Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT INFORMATION

v3.25.0.1
SEGMENT INFORMATION
12 Months Ended
Dec. 31, 2024
SEGMENT INFORMATION  
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 (“CODM”) to allocate resources and assess performance. The Company’s CODM is the Executive Chairman and Director (Principal Executive Officer). The CODM allocates resources based on revenue and operating income primarily through the annual budget and periodic forecasting process. The CODM considers budget-to-actual variances when making decisions about allocating capital and personnel to the segments. Corporate costs consist of corporate office expenses including compensation, benefits, non-cash stock compensation expense, transaction costs, and other administrative costs, as well as charges related to certain

legal and regulatory matters, that are managed at a corporate level and are not included within segment results when evaluating performance or allocating resources.  

Each segment is described below:

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.
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, bicycle racks, and accessories in Australia and New Zealand and a growing presence in the United States and Europe.

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, 2024

Outdoor

Adventure

Total

Sales

Domestic sales

$

91,202

$

14,543

$

105,745

International sales

92,366

66,204

158,570

Total sales

183,568

80,747

264,315

Cost of goods sold

116,522

48,611

Inventory fair value of purchase accounting

-

61

PFAS and other inventory reserves

4,192

2,310

Selling, general and administrative

59,351

37,212

Restructuring charges

1,349

599

Transaction costs

65

396

Contingent consideration benefit

-

(125)

Legal costs and regulatory matter expenses

3,088

-

Impairment of goodwill

-

36,264

Impairment of indefinite-lived intangible assets

-

8,545

Segment operating loss

$

(999)

$

(53,126)

$

(54,125)

Corporate costs

(16,254)

Interest income, net

1,467

Other, net

(1,673)

Loss before income tax

$

(70,585)

Year Ended December 31, 2023

Outdoor

Adventure

Total

Sales

Domestic sales

$

99,031

$

13,354

$

112,385

International sales

105,022

68,613

173,635

Total sales

204,053

81,967

286,020

Cost of goods sold

135,165

48,910

Inventory fair value of purchase accounting

-

64

PFAS and other inventory reserves

4,370

-

Selling, general and administrative

66,443

33,311

Restructuring charges

2,754

306

Transaction costs

-

30

Contingent consideration benefit

-

(1,565)

Legal costs and regulatory matter expenses

476

-

Segment operating (loss) income

$

(5,155)

$

911

$

(4,244)

Corporate costs

(16,863)

Interest income, net

67

Other, net

961

Loss before income tax

$

(20,079)

Year Ended December 31, 2022

Outdoor

Adventure

Total

Sales

Domestic sales

$

108,304

$

24,514

$

132,818

International sales

114,041

68,392

182,433

Total sales

222,345

92,906

315,251

Cost of goods sold

145,326

59,703

Inventory fair value of purchase accounting

-

269

Selling, general and administrative

62,309

37,824

Transaction costs

-

1,408

Contingent consideration expense

-

493

Impairment of goodwill

-

52,071

Impairment of indefinite-lived intangible assets

-

40,240

Segment operating income (loss)

$

14,710

$

(99,102)

$

(84,392)

Corporate costs

(22,091)

Other, net

(1,035)

Loss before income tax

$

(107,518)

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

Total assets by segment, as of December 31, 2024 and 2023, were as follows:

December 31,

2024

2023

Outdoor

$

137,062

$

163,083

Adventure

120,063

185,023

Corporate

36,969

9,948

$

294,094

$

358,054

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

Year Ended December 31,

2024

2023

2022

Capital expenditures:

Outdoor

$

4,059

$

1,542

$

2,714

Adventure

1,779

2,080

2,689

Total capital expenditures

$

5,838

$

3,622

$

5,403

Depreciation:

Outdoor

$

2,588

$

2,848

$

3,180

Adventure

1,446

1,302

1,208

Total depreciation

$

4,034

$

4,150

$

4,388

Amortization:

Outdoor

$

1,142

$

1,057

$

1,001

Adventure

8,642

9,658

11,556

Total amortization

$

9,784

$

10,715

$

12,557

Total long-lived assets by geographic region, as of December 31, 2024 and 2023, were as follows:

December 31,

2024

2023

United States

$

17,302

$

15,769

Australia

9,353

11,180

China

1,431

1,850

Austria

2,435

1,179

Other countries

910

1,789

$

31,431

$

31,767