| SEGMENT INFORMATION |
NOTE 18. 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:
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● |
Our Outdoor segment, which includes Black Diamond Equipment and PIEPS, 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; and gloves and mittens. We also offer advanced skis, ski poles, ski skins, and snow safety products, including avalanche airbag systems, avalanche transceivers, shovels, and probes. |
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Our Adventure segment, which includes Rhino-Rack, MAXTRAX, and TRED, 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:
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Three Months Ended |
|
March 31, 2024 |
|
March 31, 2023 |
Sales to external customers: |
|
|
|
|
|
Outdoor |
|
|
|
|
|
Domestic sales |
$ |
23,629 |
|
$ |
21,565 |
International sales |
|
23,393 |
|
|
31,210 |
Total Outdoor |
|
47,022 |
|
|
52,775 |
Adventure |
|
|
|
|
|
Domestic sales |
|
4,655 |
|
|
2,632 |
International sales |
|
17,634 |
|
|
14,871 |
Total Adventure |
|
22,289 |
|
|
17,503 |
Total sales to external customers |
|
69,311 |
|
|
70,278 |
Segment operating income: |
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|
|
|
|
Outdoor |
|
(1,711) |
|
|
1,490 |
Adventure |
|
(770) |
|
|
402 |
Total segment operating income |
|
(2,481) |
|
|
1,892 |
Corporate costs |
|
(4,293) |
|
|
(4,338) |
Interest income, net |
|
370 |
|
|
5 |
Other, net |
|
(909) |
|
|
76 |
Loss before income tax |
$ |
(7,313) |
|
$ |
(2,365) |
There were no intercompany sales between the Outdoor and Adventure segments for the periods presented.
Total assets by segment, as of March 31, 2024 and December 31, 2023, were as follows:
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|
|
|
|
|
|
March 31, 2024 |
|
December 31, 2023 |
|
|
|
|
|
|
Outdoor |
$ |
160,170 |
|
$ |
163,083 |
Adventure |
|
174,920 |
|
|
185,023 |
Corporate |
|
41,886 |
|
|
9,948 |
|
$ |
376,976 |
|
$ |
358,054 |
Capital expenditures, depreciation and amortization by segment is as follows.
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|
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|
|
Three Months Ended |
|
March 31, 2024 |
|
March 31, 2023 |
Capital expenditures: |
|
|
|
|
|
Outdoor |
$ |
720 |
|
$ |
323 |
Adventure |
|
291 |
|
|
409 |
Total capital expenditures |
$ |
1,011 |
|
$ |
732 |
Depreciation: |
|
|
|
|
|
Outdoor |
$ |
673 |
|
$ |
673 |
Adventure |
|
353 |
|
|
266 |
Total depreciation |
$ |
1,026 |
|
$ |
939 |
Amortization: |
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|
|
|
|
Outdoor |
$ |
286 |
|
$ |
258 |
Adventure |
|
2,163 |
|
|
2,510 |
Total amortization |
$ |
2,449 |
|
$ |
2,768 |
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