CamelBak had net sales of $148.7 million for the year ended Dec. 31, 2014, an increase of $8.7 million, or 6.2 percent, compared to the same period in 2013, Compass Diversified Holdings reported Monday.
The increase in net sales was a result of increased gross sales in Bottles ($16.0 million), and Gloves ($1.2 million), offset in part by a decrease in sales in Hydration systems ($7.0 million) and Accessories ($1.7 million). The increase in Bottle sales during the year was attributed primarily to an increase in both domestic and international bottle sales including: the Eddy; the Podium line of insulated bottles; Chute, an ergonomic high-flow water bottle; the introduction of the filtered pitcher Relay, and the continued expansion in its customer base, including new and existing customers, for all product lines.
The increase in Glove sales was attributed to timing of government orders, while the decline in sales of Hydration systems was due primarily to the United States Marine Corps (“Marine Corps”) contract sales in the 2013 period ($6.5 million) and the timing of shipments for certain pack models. There were no Marine Corps contract sales in 2014. The decrease in sales of Accessories during the year was primarily attributable to a large order in 2013 that did not occur in 2014.
Sales of Hydration systems and Bottles represented approximately 87 percent of gross sales for the year ended Dec. 31, 2014 compared to 86 percent for the same period in 2013. Military sales were approximately 21 percent of gross sales for the year ended Dec. 31, 2014, down from 29 percent for the same period in 2013. International sales were approximately 25 percent and 22 percent of gross sales, respectively, for the years ended Dec. 31, 2014 and 2013. The decrease in military sales was attributed to the absence of Marine Corps contract sales and a decrease in other military sales during the year ended Dec. 31, 2014, due to decreased demand as a result of the drawdown of U.S. combat troops.
Gross profit as a percentage of sales decreased to 42.2 percent during the year ended Dec. 31, 2014 compared to 43.8 percent in the same period in 2013. The decrease was attributed to an unfavorable sales mix in Bottles and Hydration Systems and a decrease in obsolescence reserve in the first quarter of 2013, offset in part by an increase in gross margin attributable to Glove sales as a result of non-recurring discounted Glove sales in the first quarter of 2013.
Selling, general and administrative expense for the year ended Dec. 31, 2014 increased to approximately $35.5 million or 23.9 percent of net sales from $34.0 million or 24.3 percent of net sales for the same period of 2013. The slight increase was attributed to increases in marketing costs to support new product launches in 2014 and severance costs that occurred in the first half of 2014, in connection with closing an international sales office.
Income from operations for the year ended Dec. 31, 2014 was approximately $17.9 million, which was flat when compared to the same period in 2013.
