This is a
continuation from yesterday’s post.
As I stated in the
prior post Clarus Corporation (CLRS.PK) was used as a public company shell
backed by proven value creators that have built high growth companies via acquisitions.
Mr. Kanders and Schiller used the shell with 81 million in cash and 231M NOLs
to take Black Diamond public. Black Diamond goes back to 1957 as a globally recognized
equipment brand for mountaineers, climbers, hikers and skiing.
Gregory was also
purchased during this transaction. Gregory sells top brand technical backpacking
equipment worldwide. The reviews on their products are stellar. These high
margin backpacks are also sold through Amazon along with high margin Black Diamond equipment...
Not many companies make premium climbing equipment such as “Lightning Ascent
Snow Shoes”.
During
2012 BDE purchased a private company POC Sweden AB and in a separate transaction
PIEPS Holding GmbH. POC Sweden AB designs and markets sporting gear and
equipment in Sweden.
PIEPS Holding GMBH
is a leading Austrian designer and marketer of avalanche beacons and snow
safety products.
It’s important to
note Mr. Kanders and Schiller built up a company called Armor(AH). They made over 30
acquisitions during a 12 year period. On July 2007 they sold AH (Armor) to BAE
Systems for 3.1 Billion.
Some data on BlackDiamond (BDE)
Market Cap: 290.90M,
Enterprise Value: 323.50M
Price/Sales: 1.61,
Price/Book: 1.19
Enterprise Value/Revenue:
1.79, Enterprise Value/EBITDA: 44.87
Revenue
(ttm): 180.46M, Revenue Per Share (ttm): 5.76
Qtrly Revenue
Growth (yoy): 9.90%
Gross Profit
(ttm): 67.26M, EBITDA (ttm): 7.21M
52-Week
Change3: -0.87%, 52-Week High: 10.63, 52-Week Low: 7.55
Shares Outstanding:
31.79M, Float: 17.23M
% Held by Insiders:
29.43%, % Held by Institutions1: 56.60%
Short % of Float:
12.70%
Not much to like
on the financial statements. But better times are likely ahead for several
reasons/catalysts. BDE is a contrarian play that is ignored or just not
liked by analyst looking shorter term. This negativity may have helped with a
lower market/industry under performing stock price. They continue to improve
operations, and have made synergistic acquisitions. The board and executive
management have proven history of success building companies.
Executive Chairman Warren Kanders, Executive Vice Chairman,
Rob Schiller; as well as Mike Henning former senior managing partner at ENY;
Phil Duff, former CFO of Morgan Stanley are capable of steering this company in
the right financial direction.
BDE is worth looking
at more closely.
