2013 Outlook Update
Black Diamond has revised its fiscal year 2013 guidance and now expects total sales to range between $205 million and $210 million compared to the previously estimated range of $216 million and $221 million. This revised range implies year-over-year sales growth of between 17% and 19% for the full year 2013. The Company also now expects gross margin for fiscal year 2013 to range between 38.5% and 40.0% compared to the previously estimated range of 40.0% and 41.0%. Both revised sales and gross margin guidance incorporate the expected impacts of year-to-date exchange rate fluctuations, but are exclusive of future exchange rate fluctuations. In 2014, the Company still expects to increase sales 20% with accelerating profitability.
Net Operating Loss (NOL)
The Company estimates that it has available NOL carryforwards for U.S. federal income tax purposes of approximately $212.3 million. The Company's common stock is subject to a Rights Agreement dated February 7, 2008, intended to assist in limiting the number of 5% or more owners and thus reduce the risk of a possible "change of ownership" under Section 382 of the Code. Any such "change of ownership" under these rules would limit or eliminate the ability of the Company to use its existing NOLs for federal income tax purposes. There is no guaranty, however, that the Rights Agreement will achieve the objective of preserving the value of the NOLs.
Black Diamond will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2013 results.
The Company's President and CEO Peter Metcalf and Interim CFO and Vice President of Finance Aaron Kuehne will host the conference call, followed by a question and answer period.
| Date: Monday, August 5, 2013
| Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
| Dial-in number: 1-877-941-2068
| International number: 1-480-629-9712
| Conference ID: 4630171
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.