Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.22.4
Segment Information
12 Months Ended
Dec. 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:

Year Ended December 31,

2022

2021

2020

Sales to external customers:

Outdoor

Domestic sales

$

108,304

$

112,775

$

86,717

International sales

114,041

108,057

84,514

Total Outdoor

222,345

220,832

171,231

Precision Sport

Domestic sales

105,326

101,059

45,509

International sales

27,529

8,764

7,267

Total Precision Sport

132,855

109,823

52,776

Adventure

Domestic sales

24,514

12,044

-

International sales

68,392

33,095

-

Total Adventure

92,906

45,139

-

Total sales to external customers

448,106

375,794

224,007

Segment operating income (loss):

Outdoor

14,710

16,171

5,933

Precision Sport

39,401

34,224

12,924

Adventure

(97,201)

(2,196)

-

Total segment operating (loss) income

(43,090)

48,199

18,857

Transaction costs

(2,967)

(11,843)

(2,433)

Contingent consideration (expense) benefit

(493)

1,605

-

Corporate and other expenses

(22,686)

(21,143)

(11,578)

Interest expense, net

(7,895)

(2,939)

(1,261)

(Loss) income before income tax

$

(77,131)

$

13,879

$

3,585

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

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

December 31,

2022

2021

Outdoor

$

175,820

$

166,751

Precision Sport

144,224

142,549

Adventure

181,867

298,364

Corporate

16,234

24,163

$

518,145

$

631,827

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

Year Ended December 31,

2022

2021

2020

Capital expenditures:

Outdoor

$

2,714

$

3,120

$

3,376

Precision Sport

2,847

13,486

2,035

Adventure

2,689

777

-

Total capital expenditures

$

8,250

$

17,383

$

5,411

Depreciation:

Outdoor

$

3,180

$

2,888

$

2,782

Precision Sport

3,238

2,633

2,019

Adventure

1,208

464

-

Total depreciation

$

7,626

$

5,985

$

4,801

Amortization:

Outdoor

$

1,001

$

1,030

$

1,061

Precision Sport

2,769

3,753

3,009

Adventure

11,556

5,051

-

Total amortization

$

15,326

$

9,834

$

4,070