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): April
27, 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
April
27, 2007, Johnson Outdoors Inc. (the “Company”) issued a press release
announcing results for the fiscal second quarter and six months ended March
30,
2007 (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 April 27, 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: April
27, 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
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99.1
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Press
Release Dated April 27, 2007.
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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 SECOND QUARTER RESULTS
RACINE,
WISCONSIN,
April 27, 2007……Johnson Outdoors Inc. (Nasdaq: JOUT),
a
leading global outdoor recreation company, today announced net sales of $122.1
million for the second quarter ended March 30, 2007, a 14 percent increase
compared to net sales of $107.4 million for the prior year quarter. Net earnings
were $1.6 million, or $0.17 per diluted share, for the second quarter of 2007
compared to net earnings of $4.2 million, or $0.46 per diluted share in the
prior year quarter.
SECOND
QUARTER RESULTS
Second
quarter sales reflect initial shipments to customers in anticipation of the
primary consumer retail selling period for the Company’s seasonal outdoor
products. Gains in Marine Electronics, Watercraft and Diving business units
more
than offset the anticipated continued slowing of military sales. Excluding
the
$2.4 million military sales decline, total Company net sales would have
increased $17.1 million or 16 percent. Key drivers during the quarter included:
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§
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Marine
Electronics revenues rose 25 percent above last year due to favorable
reception to new products across all brands in what has become one
of the
world’s leading marine electronic fishing system portfolios.
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§
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Watercraft
sales were 12 percent ahead of last year led by strong performances
across
the entire paddle sport brand portfolio. Key international markets
posted
double-digit growth year-over-year led by market and distribution
expansion in Europe.
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§
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Diving
revenues increased 14 percent based on the strong performance of
the
SCUBAPRO® brand internationally. Excluding the impact of currency, Diving
revenues would have grown 9 percent compared with the previous quarter.
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§
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Outdoor
Equipment revenues were down 16 percent due to a 25 percent decline
in
military sales versus the prior year quarter.
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Total
Company operating profit was $4.1 million compared to operating profit of $8.3
million in the prior year quarter. Net income was $1.6 million, or $0.17 per
diluted share, compared to net earnings of $4.2 million, or $0.46 per diluted
share, in the same quarter last year. Key drivers behind the comparisons
were:
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§
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Lower
military sales
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§
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Operational
inefficiency in UWATEC® and Marine
Electronics
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§
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One-time
corporate investment of $1.8 million in strategic future growth
initiatives
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“Corporate
spending during the quarter was critical to help generate long-term value for
shareholders and sustainable, profitable growth. We have been testing new
go-to-market strategies to drive sales and enhance brand equity. We have also
completed a comprehensive analysis of the outdoor recreational landscape to
identify new growth platforms and targeted acquisition opportunities,” said
Helen Johnson-Leipold, Chairman and Chief Executive Officer. “All in all, we
feel very good about the topline growth, the success of our investments in
innovation, the consumer demand for our products, and we are working to address
the supply chain challenges which led to operational inefficiencies in Diving
and Marine Electronics. We continue to be very excited for the future of Johnson
Outdoors.”
YEAR-TO-DATE
RESULTS
Net
sales
in the first six months of fiscal 2007 were $193.8 million versus $179.9 million
in the same six-month period last year, an increase of 8 percent. Excluding
the
anticipated $4.8 million decline in military sales, total Company net sales
would have increased 10 percent. Consistent with second quarter, key drivers
in
the year-to-date period were:
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§
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Successful
new product launches in Marine Electronics, particularly Humminbird® and
Cannon® brands which posted double-digit revenue growth during the
six-month period.
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§
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Strong
demand behind new paddle sport product launches and international
market
expansion in Watercraft.
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§
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Growth
in SCUBAPRO® brand sales in Europe, Asia and developing markets. Favorable
currency translation added 5 percent to year-to-date revenues in
Diving.
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Total
Company operating profit was $1.4 million during the first six months compared
to $7.5 million during the prior year-to-date period. Net loss for the first
six
months of the year was $0.5 million, or ($0.06) per diluted share, versus net
income of $3.1 million, or $0.34 per diluted share, in the first six months
of
the prior year. Consistent with the second quarter, primary drivers behind
the
year-to-date comparison were:
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§
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The
significant drop in military sales versus the prior year six-month
period.
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§
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Reduced
margins in Marine Electronics and Diving.
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§
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Significant
corporate investments in current and future growth initiatives.
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2
OTHER
FINANCIAL
INFORMATION
The
Company’s debt to total capitalization stood at 33 percent at the end of the
second quarter versus 31 percent at March 30, 2006 as a result of increased
working capital levels. Debt, net of cash and short-term investments, was $56.1
million at the end of this quarter versus $45.1 million at the end of the prior
year quarter. Depreciation and amortization is $4.5 million year-to-date
compared to $4.7 million last year. Capital spending totaled $5.7 million
year-to-date, compared with $4.0 million in the prior year first six months.
“We
continue to expect revenue growth in 2007 equal to last year, and improvement
in
core consumer brand operating margins. Strong growth in the quarter and
continued high product demand has resulted in higher working capital. Orders
are
pacing well-ahead of last year at this time, and working capital levels should
decline significantly by the end of the year,” said David W. Johnson, Vice
President and Chief Financial Officer.
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 three 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 Marine Electronics are:
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§
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Humminbird®
CannonLink™ Downrigger Control System allows
anglers to control up to six downriggers from one central 900, 700
or
Matrix Series fishing system, and offers multiple convenience features,
including automatic deployment and retrieval, on-screen downrigger
depth
monitoring and measurement of water temperature, water clarity and
speed,
among others. The revolutionary technology won the prestigious Innovation
Award from the National Marine Manufacturers Association in the Consumer
Electronics and Software category at the recent 2007 Miami International
Boat Show, the largest consumer boating show in the world.
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§
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The
Minn Kota® Powerdrive™ V2
is
an enhanced design of one of the most popular trolling motors ever
made.
The V2, an electric steer bow-mount motor, features an improved deployment
mechanism, and new ergonomically designed foot pedal and digital
electronics. Among the new features is a speed control slide on the
foot
pedal offering easier access and more precise speed selection. A
cordless
foot pedal is optional, and utilizes the award-winning CoPilot™ technology
that captured the coveted ICAST Award for Innovation when first introduced
five years ago.
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WEBCAST
The
Company will host a conference call and audio webcast on Friday, April 27,
2007
at 11:00 a.m. Eastern Time. A live listen-only webcast 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 29803437.
The
replay will be available through May 4, 2007 by phone and for 30 days on the
Internet.
3
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. The Company has
23
locations around the world and employs 1,300 people.
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. 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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SIX MONTHS ENDED
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||||||||||||||
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March 30
2007
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March
31
2006
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March
30
2007
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March
31
2006
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||||||||||||
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Net
sales
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$
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122,124
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$
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107,374
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$
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193,824
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$
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179,937
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||||||||
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Cost
of sales
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75,039
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63,033
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118,258
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106,167
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||||||||||||
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Gross
profit
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47,085
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44,341
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75,566
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73,770
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||||||||||||
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Operating
expenses
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43,014
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36,070
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74,135
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66,310
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||||||||||||
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Operating
profit
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4,071
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8,271
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1,431
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7,460
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||||||||||||
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Interest
expense, net
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1,344
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1,218
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2,197
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2,120
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||||||||||||
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Other
(income) expense, net
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(131
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)
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222
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(130
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)
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293
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||||||||||
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Income
(loss) before income taxes
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2,858
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6,831
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(636
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)
|
5,047
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|||||||||||
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Income
tax expense (benefit)
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1,265
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2,657
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(117
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)
|
1,968
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|||||||||||
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Net
income (loss)
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$
|
1,593
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$
|
4,174
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$
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(519
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)
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$
|
3,079
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|||||||
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Basic
earnings (loss) per common share
|
$
|
0.18
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$
|
0.46
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$
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(0.06
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)
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$
|
0.34
|
|||||||
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Diluted
earnings (loss) per common share
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$
|
0.17
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$
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0.46
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$
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(0.06
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)
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$
|
0.34
|
|||||||
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Diluted
average common shares outstanding
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9,181
|
9,127
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9,017
|
9,135
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||||||||||||
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Segment
Results
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||||||||||||||||
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Net
sales:
|
||||||||||||||||
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Marine
electronics
|
$
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64,538
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$
|
51,572
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$
|
94,004
|
$
|
81,546
|
||||||||
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Outdoor
equipment
|
15,584
|
18,514
|
29,274
|
33,037
|
||||||||||||
|
Watercraft
|
22,729
|
20,244
|
34,470
|
32,528
|
||||||||||||
|
Diving
|
19,530
|
17,119
|
36,449
|
32,937
|
||||||||||||
|
Other/eliminations
|
(257
|
)
|
(75
|
)
|
(373
|
)
|
(111
|
)
|
||||||||
|
Total
|
$
|
122,124
|
$
|
107,374
|
$
|
193,824
|
$
|
179,937
|
||||||||
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Operating
profit (loss):
|
||||||||||||||||
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Marine
electronics
|
$
|
8,804
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$
|
8,445
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$
|
9,008
|
$
|
10,861
|
||||||||
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Outdoor
equipment
|
1,232
|
2,970
|
2,875
|
4,618
|
||||||||||||
|
Watercraft
|
(501
|
)
|
(1,140
|
)
|
(2,894
|
)
|
(3,631
|
)
|
||||||||
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Diving
|
125
|
969
|
755
|
1,035
|
||||||||||||
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Other/eliminations
|
(5,589
|
)
|
(2,973
|
)
|
(8,313
|
)
|
(5,423
|
)
|
||||||||
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Total
|
$
|
4,071
|
$
|
8,271
|
$
|
1,431
|
$
|
7,460
|
||||||||
|
Balance
Sheet Information (End
of Period)
|
||||||||||||||||
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Cash
and short-term investments
|
$
|
36,738
|
$
|
31,710
|
||||||||||||
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Accounts
receivable, net
|
111,861
|
99,367
|
||||||||||||||
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Inventories,
net
|
93,227
|
73,664
|
||||||||||||||
|
Total
current assets
|
261,925
|
219,858
|
||||||||||||||
|
Total
assets
|
364,985
|
321,387
|
||||||||||||||
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Short-term
debt
|
82,801
|
56,000
|
||||||||||||||
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Total
current liabilities
|
161,704
|
123,350
|
||||||||||||||
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Long-term
debt
|
10,005
|
20,800
|
||||||||||||||
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Shareholders’
equity
|
184,487
|
169,341
|
||||||||||||||
5