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Operating Segment Data
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Operating Segment Data Operating Segment Data
At March 31, 2020, the Company had eight 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. 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 and services 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 Irvine, 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.
•
Ergobaby is a designer, marketer and distributor of wearable baby carriers and accessories, blankets and swaddlers, nursing pillows, strollers 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. Ergobaby is headquartered in Los Angeles, California.
•
Liberty Safe is a designer, manufacturer and marketer of premium home, gun and office safes in North America. From its over 300,000 square foot manufacturing facility, Liberty produces a wide range of home and gun safe models in a broad assortment of sizes, features and styles. Liberty is headquartered in Payson, Utah.
•
Velocity Outdoor is a leading designer, manufacturer, and marketer of airguns, archery products, laser aiming devices and related accessories. Velocity Outdoor offers its products under the highly recognizable Crosman, Benjamin, Ravin, LaserMax and CenterPoint brands that are available through national retail chains, mass merchants, dealer and distributor networks. Velocity Outdoor is headquartered in Bloomfield, New York.
•
Advanced Circuits is an electronic components manufacturing company that provides small-run, quick-turn and volume production rigid printed circuit boards. ACI manufactures and delivers custom printed circuit boards to customers primarily in North America. ACI is headquartered in Aurora, Colorado.
•
Arnold is a global manufacturer of engineered magnetic solutions for a wide range of specialty applications and end-markets, including aerospace and defense, general industrial, motorsport/automotive, oil and gas, medical, energy, reprographics and advertising specialties. Arnold produces high performance permanent magnets (PMAG), 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 clients worldwide. Arnold is headquartered in Rochester, New York.
•
Foam Fabricators is a designer and manufacturer of custom molded protective foam solutions and original equipment manufacturer components made from expanded polystyrene and expanded polypropylene. Foam Fabricators provides products to a variety of end markets, including appliances and electronics, pharmaceuticals, health and wellness, automotive, building and other products. Foam Fabricators is headquartered in Scottsdale, Arizona and operates 13 molding and fabricating facilities across North America.
•
Sterno is a manufacturer and marketer of portable food warming fuel and creative table lighting solutions for the food service industry and flameless candles, outdoor lighting products, scented wax cubes and warmer products for consumers. Sterno's products include wick and gel chafing fuels, butane stoves and accessories, liquid and traditional wax candles, scented wax cubes and warmer products used for home decor and fragrance systems, catering equipment and outdoor lighting products. Sterno is headquartered in Corona, California.
The tabular information that follows shows data for each of the operating segments reconciled to amounts reflected in the consolidated financial statements. The results of operations of each of the operating segments are included in consolidated operating results as of their date of acquisition. There were no significant inter-segment transactions.
Summary of Operating Segments
Net Revenues
Three months ended March 31,
(in thousands)
2020
 
2019
 
 
 
 
5.11
$
95,781

 
$
88,089

Ergobaby
19,649

 
22,452

Liberty
24,960

 
22,204

Velocity Outdoor
30,390

 
31,137

ACI
21,696

 
23,069

Arnold
29,558

 
30,028

Foam Fabricators
28,383

 
30,682

Sterno
83,032

 
91,196

Total segment revenue
333,449

 
338,857

Corporate and other
—

 
—

Total consolidated revenues
$
333,449

 
$
338,857




Segment profit (loss) (1)
Three months ended March 31,
(in thousands)
2020
 
2019
 
 
 
 
5.11
$
4,586

 
$
2,338

Ergobaby
1,554

 
3,136

Liberty
3,145

 
1,415

Velocity Outdoor
(1,164
)
 
341

ACI
5,738

 
6,481

Arnold
1,653

 
1,477

Foam Fabricators
3,512

 
3,506

Sterno
5,269

 
7,982

Total
24,293

 
26,676

Reconciliation of segment profit (loss) to consolidated income (loss) before income taxes:
 
 
 
Interest expense, net
(8,597
)
 
(18,454
)
Other income (expense), net
661

 
(434
)
Corporate and other (2)
(11,255
)
 
(19,292
)
Total consolidated income (loss) before income taxes
$
5,102

 
$
(11,504
)

(1) 
Segment profit (loss) represents operating income (loss).
(2) 
Primarily relates to management fees expensed and payable to CGM, and corporate overhead expenses.
Depreciation and Amortization Expense
Three months ended March 31,
(in thousands)
2020
 
2019
 
 
 
 
5.11
$
5,152

 
$
5,157

Ergobaby
2,053

 
2,111

Liberty
406

 
407

Velocity Outdoor
3,247

 
3,251

ACI
646

 
669

Arnold
1,631

 
1,622

Foam Fabricators
3,047

 
2,997

Sterno
5,624

 
5,372

Total
21,806

 
21,586

Reconciliation of segment to consolidated total:
 
 
 
Amortization of debt issuance costs and original issue discount
525

 
1,079

Consolidated total
$
22,331

 
$
22,665



 
Accounts Receivable
 
Identifiable Assets
 
March 31,
 
December 31,
 
March 31,
 
December 31,
(in thousands)
2020
 
2019
 
2020 (1)
 
2019 (1)
5.11
$
50,869

 
$
49,543

 
$
356,614

 
$
357,292

Ergobaby
9,573

 
10,460

 
90,969

 
91,798

Liberty
14,616

 
13,574

 
35,600

 
38,558

Velocity Outdoor
21,959

 
20,290

 
186,533

 
192,288

ACI
7,969

 
8,318

 
27,617

 
24,408

Arnold
19,800

 
19,043

 
72,109

 
72,650

Foam Fabricators
24,290

 
24,455

 
154,206

 
156,914

Sterno
49,134

 
60,522

 
251,830

 
263,530

Allowance for doubtful accounts
(14,107
)
 
(14,800
)
 
—

 
—

Total
184,103

 
191,405

 
1,175,478

 
1,197,438

Reconciliation of segment to consolidated total:
 
 
 
 

 

Corporate and other identifiable assets
—

 
—

 
247,397

 
64,531

Assets of discontinued operations
—

 
—

 
—

 
—

Total
$
184,103

 
$
191,405

 
$
1,422,875

 
$
1,261,969


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