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Johnson Outdoors Profits Outpace Revenue Gains in Fiscal 2012
"Our three-year plan ending in fiscal 2012 focused on strengthening operations and enhancing marketplace performance against the backdrop of a gradual recovery of outdoor recreation markets. We set the bar high and delivered, growing profits faster than sales and exceeding a targeted 5 percent compound annual growth rate in sales by the end of fiscal 2012. While more work lies ahead, we have made significant progress toward our long-term goal of sustained profitable growth and our commitment to enhanced shareholder value," said
FISCAL YEAR RESULTS
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Continued growth by
Minn Kota ® and Humminbird® brands across key channels, with both exceeding$100 million in sales for the year. -
Strong performance in
North America and Asia/Pacific Diving markets was offset by unfavorable currency translation which had a negative 4.3 percent impact on sales. On a currency neutral basis, Diving sales were 2.6 percent above the prior year. - Outdoor Gear revenue declined 9.1 percent due to a significant drop in U.S. military spending and exiting of non-strategic consumer camping accounts.
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Watercraft sales were 0.8 percent above prior year due to higher sales of low-margin products and the sale of inventory to a distributor related to closure of the unit's
UK sales office.
Net income for the fiscal year was
The Company reported a 69.4 percent increase in cash net of debt as of September 28, 2012. On
FOURTH QUARTER RESULTS
Due to the seasonality of the warm-weather outdoor recreational products industry, the Company's fourth quarter results historically reflect an industry-wide slowing of sales and production. Higher Outdoor Gear sales during the quarter partially offset lower volume in
Net loss for the fiscal fourth quarter was
OTHER FINANCIAL INFORMATION
The Company's debt to total capitalization stood at 5 percent at the end of the year versus 8 percent at
"The balance sheet remains very strong due to rigorous inventory controls resulting in record low working capital levels. Cash flow is robust and healthy, with every business contributing. We expect Jetboil® to add more than
WEBCAST
The Company will host a conference call and audio web cast at
ABOUT JOHNSON OUTDOORS INC.
JOHNSON OUTDOORS is a leading global outdoor recreation company that turns ideas into adventure with innovative, top-quality products. The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft,
Visit
Non-GAAP Financial Measures
We supplement the reporting of our financial information determined in accordance with U.S. generally accepted accounting principles ("GAAP") with the non-GAAP financial measures, adjusted net income/loss and adjusted diluted earnings/loss per share. We believe that these non-GAAP measures provide meaningful information to assist shareholders in understanding our financial results and that adjusted net income and adjusted diluted earnings per share are important indicators of our operations because they exclude items that may not be indicative of or are unrelated to our core results, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported net income and diluted earnings per share, the most directly comparable GAAP financial measures.
The table below reconciles the non-GAAP financial measures adjusted net income and adjusted earnings per share with reported net income and diluted earnings per share for the quarter and year ended
12 Months Ended |
3 Months Ended |
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Net Income | Diluted Earnings Per Share | Net Income (Loss) | Diluted Earnings (Loss) Per Share | |
Reported GAAP measure |
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Reversal of deferred tax valuation allowance |
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Adjusted non-GAAP measure |
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SAFE HARBOR STATEMENT
Certain matters discussed in this press release are "forward-looking statements," intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are considered forward-looking statements. These statements may be identified by the use of forward-looking words or phrases such as "anticipate,'' "believe,'' "could,'' "expect,'' "intend,'' "may,'' "planned,'' "potential,'' "should,'' "will,'' "would'' or the negative of those terms or other words of similar meaning. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results or outcomes to differ materially from those currently anticipated. Factors that could affect actual results or outcomes include changes in economic conditions, consumer confidence levels and discretionary
spending patterns in key markets; the Company's continued success in implementing its strategic plan, including its targeted sales growth platforms and focus on innovation; litigation costs related to actions of and disputes with third parties, including competitors; the Company's continued success in working capital management and cost-structure reductions; the Company's ongoing success in meeting financial covenants in its credit agreements with lenders; risk of future write-downs of goodwill or other intangible assets; ability of the Company's customers to meet payment obligations; movements in foreign currencies, interest rates and commodity costs; the success of suppliers and customers; the ability of the Company to deploy its capital successfully; adverse weather conditions; and other risks and uncertainties identified in the Company's filings with the
FINANCIAL TABLES FOLLOW
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(thousands, except per share amounts) | ||||
THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
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Operating Results |
2012 |
2011 |
2012 |
2011 |
Net sales | $ 74,795 | $ 77,377 | $ 412,292 | $ 407,422 |
Cost of sales | 46,348 | 48,383 | 247,970 | 244,287 |
Gross profit | 28,447 | 28,994 | 164,322 | 163,135 |
Operating expenses | 31,518 | 33,223 | 142,909 | 145,465 |
Operating (loss) profit | (3,071) | (4,229) | 21,413 | 17,670 |
Interest expense, net | 155 | 351 | 2,118 | 3,130 |
Other expense (income), net | 1,068 | 211 | (631) | 2,290 |
(Loss) income before income taxes | (4,294) | (4,791) | 19,926 | 12,250 |
Income tax (benefit) expense | (1,094) | (22,068) | 9,792 | (20,394) |
Net (loss) income | $ (3,200) | $ 17,277 | $ 10,134 | $ 32,644 |
Diluted average common shares outstanding | 9,393 | 9,287 | 9,379 | 9,287 |
Diluted net (loss) income per common share | $ (0.32) | $ 1.77 | $ 1.03 | $ 3.36 |
Segment Results | ||||
Net sales: | ||||
Marine electronics | $ 32,984 | $ 36,099 | $ 231,234 | $ 222,115 |
Outdoor gear | 7,379 | 6,823 | 35,328 | 38,882 |
Watercraft | 11,492 | 11,627 | 58,201 | 57,732 |
Diving | 23,088 | 23,034 | 87,995 | 89,544 |
Other/eliminations | (148) | (205) | (466) | (851) |
Total | $ 74,795 | $ 77,378 | $ 412,292 | $ 407,422 |
Operating (loss) profit: | ||||
Marine electronics | $ (1,325) | $ (1,119) | $ 25,230 | $ 21,074 |
Outdoor gear | 730 | (754) | 2,831 | 2,996 |
Watercraft | (1,517) | (1,338) | (408) | (1,351) |
Diving | 2,170 | 287 | 6,408 | 3,610 |
Other | (3,129) | (1,306) | (12,648) | (8,659) |
Total | $ (3,071) | $ (4,230) | $ 21,413 | $ 17,670 |
Balance Sheet Information (End of Period) | ||||
Cash and cash equivalents | $ 58,904 | $ 44,514 | ||
Accounts receivable, net | 40,673 | 47,209 | ||
Inventories, net | 67,058 | 68,462 | ||
Total current assets | 182,952 | 176,445 | ||
Total assets | 263,632 | 259,356 | ||
Short-term debt | 526 | 3,494 | ||
Total current liabilities | 58,967 | 65,000 | ||
Long-term debt | 8,334 | 11,478 | ||
Shareholders' equity | 173,604 | 163,525 |
CONTACT: AtSource:Johnson Outdoors Inc. David Johnson VP & Chief Financial Officer 262-631-6600Cynthia Georgeson VP - Worldwide Communication 262-631-6600
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