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DISCONTINUED OPERATIONS | 9 Months Ended
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Sep. 30, 2024
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, comprised of the Company’s subsidiaries Sierra and 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 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 was subject to a customary working capital adjustment. The Company received $175,674 in cash under the terms of the Precision Sport Purchase Agreement, which included a preliminary working capital adjustment. As of September 30, 2024, the working capital adjustment had been finalized, with no changes from the preliminary working capital adjustment. The Company recognized a pre-tax gain on such sale of $40,585. 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. 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
​ | ​ | ​ | ​
Accounts receivable, net | ​ | $ | 9,914
Inventories | ​ | ​ | 44,208
Prepaid and other current assets | ​ | ​ | 2,931
Total current assets held for sale | ​ | ​ | 57,053
​ | ​ | ​ | ​
Property and equipment, net | ​ | ​ | 24,075
Other intangible assets, net | ​ | ​ | 4,926
Indefinite-lived intangible assets | ​ | ​ | 24,500
Goodwill | ​ | ​ | 26,715
Other long-term assets | ​ | ​ | 15
Total assets held for sale | ​ | $ | 137,284
​ | ​ | ​ | ​
Accounts payable | ​ | $ | 2,441
Accrued liabilities | ​ | ​ | 3,303
Total current liabilities held for sale | ​ | ​ | 5,744
​ | ​ | ​ | ​
Total liabilities held for sale | ​ | $ | 5,744
​ Summarized results of discontinued operations for the Precision Sport segment are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended
​ | ​ | September 30, 2024 | ​ | September 30, 2023 | ​ | September 30, 2024 | ​ | September 30, 2023
​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​
Sales | ​ | $ | - | ​ | $ | 18,773 | ​ | $ | 10,585 | ​ | $ | 71,670
Cost of goods sold | ​ | ​ | - | ​ | ​ | (10,509) | ​ | ​ | (6,543) | ​ | ​ | (44,716)
Selling, general and administrative | ​ | ​ | - | ​ | ​ | (2,807) | ​ | ​ | (2,062) | ​ | ​ | (9,107)
Restructuring charges | ​ | ​ | - | ​ | ​ | (23) | ​ | ​ | (3) | ​ | ​ | (23)
Transaction costs | ​ | ​ | - | ​ | ​ | (442) | ​ | ​ | (3,440) | ​ | ​ | (516)
Interest expense, net | ​ | ​ | - | ​ | ​ | (2,861) | ​ | ​ | (2,455) | ​ | ​ | (8,477)
Other, net | ​ | ​ | - | ​ | ​ | 2 | ​ | ​ | (38) | ​ | ​ | 9
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Loss) income from operations of discontinued operations | ​ | ​ | - | ​ | ​ | 2,133 | ​ | ​ | (3,956) | ​ | ​ | 8,840
Gain on sale of discontinued operations | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 40,585 | ​ | ​ | -
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income from discontinued operations before taxes | ​ | ​ | - | ​ | ​ | 2,133 | ​ | ​ | 36,629 | ​ | ​ | 8,840
Income tax expense | ​ | ​ | - | ​ | ​ | 1,191 | ​ | ​ | 8,283 | ​ | ​ | 2,038
Income from discontinued operations, net of tax | ​ | $ | - | ​ | $ | 942 | ​ | $ | 28,346 | ​ | $ | 6,802
​ 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 condensed consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. Summarized cash flow information for the Precision Sport segment discontinued operations are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended
​ | ​ | September 30, 2024 | ​ | September 30, 2023
​ | ​ | ​ | ​ | ​ | ​ | ​
Depreciation of property and equipment | ​ | $ | - | ​ | $ | 2,611
Amortization of intangible assets | ​ | ​ | - | ​ | ​ | 1,525
Stock-based compensation | ​ | ​ | 5 | ​ | ​ | 114
Purchase of property and equipment | ​ | ​ | 886 | ​ | ​ | 1,814
​

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