Clarus Corporation (NASDAQ: BDE) (the “Company”), a leading developer, manufacturer and distributor of branded outdoor recreation equipment and lifestyle products, today reported results for the second quarter, ended June 30, 2010.
The Company closed its acquisitions of Black Diamond Equipment (“BDE”) and Gregory Mountain Products (“Gregory”) on May 28, 2010 (the “Acquisitions”), and therefore its second quarter financial results reflect only one month of operating contribution from those businesses. Additionally, a number of transaction expenses, merger and integration costs, restructuring charges, non-cash stock-based equity charges, and other non-cash charges and gains significantly affected results for the period. Because the Company had no operations at the time of the acquisitions, Black Diamond Equipment is considered to be our predecessor company (the “Predecessor”) for financial accounting purposes. The Predecessor does not include the results of Gregory.
Three Month Results
Combined revenues in the second quarter were $19.0 million compared to $15.2 million during the three months ended June 30, 2009. Combined results represent the results of the Company for the three months ended June 30, 2010, and the results of the Predecessor for the period from April 1, 2010 through May 28, 2010, the closing date of the Acquisitions, but does not include Gregory for April or May 2010. Combined revenues for the three months ended June 30, 2009 represent the results of the Company for three months ended June 30, 2009 and the results of the Predecessor for the period from April 1, 2009 through June 30, 2009, but does not include Gregory for the three month period from April 1 through June 30, 2009.
Pro forma revenues for the second quarter, which include the combined results plus the results of Gregory for April and May 2010, were $23.7 million, an increase of 4% versus pro forma revenues of $22.8 million in the same period last year. Following this press release is a reconciliation of revenue as reported to combined, pro forma revenue and gross profit as reported to combined, and combined adjusted and pro forma adjusted gross profit for the three and six month periods ended June 30, 2010 and 2009.