 | ||||||||||||
Amortization
of equity and stock based compensation plans
|
4,423 | 371 | 375 | 44 | ||||||||||||
Amortization
of discount on securities, net
|
- | (452 | ) | - | - | |||||||||||
Tax
benefit related to stock issued as deferred compensation
|
- | - | - | 53 | ||||||||||||
Treasury
stock issued as director compensation
|
- | - | - | 13 | ||||||||||||
Deferred
income taxes
|
(70,354 | ) | - | (166 | ) | 85 | ||||||||||
Changes
in operating assets and liablities, net of acquisitions:
|
||||||||||||||||
(Increase)/decrease
in accounts receivable
|
(9,504 | ) | - | 4,063 | (6,111 | ) | ||||||||||
Increase
in inventory
|
(1,498 | ) | - | (343 | ) | (1,575 | ) | |||||||||
(Increase)/decrease
in interest receivable, prepaid and other current assets
|
71 | (53 | ) | (1,387 | ) | 1,347 | ||||||||||
Increase/(decrease)
in accounts payable and accrued liabilities
|
2,488 | (64 | ) | 1,670 | (73 | ) | ||||||||||
(Decrease)/increase
in deferred rent
|
(446 | ) | 24 | - | - | |||||||||||
NET
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
|
(20,629 | ) | (2,286 | ) | 7,412 | (1,744 | ) | |||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Purchase
of marketable securities
|
(22,065 | ) | (30,892 | ) | - | - | ||||||||||
Proceeds
from maturity and sales of marketable securities
|
46,124 | 72,698 | - | - | ||||||||||||
Purchase
of businesses, net of cash received
|
(82,560 | ) | - | - | - | |||||||||||
Purchase
of intangible assets
|
- | - | (10 | ) | - | |||||||||||
Proceeds
from disposition of property and equipment
|
- | - | 10 | 12 | ||||||||||||
Purchase
of property and equipment
|
(761 | ) | (6 | ) | (788 | ) | (2,597 | ) | ||||||||
NET
CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES
|
(59,262 | ) | 41,800 | (788 | ) | (2,585 | ) | |||||||||
CLARUS
CORPORATION
|
||||||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(IN
THOUSANDS)
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Repayment
of long-term debt, revolving lines of credit and capital
leases
|
(5,064 | ) | - | (6,261 | ) | (128 | ) | |||||||||
Proceeds
from long-term debt, revolving lines of credit and capital
leases
|
24,162 | - | - | 3,977 | ||||||||||||
Purchase
of treasury stock
|
- | - | - | (1,374 | ) | |||||||||||
Proceeds
from sales of treasury stock and exercise of stock options
|
1,005 | - | - | 2,162 | ||||||||||||
Proceeds
from the sale of stock
|
2,903 | - | - | - | ||||||||||||
Dividends
paid
|
- | - | - | (225 | ) | |||||||||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
23,006 | - | (6,261 | ) | 4,412 | |||||||||||
Effect
of foreign exchange rates on cash
|
114 | - | (60 | ) | (58 | ) | ||||||||||
CHANGE
IN CASH AND CASH EQUIVALENTS
|
(56,771 | ) | 39,514 | 303 | 25 | |||||||||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
58,363 | 19,342 | 1,317 | 2,126 | ||||||||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$ | 1,592 | $ | 58,856 | $ | 1,620 | $ | 2,151 | ||||||||
SUPPLEMENTAL
DISCLOSURE:
|
||||||||||||||||
Cash
paid for income taxes
|
$ | 1,573 | $ | - | $ | 596 | $ | 936 | ||||||||
Cash
paid for interest
|
$ | 554 | $ | - | $ | 183 | $ | 784 | ||||||||
Note
payable to acquire intangible asset
|
$ | - | $ | - | $ | - | $ | 897 | ||||||||
Stock
issued for acquisition
|
$ | 19,465 | $ | - | $ | - | $ | - | ||||||||
Notes
and deferred compensation issued in acquisition
|
$ | 13,436 | $ | - | $ | - | $ | - | ||||||||
SEE
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS.
|
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
|
·
|
Create
a unique platform to build a large, global and diversified outdoor
equipment and lifestyle company, which seeks to be strengthened from both
organic and acquisition growth;
|
|
·
|
Access
to ample liquidity to fuel brand penetration and
expansion;
|
|
·
|
Utilization
of a significant portion of its deferred tax
asset;
|
|
·
|
Preservation
of an organization and culture with a strong foundation with greater
resources and opportunities;
|
|
·
|
Ability
to better utilize existing supply chain and distribution
channels;
|
|
·
|
Greater
combined global revenue balance;
and
|
|
·
|
Improved
efficiencies by combining certain operational
functions.
|
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
BDE
|
GMP
|
|||||||||||||||
Estimated
Fair Value
|
Number
of Shares
|
Estimated
Fair Value
|
Estimated Fair
Value
|
|||||||||||||
Cash
paid to BDE and GMP
|
$ | 85,675 | - | $ | 185 | $ | 85,860 | |||||||||
Issuance
to GMP of shares of Clarus
|
- | 3,676 | 19,373 | 19,373 | ||||||||||||
Issuance
to GMP of 5% subordinated notes
|
- | - | 13,120 | 13,120 | ||||||||||||
Issuance
of additional shares of Clarus
|
- | 31 | 92 | 92 | ||||||||||||
Payment
of deferred compensation (5% notes)
|
- | - | 316 | 316 | ||||||||||||
Total
estimated purchase consideration
|
$ | 85,675 | 3,707 | $ | 33,086 | $ | 118,761 | |||||||||
Assets
Acquired and Liabilities Assumed
|
||||||||||||||||
Assets
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 1,854 | $ | 1,446 | $ | 3,300 | ||||||||||
Accounts
receivable, net
|
12,393 | 3,053 | 15,445 | |||||||||||||
Inventories
|
26,079 | 4,390 | 30,469 | |||||||||||||
Prepaid
and other current assets
|
2,161 | 148 | 2,309 | |||||||||||||
Property
and equipment
|
13,687 | 693 | 14,380 | |||||||||||||
Amortizable
definite lived intangible assets
|
12,733 | 5,483 | 18,216 | |||||||||||||
Identifiable
indefinite lived intangible assets
|
19,600 | 13,050 | 32,650 | |||||||||||||
Goodwill
|
21,583 | 12,603 | 34,186 | |||||||||||||
Deferred
income taxes
|
920 | 65 | 985 | |||||||||||||
Other
long-term assets
|
345 | 133 | 478 | |||||||||||||
Total
Assets
|
111,355 | 41,064 | 152,419 | |||||||||||||
Liabilities
|
||||||||||||||||
Accounts
payable and accrued liabilities
|
8,077 | 3,058 | 11,135 | |||||||||||||
Current
portion of debt
|
200 | - | 200 | |||||||||||||
Long-term
debt
|
245 | - | 245 | |||||||||||||
Other
long-term liabilities
|
1,030 | - | 1,030 | |||||||||||||
Deferred
income taxes
|
16,128 | 4,920 | 21,048 | |||||||||||||
Total
Liabilities
|
25,680 | 7,978 | 33,658 | |||||||||||||
Net
book value acquired
|
$ | 85,675 | $ | 33,086 | $ | 118,761 |
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
PRO
FORMA
|
||||||||||||
THREE
MONTHS ENDED
|
NINE
MONTHS ENDED
|
|||||||||||
September
30, 2009
|
September
30, 2010
|
September
30, 2009
|
||||||||||
Sales
|
$ | 30,942 | $ | 90,794 | $ | 83,385 | ||||||
Net
(loss)/income
|
$ | 1,594 | $ | 54,532 | $ | 1,627 | ||||||
Net
(loss)/income per share - basic
|
$ | 0.09 | $ | 2.86 | $ | 0.10 | ||||||
Net
(loss)/income per share - diluted
|
$ | 0.09 | $ | 2.82 | $ | 0.10 |
Predecessor
|
||||||||||||
Company
|
||||||||||||
September
30, 2010
|
December
31, 2009
|
June
30, 2009
|
||||||||||
Finished
goods
|
$ | 27,695 | $ | - | $ | 20,404 | ||||||
Work-in-process
|
829 | - | 465 | |||||||||
Raw
materials and supplies
|
4,814 | - | 4,711 | |||||||||
Total
Inventory
|
$ | 33,338 | $ | - | $ | 25,580 |
Predecessor
|
||||||||||||
Company
|
||||||||||||
September
30, 2010
|
December
31, 2009
|
June
30, 2009
|
||||||||||
Land
|
$ | 2,850 | $ | - | $ | 336 | ||||||
Building and
improvements
|
2,687 | 1,894 | 4,279 | |||||||||
Furniture and
fixtures
|
1,581 | 453 | 2,177 | |||||||||
Computer hardware and
software
|
1,964 | 120 | 3,620 | |||||||||
Machinery and
equipment
|
5,520 | 144 | 8,662 | |||||||||
Construction in
progress
|
784 | - | 725 | |||||||||
Total
Property & Equipment
|
$ | 15,386 | $ | 2,611 | $ | 19,799 | ||||||
Less
accumulated depreciation
|
(1,222 | ) | (1,915 | ) | (10,018 | ) | ||||||
Property
and equipment, net
|
$ | 14,164 | $ | 696 | $ | 9,781 |
September
30, 2010
|
||||||||||||||||
Accumulated
|
Weighted
Average
|
|||||||||||||||
Gross
|
Amortization
|
Net
|
Useful
Life
|
|||||||||||||
Intangibles
subject to amortization
|
||||||||||||||||
Customer
relationships
|
$ | 16,376 | $ | (365 | ) | $ | 16,011 | 15.1 |
years
|
|||||||
Core
technologies
|
1,505 | (55 | ) | 1,450 | 9.3 |
years
|
||||||||||
Product
technologies
|
335 | (24 | ) | 311 | 4.6 |
years
|
||||||||||
Intangibles
not subject to amortization
|
||||||||||||||||
Tradenames
and trademarks
|
32,650 | - | 32,650 | N/A | ||||||||||||
Intangibles,
net
|
$ | 50,866 | $ | (444 | ) | $ | 50,422 | $ | 14.4 |
years
|
Predecessor
Company
|
|||||||||||||||
June
30, 2009
|
|||||||||||||||
Accumulated
|
Weighted
Average
|
||||||||||||||
Gross
|
Amortization
|
Net
|
Useful
Life
|
||||||||||||
Intangibles
subject to amortization
|
|||||||||||||||
Product
technologies
|
$ | 68 | $ | (36 | ) | $ | 32 | 14.1 |
years
|
||||||
Intangibles
not subject to amortization
|
|||||||||||||||
Tradenames
and trademarks
|
897 | - | 897 | N/A | |||||||||||
Intangibles,
net
|
$ | 965 | $ | (36 | ) | $ | 929 | $ | 14.1 |
years
|
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
Predecessor
|
||||||||||||
Company
|
||||||||||||
September
30, 2010
|
December
31, 2009
|
June
30, 2009
|
||||||||||
Revolving
credit facility (a)
|
$ | 19,163 | $ | - | $ | 12,669 | ||||||
5%
Senior Subordinated Notes due 2017 (b)
|
13,382 | - | - | |||||||||
Revolving
line of credit (c )
|
- | - | 2,763 | |||||||||
Note
payable to government agency (d)
|
- | - | 345 | |||||||||
Capital
leases (e)
|
381 | - | 613 | |||||||||
Total
|
32,926 | - | 16,390 | |||||||||
Less
current portion
|
(185 | ) | (2,992 | ) | ||||||||
Total
long term debt obligations
|
$ | 32,741 | $ | - | $ | 13,398 |
(a)
|
In
connection with the closing of the acquisition of BDE, the
Company entered into a loan agreement effective May 28,
2010 among Zions First National Bank, a national banking
association (“Lender”) and the Company and its direct and indirect
subsidiaries, BDE, Black Diamond Retail, Inc. (“BD-Retail”), and
Purchaser, as co-borrowers (the “Borrowers”) (the “Loan
Agreement”). Concurrently with the closing of the acquisition
of BDE, Gregory Mountain Products, LLC, as the surviving company of the
Gregory Merger, entered into an assumption agreement and became an
additional Borrower under the Loan
Agreement.
|
(b)
|
In
connection with the Gregory Merger, $22,056 in subordinated notes was
issued. The notes have a seven year term, 5% stated interest
rate payable quarterly, and are prepayable at any time. Given
the below market interest rate for comparably secured notes and the
relative illiquidity of the notes, we have discounted it to $13,127 at
date of acquisition.
|
(c)
|
Unsecured
revolving line of credit with a bank with a maximum availability of
$3,685, interest at 2.0%. This revolving line of credit was paid off on
May 28, 2010.
|
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
(d)
|
Note
payable to a government agency which bears interest at 6.345%, requires
monthly installments of $5,409, and secured by real property and certain
equipment. This note was guaranteed by an executive officer and
was paid in full in December 2009.
|
(e)
|
Various
capital leases payable to banks: interest rates ranging from
4.63% to 7.75%; monthly installments ranging from $1 to $5; ending between
October 2010 and April 2014; secured by certain
equipment.
|
Maturities
of long term debt are as follows:
|
||||
Remainder
of 2010
|
$ | - | ||
2011
|
- | |||
2012
|
- | |||
2013
|
19,163 | |||
2014
|
- | |||
Thereafter
|
13,382 | |||
$ | 32,545 |
Remainder
of 2010
|
$ | 82 | ||
2011
|
174 | |||
2012
|
92 | |||
2013
|
47 | |||
2014
|
16 | |||
Thereafter
|
- | |||
Total
Future minimum lease payments
|
411 | |||
Less
amount representing interest
|
(30 | ) | ||
Present
value of net minimum lease payments
|
381 | |||
Less
current portion
|
(185 | ) | ||
Long-term
capial lease obligations
|
$ | 196 |
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
Predecessor
|
||||||||||||
Company
|
||||||||||||
September
30,
2010
|
December
31,
2009
|
June
30,
2009
|
||||||||||
Trademark
payable
|
$ | 697 | $ | - | $ | 797 | ||||||
GMP
deferred compensation
|
385 | - | - | |||||||||
BDAG
pension liability
|
409 | - | - | |||||||||
Total
|
1,491 | - | 797 | |||||||||
Less
current portion
|
(150 | ) | - | - | ||||||||
Total
Other Long-Term Liabilities
|
$ | 1,341 | $ | - | $ | 797 |
Remainder
of 2010
|
$ | - | ||
2011
|
150 | |||
2012
|
600 | |||
$ | 750 |
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
September
30, 2010
|
|||||
Notional
|
Latest
|
||||
Amount
|
Maturity
|
||||
Foreign
exchange contracts - Norwegian Kroners
|
$ | 2,348 |
November-10
|
||
Foreign
exchange contracts - Euros
|
2,634 |
November-10
|
|||
Foreign
exchange contracts - British Pounds
|
282 |
November-10
|
|||
Foreign
exchange contracts - Swiss Francs
|
3,750 |
November-10
|
|||
Foreign
exchange contracts - Canadian Dollars
|
1,578 |
November-10
|
|||
Predecessor
Company
|
|||||
June
30, 2009
|
|||||
Notional
|
Latest
|
||||
Amount
|
Maturity
|
||||
Foreign
exchange contracts - Euros
|
$ | 2,500 |
October-09
|
||
Foreign
exchange contracts - Swiss Francs
|
750 |
November-09
|
|||
Non-deliverable
contracts - Chinese Yuans
|
25,300 |
February-10
|
September
30, 2010
|
|||||
Notional
|
Latest
|
||||
Amount
|
Maturity
|
||||
Foreign
exchange contracts - Norwegian Kroners
|
$ | 1,026 |
January-11
|
||
Foreign
exchange contracts - British Pounds
|
527 |
May-11
|
|||
Foreign
exchange contracts - Canadian Dollars
|
4,754 |
June-11
|
|||
Foreign
exchange contracts - Euros
|
10,472 |
December-11
|
|||
Foreign
exchange contracts - Swiss Francs
|
17,835 |
February-12
|
|||
Predecessor
Company
|
|||||
June
30, 2009
|
|||||
Notional
|
Latest
|
||||
Amount
|
Maturity
|
||||
Foreign
exchange contracts - Norwegian Kroners
|
2,244 |
December-09
|
|||
Foreign
exchange contracts - Euros
|
8,736 |
June-10
|
|||
Foreign
exchange contracts - British Pounds
|
922 |
June-10
|
|||
Foreign
exchange contracts - Swiss Francs
|
7,300 |
June-10
|
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
September
30, 2010
|
||||||||||||||||
Level
1
|
Level
2
|
Level
3
|
Total
|
|||||||||||||
Financial
Assets:
|
||||||||||||||||
Forward
exchange contracts
|
$ | - | $ | 1,098 | $ | - | $ | 1,098 | ||||||||
Total
financial assets
|
$ | - | $ | 1,098 | $ | - | $ | 1,098 | ||||||||
Financial
Liabilities
|
||||||||||||||||
Forward
exchange contracts
|
$ | - | $ | 803 | $ | - | $ | 803 | ||||||||
Total
financial liabilities
|
$ | - | $ | 803 | $ | - | $ | 803 | ||||||||
December
31, 2009
|
||||||||||||||||
Level
1
|
Level
2
|
Level
3
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Cash
equivalents
|
$ | 58,363 | $ | - | $ | - | $ | 58,363 | ||||||||
Marketable
securities
|
24,059 | - | - | 24,059 | ||||||||||||
Total
assets
|
$ | 82,422 | $ | - | $ | - | $ | 82,422 | ||||||||
Predecessor Company
June
30, 2009
|
||||||||||||||||
Level
1
|
Level
2
|
Level
3
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Cash
equivalents
|
$ | 395 | $ | - | $ | - | $ | 395 | ||||||||
Forward
exchange contracts
|
- | 57 | - | 57 | ||||||||||||
Total
assets
|
$ | 395 | $ | 57 | $ | - | $ | 452 | ||||||||
Liabilities
|
||||||||||||||||
Forward
interest rate swap
|
$ | - | $ | - | $ | 201 | $ | 201 | ||||||||
Forward
exchange contracts
|
- | 593 | - | 593 | ||||||||||||
Total
liabilities
|
$ | - | $ | 593 | $ | 201 | $ | 794 |
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
THREE
MONTHS ENDED
|
NINE
MONTHS ENDED
|
|||||||||||||||
September
30, 2010
|
September
30, 2009
|
September
30, 2010
|
September
30, 2009
|
|||||||||||||
BASIC
EARNINGS (LOSS) PER SHARE CALCULATION:
|
||||||||||||||||
Net
income (loss)
|
$ | (3,294 | ) | $ | (850 | ) | $ | 51,644 | $ | (2,372 | ) | |||||
Weighted
average common shares - basic
|
21,731 | 16,867 | 19,092 | 16,867 | ||||||||||||
Basic
net income (loss) per share
|
$ | (0.15 | ) | $ | (0.05 | ) | $ | 2.71 | $ | (0.14 | ) | |||||
DILUTED
EARNINGS (LOSS) PER SHARE CALCULATION:
|
||||||||||||||||
Net
income (loss)
|
$ | (3,294 | ) | $ | (850 | ) | $ | 51,644 | $ | (2,372 | ) | |||||
Weighted
average common shares - basic
|
21,731 | 16,867 | 19,092 | 16,867 | ||||||||||||
Effect
of dilutive stock options
|
- | - | 36 | - | ||||||||||||
Effect
of dilutive restricted stock and restricted stock units
|
- | - | 211 | - | ||||||||||||
Weighted
average common shares - diluted
|
21,731 | 16,867 | 19,339 | 16,867 | ||||||||||||
Diluted
net income (loss) per share
|
$ | (0.15 | ) | $ | (0.05 | ) | $ | 2.67 | $ | (0.14 | ) |
Options
Granted During Nine Months Ended September 30, 2010
|
||||||
Number
of Options
|
60,000
|
40,000
|
490,000
|
|||
Option
Vesting Period
|
Immediate
|
Immediate
|
4.5
Years
|
|||
Grant
Price
|
$6.85
|
$6.85
|
$6.25
- $6.85
|
|||
Dividend
Yield
|
0.00%
|
0.00%
|
0.00%
|
|||
Expected
Volatility (a)
|
54.60%
|
71.70%
|
54.1%
- 55.1%
|
|||
Risk-free
Interest Rate
|
2.10%
|
0.34%
|
2.09%
- 2.75%
|
|||
Expected
Life (Years)
|
5
|
1.29
|
6.45
|
|||
Weighted
Average Fair Value
|
$3.33
|
$2.18
|
$3.39
- $3.82
|
|||
Aggregate
Fair Value
|
$200
|
$87
|
$1,862
|
(a)
|
Since
BDE’s historical volatility was not representative of the business going
in the future, therefore, BDE’s historical volatility was based on the
historical volatility of a peer group of companies within similar
industries and similar size as BDE.
|
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
Restricted
Stock Granted on May 28, 2010
|
||||||
Number
issued
|
250,000
|
250,000
|
||||
Vesting
Period
|
$10.00
Stock Price target
|
$12.00
Stock Price target
|
||||
Grant
Price
|
$6.85
|
$6.85
|
||||
Dividend
Yield
|
0.00%
|
0.00%
|
||||
Expected
Volatility (a)
|
56.60%
|
56.60%
|
||||
Risk-free
Interest Rate
|
2.88%
|
2.88%
|
||||
Expected
Life (Years)
|
1.12
|
1.62
|
||||
Weighted
Average Fair Value
|
$6.13
|
$5.83
|
||||
Aggregate
Fair Value
|
$1,533
|
$1,457
|
(a)
|
Since
BDE’s historical volatility was not representative of the ongoing future
business, accordingly, BDE’s historical volatility was based on the
historical volatility of a peer group of companies within similar
industries and similar size as BDE.
|
THREE
MONTHS ENDED
|
PREDECESSOR
COMPANY
(NOTE
1)
|
||||||||||||
THREE
MONTHS
|
|||||||||||||
ENDED
|
|||||||||||||
September
30, 2010
|
September
30, 2009
|
September
30, 2009
|
|||||||||||
Restricted
stock/deferred compensation
|
$ | 572 | $ | 67 | $ | (4 | ) | ||||||
Stock
options
|
151 | (38 | ) | 24 | |||||||||
Total
|
$ | 723 | $ | 29 | $ | 20 |
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
NINE
MONTHS ENDED
|
PREDECESSOR
COMPANY (NOTE 1)
|
|||||||||||||||
FIVE
MONTHS
|
NINE
MONTHS
|
|||||||||||||||
ENDED
|
ENDED
|
|||||||||||||||
September
30, 2010
|
September
30, 2009
|
May
28, 2010
|
September
30, 2009
|
|||||||||||||
Restricted
stock/deferred compensation
|
$ | 1,721 | $ | 201 | $ | 15 | $ | 4 | ||||||||
Restricted
stock units
|
683 | - | - | - | ||||||||||||
Stock
options
|
1,874 | 170 | 360 | 40 | ||||||||||||
Stock
subscription expense (see Note 15)
|
145 | - | - | - | ||||||||||||
Total
|
$ | 4,423 | $ | 371 | $ | 375 | $ | 44 |
Options
|
Weighted
Average Exercise Price
|
Restricted
Stock
|
Restricted
Stock Units
|
|||||||||||||
Outstanding
at December 31, 2009
|
1,968,750 | $ | 7.01 | 500,000 | - | |||||||||||
Granted
|
590,000 | 6.83 | 500,000 | 92,401 | ||||||||||||
Exercised
|
(181,250 | ) | 5.55 | (500,000 | ) | - | ||||||||||
Forfeited
|
- | |||||||||||||||
Outstanding
at September 30, 2010
|
2,377,500 | $ | 7.08 | 500,000 | 92,401 | |||||||||||
Options
exercisable at September 30, 2010
|
1,887,500 | $ | 7.15 |
Exercise
Price Range
|
Outstanding
|
Exercisable
|
Remaining
Life In Years
|
Weighted
Average Exercise Price
|
||||||||||||||
$3.85
- $5.33
|
162,500 | 162,500 | 3.2 | $ | 4.39 | |||||||||||||
$5.34
- $10.00
|
2,215,000 | 1,725,000 | 4.0 | $ | 7.40 | |||||||||||||
2,377,500 | 1,887,500 | 3.6 | $ | 7.15 |
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
THREE
MONTHS ENDED
|
PREDECESSOR
COMPANY
(NOTE
1)
|
|||||||||||
THREE
MONTHS
|
||||||||||||
ENDED
|
||||||||||||
September
30, 2010
|
September
30, 2009
|
September
30, 2009
|
||||||||||
Net
income/(loss)
|
$ | (3,294 | ) | $ | (850 | ) | $ | 2,761 | ||||
Unrealized
gain/(loss) on marketable securities
|
- | 4 | - | |||||||||
Decrease
in hedge foreign exchange contact
|
(205 | ) | - | - | ||||||||
Total
|
$ | (3,499 | ) | $ | (846 | ) | $ | 2,761 |
NINE
MONTHS ENDED
|
PREDECESSOR
COMPANY (NOTE 1)
|
|||||||||||||||
FIVE
MONTHS
|
NINE
MONTHS
|
|||||||||||||||
ENDED
|
ENDED
|
|||||||||||||||
September
30, 2010
|
September
30, 2009
|
May
28, 2010
|
September
30, 2009
|
|||||||||||||
Net
income/(loss)
|
$ | 51,644 | $ | (2,372 | ) | $ | 2,315 | $ | 2,777 | |||||||
Unrealized
gain/(loss) on marketable securities
|
(6 | ) | (395 | ) | - | - | ||||||||||
Decrease
in hedge foreign exchange contact
|
(205 | ) | - | - | (461 | ) | ||||||||||
Total
|
$ | 51,433 | $ | (2,767 | ) | $ | 2,315 | $ | 2,316 |
Remainder of
2010
|
$ | 326 | ||
2011
|
1,100 | |||
2012
|
766 | |||
2013
|
506 | |||
2014
|
39 | |||
Thereafter
|
66 | |||
Total operating lease
payments
|
$ | 2,803 |
CLARUS
CORPORATION
|
||||||||||||||||
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -
CONTINUED
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
(in
thousands, except share and per share amounts)
|
Expiration
Dates
December
31,
|
Net
Operating
Loss Amount
|
|||
2010
|
$ | 7,417 | ||
2011
|
7,520 | |||
2012
|
5,157 | |||
2020
|
29,533 | |||
2021
|
50,430 | |||
2022
|
115,000 | |||
2023
|
5,712 | |||
2024
|
3,566 | |||
2025
|
1,707 | |||
2026
|
476 | |||
2028
|
1,360 | |||
2029
|
4,074 | |||
2030
|
12,102 | |||
Total
|
244,054 | |||
Section
382 Limitation
|
(2,037 | ) | ||
After
Limitations
|
$ | 242,017 |
|
-
|
The Company uses derivative
instruments to hedge currency rate movements on foreign currency
denominated assets, liabilities and cash flows. The Company
enters into forward contracts, option contracts and non-deliverable
forwards to manage the impact of foreign currency fluctuations on a
portion of its forecasted foreign currency
exposure. These derivatives are carried at fair value on
the Company’s condensed consolidated balance sheets in other assets and
accrued liabilities. Changes in fair value of the derivatives
not designated as hedge instruments are included in the determination of
net income. For derivative contracts designated as hedge
instruments, the effective portion of gains and losses resulting from
changes in fair value of the instruments are included in accumulated other
comprehensive income and reclassified to earnings in the period the
underlying hedged item is recognized in earnings. The Company
uses operating budgets and cash flow forecasts to estimate future economic
exposure and to determine the level and timing of derivative transactions
intended to mitigate such exposures in accordance with its risk management
policies.
|
|
-
|
The
Company sells its products pursuant to customer orders or sales contracts
entered into with its customers. Revenue is recognized when title and risk
of loss pass to the customer and when collectability is reasonably
assured. Charges for shipping and handling fees are included in net sales
and the corresponding shipping and handling expenses are included in cost
of sales in the accompanying condensed consolidated statements of
operations.
|
|
-
|
The
Company accounts for income taxes using the asset and liability method.
The asset and liability method provides that deferred tax assets and
liabilities are recognized for the expected future tax consequences of
temporary differences between the financial reporting and tax bases of
assets and liabilities, and for operating loss and tax credit
carryforwards. Deferred tax assets and liabilities are measured using the
currently enacted tax rates and laws that will be in effect when the
differences are expected to reverse. A valuation allowance is recorded for
those deferred tax assets for which it is not more likely than not that
realization will occur.
|
|
-
|
The
Company records compensation expense for all share-based awards granted
based on the fair value of the award at the time of the
grant. The fair value of each option award is estimated on the
date of grant using the Black-Scholes option pricing model that uses
assumptions and estimates that the Company believes are
reasonable. The Company recognizes the cost of the share-based
awards on a straight-line basis over the requisite service period of the
award.
|
THREE
MONTHS
|
THREE
MONTHS
|
|||||||||||||||
ENDED
|
ENDED
|
|||||||||||||||
Predecessor
|
||||||||||||||||
Consolidated
|
Company
|
Combined
|
||||||||||||||
September
30, 2010
|
September
30, 2009
|
September
30, 2009
|
September
30, 2009
|
|||||||||||||
Sales
|
||||||||||||||||
Domestic
sales
|
$ | 14,056 | $ | - | $ | 10,956 | $ | 10,956 | ||||||||
International
sales
|
19,890 | - | 14,599 | 14,599 | ||||||||||||
Total
sales
|
33,946 | - | 25,555 | 25,555 | ||||||||||||
Cost
of goods sold
|
24,411 | - | 15,597 | 15,597 | ||||||||||||
Gross
profit
|
9,535 | - | 9,958 | 9,958 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Selling,
general and administrative
|
10,764 | 874 | 6,539 | 7,413 | ||||||||||||
Restructuring
charge
|
772 | - | - | - | ||||||||||||
Merger
and integration
|
88 | - | - | - | ||||||||||||
Transaction
costs
|
313 | 32 | - | 32 | ||||||||||||
Total
operating expenses
|
11,937 | 906 | 6,539 | 7,445 | ||||||||||||
Operating
income (loss)
|
(2,402 | ) | (906 | ) | 3,419 | 2,513 | ||||||||||
Other
(expense) income
|
||||||||||||||||
Interest
expense
|
(644 | ) | - | (187 | ) | (187 | ) | |||||||||
Interest
income
|
6 | 56 | - | 56 | ||||||||||||
Other,
net
|
(1,586 | ) | - | 144 | 144 | |||||||||||
Total
other (expense) income, net
|
(2,224 | ) | 56 | (43 | ) | 13 | ||||||||||
(Loss)
income before income tax
|
(4,626 | ) | (850 | ) | 3,376 | 2,526 | ||||||||||
(Benefit)
income tax provision
|
(1,332 | ) | - | 615 | 615 | |||||||||||
Net
(loss) income
|
$ | (3,294 | ) | $ | (850 | ) | $ | 2,761 | $ | 1,911 |
NINE
MONTHS
|
FIVE
MONTHS
|
NINE
MONTHS
|
NINE
MONTHS
|
|||||||||||||||||||||
ENDED
|
ENDED
|
ENDED
|
ENDED
|
|||||||||||||||||||||
Predecessor
|
Predecessor
|
|||||||||||||||||||||||
Company
|
Combined
|
Company
|
Combined
|
|||||||||||||||||||||
September
30, 2010
|
May
28, 2010
|
September
30, 2010
|
September
30, 2009
|
September
30, 2009
|
September
30, 2009
|
|||||||||||||||||||
Sales
|
||||||||||||||||||||||||
Domestic
sales
|
$ | 18,092 | $ | 15,751 | $ | 33,843 | $ | - | $ | 27,294 | $ | 27,294 | ||||||||||||
International
sales
|
23,598 | 19,192 | 42,790 | - | 34,268 | 34,268 | ||||||||||||||||||
Total
sales
|
41,690 | 34,943 | 76,633 | - | 61,562 | 61,562 | ||||||||||||||||||
Cost
of goods sold
|
30,347 | 21,165 | 51,512 | - | 38,728 | 38,728 | ||||||||||||||||||
Gross
profit
|
11,343 | 13,778 | 25,121 | - | 22,834 | 22,834 | ||||||||||||||||||
Operating
expenses
|
||||||||||||||||||||||||
Selling,
general and administrative
|
18,963 | 12,138 | 31,101 | 3,004 | 18,989 | 21,993 | ||||||||||||||||||
Restructuring
charge
|
2,149 | - | 2,149 | - | - | - | ||||||||||||||||||
Merger
and integration
|
868 | - | 868 | - | - | - | ||||||||||||||||||
Transaction
costs
|
5,075 | - | 5,075 | 32 | - | 32 | ||||||||||||||||||
Total
operating expenses
|
27,055 | 12,138 | 39,193 | 3,036 | 18,989 | 22,025 | ||||||||||||||||||
Operating
income (loss)
|
(15,712 | ) | 1,640 | (14,072 | ) | (3,036 | ) | 3,845 | 809 | |||||||||||||||
Other
(expense) income
|
||||||||||||||||||||||||
Interest
expense
|
(980 | ) | (165 | ) | (1,145 | ) | - | (813 | ) | (813 | ) | |||||||||||||
Interest
income
|
45 | 3 | 48 | 664 | - | 664 | ||||||||||||||||||
Other,
net
|
(1,474 | ) | 1,803 | 329 | - | 369 | 369 | |||||||||||||||||
Total
other (expense) income, net
|
(2,409 | ) | 1,641 | (768 | ) | 664 | (444 | ) | 220 | |||||||||||||||
(Loss)
income before income tax
|
(18,121 | ) | 3,281 | (14,840 | ) | (2,372 | ) | 3,401 | 1,029 | |||||||||||||||
(Benefit)
income tax provision
|
(69,765 | ) | 966 | (68,799 | ) | - | 624 | 624 | ||||||||||||||||
Net
income (loss)
|
$ | 51,644 | $ | 2,315 | $ | 53,959 | $ | (2,372 | ) | $ | 2,777 | $ | 405 |
NINE
MONTHS
|
FIVE
MONTHS
|
NINE
MONTHS
|
NINE
MONTHS ENDED
|
|||||||||||||||||||||
ENDED
|
ENDED
|
ENDED
|
||||||||||||||||||||||
Predecessor
|
Predecessor
|
|||||||||||||||||||||||
Company
|
Combined
|
Company
|
Combined
|
|||||||||||||||||||||
September
30, 2010
|
May
28, 2010
|
September
30, 2010
|
September
30, 2009
|
September
30, 2009
|
September
30, 2009
|
|||||||||||||||||||
Net
cash (used in) provided by operating activities
|
$ | (20,629 | ) | $ | 7,412 | $ | (13,217 | ) | $ | (2,286 | ) | $ | (1,744 | ) | $ | (4,030 | ) | |||||||
Net
cash (used in) provided by investing activities
|
(59,262 | ) | (788 | ) | (60,050 | ) | 41,800 | (2,585 | ) | 39,215 | ||||||||||||||
Net
cash provided by (used in) financing activities
|
23,006 | (6,261 | ) | 16,745 | - | 4,412 | 4,412 | |||||||||||||||||
Effect
of foreign exchange rates on cash
|
114 | (60 | ) | 54 | - | (58 | ) | (58 | ) | |||||||||||||||
Change
in cash and cash equivalents
|
(56,771 | ) | 303 | (56,468 | ) | 39,514 | 25 | 39,539 | ||||||||||||||||
Cash
and cash equivalents, beginning of period
|
58,363 | 1,317 | 59,680 | 19,342 | 2,126 | 21,468 | ||||||||||||||||||
Cash
and cash equivalents, end of period
|
$ | 1,592 | $ | 1,620 | $ | 3,212 | $ | 58,856 | $ | 2,151 | $ | 61,007 |
Exhibit
|
Description
|
10.1
|
Amendment
No. 1 to Clarus Corporation 2005 Stock Incentive Plan (incorporated herein
by reference to Exhibit 10.1 of the Current Report on Form 8-K dated
September 1, 2010, filed by Clarus Corporation on September 7,
2010).
|
10.2
|
Amendment
No. 1 to Transition Agreement, dated September 1, 2010, between Clarus
Corporation and Kanders & Company, Inc. (incorporated herein by
reference to Exhibit 10.1 of the Current Report on Form 8-K dated
September 1, 2010, filed by Clarus Corporation on September 7,
2010).
|
31.1
|
Certification
of Principal Executive Officer pursuant to Rule 13a-14(a) as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
31.2
|
Certification
of Principal Financial Officer pursuant to Rule 13a-14(a) as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
32.1
|
Certification
of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
32.2
|
Certification
of Principal Financial Officer pursuant to U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
CLARUS CORPORATION
|
|
Date: November 9, 2010 | |
/s/
Peter Metcalf
----------------------------
Peter
Metcalf
President
and Chief Executive Officer
(Principal
Executive Officer)
/s/
Robert Peay
---------------------------
Robert
Peay,
Chief
Financial Officer
(Principal
Financial and Chief
Accounting
Officer)
|
Number
|
Exhibit
|
10.1
|
Amendment
No. 1 to Clarus Corporation 2005 Stock Incentive Plan (incorporated herein
by reference to Exhibit 10.1 of the Current Report on Form 8-K dated
September 1, 2010, filed by Clarus Corporation on September 7,
2010).
|
10.2
|
Amendment
No. 1 to Transition Agreement, dated September 1, 2010, between Clarus
Corporation and Kanders & Company, Inc. (incorporated herein by
reference to Exhibit 10.1 of the Current Report on Form 8-K dated
September 1, 2010, filed by Clarus Corporation on September 7,
2010).
|
31.1
|
Certification
of Principal Executive Officer pursuant to Rule 13a-14(a) as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
31.2
|
Certification
of Principal Financial Officer pursuant to Rule 13a-14(a) as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
32.1
|
Certification
of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
32.2
|
Certification
Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|