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): May 6, 2011
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.) |
(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)) |
Section 2 - Financial Information
Item 2.02. Results of Operations and Financial Condition.
On May 6, 2011, Johnson Outdoors Inc. (the "Company") issued a press release announcing results for the second fiscal quarter ended April 1, 2011 (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.
Section 9 - Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibit is being furnished herewith:
99.1 Press Release Dated May 6, 2011.
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 |
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Date: May 6, 2011 |
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
Exhibit
Number
99.1 Press Release Dated May 6, 2011.
EXHIBIT 99.1
RACINE, Wisc., May 6, 2011 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global outdoor recreation company, today announced increased revenues and earnings during the second fiscal quarter ended April 1, 2011. Successful new product introductions and higher operating margins contributed to record second quarter sales and earnings for the Company.
"The growing trend toward an active outdoor lifestyle and improving economic conditions are boosting continued recovery for the outdoor recreational products industry. While the level and pace of recovery varies by category, overall our unparalleled portfolio of consumer-preferred brands gained share to outperform their markets and competition," said Helen Johnson-Leipold, Chairman and Chief Executive Officer. "Transformational efforts over the past two years have resulted in a more focused, more flexible and disciplined business model and a leaner, sustainable cost-structure enabling us to significantly enhance our profitability profile. At this time, we remain on track to deliver financial targets of five percent compound annual growth in sales, and six percent operating margin by the end of Fiscal 2012."
SECOND QUARTER RESULTS
Second fiscal quarter sales reflect initial shipments to customers in advance of the primary retail selling period for the industry's seasonal warm-weather outdoor recreation products. Total net sales grew 14.1 percent to $128.9 million compared to net sales of $112.9 million in the prior year quarter. Strong new product response, anticipated pent-up demand in the marine accessories marketplace and a favorable retail season outlook drove the quarterly revenue growth. Currency translation had no appreciable impact on sales during the quarter. Primary factors contributing to the quarter results were:
Total Company operating profit increased 41.8 percent to $11.4 million compared to operating profit of $8.1 million in the prior year quarter. Primary factors behind the favorable comparison were:
The Company reported a 37.2 percent increase in net earnings to $8.5 million, or $0.87 per diluted share, during the second fiscal quarter, compared to net earnings of $6.2 million, or $0.64 per diluted share, in the same quarter last year. Interest expense declined 30.1 percent year-over-year.
YEAR-TO-DATE RESULTS
Net sales in the first six months of fiscal 2011 increased 13.2 percent to $207.6 million versus $183.4 million in the same six-month period last year. Total Company operating profit increased 124.4 percent to $10.1 million during the first six months of fiscal 2011 compared to an operating profit of $4.5 million during the prior year-to-date period. Net income for the first six months of the year improved more than 270 percent to $7.2 million, or $0.75 per diluted share, compared to net earnings of $1.9 million, or $0.20 per diluted share, in the first six months of the prior year. Interest expense declined 28.9 percent compared with the same period last year.
Primary drivers behind the year-to-date sales, profit and earning comparisons were consistent with those during the second quarter.
OTHER FINANCIAL INFORMATION
At April 1, 2011, debt, net of cash, was $43.9 million compared to $53.4 million at the end of the prior year quarter. Depreciation and amortization was $4.9 million year-to-date, compared to $5.0 million during the prior year-to-date period. Capital spending totaled $3.8 million during the current fiscal quarter compared with $4.0 million in the 2010 second fiscal quarter.
"Commodity, sourcing and freight costs are all on the rise and we are working with vendors and customers to minimize impact across the supply chain," said David W. Johnson, Vice President and Chief Financial Officer. "Looking ahead, as our markets continue to improve, we will be diligent and disciplined to ensure we strike the right balance of controlling costs and investing in growth."
WEBCAST
The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Friday, May 6, 2011. 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 paddles; Extrasport® personal flotation devices; Minn Kota® motors; Cannon® downriggers; Humminbird® fishfinders; Geonav®marine electronics; SCUBAPRO® and SUBGEAR® 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 discretionary consumer spending patterns; the Company's success in implementing its strategic plan, including its focus on innovation; actions of and disputes with third parties, including companies that compete with the Company; the Company's success in managing working capital and its on-going cost-structure reduction efforts; the Company's success in meeting financial covenants and potential risk associated with the cost of obtaining any waiver or amendment that 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, interest rates and commodity costs; the Company's success in implementing targeted sales growth initiatives; 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.
- - - FINANCIAL TABLES FOLLOW - - - -
JOHNSON OUTDOORS INC. | |||||||||
(thousands, except per share amounts) | |||||||||
THREE MONTHS ENDED |
SIX MONTHS ENDED |
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Operating Results |
April 1 2011 |
April 2 2010 |
April 1 2011 |
April 2 2010 |
|||||
Net sales | $ 128,864 | $ 112,897 | $ 207,564 | $ 183,357 | |||||
Cost of sales | 75,931 | 67,511 | 123,951 | 111,615 | |||||
Gross profit | 52,933 | 45,386 | 83,613 | 71,742 | |||||
Operating expenses | 41,509 | 37,332 | 73,524 | 67,243 | |||||
Operating profit | 11,424 | 8,054 | 10,089 | 4,499 | |||||
Interest expense, net | 993 | 1,444 | 1,817 | 2,601 | |||||
Other expense (income), net | 343 | 209 | 337 | (471) | |||||
Income before income taxes | 10,088 | 6,401 | 7,935 | 2,369 | |||||
Income tax expense | 1,602 | 218 | 686 | 422 | |||||
Net income | $ 8,486 | $ 6,183 | $ 7,249 | $ 1,947 | |||||
Diluted average common shares outstanding | 9,289 | 9,262 | 9,293 | 9,244 | |||||
Net income per common share - Basic and Diluted | $ 0.87 | $ 0.64 | $ 0.75 | $ 0.20 | |||||
Segment Results | |||||||||
Net sales: | |||||||||
Marine electronics | $ 78,899 | $ 62,096 | $ 121,844 | $ 95,191 | |||||
Outdoor equipment | 10,281 | 13,738 | 20,737 | 22,500 | |||||
Watercraft | 18,115 | 16,200 | 24,250 | 26,469 | |||||
Diving | 21,759 | 21,194 | 41,111 | 39,689 | |||||
Other/eliminations | (190) | (331) | (378) | (492) | |||||
Total | $ 128,864 | $ 112,897 | $ 207,564 | $ 183,357 | |||||
Operating profit (loss): | |||||||||
Marine electronics | $ 12,822 | $ 8,084 | $ 13,200 | $ 7,591 | |||||
Outdoor equipment | 652 | 1,935 | 2,153 | 2,665 | |||||
Watercraft | 669 | 134 | (1,074) | (1,011) | |||||
Diving | (6) | 300 | 1,145 | 216 | |||||
Other/eliminations | (2,713) | (2,399) | (5,335) | (4,962) | |||||
Total | $ 11,424 | $ 8,054 | $ 10,089 | $ 4,499 | |||||
Balance Sheet Information (End of Period) | |||||||||
Cash and cash equivalents | $ 28,580 | $ 20,623 | |||||||
Accounts receivable, net | 112,902 | 104,747 | |||||||
Inventories, net | 84,754 | 69,055 | |||||||
Total current assets | 232,378 | 201,948 | |||||||
Total assets | 299,412 | 269,494 | |||||||
Short-term debt | 57,831 | 58,017 | |||||||
Total current liabilities | 127,325 | 117,490 | |||||||
Long-term debt | 14,609 | 15,961 | |||||||
Shareholders' equity | 139,002 | 116,254 |
CONTACT: At Johnson Outdoors Inc. David Johnson VP & Chief Financial Officer 262-631-6600 Cynthia Georgeson VP - Worldwide Communication 262-631-6600