In line with the unaudited preliminary results put out last month, Black Diamond raised its total sales for the full 2012 financial year by 21 percent to $175.9 million, thanks in part to acquisitions. The adjusted gross margin grew from 38.7 percent to 39.5 percent, while net profit before non-cash items rose to $12.6 million, against $11.9 million in 2011. The adjusted operating profit before amortization (Ebitda) improved by 8 percent to $14.7 million. The U.S.-based company is a global leader in the design, manufacturing and marketing of active outdoor performance products, with its Black Diamond, Gregory, Poc and Pieps brands.

Black Diamond, Inc. Income Statement

('000 Dollars, Year ended Dec. 31)

 

2012

2011

% Change

Domestic

74,600

62,813

18.8

International

101,277

82,962

22.1

Total Sales

175,877

145,775

20.6

Cost of Sales

108,613

89,423

21.5

SGA*

62,590

50,493

24.0

Restructuring Charge

225

993

-77.3

Merger and Integration

244

-

-

Transaction Costs

2,029

-

-

Net Financial Expenses

2,958

2,889

2.4

Pre-Tax

88

2,204

-96.0

Tax Benefit

1,864

2,688

-30.7

NET

1,952

4,892

-60.1

Euro/Share (Diluted)

0.06

0.22

-72.7

SGA - Selling, General and Administrative

In 2012 the company fulfilled strategic objectives including the introduction of its autumn 2013 apparel line to the trade, as well as the establishment of its own ski manufacturing operation. It also agreed to acquire the Japanese distribution assets of Gregory and established its own distribution in Japan. On Oct. 1, the company completed the acquisition of Pieps, a leading Austrian designer and marketer of avalanche beacons and snow safety products, for a total consideration valued at around $10.3 million in cash.

Total sales in the fourth quarter of 2012 were up by 34 percent to $48.8 million, mainly due to the acquisition of Poc and the smaller Pieps brand. The revenues were reduced by $0.4 million because of the repurchase of inventory from Kabushiki Kaisha A&F, Gregory's distributor in Japan. In the last three month of last year, the gross margin went down by 2.9 percentage points to 36.3 percent compared with the previous year's last quarter. The gross margin in the fourth quarter of 2012 included $1.2 million for inventory fair value of purchase accounting adjustments related to the acquisitions of Poc and Pieps. Excluding this amount, the adjusted gross margin in the fourth quarter of 2012 was 38.7 percent, a decline of 0.5 percentage points from the year-ago quarter, primarily due to a higher level of discount activity in response to a challenging start to the 2012 winter season.

Adjusted Ebitda in the fourth quarter of 2012 was $2.1 million against $2.8 million in the fourth quarter of 2011. Net income in the fourth quarter of 2012 went down to $0.5 million from $3.5 million, largely due to charges of $0.4 million for non-cash items, $0.4 million in transaction-related costs, $0.1 million in restructuring costs, and $0.2 million in merger and integration costs.

As of Dec. 31, Black Diamond had cash of $5.1 million compared with $2.4 million the year before. It had $20 million outstanding on the company's $35 million line of credit, leaving $15 million available.

Black Diamond expects a strong 2013, with sales budgeted to range between $216 million and $221 million, which would represent an increase of 23 percent to 26 percent from 2012 sales. The company expects the gross margin in 2013 to range between 40 percent and 41 percent.