Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION

v3.25.2
SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2025
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 19. 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:

Prior to its sale on July 11, 2025, PIEPS was included in our Outdoor segment alongside Black Diamond Equipment. Our Outdoor segment 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:

Three Months Ended June 30, 2025

Outdoor

Adventure

Total

Sales

Domestic sales

$

18,621

$

6,103

$

24,724

International sales

18,040

12,483

30,523

Total sales

36,661

18,586

55,247

Cost of goods sold

23,429

11,648

Other inventory reserves

490

-

Selling, general and administrative

14,225

8,938

Restructuring charges

(42)

203

Transaction costs

86

-

Legal costs and regulatory matter expenses

1,150

-

Impairment of indefinite-lived intangible assets

1,565

-

Segment operating loss

$

(4,242)

$

(2,203)

$

(6,445)

Corporate costs

(4,456)

Interest income, net

153

Other, net

1,483

Loss before income tax

$

(9,265)

Three Months Ended June 30, 2024

Outdoor

Adventure

Total

Sales

Domestic sales

$

18,885

$

4,049

$

22,934

International sales

17,302

16,248

33,550

Total sales

36,187

20,297

56,484

Cost of goods sold

23,245

12,117

PFAS and other inventory reserves

716

-

Selling, general and administrative

14,295

9,557

Restructuring charges

146

15

Contingent consideration benefit

-

(125)

Legal costs and regulatory matter expenses

180

-

Segment operating income (loss)

$

(2,395)

$

(1,267)

$

(3,662)

Corporate costs

(4,475)

Interest income, net

455

Other, net

414

Loss before income tax

$

(7,268)

Six Months Ended June 30, 2025

Outdoor

Adventure

Total

Sales

Domestic sales

$

39,315

$

10,218

$

49,533

International sales

41,669

24,478

66,147

Total sales

80,984

34,696

115,680

Cost of goods sold

52,783

21,813

Inventory fair value of purchase accounting

-

120

Other inventory reserves

490

-

Selling, general and administrative

28,251

17,777

Restructuring charges

131

203

Transaction costs

156

40

Legal costs and regulatory matter expenses

1,728

-

Impairment of indefinite-lived intangible assets

1,565

-

Segment operating loss

$

(4,120)

$

(5,257)

$

(9,377)

Corporate costs

(8,286)

Interest income, net

410

Other, net

1,942

Loss before income tax

$

(15,311)

Six Months Ended June 30, 2024

Outdoor

Adventure

Total

Sales

Domestic sales

$

42,514

$

8,704

$

51,218

International sales

40,695

33,882

74,577

Total sales

83,209

42,586

125,795

Cost of goods sold

53,246

25,847

PFAS and other inventory reserves

1,445

-

Selling, general and administrative

29,369

18,740

Restructuring charges

370

161

Contingent consideration benefit

-

(125)

Legal costs and regulatory matter expenses

2,885

-

Segment operating loss

$

(4,106)

$

(2,037)

$

(6,143)

Corporate costs

(8,768)

Interest income, net

825

Other, net

(495)

Loss before income tax

$

(14,581)

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

Total assets by segment, as of June 30, 2025 and December 31, 2024, were as follows:

    

June 30, 2025

    

December 31, 2024

Outdoor

$

137,400

$

137,062

Adventure

122,012

120,063

Corporate

17,768

36,969

$

277,180

$

294,094

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

Three Months Ended

Six Months Ended

June 30, 2025

    

June 30, 2024

    

June 30, 2025

    

June 30, 2024

Capital expenditures:

Outdoor

$

1,644

$

787

$

2,787

$

1,507

Adventure

219

776

257

1,067

Total capital expenditures

$

1,863

$

1,563

$

3,044

$

2,574

Depreciation:

Outdoor

$

534

$

661

$

1,040

$

1,334

Adventure

343

384

720

737

Total depreciation

$

877

$

1,045

$

1,760

$

2,071

Amortization:

Outdoor

$

245

$

285

$

528

$

571

Adventure

1,968

2,166

3,909

4,329

Total amortization

$

2,213

$

2,451

$

4,437

$

4,900