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Black Diamond Reports Second Quarter 2013 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)
     
  June 30, 2013 December 31, 2012
  (Unaudited)  
Assets    
Current assets    
 Cash  $ 2,054  $ 5,111
 Accounts receivable, less allowance for doubtful accounts of $580 and $499, respectively  31,302  30,925
 Inventories  56,715  60,664
 Prepaid and other current assets  4,493  4,846
 Income tax receivable  308  659
 Deferred income taxes  3,006  2,337
 Total current assets  97,878  104,542
     
Property and equipment, net  17,937  17,508
Definite lived intangible assets, net  36,410  38,100
Indefinite lived intangible assets  50,902  51,462
Goodwill  56,907  57,481
Deferred income taxes  48,594  49,631
Other long-term assets  2,219  2,062
Total assets  $ 310,847  $ 320,786
     
Liabilities and Stockholders' Equity    
Current liabilities    
 Accounts payable and accrued liabilities  $ 22,361  $ 22,178
 Current portion of long-term debt   2,804  4,059
 Total current liabilities  25,165  26,237
     
Long-term debt   33,971  36,429
Deferred income taxes  6,860  8,114
Other long-term liabilities  1,961  2,000
 Total liabilities  67,957  72,780
     
Stockholders' Equity    
 Preferred stock, $.0001 par value; 5,000 shares authorized; none issued  --   -- 
 Common stock, $.0001 par value; 100,000 shares authorized; 31,975 and 31,838 issued and 31,900 and 31,763 outstanding  3  3
 Additional paid in capital  475,113  473,628
 Accumulated deficit  (236,634)  (231,334)
 Treasury stock, at cost  (2)  (2)
 Accumulated other comprehensive income  4,410  5,711
 Total stockholders' equity  242,890  248,006
Total liabilities and stockholders' equity  $ 310,847  $ 320,786
     
BLACK DIAMOND, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
     
   Three Months Ended 
  June 30, 2013 June 30, 2012
     
Sales    
Domestic sales  $ 15,485  $ 15,626
International sales  23,370  16,289
Total sales  38,855  31,915
     
Cost of goods sold  23,201  19,449
Gross profit  15,654  12,466
     
Operating expenses    
Selling, general and administrative  18,053  13,319
Merger and integration  83  -- 
Transaction costs  --   1,138
     
Total operating expenses  18,136  14,457
     
Operating loss  (2,482)  (1,991)
     
Other (expense) income    
Interest expense, net  (834)  (582)
Other, net  303  (195)
     
Total other expense, net  (531)  (777)
     
Loss before income tax  (3,013)  (2,768)
Income tax benefit  (745)  (860)
Net loss  $ (2,268)  $ (1,908)
     
Loss per share:    
Basic  $ (0.07)  $ (0.06)
Diluted  (0.07)  (0.06)
     
Weighted average shares outstanding:    
Basic 31,836 30,814
Diluted 31,836 30,814
     
BLACK DIAMOND, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
     
   Six Months Ended 
  June 30, 2013 June 30, 2012
     
Sales    
Domestic sales  $ 35,595  $ 34,441
International sales  54,260  43,893
Total sales  89,855  78,334
     
Cost of goods sold  54,985  47,252
Gross profit  34,870  31,082
     
Operating expenses    
Selling, general and administrative  38,931  27,094
Restructuring charge  175  -- 
Merger and integration  226  -- 
Transaction costs  54  1,250
     
Total operating expenses  39,386  28,344
     
Operating (loss) income  (4,516)  2,738
     
Other (expense) income    
Interest expense, net  (1,660)  (1,312)
Other, net  (92)  95
     
Total other expense, net  (1,752)  (1,217)
     
(Loss) income before income tax  (6,268)  1,521
Income tax (benefit) expense  (968)  839
Net (loss) income  $ (5,300)  $ 682
     
(Loss) earnings per share:    
Basic  $ (0.17)  $ 0.02
Diluted  (0.17)  0.02
     
Weighted average shares outstanding:    
Basic 31,800 28,246
Diluted 31,800 28,581
         
RECONCILIATION FROM NET LOSS TO NET LOSS BEFORE NON-CASH ITEMS, ADJUSTED
NET LOSS BEFORE NON-CASH ITEMS AND RELATED LOSS PER DILUTED SHARE
(In thousands, except per share amounts)
         
         
   Three Months Ended 
     Per Diluted     Per Diluted 
  June 30, 2013 Share June 30, 2012 Share
         
         
Net loss  $ (2,268)  $ (0.07)  $ (1,908)  $ (0.06)
         
Amortization of intangibles  891  0.03  333  0.01
Depreciation   1,004  0.03  757  0.02
Accretion of note discount  286  0.01  254  0.01
Stock-based compensation  272  0.01  384  0.01
Income tax benefit  (745)  (0.02)  (860)  (0.03)
Cash received (paid) for income taxes  251  0.01  (353)  (0.01)
         
Net loss before non-cash items  $ (309)  $ (0.01)  $ (1,393)  $ (0.05)
         
Merger and integration  83  0.00  --   -- 
Transaction costs  --   --   1,138  0.04
State cash taxes on adjustments  (2)  (0.00)  (57)  (0.00)
AMT cash taxes on adjustments  (2)  (0.00)  (22)  (0.00)
         
Adjusted net loss before non-cash items  $ (230)  $ (0.01)  $ (334)  $ (0.01)
         
RECONCILIATION FROM NET (LOSS) INCOME TO NET (LOSS) INCOME BEFORE NON-CASH ITEMS, ADJUSTED
NET (LOSS) INCOME BEFORE NON-CASH ITEMS AND RELATED (LOSS) EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
         
         
   Six Months Ended 
     Per Diluted     Per Diluted 
  June 30, 2013 Share June 30, 2013 Share
         
         
Net (loss) income  $ (5,300)  $ (0.17)  $ 682  $ 0.02
         
Amortization of intangibles  1,791  0.06  665  0.02
Depreciation   2,036  0.06  1,528  0.05
Accretion of note discount  561  0.02  500  0.02
Stock-based compensation  642  0.02  788  0.03
Income tax (benefit) expense  (968)  (0.03)  839  0.03
Cash received (paid) for income taxes  288  0.01  (639)  (0.02)
         
Net (loss) income before non-cash items  $ (950)  $ (0.03)  $ 4,363  $ 0.15
         
Restructuring charge  175  0.01  --   -- 
Merger and integration  226  0.01  --   -- 
Transaction costs  54  0.00  1,250  0.04
State cash taxes on adjustments  (14)  (0.00)  (63)  (0.00)
AMT cash taxes on adjustments  (9)  (0.00)  (24)  (0.00)
         
Adjusted net (loss) income before non-cash items  $ (518)  $ (0.02)  $ 5,526  $ 0.19
     
RECONCILIATION FROM NET LOSS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND 
AMORTIZATION (EBITDA), AND ADJUSTED EBITDA
(In thousands)
     
   Three Months Ended 
  June 30, 2013 June 30, 2012
     
     
Net loss  $ (2,268)  $ (1,908)
     
Income tax benefit  (745)  (860)
Other, net  (303)  195
Interest expense, net  834  582
     
Operating loss  (2,482)  (1,991)
     
Depreciation   1,004  757
Amortization of intangibles  891  333
     
EBITDA  $ (587)  $ (901)
     
Merger and integration  83  -- 
Transaction costs  --   1,138
Stock-based compensation  272  384
     
Adjusted EBITDA  $ (232)  $ 621
     
RECONCILIATION FROM NET (LOSS) INCOME TO EARNINGS BEFORE INTEREST, TAXES, 
DEPRECIATION, AND AMORTIZATION (EBITDA), AND ADJUSTED EBITDA
(In thousands)
     
   Six Months Ended 
  June 30, 2013 June 30, 2012
     
     
Net (loss) income  $ (5,300)  $ 682
     
Income tax (benefit) expense  (968)  839
Other, net  92  (95)
Interest expense, net  1,660  1,312
     
Operating (loss) income  (4,516)  2,738
     
Depreciation   2,036  1,528
Amortization of intangibles  1,791  665
     
EBITDA  $ (689)  $ 4,931
     
Restructuring charge  175  -- 
Merger and integration  226  -- 
Transaction costs  54  1,250
Stock-based compensation  642  788
     
Adjusted EBITDA  $ 408  $ 6,969
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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