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Black Diamond, Inc

Introduction:

Black Diamond Inc (NASDAQ:BDE) is headquartered in Salt Lake City, Utah. The Company develops, manufactures and distributes technical outdoor equipment and lifestyle products for rock and ice climbers, alpinists, hikers, freeride skiers, outdoor enthusiasts and travelers. The Company’s products are sold through specialty and online retailers throughout the United States, Canada, Europe, Asia, South America, New Zealand and Africa.

Stock Snapshot:

The stock for Black Diamond Inc (NASDAQ:BDE) stood at USD 8.85, representing a total market capitalization of USD 271.97 million. Over the last year the stock has traded between a range of USD 6.92 and USD 10.63. The stock has witnessed an average volume of 81,989 shares over the last three months. The stock has been trading at a P/E ratio of 48.6, a P/S ratio of 1.77 and a P/B ratio of 1.16. The Company has 31.33 million shares outstanding, with a float of 16.63 million.

Competitor Analysis:

Pool Corporation (NASDAQ:POOL) engages in the distribution of swimming pool supplies, equipment, related leisure products, and irrigation and landscape products, primarily in North America and Europe. The stock for the Company stood at USD 42.7, with an average volume of 228,933 shares witnessed over the last three months. The stock has been trading at a P/E ratio of 25.06.
Johnson Outdoors Inc. (NASDAQ:JOUT), together with its subsidiaries, designs, manufactures, and markets seasonal outdoor recreation products used primarily for fishing, diving, paddling, and camping. The stock for the Company stood at USD 20.03, with an average volume of 16,737 shares witnessed over the last three months. The stock has been trading at a P/E ratio of 6.37.

Financial Analysis:

Revenue:

During FY12, the Company reported sales of USD 127 million as compared to USD 109 million; registering a YoY increase of 16.1% . The increase in sales was attributable to an increase in the quantity and average sales price per unit of new and existing climbing and mountain products sold during 9MFY12.

Gross Margin:

During 9MFY12, the company registered gross profit of USD 49.5 million, as compared to gross profit of USD 42.1 million achieved during the corresponding period last year. Consolidated gross margin was 39.0% during 9MFY12, as compared to 38.5% during 9MFY11. The increase in gross margin percentage is primarily driven by the mix of product sold and the distribution channel in which it was sold during 9MFY12, compared to 9MFY11.

Selling, General & Administration Expenses:

For 9MFY12, selling, general and administrative expenses increased 17.1%, to USD 43.4 million, as compared to selling, general and administrative expenses of USD 37.0 million during 9MFY11.

Profitability:

For 9MFY12, the company reported net income of USD 1.4 million, as compared to net income of USD 1.3 million for the corresponding period last year. The company reported basic and diluted earnings per share of USD 0.05 for 6MFY12, as compared to USD 0.06 for the corresponding period last year.

Financial Position:

As of 30th September’ 2012, the Company had total cash of USD 14.29 million, resulting in a cash value of USD 0.46 per share. The company also had total debt of USD 42.34 million, resulting in a debt to equity ratio of 17.38. The company had total book value per share of USD 7.66.

Factors to Watch Out For:

  • Sales up by 16% in the most recent quarter.
  • Completed the acquisition of POC Sweden AB
  • Agreed to acquire PIEPS Holding GmbH and its subsidiaries, which is a leading Austrian designer and marketer of avalanche beacons and snow safety products.