Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.10.0.1
Segment Information
9 Months Ended
Sep. 30, 2018
Segment Information [Abstract]  
Segment Information

NOTE 14.  SEGMENT INFORMATION



As a result of our August 21, 2017 acquisition of Sierra, we now operate our business structure within two segments. These segments are defined based on the internal financial reporting used by management.  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:



·

The Black Diamond 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, backpacking, skiing, and a wide range of other year-round outdoor recreation activities.  The Black Diamond segment offers a broad range of products including: high performance apparel (such as jackets, shells, pants and bibs); rock-climbing equipment (such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear); technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns; and gloves and mittens. It also offers advanced skis, ski poles, ski skins, and snow safety products, including avalanche airbag systems, avalanche transceivers, shovels, and probes.



·

The Sierra segment, which consists of Sierra, is an iconic American manufacturer of a wide range of high performance bullets for both rifles and pistols. These bullets are used for precision target shooting, hunting and military and law enforcement purposes.



Financial information for our segments is as follows:









 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Nine Months Ended



 

September 30, 2018

 

September 30, 2017

 

September 30, 2018

 

September 30, 2017

Sales to external customers:

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

 

 

 

 

 

 

 

 

 

 

 

Domestic sales

 

$

19,840 

 

$

18,840 

 

$

59,434 

 

$

57,173 

International sales

 

 

27,410 

 

 

23,402 

 

 

67,796 

 

 

57,305 

Total Black Diamond

 

 

47,250 

 

 

42,242 

 

 

127,230 

 

 

114,478 

Sierra

 

 

 

 

 

 

 

 

 

 

 

 

Domestic sales

 

 

6,328 

 

 

2,301 

 

 

20,233 

 

 

2,301 

International sales

 

 

2,108 

 

 

1,231 

 

 

7,371 

 

 

1,231 

Total Sierra

 

 

8,436 

 

 

3,532 

 

 

27,604 

 

 

3,532 

Total sales to external customers

 

 

55,686 

 

 

45,774 

 

 

154,834 

 

 

118,010 

Segment operating income:

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

 

4,639 

 

 

2,085 

 

 

6,254 

 

 

1,098 

Sierra

 

 

1,532 

 

 

416 

 

 

4,703 

 

 

416 

Total segment operating income

 

 

6,171 

 

 

2,501 

 

 

10,957 

 

 

1,514 

Restructuring charge

 

 

(22)

 

 

(33)

 

 

(86)

 

 

(116)

Transaction costs

 

 

(50)

 

 

(1,869)

 

 

(383)

 

 

(1,869)

Corporate and other expenses

 

 

(1,985)

 

 

(1,435)

 

 

(6,074)

 

 

(4,283)

Interest expense, net

 

 

(303)

 

 

(71)

 

 

(1,020)

 

 

(948)

Income (loss) before income tax

 

$

3,811 

 

$

(907)

 

$

3,394 

 

$

(5,702)



There were no intercompany sales between the Black Diamond and Sierra segments for the periods presented.  Restructuring charges for the periods presented relate to the Black Diamond segment.



Total assets by segment, as of September 30, 2018 and December 31, 2017, were as follows:







 

 

 

 

 

 



 

September 30, 2018

 

December 31, 2017



 

 

 

 

 

 

Black Diamond

 

$

134,828 

 

$

127,202 

Sierra

 

 

74,612 

 

 

77,270 

Corporate

 

 

2,656 

 

 

2,977 



 

$

212,096 

 

$

207,449 



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







 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Nine Months Ended



 

September 30, 2018

 

September 30, 2017

 

September 30, 2018

 

September 30, 2017

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

279 

 

$

770 

 

$

1,495 

 

$

1,918 

Sierra

 

 

57 

 

 

 

 

359 

 

 

Total capital expenditures

 

$

336 

 

$

771 

 

$

1,854 

 

$

1,919 

Depreciation:

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

617 

 

$

569 

 

$

1,837 

 

$

1,674 

Sierra

 

 

489 

 

 

156 

 

 

1,477 

 

 

156 

Total depreciation

 

$

1,106 

 

$

725 

 

$

3,314 

 

$

1,830 

Amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Black Diamond

 

$

272 

 

$

273 

 

$

822 

 

$

808 

Sierra

 

 

693 

 

 

375 

 

 

2,080 

 

 

375 

Total amortization

 

$

965 

 

$

648 

 

$

2,902 

 

$

1,183