Gross margin in the second quarter of 2012 increased to 39.1 percent, compared to 38.9 percent in the year-ago quarter. The 20 basis point increase in gross margin was due to a favorable mix in higher margin products and channel distribution, which augmented margins over the year-ago quarter.
Net loss in the second quarter of 2012 was $1.9 million, or 6 cents per share, compared to a net loss of $0.8 million, or 4 cents per share, in the year-ago quarter. Net loss in the second quarter of 2012 included $0.5 million of non-cash items and $1.1 million in transaction-related costs, compared to $2.1 million of non-cash items in the year-ago quarter. Excluding these items, adjusted net loss before non-cash items in the second quarter of 2012 was $0.3 million, or 1 cent per share, compared to adjusted net income before non-cash items of $1.3 million, or 6 cents per diluted share in the second quarter of 2011.
Adjusted EBITDA (earnings before interest, taxes, other income, depreciation, amortization, non-cash equity compensation and transaction costs) in the second quarter of 2012 was $0.6 million, compared to $1.1 million in the year-ago quarter. Adjusted EBITDA in the second quarter of 2012 excluded $0.4 million of non-cash equity compensation and $1.1 million in transaction costs.
At June 30, 2012, cash and cash equivalents totaled $43.4 million, compared to $2.4 million at December 31, 2011. The increase in cash was primarily attributable to the company's public equity offering completed on February 22, 2012 that resulted in net proceeds of $63.4 million. Total long-term debt including the current portion of long-term debt, was $17.7 million at June 30, 2012, which included $2.2 million outstanding on the company's $35.0 million line of credit, leaving $32.8 million available capacity less outstanding letters of credit.
On July 2, 2012, the company completed the acquisition of POC for a total consideration valued at 311.3 million Swedish kronor (SEK) or approximately $44.9 million. This was comprised of 460,065 shares of Black Diamond common stock and approximately $40.6 million in cash based upon the SEK/USD ($) exchange rate as of the closing date.
"The first half of the year represents our spring/summer product season, and compared to last year, sales were up 16 percent to $78.3 million," said Peter Metcalf, president and CEO of Black Diamond. "This healthy, double-digit sales growth squarely met the high-end of our seasonal guidance, and we attribute this to strong demand for our diverse collection of lifestyle-defining products, our global distribution capabilities and our continued, steady focus on sales and marketing.
"To build upon our diversity, we acquired POC which is widely regarded as one of the most innovative, fastest-growing, and hottest brands in action sports protective gear today. In addition to numerous operational synergies with our Black Diamond global operating platform, we believe that POC's alpine and free-ride ski, as well as mountain and road bike products add to our product diversity and expand the breadth of our multi-seasonal offerings. We are especially excited about our plans to adopt their paradigm-changing innovations in helmet design and safety.
"As we now enter our fall/winter season, we plan to continue reinvesting in Black Diamond as a growing, powerful platform in the outdoor and action sport equipment industry. Among several important strategic initiatives, our expected fall 2013 apparel line launch remains on track. In fact, we have issued purchase orders for sales samples to be assembled, identified key launch dates with our retail partners, and are planning a series of sales and marketing events through the end of the year.
"As we diligently move forward with the POC integration, we have not lost sight of our acquisition strategy and remain enthusiastic about our pipeline of potential opportunities. We are confident in our plan to drive shareholder value and advance Black Diamond as one of the most respected and leading active outdoor equipment companies in the world, while we continue to lead the fight for conservation and access to our public lands."
2012 Outlook Update
Black Diamond has increased its fiscal year 2012 guidance and now expects total sales to range between $173.0 million and $178.0 million, which includes anticipated POC sales from July 2, 2012 but does not include new category launches or the impact from potential additional strategic acquisitions. Although the company expects POC to have a positive net impact on its overall gross margins going forward, due to a one-time step-up in the fair value of inventory as a result of purchase accounting, the company's estimated cost of goods sold needs to reflect the additional cost that will run through the income statement during the remainder of 2012. As a result, Black Diamond is expecting gross margin for fiscal year 2012 to be approximately 37.8 percent.
Net Operating Loss (NOL)
The company estimates that it has available net operating loss ("NOL") carryforwards for U.S. federal income tax purposes of approximately $217.1 million. The company's common stock is subject to a Rights Agreement dated February 7, 2008, intended to assist in limiting the number of 5 percent or more owners and thus reduce the risk of a possible "change of ownership" under Section 382 of the Code. Any such "change of ownership" under these rules would limit or eliminate the ability of the company to use its existing NOLs for federal income tax purposes. There is no guaranty, however, that the Rights Agreement will achieve the objective of preserving the value of the NOLs.
Aucun commentaire:
Enregistrer un commentaire