| 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 |
|