Black Diamond Reports First Quarter 2013 Results

Black Diamond Reports First Quarter 2013 Results

                - Q1 Sales Up 10% to a Record $51.0 Million -
 - Q1 Results In-line With Management's Outlook for First Half and Full Year
                                    2013 -

SALT LAKE CITY, May 6, 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 first quarter ended March 31, 2013.

First Quarter 2013 Financial Summary

  *Total sales up 10% to $51.0 million
  *Gross margin of 37.7%
  *Adjusted net loss before non-cash items of $0.3 million or $(0.01) per
    diluted share
  *Adjusted EBITDA of $0.6 million

First Quarter 2013 Financial Results

Total sales in the first quarter of 2013 increased 10% to $51.0 million
compared to $46.4 million in the first quarter of 2012. The increase was
primarily the result of the additions of POC Sweden AB (POC) and PIEPS Holding
GmbH (PIEPS), which were acquired in the second half of 2012. First quarter
2013 sales were negatively impacted by an extended late winter season, which
delayed typically higher margin spring/summer orders, as well as the expected
decline in Gregory's Japanese business due to the transition from Kabushiki
Kaisha A&F (A&F) to Gregory in the beginning of 2013.

Gross margin in the first quarter of 2013 was 37.7% compared to 40.1% in the
year-ago quarter. The 240 basis point decline was primarily due to product mix
and a higher level of close-out and promotional activity on winter seasonal
inventory as a result of the slow start to the 2012/2013 winter season. The
strengthening of the US dollar compared to the Japanese yenalso had a
negative impact on both sales and gross margin.

Net loss in the first quarter of 2013 was $3.0 million or $(0.10) per diluted
share compared to net income of $2.6 million or $0.10 per diluted share in the
year-ago quarter. The first quarter of 2013 reflected approximately 8.9
million more shares of common stock outstanding when compared to the year-ago
quarter due to the Company's public offering in February 2012.

At March 31, 2013, cash totaled $4.1 million compared to $5.1 million at
December 31, 2012. Total debt was $41.5 million at March 31, 2013, which
included $13.4 million outstanding on the Company's $30.0 million line of
credit, leaving $16.6 million available. This compares to total debt of $40.5
million at December 31, 2012.

Management Commentary

"Black Diamond grew sales 10% to $51.0 million in the first quarter of 2013,
which is in-line with our expectations for the first quarter of 2013," said
Peter Metcalf, president and CEO of Black Diamond. "This double-digit sales
growth is in spite of a colder, snowier late winter that delayed some higher
margin spring and summer product sales, which we realized in the same quarter
last year as the result of a much earlier start to the spring 2012 season.
First quarter 2013 sales comparisons were also impacted by the anticipated
transition of Gregory's business in Japan from A&F, our former Japanese
distributor, to our own distribution business. We expect the real benefit of
this transition to begin in the second half of 2013 with significantly better
comparable sales growth. In large part, we attribute our double-digit sales
growth to the quality of Black Diamond's strengthening global distribution
platform, its variety and its seasonal diversity.

"In 2013, we anticipate healthy organic growth from our active outdoor brands,
and we expect POC and Black Diamond apparel to be our highest growth drivers
with the most positive impact on margins. As discussed, we also expect 2013 to
be another year of significant investment in operational initiatives, such as
apparel and completing the integration of POC and PIEPS. We remain
enthusiastic about our 2013 apparel launch, which will be in stores this fall,
and look forward to 2014 as the year we expect continued organic sales growth
and the benefit of scale, integration and operating leverage in our business."

Confirming Sales Estimates for 2013 and 2014

The Company's first half and full year sales expectations remain unchanged,
with first half sales expected to be between $90 million and $95 million and
full year 2013 sales expected to be between $216 million and $221 million.
These ranges imply year-over-year sales growth of between 22% and 38% for the
second quarter and between 23% and 26% for the full year 2013. In 2014, the
Company is continuing to manage toward an expected 20% sales increase with
accelerating profitability.

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 first quarter 2013 results.

The Company's President and CEO Peter Metcalf and Interim CFO and Vice
President of Finance Aaron Kuehne will host the conference call, followed by a
question and answer period.

Date: Monday, May 6, 2013
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Dial-In number: 1-877-941-1427
International number: 1-480-629-9664
Conference ID: 4614645

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=104364 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 May 20, 2013.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 4614645

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) net (loss) income before non-cash items and related
(loss) earnings per diluted share, and adjusted net (loss) income before
non-cash items and related (loss) earnings per diluted share, and (ii)
earnings before interest, taxes, other income, depreciation and amortization
("EBITDA"), and adjusted EBITDA. The Company also believes that the
presentation of certain non-GAAP measures, i.e.: (i) net (loss) income before
non-cash items and related (loss) earnings per diluted share, and adjusted net
(loss) income before non-cash items and related (loss) earnings per diluted
share, and (ii) 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)
                                                           
                                             March 31, 2013 December 31, 2012
                                             (Unaudited)    
Assets                                                      
Current assets                                              
Cash                                          $ 4,127       $ 5,111
Accounts receivable, less allowance for
doubtful accounts of $650 and $499,           35,810        30,925
respectively
Inventories                                   55,142        60,664
Prepaid and other current assets              4,329         4,846
Income tax receivable                         151           659
Deferred income taxes                         2,922         2,337
Total current assets                          102,481       104,542
                                                           
Property and equipment, net                   17,534        17,508
Definite lived intangible assets, net         37,762        38,100
Indefinite lived intangible assets            51,317        51,462
Goodwill                                      57,332        57,481
Deferred income taxes                         48,757        49,631
Other long-term assets                        2,221         2,062
Total assets                                  $ 317,404     $ 320,786
                                                           
Liabilities and Stockholders' Equity                        
Current liabilities                                         
Accounts payable and accrued liabilities      $ 21,316      $ 22,178
Current portion of long-term debt             2,142         4,059
Total current liabilities                     23,458        26,237
                                                           
Long-term debt                                39,351        36,429
Deferred income taxes                         7,461         8,114
Other long-term liabilities                   1,939         2,000
Total liabilities                             72,209        72,780
                                                           
Stockholders' Equity                                        
Preferred stock, $.0001 par value; 5,000      --           --
shares authorized; none issued
Common stock, $.0001 par value; 100,000
shares authorized; 31,841 and 31,838 issued   3             3
and 31,766 and 31,763 outstanding
Additional paid in capital                    473,998       473,628
Accumulated deficit                           (234,366)     (231,334)
Treasury stock, at cost                       (2)           (2)
Accumulated other comprehensive income        5,562         5,711
Total stockholders' equity                    245,195       248,006
Total liabilities and stockholders' equity    $ 317,404     $ 320,786




BLACK DIAMOND, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
                                                  
                                    THREE MONTHS ENDED
                                    March 31, 2013 March 31, 2012
                                                  
Sales                                              
Domestic sales                       $ 20,110      $ 18,815
International sales                  30,890        27,604
Total sales                          51,000        46,419
                                                  
Cost of goods sold                   31,784        27,803
Gross profit                         19,216        18,616
                                                  
Operating expenses                                 
Selling, general and administrative  20,878        13,775
Restructuring charge                 175           --
Merger and integration               143           --
Transaction costs                    54            112
                                                  
Total operating expenses             21,250        13,887
                                                  
Operating (loss) income              (2,034)       4,729
                                                  
Other (expense) income                             
Interest expense, net                (826)         (730)
Other, net                           (395)         290
                                                  
Total other expense, net             (1,221)       (440)
                                                  
(Loss) income before income tax      (3,255)       4,289
Income tax (benefit) expense         (223)         1,699
Net (loss) income                    $ (3,032)     $ 2,590
                                                  
(Loss) earnings per share:                         
Basic                                $ (0.10)      $ 0.10
Diluted                              (0.10)        0.10
                                                  
Weighted average shares outstanding:               
Basic                                31,764         25,677
Diluted                              31,764         25,984




BLACK DIAMOND, INC.
RECONCILIATION FROM NET (LOSS) INCOME TO NET (LOSS) INCOME BEFORE NON-CASH
ITEMS, ADJUSTED
NET (LOSS) INCOME BEFORE NON-CASH ITEMS AND RELATED (LOSS) EARNINGS PER
DILUTED SHARE
(In thousands, except per share amounts)
                                                             
                                                             
                             THREE MONTHS ENDED
                                       Per Diluted          Per Diluted
                             March 31,  Share         March 31, Share
                              2013                     2012
                                                             
                                                             
Net (loss) income             $ (3,032) $ (0.10)     $ 2,590  $ 0.10
                                                             
Amortization of intangibles   900       0.03         332      0.01
Depreciation                  1,032     0.03         771      0.03
Accretion of note discount    275       0.01         246      0.01
Stock-based compensation      370       0.01         404      0.02
Income tax (benefit) expense  (223)     (0.01)       1,699    0.07
Cash received (paid) for      37        0.00         (286)    (0.01)
income taxes
                                                             
Net (loss) income before      $ (641)   $ (0.02)     $ 5,756  $ 0.22
non-cash items
                                                             
Restructuring charge          175       0.01         --      --
Merger and integration        143       0.00         --      --
Transaction costs             54        0.00         112      0.00
State cash taxes on           (11)      (0.00)       (6)      (0.00)
adjustments
AMT cash taxes on adjustments (7)       (0.00)       (2)      (0.00)
                                                             
Adjusted net (loss) income    $ (287)   $ (0.01)     $ 5,860  $ 0.23
before non-cash items




BLACK DIAMOND, INC.
RECONCILIATION FROM NET (LOSS) INCOME TO EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION,
AND AMORTIZATION ("EBITDA"), AND ADJUSTED EBITDA
(In thousands)
                                                         
                                      THREE MONTHS ENDED
                                      March 31, 2013      March 31, 2012
                                                         
                                                         
Net (loss) income                      $ (3,032)          $ 2,590
                                                         
Income tax (benefit) expense           (223)              1,699
Other, net                             395                (290)
Interest expense, net                  826                730
                                                         
Operating income                       (2,034)            4,729
                                                         
Depreciation                           1,032              771
Amortization of intangibles            900                332
                                                         
EBITDA                                 $ (102)            $ 5,832
                                                         
Restructuring charge                   175                --
Merger and integration                 143                --
Transaction costs                      54                 112
Stock-based compensation               370                404
                                                         
Adjusted EBITDA                        $ 640              $ 6,348

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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