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): November 16,
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
November 16, 2007, Johnson Outdoors Inc. (the “Company”) issued a press
release announcing results for the fiscal fourth quarter and year ended
September 28, 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
Press Release Dated November 16, 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: November
16, 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 November 16, 2007.
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4
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 FOURTH QUARTER AND FULL YEAR
RESULTS
RACINE,
WISCONSIN,
November 16, 2007…… Johnson Outdoors Inc. (Nasdaq: JOUT), a leading
global outdoor recreation company, today announced increased net sales and
earnings for the 2007 fiscal fourth quarter and full year. Net sales for the
seasonally slow fourth quarter ended September 28, 2007 were $87.7 million,
an
increase of 9 percent compared to $80.3 million for the prior year
quarter. Net income for the quarter was $1.5 million ($0.16 per
diluted share) versus a net loss of $0.9 million ($0.10 per diluted share)
for
the prior year quarter. For the full year, the Company reported
record annual net sales of $432.1 million compared to $395.8 million for fiscal
2006, representing 9 percent growth year-over-year. Net income for
the year was $9.2 million ($1.00 per diluted share), a 6 percent increase
compared to $8.7 million in the prior year.
FOURTH
QUARTER RESULTS
While
fourth quarter results historically reflect a loss due to the slowing of sales
and production of the Company’s seasonal outdoor recreation products, innovation
and growth in key markets continued to drive growth in the Company’s core
consumer brands during the quarter. Key changes for the quarter
included:
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■
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Marine
Electronics Group revenues surged 30.4 percent ahead of last year’s fourth
quarter on the strength of HUMMINBIRD® SIDE-IMAGING™
technology and
MINN KOTA®
TERROVA™ which is
the
Company’s most successful trolling motor launch in its
history.
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■
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Diving
revenues were 15 percent ahead of last year driven by strong market
response to UWATEC®
GALILEO™, the
next-generation diving computer; the addition of SEEMANN™ SUB,
acquired in April
2007, which added $2.3 million to Diving net sales during the quarter;
and
favorable currency translation of $0.7
million.
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■
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Watercraft
revenues compared unfavorably to last year’s record fourth quarter due
largely to a shift in customer order pacing versus the prior
year.
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■
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Outdoor
Equipment revenues decreased 25 percent due to anticipated declines
in
military tent sales and $3.1 million of non-repeatable specialty
market
sales in the prior year quarter.
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Total
Company operating profit of $1.8 million in the fourth quarter compared
favorably to an operating loss of $0.7 million in the same period last
year. Operating profit improvement was due to increased sales volume
and the recovery of $2.9 million related to a prior year flood.
The
Company reported net earnings during the seasonally slow fourth quarter of
$1.5
million, or $0.16 per diluted share, a $2.4 million improvement over the net
loss of $0.9 million, or $0.10 per diluted share, in the prior year
quarter.
FULL
YEAR RESULTS
Total
Company net sales were a record $432.1 million, a 9 percent increase over $395.8
million in the prior year. Key factors impacting the year-over-year
sales results included:
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■
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Strong
new product introductions and marketing programs in Marine Electronics
which drove a 20 percent increase in group net sales over the previous
year.
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■
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Stabilization
and growth in Europe, a successful new diving computer launch, the
addition of SEEMANN™
SUB and favorable
currency translation
together
contributed to a 13 percent
increase in Diving net sales
year-over-year.
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■
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Favorable
response to new paddle sport innovations and double-digit growth
in key
international markets led to a 3 percent increase in Watercraft sales
for
the year.
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■
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Outdoor
Equipment revenues compared unfavorably to last year due to the expected
slow-down in military tent sales, and to non-repeatable specialty
market
sales of $6.8 million in the prior
year.
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Operating
profit for the year was $17.9 million compared to $20.6 million in 2006. Key
factors driving the year-over-year changes in operating profit
included:
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■
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A
one-time $4.4 million settlement payment in Watercraft partially
offset by
increased paddle sport brand sales.
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■
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The
recovery of $2.9 million in flood-related
costs.
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■
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The
anticipated 21 percent decline in military
sales.
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■
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Sales
growth in Marine Electronics which was partially off-set by lower
margins
due to increased labor costs to continue to meet high new product
demand.
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■
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Corporate
investments of $2.0 million in strategic profitable growth
initiatives.
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Net
income was $9.2 million, or $1.00 per diluted share, versus net income of $8.7
million, or $0.95 per diluted share, in the prior year.
“Our
strategic growth plan is generating outstanding topline momentum through
continuous innovation, targeted acquisitions and geographic expansion as new
products, new brands and European growth were key drivers of increased fiscal
2007 revenues,” observed Helen Johnson-Leipold, Chairman and Chief Executive
Officer, Johnson Outdoors Inc. “Importantly, this year we invested in
building capability to deliver sustained profitable growth in the
future. An in-depth look at the outdoor recreational universe helped
focus and prioritize opportunities to expand our footprint in the
marketplace. Innovative new media and marketing efforts cultivated
enhanced customer and consumer relationships. And, supply chain
optimization analyses revealed how to better leverage assets and significantly
improve profitability going forward.”
2
Further
commenting, Ms. Johnson-Leipold said: “Our decision to return profits to our
shareholders thru quarterly dividends is a strong indication of the confidence
we have in the future performance of this Company, and demonstrates our
commitment to enhanced shareholder value. I am more excited than ever
by the future of Johnson Outdoors. ”
OTHER
FINANCIAL INFORMATION
The
Company’s debt to total capitalization stood at 18 percent at the end of the
year versus 17 percent at September 29, 2006. Debt, net of cash, was
$3.6 million at year-end. Depreciation and amortization was
$9.4 million year-to-date compared with $9.2 million in the prior
year. Capital spending totaled $13.4 million in 2007 compared
with last year’s $8.9 million.
“Our
businesses are on an accelerated growth curve, and our focus is on strengthening
operations and streamlining business processes to manage growth more
efficiently. Acquisitions have not added complexity; however, they have
contributed to higher inventory and working capital levels, along with
record-level market demand for our products. Going forward, we look
to further leverage assets to grow profits faster than sales in the future.”
said David Johnson, Vice-President and Chief Financial
Officer “Our focus on enhanced tax planning and management
helped net a twelve point reduction in our effective tax rate, from 44.7 percent
last year to 32.6 percent in 2007, with the expectation for this to return
to a
normalized level in the high thirty percent range next
year. Importantly, we end the year with a strong cash position
and a debt level that gives us the ability and flexibility needed to
successfully execute our strategic growth plans.”
INNOVATION
UPDATE
Johnson
Outdoors delivers award-winning, meaningful innovation to the outdoor recreation
marketplace driven by unique consumer insights, with new products representing
more than 30 percent of total Company net sales in 2007. Strong
new product growth continues to bolster the Company’s already robust existing
brands and differentiate the Company in the industry. Notable
award-winning products this year include, among others:
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■
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Necky®
Chatham™ 16, a long-distance composite kayak with a
full-chined hull providing superior stability, maneuverability and
performance in calm or rough waters, was selected a “best of adventure
gear” winner by National Geographic
Adventure and named “gear of the year” kayak by Men’s
Journal.
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■
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Eureka!®
N!ergy™, the first wired tent with its own E!Power battery
pack that brings the comforts of home to the backyard or backwoods,
was
named one of camping’s “best of the year” by Reserve
America.
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■
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Cannonlink®
System
Module, which
controls multiple downriggers from one central HUMMINBIRD® Fishing System,
received the prestigious 2007 Innovation Award for Consumer
Electronics and Software from the National Marine Manufacturers
Association (NMMA.)
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WEBCAST
The
Company will host a conference call and audio web cast on Friday, November
16,
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
66699602. The replay will be available through
November 23, 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®, Bottom
Line® and Fishin’ Buddy® fishfinders; SCUBAPRO®UWATEC® and Seemann™ dive
equipment; Silva® compasses and digital instruments; and Eureka!®
tents. The Company has operations in 17 countries, employs 1,400
people and reported revenues of $432.1 million in fiscal 2007.
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 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.
#
# # #
#
-
- - 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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TWELVE
MONTHS ENDED
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||||||||||||||
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Sept
28
2007
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Sept
29
2006
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Sept
28
2007
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Sept
29
2006
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Net
sales
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$ |
87,666
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$ |
80,314
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$ |
432,060
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$ |
395,790
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||||||||
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Cost
of sales
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52,211
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46,274
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257,177
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230,574
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||||||||||||
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Gross
profit
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35,455
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34,040
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174,883
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165,216
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||||||||||||
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Operating
expenses
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33,625
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34,784
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156,944
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144,591
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||||||||||||
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Operating
profit (loss)
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1,830
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(744 | ) |
17,939
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20,625
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|||||||||||
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Interest
expense, net
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762
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910
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4,424
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4,485
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||||||||||||
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Other
expense (income), net
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463
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(85 | ) | (193 | ) |
376
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||||||||||
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Income
(loss) before income taxes
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605
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(1,569 | ) |
13,708
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15,764
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|||||||||||
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Income
tax expense (benefit)
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(880 | ) | (645 | ) |
4,474
|
7,049
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||||||||||
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Net
income (loss)
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$ |
1,485
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$ | (924 | ) | $ |
9,234
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$ |
8,715
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|||||||
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Basic
earnings (loss) per common share:
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$ |
0.16
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$ | (0.10 | ) | $ |
1.02
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$ |
0.97
|
|||||||
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Diluted
earnings (loss) per common share:
|
$ |
0.16
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$ | (0.10 | ) | $ |
1.00
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$ |
0.95
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|||||||
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Diluted
average common shares outstanding
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9,236
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9,001
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9,254
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9,161
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Segment
Results
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Net
sales:
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Marine
electronics
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$ |
33,040
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$ |
25,341
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$ |
198,050
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$ |
164,472
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||||||||
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Outdoor
equipment
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9,369
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12,481
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55,863
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65,948
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||||||||||||
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Watercraft
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18,688
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19,241
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90,304
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87,302
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||||||||||||
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Diving
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26,769
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23,270
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88,679
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78,473
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Other/eliminations
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(200 | ) | (19 | ) | (836 | ) | (405 | ) | ||||||||
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Total
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$ |
87,666
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$ |
80,314
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$ |
432,060
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$ |
395,790
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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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$ |
1,374
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$ |
870
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$ |
22,933
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$ |
21,583
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||||||||
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Outdoor
equipment
|
2,783
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1,142
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8,464
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8,236
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Watercraft
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(2,213 | ) | (1,989 | ) | (6,307 | ) | (2,573 | ) | ||||||||
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Diving
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3,164
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2,426
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6,933
|
5,604
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||||||||||||
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Other/eliminations
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(3,278 | ) | (3,193 | ) | (14,084 | ) | (12,225 | ) | ||||||||
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Total
|
$ |
1,830
|
$ | (744 | ) | $ |
17,939
|
$ |
20,625
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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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$ |
39,232
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$ |
51,689
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||||||||||||
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Accounts
receivable, net
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57,605
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52,844
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||||||||||||||
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Inventories,
net
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88,833
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63,828
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||||||||||||||
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Total
current assets
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204,951
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184,897
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||||||||||||||
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Total
assets
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319,679
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284,226
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||||||||||||||
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Short-term
debt
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32,800
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17,000
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||||||||||||||
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Total
current liabilities
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99,055
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74,650
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||||||||||||||
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Long-term
debt
|
10,006
|
20,807
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||||||||||||||
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Shareholders’
equity
|
200,165
|
180,881
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5