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): July 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
July
26, 2007, Johnson Outdoors Inc. (the “Company”) issued a press release
announcing results for the fiscal third quarter and nine months ended June
29,
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 July 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: July
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
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At
Johnson Outdoors
Inc.
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 THIRD QUARTER RESULTS
RACINE,
WISCONSIN,
July 26, 2007……Johnson Outdoors Inc. (JOUT:NASDAQ), a leading global
outdoor recreation company, today announced increased sales and earnings for
the
third quarter ended June 29, 2007. Total Company net sales were
$150.6 million, an increase of 11% compared with $135.5 million in the prior
year quarter. Net earnings were $8.3 million or $0.89 per diluted
share compared to $6.6 million or $0.72 per diluted share in the prior year
quarter.
THIRD
QUARTER
RESULTS
Third
quarter sales are historically the highest of the year, reflecting consumer
demand during the key retail selling period of the Company’s seasonal outdoor
recreational products. Significant gains in the Marine Electronics,
Diving and Watercraft divisions more than offset an anticipated slow down in
military sales. Excluding military sales in both the current and the
prior year third quarter, total Company net sales would have increased $16.7
million, or 13%. Key changes included:
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§
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Marine
Electronics sales grew 23% driven by strong response to new products
in
the Minn Kota® and Humminbird®
brands.
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§
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Diving
sales jumped 14% ahead of last year’s third quarter due to improved
performance by the SCUBAPRO® brand in Europe; the successful European
launch of a new UWATEC® dive computer; and, the acquisition of the Seemann
Sub™ brand, announced on April 2, 2007, which added $2.3 million in sales
this quarter.
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§
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Watercraft’s
positive momentum continued as revenues grew 5% behind favorable
marketplace response to new products in the Company’s paddle sport brands
and growth in key international
markets.
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§
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Outdoor
Equipment revenues were 16% behind last year. A 22%
reduction in military sales and one-time specialty sales during the
prior
year quarter drove the unfavorable year-over-year
comparison.
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Total
Company operating profit in the current quarter increased 6% to $14.7 million
compared with $13.9 million in the prior year quarter. Operating
profit during the period was impacted by the following factors:
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§
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Significant
growth in Marine Electronics and Diving sales due to successful new
product introductions.
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§
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Increased
sales in Watercraft, which could not offset a one-time charge of
$4.4
million, announced on July 10, 2007, that resolved a long-standing
intellectual property dispute. As reported in the Company’s
Form-10K report, the Company is subject to various legal actions
and
proceedings, and is insured against loss for certain of these matters.
The Company has made a claim for this matter, and at this time does
not expect resolution in Fiscal
2007.
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§
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Lower
expenses in Outdoor Equipment versus the prior year quarter which
included
$1.2 million in flood-related
charges.
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§
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Decreased
corporate expense due to a decline in
spending.
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Net
income of $8.3 million, or $0.89 per diluted share, in the current quarter
compared favorably to net income of $6.6 million, or $0.72 per diluted
share, in the prior year quarter.
“Market-winning
innovation and strategic acquisitions continue to drive revenue growth that
outpaces the industry. Investments to grow our brands and strengthen
operations are dropping to the bottom line, with supply chain optimization
and
enhanced resource planning initiatives underway to help further improve
efficiency and profitability. Unfavorable year-to-date comparisons are due
largely to one-time charges and costs this year which will not negatively impact
earnings going forward,” observed Helen Johnson-Leipold, Chairman and Chief
Executive Officer, Johnson Outdoors Inc. “We are excited and confident in the
future of Johnson Outdoors, and committed to sustainable profitable growth
to
enhance long-term value for our shareholders. For the first time, we
are in a position to return a portion of earnings to shareholders in the form
of
a dividend without compromising our ability to pursue acquisitions and organic
growth opportunities consistent with our strategic plan. Our
performance this year demonstrates we have the capability and capacity to expand
our leadership in the outdoor recreational marketplace and achieve our target
of
half a billion dollars in sales over the next few years.”
YEAR-TO-DATE RESULTS
Total
Company net sales for the first nine months of fiscal 2007 were $344.4 million,
a 9% increase over $315.5 million during the same period last
year. Excluding military sales in the current and prior nine-month
period, total Company net sales would have increased 12%. Key drivers in the
nine-month period were:
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§
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Successful
new product introductions for Minn Kota®, Humminbird® and Cannon®
brands.
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§
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Strong
demand behind new product launches and international market expansion
in
the Company’s paddle sport brands.
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§
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Improved
performance in European Diving operations due to growth in SCUBAPRO® and
the acquisition of the Seemann Sub™
brand.
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§
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The
anticipated slow down in military
sales.
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2
Total
Company operating profit was $16.1 million during the current nine-month period
compared to $21.4 million during the prior year-to-date period. Key
factors impacting the year-to-date unfavorable comparison were:
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§
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The
expected decline in military sales, primarily accounting for lower
Outdoor
Equipment profits versus the same period last
year.
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§
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Sales
growth in Marine Electronics which was partially offset by lower
margins
due to increased labor costs to meet continued high demand for new
products.
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§
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A
one-time $4.4 million settlement payment in Watercraft, partly offset
by
increased paddle sport brand sales.
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§
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Corporate
investments of $1.8 million in strategic future growth initiatives
during
the second quarter.
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Net
income year-to-date was $7.7 million, or $0.84 per diluted share, versus net
income of $9.6 million, or $1.05 per diluted share, in the prior year nine-month
period.
OTHER
FINANCIAL INFORMATION
The
Company’s debt to total capitalization stood at 27% at the end of the fiscal
third quarter versus 26% at June 30, 2006 as a result of short-term borrowings
to meet higher working capital needs. Debt, net of cash and
short-term investments, increased to $36.4 million at the end of this quarter
versus $20.2 million at the end of the prior year
quarter. Depreciation and amortization was $7.1 million in the
current nine-months versus $6.6 million in the previous year-to-date period.
Capital spending totaled $8.3 million year-to-date, compared with $6.4 million
in the prior year first nine months. Gross margin percentage
year-to-date was 40.5%, compared to 41.6% in the prior year period.
“Short-term
debt is decreased versus the March quarter, but is higher than last year’s
quarter, as we funded working capital growth in our Marine Electronics and
Watercraft businesses. We expect working capital levels to drop next
quarter, yet remain higher than normal through the end of the year,” said David
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 more than
a
third of total Company year-to-date net sales. Strong new product
growth continues to bolster the Company’s already robust existing brands, and
differentiate the Company in the industry. Included among the new
product innovations from Watercraft for 2008 are:
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§
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The
OCEAN
KAYAK™
PROWLER™
TRIDENT™
is the Company’s newest entry
into the rapidly growing fishing kayak segment which has doubled
in size
each of the past five years. Designed expressly for the serious
kayak angler, the new Prowler™ Trident™ includes unique features such as:
the couch-like Comfort Plus™ seat back; the first-ever Sonar Shield™ to
reduce glare on fishfinder screens; and, an extra-large capacity
bow hatch
outfitted with the easy-to-open Cross Lock™ strap
system.
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§
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The
NECKY®
MANITOU™
13
&
14
ULTRALITES™
combine the stability and comfort of recreational
boats
with the feel and glide of performance touring kayaks. Weighing
in at less than 40 pounds, the new Ultralites™ are as easy to handle off
the water as they are on, and boast a composite seat pan with comfortable
foam cover, supportive back band and adjustable foot
pedals.
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3
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§
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The
NECKY®
ELIZA™
ULTRALITE™,
designed by women for women to bring
performance,
style and grace to the touring kayak category for the female
paddler. The ergonomically designed ELIZA™ cockpit is
wider to
account for a woman’s center of gravity and shorter in length, with a
shallow V-shaped hull that is reactive and edgy, while providing
an
excellent balance between tracking and maneuverability on the
water. A unique, continuous cored construction allows for a
stiffer, lighter hull which translates into enhanced durability and
superior efficiency and responsiveness on the
water.
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CONFERENCE
CALL AND
WEBCAST
The
Company will host a conference call and audio web cast on Thursday, July 26,
2007 at 11:00 a.m. Eastern 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 60073362. The
replay will be available through August 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®, UWATEC® and Seemann Sub™
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, including
those related to intellectual property matters; 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.
#
# # #
#
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-
- FINANCIAL TABLES FOLLOW - -
-
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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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NINE
MONTHS ENDED
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||||||||||||||
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June
29
2007
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June
30
2006
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June
29
2007
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June
30
2006
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|||||||||||||
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Net
sales
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$ |
150,570
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$ |
135,540
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$ |
344,394
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$ |
315,476
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||||||||
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Cost
of sales
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86,708
|
78,133
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204,966
|
184,300
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||||||||||||
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Gross
profit
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63,862
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57,407
|
139,428
|
131,176
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||||||||||||
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Operating
expenses
|
49,185
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43,495
|
123,320
|
109,807
|
||||||||||||
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Operating
profit
|
14,677
|
13,912
|
16,108
|
21,369
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||||||||||||
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Interest
expense, net
|
1,466
|
1,455
|
3,663
|
3,575
|
||||||||||||
|
Other
(income) expense, net
|
(528 | ) |
167
|
(658 | ) |
458
|
||||||||||
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Income
before income taxes
|
13,739
|
12,290
|
13,103
|
17,336
|
||||||||||||
|
Income
tax expense
|
5,471
|
5,727
|
5,354
|
7,694
|
||||||||||||
|
Net
income
|
$ |
8,268
|
$ |
6,563
|
$ |
7,749
|
$ |
9,642
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||||||||
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Basic
earnings per common share
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$ |
0.91
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$ |
0.73
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$ |
0.86
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$ |
1.07
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||||||||
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Diluted
earnings per common share
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$ |
0.89
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$ |
0.72
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$ |
0.84
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$ |
1.05
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||||||||
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Diluted
average common shares outstanding
|
9,262
|
9,151
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9,239
|
9,151
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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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$ |
71,006
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$ |
57,585
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$ |
165,010
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$ |
139,132
|
||||||||
|
Outdoor
equipment
|
17,220
|
20,430
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46,494
|
53,467
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||||||||||||
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Watercraft
|
37,146
|
35,533
|
71,616
|
68,061
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||||||||||||
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Diving
|
25,461
|
22,265
|
61,910
|
55,203
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||||||||||||
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Other/eliminations
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(263 | ) | (273 | ) | (636 | ) | (387 | ) | ||||||||
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Total
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$ |
150,570
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$ |
135,540
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$ |
344,394
|
$ |
315,476
|
||||||||
|
Operating
profit (loss):
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||||||||||||||||
|
Marine
electronics
|
$ |
12,551
|
$ |
9,852
|
$ |
21,559
|
$ |
20,713
|
||||||||
|
Outdoor
equipment
|
2,806
|
2,476
|
5,681
|
7,094
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||||||||||||
|
Watercraft
|
(1,199 | ) |
3,047
|
(4,093 | ) | (584 | ) | |||||||||
|
Diving
|
3,014
|
2,143
|
3,769
|
3,178
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||||||||||||
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Other/eliminations
|
(2,495 | ) | (3,606 | ) | (10,808 | ) | (9,032 | ) | ||||||||
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Total
|
$ |
14,677
|
$ |
13,912
|
$ |
16,108
|
$ |
21,369
|
||||||||
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Balance
Sheet Information (End of Period)
|
||||||||||||||||
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Cash
and short-term investments
|
$ |
35,426
|
$ |
43,629
|
||||||||||||
|
Accounts
receivable, net
|
107,851
|
94,770
|
||||||||||||||
|
Inventories,
net
|
85,097
|
65,388
|
||||||||||||||
|
Total
current assets
|
245,687
|
220,439
|
||||||||||||||
|
Total
assets
|
356,197
|
325,390
|
||||||||||||||
|
Short-term
debt
|
61,843
|
43,001
|
||||||||||||||
|
Total
current liabilities
|
143,333
|
115,036
|
||||||||||||||
|
Long-term
debt
|
10,006
|
20,806
|
||||||||||||||
|
Shareholders’
equity
|
193,777
|
181,525
|
||||||||||||||
5