XML 23 R12.htm IDEA: XBRL DOCUMENT v3.24.3
Operating Segment Data
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Operating Segment Data Operating Segment Data
At September 30, 2024, the Company had ten reportable operating segments. Each operating segment represents a platform acquisition. The Company’s operating segments are strategic business units that offer different products and services. While each is actively managed by the Company, they are managed separately because each business requires different technology and marketing strategies. A description of each of the reportable segments and the types of products from which each segment derives its revenues is as follows:
•5.11 is a leading provider of purpose-built technical apparel and gear for law enforcement, firefighters, EMS, and military special operations as well as outdoor and adventure enthusiasts. 5.11 is a brand known for innovation and authenticity, and works directly with end users to create purpose-built apparel and gear designed to enhance the safety, accuracy, speed and performance of tactical professionals and enthusiasts worldwide. Headquartered in Costa Mesa, California, 5.11 operates sales offices and distribution centers globally, and 5.11 products are widely distributed in uniform stores, military exchanges, outdoor retail stores, its own retail stores and on 511tactical.com.
•BOA, creator of the revolutionary, award-winning, patented BOA Fit System, partners with market-leading brands to make the best gear even better. Delivering fit solutions purpose-built for performance, the BOA Fit System is featured in footwear across snow sports, cycling, outdoor, athletic, workwear as well as performance headwear and bracing. The system consists of three integral parts: a micro-adjustable dial, high-tensile lightweight laces, and low friction lace guides creating a superior alternative to laces, buckles, Velcro, and other traditional closure mechanisms. Each unique BOA configuration is designed with brand partners to
deliver superior fit and performance for athletes, is engineered to perform in the toughest conditions and is backed by The BOA Lifetime Guarantee. BOA is headquartered in Denver, Colorado and has offices in Austria, Greater China, South Korea, and Japan.
•Ergobaby, headquartered in Torrance, California, is a designer, marketer and distributor of wearable baby carriers and accessories, blankets and swaddlers, nursing pillows, strollers, bouncers and related products.  Ergobaby primarily sells its Ergobaby and Baby Tula branded products through brick-and-mortar retailers, national chain stores, online retailers, its own websites and distributors and derives more than 50% of its sales from outside of the United States.
•Lugano Diamonds is a leading designer, manufacturer and marketer of high-end, one-of-a-kind jewelry sought after by some of the world’s most discerning clientele. Lugano conducts sales via its own retail salons as well as pop-up showrooms at Lugano-hosted or sponsored events in partnership with influential organizations in the equestrian, art and philanthropic community. Lugano is headquartered in Newport Beach, California.
•PrimaLoft is a leading provider of branded, high-performance synthetic insulation and materials used primarily in consumer outerwear, and accessories. The portfolio of PrimaLoft synthetic insulations offers products that can both mimic natural down aesthetics and provide the freedom to design garments ranging from stylish puffers to lightweight performance apparel. PrimaLoft insulations also offer superior economics to the brand partner and enable better sustainability characteristics through the use of recycled, low-carbon inputs. PrimaLoft is headquartered in Latham, New York.
•The Honey Pot Co. is a leading “better-for-you” feminine care brand, powered by plant-derived ingredients and clinically tested formulas. Founded in 2012 by CEO Beatrice Dixon, The Honey Pot Co. is rooted in the belief that all products should be made with healthy and efficacious ingredients that are kind to and safe for skin. The company offers an extensive range of holistic wellness products across the feminine hygiene, menstrual, personal care, and sexual wellness categories. The Honey Pot Co.'s mission is to educate, support, and provide consumers around the world with tools and resources that promote menstrual health and vaginal wellness. Its products can be found in more than 33,000 stores across the U.S. through mass merchants, drug and grocery retail chains, and online. The Honey Pot Co. is headquartered in Atlanta, Georgia.
•Velocity Outdoor is a leading designer, manufacturer, and marketer of archery products, hunting apparel and related accessories. The archery product category consists of products including Ravin crossbows and CenterPoint archery products, and the apparel category offers high-performance, feature rich hunting and casual apparel under the King's Camo brand, utilizing King’s own proprietary camo patterns. Velocity Outdoor offers its products through national retail chains and dealer and distributor networks. Velocity Outdoor is headquartered in Rochester, New York. On April 30, 2024, Velocity Outdoor sold the Crosman airgun product division. The results of operation for Crosman are included in the accompanying financial statements through the date of sale.
•Altor Solutions is a designer and manufacturer of custom molded protective foam solutions and original equipment manufacturer components made from expanded polystyrene and expanded polypropylene. Altor provides products to a variety of end markets, including appliances and electronics, pharmaceuticals, health and wellness, automotive, building and other products. Altor is headquartered in Scottsdale, Arizona and operates 15 molding and fabricating facilities across North America.
•Arnold is a global solutions provider and manufacturer of engineered solutions for a wide range of specialty applications and end-markets, including aerospace and defense, general industrial, motorsport/transportation, oil and gas, medical, energy, reprographics and advertising specialties. Arnold engineers solutions for and produces high performance permanent magnets (PMAG), stators, rotors and full electric motors ("Ramco"), precision foil products (Precision Thin Metals or "PTM"), and flexible magnets (Flexmag™) that are mission critical in motors, generators, sensors and other systems and components. Based on its long-term relationships, Arnold has built a diverse and blue-chip customer base totaling more than 2,000 customers and leading systems-integrators worldwide with a focus on North America, Europe, and Asia. Arnold has built a preferred rare earth supply chain and has leading rare earth and other permanent magnet production capabilities. Arnold is headquartered in Rochester, New York.
•Sterno is a leading manufacturer and marketer of portable food warming systems, creative indoor and outdoor lighting, and home fragrance solutions for the consumer markets. Sterno offers a broad range of wick and gel chafing systems, butane stoves and accessories, liquid and traditional wax candles, catering equipment and
lamps through Sterno Products, as well as scented wax cubes, warmer products, outdoor lighting and essential oils used for home decor and fragrance systems through Rimports. Sterno is headquartered in Plano, Texas.
The tabular information that follows shows data for each of the operating segments reconciled to amounts reflected in the consolidated financial statements. The operations of each of the operating segments are included in consolidated operating results as of their respective dates of acquisition. Segment profit is determined based on internal performance measures used by the Manager to assess the performance of each business. Corporate consists of corporate overhead and management fees that are not allocated to any of the Company's reportable segments. There were no significant inter-segment transactions.
Summary of Operating Segments
Net RevenuesThree months ended September 30,Nine months ended September 30,
(in thousands)2024202320242023
5.11 $139,218 $135,213 $387,393 $385,695 
BOA45,607 37,281 142,670 113,390 
Ergobaby21,755 23,218 71,530 71,785 
Lugano118,584 78,735 320,981 203,571 
PrimaLoft13,686 10,930 61,518 57,619 
The Honey Pot Co.31,545 — 75,892 — 
Velocity Outdoor28,809 54,469 77,419 126,348 
Altor Solutions52,129 59,215 157,746 181,613 
Arnold46,103 41,819 130,545 122,047 
Sterno85,187 80,185 223,814 229,819 
Total segment revenue582,623 521,065 1,649,508 1,491,887 
Corporate — — — — 
Total consolidated revenues$582,623 $521,065 $1,649,508 $1,491,887 
Segment Profit (Loss) Three months ended September 30,Nine months ended September 30,
(in thousands)2024202320242023
5.11 $14,937 $13,400 $33,803 $31,652 
BOA10,364 6,684 36,490 22,685 
Ergobaby(935)1,288 629 4,202 
Lugano47,975 27,963 120,490 64,872 
PrimaLoft(2,039)(2,756)6,760 5,082 
The Honey Pot Co.2,818 — (2,362)— 
Velocity Outdoor1,486 (28,581)(12,873)(33,467)
Altor Solutions6,003 8,749 17,787 24,906 
Arnold5,425 4,739 14,905 15,390 
Sterno 6,971 6,438 19,626 18,019 
Total segment operating income93,005 37,924 235,255 153,341 
Corporate (1)
(22,737)(20,551)(65,068)(59,298)
Total consolidated operating income70,268 17,373 170,187 94,043 
Reconciliation of segment operating income (loss) to consolidated income from continuing operations before income taxes:
Interest expense, net(27,358)(27,560)(77,494)(80,353)
Amortization of debt issuance costs(1,005)(1,005)(3,014)(3,034)
Loss on sale of Crosman388 — (24,218)— 
Other income (expense), net(78)1,045 (4,327)2,100 
Total consolidated income (loss) from continuing operations before income taxes$42,215 $(10,147)$61,134 $12,756 
(1) Corporate operating loss is comprised of management fees paid to CGM and corporate overhead expenses.
Depreciation and Amortization ExpenseThree months ended September 30,Nine months ended September 30,
(in thousands)2024202320242023
5.11 $5,543 $6,494 $16,977 $19,645 
BOA5,203 5,875 15,651 17,267 
Ergobaby2,028 2,009 6,353 6,038 
Lugano2,352 1,913 6,708 6,522 
PrimaLoft5,258 5,281 15,751 15,841 
The Honey Pot Co.4,096 — 14,614 — 
Velocity Outdoor1,392 3,267 6,665 9,846 
Altor Solutions4,018 4,154 12,065 12,374 
Arnold 2,328 2,085 6,725 6,126 
Sterno4,946 4,872 14,807 14,678 
Total37,164 35,950 116,316 108,337 
Reconciliation of segment to consolidated total:
Amortization of debt issuance costs 1,005 1,005 3,014 3,034 
Consolidated total$38,169 $36,955 $119,330 $111,371 
Accounts ReceivableIdentifiable Assets
September 30,December 31,September 30,December 31,
(in thousands)20242023
2024 (1)
2023 (1)
5.11 $60,522 $50,452 $404,240 $398,050 
BOA1,692 1,368 228,741 243,243 
Ergobaby12,261 12,018 70,325 73,660 
Lugano184,222 124,776 714,975 510,484 
PrimaLoft987 1,381 275,628 288,212 
The Honey Pot Co.19,365 — 286,604 — 
Velocity Outdoor21,416 24,458 98,027 207,609 
Altor Solutions35,776 35,232 168,742 186,683 
Arnold 30,211 25,977 125,885 110,883 
Sterno 54,559 51,740 155,649 174,166 
Sales allowance accounts(8,323)(9,161)— — 
Total412,688 318,241 2,528,816 2,192,990 
Reconciliation of segment to consolidated totals:
Corporate and other identifiable assets
— — 15,826 404,322 
Total$412,688 $318,241 $2,544,642 $2,597,312 

(1)Does not include accounts receivable balances per schedule above or goodwill balances - refer to Note G - "Goodwill and Other Intangible Assets".