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
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Date
of Report (Date
of earliest event reported): August
9, 2005
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Johnson
Outdoors Inc.
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(Exact
name of registrant as specified in its
charter)
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Wisconsin
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0-16255
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39-1536083
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(State
or other jurisdiction
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(Commission
File Number)
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(IRS
Employer
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of
incorporation)
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Identification
No.)
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555
Main Street, Racine, Wisconsin 53403
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(Address
of principal executive offices, including zip
code)
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(262)
631-6600
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(Registrant's
telephone number, including area
code)
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Not
Applicable
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(Former
name or former address, if changed since last
report)
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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:
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[ ]
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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[
]
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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[ ]
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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[ ]
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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Item
2.02. Results
of Operations and Financial Condition.
On
August
9, 2005, Johnson Outdoors Inc. (the “Company”) issued a press release announcing
results for the fiscal third quarter ended July 1, 2005 (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.
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(c)
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Exhibits.
The following exhibit is being furnished herewith:
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99.1
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Press
Release Dated August 9, 2005.
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2
SIGNATURES
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.
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JOHNSON
OUTDOORS INC.
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Date: August
9, 2005
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By: /s/
David W.
Johnson
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Its:
Interim
Chief Financial Officer and
Treasurer
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3
JOHNSON
OUTDOORS INC.
Exhibit
Index to Current Report on Form 8-K
Exhibit
Number
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99.1
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Press
Release Dated August 9, 2005.
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4
FOR
IMMEDIATE RELEASE
At
Johnson Outdoors Inc.
David
Johnson Cynthia
Georgeson
Interim
Chief Financial Officer VP
-
Worldwide Communication
262-631-6600 262-631-6600
JOHNSON
OUTDOORS INC. ANNOUNCES
FISCAL
2005 THIRD QUARTER RESULTS
Racine,
Wisconsin, August 9, 2005 - Johnson Outdoors Inc. (Nasdaq:
JOUT),
a
leading global outdoor recreation company, today announced increased net sales
for the fiscal third quarter ended July 1, 2005, driven primarily by the
Humminbird® brand. Favorable one-time items in the prior year contributed
largely to the unfavorable comparison in net income for the
quarter.
Total
Company net sales in the third quarter were $122.4 million, the highest reported
since 1999, and 1.1% above the comparable 2004 period. Humminbird®,
acquired
in May 2004, reported three months’ sales in the third quarter this year
compared with two months in the prior year quarter. As a result,
Humminbird®
sales
are up $6.6 million over the previous third quarter, and are reflected in total
Marine Electronics’ results. Watercraft posted a strong gain in revenue (7.8%)
resulting in its highest sales quarter in two years. Diving sales benefited
from
favorable currency translation ($0.5 million), and double-digit growth in North
American markets. As announced on May 27, 2005, the Company was awarded a new
$15.9 million urgent need order for military tents, however, third quarter
revenues in Outdoor Equipment do not reflect delivery against this order. The
Company continues to expect military sales to decline up to 25% in 2005 versus
fiscal 2004, as sales in this segment declined 32.5% versus the prior year
quarter, and accounted for the majority of the revenue decline in Outdoor
Equipment.
Total
Company operating profit declined $1.9 million in the third quarter versus
the
same period last year. Humminbird® added
$1.6 million to operating profit for the three-month quarter versus $0.5 million
in the prior year period which reflected only two months of activity. Growth
in
revenues and improved manufacturing efficiency contributed to the significant
increase ($1.1 million) in operating profit in Watercraft In Diving, although
profits lagged behind the prior year period by $1.1 million when the business
unit benefited from a $2.0 million litigation settlement with a former employee.
Declines in military tent sales accounted for the majority of the profit decline
in Outdoor Equipment. The Company
-
more
-
incurred
$0.5 million in costs related to the terminated buy-out transaction compared
to
$1.1 million during the third quarter last year. Net income for the quarter
of
$6.8 million ($0.77 per diluted share) compared to $7.5 million ($0.85 per
diluted share) in the prior year period.
“Humminbird®
is exceeding our expectations with our flagship Marine Electronics business
continuing to deliver outstanding results. As anticipated, the benefits of
our
strategic investments to revitalize innovation, enhance systems and improve
efficiency throughout Watercraft are now beginning to materialize at the bottom
line,” said Helen
Johnson-Leipold, Chairman and Chief Executive Officer, Johnson Outdoors
Inc.
“In
Diving, transformation efforts are well underway in Europe, and we continue
to
work towards rebalancing the Outdoor Equipment portfolio. We believe we are
taking the appropriate actions to ensure sustainable, profitable growth of
our
businesses, and enhanced shareholder value long-term.”
YEAR-TO-DATE
Year-to-date
net sales increased 8.5% versus the same period in 2004. Humminbird® sales,
which included nine months of reported results in 2005 compared with only two
months during the same period last year, more than offset reductions in military
tent sales. The year-on-year increase in operating expense (12.4%) was also
due
primarily to the addition of Humminbird®.
Operating profit fell $3.6 million below the comparable 2004 period primarily
driven by weak performance in Diving during the first six months of the year.
Operating losses improved by $2.9 million in the Company’s Watercraft business
unit year-to-date. Net income for the nine-month period was $10.5 million,
or
$1.20 per diluted share, down from $12.4 million or $1.42 per diluted share
in
the year ago period.
“The
future of our company rests in our ability to continuously deliver meaningful
innovation that will enable us to further expand our markets, our great brand
equities and our technology horizons,” observed Ms. Johnson-Leipold. “We will do
this by leveraging the collective strength of our portfolio of brands and
expertise, like we did this year with Escape®
electric
boats, and through targeted acquisitions, such as Humminbird®,
which
are designed to complement our businesses without adding
complexity.”
FINANCIAL
HIGHLIGHTS
Favorable
currency gains of $0.6 million were recorded year-to-date and interest costs
were reduced by $0.4 million on lower debt outstanding. Pre-tax income
year-to-date was $17.9 million, $2.3 million below the corresponding prior
year
period.
The
Company’s debt to total capitalization stood at 23% at the end of the quarter
versus 29% at July 2, 2004. Debt, net of cash, decreased $15.6 million to $11.2
million at July 1, 2005. Depreciation and amortization was $7.1 million
year-to-date, greater than last year’s $6.3 million due to the impact from the
acquisition of Humminbird®.
Capital
spending totaled $5.2 million year-to-date compared with last year’s $4.9
million.
-
more
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2
“Our
continued focus on inventory management and cost-control measures led to lowered
working capital and improved operating cash flow,” said
David Johnson, Interim Chief Financial Officer.
“Our
balance sheet is healthy and our operations continue to generate the cash we
need to invest in the company’s innovation and future growth
opportunities.”
ANNUAL
SHAREHOLDER
MEETING
The
Company held its annual shareholder meeting on July 26, 2005 in Racine,
Wisconsin. A
copy of
Ms. Johnson-Leipold’s prepared remarks and presentation on “Vision for Future
Growth” can be accessed on the Company’s website at www.johnsonoutdoors.com
on the
Investor Relations homepage.
WEBCAST
The
Company will host a conference call at audio webcast at 10:00 a.m. Central
Time
to discuss the financial results and provide a Company update. The webcast
may
be accessed at Johnson Outdoors’ home page at www.johnsonoutdoors.com,
as well
as through www.fulldisclosure.com.
A
replay will be available on the above web sites, or by dialing 888-286-8010
or
617-801-6888 and providing confirmation code 65234739. The replay will be
available through August 16, 2005 by phone and 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™,
Necky® kayaks;
Escape® electric
boats; Minn Kota® motors;
Humminbird® fishfinders;
Scubapro®
and
UWATEC®
dive
equipment; and, Eureka! ®
tents.
The company has 24 locations in 17 countries around the world, employs 1,500
people and reported annual sales of $355 million in 2004.
Visit
Johnson Outdoors online at 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. 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 companies that
compete with the Company; the Company’s success in managing inventory; movements
in foreign currencies or interest rates; the Company’s success in restructuring
of its European Diving operations; unanticipated issues related to the Company’s
military tent business; the success of suppliers and customers; the ability
of
the Company to deploy its capital successfully; adverse weather conditions;
unanticipated events related to the terminated Buy-Out transaction; 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 - - -
3
JOHNSON
OUTDOORS INC. AND SUBSIDIARIES
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(thousands,
except per share amounts)
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||||||||||||||||
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Operating
Results
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THREE
MONTHS ENDED
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NINE
MONTHS ENDED
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||||||||||||||
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July
1
2005
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July
2
2004
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July
1
2005
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July
2
2004
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||||||||||
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Net
sales
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$
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122,445
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$
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121,166
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$
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303,595
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$
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279,702
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||||||||
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Cost
of sales
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70,727
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70,964
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175,830
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160,251
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Gross
profit
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51,718
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50,202
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127,765
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119,451
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||||||||||||
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Operating
expenses
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39,898
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36,515
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107,620
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95,734
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||||||||||||
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Operating
profit
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11,820
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13,687
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20,145
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23,717
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||||||||||||
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Interest
expense, net
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996
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1,237
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3,114
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3,421
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||||||||||||
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Other
(income) expense, net
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(189
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)
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149
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(909
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)
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93
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||||||||||
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Income
before income taxes
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11,013
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12,301
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17,940
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20,203
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||||||||||||
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Income
tax expense
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4,219
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4,810
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7,440
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7,755
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Net
income
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$
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6,794
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$
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7,491
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$
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10,500
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$
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12,448
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||||||||
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Basic
earnings per common share
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$
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0.79
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$
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0.87
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$
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1.22
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$
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1.46
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Diluted
earnings per common share
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$
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0.77
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$
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0.85
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$
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1.20
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$
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1.42
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||||||||
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Diluted
average common shares outstanding
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8,781
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8,795
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8,779
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8,766
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||||||||||||
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Segment
Results
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||||||||||||||||
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Net
sales:
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||||||||||||||||
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Marine
Electronics
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$
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47,759
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$
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43,112
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$
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122,750
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$
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93,003
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||||||||
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Outdoor
Equipment
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20,715
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27,202
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60,434
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67,174
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||||||||||||
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Watercraft
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31,287
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29,029
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62,364
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61,162
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||||||||||||
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Diving
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22,783
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22,227
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58,350
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59,217
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||||||||||||
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Other/eliminations
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(99
|
)
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(404
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)
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(303
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)
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(854
|
)
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||||||||
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Total
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$
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122,445
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$
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121,166
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$
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303,595
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$
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279,702
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||||||||
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Operating
profit:
|
||||||||||||||||
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Marine
Electronics
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$
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8,715
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$
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8,445
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$
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20,816
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$
|
19,001
|
||||||||
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Outdoor
Equipment
|
3,001
|
4,760
|
9,469
|
11,692
|
||||||||||||
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Watercraft
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1,753
|
639
|
(2,030
|
)
|
(4,934
|
)
|
||||||||||
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Diving
|
3,790
|
4,936
|
5,104
|
9,686
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||||||||||||
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Other/eliminations
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(5,439
|
)
|
(5,093
|
)
|
(13,214
|
)
|
(11,728
|
)
|
||||||||
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Total
|
$
|
11,820
|
$
|
13,687
|
$
|
20,145
|
$
|
23,717
|
||||||||
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Balance
Sheet Information (End
of Period)
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||||||||||||||||
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Cash
and short-term investments
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$
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39,625
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$
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40,258
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||||||||||||
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Accounts
receivable, net
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83,765
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82,630
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||||||||||||||
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Inventories,
net
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55,127
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62,373
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||||||||||||||
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Total
current assets
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193,741
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197,273
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||||||||||||||
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Total
assets
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289,745
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297,660
|
||||||||||||||
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Short-term
debt and current maturities of long-term debt
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13,001
|
15,755
|
||||||||||||||
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Total
current liabilities
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74,897
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76,047
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||||||||||||||
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Long-term
debt
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37,800
|
51,318
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||||||||||||||
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Shareholders’
equity
|
169,721
|
163,687
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||||||||||||||
4