Mr. Metcalf commented, “The next few years hold an extraordinary opportunity for our brand and the next logical step is apparel. We believe the market demand for Black Diamond apparel is substantial and, if executed well, that this category can become equal to or larger than the balance of our business within 5 years of launch.”
The Company noted that it expects FY2011 sales to range between $135 - $140 million, which does not give effect to new category launches or the impact from possible strategic acquisitions. The Company further noted gross margins are expected to range between 36% and 39% during FY 2011. The Company also expects, despite the planned near-term increase in platform capabilities, to remain profitable, cash flow positive, and self-funding with respect to working capital needs.
“Acquisitions are an important element of our long-term strategic plan and we are intently focused on identifying specific transactions that can accelerate our organic growth, leverage our global operating platform, and add additional value for shareholders. While we are confident that we will prove to be an acquirer of choice, the timing, size and specific impact of acquisitions is unpredictable,” concluded Metcalf.
Conference Call DetailsThe Company noted that, as previously announced, it will hold a conference call today, February 7, 2011, at 4:30 p.m. ET to discuss its strategic plan and the guidance contained in today’s press release. The call can be accessed by dialing 1-877-407-0789 (U.S. participants) or 1-201-689-8562 (International participants). Callers should ask to be connected to Black Diamond, Inc. teleconference and provide the conference ID number: 366362. A replay of the call will be available starting on February 7, 2011 at 7:15 pm ET by dialing 1-877-870-5176 (U.S.) or 1-858-384-5517 (International). The replay access code is 366362. The replay will be available through February 21, 2011.