XML 32 R10.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Discontinued Operations | 12 Months Ended
--- | ---
Dec. 31, 2023
Discontinued Operations |
Discontinued Operations | NOTE 3. DISCONTINUED OPERATIONS On February 29, 2024, the Company and Everest/Sapphire Acquisition, LLC, its wholly-owned subsidiary, completed the sale to Bullseye Acquisitions, LLC, an affiliate of JDH Capital Company, of all of the equity associated with the Company’s Precision Sport segment, which is comprised of the Company’s subsidiaries Sierra and Barnes Bullets – Mona, LLC (“Barnes”), pursuant to a Purchase and Sale Agreement dated as of December 29, 2023, by and among, Bullseye Acquisitions, LLC, Everest/Sapphire Acquisition, LLC and the Company (the “Precision Sport Purchase Agreement”). The Precision Sport segment is engaged in the business of designing, developing, manufacturing, and marketing bullets and ammunition to the military, law enforcement, and commercial/consumer markets. Under the terms of the Precision Sport Purchase Agreement, the Buyer agreed to pay $175,000 in cash, which is subject to a customary working capital adjustment. The Company received net proceeds of approximately $37,871 in cash, after payment of certain fees and settlement of the Restated Credit Agreement, for all of the equity associated with the Company’s Precision Sport segment. As the disposition was completed during our first fiscal quarter of 2024, we expect to recognize a gain on the disposition during the three months ending March 31, 2024. The activities of the Precision Sport segment have been segregated and reported as discontinued operations for all periods presented. The carrying amounts of the assets and liabilities of the Precision Sport segment were classified as held for sale in our consolidated balance sheets as of December 31, 2023 and 2022. The asset and liability balances as of December 31, 2023 were classified as current as we anticipated the sale of these assets and liabilities within a one year period. The carrying amounts were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2023 | ​ | December 31, 2022
​ | ​ | ​ | ​ | ​ | ​ | ​
Cash | ​ | $ | - | ​ | $ | 80
Accounts receivable, net | ​ | ​ | 9,914 | ​ | ​ | 18,419
Inventories | ​ | ​ | 44,208 | ​ | ​ | 39,470
Prepaid and other current assets | ​ | ​ | 2,931 | ​ | ​ | 3,599
Total current assets held for sale | ​ | ​ | 57,053 | ​ | ​ | 61,568
​ | ​ | ​ | ​ | ​ | ​ | ​
Property and equipment, net | ​ | ​ | 24,075 | ​ | ​ | 25,706
Other intangible assets, net | ​ | ​ | 4,926 | ​ | ​ | 6,959
Indefinite-lived intangible assets | ​ | ​ | 24,500 | ​ | ​ | 24,500
Goodwill | ​ | ​ | 26,715 | ​ | ​ | 26,715
Other long-term assets | ​ | ​ | 15 | ​ | ​ | 15
Total assets held for sale | ​ | $ | 137,284 | ​ | $ | 145,463
​ | ​ | ​ | ​ | ​ | ​ | ​
Accounts payable | ​ | $ | 2,441 | ​ | $ | 2,285
Accrued liabilities | ​ | ​ | 3,303 | ​ | ​ | 4,617
Current portion of long-term debt | ​ | ​ | - | ​ | ​ | 48
Total current liabilities held for sale | ​ | ​ | 5,744 | ​ | ​ | 6,950
​ | ​ | ​ | ​ | ​ | ​ | ​
Total liabilities held for sale | ​ | $ | 5,744 | ​ | $ | 6,950
​ Summarized results of discontinued operations for the Precision Sport segment are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Year Ended December 31,
​ | 2023 | ​ | 2022 | ​ | 2021
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Sales | $ | 89,950 | ​ | $ | 132,855 | ​ | $ | 109,823
Cost of goods sold | ​ | (56,980) | ​ | ​ | (79,392) | ​ | ​ | (60,765)
Selling, general and administrative | ​ | (11,639) | ​ | ​ | (14,225) | ​ | ​ | (14,834)
Restructuring charges | ​ | (47) | ​ | ​ | - | ​ | ​ | -
Transaction costs | ​ | (2,162) | ​ | ​ | (149) | ​ | ​ | (323)
Interest expense, net | ​ | (11,437) | ​ | ​ | (7,895) | ​ | ​ | (2,922)
Other, net | ​ | (19) | ​ | ​ | (807) | ​ | ​ | 11
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income from discontinued operations before taxes | ​ | 7,666 | ​ | ​ | 30,387 | ​ | ​ | 30,990
Income tax expense | ​ | 2,024 | ​ | ​ | 7,365 | ​ | ​ | 7,020
Income from discontinued operations, net of tax | $ | 5,642 | ​ | $ | 23,022 | ​ | $ | 23,970
​ In connection with the sale of the Precision Sport segment, all interest expense related to outstanding debt that was required to be repaid with the proceeds received from the sale pursuant to the terms of the Company’s credit facility is allocated to discontinued operations in our consolidated financial statements for the years ended December 31, 2023, 2022, and 2021. Summarized cash flow information for the Precision Sport segment discontinued operations are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Year Ended December 31,
​ | 2023 | ​ | 2022 | ​ | 2021
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Depreciation of property and equipment | $ | 3,452 | ​ | $ | 3,238 | ​ | $ | 2,633
Amortization of intangible assets | $ | 2,033 | ​ | $ | 2,769 | ​ | $ | 3,753
Stock-based compensation | $ | 151 | ​ | $ | 163 | ​ | $ | -
Purchase of property and equipment | $ | 1,848 | ​ | $ | 3,100 | ​ | $ | 13,486
​

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration