Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.2
Segment Information
6 Months Ended
Jun. 30, 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

Six Months Ended

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Sales to external customers:

Outdoor

Domestic sales

$

27,293

$

25,232

$

52,922

$

50,992

International sales

25,311

19,660

51,204

45,696

Total Outdoor

52,604

44,892

104,126

96,688

Precision Sport

Domestic sales

27,193

26,644

54,636

48,457

International sales

7,994

1,773

13,669

3,495

Total Precision Sport

35,187

28,417

68,305

51,952

Adventure

Domestic sales

9,587

-

18,822

-

International sales

17,555

-

36,956

-

Total Adventure

27,142

-

55,778

-

Total sales to external customers

114,933

73,309

228,209

148,640

Segment operating income:

Outdoor

1,471

657

3,359

4,102

Precision Sport

12,235

10,017

24,015

15,979

Adventure

644

-

2,768

-

Total segment operating income

14,350

10,674

30,142

20,081

Transaction costs

(821)

(649)

(2,022)

(1,125)

Contingent consideration benefit (expense)

374

-

(389)

-

Corporate and other expenses

(7,455)

(7,818)

(13,237)

(11,200)

Interest expense, net

(1,728)

(212)

(2,844)

(450)

Income before income tax

$

4,720

$

1,995

$

11,650

$

7,306

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

Total assets by segment, as of June 30, 2022 and December 31, 2021, were as follows:

June 30, 2022

December 31, 2021

Outdoor

$

168,811

$

166,751

Precision Sport

153,361

142,549

Adventure

287,934

298,364

Corporate

27,905

24,163

$

638,011

$

631,827

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

Three Months Ended

Six Months Ended

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Capital expenditures:

Outdoor

$

1,089

$

580

$

2,325

$

1,272

Precision Sport

772

1,298

1,222

1,953

Adventure

311

-

525

-

Total capital expenditures

$

2,172

$

1,878

$

4,072

$

3,225

Depreciation:

Outdoor

$

829

$

694

$

1,646

$

1,407

Precision Sport

812

655

1,593

1,298

Adventure

236

-

470

-

Total depreciation

$

1,877

$

1,349

$

3,709

$

2,705

Amortization:

Outdoor

$

250

$

258

$

505

$

517

Precision Sport

693

939

1,385

1,877

Adventure

2,994

-

6,167

-

Total amortization

$

3,937

$

1,197

$

8,057

$

2,394