Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.20.1
Segment Information
12 Months Ended
Dec. 31, 2019
Segment Information [Abstract]  
Segment Information

NOTE 15.  SEGMENT INFORMATION



We 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:



·

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



·

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



As noted above, the Company has a wide variety of technical outdoor equipment and lifestyle products focused on the climb, ski, mountain and sport product categories that are sold to a variety of customers in multiple end markets.  While there are multiple products sold, the terms and nature of revenue recognition policy is similar for all segments.  The sport product category represents the Sierra segment revenue.



We divide our product offerings into four primary categories of climb, mountain, ski and sport.  During the year ended December 31, 2019, revenue for the categories of climb, mountain, ski and sport was 31%,  34%,  22% and 13%, respectively.  During the year ended December 31, 2018, revenue for the categories of climb, mountain, ski and sport was 30%,  34%,  19% and 17%, respectively.



Financial information for our segments is as follows:









 

 

 

 

 

 

 

 

 



 

Year Ended December 31,



 

2019

 

2018

 

2017

Sales to external customers:

 

 

 

 

 

 

 

 

 

Black Diamond

 

 

 

 

 

 

 

 

 

Domestic sales

 

$

100,294 

 

$

86,432 

 

$

81,166 

International sales

 

 

99,652 

 

 

90,314 

 

 

79,165 

Total Black Diamond

 

 

199,946 

 

 

176,746 

 

 

160,331 

Sierra

 

 

 

 

 

 

 

 

 

Domestic sales

 

 

21,457 

 

 

26,105 

 

 

7,437 

International sales

 

 

8,034 

 

 

9,290 

 

 

2,919 

Total Sierra

 

 

29,491 

 

 

35,395 

 

 

10,356 

Total sales to external customers

 

 

229,437 

 

 

212,141 

 

 

170,687 

Segment operating income:

 

 

 

 

 

 

 

 

 

Black Diamond

 

 

15,553 

 

 

11,102 

 

 

4,215 

Sierra

 

 

4,008 

 

 

5,808 

 

 

(344)

Total segment operating income

 

 

19,561 

 

 

16,910 

 

 

3,871 

Restructuring charge

 

 

(13)

 

 

(137)

 

 

(160)

Merger and integration

 

 

 -

 

 

 -

 

 

(82)

Transaction costs

 

 

(166)

 

 

(503)

 

 

(2,088)

Corporate and other expenses

 

 

(8,043)

 

 

(8,458)

 

 

(6,013)

Interest expense, net

 

 

(1,358)

 

 

(1,339)

 

 

(1,288)

Income (loss) before income tax

 

$

9,981 

 

$

6,473 

 

$

(5,760)



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, 2019 and 2018, were as follows:







 

 

 

 

 

 



 

December 31,



 

2019

 

2018



 

 

 

 

 

 

Black Diamond

 

$

147,261 

 

$

138,029 

Sierra

 

 

72,104 

 

 

72,796 

Corporate

 

 

10,900 

 

 

2,303 



 

$

230,265 

 

$

213,128 



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







 

 

 

 

 

 

 

 

 



 

Year Ended December 31,



 

2019

 

2018

 

2017

Capital expenditures:

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

2,636 

 

$

2,560 

 

$

2,699 

Sierra

 

 

1,480 

 

 

805 

 

 

148 

Total capital expenditures

 

$

4,116 

 

$

3,365 

 

$

2,847 

Depreciation:

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

2,645 

 

$

2,469 

 

$

2,254 

Sierra

 

 

1,905 

 

 

1,954 

 

 

629 

Total depreciation

 

$

4,550 

 

$

4,423 

 

$

2,883 

Amortization:

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

1,111 

 

$

1,099 

 

$

1,081 

Sierra

 

 

2,441 

 

 

2,774 

 

 

1,295 

Total amortization

 

$

3,552 

 

$

3,873 

 

$

2,376