Lost Arrow to Continue to Distribute Black Diamond Equipment Branded Gear in Japan Management to Discuss Purchase and PIEPS Transaction on Conference Call Today at 4:30 p.m. ET SALT LAKE CITY, Oct. 1, 2012 (GLOBE NEWSWIRE) -- Black Diamond, Inc. (Nasdaq:BDE) (the "Company" or "Black Diamond"), a leading global provider of outdoor recreation equipment and active lifestyle products, has signed a definitive agreement to acquire the Japanese distribution assets of Gregory Mountain Products ("Gregory") from Kabushiki Kaisha A&F ("A&F"), the exclusive distributor for Gregory in Japan. Dating back to the early 1980's, A&F has been responsible for Gregory's sales, marketing and distribution functions in Japan, Gregory's largest foreign market and an important strategic market for Black Diamond's long-term growth objectives. A&F represented approximately 6%, or $9.3 million of the Company's consolidated 2011 sales. Beginning January 1, 2013, Gregory intends to assume all of its own sales, marketing and distribution functions in Japan. To prepare for the January 2013 transition, Gregory has hired a senior Japanese outdoor industry veteran, and made certain commitments to establish its own administrative functions, including a third party logistics provider in Yokohama. Under the terms of the agreement, Black Diamond will acquire its Gregory Japanese distribution assets from A&F for $750,000, comprising of a $500,000 payment in January 2013 and $250,000 in December 2013. The agreement also calls for Black Diamond to purchase 100% of A&F's then existing "in-line" inventory on December 31, 2012, which the parties anticipate will be in the range of $650,000 - $750,000. Therefore, Black Diamond will defer recording revenue on inventory shipped to A&F during the 3 rd and 4 th quarters of 2012 to the extent that the Company expects to buyback this inventory. At this time, Black Diamond does not anticipate adjusting its current revenue expectations to reflect deferred revenue associated with this transaction. Beginning January 1, 2013, however, Black Diamond does anticipate recapturing this one-time shift in revenue into Q1 2013 as it begins to record revenue upon shipments directly to retailers in Japan. "The amicable acquisition of Gregory's Japanese distribution provides a number of benefits, including better control of our products in Japan, specifically the existing Gregory technical and lifestyle pack business," said Peter Metcalf, president and CEO of Black Diamond. "Similar to our internal distribution platform in Europe, controlling our own distribution in Japan is expected to allow Black Diamond to develop a robust platform to support and scale recent and potential future acquisitions in this important market."
"Gregory and A&F have been partners for many decades and as a result, this agreement is designed to be mutually beneficial to both Black Diamond and A&F," continued Metcalf. "A&F currently is, and is expected to remain, Gregory's largest retail partner in Japan through A&F's 26 owned retail stores. Working directly with Japanese retailers is expected to allow improved forecasting and production planning to better support our Gregory sales growth expectations and provide smoother, more predictable cash flows. Ultimately, we believe controlling our own distribution will continue to be a key source of strength and competitive advantage for Black Diamond. However, there are no plans at this time to alter the existing Black Diamond Equipment branded gear distribution structure that we have with our long-time Japanese partner, Lost Arrow."Conference Call and Webcast Black Diamond will hold a conference call today, October 1, 2012 at 4:30 p.m. Eastern time (2:30 p.m. Mountain time) to discuss the previously announced PIEPS acquisition and A&F transaction. The Company's President and CEO Peter Metcalf and CFO Robert Peay will host the conference call, followed by a question and answer period.
|Date: Monday, October 1, 2012|
|Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)|
|Dial-In Number: 1-877-941-1427|
|Conference ID#: 4566398|
|Toll-free replay number: 1-877-870-5176|
|International replay number: 1-858-384-5517|
|Replay pin number: 4566398|
CONTACT: Company Contact: Warren B. Kanders Executive Chairman Tel 1-203-428-2000 email@example.com or Peter Metcalf Chief Executive Officer Tel 1-801-278-5552 firstname.lastname@example.org Investor Relations: Liolios Group, Inc. Scott Liolios or Cody Slach Tel 1-949-574-3860 BDE@liolios.com