2014 Annual Report
Total Page：16
File Type：pdf, Size：1020Kb
COREY RICH BlackDiamond-Inc.com 2014 ANNUAL REPORT INC_2014_Annual _Report_Cover.indd 1 10/26/15 9:30 AM DEAR FELLOW SHAREHOLDERS EAR FELLOW SHAREHOLDERS: Since initiating our avalanches. Black Diamond Equipment experienced excellent strategic pivot in late 2013, we have executed nearly all results as measured by a substantial amount of new website traf- Dof our objectives. In July 2014, we sold Gregory™, an fi c and also won marketing industry awards for the innovation and asset we purchased for approximately $44.1 million in 2010, for consumer resonance manifested in the campaign. $84.1 million, or 2.4x 2013 sales. We also focused on the prof- 2015 marks Black Diamond Equipment’s recommitment to its ski itability of our Black Diamond® and PIEPS™ brands, as well business, with the complete relaunch of its product positioning, as the streamlining of our operations. Our strong 2014 results allowing retailers and customers to more easily understand and pur- refl ected this execution. chase its collection of products. As such, its upcoming ski products During 2014, we initiated a plan to simplify our business model, will be marketed as full equipment and apparel collections, branded which allowed us to take costs out of our operating platform and tailored to “Free Ride,” “Touring” and “Ski Mountaineering.” and signifi cantly strengthen our balance sheet. We also imple- We entered fi scal 2015 on strong footing mented a series of reorganization steps, and believe we are well-positioned for con- primarily at Black Diamond Equipment tinued long-term growth in these somewhat and PIEPS, designed to reduce sup- challenging and consolidating markets. ply chain complexity; improve gross and However, at a time when there appeared to operating margins; optimize hard good be a scarcity of authentic branded assets SKUs by approximately 25% compared to available to strategic players, we believed 2014; reduce the size of our global oper- the time was right to explore the value of ating platform; consolidate manufacturing our brands in the market. to Salt Lake City, specifi cally for climbing JIMMY CHIN hardware; centralize warehouse space in After a seven-month process, in October Europe; and shift to an OEM model for ski 2015 we sold our POC® brand for $64.6 production. million, or 1.9x 2014 sales, a business we AWARDS ANNUAL STOCKHOLDER acquired in July 2012 for approximately We expect this strategy to improve work- MEETING INFORMATION $44.9 million. The divestiture completed our ing capital effi ciency and to bring other JetForce Technology The Annual Meeting of Stockholders will be Headquarters strategic review process and we now plan held on Friday, December 11, 2015 at 8:00 Black Diamond, Inc. competitive benefi ts, such as improve our Backpacker Editors’ Choice a.m. Eastern Standard Time at the Dolby to maximize shareholder value by focusing 2084 East 3900 South Screening Room located at 1350 Avenue of time to market and allow us to respond Forbes.com “Top 5” Gear for Winter Salt Lake City, UT 84124 COREY RICH the Americas, New York, NY 10019. Detailed our attention on the profi tability of both Black (801) 278-5552 more quickly to sudden shifts in demand. National Geographic Adventure information about the meeting is contained in Diamond Equipment and PIEPS, further sim- Magazine Gear of the Year the Notice of Annual Meeting and Proxy State- Investor Relations Contact Our fourth quarter marked the introduction of our JetForce™ plifying the corporate structure. We expect to redeploy our cash ISPO Award Gold Winner ment sent with a copy of this Annual Report. Liolios Group, Inc. product on a global basis. We believe the product represents assets into potentially unrelated and diversifying investments while Skiing Magazine SIA Hot Gear CORPORATE Scott Liolios or Cody Slach Outside Magazine (949) 574-3860 breakthrough technology with real performance benefi ts. In taking advantage of our substantial tax loss carryforwards. OR Gear of the Show INFORMATION [email protected] fact, the product won two ISPO Gold Awards in 2014. In closing, I would like to announce my intention to retire as Board of Directors Securities Listing Mission Pant Our fourth quarter also encompassed the second fall retail sell- Black Diamond, Inc’s CEO at the end of 2015. For over 25 Warren B. Kanders The Company’s common stock is listed on Executive Chairman the NASDAQ Global Select Market under the ing season of Black Diamond Equipment men’s apparel line and years, I’ve been privileged to lead the company I founded, ISPO Award Gold Winner symbol BDE. Robert R. Schiller the inaugural selling season of the women’s collection, which one of the world’s greatest active outdoor companies, and the Executive Vice Chairman Registrar and Transfer Agent Boundary 107 Ski focused on outerwear. The line marked the introduction of more time is right for me to move on and transfer Black Diamond Michael A. Henning American Stock Transfer & Trust Co. New York, NY signifi cant commercial categories, such as a complete down Equipment to the next generation of leadership. I look forward Powder Magazine Skier’s Choice Financial Consultant Backcountry Magazine Donald L. House Independent Accountants collection, featuring innovative new down-blended insulation to working with our board of directors and management team Gear Guide Select Financial Consultant KPMG, LLP from PrimaLoft®; a completely waterproof, breathable outer- during my transition period. Freeskier Magazine Editor’s Pick Nicholas Sokolow Salt Lake City, UT wear collection, featuring GORE-TEX and Cohaesive™-em- Partner We look forward to a successful future and hope to maintain your Lebow & Sokolow, LLP Legal Counsel bedded hardware; and a comprehensive collection of technical Magnetron Carabiner Kane Kessler, P.C. continued support as we embark on the next phase of our growth. Management women’s product. New York, NY Climbing Magazine Editor’s Choice Peter R. Metcalf Sincerely, Chief Executive Offi cer Black Diamond Equipment’s upgraded marketing team focused Men’s Journal Gear of the Year iF Design Awards Golden Award Mark Ritchie its efforts on three key marketing strategies: building brand aware- Chief Operating Offi cer ness, supporting in-store sell-through and protecting core credibil- Aaron J. Kuehne BLACK DIAMOND, INC. Front Point Shell ity. During the fourth quarter, Black Diamond Equipment launched Chief Financial Offi cer, 2014 ANNUAL REPORT Outside China Magazine Secretary and Treasurer “The Human Factor” digital campaign in partnership with Powder Gear of the Year Peter Metcalf Magazine, which provided a fresh look through multimedia sto- ISPO Award Gold Winner rytelling about how our behavior plays a role in human-triggered Chief Executive Offi cer (Cohaesive System) INC_2014_Annual _Report_Cover.indd 2 10/26/15 9:30 AM UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2014 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 001-34767 BLACK DIAMOND, INC. (Exact name of registrant as specified in its charter) Delaware 58-1972600 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 2084 East 3900 South Salt Lake City, Utah 84124 (Address of principal executive offices) (Zip code) (801) 278-5552 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, par value $.0001 per share NASDAQ Global Select Market Securities registered pursuant to Section 12(g) of the Act: None (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES NO Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. YES NO Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES NO Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES NO Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer Non-accelerated filer Accelerated filer Smaller reporting company Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YES NO The aggregate market value of the voting stock and non-voting common equity held by non-affiliates of the Registrant at June 30, 2014 was approximately $261.4 million based on $11.22 per share, the closing price of the common stock as quoted on the NASDAQ Global Select Market.