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| 8-K - Clarus Corp | v210273_8-k.htm |
Black
Diamond, Inc. Announces $125 Million Preliminary Pro Forma Sales for
FY2010
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Anticipates $135 - $140 Million in Sales for FY2011 --
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Expects 12.5% Compound Annual Sales Growth Rate from Existing Categories
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Targeting 2013 for Launch of Technical Outdoor Apparel --
Salt Lake City, UT, (February 7,
2011) – Black Diamond, Inc. (NASDAQ: BDE) (the “Company” or “Black
Diamond”), a leading provider of outdoor recreation equipment and active
lifestyle products, announced preliminary sales for the fourth quarter and full
year ended December 31, 2010. While earnings will not be announced
until the audit of the Company’s 2010 results is completed, Black Diamond
expects to report fourth quarter consolidated sales of approximately $34 million
and full-year pro forma sales of approximately $125 million. Pro
forma sales include both Black Diamond Equipment (“Predecessor”) and Gregory
Mountain Products (“Gregory”) for periods prior to their May 28, 2010
acquisition by Black Diamond. Included in this press release is a
reconciliation of consolidated sales to pro forma sales expected to be reported
for the three and twelve months ended December 31, 2010 compared to the same
periods in 2009.
Black
Diamond also announced that, in addition to its FY2011 budget, it has also
recently completed a Baseline Strategic Plan (the “Baseline Plan”) for
FY2011-FY2015. The Baseline Plan envisions 12.5% compounded annual
sales growth solely from existing categories, and calls for significant
operating expense investments in areas such as a new distribution facility,
visual merchandising, direct to consumer sales and marketing, product
development and infrastructure.
Peter
Metcalf, Chief Executive Officer of Black Diamond, Inc., commented, “With the
integrations behind us, we are extremely focused on growth. We
believe we have a powerful opportunity to both grow the existing business
organically and to augment that growth substantially with internally funded and
developed initiatives and acquisitions. We believe that we can
achieve these rates of growth and realize expanding profitability in years 2013
and beyond without any additional capital.”
The
Company also disclosed that it is targeting the fall of 2013 as a possible
launch time for an outdoor technical apparel brand, expressing the view that
both apparel and footwear represent significant long term opportunities to
extend the Black Diamond brand. The Company believes that these
categories can have a material impact on the Company’s growth over the next
decade and beyond.
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 Details
The
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, 2011at 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.
About
The Company
Black
Diamond, Inc. is a leading provider of outdoor recreation equipment and active
lifestyle products. The Company’s principal brands are Black Diamond™ and
Gregory Mountain Products®. The Company develops, manufactures and globally
distributes a broad range of products including: rock-climbing equipment (such
as carabiners, protection devices, harnesses, belay and devices, helmets,
ice-climbing gear), technical backpacks and high-end day packs, tents, trekking
poles, headlamps and lanterns, gloves and mittens, skis, ski bindings, ski
boots, ski skins and avalanche safety equipment. Headquartered in Salt Lake
City, Utah, the Company has more than 475 employees worldwide, with ISO 9001
manufacturing facilities both in Salt Lake City and Southeast China as well as a
sewing plant in Calexico, California, distribution centers in Utah and Southeast
China, a marketing office in Yokohama, Japan, and a fully owned sales, marketing
and distribution operation for Europe, located near Basel, Switzerland. For more
information about us and our brands, please visit , , and .
Use
of Non-GAAP Measures
The
Company reports its financial results in accordance with U.S. generally accepted
accounting principles (“GAAP”). This press release contains the non-GAAP measure
of pro forma sales. The Company also believes that presentation of certain
non-GAAP measures (i.e., pro forma sales) provides useful information for the
understanding of its ongoing operations and enables investors to focus on
period-over-period operating performance, and thereby enhances the user’s
overall understanding of the Company’s current financial performance relative to
past performance and provides, to the nearest GAAP measures, a better baseline
for modeling future earnings expectations. Non-GAAP measures are reconciled to
comparable GAAP financial measures in the financial tables within this press
release. The Company cautions that non-GAAP measures should be considered in
addition to, but not as a substitute for, the Company’s reported GAAP results.
Additionally, the Company notes that there can be no assurance that the above
referenced non-GAAP financial measures are comparable to similarly titled
financial measures by other publicly traded companies.
Forward
Looking Statements
Certain
statements included in this release are "forward-looking statements" within the
meaning of the federal securities laws. 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 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 ability to maintain the strength and security of its information
technology systems; 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.
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RECONCILIATION FROM CONSOLIDATED
SALES TO PRO FORMA SALES
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|||||||||
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(in
millions)
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|||||||||
|
THREE MONTHS
ENDED
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|||||||||
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December 31,
2010
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December 31,
2009
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||||||||
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Consolidated
sales as reported
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$ | - | |||||||
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Sales for
Predecessor three months
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|||||||||
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ended
12/31/09
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27 | ||||||||
|
Sales for Gregory
three months
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|||||||||
|
ended
12/31/09
|
4 | ||||||||
|
Consolidated sales as
reported
|
$ | 34 |
Pro forma
sales
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$ | 31 | ||||
|
TWELVE MONTHS
ENDED
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|||||||||
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December 31,
2010
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December 31,
2009
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||||||||
|
Consolidated sales as
reported
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$ | 76 |
Consolidated
sales as reported
|
$ | - | ||||
|
Sales for Predecessor five
months
|
Sales for
Predecessor twelve months
|
||||||||
|
ended
5/28/10
|
35 |
ended
12/31/09
|
88 | ||||||
|
Sales for Gregory five months
ended
|
Sales for Gregory
twelve months
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||||||||
|
5/28/10
|
14 |
ended
12/31/09
|
26 | ||||||
|
Pro forma
sales
|
$ | 125 |
Pro forma
sales
|
$ | 114 | ||||
COMPANY
CONTACTS:
Black
Diamond, Inc.
Warren B.
Kanders
Executive
Chairman
203-428-2000
Black
Diamond, Inc.
Peter
Metcalf
Chief
Executive Officer
801-278-5552
INVESTOR RELATIONS
CONTACT:
ICR,
Inc.
James
Palczynski
Principal
and Director
203-682-8229
MEDIA
CONTACT:
James
McCusker
Vice
President
203-682-8245
James.McCusker@icrinc.com
Bo
Park
Managing
Director
917-596-4353
bo.park@icrinc.com