Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.1
Segment Information
3 Months Ended
Mar. 31, 2022
Segment Information [Abstract]  
Segment Information NOTE 16. 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 Outdoor 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 Outdoor 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 Precision Sport 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 Adventure segment, which includes Rhino-Rack and MAXTRAX, is a manufacturer of highly-engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, recovery boards 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 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.

Financial information for our segments, as well as revenue by geography, which the Company believes provides a meaningful depiction how the nature, timing and uncertainty of revenue are affected by economic factors, is as follows:

Three Months Ended

March 31, 2022

March 31, 2021

Sales to external customers:

Outdoor

Domestic sales

$

25,629

$

25,760

International sales

25,893

26,036

Total Outdoor

51,522

51,796

Precision Sport

Domestic sales

27,443

21,813

International sales

5,675

1,722

Total Precision Sport

33,118

23,535

Adventure

Domestic sales

9,235

-

International sales

19,401

-

Total Adventure

28,636

-

Total sales to external customers

113,276

75,331

Segment operating income:

Outdoor

1,888

3,445

Precision Sport

11,780

5,962

Adventure

2,124

-

Total segment operating income

15,792

9,407

Transaction costs

(1,201)

(476)

Contingent consideration expense

(763)

-

Corporate and other expenses

(5,782)

(3,382)

Interest expense, net

(1,116)

(238)

Income before income tax

$

6,930

$

5,311

There were no intercompany sales between the Outdoor, Precision Sport, and Adventure segments for the periods presented.

Total assets by segment, as of March 31, 2022 and December 31, 2021, were as follows:

March 31, 2022

December 31, 2021

Outdoor

$

166,470

$

166,751

Precision Sport

153,687

142,549

Adventure

316,869

298,364

Corporate

24,056

24,163

$

661,082

$

631,827

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

Three Months Ended

March 31, 2022

March 31, 2021

Capital expenditures:

Outdoor

$

1,236

$

692

Precision Sport

450

655

Adventure

214

-

Total capital expenditures

$

1,900

$

1,347

Depreciation:

Outdoor

$

817

$

713

Precision Sport

781

643

Adventure

234

-

Total depreciation

$

1,832

$

1,356

Amortization:

Outdoor

$

255

$

259

Precision Sport

692

938

Adventure

3,173

-

Total amortization

$

4,120

$

1,197