UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM
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CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 - Financial Information
On February 2, 2024, Johnson Outdoors Inc. (the “Company”) issued a press release announcing results for the first fiscal quarter ended December 29, 2023 (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
(d) Exhibits. The following exhibit is being furnished herewith:
99.1 Press Release dated February 2, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Johnson Outdoors Inc. | ||
| Date: February 2, 2024 | 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 February 2, 2024 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
EXHIBIT 99.1
Johnson Outdoors Reports Fiscal First Quarter Results
RACINE, Wis., Feb. 02, 2024 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoor recreation equipment and technology, today announced lower sales and decreased earnings results for the Company’s first fiscal quarter ending December 29, 2023.
“We’re facing a tough marketplace with high inventory levels at retail and lower consumer demand resulting in soft first quarter sales. We are taking steps to outperform the challenging marketplace and improve our financial results,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “Looking ahead, our focus remains consistent on investing in innovation and marketing to position our brands for success.”
FIRST QUARTER RESULTS
Total Company net sales in the first quarter declined 22 percent to $138.6 million compared to $178.3 million in the prior year first fiscal quarter. Key contributing factors include:
- Fishing sales declined by approximately 20 percent driven by high retail inventories and lower consumer demand
- Diving sales decreased 8 percent over the prior year quarter, mainly due to a 6 percent negative impact on sales due to foreign currency translation
- Camping revenue declined 49 percent, of which approximately half was due to the sale of the Military and Commercial tents business last year. The remainder was due to high retail inventories and a decline in consumer spending
- Watercraft Recreation revenue declined 50 percent, reflecting continued significant reductions in the overall market demand
Total Company operating profit was approximately $0.05 million for the first fiscal quarter versus $5.5 million in the prior year first quarter. Gross margin was 38.1 percent, compared to 35.2 percent in the prior year quarter. The margin improvement was due primarily to decreased costs on certain materials and lower inbound freight expense. Operating expenses of $52.8 million decreased $4.5 million from the prior year period, due primarily to lower sales volumes. Additionally, $1.8 million of lower professional services expense was offset in part by $1.3 million of additional deferred compensation expense resulting from changes in market value of plan assets year over year.
Profit before income taxes was $5.9 million in the current year quarter, compared to $8.2 million in the prior year first quarter. The current year quarter includes a gain of approximately $1.9 million on the sale of a building. Net investment gains and earnings on the assets related to the Company’s non-qualified deferred compensation plan, which are included in Other income, improved by $1.3 million over the prior year quarter, which fully offset the increase in deferred compensation expense in operating expenses above. Additionally, interest income increased $0.4 million over the prior year quarter.
Net income was $4.0 million, or $0.38 per diluted share, versus $5.9 million, or $0.57 per diluted share in the previous year’s first quarter. The effective tax rate was 33.0 percent compared to 28.0 percent in the prior year first quarter.
OTHER FINANCIAL INFORMATION
The Company reported cash and investments of $114.2 million as of December 29, 2023, an increase of $10.8 million from the prior year. Depreciation and amortization were $5.0 million in the three months ending December 29, 2023, compared to $3.8 million in the prior three-month period. Capital spending totaled $5.0 million in the current year-to-date period compared with $6.6 million in the prior year period. In December 2023, the Company’s Board of Directors approved a quarterly cash dividend to shareholders of record as of January 11, 2024, which was payable January 25, 2024.
“We remain focused on managing our high inventory levels, executing on our defined cost savings program, and managing our expenses to improve profitability,” said David W. Johnson, Vice President and Chief Financial Officer. “Importantly, our debt-free balance sheet and cash position enable us to continue investing in strategic opportunities to strengthen the business, while consistently paying dividends to shareholders.”
WEBCAST
The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Friday, February 2, 2024. A live listen-only web cast of the conference call may be accessed at Johnson Outdoors’ home page or here. A replay of the call will be available for 30 days on the Internet.
About Johnson Outdoors Inc.
JOHNSON OUTDOORS is a leading global innovator of outdoor recreation equipment and technologies that inspire more people to experience the awe of the great outdoors. The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft Recreation, Fishing, Diving and Camping. Johnson Outdoors' iconic brands include: Old Town® canoes and kayaks; Ocean Kayak™; Carlisle® paddles; Minn Kota® fishing motors, batteries and anchors; Cannon® downriggers; Humminbird® marine electronics and charts; SCUBAPRO® dive equipment; Jetboil® outdoor cooking systems; and, Eureka!®camping and hiking equipment.
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,'' "confident," "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 the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K filed with the Securities and Exchange Commission on December 8, 2023, and the following: changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets; uncertainties stemming from political instability (and its impact on the economies in jurisdictions where the Company has operations), uncertainties stemming from changes in U.S. trade policies, tariffs, and the reaction of other countries to such changes; the global outbreaks of disease, such as the COVID-19 pandemic, which has affected, and may continue to affect, market and economic conditions, along with wide-ranging impacts on employees, customers and various aspects of our operations; the Company’s success in implementing its strategic plan, including its targeted sales growth platforms, innovation focus and its increasing digital presence; litigation costs related to actions of and disputes with third parties, including competitors; the Company’s continued success in its working capital management and cost-structure reductions; the Company’s success in integrating strategic acquisitions; the risk of future write-downs of goodwill or other long-lived assets; the ability of the Company’s customers to meet payment obligations; the impact of actions of the Company’s competitors with respect to product development or enhancement or the introduction of new products into the Company’s markets; movements in foreign currencies, interest rates or commodity costs; fluctuations in the prices of raw materials or the availability of raw materials or components used by the Company; any disruptions in the Company’s supply chain as a result of material fluctuations in the Company’s order volumes and requirements for raw materials and other components, or the demand for those same raw materials and components by third parties, necessary to manufacture and produce the Company’s products including related to shortages in procuring necessary raw materials and components to manufacture and produce such products; the success of the Company’s suppliers and customers and the impact of any consolidation in the industries of the Company’s suppliers and customers; the ability of the Company to deploy its capital successfully; unanticipated outcomes related to outsourcing certain manufacturing processes; unanticipated outcomes related to litigation matters; and adverse weather conditions. 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 filing. The Company assumes no obligation, and disclaims any obligation, to update such forward-looking statements to reflect subsequent events or circumstances.
JOHNSON OUTDOORS INC.
| (thousands, except per share amounts) | ||||||
| THREE MONTHS ENDED | ||||||
| Operating results | December 29, 2023 | December 30, 2022 | ||||
| Net sales | $ | 138,644 | $ | 178,337 | ||
| Cost of sales | 85,790 | 115,558 | ||||
| Gross profit | 52,854 | 62,779 | ||||
| Operating expenses | 52,808 | 57,307 | ||||
| Operating profit: | 46 | 5,472 | ||||
| Interest income, net | (1,160 | ) | (790 | ) | ||
| Other income, net | (4,693 | ) | (1,904 | ) | ||
| Profit before income taxes | 5,899 | 8,166 | ||||
| Income tax expense | 1,944 | 2,287 | ||||
| Net income | $ | 3,955 | $ | 5,879 | ||
| Weighted average common shares outstanding - Dilutive | 10,220 | 10,168 | ||||
| Net income per common share - Diluted | $ | 0.38 | $ | 0.57 | ||
| Segment Results | ||||||
| Net sales: | ||||||
| Fishing | $ | 110,492 | $ | 138,041 | ||
| Camping | 5,913 | 11,613 | ||||
| Watercraft Recreation | 4,813 | 9,658 | ||||
| Diving | 17,478 | 19,059 | ||||
| Other / Eliminations | (52 | ) | (34 | ) | ||
| Total | $ | 138,644 | $ | 178,337 | ||
| Operating profit (loss): | ||||||
| Fishing | $ | 11,529 | $ | 15,572 | ||
| Camping | 358 | 753 | ||||
| Watercraft Recreation | (2,078 | ) | (415 | ) | ||
| Diving | (578 | ) | 13 | |||
| Other / Eliminations | (9,185 | ) | (10,451 | ) | ||
| Total | $ | 46 | $ | 5,472 | ||
| Balance Sheet Information (End of Period) | ||||||
| Cash, cash equivalents and short-term investments | $ | 109,555 | $ | 103,422 | ||
| Accounts receivable, net | 83,043 | 120,553 | ||||
| Inventories, net | 267,321 | 251,525 | ||||
| Total current assets | 476,224 | 486,524 | ||||
| Long-term investments | 4,668 | — | ||||
| Total assets | 692,683 | 689,096 | ||||
| Total current liabilities | 104,067 | 117,438 | ||||
| Total liabilities | 188,813 | 194,875 | ||||
| Shareholders’ equity | 503,870 | 494,221 | ||||
| Johnson Outdoors Inc. | ||
| David Johnson | Patricia Penman | |
| VP & Chief Financial Officer | VP – Marketing Services & Global Communications | |
| 262-631-6600 | 262-631-6600 | |