Black Diamond Reports Fourth Quarter and Record Full Year 2012 Results

Black Diamond Reports Fourth Quarter and Record Full Year 2012 Results

  2012 Sales Up 21% to $175.9 Million With Adjusted Gross Margin Up 80 Basis
                               Points to 39.5%

      Expects Full Year 2013 Sales to Range Between $216 - $221 Million

SALT LAKE CITY, March 11, 2013 (GLOBE NEWSWIRE) -- Black Diamond, Inc.
(Nasdaq:BDE) (the "Company" or "Black Diamond"), a global leading supplier of
innovative, high performance, outdoor and action sport equipment as well as
aspirational active outdoor lifestyle products, reported financial results for
the fourth quarter and full year ended December 31, 2012.

2012 Financial Highlights vs. 2011

  *Total sales up 21% to $175.9 million;
    
  *Adjusted gross margin increased 80 basis points to 39.5% compared to gross
    margin of 38.7%;
    
  *Adjusted net income before non-cash items increased to $12.6 million
    compared to $11.9 million; and
    
  *Adjusted EBITDA increased to $14.7 million compared to $13.6 million.

Fourth Quarter 2012 Financial Results

Total sales in the fourth quarter of 2012 increased 34% to $48.8 million
compared to $36.3 million in the fourth quarter of 2012. The increase was
primarily attributed to the contribution of POC Sweden AB ("POC") as well as
PIEPS Holding GmbH ("PIEPS") and their respective subsidiaries, which were
acquired in the second half of 2012. Total sales were reduced by $0.4 million
of inventory repurchased and not recognized as revenue from Gregory Mountain
Products' ("Gregory") Japanese distributor, Kabushiki Kaisha A&F ("A&F"), as
part of the A&F distribution agreement.

Gross margin in the fourth quarter of 2012 was 36.3% compared to 39.2% in the
year-ago quarter. Gross margin in the fourth quarter of 2012 included $1.2
million for inventory fair value of purchase accounting adjustments related to
the acquisitions of POC and PIEPS. Excluding this amount, adjusted gross
margin in the fourth quarter of 2012 was 38.7%, a 50 basis point decline from
the year-ago quarter primarily due to a higher level of discount activity in
response to a challenging start to the 2012 winter season.

Net income in the fourth quarter of 2012 was $0.5 million or $0.02 per diluted
share compared to $3.5 million or $0.16 per diluted share in the year-ago
quarter. Net income in the fourth quarter of 2012 included $0.4 million of
non-cash items, $0.4 million in transaction-related costs, $0.1 million in
restructuring costs, and $0.2 million in merger and integration costs.

Excluding these items, adjusted net income before non-cash items in the fourth
quarter of 2012 was $1.6 million compared to $2.3 million in the fourth
quarter of 2011. On a per share basis, adjusted net income before non-cash
items was $0.05 per diluted share compared to $0.10 per diluted share in the
year-ago quarter, reflecting the shares issued as a result of the Company's
public offering in February 2012.

Adjusted EBITDA (earnings before interest, taxes, other income, depreciation,
amortization, stock-based compensation, inventory fair value of purchase
accounting, and transaction, merger and integration, and restructuring costs)
in the fourth quarter of 2012 was $2.1 million compared to $2.8 million in the
year-ago quarter. Adjusted EBITDA in the fourth quarter of 2012 excluded $0.5
million of stock-based compensation, $1.2 million of inventory fair value of
purchase accounting adjustments, and the aforementioned $0.4 million in
transaction-related costs, $0.1 million in restructuring costs, and $0.2
million in merger and integration costs.

At December 31, 2012, cash totaled $5.1 million compared to $2.4 million at
December 31, 2011. Total debt was $40.5 million at December 31, 2012, which
included $20.0 million outstanding on the Company's $35.0 million line of
credit, leaving $15.0 million available.

On October 1, 2012, the Company completed the acquisition of PIEPS, a leading
Austrian designer and marketer of avalanche beacons and snow safety products,
for a total consideration valued at approximately $10.3 million in cash.

Full Year 2012 Financial Results

Total sales in 2012 increased 21% to $175.9 million compared to $145.8 million
in 2011. The growth in sales was supported by the introduction of new and
innovative products as well as the addition of POC and PIEPS. Total sales were
reduced by $1.0 million of inventory repurchased as part of the previously
mentioned A&F distribution agreement.

Gross margin in 2012 was 38.2% compared to 38.7% in 2011. Gross margin in 2012
included $2.3 million for the previously mentioned inventory fair value of
purchase accounting adjustments. Excluding this amount, adjusted gross margin
in 2012 was 39.5%, an 80 basis point improvement from 2011 due to a shift in
mix toward higher margin products as well as the inclusion of both POC and
PIEPS.

Net income in 2012 was $2.0 million or $0.06 per diluted share, which included
$8.2 million of non-cash items, $2.0 million in transaction-related costs,
$0.2 million in restructuring costs, and $0.2 million in merger and
integration costs.

Excluding these items, adjusted net income before non-cash items in 2012
increased to $12.6 million compared to $11.9 million in 2011. On a per share
basis, adjusted net income before non-cash items was $0.42 per diluted share
compared to $0.54 per diluted share in 2011, reflecting the shares issued in
previously mentioned 2012 public offering.

Adjusted EBITDA in 2012 increased 8% to $14.7 million compared to $13.6
million in 2011. Adjusted EBITDA in 2012 excluded $1.8 million of stock-based
compensation, $2.3 million of inventory fair value of purchase accounting
adjustments, and the aforementioned $2.0 million in transaction-related costs,
$0.2 million in restructuring costs, and $0.2 million in merger and
integration costs.

Management Commentary

"2012 was a transformational year for Black Diamond, filled with a number of
significant achievements," said Peter Metcalf, president and CEO of Black
Diamond. "Not only did we achieve record revenue and continue to grow
organically, but we executed against our strategic objectives. This includes
the introduction of our fall 2013 apparel line to the trade and the
establishment of our own ski manufacturing operation. We also agreed to
acquire the Japanese distribution assets of Gregory, established our own
distribution in Japan, and entered one new primary product category and six
new product niches with the acquisitions of POC and PIEPS.

"As a result," continued Metcalf, "we entered 2013 as a meaningfully larger,
stronger, and more diverse enterprise. With our apparel line expected to be in
stores this fall, we believe that we are executing on our vision to become a
diversified global brand leader in both hard and soft goods across all four
seasons.

"2013 is shaping up to become an equally transformative year as we continue to
invest in our organic growth initiatives and aggressively integrate our two
strategic acquisitions. In 2014, we expect to begin realizing the benefit of
these investments with accelerating profitability."

2013 Outlook

Black Diamond expects 2013 sales to range between $216-$221 million, which
would represent an increase of approximately 23% to 26% from the 2012 sales.
The Company also expects gross margin in 2013 to range between 40.0% and 41.0%

Net Operating Loss (NOL)

The Company estimates that it has available NOL carryforwards for U.S. federal
income tax purposes of approximately $212.3 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% 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.

Conference Call

Black Diamond will hold a conference call today at 5:00 p.m. Eastern time to
discuss its fourth quarter and full year 2012 results.

The Company's President and CEO Peter Metcalf and CFO Robert Peay will host
the conference call, followed by a question and answer period.

Date: Monday, March 11, 2013
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Dial-In Number: 1-877-941-1427
International: 1-480-629-9664
Conference ID#: 4600335

Please call the conference telephone number 5-10 minutes prior to the start
time. An operator will register your name and organization. If you have any
difficulty connecting with the conference call, please contact Liolios Group
at 1-949-574-3860.

The conference call will be broadcast live and available for replay at
http://public.viavid.com/index.php?id=103537 and via the investor relations
section at www.blackdiamond-inc.com.

A replay of the conference call will be available after 8:00 p.m. Eastern time
on the same day through March 25, 2013.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay #: 4600335

About Black Diamond, Inc.

Black Diamond, Inc. is a global leader in the design, manufacturing and
marketing of innovative active outdoor performance products for climbing,
mountaineering, backpacking, skiing, cycling and other outdoor recreation
activities for a wide range of year-round use. The Company's principal brands,
Black Diamond®, Gregory™, POC™ and PIEPS™, are iconic in the active outdoor
industry and linked intrinsically with the modern history of these sports.
Black Diamond is synonymous with performance, innovation, durability and
safety that the outdoor and action sport communities rely on and embrace in
their active lifestyle. Headquartered in Salt Lake City at the base of the
Wasatch Mountains, the Company's products are created and tested on some of
the best alpine peaks, slopes, crags, roads and trails in the world. These
close connections to the Black Diamond lifestyle enhance the authenticity of
the Company's brands, inspire product innovation and strengthen customer
loyalty. The Company's products are sold by leading specialty retailers in the
U.S. and 50 countries around the world. For additional information, please
visit the Company's websites at www.blackdiamond-inc.com,
www.blackdiamondequipment.com, www.gregorypacks.com, www.pocsports.com or
www.pieps.com.

Use of Non-GAAP Measures

The Company reports its financial results in accordance with U.S. generally
accepted accounting principles ("GAAP"). This press release contains the
non-GAAP measures: (i) adjusted gross profit and gross margin, (ii) net income
before non-cash items and related earnings per diluted share, and adjusted net
income before non-cash items and related earnings per diluted share, and (iii)
earnings before interest, taxes, other income, depreciation and amortization
("EBITDA") and adjusted EBITDA. The Company also believes that presentation of
certain non-GAAP measures, i.e.: (i) adjusted gross profit and gross margin,
(ii) net income before non-cash items and related earnings per diluted share,
and adjusted net income before non-cash items and related earnings per diluted
share, and (iii) EBITDA and adjusted EBITDA, provide useful information for
the understanding of its ongoing operations and enables investors to focus on
period-over-period operating performance, and thereby enhances the user's
overall understanding of the Company's current financial performance relative
to past performance and provides, to the nearest GAAP measures, a better
baseline for modeling future earnings expectations. Non-GAAP measures are
reconciled to comparable GAAP financial measures in the financial tables
within this press release. The Company cautions that non-GAAP measures should
be considered in addition to, but not as a substitute for, the Company's
reported GAAP results. Additionally, the Company notes that there can be no
assurance that the above referenced non-GAAP financial measures are comparable
to similarly titled financial measures used by other publicly traded
companies.

Forward-Looking Statements

Please note that in this press release we may use words such as "appears,"
"anticipates," "believes," "plans," "expects," "intends," "future," and
similar expressions which constitute forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are made based on our
expectations and beliefs concerning future events impacting the Company and
therefore involve a number of risks and uncertainties. We caution that
forward-looking statements are not guarantees and that actual results could
differ materially from those expressed or implied in the forward-looking
statements. Potential risks and uncertainties that could cause the actual
results of operations or financial condition of the Company to differ
materially from those expressed or implied by forward-looking statements in
this release include, but are not limited to, the overall level of consumer
spending on our products; general economic conditions and other factors
affecting consumer confidence; disruption and volatility in the global capital
and credit markets; the financial strength of the Company's customers; the
Company's ability to implement its growth strategy; the Company's ability to
successfully integrate and grow acquisitions; the Company's exposure to
product liability or product warranty claims and other loss contingencies;
stability of the Company's manufacturing facilities and foreign suppliers; the
Company's ability to protect trademarks and other intellectual property
rights; fluctuations in the price, availability and quality of raw materials
and contracted products; foreign currency fluctuations; our ability to utilize
our net operating loss carryforwards; and legal, regulatory, political and
economic risks in international markets. More information on potential factors
that could affect the Company's financial results is included from time to
time in the Company's public reports filed with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking
statements included in this press release are based upon information available
to the Company as of the date of this press release, and speak only as of the
date hereof. We assume no obligation to update any forward-looking statements
to reflect events or circumstances after the date of this press release.

BLACK DIAMOND, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
                                                                 
                                                      December 31,
                                                      2012        2011
                                                      (Unaudited) 
Assets                                                            
Current assets                                                    
Cash                                                   $ 5,111    $ 2,400
Accounts receivable, less allowance for doubtful       30,925     22,718
accounts of $499 and $326, respectively
Inventories                                            60,664     47,137
Prepaid and other current assets                       4,846      2,472
Income tax receivable                                  659        --
Deferred income taxes                                  2,337      2,270
Total current assets                                   104,542    76,997
                                                                 
Property and equipment, net                            17,508     14,019
Definite lived intangible assets, net                  38,100     16,108
Indefinite lived intangible assets                     51,462     32,650
Goodwill                                               57,481     38,226
Deferred income taxes                                  49,631     48,429
Other long-term assets                                 2,062      1,298
Total assets                                           $ 320,786 $ 227,727
                                                                 
Liabilities and Stockholders' Equity                              
Current liabilities                                               
Accounts payable and accrued liabilities               $ 22,178   $ 16,090
Income tax payable                                     --        254
Current portion of long-term debt                      4,059      673
Total current liabilities                              26,237     17,017
                                                                 
Long-term debt                                         36,429     37,397
Deferred income taxes                                  8,114      --
Other long-term liabilities                            2,000      1,139
Total liabilities                                      72,780     55,553
                                                                 
Stockholders' Equity                                              
Preferred stock, $.0001 par value; 5,000 shares        --        --
authorized; none issued
Common stock, $.0001 par value; 100,000 shares
authorized; 31,838 and 21,839 issued and 31,763 and    3          2
21,764 outstanding
Additional paid in capital                             473,628    402,716
Accumulated deficit                                    (231,334)  (233,286)
Treasury stock, at cost                                (2)        (2)
Accumulated other comprehensive income                 5,711      2,744
Total stockholders' equity                             248,006    172,174
Total liabilities and stockholders' equity             $ 320,786  $ 227,727




BLACK DIAMOND, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
                                                     
                                    THREE MONTHS ENDED
                                    December 31, 2012 December 31, 2011
                                                     
Sales                                                 
Domestic sales                       $ 21,031         $ 18,143
International sales                  27,770           18,196
Total sales                          48,801           36,339
                                                     
Cost of goods sold                   31,078           22,090
Gross profit                         17,723           14,249
                                                     
Operating expenses                                    
Selling, general and administrative  19,149           13,409
Restructuring charge                 139              --
Merger and integration               168              --
Transaction costs                    364              --
                                                     
Total operating expenses             19,820           13,409
                                                     
Operating (loss) income              (2,097)          840
                                                     
Other (expense) income                                
Interest expense                     (925)            (764)
Interest income                      (8)              1
Other, net                           254              82
                                                     
Total other expense, net             (679)            (681)
                                                     
(Loss) income before income tax      (2,776)          159
Income tax benefit                   (3,320)          (3,369)
Net income                           $ 544            $ 3,528
                                                     
Earnings per share:                                   
Basic                                $ 0.02           $ 0.16
Diluted                              0.02             0.16
                                                     
Weighted average shares outstanding:                  
Basic                                31,431            21,856
Diluted                              31,615            22,082




BLACK DIAMOND, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
                                                
                                    Year Ended December 31,
                                    2012         2011
                                                
Sales                                            
Domestic sales                       $ 74,600    $ 62,813
International sales                  101,277     82,962
Total sales                          175,877     145,775
                                                
Cost of goods sold                   108,613     89,423
Gross profit                         67,264      56,352
                                                
Operating expenses                               
Selling, general and administrative  62,590      50,493
Restructuring charge                 225         993
Merger and integration               244         --
Transaction costs                    2,029       --
                                                
Total operating expenses             65,088      51,486
                                                
Operating income                     2,176       4,866
                                                
Other (expense) income                           
Interest expense                     (2,993)     (2,921)
Interest income                      35          32
Other, net                           870         227
                                                
Total other expense, net             (2,088)     (2,662)
                                                
Income before income tax             88          2,204
Income tax benefit                   (1,864)     (2,688)
Net income                           $ 1,952     $ 4,892
                                                
Earnings per share:                              
Basic                                $ 0.07      $ 0.22
Diluted                              0.06        0.22
                                                
Weighted average shares outstanding:             
Basic                                29,817       21,845
Diluted                              30,126       22,046




BLACK DIAMOND, INC.
RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT
AND ADJUSTED GROSS MARGIN
                                                              
THREE MONTHS ENDED
                                  
                                  December 31,                 December 31,
                                   2012                           2011
                                                              
Gross profit as reported           $ 17,723                    
Plus inventory fair value of       1,163                       
purchase accounting
Adjusted gross profit              $ 18,886    Gross profit as  $ 14,249
                                                reported
                                                              
Gross margin                       36.3%                        
                                                              
Adjusted gross margin              38.7%        Gross margin as  39.2%
                                                reported
                                                              
TWELVE MONTHS ENDED
                                                              
                                  December 31,                 December 31,
                                   2012                           2011
                                                              
Gross profit as reported           $ 67,264                    
Plus inventory fair value of       2,257                       
purchase accounting
Adjusted gross profit              $ 69,521    Gross profit as  $ 56,352
                                                reported
                                                              
Gross margin                       38.2%                        
                                                              
Adjusted gross margin              39.5%        Gross margin as  38.7%
                                                reported




BLACK DIAMOND, INC.
RECONCILIATION FROM NET INCOME TO NET INCOME BEFORE NON-CASH ITEMS, ADJUSTED
NET INCOME BEFORE NON-CASH ITEMS AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
                                                                  
                                                                  
                           THREE MONTHS ENDED
                                        Per Diluted              Per
                                                                      Diluted
                           December 31,  Share         December 31,  Share
                            2012                        2011
                                                                  
                                                                  
Net income                  $ 544        $ 0.02       $ 3,528      $ 0.16
                                                                  
Amortization of intangibles 871          0.03         333          0.02
Depreciation                990          0.03         993          0.04
Accretion of note discount  267          0.01         238          0.01
Stock-based compensation    452          0.01         588          0.03
Inventory fair value of     1,163        0.04         --          --
purchase accounting
Income tax benefit          (3,320)      (0.11)       (3,369)      (0.15)
Cash paid for income taxes  (38)         (0.00)       --          --
                                                                  
Net income before non-cash  $ 929        $ 0.03       $ 2,311      $ 0.10
items
                                                                  
Restructuring charge        139          0.00         --          --
Merger and integration      168          0.01         --          --
Transaction costs           364          0.01         --          --
State cash taxes on         (34)         (0.00)       --          --
adjustments
AMT cash taxes on           (13)         (0.00)       --          --
adjustments
                                                                  
Adjusted net income before  $ 1,553      $ 0.05       $ 2,311      $ 0.10
non-cash items




BLACK DIAMOND, INC.
RECONCILIATION FROM NET INCOME TO NET INCOME BEFORE NON-CASH ITEMS, ADJUSTED
NET INCOME BEFORE NON-CASH ITEMS AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
                                                                  
                                                                  
                           TWELVE MONTHS ENDED
                                        Per Diluted              Per
                                                                      Diluted
                           December 31,  Share         December 31,  Share
                            2012                        2011
                                                                  
                                                                  
Net income                  $ 1,952      $ 0.06       $ 4,892      $ 0.22
                                                                  
Amortization of intangibles 2,268        0.08         1,331        0.06
Depreciation               3,685        0.12         3,351        0.15
Accretion of note discount  1,025        0.03         993          0.05
Stock-based compensation    1,766        0.06         3,091        0.14
Inventory fair value of     2,257        0.07         --          --
purchase accounting
Income tax benefit          (1,864)      (0.06)       (2,688)      (0.12)
Cash (paid) received for    (881)        (0.03)       46           0.00
income taxes
                                                                  
Net income before non-cash  $ 10,208     $ 0.34       $ 11,016     $ 0.50
items
                                                                  
Restructuring charge        225          0.01         993          0.05
Merger and integration      244          0.01         --          --
Transaction costs           2,029        0.07         --          --
State cash taxes on         (125)        (0.00)       (50)         (0.00)
adjustments
AMT cash taxes on           (47)         (0.00)       (19)         (0.00)
adjustments
                                                                  
Adjusted net income before  $ 12,534     $ 0.42       $ 11,940     $ 0.54
non-cash items




BLACK DIAMOND, INC.
RECONCILIATION FROM NET INCOME TO EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION,
AND AMORTIZATION ("EBITDA"), AND ADJUSTED EBITDA
(In thousands)
                                                           
                                          THREE MONTHS ENDED
                                          December 31, 2012 December 31, 2011
                                                           
                                                           
Net income                                 $ 544            $ 3,528
                                                           
Income tax benefit                         (3,320)          (3,369)
Other, net                                 (254)            (82)
Interest income                            8                (1)
Interest expense                           925              764
                                                           
Operating (loss) income                    (2,097)          840
                                                           
Depreciation                               990              993
Amortization of intangibles                871              333
                                                           
EBITDA                                     $ (236)          $ 2,166
                                                           
Restructuring charge                       139              --
Merger and integration                     168              --
Transaction costs                          364              --
Inventory fair value of purchase           1,163            --
accounting
Stock-based compensation                   452              588
                                                           
Adjusted EBITDA                            $ 2,050          $ 2,754




BLACK DIAMOND, INC.
RECONCILIATION FROM NET INCOME TO EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION,
AND AMORTIZATION ("EBITDA"), AND ADJUSTED EBITDA
(In thousands)
                                                           
                                          TWELVE MONTHS ENDED
                                          December 31, 2012 December 31, 2011
                                                           
                                                           
Net income                                 $ 1,952          $ 4,892
                                                           
Income tax benefit                         (1,864)          (2,688)
Other, net                                 (870)            (227)
Interest income                            (35)             (32)
Interest expense                           2,993            2,921
                                                           
Operating income                           2,176            4,866
                                                           
Depreciation                              3,685            3,351
Amortization of intangibles                2,268            1,331
                                                           
EBITDA                                     $ 8,129          $ 9,548
                                                           
Restructuring charge                       225              993
Merger and integration                     244              --
Transaction costs                          2,029            --
Inventory fair value of purchase           2,257            --
accounting
Stock-based compensation                   1,766            3,091
                                                           
Adjusted EBITDA                            $ 14,650         $ 13,632

CONTACT: Company Contact:
        
         Warren B. Kanders
         Executive Chairman
         Tel 1-203-428-2000
         warren.kanders@bdel.com
         or
         Peter Metcalf
         Chief Executive Officer
         Tel 1-801-278-5552
         peter.metcalf@bdel.com
        
         Investor Relations:
        
         Liolios Group, Inc.
         Scott Liolios or Cody Slach
         Tel 1-949-574-3860
         BDE@liolios.com

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