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Black Diamond Reports Fourth Quarter And Record Full Year 2012 Results

Stocks in this article: BDE

Forward-Looking Statements

Please note that in this press release we may use words such as "appears," "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the overall level of consumer spending on our products; general economic conditions and other factors affecting consumer confidence; disruption and volatility in the global capital and credit markets; the financial strength of the Company's customers; the Company's ability to implement its growth strategy; the Company's ability to successfully integrate and grow acquisitions; the Company's exposure to product liability or product warranty claims and other loss contingencies; stability of the Company's manufacturing facilities and foreign suppliers; the Company's ability to protect trademarks and other intellectual property rights; fluctuations in the price, availability and quality of raw materials and contracted products; foreign currency fluctuations; our ability to utilize our net operating loss carryforwards; and legal, regulatory, political and economic risks in international markets. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

BLACK DIAMOND, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
     
  December 31,
  2012 2011
  (Unaudited)  
Assets    
Current assets    
Cash  $ 5,111   $ 2,400
Accounts receivable, less allowance for doubtful accounts of $499 and $326, respectively  30,925  22,718
Inventories  60,664  47,137
Prepaid and other current assets  4,846  2,472
Income tax receivable  659  -- 
Deferred income taxes  2,337  2,270
Total current assets  104,542  76,997
     
Property and equipment, net  17,508  14,019
Definite lived intangible assets, net  38,100  16,108
Indefinite lived intangible assets  51,462  32,650
Goodwill  57,481  38,226
Deferred income taxes  49,631  48,429
Other long-term assets  2,062  1,298
Total assets   $ 320,786   $ 227,727
     
Liabilities and Stockholders' Equity    
Current liabilities    
Accounts payable and accrued liabilities  $ 22,178  $ 16,090
Income tax payable  --   254
Current portion of long-term debt  4,059  673
Total current liabilities  26,237  17,017
     
Long-term debt  36,429  37,397
Deferred income taxes  8,114  -- 
Other long-term liabilities  2,000  1,139
Total liabilities  72,780  55,553
     
Stockholders' Equity    
Preferred stock, $.0001 par value; 5,000 shares authorized; none issued  --   -- 
Common stock, $.0001 par value; 100,000 shares authorized; 31,838 and 21,839 issued and 31,763 and 21,764 outstanding  3  2
Additional paid in capital  473,628  402,716
Accumulated deficit  (231,334)  (233,286)
Treasury stock, at cost  (2)  (2)
Accumulated other comprehensive income  5,711  2,744
Total stockholders' equity  248,006  172,174
Total liabilities and stockholders' equity  $ 320,786  $ 227,727
 
 
 
BLACK DIAMOND, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
     
   THREE MONTHS ENDED 
  December 31, 2012 December 31, 2011
     
Sales    
Domestic sales  $ 21,031  $ 18,143
International sales  27,770  18,196
Total sales  48,801  36,339
     
Cost of goods sold  31,078  22,090
Gross profit  17,723  14,249
     
Operating expenses    
Selling, general and administrative  19,149  13,409
Restructuring charge  139  --
Merger and integration  168  --
Transaction costs  364  --
     
Total operating expenses  19,820  13,409
     
Operating (loss) income  (2,097)  840
     
Other (expense) income    
Interest expense  (925)  (764)
Interest income  (8)  1
Other, net  254  82
     
Total other expense, net  (679)  (681)
     
(Loss) income before income tax  (2,776)  159
Income tax benefit  (3,320)  (3,369)
Net income  $ 544  $ 3,528
     
Earnings per share:    
Basic  $ 0.02  $ 0.16
Diluted  0.02  0.16
     
Weighted average shares outstanding:    
Basic 31,431 21,856
Diluted 31,615 22,082
 
 
 
BLACK DIAMOND, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
     
   Year Ended December 31, 
  2012 2011
     
Sales    
Domestic sales  $ 74,600  $ 62,813
International sales  101,277  82,962
Total sales  175,877  145,775
     
Cost of goods sold  108,613  89,423
Gross profit  67,264  56,352
     
Operating expenses    
Selling, general and administrative  62,590  50,493
Restructuring charge  225  993
Merger and integration  244  -- 
Transaction costs  2,029  -- 
     
Total operating expenses  65,088  51,486
     
Operating income  2,176  4,866
     
Other (expense) income    
Interest expense  (2,993)  (2,921)
Interest income  35  32
Other, net  870  227
     
Total other expense, net  (2,088)  (2,662)
     
Income before income tax  88  2,204
Income tax benefit  (1,864)  (2,688)
Net income  $ 1,952  $ 4,892
     
Earnings per share:    
Basic  $ 0.07  $ 0.22
Diluted  0.06  0.22
     
Weighted average shares outstanding:    
Basic 29,817 21,845
Diluted 30,126 22,046
 
 
 
BLACK DIAMOND, INC.
RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT
AND ADJUSTED GROSS MARGIN
         
THREE MONTHS ENDED
   
  December 31, 2012     December 31, 2011
         
Gross profit as reported  $ 17,723      
Plus inventory fair value of purchase accounting  1,163      
Adjusted gross profit  $ 18,886 Gross profit as reported    $ 14,249
         
Gross margin 36.3%      
         
Adjusted gross margin 38.7% Gross margin as reported   39.2%
         
TWELVE MONTHS ENDED
         
  December 31, 2012     December 31, 2011
         
Gross profit as reported  $ 67,264      
Plus inventory fair value of purchase accounting  2,257      
Adjusted gross profit  $ 69,521 Gross profit as reported    $ 56,352
         
Gross margin 38.2%      
         
Adjusted gross margin 39.5% Gross margin as reported   38.7%
 
 
 
BLACK DIAMOND, INC.
RECONCILIATION FROM NET INCOME TO NET INCOME BEFORE NON-CASH ITEMS, ADJUSTED
NET INCOME BEFORE NON-CASH ITEMS AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
         
         
   THREE MONTHS ENDED 
     Per Diluted     Per Diluted 
  December 31, 2012 Share December 31, 2011 Share
         
         
Net income  $ 544  $ 0.02  $ 3,528  $ 0.16
         
Amortization of intangibles  871  0.03  333  0.02
Depreciation  990  0.03  993  0.04
Accretion of note discount  267  0.01  238  0.01
Stock-based compensation  452  0.01  588  0.03
Inventory fair value of purchase accounting  1,163  0.04  --   -- 
Income tax benefit  (3,320)  (0.11)  (3,369)  (0.15)
Cash paid for income taxes  (38)  (0.00)  --   -- 
         
Net income before non-cash items  $ 929  $ 0.03  $ 2,311  $ 0.10
         
Restructuring charge  139  0.00  --   -- 
Merger and integration  168  0.01  --   -- 
Transaction costs  364  0.01  --   -- 
State cash taxes on adjustments  (34)  (0.00)  --   -- 
AMT cash taxes on adjustments  (13)  (0.00)  --   -- 
         
Adjusted net income before non-cash items  $ 1,553  $ 0.05  $ 2,311  $ 0.10
 
 
 
BLACK DIAMOND, INC.
RECONCILIATION FROM NET INCOME TO NET INCOME BEFORE NON-CASH ITEMS, ADJUSTED
NET INCOME BEFORE NON-CASH ITEMS AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
         
         
   TWELVE MONTHS ENDED 
     Per Diluted     Per Diluted 
  December 31, 2012 Share December 31, 2011 Share
         
         
Net income  $ 1,952  $ 0.06  $ 4,892  $ 0.22
         
Amortization of intangibles  2,268  0.08  1,331  0.06
Depreciation   3,685  0.12  3,351  0.15
Accretion of note discount  1,025  0.03  993  0.05
Stock-based compensation  1,766  0.06  3,091  0.14
Inventory fair value of purchase accounting  2,257  0.07  --   -- 
Income tax benefit  (1,864)  (0.06)  (2,688)  (0.12)
Cash (paid) received for income taxes  (881)  (0.03)  46  0.00
         
Net income before non-cash items  $ 10,208  $ 0.34  $ 11,016  $ 0.50
         
Restructuring charge  225  0.01  993  0.05
Merger and integration  244  0.01  --   -- 
Transaction costs  2,029  0.07  --   -- 
State cash taxes on adjustments  (125)  (0.00)  (50)  (0.00)
AMT cash taxes on adjustments  (47)  (0.00)  (19)  (0.00)
         
Adjusted net income before non-cash items  $ 12,534  $ 0.42  $ 11,940  $ 0.54
 
 
 
BLACK DIAMOND, INC.
RECONCILIATION FROM NET INCOME TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, 
AND AMORTIZATION ("EBITDA"), AND ADJUSTED EBITDA
(In thousands)
     
   THREE MONTHS ENDED 
  December 31, 2012 December 31, 2011
     
     
Net income  $ 544  $ 3,528
     
Income tax benefit  (3,320)  (3,369)
Other, net  (254)  (82)
Interest income  8  (1)
Interest expense  925  764
     
Operating (loss) income  (2,097)  840
     
Depreciation  990  993
Amortization of intangibles  871  333
     
EBITDA  $ (236)  $ 2,166
     
Restructuring charge  139  -- 
Merger and integration  168  -- 
Transaction costs  364  -- 
Inventory fair value of purchase accounting  1,163  -- 
Stock-based compensation  452  588
     
Adjusted EBITDA  $ 2,050  $ 2,754
 
 
 
BLACK DIAMOND, INC.
RECONCILIATION FROM NET INCOME TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, 
AND AMORTIZATION ("EBITDA"), AND ADJUSTED EBITDA
(In thousands)
     
   TWELVE MONTHS ENDED 
  December 31, 2012 December 31, 2011
     
     
Net income  $ 1,952  $ 4,892
     
Income tax benefit  (1,864)  (2,688)
Other, net  (870)  (227)
Interest income  (35)  (32)
Interest expense  2,993  2,921
     
Operating income  2,176  4,866
     
Depreciation   3,685  3,351
Amortization of intangibles  2,268  1,331
     
EBITDA  $ 8,129  $ 9,548
     
Restructuring charge  225  993
Merger and integration  244  -- 
Transaction costs  2,029  -- 
Inventory fair value of purchase accounting  2,257  -- 
Stock-based compensation  1,766  3,091
     
Adjusted EBITDA  $ 14,650  $ 13,632
CONTACT: Company Contact:
         
         Warren B. Kanders
         Executive Chairman
         Tel 1-203-428-2000
         warren.kanders@bdel.com
         or
         Peter Metcalf
         Chief Executive Officer
         Tel 1-801-278-5552
         peter.metcalf@bdel.com
         
         Investor Relations:
         
         Liolios Group, Inc.
         Scott Liolios or Cody Slach
         Tel 1-949-574-3860
         BDE@liolios.com

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