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): January
26, 2007
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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
of
incorporation)
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(Commission
File Number)
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(IRS
Employer
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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Section
2 - Financial Information
Item
2.02. Results
of Operations and Financial Condition.
On
January 26, 2007, Johnson Outdoors Inc. (the “Company”) issued a press release
announcing results for the fiscal first quarter ended December 29, 2006 (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.
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(d)
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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 January 26, 2007.
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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: January
26, 2007
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By:
/s/ David W.
Johnson
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David W. Johnson,
Vice President and Chief Financial Officer
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3
JOHNSON
OUTDOORS INC.
Exhibit
Index to Current Report on Form 8-K
Exhibit
Number
4
Exhibit
99.1
FOR
IMMEDIATE RELEASE
At
Johnson Outdoors Inc.
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David
Johnson
VP
& Chief
Financial
Officer
262-631-6600
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Cynthia
Georgeson
VP
- Worldwide
Communication
262-631-6600
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JOHNSON
OUTDOORS INC. ANNOUNCES
FISCAL
2007 FIRST QUARTER RESULTS
RACINE,
WISCONSIN,
January 26, 2007……Johnson Outdoors Inc. (Nasdaq: JOUT),
a
leading global outdoor recreation company, today announced net sales of $71.7
million for the first quarter ended December 29, 2006, a decrease of 1% compared
to sales of $72.6 million for the prior year quarter. Net loss of $2.1 million
or ($0.23) per diluted share for the first quarter of 2007 compared unfavorably
to a net loss of $1.1 million or ($0.12) in the prior year quarter.
FIRST
QUARTER RESULTS
Historically,
first quarter results are not indicative of the year’s overall performance due
to the warm-weather seasonality of the Company’s business. Quarterly sales are
typically at their lowest levels during the first fiscal quarter when the
Company is ramping up for the primary selling period of its outdoor recreation
products which occurs during the second and third quarters.
Excluding
the anticipated slowdown in military sales, which was $2.4 million below the
prior year quarter, total Company net sales for the first quarter would have
been $1.5 million higher than the prior year quarter. Key changes included:
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§
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Marine
Electronics revenues dipped 1.7% below last year due to delays in
shipments to customers which resulted from a temporary gap in product
component availability, as well as the transition to a new distribution
center and ERP system upgrade.
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§
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Watercraft
sales were 4.4% behind last year due largely to a shift in the pacing
of
orders from large national
retailers.
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§
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Diving
revenues increased 7% due to strong performance in key international
markets and favorable currency translation.
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§
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Outdoor
Equipment revenues were down 5.7% as the expected slowing of military
sales continued, declining 21% versus the prior year quarter, and
growth
in Consumer camping was offset by weaker Commercial tent
sales.
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Total
Company operating loss during the seasonally slow first quarter of $2.6 million
compared to an operating loss of $0.8 million in the prior year quarter. Key
drivers behind the unfavorable comparison were:
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§
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Lower
volume and higher commodity costs in the current quarter, together
with
the aforementioned ERP upgrade and distribution center move in Marine
Electronics, which had a significant impact on labor efficiency and
accounted for the year-over-year decline in total Company gross margins.
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§
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Lower
sales in Watercraft due to a shift in customer order
pacing.
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§
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Increased
spending in marketing and sales to support innovative new product
launches.
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The
Company reported a net loss of $2.1 million, or ($0.23) per diluted share,
during the historically slow first quarter. This compares to a net loss of
$1.1
million, or ($0.12) per diluted share, in the same quarter last year.
“We
have
set our sights on growing to a half billion dollars in revenue over the next
few
years, and on growing profits faster than sales. Winning innovation to keep
our
market-leading brands strong is key to our future success,” said Helen
Johnson-Leipold, Chairman and Chief Executive Officer. “Importantly, we are
dedicating more resources to creative marketing strategies to drive retail
store
traffic. It is far too early to predict the season, let alone the year, but
we
feel good about the potential to grow sales and capture share from the
competition in the months ahead. We are also working to enhance internal
processes and systems to ensure our operations are continuously ‘simpler,
better, faster.’ Our focus remains on driving sustainable, profitable growth
behind our commitment to enhanced shareholder value.”
OTHER
FINANCIAL
INFORMATION
The
Company’s debt to total capitalization stood at 27% at the end of the quarter
versus 29% at December 30, 2005. Debt, net of cash, was $20.3 million compared
to $20.6 million in the prior year quarter. Depreciation and amortization was
$2.1 million year-to-date compared with $2.2 million in the prior year. Capital
spending totaled $2.7 million during the first quarter compared with $1.5
million in the 2006 first fiscal quarter.
“A
healthy balance sheet and solid cash position give us a strong financial
foundation on which to build as we enter our main selling season. Working
capital is a challenge due primarily to lower volume in Marine Electronics
during the quarter. Orders are strong and ahead of the prior year at this time,
and we feel confident in our ability to bring working capital back in line
when
the season kicks into full gear,” said David W. Johnson, Vice President and
Chief Financial Officer.
2
INNOVATION
UPDATE
Johnson
Outdoors delivers meaningful innovation to the outdoor recreation marketplace
driven by unique consumer insights, with new products representing one-third
of
total Company net sales for the past two years. Strong new product growth
continues to bolster the Company’s already robust existing brands and
differentiate the Company in the industry. Among the 2007 innovations from
Outdoor Equipment and Diving are:
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·
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Eureka!®
E!Nergy™,
the first wired tent designed to bring the comfort of home to the
family
camping experience. With its own portable and rechargeable E!Battery
Pack,
family campers can now enjoy their favorite indoor activities, such
as
reading, watching movies and playing video games, in the great outdoors
or
backyard.
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§
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SCUBAPRO®
Twin Jet Max, the
first dual-compound blade construction fin offering a lifetime warranty.
The new fin is a leap ahead current fin technology sporting a soft,
bio-engineered foot pocket, and enhanced buckle system for unparalleled
diver comfort. SCUBAPRO’s unique split-fin hydro-foil technology combined
with drag-reducing vents ensures underwater performance leagues beyond
the
competition.
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WEBCAST
The
Company will host a conference call and audio web cast on Friday, January 26,
2007 at 10:00 a.m. Central Time. A live listen-only web cast of the conference
call may be accessed at Johnson Outdoors' home page. A replay will also be
available on Johnson Outdoors' home page, or by dialing (888) 286-8010 or (617)
801-6888 and providing confirmation code 59827689. The replay will be available
through February 2, 2007 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™ and Necky® kayaks; Lendal™ paddles;
Escape® electric boats; Minn Kota® motors; Cannon® downriggers; Humminbird® and
Fishin’ Buddy® fishfinders; SCUBAPRO® and UWATEC® dive equipment; Silva®
compasses and digital instruments; and Eureka!® tents.
Visit
Johnson Outdoors at http://www.johnsonoutdoors.com
3
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 and disputes
with
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 sales; 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 - - -
4
JOHNSON
OUTDOORS INC.
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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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||||||
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Dec
29
2006
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Dec
30
2005
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||||||
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Net
sales
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$
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71,701
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$
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72,563
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|||
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Cost
of sales
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43,221
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43,134
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|||||
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Gross
profit
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28,480
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29,429
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|||||
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Operating
expenses
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31,121
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30,241
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|||||
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Operating
loss
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(2,641
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)
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(812
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)
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Interest
expense, net
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852
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903
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|||||
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Other
expenses, net
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1
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69
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|||||
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Loss
before income taxes
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(3,494
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)
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(1,784
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)
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|||
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Income
tax benefit
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(1,382
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)
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(690
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)
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Net
loss
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$
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(2,112
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)
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$
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(1,094
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)
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Net
loss basic and diluted per common share
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$
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(0.23
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)
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$
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(0.12
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)
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Diluted
average common shares outstanding
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9,006
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8,977
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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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29,466
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$
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29,974
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Outdoor
equipment
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13,690
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14,524
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|||||
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Watercraft
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11,741
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12,284
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|||||
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Diving
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16,919
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15,818
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|||||
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Other/eliminations
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(115
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)
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(37
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)
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Total
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$
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71,701
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$
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72,563
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|||
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Operating
profit (loss):
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|||||||
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Marine
electronics
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204
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2,416
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|||||
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Outdoor
equipment
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1,643
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1,648
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|||||
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Watercraft
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(2,393
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)
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(2,491
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)
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|||
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Diving
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631
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66
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|||||
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Other/eliminations
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(2,726
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)
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(2,451
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)
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|||
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Total
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$
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(2,641
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)
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$
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(812
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)
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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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48,548
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$
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45,206
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|||
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Accounts
receivable, net
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56,865
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62,465
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|||||
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Inventories,
net
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83,410
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62,704
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|||||
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Total
current assets
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209,712
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187,475
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|||||
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Total
assets
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311,489
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288,832
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|||||
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Short-term
debt
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58,801
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45,000
|
|||||
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Total
current liabilities
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111,736
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94,298
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|||||
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Long-term
debt
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10,005
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20,800
|
|||||
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Shareholders’
equity
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181,452
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163,918
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|||||
*
Unaudited
5