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 25,
2008
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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 25, 2008, Johnson Outdoors Inc. (the “Company”) issued a press release
announcing results for the fiscal first quarter ended December 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.
(d) Exhibits. The following exhibit is being furnished
herewith:
99.1 Press
Release Dated January 25, 2008.
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
25, 2008
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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 January 25, 2008.
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4
EXHIBIT
99.1
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
2008 FIRST QUARTER
RESULTS
RACINE,
WISCONSIN,
January 25, 2008……Johnson Outdoors
Inc. (Nasdaq: JOUT), a leading global outdoor recreation company, today
announced net sales of $76.0 million for the first quarter ended December 28,
2007, an increase of 6.4 percent compared to sales of $71.4 million for the
prior year quarter. Net loss from continuing operations of $3.6 million,
or ($0.40) per diluted share for the first quarter of 2008, compared
unfavorably to a net loss from continuing operations of $1.3 million, or ($0.14)
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.
The
increase in total Company net sales was driven by double-digit revenue growth
year-over-year in three of the Company’s four business units, while strength in
export sales offset slower domestic sales growth in Marine Electronics and
Diving.
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●
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Marine
Electronics revenues were 12.9 percent ahead of last year due to
growth in
Humminbird®
and export sales.
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●
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Watercraft
sales increased 17.3 percent over
the
prior year quarter due to positive response to new products in the
paddle
sports segment.
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●
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Diving
revenues grew 27.3 percent above last year’s first quarter due to the
continued successful rollout of a new-to-world dive computer and
favorable
currency translation which added 6.4 percent to sales.
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●
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Outdoor
Equipment revenues compared unfavorably to last year’s first quarter due
to the expected slowdown of military sales and one-time special market
sales of $1.4 million in the prior year quarter. Excluding military
and
one-time orders, Outdoor Equipment
revenues
would have increased 22.7 percent.
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Total
Company operating loss from continuing operations during the seasonally slow
first quarter was $4.6 million compared to an operating loss of $2.2 million
in
the prior year quarter. Key drivers behind the unfavorable comparison
were:
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Lower
military sales.
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Lower
margins in Marine Electronics driven primarily by both unfavorable
product
and geographic mix.
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Lower
margins in Diving due in part to cost increases from imported goods
to the
U.S. market.
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The
Company reported a net loss from continuing operations of $3.6 million, or
($0.40) per diluted share, during the historically slow first quarter, compared
to a net loss from continuing operations of $1.3 million, or ($0.14) per diluted
share, in the same quarter last year. On January 18, 2008, the Company
announced it had incurred $1.3 million in pre-tax impairment charges related
to
inventory and fixed assets during the 2008 first fiscal quarter as a result
of
its decision to explore strategic alternatives for its Escape®
brand of
products. The Company anticipates incurring an additional $0.2 million in
charges related to Escape®,
and
results of the Escape®
brand
products will be reported as discontinued operations. Net loss from
discontinued operations totaled $1.1 million versus a $0.3 million loss in
the
same quarter last year. Total net loss for the quarter was $4.7
million compared to $1.6 million in the prior year.
“We
enter
2008 with our long-term strategic growth plan on target, working hard to deliver
on its cornerstones of winning innovation, targeted acquisitions and geographic
expansion. Our healthy balance sheet and solid cash position gives us the
financial flexibility to move forward aggressively with our plans,” said Helen
Johnson-Leipold, Chairman and Chief Executive Officer. “At the same time,
we will continue investing in strengthening operations and supply chain
optimization to ensure we manage growth efficiently. As always, our focus
is on driving sustainable, profitable growth behind our commitment to enhanced
shareholder value.”
OTHER FINANCIAL INFORMATION
The
Company’s debt to total capitalization stood at 29 percent at the end of the
quarter versus 27 percent at December 29, 2006. Debt, net of cash, was
$44.8 million compared to $20.3 million in the prior year quarter. Depreciation
and amortization was $2.2 million year-to-date, flat with prior year. Capital
spending totaled $2.4 million during the first quarter compared with $2.7
million in the 2007 first fiscal quarter.
“Along
with lower-margin products and exports driving topline growth, there was a
corresponding erosion in profitability. Once our warm-weather domestic
selling season kicks in, we expect to see margins and profitability improve,”
said David W. Johnson, Vice President and Chief Financial Officer. “Increased
working capital is due to higher sales volume in the quarter, and inventory
ramp-up in preparation for our primary selling season. We are watching this
closely and ready to take action and make adjustments to help bring working
capital more in line when the season kicks into full gear.”
2
INNOVATION
UPDATE
Johnson
Outdoors delivers 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 for the past four years. Strong new
product growth continues to bolster the Company’s already robust existing brands
and differentiate the Company in the industry. Among the 2008
innovations from Diving and Watercraft are:
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●
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UWATEC®GALILEO™
is the first dive computer to integrate heart rate monitoring, along
with
digital navigation, downloadable web-based upgrades and patented
technology to monitor up to four divers’ tanks.
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●
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OCEAN
KAYAK™PROWLERTRIDENT15™ delivers
kayak anglers the
first-ever Rod Pod™—a
spacious storage hatch well
within reach of the paddling angler – along with new graphics designed to
help consumers identify key features and upgrade possibilities.
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WEBCAST
The
Company will host a conference call
and audio web cast at 11:00
a.m. Eastern Time on Friday January 25, 2008. A live listen-only web
cast of the conference call may be accessed at Johnson Outdoors' home page.
A
replay will be available on Johnson Outdoors' home page, or by dialing (888)
286-8010 or (617) 801-6888
and providing confirmation code
46799788.
The
replay will be
available through February 1, 2008 by phone and for 30 days on the
Internet.
ABOUT
JOHNSON
OUTDOORS
INC.
JOHNSONOUTDOORSis
a leading global outdoor recreation
company that turns ideas intoadventure 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;
Carlisle® and
Extrasport® paddling
accessories; Minn Kota®motors;
Cannon®downriggers;
Humminbird® fishfinders;
Geonav®chartplotters;
SCUBAPRO® UWATEC®and
Seemann® dive
equipment; Silva®compasses;
Tech4O®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.
#
# # #
#
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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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December
28
2007
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December
29
2006
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Net
sales
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$ | 75,967 | $ | 71,427 | ||||
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Cost
of sales
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46,678 | 42,907 | ||||||
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Gross
profit
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29,289 | 28,520 | ||||||
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Operating
expenses
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33,870 | 30,753 | ||||||
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Operating
loss
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(4,581 | ) | (2,233 | ) | ||||
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Interest
expense, net
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792 | 852 | ||||||
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Other
expenses, net
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54 | 1 | ||||||
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Loss
before income taxes
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(5,427 | ) | (3,086 | ) | ||||
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Income
tax benefit
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(1,803 | ) | (1,774 | ) | ||||
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Net
loss from continuing operations
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(3,624 | ) | (1,312 | ) | ||||
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Net
loss from discontinued operations, net
of tax of
$626 and $151 respectively
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(1,066 | ) | (257 | ) | ||||
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Net
loss
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$ | (4,690 | ) | $ | (1,569 | ) | ||
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Net
loss basic and diluted per common share:
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||||||||
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Continuing
operations
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$ | (0.40 | ) | $ | (0.14 | ) | ||
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Discontinued
operations
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$ | (0.12 | ) | $ | (0.03 | ) | ||
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Diluted
average common shares outstanding
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9,071 | 9,006 | ||||||
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Segment
Results
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Net
sales:
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Marine
electronics
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$ | 33,263 | $ | 29,466 | ||||
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Outdoor
equipment
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7,985 | 13,690 | ||||||
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Watercraft
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13,454 | 11,467 | ||||||
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Diving
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21,531 | 16,919 | ||||||
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Other/eliminations
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(266 | ) | (115 | ) | ||||
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Total
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$ | 75,967 | $ | 71,427 | ||||
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Operating
profit (loss):
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||||||||
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Marine
electronics
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$ | 263 | 204 | |||||
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Outdoor
equipment
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(382 | ) | 1,643 | |||||
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Watercraft
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(2,113 | ) | (1,984 | ) | ||||
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Diving
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560 | 631 | ||||||
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Other/eliminations
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(2,909 | ) | (2,727 | ) | ||||
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Total
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$ | (4,581 | ) | $ | (2,233 | ) | ||
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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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$ | 37,181 | $ | 48,548 | ||||
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Accounts
receivable, net
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69,127 | 56,518 | ||||||
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Inventories,
net
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106,850 | 82,078 | ||||||
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Net
assets of discontinued operations
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335 | 1,936 | ||||||
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Total
current assets
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235,561 | 209,968 | ||||||
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Total
assets
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353,787 | 311,929 | ||||||
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Short-term
debt
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82,002 | 58,801 | ||||||
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Total
current liabilities
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142,494 | 111,634 | ||||||
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Long-term
debt
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3 | 10,005 | ||||||
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Shareholders’
equity
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196,402 | 181,995 | ||||||
5