Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.10.0.1
Segment Information
6 Months Ended
Jun. 30, 2018
Segment Information [Abstract]  
Segment Information

NOTE 15.  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:



·

The 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.  The 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.



·

The Sierra segment, which consists of 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.



Financial information for our segments is as follows:





















 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Six Months Ended



 

June 30, 2018

 

June 30, 2017

 

June 30, 2018

 

June 30, 2017

Sales to external customers:

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

 

 

 

 

 

 

 

 

 

 

 

Domestic sales

 

$

20,323 

 

$

16,996 

 

$

39,594 

 

$

38,333 

International sales

 

 

14,630 

 

 

13,684 

 

 

40,386 

 

 

33,903 

Total Black Diamond

 

 

34,953 

 

 

30,680 

 

 

79,980 

 

 

72,236 

Sierra

 

 

 

 

 

 

 

 

 

 

 

 

Domestic sales

 

 

7,522 

 

 

 -

 

 

13,905 

 

 

 -

International sales

 

 

3,406 

 

 

 -

 

 

5,263 

 

 

 -

Total Sierra

 

 

10,928 

 

 

 -

 

 

19,168 

 

 

 -

Total sales to external customers

 

 

45,881 

 

 

30,680 

 

 

99,148 

 

 

72,236 

Segment operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

 

(322)

 

 

(2,006)

 

$

1,615 

 

$

(986)

Sierra

 

 

2,374 

 

 

 -

 

 

3,171 

 

 

 -

Total segment operating income (loss)

 

 

2,052 

 

 

(2,006)

 

 

4,786 

 

 

(986)

Restructuring charge

 

 

(24)

 

 

(42)

 

 

(64)

 

 

(83)

Transaction costs

 

 

(168)

 

 

 -

 

 

(333)

 

 

 -

Corporate and other expenses

 

 

(2,175)

 

 

(1,608)

 

 

(4,089)

 

 

(2,849)

Interest expense, net

 

 

(463)

 

 

106 

 

 

(717)

 

 

(877)

Loss before income tax

 

$

(778)

 

$

(3,550)

 

$

(417)

 

$

(4,795)



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 June 30, 2018 and December 31, 2017, were as follows:







 

 

 

 

 

 



 

June 30, 2018

 

December 31, 2017



 

 

 

 

 

 

Black Diamond

 

$

128,544 

 

$

127,202 

Sierra

 

 

75,349 

 

 

77,270 

Corporate

 

 

3,363 

 

 

2,977 



 

$

207,256 

 

$

207,449 



Capital expenditures, depreciation and amortization by segment is as follows.







 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Six Months Ended



 

June 30, 2018

 

June 30, 2017

 

June 30, 2018

 

June 30, 2017

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

558 

 

$

722 

 

$

1,216 

 

$

1,148 

Sierra

 

 

107 

 

 

 -

 

 

302 

 

 

 -

Total capital expenditures

 

$

665 

 

$

722 

 

$

1,518 

 

$

1,148 

Depreciation:

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

633 

 

$

547 

 

$

1,220 

 

$

1,105 

Sierra

 

 

502 

 

 

 -

 

 

988 

 

 

 -

Total depreciation

 

$

1,135 

 

$

547 

 

$

2,208 

 

$

1,105 

Amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

275 

 

$

269 

 

$

550 

 

$

535 

Sierra

 

 

693 

 

 

 -

 

 

1,387 

 

 

 -

Total amortization

 

$

968 

 

$

269 

 

$

1,937 

 

$

535