The drawdown of U.S. military troops in Iraq and Afghanistan contributed to a 15.3 percent decline in sales at Camelbak, while rising OEM sales to mountain bike and powered vehicle makers drove 12 percent sales growth at Fox Racing Shox during the fourth quarter ended Dec. 31, 2011, according to Compass Diversified Holdings, Inc., which owns both companies.
CamelBak, a leading maker of hydration products acquired by CODI last August, generated revenue of $26.6 million, down from $31.4 million in the year earlier quarter, according to pro forma figures that showed operating income plunged to $1.3 million during the period, compared to $28 million in the same period last year.
CamelBak still posted impressive growth for the full fiscal year, growing net sales 15.6 percent to $141.3 million, up 15.6 percent from $122.2 million a year earlier. Gross margin reached 41.2 percent, down 100 basis points from 2010. Pro-forma operating income was $18.0 million, up 34.3 percent from $13.4 million a year earlier. Executives said EBITDA reached about $31 million, or roughly the same as a year earlier. CamelBak ended the year with approximately $29.4 million in firm backlog orders and 270 employees.
Executives said they do not expect the continued withdrawal of troops from overseas deployments to negatively affect CamelBak this year.
Revenue at Fox Racing Shox, meanwhile, increased 12% to $47.3 million in the quarter, compared to $42.2 million a year earlier. The Scotts Valley, CA company makes suspension products for the mountain bikes, snowmobiles, ATVs and other off-road vehicles. It fourth-quarter sales increased in the core mountain biking and powered vehicle sectors. Income from operations was $2.9 million, compared to income of $3.3 million in the year-earlier period, primarily as a result of higher SG&A expenses to support the company's continued sales growth.
Sales reached $197.7 million in 2011, up 15.6 percent from $171.0 million in 2010, when net sales grew nearly 41 percent. Gross margins for the year were 28.7 percent, up 30 basis points from 2010. Operating income rose 15.3 percent to $22.6 million.
Fox’s OEM sales accounted for 80 percent of revenue in 2011, compared to 78 percent and 76 percent in 2010 and 2009 respectively. The balance of sales was to aftermarket customers. Fox sells to over 160 OEM and approximately 7,600 aftermarket customers.
International sales totaled $129.9 million, $113.6 million and $84.0 million in each of the years 2011, 2010 and 2009, respectively. Sales to Taiwan totaled $53.3 million, $49.5 million and $35.6 million in 2011, 2010 and 2009, respectively. Sales to Germany totaled $27.6 million, $24.0 million and $19.2 million in 2011, 2010 and 2009, respectively.
Fox had approximately $37.0 million in firm backlog orders as of Dec. 31, 2011, compared to $34.7 million a year earlier.
