Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-34767 | |
Entity Registrant Name | CLARUS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 58-1972600 | |
Entity Address, Address Line One | 2084 East 3900 South | |
Entity Address, City or Town | Salt Lake City | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84124 | |
City Area Code | 801 | |
Local Phone Number | 278-5552 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $.0001 per share | |
Trading Symbol | CLAR | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 38,298,162 | |
Entity Central Index Key | 0000913277 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash | $ 47,484 | $ 11,324 |
Accounts receivable, less allowance for credit losses of $1,394 and $1,412 | 51,954 | 53,971 |
Inventories | 88,630 | 91,409 |
Prepaid and other current assets | 7,966 | 4,865 |
Income tax receivable | 930 | 892 |
Assets held for sale | 137,284 | |
Total current assets | 196,964 | 299,745 |
Property and equipment, net | 16,345 | 16,587 |
Other intangible assets, net | 37,526 | 41,466 |
Indefinite-lived intangible assets | 56,897 | 58,527 |
Goodwill | 38,300 | 39,320 |
Deferred income taxes | 16,280 | 22,869 |
Other long-term assets | 14,664 | 16,824 |
Total assets | 376,976 | 495,338 |
Current liabilities | ||
Accounts payable | 12,772 | 20,015 |
Accrued liabilities | 22,441 | 24,580 |
Income tax payable | 816 | 805 |
Current portion of long-term debt | 44 | 119,790 |
Liabilities held for sale | 5,744 | |
Total current liabilities | 36,073 | 170,934 |
Long-term debt, net | 37 | |
Deferred income taxes | 17,324 | 18,124 |
Other long-term liabilities | 13,167 | 14,160 |
Total liabilities | 66,601 | 203,218 |
Stockholders' Equity | ||
Preferred stock, $0.0001 par value per share; 5,000 shares authorized; none issued | ||
Common stock, $0.0001 par value per share; 100,000 shares authorized; 42,878 and 42,761 issued and 38,236 and 38,149 outstanding, respectively | 4 | 4 |
Additional paid in capital | 692,381 | 691,198 |
Accumulated deficit | (329,811) | (350,739) |
Treasury stock, at cost | (33,114) | (32,929) |
Accumulated other comprehensive loss | (19,085) | (15,414) |
Total stockholders' equity | 310,375 | 292,120 |
Total liabilities and stockholders' equity | $ 376,976 | $ 495,338 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance for credit losses | $ 1,394 | $ 1,412 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 42,878,000 | 42,761,000 |
Common stock, shares outstanding | 38,236,000 | 38,149,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Sales | ||
Sales | $ 69,311 | $ 70,278 |
Cost of goods sold | 44,460 | 44,770 |
Gross profit | 24,851 | 25,508 |
Operating expenses | ||
Selling, general and administrative | 28,215 | 29,354 |
Restructuring charges | 370 | 0 |
Transaction costs | 38 | 37 |
Contingent consideration benefit | (1,565) | |
Legal costs and regulatory matter expenses | 3,002 | 128 |
Total operating expenses | 31,625 | 27,954 |
Operating loss | (6,774) | (2,446) |
Other (expense) income | ||
Interest income, net | 370 | 5 |
Other, net | (909) | 76 |
Total other (expense) income, net | (539) | 81 |
Loss before income tax | (7,313) | (2,365) |
Income tax benefit | (851) | (334) |
Loss from continuing operations | (6,462) | (2,031) |
Discontinued operations, net of tax | 28,346 | 3,629 |
Net income | 21,884 | 1,598 |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustment | (4,035) | (1,021) |
Unrealized gain (loss) on hedging activities | 364 | (79) |
Other comprehensive loss | (3,671) | (1,100) |
Comprehensive income | $ 18,213 | $ 498 |
Loss from continuing operations per share: | ||
Basic | $ (0.17) | $ (0.05) |
Diluted | (0.17) | (0.05) |
Net income per share: | ||
Basic | 0.57 | 0.04 |
Diluted | $ 0.57 | $ 0.04 |
Weighted average shares outstanding: | ||
Basic | 38,208 | 37,137 |
Diluted | 38,208 | 37,137 |
Domestic sales | ||
Sales | ||
Sales | $ 28,284 | $ 24,197 |
International sales | ||
Sales | ||
Sales | $ 41,027 | $ 46,081 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows From Operating Activities: | ||
Net income | $ 21,884 | $ 1,598 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation of property and equipment | 1,026 | 1,791 |
Amortization of other intangible assets | 2,449 | 3,276 |
Gain on sale of business | (40,585) | |
Amortization of debt issuance costs | 1,209 | 232 |
(Gain) loss on disposition of property and equipment | (35) | 5 |
Noncash lease expense | 751 | 690 |
Contingent consideration benefit | (1,565) | |
Stock-based compensation | 1,183 | 1,334 |
Deferred income taxes | 6,368 | (105) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 3,761 | (2,797) |
Inventories | (2,024) | 1,341 |
Prepaid and other assets | (1,694) | (153) |
Accounts payable | (7,414) | 90 |
Accrued liabilities | (3,245) | (2,612) |
Income taxes | 5 | 74 |
Net cash (used in) provided by operating activities | (16,361) | 3,199 |
Cash Flows From Investing Activities: | ||
Proceeds from the sale of business, net of cash | 175,674 | |
Proceeds from disposition of property and equipment | 81 | 88 |
Purchase of intangible assets | (250) | |
Purchases of property and equipment | (1,897) | (1,471) |
Net cash provided by (used in) investing activities | 173,608 | (1,383) |
Cash Flows From Financing Activities: | ||
Proceeds from revolving credit facilities | 31,205 | 11,731 |
Repayments on revolving credit facilities | (41,580) | (12,153) |
Repayments on term loans and other debt | (109,381) | (1,668) |
Proceeds from issuance of other debt | 49 | |
Purchase of treasury stock | (185) | (118) |
Cash dividends paid | (956) | (930) |
Net cash used in financing activities | (120,848) | (3,138) |
Effect of foreign exchange rates on cash | (239) | (429) |
Change in cash | 36,160 | (1,751) |
Cash, beginning of year | 11,324 | 12,061 |
Cash, end of period | 47,484 | 10,310 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | 168 | 350 |
Cash paid for interest | 1,943 | 2,586 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | ||
Property and equipment purchased with accounts payable | 127 | 202 |
Lease liabilities arising from obtaining right-of-use assets | $ 206 | $ 3,941 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid In Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2022 | $ 4 | $ 679,339 | $ (336,843) | $ (32,707) | $ (17,685) | $ 292,108 |
Balance, shares at Dec. 31, 2022 | 41,637 | |||||
Balance, shares at Dec. 31, 2022 | (4,589) | |||||
Net Income (Loss) | 1,598 | 1,598 | ||||
Other comprehensive loss | (1,100) | (1,100) | ||||
Cash dividends ($0.025 per share) | (930) | (930) | ||||
Purchase of treasury stock | $ (118) | (118) | ||||
Purchase of treasury stock, shares | (12) | |||||
Stock-based compensation expense | 1,334 | 1,334 | ||||
Proceeds from exercise of options, shares | 154 | |||||
Balance at Mar. 31, 2023 | $ 4 | 680,673 | (336,175) | $ (32,825) | (18,785) | 292,892 |
Balance, shares at Mar. 31, 2023 | 41,791 | |||||
Balance, shares at Mar. 31, 2023 | (4,601) | |||||
Balance at Dec. 31, 2023 | $ 4 | 691,198 | (350,739) | $ (32,929) | (15,414) | 292,120 |
Balance, shares at Dec. 31, 2023 | 42,761 | |||||
Balance, shares at Dec. 31, 2023 | (4,612) | |||||
Net Income (Loss) | 21,884 | 21,884 | ||||
Other comprehensive loss | (3,671) | (3,671) | ||||
Cash dividends ($0.025 per share) | (956) | (956) | ||||
Purchase of treasury stock | $ (185) | (185) | ||||
Purchase of treasury stock, shares | (30) | |||||
Stock-based compensation expense | 1,183 | 1,183 | ||||
Proceeds from exercise of options, shares | 117 | |||||
Balance at Mar. 31, 2024 | $ 4 | $ 692,381 | $ (329,811) | $ (33,114) | $ (19,085) | $ 310,375 |
Balance, shares at Mar. 31, 2024 | 42,878 | |||||
Balance, shares at Mar. 31, 2024 | (4,642) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||
Dividends per share | $ 0.025 | $ 0.025 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements of Clarus Corporation and subsidiaries (which may be referred to as the “Company,” “Clarus,” “we,” “us” or “our”) as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024 and 2023, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), instructions to the Quarterly Report on Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments, except otherwise disclosed) necessary for a fair presentation of the unaudited condensed consolidated financial statements have been included. The results for the three months ended March 31, 2024 are not necessarily indicative of the results to be obtained for the year ending December 31, 2024. These interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on March 7, 2024. Nature of Business Headquartered in Salt Lake City, Utah, we are a global leading designer, developer, manufacturer and distributor of best-in-class outdoor equipment and lifestyle products focused on the outdoor enthusiast markets. Each of our brands has a long history of continuous product innovation for core and everyday users alike. The Company’s products are principally sold globally under the Black Diamond®, Rhino-Rack®, MAXTRAX®, and TRED Outdoors® brand names through outdoor specialty and online retailers, our own websites, distributors and original equipment manufacturers. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The more significant estimates relate to the fair value of net assets acquired in business combinations, provision for excess or obsolete inventory, allowance for credit losses, and valuation of contingent consideration liabilities, deferred tax assets, long-lived assets, goodwill and indefinite-lived intangible assets, and other intangible assets. We base our estimates on historical experience, projected future cash flows, and other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. Reclassifications Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. Specifically, legal costs associated with specific legal matters which were recorded in selling, general, and administrative expenses are now presented in legal costs and regulatory matter expenses in the consolidated statements of comprehensive income. See Note 16 for discussion regarding legal matters. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2024 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE 2. ACQUISITIONS TRED On September 13, 2023, Clarus entered into a Share Purchase Agreement (the “TRED Purchase Agreement”) to acquire TRED Outdoors Pty Ltd. (“TRED”), which subsequently closed on October 9, 2023. All United States dollar amounts contained herein are based on the exchange rates in effect for Australian dollars ($AUD) and the market value of the Company’s common stock at the time of closing of the acquisition of TRED (the “TRED Acquisition”). The Company acquired TRED for an aggregate purchase price of $AUD 10,741 (approximately $6,849), subject to a post-closing adjustment, comprised of $AUD 8,875 (approximately $5,659) cash, 179 shares of the Company’s common stock valued at $1,069, and additional consideration described below. The TRED Purchase Agreement provides for the payment of additional contingent consideration of up to $AUD 1,000 (approximately $638) in cash upon the satisfaction of certain net sales targets (the “TRED Contingent Consideration”). The Company estimated the initial fair value of the TRED Contingent Consideration to be $AUD 189 (approximately $121) and has recorded this liability within accrued liabilities. See Note 11 for discussion regarding the valuation of the TRED Contingent Consideration as of March 31, 2024. The acquisition was accounted for as a business combination. The Company believes the acquisition of TRED will provide the Company with a greater combined global revenue base, increased gross margins, profitability and free cash flows, and access to increased liquidity to further acquire and grow businesses. The following table is a reconciliation to the fair value of the purchase consideration and how the purchase consideration is allocated to assets acquired and liabilities assumed which have been estimated at their fair values. The fair value estimates for the purchase price allocation for TRED are based on the Company’s best estimates and assumptions as of the reporting date and are considered preliminary. The fair value measurements of identifiable assets and liabilities, and the resulting goodwill related to the TRED Acquisition are subject to change and the final purchase price allocations could be different from the amounts presented below. We expect to finalize the valuations as soon as practicable, but not later than one year from the date of the acquisition. The excess of purchase consideration over the assets acquired and liabilities assumed is recorded as goodwill. Goodwill for TRED is included in the Adventure segment. The goodwill consists largely of the growth and profitability expected from the acquisition. TRED October 9, 2023 Number of Shares Estimated Fair Value Cash paid - $ 5,659 Issuance of shares of Clarus Corporation 179 1,069 Contingent consideration - 121 Total purchase consideration 179 $ 6,849 Assets acquired and liabilities assumed Assets Cash $ 11 Accounts receivable 1,000 Inventories 1,006 Prepaid and other current assets 11 Property and equipment 195 Other intangible assets 3,305 Goodwill 2,832 Total assets 8,360 Liabilities Accounts payable and accrued liabilities 638 Deferred income taxes 873 Total liabilities 1,511 Net Book Value Acquired $ 6,849 The estimated fair value of inventory was recorded at expected sales price less cost to sell plus a reasonable profit margin for selling efforts. In connection with the acquisitions, the Company acquired exclusive rights to TRED’s trademarks, customer relationships, product technologies, and tradenames. The amounts assigned to each class of intangible asset, other than goodwill acquired, and the related average useful lives are as follows: TRED Average Gross Useful Life Intangibles subject to amortization Customer relationships $ 1,249 8.0 years Product technologies 394 6.0 years Tradenames 1,662 12.0 years Intangibles not subject to amortization Trademarks - N/A $ 3,305 9.8 years The full amount of goodwill of $2,832 at TRED is expected to be non-deductible for tax purposes. No pre-existing relationships existed between the Company and TRED or its sellers prior to the acquisition. TRED revenue and operating income are included in the Adventure segment. Total revenue and net income of TRED from the date of acquisition to December 31, 2023 were not material to the Company’s condensed consolidated financial statements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Mar. 31, 2024 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | NOTE 3. DISCONTINUED OPERATIONS On February 29, 2024, the Company and Everest/Sapphire Acquisition, LLC, its wholly-owned subsidiary, completed the sale to Bullseye Acquisitions, LLC, an affiliate of JDH Capital Company, of all of the equity associated with the Company’s Precision Sport segment, which is comprised of the Company’s subsidiaries Sierra and Barnes Bullets – Mona, LLC (“Barnes”), pursuant to a Purchase and Sale Agreement dated as of December 29, 2023, by and among, Bullseye Acquisitions, LLC, Everest/Sapphire Acquisition, LLC and the Company (the “Precision Sport Purchase Agreement”). The Precision Sport segment is engaged in the business of designing, developing, manufacturing, and marketing bullets and ammunition to the military, law enforcement, and commercial/consumer markets. Under the terms of the Precision Sport Purchase Agreement, the Buyer agreed to pay $175,000 in cash, which is subject to a customary working capital adjustment. The Company received $175,674 in cash under the terms of the Precision Sport Purchase Agreement, which included a preliminary working capital adjustment. As of March 31, 2024, the working capital adjustment had not been finalized. The Company recognized a pre-tax gain on such sale of $40,585. The activities of the Precision Sport segment have been segregated and reported as discontinued operations for all periods presented. The carrying amounts of the assets and liabilities of the Precision Sport segment were classified as held for sale in our consolidated balance sheets as of December 31, 2023. The asset and liability balances as of December 31, 2023 were classified as current as we anticipated the sale of these assets and liabilities within a one year period. The carrying amounts were as follows: December 31, 2023 Accounts receivable, net $ 9,914 Inventories 44,208 Prepaid and other current assets 2,931 Total current assets held for sale 57,053 Property and equipment, net 24,075 Other intangible assets, net 4,926 Indefinite-lived intangible assets 24,500 Goodwill 26,715 Other long-term assets 15 Total assets held for sale $ 137,284 Accounts payable $ 2,441 Accrued liabilities 3,303 Total current liabilities held for sale 5,744 Total liabilities held for sale $ 5,744 Summarized results of discontinued operations for the Precision Sport segment are as follows: Three Months Ended March 31, 2024 March 31, 2023 Sales $ 10,585 $ 27,106 Cost of goods sold (6,543) (16,593) Selling, general and administrative (2,062) (3,337) Restructuring charges (3) - Transaction costs (3,440) (37) Interest expense, net (2,455) (2,751) Other, net (38) 9 (Loss) income from operations of discontinued operations (3,956) 4,397 Gain on sale of discontinued operations 40,585 - Income from discontinued operations before taxes 36,629 4,397 Income tax expense 8,283 768 Income from discontinued operations, net of tax $ 28,346 $ 3,629 In connection with the sale of the Precision Sport segment, all interest expense related to outstanding debt that was required to be repaid with the proceeds received from the sale pursuant to the terms of the Company’s credit facility is allocated to discontinued operations in our condensed consolidated financial statements for the three months ended March 31, 2024 and 2023. Summarized cash flow information for the Precision Sport segment discontinued operations are as follows: Three Months Ended March 31, 2024 March 31, 2023 Depreciation of property and equipment - 852 Amortization of intangible assets - 508 Stock-based compensation 5 48 Purchase of property and equipment 886 739 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
INVENTORIES | NOTE 4. INVENTORIES Inventories, as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Finished goods $ 76,286 $ 78,887 Work-in-process 479 295 Raw materials and supplies 11,865 12,227 $ 88,630 $ 91,409 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2024 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | NOTE 5. PROPERTY AND EQUIPMENT Property and equipment, net, as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Land $ 2,850 $ 2,850 Building and improvements 6,478 6,476 Furniture and fixtures 6,176 6,195 Computer hardware and software 8,070 8,092 Machinery and equipment 18,157 18,119 Construction in progress 1,779 1,224 43,510 42,956 Less accumulated depreciation (27,165) (26,369) $ 16,345 $ 16,587 Depreciation expense for continuing operations for the three months ended March 31, 2024 and 2023 was $1,026 and $939, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 6. GOODWILL AND INTANGIBLE ASSETS Goodwill The following table summarizes the balances in goodwill by segment: Outdoor Adventure Total Goodwill $ 29,507 $ 91,375 $ 120,882 Accumulated goodwill impairments (29,507) (52,071) (81,578) Balance at December 31, 2023 - 39,320 39,320 Impact of foreign currency exchange rates - (1,020) (1,020) Balance at March 31, 2024 $ - $ 38,300 $ 38,300 Indefinite-Lived Intangible Assets The following table summarizes the changes in indefinite-lived intangible assets: Balance at December 31, 2023 $ 58,527 Impact of foreign currency exchange rates (1,630) Balance at March 31, 2024 $ 56,897 Trademarks classified as indefinite-lived intangible assets by brand as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Black Diamond $ 19,600 $ 19,600 PIEPS 3,012 3,080 Rhino-Rack 24,644 25,767 MAXTRAX 9,641 10,080 $ 56,897 $ 58,527 Other Intangible Assets, net The following table summarizes the changes in gross other intangible assets: Gross balance at December 31, 2023 $ 82,103 Disposal (163) Impact of foreign currency exchange rates (2,620) Gross balance at March 31, 2024 $ 79,320 Other intangible assets, net of amortization as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 Gross Accumulated Amortization Net Weighted Average Useful Life Intangibles subject to amortization Customer relationships $ 59,383 $ (31,475) $ 27,908 13.8 years Product technologies 17,292 (9,305) 7,987 10.0 years Tradenames 1,698 (67) 1,631 12.0 years Core technologies 947 (947) - 10.0 years $ 79,320 $ (41,794) $ 37,526 12.9 years December 31, 2023 Gross Accumulated Amortization Net Weighted Average Useful Life Customer relationships $ 61,215 $ (30,478) $ 30,737 13.8 years Product technologies 18,003 (9,014) 8,989 10.0 years Tradenames 1,938 (198) 1,740 11.4 years Core technologies 947 (947) - 10.0 years $ 82,103 $ (40,637) $ 41,466 12.9 years Amortization expense for continuing operations for the three months ended March 31, 2024 and 2023, was $2,449 and $2,768, respectively. Future amortization expense for other intangible assets as of March 31, 2024 is as follows: Years Ending December 31, Amortization Expense 2024 (excluding the three months ended March 31, 2024) $ 7,156 2025 8,038 2026 6,276 2027 4,568 2028 3,360 2029 2,522 Thereafter 5,606 $ 37,526 |
ACCRUED LIABILITIES AND OTHER L
ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES | |
ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES | NOTE 7. ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES Accrued liabilities as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Accrued payroll and related items $ 3,487 $ 3,964 Accrued bonus 1,123 2,047 Designated forward exchange contracts - 221 Accrued warranty 1,757 1,648 Current lease liabilities 3,198 3,179 Accrued commissions 538 344 Contingent consideration liabilities 123 129 Restructuring liabilities 643 1,246 Other 11,572 11,802 $ 22,441 $ 24,580 Other long-term liabilities as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Long-term lease liability $ 12,066 $ 13,030 Other 1,101 1,130 $ 13,167 $ 14,160 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2024 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | NOTE 8. LONG-TERM DEBT Long-term debt as of March 31, 2024 and December 31, 2023, was as follows: March 31, 2024 December 31, 2023 Revolving credit facility (a) $ - $ 10,375 Other debt (b) 81 40 Term loan (c) - 109,375 Debt issuance costs - - 81 119,790 Less current portion (44) (119,790) $ 37 $ - On April 18, 2022 (the “Effective Date”), the Company and certain of its direct and indirect subsidiaries entered into an Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent and the lenders party thereto (the “Restated Credit Agreement”). The Restated Credit Agreement provides for borrowings of up to $300,000 under a secured revolving credit facility (the “Revolving Loans”) (including up to $5,000 for letters of credit), and borrowings of up to $125,000 under a secured term loan facility (the “Term Loans”). The Restated Credit Agreement also permits the Company, subject to certain requirements, to arrange with lenders for an aggregate of up to $175,000 of additional revolving and/or term loan commitments (both of which are currently uncommitted), for potential aggregate revolving and term loan commitments under the Restated Credit Agreement of up to $600,000. The Restated Credit Agreement matures on April 18, 2027 (the “Maturity Date”), at which time the revolving commitments thereunder will terminate and all outstanding Revolving Loans and Term Loans, together with all accrued and unpaid interest thereon, must be repaid. All obligations under the Restated Credit Agreement are secured by our subsidiary equity interests, as well as accounts receivable, inventory, intellectual property and certain other assets owned by the Company. The Restated Credit Agreement contains restrictions on the Company’s ability to pay dividends or make distributions or other restricted payments if certain conditions in the Restated Credit Agreement are not fulfilled. The Restated Credit Agreement also includes other customary affirmative and negative covenants, including financial covenants relating to the Company’s consolidated total leverage ratio and fixed charge coverage ratio. In conjunction with the Precision Sport Purchase Agreement dated December 29, 2023, all balances owing the lenders and the Administrative Agent were required to be paid off contemporaneously with the closing of the disposition of the Precision Sport segment which occurred on February 29, 2024. Accordingly, all debt obligations were classified as current as of December 31, 2023 and were settled on February 29, 2024. (a) On February 29, 2024, upon the closing of the disposition of the Precision Sport segment, the Company terminated and paid off amounts outstanding under the revolving credit facility in full. The Company pays interest monthly on any borrowings on the Restated Credit Agreement. As of December 31, 2023, the interest rates ranged between approximately 7.7% and 9.8% . (b) Foreign subsidiaries of the Company term debt with financial institutions, which mature between August 8, 2024 and February 27, 2027. The foreign subsidiaries paid interest monthly on any borrowings on the credit facility as well as monthly payments on the term debt. As of March 31, 2024, the interest rates ranged between approximately 3.2% and 7.0% and as of December 31, 2023, the interest rate was approximately 3.2% . The term debt is secured by certain assets of the foreign subsidiaries. (c) On February 29, 2024, upon the closing of the disposition of the Precision Sport segment, the Company terminated and paid off amounts outstanding under the term loan in full. The Company pays interest monthly on any borrowings on the Restated Credit Agreement. As of December 31, 2023, the rate was approximately 7.7% . |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS The Company’s primary exchange rate risk management objective is to mitigate the uncertainty of anticipated cash flows attributable to changes in foreign currency exchange rates. The Company primarily focuses on mitigating changes in cash flows resulting from sales denominated in currencies other than the U.S. dollar. The Company manages this risk primarily by using currency forward and option contracts. If the anticipated transactions are deemed probable, the resulting relationships are formally designated as cash flow hedges. The Company accounts for these contracts as cash flow hedges and tests effectiveness by determining whether changes in the expected cash flow of the derivative offset, within a range, changes in the expected cash flow of the hedged item. At March 31, 2024, the Company’s derivative contracts had remaining maturities of less than one year. The counterparties to these transactions had both long-term and short-term investment grade credit ratings. The maximum net exposure of the Company’s credit risk to the counterparties is generally limited to the aggregate unrealized loss of all contracts with that counterparty. As of March 31, 2024, there was no such exposure to the counterparties. The Company’s exposure of counterparty credit risk is limited to the aggregate unrealized gain of $300 on all contracts The Company held the following contracts designated as hedging instruments as of March 31, 2024 and December 31, 2023: March 31, 2024 Notional Latest Amount Maturity Foreign exchange contracts - Canadian Dollars $6,434 February 2025 Foreign exchange contracts - Euros € 14,672 February 2025 December 31, 2023 Notional Latest Amount Maturity Foreign exchange contracts - Canadian Dollars $7,925 February 2025 Foreign exchange contracts - Euros € 20,612 February 2025 For contracts that qualify as effective hedge instruments, the effective portion of gains and losses resulting from changes in fair value of the instruments are included in accumulated other comprehensive loss and reclassified to sales in the period the underlying hedged transaction is recognized in earnings. Gains (losses) of $81 and $(16) were reclassified to sales during the three months ended March 31, 2024 and 2023, respectively. The following table presents the balance sheet classification and fair value of derivative instruments as of March 31, 2024 and December 31, 2023: Classification March 31, 2024 December 31, 2023 Derivative instruments in asset positions: Designated forward exchange contracts Prepaid and other current assets $ 300 $ - Derivative instruments in liability positions: Designated forward exchange contracts Accrued liabilities $ - $ 221 Designated forward exchange contracts Other long-term liabilities $ - $ 35 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 10. ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss (“AOCI”) primarily consists of foreign currency translation adjustments and changes in our forward foreign exchange contracts. The following table sets forth the changes in AOCI, net of tax, for the three months ended March 31, 2024: Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2023 $ (15,223) $ (191) $ (15,414) Other comprehensive (loss) income before reclassifications (4,035) 426 (3,609) Amounts reclassified from other comprehensive (loss) income - (62) (62) Net current period other comprehensive (loss) income (4,035) 364 (3,671) Balance as of March 31, 2024 $ (19,258) $ 173 $ (19,085) The following table sets forth the changes in AOCI, net of tax, for the three months ended March 31, 2023: Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2022 $ (17,628) $ (57) $ (17,685) Other comprehensive loss before reclassifications (1,021) (91) (1,112) Amounts reclassified from other comprehensive loss - 12 12 Net current period other comprehensive loss (1,021) (79) (1,100) Balance as of March 31, 2023 $ (18,649) $ (136) $ (18,785) The effects on net income of amounts reclassified from unrealized gains (losses) on cash flow hedges for foreign exchange contracts for the three months ended March 31, 2024 and 2023, were as follows: Gains (losses) reclassified from AOCI to the Consolidated Statements of Comprehensive Income Affected line item in the Consolidated Three Months Ended Statements of Comprehensive Income March 31, 2024 March 31, 2023 Foreign exchange contracts: Sales $ 81 $ (16) Less: Income tax expense (benefit) 19 (4) Amount reclassified, net of tax $ 62 $ (12) Total reclassifications from AOCI $ 62 $ (12) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 11. FAIR VALUE MEASUREMENTS We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1 - inputs to the valuation methodology are quoted market prices for identical assets or liabilities in active markets. Level 2 - inputs to the valuation methodology include quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 3 - inputs to the valuation methodology are based on prices or valuation techniques that are unobservable. Items Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis at March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 Level 1 Level 2 Level 3 Total Assets Designated forward exchange contracts $ - $ 300 $ - $ 300 $ - $ 300 $ - $ 300 Liabilities Designated forward exchange contracts $ - $ - $ - $ - Contingent consideration liabilities $ - $ - $ 123 $ 123 $ - $ - $ 123 $ 123 December 31, 2023 Level 1 Level 2 Level 3 Total Assets Designated forward exchange contracts $ - $ - $ - $ - $ - $ - $ - $ - Liabilities Designated forward exchange contracts $ - $ 256 $ - $ 256 Contingent consideration liabilities $ - $ - $ 129 $ 129 $ - $ 256 $ 129 $ 385 Derivative financial instruments are recorded at fair value based on current market pricing models. No nonrecurring fair value measurements existed at March 31, 2024 and December 31, 2023. The Company estimated the initial fair value of the contingent consideration liabilities primarily using the Monte-Carlo pricing model. Significant unobservable inputs used in the valuation included a discount rate of 11.5%. Contingent consideration liabilities are subsequently remeasured at the estimated fair value at the end of each reporting period using financial projections of the acquired company, such as sales-based milestones and estimated probabilities of achievement, with the change in fair value recognized in contingent consideration benefit in the accompanying consolidated statements of comprehensive income for such period. We measure the initial liability and remeasure the liability on a recurring basis using Level 3 inputs as defined under authoritative guidance for fair value measurements. The following table summarizes the changes in contingent consideration liabilities: TRED Balance at December 31, 2023 $ 129 Impact of foreign currency exchange rates (6) Balance at March 31, 2024 $ 123 As the contingent consideration liabilities are remeasured to fair value each reporting period, significant increases or decreases in projected sales, discount rates or the time until payment is made could have resulted in a significantly lower or higher fair value measurement. Our determination of fair value of the contingent consideration liabilities could change in future periods based on our ongoing evaluation of these significant unobservable inputs. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 12. STOCKHOLDERS’ EQUITY On August 6, 2018, the Company announced that its Board of Directors approved the initiation of a quarterly cash dividend program of $0.025 per share of the Company’s common stock (the “Quarterly Cash Dividend”) or $0.10 per share on an annualized basis. The declaration and payment of future Quarterly Cash Dividends is subject to the discretion of and approval of the Company’s Board of Directors. On April 30, 2024, the Company announced that its Board of Directors approved the payment on May 20, 2024 of the Quarterly Cash Dividend of $0.025 to the record holders of shares of the Company’s common stock as of the close of business on May 10, 2024. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | NOTE 13. EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed by dividing earnings (loss) by the weighted average number of common shares outstanding during each period. Diluted earnings (loss) per share is computed by dividing earnings (loss) by the total of the weighted average number of shares of common stock outstanding during each period, plus the effect of dilutive outstanding stock options and unvested restricted stock grants. Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. The following table is a reconciliation of basic and diluted shares of common stock outstanding used in the calculation of earnings (loss) per share: Three Months Ended March 31, 2024 March 31, 2023 Weighted average shares outstanding - basic 38,208 37,137 Effect of dilutive stock awards - - Weighted average shares outstanding - diluted 38,208 37,137 Loss from continuing operations per share: Basic $ (0.17) $ (0.05) Diluted (0.17) (0.05) Income from discontinued operations per share: Basic $ 0.74 $ 0.09 Diluted 0.74 0.09 Net income per share: Basic $ 0.57 $ 0.04 Diluted 0.57 0.04 For the three months ended March 31, 2024 and 2023, equity awards of 5,047 and 3,713, respectively, were excluded from the calculation of earnings (loss) per share for these periods as they were anti-dilutive. |
STOCK-BASED COMPENSATION PLAN
STOCK-BASED COMPENSATION PLAN | 3 Months Ended |
Mar. 31, 2024 | |
STOCK-BASED COMPENSATION PLAN | |
STOCK-BASED COMPENSATION PLAN | NOTE 14. STOCK-BASED COMPENSATION PLAN Under the Company’s current 2015 Stock Incentive Plan (the “2015 Plan”), the Company’s Board of Directors has flexibility to determine the type and amount of awards to be granted to eligible participants, who must be employees, directors, officers or consultants of the Company or its subsidiaries. The 2015 Plan allows for grants of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, and restricted units. The aggregate number of shares of common stock that may be granted through awards under the 2015 Plan to any employee in any calendar year may not exceed 500 shares. The 2015 Plan will continue in effect until December 2025 unless terminated sooner. Options Granted: During the three months ended March 31, 2024, the Company issued stock options for an aggregate of 1,140 shares under the 2015 Plan to directors and employees of the Company. All 1,140 options vest and become exercisable over a period of two years. All of the issued stock options expire ten years from the date of the grant. For computing the fair value of the stock-based awards, the fair value of each option grant has been estimated as of the date of grant using the Black-Scholes option-pricing model with the following assumptions: Options Granted During the Three Months Ended March 31, 2024 Number of options 1,140 Option vesting period 2 Years Grant price (per share) $6.75 Dividend yield 1.48% Expected volatility (a) 50.30% Risk-free interest rate 4.08% Expected life (years) (b) 5.75 Weighted average fair value (per share) $3.06 (a) Expected volatility is based upon the Company’s historical volatility. (b) The expected term was determined based upon the underlying terms of the awards and the category and employment history of employee award recipient. The grant date fair value of the stock options granted during the three months ended March 31, 2024 was $3,486, which will be recognized over the vesting period of the options. Restricted Stock Awards Granted: On March 11, 2024, the Company issued and granted employees restricted stock awards of 100 restricted shares under the 2015 Plan, of which 50 and 50 shares will vest and become nonforfeitable on each March 11, 2025 and March 11, 2026, respectively. As these restricted stock awards vest over time, the fair value of the restricted stock was estimated as of the date of grant using the grant price of $6.75 per share. The grant date fair value of the restricted stock awards was approximately $675 which will be amortized over the expected term of 2 years. The total non-cash stock compensation expense for continuing operations related to restricted stock, stock options and stock awards recorded by the Company for the three months ended March 31, 2024 and 2023 was $1,178 and $1,286, respectively. For the three months ended March 31, 2024 and 2023, the majority of stock-based compensation costs were classified as selling, general and administrative expenses. As of March 31, 2024, there were 1,152 unvested stock options and unrecognized compensation cost of $3,997 related to unvested stock options, as well as 1,600 unvested restricted stock awards and unrecognized compensation costs of $7,059 |
RESTRUCTURING
RESTRUCTURING | 3 Months Ended |
Mar. 31, 2024 | |
RESTRUCTURING | |
RESTRUCTURING | NOTE 15. RESTRUCTURING Starting in 2023, the Company began incurring expenses to facilitate long-term sustainable growth through cost reduction actions, consisting of employee reductions, facility rationalization and contract termination costs. During the three months ended March 31, 2024 and 2023, the Company incurred $370 and $0, respectively, of restructuring charges related to these actions. The Company has incurred $3,593 of cumulative restructuring charges since the commencement of restructuring actions in 2023. The Company accrues for restructuring costs when they are probable and reasonably estimable. These costs include severance costs, exit costs, and other restructuring costs and are included in Restructuring charges in the condensed consolidated statements of comprehensive income. Severance costs primarily consist of severance benefits through payroll continuation, conditional separation costs and employer tax liabilities, while exit costs primarily consist of lease exit and contract termination costs. Other costs consist primarily of costs related to the discontinuance of certain product lines and are distinguishable and directly attributable to the Company’s restructuring initiative and not a result of external market factors associated with the ongoing business. We estimate that we will continue to incur restructuring costs related to employee-related costs and facility exit costs during the year 2024; however, the Company cannot estimate the total amount expected to be incurred as cost reduction actions continue to be evaluated. The Company anticipates completing these restructuring activities in 2024. The following table summarizes the restructuring charges, payments and the remaining liabilities related to restructuring costs at March 31, 2024, which are included within accrued liabilities in the condensed consolidated balance sheets: Outdoor Adventure Corporate Total Balance at December 31, 2023 1,246 - - 1,246 Charges to expense: Employee termination benefits $ 212 $ 146 $ - $ 358 Exit costs 12 - - 12 Total restructuring charges $ 224 $ 146 $ - $ 370 Cash payments and non-cash charges: Cash payments (815) (146) - (961) Asset impairments (12) - - (12) Balance at March 31, 2024 $ 643 $ - $ - $ 643 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND LEGAL MATTERS | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS, CONTINGENCIES AND LEGAL MATTERS | |
COMMITMENTS, CONTINGENCIES AND LEGAL MATTERS | NOTE 16. COMMITMENTS, CONTINGENCIES AND LEGAL MATTERS As a consumer goods manufacturer and distributor, the Company faces the risk of product liability and related lawsuits involving claims for substantial money damages, product recall actions and higher than anticipated rates of warranty returns or other returns of goods. The Company is therefore vulnerable to various personal injury and property damage lawsuits relating to its products and incidental to its business. The Company is involved in various legal disputes and other legal proceedings that arise from time to time in the ordinary course of business. Anticipated costs related to litigation matters are accrued when it is both probable that a liability has been incurred and the amount can be reasonably estimated. Based on currently available information, the Company does not believe that it is reasonably possible that the disposition of any of the legal disputes the Company or its subsidiaries is currently involved in will have a material adverse effect upon the Company’s consolidated financial condition, results of operations or cash flows, except for the U.S. Consumer Product Safety Commission (“CPSC”) matter discussed below. There is a reasonable possibility of loss from contingencies in excess of the amounts accrued by the Company in the accompanying condensed consolidated balance sheets; however, the actual amounts of such possible losses cannot currently be reasonably estimated by the Company. It is possible that, as additional information becomes available, the Company may subsequently determine that it may incur losses from such contingencies materially in excess of the amounts initially accrued by the Company which could have a material adverse effect on the Company’s liquidity, stock price, consolidated financial position, results of operations and/or cash flows. Legal expenses incurred in the ordinary course of business are included in selling, general, and administrative expenses in the consolidated statements of comprehensive income except as described below. See Part II, Item 1. “Legal Proceedings.” U.S. Consumer Product Safety Commission In January 2021, Black Diamond Equipment, Ltd. (“BDEL”) wrote to the U.S. Consumer Product Safety Commission (“CPSC”) outlining its new cradle solution for certain models of its avalanche beacon transceivers to prevent such transceivers from switching unexpectedly out of “send” mode. The proposed new cradle solution was designed to improve transceiver safety by locking the transceiver into “send” mode prior to use so that it would not switch unexpectedly out of “send” mode. BDEL also requested approval for the CPSC Fast-Track Program for a voluntary product recall to implement this cradle solution. The CPSC approved the recall and entered into a Corrective Action Plan agreement with BDEL in March 2021. BDEL received a letter from the CPSC, dated October 28, 2021, stating that the CPSC is investigating whether BDEL has timely complied with the reporting requirements of Section 15(b) of the Consumer Protection Safety Act and related regulations regarding certain models of avalanche transceivers switching unexpectedly out of “send” mode. Separately, on April 21, 2022, BDEL filed a Section 15(b) report and applied for Fast-Track consideration for a voluntary recall, consisting of free repair or replacement of such malfunctioning models of avalanche transceivers, which would not switch from “send” mode to “search” mode due to an electronic malfunction in the reed switch or foil. The CPSC approved the recall and entered into a Corrective Action Plan agreement with BDEL in August 2022. BDEL received a letter from the CPSC, dated January 17, 2023, stating that the CPSC is investigating whether BDEL has timely complied with the reporting requirements of Section 15(b) of the Consumer Protection Safety Act and related regulations regarding the malfunction in the reed switch or foil in certain models of avalanche transceivers switching out of “search” mode. BDEL responded to the CPSC’s investigation by letter dated March 31, 2023, accompanied with documents responsive to the CPSC’s requests. The CPSC asked for further clarification and documents, and BDEL sent a responsive letter accompanied by additional documents on June 23, 2023. On September 6, 2023, the CPSC requested further clarification and information regarding the reed switch issue, to which BDEL responded on October 6 and 13, 2023. By letters dated October 12, 2023 and December 18, 2023, BDEL was notified by the CPSC that the agency staff has concluded we failed to timely meet our statutory reporting obligations under the Consumer Product Safety Act with respect to certain models of BDEL’s avalanche transceivers switching unexpectedly out of “send” mode and certain models of BDEL’s avalanche transceivers not switching from “send” mode into “search” mode, that we made a material misrepresentation in a report to the CPSC, and that the agency staff intends to recommend that the CPSC impose civil monetary penalties of $16,135 and $9,000, respectively, for the two matters described above. On November 20, 2023 and February 8, 2024, respectively, we submitted a comprehensive response disputing the CPSC’s findings and conclusions in the October 12, 2023 and December 18, 2023 letters, including the amount of any potential penalties. The CPSC ultimately disagreed with our position and the agency staff has restated their recommendation for the monetary penalties which the Company intends to strongly contest and vigorously defend against. Based on currently available information, the Company believes an unfavorable outcome is probable, however, we cannot reasonably estimate on what terms or if this matter will be resolved. During the three months ended March 31, 2024, the Company recorded a liability of $2,500 representing the low end of the range of our estimated exposure. The Company does not have a better estimate of the loss therefore the low-end of the range was recorded as an accrued liability during the first quarter of 2024 and a corresponding expense is included in legal costs and regulatory matter expenses in the consolidated statements of comprehensive income. We believe it is reasonably possible that a change in our ability to estimate the amount of loss could occur in the near term and that the change in the estimate could be material. In addition, as this matter is ongoing, the Company is currently unable to predict its duration, resources required or outcome, or the impact it may have on the Company’s liquidity, financial condition, results of operations and/or cash flows. Any penalties imposed by the CPSC or other regulators, could be costly to us and could damage our business and reputation as well as have a material adverse effect on the Company’s liquidity, stock price, consolidated financial position, results of operations and/or cash flows. During the three months ended March 31, 2024 and 2023, the Company incurred legal expenses of $205 and $55, respectively, in efforts to resolve this matter. These legal expenses are included in legal costs and regulatory matter expenses in the consolidated statements of comprehensive income. Clarus Corporation against HAP Trading, LLC and Harsh A. Padia On September 23, 2022, the Company filed a lawsuit in the United States District Court for the Southern District of New York against HAP Trading, LLC and Harsh A. Padia (“HAP Trading”), seeking disgorgement of profits from transactions in the Company’s common stock and related derivative securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended. Clarus Corporation v. Caption Management, LLC, et al. On March 8, 2024, the Company filed a lawsuit in the United States District Court for the Southern District of New York against Caption Management, LLC, Caption Partners II LP, Caption GP, LLC, William Cooper and Jason Strasser (“Caption Management”), seeking disgorgement of profits from transactions in the Company’s stock and related derivative securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended. During the three months ended March 31, 2024, and 2023, the Company incurred legal expenses of $297 and $73, respectively, in the efforts to bring the cases against HAP Trading and Caption Management to trial. These legal expenses are included in legal costs and regulatory matter expenses in the consolidated statements of comprehensive income. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
INCOME TAXES | NOTE 17. INCOME TAXES The Company’s U.S. federal statutory tax rate of 21% and its foreign operations have statutory tax rates of approximately 23% in Austria, 28% in New Zealand, and 30% in Australia. The difference between the Company’s estimated effective tax rate of 11.6% for the three months ended March 31, 2024, and the U.S. federal statutory tax rate of 21% was primarily due to the impact of stock compensation, research and experimentation expenditures and credits, and discrete stock option shortfalls in the first quarter of 2024. As of December 31, 2023, the Company’s gross deferred tax asset was $39,893. The Company has recorded a valuation allowance of $714, resulting in a net deferred tax asset of $39,179, before deferred tax liabilities of $34,434. The Company has provided a valuation allowance against a portion of the deferred tax assets as of March 31, 2024 and December 31, 2023, because the ultimate realization of those assets did not meet the more-likely-than-not criteria. Part of the Company’s deferred tax assets consist of net operating loss carryforwards (“NOLs”) for federal tax purposes. If a change in control were to occur, these could be limited under Section 382 of the Internal Revenue Code of 1986 (“Code”), as amended. In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible and net operating loss and credit carryforwards expire. The estimates and judgments associated with the Company’s valuation allowance on deferred tax assets are considered critical due to the amount of deferred tax assets recorded by the Company on its consolidated balance sheet and the judgment required in determining the Company’s future taxable income. The need for a valuation allowance is reassessed at each interim reporting period. As of December 31, 2023, the Company had NOLs and research and experimentation credit for U.S. federal income tax purposes of $7,699 and $2,997, respectively. The Company believes its U.S. Federal NOLs will offset a portion of its future U.S. Federal income taxes. NOLs available to offset taxable income, subject to compliance with Section 382 of the Code, begin to expire based upon the following schedule: Net Operating Loss Carryforward Expiration Dates December 31, 2023 Expiration Dates December 31, Net Operating Loss Amount 2024 $ - 2025 - 2026 - 2027 and beyond 7,699 Total $ 7,699 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 18. SEGMENT INFORMATION We operate our business structure within two segments. These segments are defined based on the internal financial reporting used by our chief operating decision maker to allocate resources and assess performance. Certain significant selling and general and administrative expenses are not allocated to the segments including non-cash stock compensation expense. Each segment is described below: ● Our Outdoor segment, which includes Black Diamond Equipment and PIEPS, is a global leader in designing, manufacturing, and marketing innovative outdoor engineered equipment and apparel for climbing, mountaineering, trail running, backpacking, skiing, and a wide range of other year-round outdoor recreation activities. Our Outdoor segment offers a broad range of products including: high-performance, activity-based apparel (such as shells, insulation, midlayers, pants and logowear); rock-climbing footwear and equipment (such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear); technical backpacks and high-end day packs; trekking poles; headlamps and lanterns; and gloves and mittens. We also offer advanced skis, ski poles, ski skins, and snow safety products, including avalanche airbag systems, avalanche transceivers, shovels, and probes. ● Our Adventure segment, which includes Rhino-Rack, MAXTRAX, and TRED, is a manufacturer of highly-engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, recovery boards and accessories in Australia and New Zealand and a growing presence in the United States. As noted above, the Company has a wide variety of technical outdoor equipment and lifestyle products that are sold to a variety of customers in multiple end markets. While there are multiple products sold, the terms and nature of revenue recognition policy is similar for all segments. Financial information for our segments, as well as revenue by geography, which the Company believes provides a meaningful depiction how the nature, timing and uncertainty of revenue are affected by economic factors, is as follows: Three Months Ended March 31, 2024 March 31, 2023 Sales to external customers: Outdoor Domestic sales $ 23,629 $ 21,565 International sales 23,393 31,210 Total Outdoor 47,022 52,775 Adventure Domestic sales 4,655 2,632 International sales 17,634 14,871 Total Adventure 22,289 17,503 Total sales to external customers 69,311 70,278 Segment operating income: Outdoor (1,711) 1,490 Adventure (770) 402 Total segment operating income (2,481) 1,892 Corporate costs (4,293) (4,338) Interest income, net 370 5 Other, net (909) 76 Loss before income tax $ (7,313) $ (2,365) There were no intercompany sales between the Outdoor and Adventure segments for the periods presented. Total assets by segment, as of March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Outdoor $ 160,170 $ 163,083 Adventure 174,920 185,023 Corporate 41,886 9,948 $ 376,976 $ 358,054 Capital expenditures, depreciation and amortization by segment is as follows. Three Months Ended March 31, 2024 March 31, 2023 Capital expenditures: Outdoor $ 720 $ 323 Adventure 291 409 Total capital expenditures $ 1,011 $ 732 Depreciation: Outdoor $ 673 $ 673 Adventure 353 266 Total depreciation $ 1,026 $ 939 Amortization: Outdoor $ 286 $ 258 Adventure 2,163 2,510 Total amortization $ 2,449 $ 2,768 |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 3 Months Ended |
Mar. 31, 2024 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements of Clarus Corporation and subsidiaries (which may be referred to as the “Company,” “Clarus,” “we,” “us” or “our”) as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024 and 2023, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), instructions to the Quarterly Report on Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments, except otherwise disclosed) necessary for a fair presentation of the unaudited condensed consolidated financial statements have been included. The results for the three months ended March 31, 2024 are not necessarily indicative of the results to be obtained for the year ending December 31, 2024. These interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on March 7, 2024. |
Nature of Business | Nature of Business Headquartered in Salt Lake City, Utah, we are a global leading designer, developer, manufacturer and distributor of best-in-class outdoor equipment and lifestyle products focused on the outdoor enthusiast markets. Each of our brands has a long history of continuous product innovation for core and everyday users alike. The Company’s products are principally sold globally under the Black Diamond®, Rhino-Rack®, MAXTRAX®, and TRED Outdoors® brand names through outdoor specialty and online retailers, our own websites, distributors and original equipment manufacturers. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The more significant estimates relate to the fair value of net assets acquired in business combinations, provision for excess or obsolete inventory, allowance for credit losses, and valuation of contingent consideration liabilities, deferred tax assets, long-lived assets, goodwill and indefinite-lived intangible assets, and other intangible assets. We base our estimates on historical experience, projected future cash flows, and other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. Specifically, legal costs associated with specific legal matters which were recorded in selling, general, and administrative expenses are now presented in legal costs and regulatory matter expenses in the consolidated statements of comprehensive income. See Note 16 for discussion regarding legal matters. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ACQUISITIONS | |
Schedule Of Purchase Price Allocation | TRED October 9, 2023 Number of Shares Estimated Fair Value Cash paid - $ 5,659 Issuance of shares of Clarus Corporation 179 1,069 Contingent consideration - 121 Total purchase consideration 179 $ 6,849 Assets acquired and liabilities assumed Assets Cash $ 11 Accounts receivable 1,000 Inventories 1,006 Prepaid and other current assets 11 Property and equipment 195 Other intangible assets 3,305 Goodwill 2,832 Total assets 8,360 Liabilities Accounts payable and accrued liabilities 638 Deferred income taxes 873 Total liabilities 1,511 Net Book Value Acquired $ 6,849 |
Schedule Of Intangible Assets Other Than Goodwill Acquired | TRED Average Gross Useful Life Intangibles subject to amortization Customer relationships $ 1,249 8.0 years Product technologies 394 6.0 years Tradenames 1,662 12.0 years Intangibles not subject to amortization Trademarks - N/A $ 3,305 9.8 years |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
DISCONTINUED OPERATIONS | |
Schedule of disposal group | December 31, 2023 Accounts receivable, net $ 9,914 Inventories 44,208 Prepaid and other current assets 2,931 Total current assets held for sale 57,053 Property and equipment, net 24,075 Other intangible assets, net 4,926 Indefinite-lived intangible assets 24,500 Goodwill 26,715 Other long-term assets 15 Total assets held for sale $ 137,284 Accounts payable $ 2,441 Accrued liabilities 3,303 Total current liabilities held for sale 5,744 Total liabilities held for sale $ 5,744 Three Months Ended March 31, 2024 March 31, 2023 Sales $ 10,585 $ 27,106 Cost of goods sold (6,543) (16,593) Selling, general and administrative (2,062) (3,337) Restructuring charges (3) - Transaction costs (3,440) (37) Interest expense, net (2,455) (2,751) Other, net (38) 9 (Loss) income from operations of discontinued operations (3,956) 4,397 Gain on sale of discontinued operations 40,585 - Income from discontinued operations before taxes 36,629 4,397 Income tax expense 8,283 768 Income from discontinued operations, net of tax $ 28,346 $ 3,629 Three Months Ended March 31, 2024 March 31, 2023 Depreciation of property and equipment - 852 Amortization of intangible assets - 508 Stock-based compensation 5 48 Purchase of property and equipment 886 739 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
Schedule of Inventories | March 31, 2024 December 31, 2023 Finished goods $ 76,286 $ 78,887 Work-in-process 479 295 Raw materials and supplies 11,865 12,227 $ 88,630 $ 91,409 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
PROPERTY AND EQUIPMENT | |
Schedule of Property And Equipment | March 31, 2024 December 31, 2023 Land $ 2,850 $ 2,850 Building and improvements 6,478 6,476 Furniture and fixtures 6,176 6,195 Computer hardware and software 8,070 8,092 Machinery and equipment 18,157 18,119 Construction in progress 1,779 1,224 43,510 42,956 Less accumulated depreciation (27,165) (26,369) $ 16,345 $ 16,587 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule Of Goodwill | Outdoor Adventure Total Goodwill $ 29,507 $ 91,375 $ 120,882 Accumulated goodwill impairments (29,507) (52,071) (81,578) Balance at December 31, 2023 - 39,320 39,320 Impact of foreign currency exchange rates - (1,020) (1,020) Balance at March 31, 2024 $ - $ 38,300 $ 38,300 |
Schedule Of Indefinite Lived Intangible Assets | Balance at December 31, 2023 $ 58,527 Impact of foreign currency exchange rates (1,630) Balance at March 31, 2024 $ 56,897 |
Schedule Of Trademarks | March 31, 2024 December 31, 2023 Black Diamond $ 19,600 $ 19,600 PIEPS 3,012 3,080 Rhino-Rack 24,644 25,767 MAXTRAX 9,641 10,080 $ 56,897 $ 58,527 |
Schedule Of Definite Lived Intangible Assets, Net | Gross balance at December 31, 2023 $ 82,103 Disposal (163) Impact of foreign currency exchange rates (2,620) Gross balance at March 31, 2024 $ 79,320 |
Schedule Of Intangible Assets, Net Of Amortization | March 31, 2024 Gross Accumulated Amortization Net Weighted Average Useful Life Intangibles subject to amortization Customer relationships $ 59,383 $ (31,475) $ 27,908 13.8 years Product technologies 17,292 (9,305) 7,987 10.0 years Tradenames 1,698 (67) 1,631 12.0 years Core technologies 947 (947) - 10.0 years $ 79,320 $ (41,794) $ 37,526 12.9 years December 31, 2023 Gross Accumulated Amortization Net Weighted Average Useful Life Customer relationships $ 61,215 $ (30,478) $ 30,737 13.8 years Product technologies 18,003 (9,014) 8,989 10.0 years Tradenames 1,938 (198) 1,740 11.4 years Core technologies 947 (947) - 10.0 years $ 82,103 $ (40,637) $ 41,466 12.9 years |
Future Amortization Expense For Definite-Lived Intangible Assets | Years Ending December 31, Amortization Expense 2024 (excluding the three months ended March 31, 2024) $ 7,156 2025 8,038 2026 6,276 2027 4,568 2028 3,360 2029 2,522 Thereafter 5,606 $ 37,526 |
ACCRUED LIABILITIES AND OTHER_2
ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES | |
Schedule Of Accrued Liabilities | March 31, 2024 December 31, 2023 Accrued payroll and related items $ 3,487 $ 3,964 Accrued bonus 1,123 2,047 Designated forward exchange contracts - 221 Accrued warranty 1,757 1,648 Current lease liabilities 3,198 3,179 Accrued commissions 538 344 Contingent consideration liabilities 123 129 Restructuring liabilities 643 1,246 Other 11,572 11,802 $ 22,441 $ 24,580 |
Schedule Of Other Long-Term Liabilities | March 31, 2024 December 31, 2023 Long-term lease liability $ 12,066 $ 13,030 Other 1,101 1,130 $ 13,167 $ 14,160 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LONG-TERM DEBT | |
Schedule of Long-Term Debt | March 31, 2024 December 31, 2023 Revolving credit facility (a) $ - $ 10,375 Other debt (b) 81 40 Term loan (c) - 109,375 Debt issuance costs - - 81 119,790 Less current portion (44) (119,790) $ 37 $ - |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule Of Contracts Designated As Hedged Instruments | March 31, 2024 Notional Latest Amount Maturity Foreign exchange contracts - Canadian Dollars $6,434 February 2025 Foreign exchange contracts - Euros € 14,672 February 2025 December 31, 2023 Notional Latest Amount Maturity Foreign exchange contracts - Canadian Dollars $7,925 February 2025 Foreign exchange contracts - Euros € 20,612 February 2025 |
Schedule Of Derivative Instruments Fair Value And Balance Sheet Classification | Classification March 31, 2024 December 31, 2023 Derivative instruments in asset positions: Designated forward exchange contracts Prepaid and other current assets $ 300 $ - Derivative instruments in liability positions: Designated forward exchange contracts Accrued liabilities $ - $ 221 Designated forward exchange contracts Other long-term liabilities $ - $ 35 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of Accumulated Other Comprehensive Loss | Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2023 $ (15,223) $ (191) $ (15,414) Other comprehensive (loss) income before reclassifications (4,035) 426 (3,609) Amounts reclassified from other comprehensive (loss) income - (62) (62) Net current period other comprehensive (loss) income (4,035) 364 (3,671) Balance as of March 31, 2024 $ (19,258) $ 173 $ (19,085) The following table sets forth the changes in AOCI, net of tax, for the three months ended March 31, 2023: Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2022 $ (17,628) $ (57) $ (17,685) Other comprehensive loss before reclassifications (1,021) (91) (1,112) Amounts reclassified from other comprehensive loss - 12 12 Net current period other comprehensive loss (1,021) (79) (1,100) Balance as of March 31, 2023 $ (18,649) $ (136) $ (18,785) |
Schedule of effects on net income of amounts reclassified from unrealized gains (losses) on cash flow hedges for foreign exchange contracts | Gains (losses) reclassified from AOCI to the Consolidated Statements of Comprehensive Income Affected line item in the Consolidated Three Months Ended Statements of Comprehensive Income March 31, 2024 March 31, 2023 Foreign exchange contracts: Sales $ 81 $ (16) Less: Income tax expense (benefit) 19 (4) Amount reclassified, net of tax $ 62 $ (12) Total reclassifications from AOCI $ 62 $ (12) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE MEASUREMENTS | |
Schedule Of Assets And Liabilities Measured On A Recurring Basis | March 31, 2024 Level 1 Level 2 Level 3 Total Assets Designated forward exchange contracts $ - $ 300 $ - $ 300 $ - $ 300 $ - $ 300 Liabilities Designated forward exchange contracts $ - $ - $ - $ - Contingent consideration liabilities $ - $ - $ 123 $ 123 $ - $ - $ 123 $ 123 December 31, 2023 Level 1 Level 2 Level 3 Total Assets Designated forward exchange contracts $ - $ - $ - $ - $ - $ - $ - $ - Liabilities Designated forward exchange contracts $ - $ 256 $ - $ 256 Contingent consideration liabilities $ - $ - $ 129 $ 129 $ - $ 256 $ 129 $ 385 |
Schedule Of Contingent Consideration Measured At Fair Value On Recurring Basis | TRED Balance at December 31, 2023 $ 129 Impact of foreign currency exchange rates (6) Balance at March 31, 2024 $ 123 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS (LOSS) PER SHARE | |
Schedule Of Reconciliation Of Basic And Diluted Shares Of Common Stock Outstanding Used In Calculation Of Earnings (Loss) Per Share | Three Months Ended March 31, 2024 March 31, 2023 Weighted average shares outstanding - basic 38,208 37,137 Effect of dilutive stock awards - - Weighted average shares outstanding - diluted 38,208 37,137 Loss from continuing operations per share: Basic $ (0.17) $ (0.05) Diluted (0.17) (0.05) Income from discontinued operations per share: Basic $ 0.74 $ 0.09 Diluted 0.74 0.09 Net income per share: Basic $ 0.57 $ 0.04 Diluted 0.57 0.04 |
STOCK-BASED COMPENSATION PLAN (
STOCK-BASED COMPENSATION PLAN (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCK-BASED COMPENSATION PLAN | |
Schedule Of Valuation Assumptions Used In Computing Fair Value Of Stock-Based Awards | Number of options 1,140 Option vesting period 2 Years Grant price (per share) $6.75 Dividend yield 1.48% Expected volatility (a) 50.30% Risk-free interest rate 4.08% Expected life (years) (b) 5.75 Weighted average fair value (per share) $3.06 (a) Expected volatility is based upon the Company’s historical volatility. (b) The expected term was determined based upon the underlying terms of the awards and the category and employment history of employee award recipient. |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
RESTRUCTURING | |
Schedule of pre-tax restructuring charges by segment | Outdoor Adventure Corporate Total Balance at December 31, 2023 1,246 - - 1,246 Charges to expense: Employee termination benefits $ 212 $ 146 $ - $ 358 Exit costs 12 - - 12 Total restructuring charges $ 224 $ 146 $ - $ 370 Cash payments and non-cash charges: Cash payments (815) (146) - (961) Asset impairments (12) - - (12) Balance at March 31, 2024 $ 643 $ - $ - $ 643 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
Summary Of Tax Credit Carryforwards | Net Operating Loss Carryforward Expiration Dates December 31, 2023 Expiration Dates December 31, Net Operating Loss Amount 2024 $ - 2025 - 2026 - 2027 and beyond 7,699 Total $ 7,699 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT INFORMATION | |
Financial Information for Segments | Three Months Ended March 31, 2024 March 31, 2023 Sales to external customers: Outdoor Domestic sales $ 23,629 $ 21,565 International sales 23,393 31,210 Total Outdoor 47,022 52,775 Adventure Domestic sales 4,655 2,632 International sales 17,634 14,871 Total Adventure 22,289 17,503 Total sales to external customers 69,311 70,278 Segment operating income: Outdoor (1,711) 1,490 Adventure (770) 402 Total segment operating income (2,481) 1,892 Corporate costs (4,293) (4,338) Interest income, net 370 5 Other, net (909) 76 Loss before income tax $ (7,313) $ (2,365) |
Total Assets by Segment | March 31, 2024 December 31, 2023 Outdoor $ 160,170 $ 163,083 Adventure 174,920 185,023 Corporate 41,886 9,948 $ 376,976 $ 358,054 |
Capital Expenditures, Depreciation and Amortization by Segment | Three Months Ended March 31, 2024 March 31, 2023 Capital expenditures: Outdoor $ 720 $ 323 Adventure 291 409 Total capital expenditures $ 1,011 $ 732 Depreciation: Outdoor $ 673 $ 673 Adventure 353 266 Total depreciation $ 1,026 $ 939 Amortization: Outdoor $ 286 $ 258 Adventure 2,163 2,510 Total amortization $ 2,449 $ 2,768 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) shares in Thousands, $ in Thousands, $ in Thousands | 3 Months Ended | |||||
Oct. 09, 2023 USD ($) shares | Oct. 09, 2023 AUD ($) shares | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Oct. 09, 2023 AUD ($) | |
Business Acquisition [Line Items] | ||||||
Estimated value of contingent consideration | $ 123 | $ 129 | ||||
Net Income (Loss) | 21,884 | $ 1,598 | ||||
Goodwill | $ 38,300 | $ 39,320 | ||||
TRED | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition purchase price | $ 6,849 | $ 10,741 | ||||
Cash paid | $ 5,659 | $ 8,875 | ||||
Number of shares issued | shares | 179 | 179 | ||||
Value of shares issued | $ 1,069 | |||||
Estimated value of contingent consideration | 638 | $ 1,000 | ||||
Contingent consideration, fair value | 121 | $ 189 | ||||
Goodwill | $ 2,832 |
ACQUISITIONS (Schedule Of Purch
ACQUISITIONS (Schedule Of Purchase Price Allocation) (Details) shares in Thousands, $ in Thousands, $ in Thousands | Oct. 09, 2023 USD ($) shares | Oct. 09, 2023 AUD ($) shares | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Assets acquired and liabilities assumed | ||||
Goodwill | $ 38,300 | $ 39,320 | ||
TRED | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 5,659 | $ 8,875 | ||
Issuance of shares of Clarus Corporation (shares) | shares | 179 | 179 | ||
Issuance of shares of Clarus Corporation | $ 1,069 | |||
Contingent consideration, Estimated Fair Value | 121 | |||
Total purchase consideration | 6,849 | |||
Assets acquired and liabilities assumed | ||||
Cash | 11 | |||
Accounts receivable | 1,000 | |||
Inventories | 1,006 | |||
Prepaid and other current assets | 11 | |||
Property and equipment | 195 | |||
Other intangible assets | 3,305 | |||
Goodwill | 2,832 | |||
Total assets | 8,360 | |||
Accounts payable and accrued liabilities | 638 | |||
Deferred income taxes | 873 | |||
Total liabilities | 1,511 | |||
Net Book Value Acquired | $ 6,849 |
ACQUISITIONS (Schedule Of Intan
ACQUISITIONS (Schedule Of Intangible Assets Other Than Goodwill Acquired) (Details) - TRED $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Schedule Of Intangible Assets Other Than Goodwill [Line Items] | |
Intangibles subject to amortization, Average Useful Life | 9 years 9 months 18 days |
Intangibles | $ 3,305 |
Customer Relationships | |
Schedule Of Intangible Assets Other Than Goodwill [Line Items] | |
Intangibles subject to amortization | $ 1,249 |
Intangibles subject to amortization, Average Useful Life | 8 years |
Product Technologies | |
Schedule Of Intangible Assets Other Than Goodwill [Line Items] | |
Intangibles subject to amortization | $ 394 |
Intangibles subject to amortization, Average Useful Life | 6 years |
Trade Names | |
Schedule Of Intangible Assets Other Than Goodwill [Line Items] | |
Intangibles subject to amortization | $ 1,662 |
Intangibles subject to amortization, Average Useful Life | 12 years |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Mar. 31, 2024 | |
DISCONTINUED OPERATIONS | ||
Cash received under the terms | $ 175,674 | |
Pre-tax gain on sale of business | $ 40,585 | |
Held for sale asset | Precision Sport | ||
DISCONTINUED OPERATIONS | ||
Purchase price | $ 175,000 | |
Cash received under the terms | $ 175,674 |
DISCONTINUED OPERATIONS - Carry
DISCONTINUED OPERATIONS - Carrying Values (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Balance sheet disclosure | |
Total current assets held for sale | $ 137,284 |
Total current liabilities held for sale | 5,744 |
Held for sale asset | Precision Sport | |
Balance sheet disclosure | |
Accounts receivable, net | 9,914 |
Inventories | 44,208 |
Prepaid and other current assets | 2,931 |
Total current assets held for sale | 57,053 |
Property and equipment, net | 24,075 |
Other intangible assets, net | 4,926 |
Indefinite-lived intangible assets | 24,500 |
Goodwill | 26,715 |
Other long-term assets | 15 |
Total assets held for sale | 137,284 |
Accounts payable | 2,441 |
Accrued liabilities | 3,303 |
Total current liabilities held for sale | 5,744 |
Total liabilities held for sale | $ 5,744 |
DISCONTINUED OPERATIONS - Resul
DISCONTINUED OPERATIONS - Results of operations and cash flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income statement disclosure | ||
Income from discontinued operations, net of tax | $ 28,346 | $ 3,629 |
Held for sale asset | Precision Sport | ||
Income statement disclosure | ||
Sales | 10,585 | 27,106 |
Cost of goods sold | (6,543) | (16,593) |
Selling, general and administrative | (2,062) | (3,337) |
Restructuring charges | (3) | |
Transaction costs | (3,440) | (37) |
Interest expense, net | (2,455) | (2,751) |
Other, net | (38) | 9 |
(Loss) income from operations of discontinued operations | (3,956) | 4,397 |
Gain on sale of discontinued operations | 40,585 | |
Income from discontinued operations before taxes | 36,629 | 4,397 |
Income tax expense | 8,283 | 768 |
Income from discontinued operations, net of tax | 28,346 | 3,629 |
Discontinued Operation, Alternative Cash Flow Information [Abstract] | ||
Depreciation of property and equipment | 852 | |
Amortization of intangible assets | 508 | |
Stock-based compensation | 5 | 48 |
Purchase of property and equipment | $ 886 | $ 739 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
INVENTORIES | ||
Finished goods | $ 76,286 | $ 78,887 |
Work-in-process | 479 | 295 |
Raw materials and supplies | 11,865 | 12,227 |
Inventories | $ 88,630 | $ 91,409 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 43,510 | $ 42,956 |
Less accumulated depreciation | (27,165) | (26,369) |
Property and equipment | 16,345 | 16,587 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,850 | 2,850 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,478 | 6,476 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,176 | 6,195 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,070 | 8,092 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,157 | 18,119 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,779 | $ 1,224 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
PROPERTY AND EQUIPMENT | ||
Depreciation expense continuing operations | $ 1,026 | $ 939 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | ||
Amortization expense continuing operations | $ 2,449 | $ 2,768 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Goodwill [Line Items] | ||
Goodwill | $ 120,882 | |
Accumulated goodwill impairments | (81,578) | |
Beginning Balance | $ 39,320 | |
Impact of foreign currency exchange rates | (1,020) | |
Ending Balance | 38,300 | |
Outdoor | ||
Goodwill [Line Items] | ||
Goodwill | 29,507 | |
Accumulated goodwill impairments | (29,507) | |
Adventure | ||
Goodwill [Line Items] | ||
Goodwill | 91,375 | |
Accumulated goodwill impairments | $ (52,071) | |
Beginning Balance | 39,320 | |
Impact of foreign currency exchange rates | (1,020) | |
Ending Balance | $ 38,300 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Indefinite Lived Intangible Assets) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
GOODWILL AND INTANGIBLE ASSETS | |
Beginning balance | $ 58,527 |
Impact of foreign currency exchange rates | (1,630) |
Ending balance | $ 56,897 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS (Schedule of Trademarks) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks | $ 56,897 | $ 58,527 |
Black Diamond Trademark | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks | 19,600 | 19,600 |
PIEPS Trademark | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks | 3,012 | 3,080 |
Rhino-Rack Trademark | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks | 24,644 | 25,767 |
MAXTRAX Trademark | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks | $ 9,641 | $ 10,080 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Definite Lived Intangible Assets, Net) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
GOODWILL AND INTANGIBLE ASSETS | |
Gross beginning balance | $ 82,103 |
Disposal | (163) |
Impact of foreign currency exchange rates | (2,620) |
Gross ending balance | $ 79,320 |
GOODWILL AND INTANGIBLE ASSET_7
GOODWILL AND INTANGIBLE ASSETS (Schedule Of Intangible Assets, Net Of Amortization) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 79,320 | $ 82,103 |
Accumulated Amortization | (41,794) | (40,637) |
Intangible assets, net | $ 37,526 | $ 41,466 |
Weighted Average Useful Life | 12 years 10 months 24 days | 12 years 10 months 24 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 59,383 | $ 61,215 |
Accumulated Amortization | (31,475) | (30,478) |
Intangible assets, net | $ 27,908 | $ 30,737 |
Weighted Average Useful Life | 13 years 9 months 18 days | 13 years 9 months 18 days |
Product technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 17,292 | $ 18,003 |
Accumulated Amortization | (9,305) | (9,014) |
Intangible assets, net | $ 7,987 | $ 8,989 |
Weighted Average Useful Life | 10 years | 10 years |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,698 | $ 1,938 |
Accumulated Amortization | (67) | (198) |
Intangible assets, net | $ 1,631 | $ 1,740 |
Weighted Average Useful Life | 12 years | 11 years 4 months 24 days |
Core technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 947 | $ 947 |
Accumulated Amortization | $ (947) | $ (947) |
Weighted Average Useful Life | 10 years | 10 years |
GOODWILL AND INTANGIBLE ASSET_8
GOODWILL AND INTANGIBLE ASSETS (Future Amortization Expense For Definite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
GOODWILL AND INTANGIBLE ASSETS | ||
2024 (excluding the three months ended March 31, 2024) | $ 7,156 | |
2025 | 8,038 | |
2026 | 6,276 | |
2027 | 4,568 | |
2028 | 3,360 | |
2029 | 2,522 | |
Thereafter | 5,606 | |
Intangible assets, net | $ 37,526 | $ 41,466 |
ACCRUED LIABILITIES AND OTHER_3
ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES | ||
Accrued payroll and related items | $ 3,487 | $ 3,964 |
Accrued bonus | 1,123 | 2,047 |
Designated forward exchange contracts | 221 | |
Accrued warranty | 1,757 | 1,648 |
Current lease liabilities | 3,198 | 3,179 |
Accrued commissions | 538 | 344 |
Contingent consideration liabilities | 123 | 129 |
Restructuring liabilities | 643 | 1,246 |
Other | 11,572 | 11,802 |
Accrued liabilities | $ 22,441 | $ 24,580 |
ACCRUED LIABILITIES AND OTHER_4
ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES (Schedule Of Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES | ||
Long-term lease liability | $ 12,066 | $ 13,030 |
Other | 1,101 | 1,130 |
Other long-term liabilities | $ 13,167 | $ 14,160 |
LONG-TERM DEBT (Components Of L
LONG-TERM DEBT (Components Of Long-Term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Components of long-term debt | ||
Total carrying amount of long-term debt | $ 81 | $ 119,790 |
Less current portion | (44) | $ (119,790) |
Long-term debt, net | 37 | |
Restated Credit Agreement | ||
Components of long-term debt | ||
Maximum borrowing capacity | 600,000 | |
Available additional borrowing capacity | $ 175,000 | |
Maturity date | Apr. 18, 2027 | |
Foreign Credit Facility | Minimum | ||
Components of long-term debt | ||
Interest rate at end of period | 3.20% | 3.20% |
Foreign Credit Facility | Maximum | ||
Components of long-term debt | ||
Interest rate at end of period | 7% | |
Revolving Credit Facility | ||
Components of long-term debt | ||
Credit facility | $ 10,375 | |
Revolving Credit Facility | Restated Credit Agreement | ||
Components of long-term debt | ||
Maximum borrowing capacity | $ 300,000 | |
Revolving Credit Facility | Restated Credit Agreement | Minimum | ||
Components of long-term debt | ||
Interest rate at end of period | 7.70% | |
Revolving Credit Facility | Restated Credit Agreement | Maximum | ||
Components of long-term debt | ||
Interest rate at end of period | 9.80% | |
Foreign Credit Facility | ||
Components of long-term debt | ||
Credit facility | 81 | $ 40 |
Term Facility | ||
Components of long-term debt | ||
Term loan | $ 109,375 | |
Term Facility | Restated Credit Agreement | ||
Components of long-term debt | ||
Maximum borrowing capacity | $ 125,000 | |
Interest rate at end of period | 7.70% | |
Term Facility | Foreign Credit Facility | ||
Components of long-term debt | ||
Maturity date | Aug. 08, 2024 | |
Letter Of Credit | Restated Credit Agreement | ||
Components of long-term debt | ||
Maximum borrowing capacity | $ 5,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Financial Instruments | ||
Gain (loss) on derivatives | $ 300 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total other (expense) income, net | |
Revenue | $ 69,311 | $ 70,278 |
Maximum | ||
Derivative Financial Instruments | ||
Remaining maturity of derivatives | 1 year | |
Reclassification of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Cash Flow Hedges | ||
Derivative Financial Instruments | ||
Revenue | $ 81 | $ (16) |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule Of Contracts Designated As Hedged Instruments) (Details) - Designated as Hedging Instrument € in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 CAD ($) | Dec. 31, 2023 CAD ($) | Mar. 31, 2024 EUR (€) | Dec. 31, 2023 EUR (€) | |
Canadian Dollars | ||||
Derivative Instruments and Hedging Activities Disclosures | ||||
Foreign exchange contracts, Notional Amount | $ | $ 6,434 | $ 7,925 | ||
Foreign exchange contracts, Latest Maturity | Feb. 01, 2025 | Feb. 01, 2025 | ||
Euros | ||||
Derivative Instruments and Hedging Activities Disclosures | ||||
Foreign exchange contracts, Notional Amount | € | € 14,672 | € 20,612 | ||
Foreign exchange contracts, Latest Maturity | Feb. 01, 2025 | Feb. 01, 2025 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule Of Derivative Instruments Fair Value And Balance Sheet Classification) (Details) - Forward exchange contracts - Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Prepaid and other current assets | ||
Derivative Financial Instruments | ||
Derivative instruments in asset positions, Forward exchange contracts | $ 300 | |
Accrued liabilities | ||
Derivative Financial Instruments | ||
Derivative instruments in liability positions, Forward exchange contracts | $ 221 | |
Other long-term liabilities | ||
Derivative Financial Instruments | ||
Derivative instruments in liability positions, Forward exchange contracts | $ 35 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Components Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Loss | ||
Balance | $ (15,414) | |
Net current period other comprehensive (loss) income | (3,671) | $ (1,100) |
Balance | (19,085) | |
AOCI Including Portion Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Loss | ||
Balance | (15,414) | (17,685) |
Other comprehensive (loss) income before reclassifications | (3,609) | (1,112) |
Amounts reclassified from other comprehensive (loss) income | (62) | 12 |
Net current period other comprehensive (loss) income | (3,671) | (1,100) |
Balance | (19,085) | (18,785) |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Loss | ||
Balance | (15,223) | (17,628) |
Other comprehensive (loss) income before reclassifications | (4,035) | (1,021) |
Net current period other comprehensive (loss) income | (4,035) | (1,021) |
Balance | (19,258) | (18,649) |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Loss | ||
Balance | (191) | (57) |
Other comprehensive (loss) income before reclassifications | 426 | (91) |
Amounts reclassified from other comprehensive (loss) income | (62) | 12 |
Net current period other comprehensive (loss) income | 364 | (79) |
Balance | $ 173 | $ (136) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS (Reclassification Out Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Sales | $ 69,311 | $ 70,278 |
Less: Income tax expense (benefit) | (851) | (334) |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Total reclassifications from AOCI | 62 | (12) |
Reclassification of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Sales | 81 | (16) |
Less: Income tax expense (benefit) | 19 | (4) |
Total reclassifications from AOCI | $ 62 | $ (12) |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule Of Assets And Liabilities Measured On A Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Designated forward exchange contract, assets | $ 300 | |
Designated forward exchange contracts, liabilities | $ 256 | |
Contingent consideration liabilities | 123 | 129 |
Assets | 300 | |
Liabilities | 123 | 385 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Designated forward exchange contract, assets | ||
Designated forward exchange contracts, liabilities | ||
Contingent consideration liabilities | ||
Assets | ||
Liabilities | ||
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Designated forward exchange contract, assets | 300 | |
Designated forward exchange contracts, liabilities | 256 | |
Assets | 300 | |
Liabilities | 256 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Designated forward exchange contract, assets | ||
Designated forward exchange contracts, liabilities | ||
Contingent consideration liabilities | 123 | 129 |
Assets | ||
Liabilities | $ 123 | $ 129 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) | Mar. 31, 2024 |
Contingent Consideration | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Discount rate | 0.115 |
FAIR VALUE MEASUREMENTS (Sche_2
FAIR VALUE MEASUREMENTS (Schedule Of Contingent Consideration Measured At Fair Value On Recurring Basis) (Details) - Contingent Consideration - TRED $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |
Balance at beginning of period | $ 129 |
Impact of foreign currency exchange rates | (6) |
Balance at end of period | $ 123 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | 3 Months Ended | |||
Apr. 30, 2024 | Aug. 06, 2018 | Mar. 31, 2024 | Mar. 31, 2023 | |
Dividend per quarter | $ 0.025 | |||
Dividend annualized | $ 0.10 | |||
Dividends per share | $ 0.025 | $ 0.025 | ||
Subsequent Event | ||||
Dividend date declared | Apr. 30, 2024 | |||
Dividend date to be paid | May 20, 2024 | |||
Dividend date of record | May 10, 2024 | |||
Dividends per share | $ 0.025 |
EARNINGS (LOSS) PER SHARE (Narr
EARNINGS (LOSS) PER SHARE (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EARNINGS (LOSS) PER SHARE | ||
Antidilutive securities excluded from computation of earnings per share, number of shares | 5,047 | 3,713 |
EARNINGS (LOSS) PER SHARE (Sche
EARNINGS (LOSS) PER SHARE (Schedule Of Reconciliation Of Basic And Diluted Shares Of Common Stock Outstanding Used In Calculation Of Earnings (Loss) Per Share) (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EARNINGS (LOSS) PER SHARE | ||
Weighted average shares outstanding - basic | 38,208 | 37,137 |
Weighted average shares outstanding - diluted | 38,208 | 37,137 |
Income from continuing operations per share - Basic | $ (0.17) | $ (0.05) |
Income from continuing operations per share - Diluted | (0.17) | (0.05) |
Income from discontinued operations per share - Basic | 0.74 | 0.09 |
Income from discontinued operations per share - Diluted | 0.74 | 0.09 |
Basic net income per share | 0.57 | 0.04 |
Diluted net income per share | $ 0.57 | $ 0.04 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLAN (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 11, 2026 | Mar. 11, 2025 | Mar. 11, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares of common stock that may be granted through awards to any employee in any calendar year | 500 | ||||
Stock options granted fair value | $ 3,486 | ||||
Unrecognized compensation cost related to unvested stock options | $ 3,997 | ||||
Unvested restricted stock awards | 1,600 | ||||
Unvested stock options | 1,152 | ||||
Unrecognized compensation cost related to unvested restricted stock awards | $ 7,059 | ||||
Total non-cash stock compensation expense | $ 1,178 | $ 1,286 | |||
2015 Plan | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of stock options issued under a plan | 1,140 | ||||
Vesting period | 2 years | ||||
Stock options, term of expiration | 10 years | ||||
Grant price (per share) | $ 6.75 | ||||
2015 Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted | 100 | ||||
Grant price (per share) | $ 6.75 | ||||
Fair value of awards | $ 675 | ||||
Expected term of awards | 2 years | ||||
2015 Plan | Restricted Stock | Forecast | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vested | 50 | ||||
Awards non-forfeitable | 50 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLAN (Schedule Of Valuation Assumptions Used In Computing Fair Value Of Stock-Based Awards) (Details) - 2015 Plan - Employee Stock Option [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of options | shares | 1,140 |
Option vesting period | 2 years |
Grant price (per share) | $ 6.75 |
Dividend yield | 1.48% |
Expected volatility | 50.30% |
Risk-free interest rate | 4.08% |
Expected term (years) | 5 years 9 months |
Weighted average fair value (per share) | $ 3.06 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Restructuring | |||
Cumulative restructuring charges | $ 3,593 | ||
Charges to expense: | |||
Employee termination benefits | 358 | ||
Exit costs | 12 | ||
Total restructuring charges | 370 | $ 0 | |
Cash payments and non-cash charges: | |||
Cash payments | (961) | ||
Asset impairments | (12) | ||
Restructuring charges, payments and remaining liabilities | 643 | $ 1,246 | |
Operating Segments | Outdoor | |||
Charges to expense: | |||
Employee termination benefits | 212 | ||
Exit costs | 12 | ||
Total restructuring charges | 224 | ||
Cash payments and non-cash charges: | |||
Cash payments | (815) | ||
Asset impairments | (12) | ||
Restructuring charges, payments and remaining liabilities | 643 | $ 1,246 | |
Operating Segments | Adventure | |||
Charges to expense: | |||
Employee termination benefits | 146 | ||
Total restructuring charges | 146 | ||
Cash payments and non-cash charges: | |||
Cash payments | $ (146) |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND LEGAL MATTERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 18, 2023 | Oct. 12, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Clarus Corporation v. Caption Management, LLC, et al. | ||||
Loss Contingencies [Line Items] | ||||
Legal expenses | $ 297 | $ 73 | ||
Loss From Failure To Meet Statutory Reporting Obligations Under The Consumer Product Safety Act | ||||
Loss Contingencies [Line Items] | ||||
Monetary penalties to out of send mode | $ 16,135 | |||
Monetary penalties to send mode into search mode | $ 9,000 | |||
Accrued loss contingency | 2,500 | |||
Legal expenses | $ 205 | $ 55 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Income Taxes | ||
Foreign statutory tax rate, foreign operations | 21% | |
Net operating loss carryforwards for U.S. federal income tax purposes | $ 7,699 | |
Research and experimentation credit carryforwards | $ 2,997 | |
Estimated effective tax rate | 11.60% | |
Statutory tax rate | 21% | |
Gross deferred tax asset | $ 39,893 | |
Valuation allowance | 714 | |
Net deferred tax asset | 39,179 | |
Deferred tax liabilities | $ 34,434 | |
Austrian Ministry Of Finance | ||
Income Taxes | ||
Foreign statutory tax rate, foreign operations | 23% | |
Inland Revenue Department, New Zealand | ||
Income Taxes | ||
Foreign statutory tax rate, foreign operations | 28% | |
Australian Taxation Office | ||
Income Taxes | ||
Foreign statutory tax rate, foreign operations | 30% |
INCOME TAXES (Summary Of Tax Cr
INCOME TAXES (Summary Of Tax Credit Carryforwards) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Tax Credit Carryforward | |
Total net operating loss amount | $ 7,699 |
Operating loss carryforward expiration year 2027 and beyond | |
Tax Credit Carryforward | |
Net operating loss amount | $ 7,699 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
SEGMENT INFORMATION | |
Number of segments | 2 |
SEGMENT INFORMATION (Financial
SEGMENT INFORMATION (Financial Information for Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Sales to external customers | $ 69,311 | $ 70,278 |
Total segment operating income | (6,774) | (2,446) |
Transaction costs | (38) | (37) |
Contingent consideration expense | 1,565 | |
Legal costs and regulatory matter expenses | (3,002) | (128) |
Corporate costs | (4,293) | (4,338) |
Interest income, net | 370 | 5 |
Other, net | (909) | 76 |
Loss before income tax | (7,313) | (2,365) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | (2,481) | 1,892 |
Outdoor | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 47,022 | 52,775 |
Outdoor | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | (1,711) | 1,490 |
Adventure | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 22,289 | 17,503 |
Adventure | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total segment operating income | (770) | 402 |
Domestic sales | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 28,284 | 24,197 |
Domestic sales | Outdoor | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 23,629 | 21,565 |
Domestic sales | Adventure | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 4,655 | 2,632 |
International sales | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 41,027 | 46,081 |
International sales | Outdoor | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 23,393 | 31,210 |
International sales | Adventure | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | $ 17,634 | $ 14,871 |
SEGMENT INFORMATION (Total Asse
SEGMENT INFORMATION (Total Assets by Segments) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Assets | $ 376,976 | $ 358,054 |
Outdoor | ||
Segment Reporting Information [Line Items] | ||
Assets | 160,170 | 163,083 |
Adventure | ||
Segment Reporting Information [Line Items] | ||
Assets | 174,920 | 185,023 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 41,886 | $ 9,948 |
SEGMENT INFORMATION (Capital Ex
SEGMENT INFORMATION (Capital Expenditures, Depreciation and Amortization by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 1,011 | $ 732 |
Depreciation | 1,026 | 939 |
Amortization | 2,449 | 2,768 |
Outdoor | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 720 | 323 |
Depreciation | 673 | 673 |
Amortization | 286 | 258 |
Adventure | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 291 | 409 |
Depreciation | 353 | 266 |
Amortization | $ 2,163 | $ 2,510 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 21,884 | $ 1,598 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |