Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.8.0.1
Segment Information
12 Months Ended
Dec. 31, 2017
Segment Information [Abstract]  
Segment Information

NOTE 16.  SEGMENT INFORMATION



As a result of our August 21, 2017 acquisition of Sierra, we now operate our business structure within two segments. These segments are defined based on the internal financial reporting used by management.  Certain significant selling and general and administrative expenses are not allocated to the segments including non-cash stock compensation expense.  Each segment is described below:



·

Black Diamond segment, which includes Black Diamond Equipment and PIEPS, is a global leader in designing, manufacturing, and marketing innovative outdoor engineered equipment and apparel for climbing, mountaineering, backpacking, skiing, and a wide range of other year-round outdoor recreation activities.  Black Diamond segment offers a broad range of products including: high performance apparel (such as jackets, shells, pants and bibs); rock-climbing equipment (such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear); technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns; and gloves and mittens. It also offers advanced skis, ski poles, ski skins, and snow safety products, including avalanche airbag systems, avalanche transceivers, shovels, and probes.



·

Sierra segment, which includes Sierra, is an iconic American manufacturer of a wide range of high performance bullets for both rifles and pistols. These bullets are used for precision target shooting, hunting and military and law enforcement purposes.



REI accounted for approximately 14%,  16% and 17% of our total sales from continuing operations for the years ended December 31, 2017, 2016, and 2015, respectively, and is included in the Black Diamond segment.  No other single customer contributed more than 10% of our sales during those periods.



Financial information for our segments is as follows:









 

 

 

 

 

 

 

 

 



 

Year Ended December 31,



 

2017

 

2016

 

2015

Sales to external customers:

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

160,331 

 

$

148,189 

 

$

155,266 

Sierra

 

 

10,356 

 

 

 -

 

 

 -

Sales to external customers

 

$

170,687 

 

$

148,189 

 

$

155,266 

Segment operating income (expense):

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

4,215 

 

$

1,695 

 

$

2,134 

Sierra

 

 

(344)

 

 

 -

 

 

 -

Segment operating income

 

 

3,871 

 

 

1,695 

 

 

2,134 

Restructuring charge

 

 

(160)

 

 

(1,395)

 

 

(3,375)

Merger and integration

 

 

(82)

 

 

 -

 

 

 -

Transaction costs

 

 

(2,088)

 

 

(290)

 

 

(946)

Impairment of goodwill

 

 

 -

 

 

 -

 

 

(29,507)

Corporate and other expenses

 

 

(6,013)

 

 

(5,447)

 

 

(5,953)

Interest expense, net

 

 

(1,288)

 

 

(2,876)

 

 

(2,767)

Loss before income tax

 

$

(5,760)

 

$

(8,313)

 

$

(40,414)



There were no intercompany sales between the Black Diamond and Sierra segments for the periods presented.  Restructuring charges for the periods presented relate to the Black Diamond segment.



Total assets by segment, as of December 31, 2017 and December 31, 2016, were as follows:







 

 

 

 

 

 



 

December 31,



 

2017

 

2016



 

 

 

 

 

 

Black Diamond

 

$

127,202 

 

$

118,712 

Sierra

 

 

77,270 

 

 

 -

Corporate

 

 

2,977 

 

 

91,745 



 

$

207,449 

 

$

210,457 



On August 21, 2017, the Company purchased Sierra.  Total assets of Sierra as of August 21, 2017 were $80,566.  Capital expenditures, depreciation and amortization by segment is as follows.







 

 

 

 

 

 

 

 

 



 

Year Ended December 31,



 

2017

 

2016

 

2015

Capital expenditures:

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

2,699 

 

$

2,566 

 

$

2,133 

Sierra

 

 

148 

 

 

 -

 

 

 -

Total capital expenditures

 

$

2,847 

 

$

2,566 

 

$

2,133 

Depreciation:

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

2,254 

 

$

2,264 

 

$

3,039 

Sierra

 

 

629 

 

 

 -

 

 

 -

Total depreciation

 

$

2,883 

 

$

2,264 

 

$

3,039 

Amortization:

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

1,081 

 

$

1,075 

 

$

1,245 

Sierra

 

 

1,295 

 

 

 -

 

 

 -

Total amortization

 

$

2,376 

 

$

1,075 

 

$

1,245