UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 5, 2010
Johnson Outdoors
(Exact name of registrant as specified in its charter)
| Wisconsin | 0-16255 | 39-1536083 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
555 Main Street, Racine, Wisconsin 53403
(Address of principal executive offices, including zip code)
(262) 631-6600
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
On February 5, 2010, Johnson Outdoors Inc. (the "Company") issued a press release announcing results for the fiscal first quarter ended January 1, 2010 (the "Press Release"). A copy of the Press Release is being furnished as Exhibit 99.1 to this Report.
The information in this Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibit is being furnished herewith:
99.1 Press Release Dated February 5, 2010.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Johnson Outdoors |
||
| Date: February 5, 2010 |
By: | /s/ DAVID W. JOHNSON David W. Johnson Vice President and Chief Financial Officer |
JOHNSON OUTDOORS INC.
Exhibit Index to Current Report on Form 8-K
Number
99.1 Press Release Dated February 5, 2010.
EXHIBIT 99.1
Johnson Outdoors Announces Fiscal 2010 First Quarter Results
RACINE, Wis., Feb. 5, 2010 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global outdoor recreation company, today announced net sales of $70.5 million for the first fiscal quarter ended January 1, 2010, a 1.0 percent increase compared to net sales of $69.8 million for the prior year quarter. Favorable currency translation had a positive 3.3 percent impact on revenues during the quarter. Loss from continuing operations of $4.2 million, or ($0.45) per diluted share for the first quarter of 2010, compared favorably to a loss from continuing operations of $6.9 million or ($0.75) per diluted share in the prior year quarter.
"We have worked hard over the past 18 months to position Johnson Outdoors to compete effectively in today's new marketplace by reducing infrastructure, focusing strategies, strengthening the balance sheet and investing appropriately in meaningful innovation. Early indications are that outdoor recreational markets will begin a slow, yet steady recovery in 2010, and we feel good about our ability to grow share, improve profitability and enhance shareholder value going forward," said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
TRANSFORMATION UPDATE
On November 20, 2009, the Company outlined plans to further transform Johnson Outdoors to achieve sustained profitable growth focusing on continued cost-structure reductions, enhanced product price/value, targeted revenue gains and strong balance sheet management. At the end of the first quarter:
- Restructuring efforts delivered savings in-line with expectations.
- Inventory levels were 25 percent below prior year.
- Net debt was reduced $20 million versus the prior year quarter.
FIRST QUARTER RESULTS
Due to the seasonality of the warm-weather outdoor recreational products industry, the Company's first fiscal quarter results historically reflect a loss and are not indicative of the year's overall performance. First fiscal quarter sales are typically at their lowest as the Company ramps up for the primary selling period of its outdoor recreation products during the second and third fiscal quarters. During the current year first quarter, outdoor recreational markets appeared to be stabilizing with consumer brands in three of the Company's four business units posting revenue gains during the first quarter.
- Marine Electronics revenues were 3.5 percent above last year primarily due to growth in all brands in key channels.
- Watercraft sales were 7.0 percent below the prior year primarily due to a change in pre-season sales programs which adjust shipment dates to coincide more closely with the customer's retail selling season.
- Diving revenues jumped 18.9 percent driven by a resurgence in key international markets and favorable currency translation of 8.8 percent.
- Outdoor Gear sales were 22.0 percent below last year despite solid growth in Consumer camping which could not overcome a decline in Military sales.
Total Company operating loss during the seasonally slow first fiscal quarter was $3.6 million compared to an operating loss of $5.2 million in the prior year quarter. Key drivers behind the favorable comparison were:
- Stabilization in outdoor recreational markets.
- Higher sales in Marine Electronics and Diving units.
- Improved operating efficiency in all businesses.
- An increase in gross profit margin to 37.4 percent from 36.0 percent in the prior year.
- Charges of $0.8 million related to Watercraft consolidation.
The Company reported a net loss of $4.2 million, or ($0.45) per diluted share, during the first fiscal quarter, compared to a net loss of $6.9 million, or ($0.75) per diluted share, in the same quarter last year.
OTHER FINANCIAL INFORMATION
The Company's debt to total capitalization stood at 29 percent at the end of the first quarter versus 39 percent at January 2, 2009. At January 1, 2010, debt, net of cash, was $21.1 million compared to $41.1 million at the end of the prior year quarter. Depreciation and amortization was $2.6 million year-to-date, compared to $2.4 million during the prior year-to-date period. Capital spending totaled $1.5 million during the first fiscal quarter compared with $2.0 million in the 2009 first fiscal quarter.
"We are already benefitting from our new debt agreement as borrowing costs in the quarter dropped $0.4 million below the prior year period. Our cash and debt levels are on target with expectations, due in large part to improved working capital management which brought inventory levels down significantly over the past 12 months. Going forward, on an annual basis our goal is to keep inventory within 5 percent of 2009 levels," said David W. Johnson, Vice President and Chief Financial Officer.
WEBCAST
The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Friday February 5, 2010. A live listen-only web cast of the conference call may be accessed at Johnson Outdoors' home page. A replay of the call will be available for 30 days on the Internet.
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, Marine Electronics, Diving and Outdoor Equipment. Johnson Outdoors' familiar brands include, among others: Old Town® canoes and kayaks; Ocean Kayak™ and Necky® kayaks; Carlisle® and Lendal® paddles; and Extrasport® paddling accessories; Minn Kota® motors; Cannon® downriggers; Humminbird® fishfinders; Geonav® marine electronics; SCUBAPRO® and UWATEC® dive equipment; Silva® compasses; Tech4O® digital instruments; and Eureka!® tents.
Visit Johnson Outdoors at http://www.johnsonoutdoors.com
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 consumer spending patterns; the Company's success in implementing its strategic plan, including its focus on innovation; actions of and disputes with companies that compete with t he Company; the Company's success in managing inventory and its continuing efforts to implement sustainable cost-cutting and sales growth initiatives; the risk that the Company's lenders may be unwilling to provide a waiver or amendment if the Company were to violate financial covenants and the cost to the Company of obtaining any waiver or amendment that the lenders would be willing to provide; 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 or interest rates; the Company's success in restructuring of its Watercraft and Diving operations; 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 Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
| JOHNSON OUTDOORS INC. | ||
| (thousands, except per share amounts) | ||
| Operating Results |
THREE MONTHS ENDED |
|
|
January 1 2010 |
January 2 2009 |
|
| Net sales | $70,460 | $69,756 |
| Cost of sales | 44,104 | 44,650 |
| Gross profit | 26,356 | 25,106 |
| Operating expenses | 29,911 | 30,329 |
| Operating (loss) profit | (3,555) | (5,223) |
| Interest expense, net | 1,157 | 1,494 |
| Other (income) expense, net | (680) | 1,120 |
| Loss before income taxes | (4,032) | (7,837) |
| Income tax expense (benefit) | 204 | (896) |
| Loss from continuing operations | (4,236) | (6,941) |
|
(Loss) income from discontinued operations, net of income tax benefit of $0 and $0 respectively |
-- | 41 |
| Net loss | $(4,236) | $(6,900) |
| Net loss per common share - Diluted: | ||
| Continuing operations | $(0.45) | $(0.75) |
| Discontinued operations | -- | -- |
| Diluted average common shares outstanding | 9,383 | 9,285 |
| Segment Results | ||
| Net sales: | ||
| Marine electronics | $33,095 | $31,978 |
| Outdoor equipment | 8,762 | 11,237 |
| Watercraft | 10,269 | 11,047 |
| Diving | 18,495 | 15,550 |
| Other/eliminations | (161) | (56) |
| Total | $70,460 | $69,756 |
| Operating (loss) profit: | ||
| Marine electronics | $(493) | $(969) |
| Outdoor equipment | 730 | 925 |
| Watercraft | (1,145) | (1,599) |
| Diving | (84) | (1,197) |
| Other/eliminations | (2,563) | (2,383) |
| Total | $(3,555) | $(5,223) |
| Balance Sheet Information (End of Period) | ||
| Cash and cash equivalents | $ 25,687 | $ 32,410 |
| Accounts receivable, net | 55,754 | 61,613 |
| Inventories, net | 65,811 | 87,696 |
| Total current assets | 157,472 | 191,901 |
| Total assets | 225,063 | 258,482 |
| Short-term debt and current maturities | 30,626 | 13,501 |
| Total current liabilities | 77,481 | 65,616 |
| Long-term debt | 16,145 | 60,000 |
| Shareholders' equity | $ 111,780 | $ 113,320 |
CONTACT: Johnson Outdoors Inc.
David Johnson, VP & Chief Financial Officer
Cynthia Georgeson, VP - Worldwide Communication
262-631-6600