Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.2.2
Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Information [Abstract]  
Segment Information NOTE 16. SEGMENT INFORMATION

We operate our business structure within three 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:

Our Outdoor segment, which includes Black Diamond Equipment, PIEPS, and SKINourishment, 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; gloves and mittens; and skincare and other sport-enhancing products. We also offer advanced skis, ski poles, ski skins, and snow safety products, including avalanche airbag systems, avalanche transceivers, shovels, and probes.

Our Precision Sport segment, which includes Sierra and Barnes, includes two iconic American manufacturers of a wide range of high-performance bullets and ammunition for both rifles and pistols. These bullets are used for precision target shooting, hunting and military and law enforcement purposes.

Our Adventure segment, which includes Rhino-Rack and MAXTRAX, 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:

Three Months Ended

Nine Months Ended

September 30, 2022

September 30, 2021

September 30, 2022

September 30, 2021

Sales to external customers:

Outdoor

Domestic sales

$

27,446

$

26,773

$

80,368

$

77,765

International sales

35,430

32,256

86,634

77,952

Total Outdoor

62,876

59,029

167,002

155,717

Precision Sport

Domestic sales

24,612

27,363

79,248

75,820

International sales

9,595

2,954

23,264

6,449

Total Precision Sport

34,207

30,317

102,512

82,269

Adventure

Domestic sales

3,482

7,123

22,304

7,123

International sales

15,150

12,502

52,106

12,502

Total Adventure

18,632

19,625

74,410

19,625

Total sales to external customers

115,715

108,971

343,924

257,611

Segment operating income (loss):

Outdoor

5,853

5,939

9,212

10,041

Precision Sport

9,936

10,441

33,951

26,420

Adventure

(3,736)

(3,014)

(968)

(3,014)

Total segment operating income

12,053

13,366

42,195

33,447

Transaction costs

(858)

(8,147)

(2,880)

(9,272)

Contingent consideration expense

(104)

-

(493)

-

Corporate and other expenses

(6,207)

(5,163)

(19,444)

(16,363)

Interest expense, net

(2,216)

(1,476)

(5,060)

(1,926)

Income (loss) before income tax

$

2,668

$

(1,420)

$

14,318

$

5,886

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

Total assets by segment, as of September 30, 2022 and December 31, 2021, were as follows:

September 30, 2022

December 31, 2021

Outdoor

$

181,669

$

166,751

Precision Sport

153,812

142,549

Adventure

266,340

298,364

Corporate

26,120

24,163

$

627,941

$

631,827

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

Three Months Ended

Nine Months Ended

September 30, 2022

September 30, 2021

September 30, 2022

September 30, 2021

Capital expenditures:

Outdoor

$

184

$

819

$

2,509

$

2,091

Precision Sport

1,024

957

2,246

2,910

Adventure

936

578

1,461

578

Total capital expenditures

$

2,144

$

2,354

$

6,216

$

5,579

Depreciation:

Outdoor

$

794

$

727

$

2,440

$

2,134

Precision Sport

818

669

2,411

1,967

Adventure

479

235

949

235

Total depreciation

$

2,091

$

1,631

$

5,800

$

4,336

Amortization:

Outdoor

$

248

$

259

$

753

$

776

Precision Sport

692

938

2,077

2,815

Adventure

2,743

2,380

8,910

2,380

Total amortization

$

3,683

$

3,577

$

11,740

$

5,971