Black Diamond targeting 2013 for launch of technical outdoor apparel
Black Diamond Inc, a leading provider of outdoor recreation equipment and active lifestyle products, announced preliminary sales for the fourth quarter and full year ended December 31, 2010.
While earnings will not be announced until the audit of the Company's 2010 results is completed, Black Diamond expects to report fourth quarter consolidated sales of approximately $34 million and full-year pro forma sales of approximately $125 million.
Pro forma sales include both Black Diamond Equipmen and Gregory Mountain Products for periods prior to their May 28, 2010 acquisition by Black Diamond. Included in this press release is a reconciliation of consolidated sales to pro forma sales expected to be reported for the three and twelve months ended December 31, 2010 compared to the same periods in 2009.
Black Diamond also announced that, in addition to its FY2011 budget, it has also recently completed a Baseline Strategic Plan for FY2011-FY2015. The Baseline Plan envisions 12.5% compounded annual sales growth solely from existing categories, and calls for significant operating expense investments in areas such as a new distribution facility, visual merchandising, direct to consumer sales and marketing, product development and infrastructure.
Peter Metcalf, Chief Executive Officer of Black Diamond, Inc., commented, “With the integrations behind us, we are extremely focused on growth. We believe we have a powerful opportunity to both grow the existing business organically and to augment that growth substantially with internally funded and developed initiatives and acquisitions. We believe that we can achieve these rates of growth and realize expanding profitability in years 2013 and beyond without any additional capital.”
The Company also disclosed that it is targeting the fall of 2013 as a possible launch time for an outdoor technical apparel brand, expressing the view that both apparel and footwear represent significant long term opportunities to extend the Black Diamond brand. The Company believes that these categories can have a material impact on the Company's growth over the next decade and beyond.
Mr. Metcalf commented, “The next few years hold an extraordinary opportunity for our brand and the next logical step is apparel. We believe the market demand for Black Diamond apparel is substantial and, if executed well, that this category can become equal to or larger than the balance of our business within 5 years of launch.”
The Company noted that it expects FY2011 sales to range between $135 - $140 million, which does not give effect to new category launches or the impact from possible strategic acquisitions. The Company further noted gross margins are expected to range between 36% and 39% during FY 2011. The Company also expects, despite the planned near-term increase in platform capabilities, to remain profitable, cash flow positive, and self-funding with respect to working capital needs.
“Acquisitions are an important element of our long-term strategic plan and we are intently focused on identifying specific transactions that can accelerate our organic growth, leverage our global operating platform, and add additional value for shareholders. While we are confident that we will prove to be an acquirer of choice, the timing, size and specific impact of acquisitions is unpredictable,” concluded Metcalf.
Black Diamond Inc