Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.2
Segment Information
 6 Months Ended
Jun. 30, 2021
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 our chief operating decision maker to allocate resources and assess performance. 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 and Barnes, includes two iconic American manufacturers 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.  Revenue by category as a percentage of total consolidated revenues is as follows:

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Climb

30

%

38

%

28

%

38

%

Mountain

25

%

22

%

26

%

27

%

Ski

6

%

7

%

11

%

14

%

Sport

39

%

33

%

35

%

21

%

Financial information for our segments is as follows:

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Sales to external customers:

Black Diamond

Domestic sales

$

25,232

$

11,740

$

50,992

$

34,428

International sales

19,660

8,462

45,696

31,569

Total Black Diamond

44,892

20,202

96,688

65,997

Sierra

Domestic sales

26,644

8,519

48,457

14,379

International sales

1,773

1,293

3,495

3,193

Total Sierra

28,417

9,812

51,952

17,572

Total sales to external customers

73,309

30,014

148,640

83,569

Segment operating income (loss):

Black Diamond

657

(4,000)

4,102

(2,326)

Sierra

10,017

2,346

15,979

3,818

Total segment operating income (loss)

10,674

(1,654)

20,081

1,492

Transaction costs

(649)

(180)

(1,125)

(430)

Corporate and other expenses

(7,818)

(1,797)

(11,200)

(4,332)

Interest expense, net

(212)

(257)

(450)

(568)

Income (loss) before income tax

$

1,995

$

(3,888)

$

7,306

$

(3,838)

There were no intercompany sales between the Black Diamond and Sierra segments for the periods presented.

Total assets by segment, as of June 30, 2021 and December 31, 2020, were as follows:

June 30, 2021

December 31, 2020

Black Diamond

$

143,118

$

141,746

Sierra

133,069

113,430

Corporate

18,022

25,515

$

294,209

$

280,691

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

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Capital expenditures:

Black Diamond

$

580

$

316

$

1,272

$

1,305

Sierra

1,298

403

1,953

716

Total capital expenditures

$

1,878

$

719

$

3,225

$

2,021

Depreciation:

Black Diamond

$

694

$

703

$

1,407

$

1,388

Sierra

655

445

1,298

877

Total depreciation

$

1,349

$

1,148

$

2,705

$

2,265

Amortization:

Black Diamond

$

258

$

269

$

517

$

545

Sierra

939

496

1,877

992

Total amortization

$

1,197

$

765

$

2,394

$

1,537