Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.2
Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Information [Abstract]  
Segment Information NOTE 15. SEGMENT INFORMATION

We operate our business structure within three 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.

Our Rhino-Rack segment, which includes Rhino-Rack, is a manufacturer of highly-engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers and accessories in Australia and New Zealand and a growing presence in the United States.

As noted above, the Company has a wide variety of technical outdoor equipment and lifestyle products focused on the climb, ski, mountain, sport and adventure 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 and the adventure product category represents the Rhino-Rack segment revenue.

We divide our product offerings into five primary categories of climb, mountain, ski, sport and adventure.  Revenue by category as a percentage of total consolidated revenues is as follows:

Three Months Ended

Nine Months Ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Climb

19

%

27

%

25

%

33

%

Mountain

23

%

33

%

24

%

30

%

Ski

12

%

17

%

11

%

15

%

Sport

28

%

23

%

32

%

22

%

Adventure

18

%

-

%

8

%

-

%

Financial information for our segments is as follows:

Three Months Ended

Nine Months Ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Sales to external customers:

Black Diamond

Domestic sales

$

26,773

$

21,953

$

77,765

$

56,381

International sales

32,256

27,411

77,952

58,980

Total Black Diamond

59,029

49,364

155,717

115,361

Sierra

Domestic sales

27,363

12,733

75,820

27,112

International sales

2,954

2,394

6,449

5,587

Total Sierra

30,317

15,127

82,269

32,699

Rhino-Rack

Domestic sales

7,123

-

7,123

-

International sales

12,502

-

12,502

-

Total Rhino-Rack

19,625

-

19,625

-

Total sales to external customers

108,971

64,491

257,611

148,060

Segment operating income:

Black Diamond

5,939

4,035

10,041

1,709

Sierra

10,441

4,393

26,420

8,211

Rhino-Rack

(3,014)

-

(3,014)

-

Total segment operating income

13,366

8,428

33,447

9,920

Transaction costs

(8,147)

(1,440)

(9,272)

(1,870)

Corporate and other expenses

(5,163)

(4,984)

(16,363)

(9,316)

Interest expense, net

(1,476)

(232)

(1,926)

(800)

(Loss) income before income tax

$

(1,420)

$

1,772

$

5,886

$

(2,066)

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

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

September 30, 2021

December 31, 2020

Black Diamond

$

157,163

$

141,746

Sierra

136,509

113,430

Rhino-Rack

254,585

-

Corporate

23,486

25,515

$

571,743

$

280,691

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

Three Months Ended

Nine Months Ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Capital expenditures:

Black Diamond

$

819

$

583

$

2,091

$

1,888

Sierra

957

1,002

2,910

1,718

Rhino-Rack

578

-

578

-

Total capital expenditures

$

2,354

$

1,585

$

5,579

$

3,606

Depreciation:

Black Diamond

$

727

$

685

$

2,134

$

2,073

Sierra

669

455

1,967

1,332

Rhino-Rack

235

-

235

-

Total depreciation

$

1,631

$

1,140

$

4,336

$

3,405

Amortization:

Black Diamond

$

259

$

258

$

776

$

803

Sierra

938

495

2,815

1,487

Rhino-Rack

2,380

-

2,380

-

Total amortization

$

3,577

$

753

$

5,971

$

2,290