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 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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||
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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
25, 2008, Johnson Outdoors Inc. (the “Company”) issued a press release
announcing results for the fiscal second quarter and six months ended March
28,
2008 (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 April 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.
JOHNSON
OUTDOORS INC.
Date: April
25, 2008
BY
/s/
David W.
Johnson
David
W.
Johnson, Vice President and Chief
Financial Officer
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 25,
2008.
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4
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
2008 SECOND QUARTER
RESULTS
RACINE,
WISCONSIN,
April 25, 2008……Johnson Outdoors
Inc. (Nasdaq: JOUT), a leading global outdoor recreation company, today
announced net sales of $121.8 million for the second quarter ended March 28,
2008 compared to net sales of $122.0 million for the prior year second
quarter. Earnings from continuing operations of $0.8 million, or
$0.09 per diluted share for the second quarter of 2008, compared unfavorably
to
earnings from continuing operations of $2.1 million, or $0.23 per diluted share,
in the prior year quarter.
SECOND
QUARTER RESULTS
Second
quarter sales reflect initial shipments to customers in anticipation of the
primary retail selling period for the Company’s seasonal outdoor
products. Total Company net sales in the quarter were flat with the
prior year period, benefiting from higher exports in Marine Electronics, growth
in Watercraft and Diving, foreign currency translation increase of 2.2 percent
and acquisitions. The expected slowing of military sales accounted
largely for the unfavorable year-over-year comparison in Outdoor
Equipment. Key changes included:
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§
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Marine Electronics revenues were 4.6 percent behind last year due to a soft domestic boat market. GEONAV®, acquired in November 2007, added $4.5 million of revenue in the quarter. | |
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§
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Watercraft
sales increased 5.1 percent over
the
prior year quarter due primarily to growth in paddle sport accessories.
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|
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§
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Diving
revenues rose 20.3 percent above last year’s second quarter due to growth
in key international markets. Seemann®,
acquired
in April 2007, added $2.1 million to quarterly sales and favorable
currency translation added $1.7 million.
|
|
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§
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Outdoor
Equipment revenues compared unfavorably to last year’s second quarter due
to the expected slowdown of military sales. In addition,
revenue gains in Consumer were unable to offset lower Commercial
sales.
|
Total
Company operating profit for the second quarter was $3.6 million compared to
an
operating profit of $4.6 million in the prior year quarter. Key drivers
behind the unfavorable comparison were:
|
§
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Lower
margins in Marine Electronics driven by lower domestic sales, unfavorable
product and geographic mix and integration costs associated with
the
GEONAV
acquisition.
|
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§
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Lower
military sales.
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§
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Strategic
charges of $0.6 million related to Global Diving
restructuring.
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The
Company reported income from continuing operations of $0.8 million, or $0.09
per
diluted share, compared to income from continuing operations of $2.1 million,
or
$0.23 per diluted share, in the same quarter last year. Income was
negatively impacted by a $1.6 million pre-tax foreign exchange loss related
to
GAAP treatment of U.S. dollar holdings in Switzerland where the Swiss franc
strengthened significantly during the quarter. Loss from discontinued
operations of $0.3 million, or ($0.04) per diluted share, was consistent with
the prior year quarter. Net income for the quarter was $0.5 million,
or $0.05 per diluted share, compared to net income of $1.7 million, or $0.19
per
diluted share in the prior year.
“Economic
uncertainty in the U.S. is starting to have an effect on outdoor retailers,
which are keeping inventory levels below last year until they can gauge consumer
demand at shelf in the next few months. On the other hand,
international sales continue to grow and orders among U.S. specialty retailers
are solid,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
“In addition to ongoing cost-savings initiatives, we have instituted
strict company-wide cost-control measures and are working hard to manage
inventory levels down in the face of a soft marketplace. At the same time,
we
will continue to protect the future by investing wisely and appropriately in
innovation.”
YEAR TO
DATE
RESULTS
Net
sales
in the first six months of fiscal 2008 were $197.8 million versus $193.4 million
in the same six-month period last year, an increase of 2.3 percent. Excluding
the anticipated $6.5 million decline in military sales, total Company net sales
would have increased 5.8 percent. Key drivers in the year-to-date period
were:
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§
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Successful
new product launches in Watercraft and
Diving.
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§
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Growth
in key international markets in Marine Electronics and
Diving.
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§
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Lower
military sales.
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§
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Lower
domestic sales in Marine Electronics due to a soft boat
market.
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Total
Company operating loss was $0.9 million during the first six months of fiscal
2008 compared to an operating profit of $2.4 million during the prior
year-to-date period. Loss from continuing operations for the first
six months of the year was $2.8 million, or ($0.31) per diluted share, versus
income from continuing operations of $0.8 million, or $0.08 per diluted share,
in the first six months of the prior year. Primary drivers behind the
year-to-date comparison were:
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§
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Reduced
margins in Marine Electronics due to product and geographic mix and
integration costs.
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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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Global
Diving restructuring.
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§
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Negative
impact of foreign currency
holdings.
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2
OTHER
FINANCIAL
INFORMATION
The
Company’s debt to total capitalization stood at 36 percent at the end of the
current quarter versus 33 percent at this time last year. Debt, net of
cash, was $87.3 million compared to $56.1 million at the end of the prior year
quarter. Depreciation and amortization was $4.9 million year-to-date compared
with $4.6 million in the prior year period. Capital spending totaled $5.3
million year to date compared with $5.7 million in the same period last
year. The Company entered into a new $60 million credit facility
during the quarter. Additional information on the new loan agreement
can be found in the Company’s Form 8-K filing with the Securities and Exchange
Commission dated February 19, 2008.
According
to David W. Johnson Vice President and Chief Financial Officer, “Performance in
Europe and other key international markets is strong, and our brands appear
to
be gaining market share against the competition everywhere, including the
U.S. We have tightened our belts, revised production schedules and
are working with vendors to help minimize the impact of a slowing domestic
economy.”
AWARDS
UPDATE
Johnson
Outdoors was named one of the top three “best places to work” among large
companies by OUTSIDE
magazine. The
program sought to honor those companies that helped employees balance
productivity with an active, eco-conscious lifestyle. SPORT
DIVER magazine also awarded the new UWATEC®
Galileo™
Sol dive
computer with its 2008 Editor’s Pick honor. The Galileo is now the
most successful dive computer launch in the Company’s history.
WEBCAST
The
Company will host a conference call
and audio web cast at 11:00 a.m. Eastern Time on Friday April 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 79552889.
The
replay will be available through
May 2,
2008 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;
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.
#
# # #
#
-
- - - 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
28
2008
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March
30
2007
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March
28
2008
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March
30
2007
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|||||||||||||
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Net
sales
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$ | 121,813 | $ | 121,972 | $ | 197,780 | $ | 193,399 | ||||||||
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Cost
of sales
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75,007 | 74,815 | 121,685 | 117,721 | ||||||||||||
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Gross
profit
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46,806 | 47,157 | 76,095 | 75,678 | ||||||||||||
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Operating
expenses
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43,159 | 42,549 | 77,029 | 73,302 | ||||||||||||
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Operating
profit (loss)
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3,647 | 4,608 | (934 | ) | 2,376 | |||||||||||
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Interest
expense, net
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1,278 | 1,344 | 2,070 | 2,197 | ||||||||||||
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Other
(income) expense, net
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1,306 | (131 | ) | 1,360 | (130 | ) | ||||||||||
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Income
(loss) before income taxes
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1,063 | 3,395 | (4,364 | ) | 309 | |||||||||||
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Income
tax expense (benefit)
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281 | 1,314 | (1,522 | ) | (460 | ) | ||||||||||
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Income
(loss) from continuing operations
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782 | 2,081 | (2,842 | ) | 769 | |||||||||||
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Loss
from discontinued operations, net of income tax benefit
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(320 | ) | (338 | ) | (1,386 | ) | (595 | ) | ||||||||
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Net
income (loss)
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$ | 462 | $ | 1,743 | $ | (4,228 | ) | $ | 174 | |||||||
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Income
(loss) from continuing operations per common share –
Basic:
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||||||||||||||||
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Class
A
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$ | 0.09 | $ | 0.23 | $ | (0.31 | ) | $ | 0.09 | |||||||
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Class
B
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$ | 0.09 | $ | 0.21 | $ | (0.31 | ) | $ | 0.08 | |||||||
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Loss
from discontinued operations per common share – Basic:
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||||||||||||||||
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Class
A
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$ | (0.04 | ) | $ | (0.04 | ) | $ | (0.15 | ) | $ | (0.07 | ) | ||||
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Class
B
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$ | (0.04 | ) | $ | (0.03 | ) | $ | (0.15 | ) | $ | (0.06 | ) | ||||
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Net
income (loss) per common share – Basic:
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||||||||||||||||
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Class
A
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$ | 0.05 | $ | 0.19 | $ | (0.46 | ) | $ | 0.02 | |||||||
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Class
B
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$ | 0.05 | $ | 0.18 | $ | (0.46 | ) | $ | 0.02 | |||||||
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Income
(loss) from continuing operations per common Class A and B share
–
Dilutive
|
$ | 0.09 | $ | 0.23 | $ | (0.31 | ) | $ | 0.08 | |||||||
|
Loss
from discontinued operations per common Class A and B share –
Dilutive
|
$ | (0.04 | ) | $ | (0.04 | ) | $ | (0.15 | ) | $ | (0.06 | ) | ||||
|
Net
income (loss) per common Class A and B share – Dilutive
|
$ | 0.05 | $ | 0.19 | $ | (0.46 | ) | $ | 0.02 | |||||||
|
Weighted
average common – Basic:
|
||||||||||||||||
|
Class
A
|
7,856,666 | 7,810,086 | 7,855,261 | 7,798,863 | ||||||||||||
|
Class
B
|
1,217,342 | 1,217,977 | 1,217,376 | 1,217,977 | ||||||||||||
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Dilutive
stock options and restricted stock
|
179,509 | 153,231 | 182,860 | 159,830 | ||||||||||||
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Weighted
average common – Dilutive
|
9,253,517 | 9,181,294 | 9,255,497 | 9,176,670 | ||||||||||||
5
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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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$ | 61,544 | $ | 64,538 | $ | 94,807 | $ | 94,004 | ||||||||
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Outdoor
equipment
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13,244 | 15,584 | 21,228 | 29,274 | ||||||||||||
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Watercraft
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23,730 | 22,578 | 37,184 | 34,045 | ||||||||||||
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Diving
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23,491 | 19,530 | 45,022 | 36,449 | ||||||||||||
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Other/eliminations
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(196 | ) | (258 | ) | (461 | ) | (373 | ) | ||||||||
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Total
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$ | 121,813 | $ | 121,972 | $ | 197,780 | $ | 193,399 | ||||||||
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Operating
profit (loss):
|
||||||||||||||||
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Marine
electronics
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$ | 5,483 | $ | 8,804 | $ | 5,746 | $ | 9,008 | ||||||||
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Outdoor
equipment
|
754 | 1,232 | 372 | 2,875 | ||||||||||||
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Watercraft
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(230 | ) | 36 | (2,343 | ) | (1,949 | ) | |||||||||
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Diving
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575 | 125 | 1,135 | 755 | ||||||||||||
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Other/eliminations
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(2,935 | ) | (5,589 | ) | (5,844 | ) | (8,313 | ) | ||||||||
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Total
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$ | 3,647 | $ | 4,608 | $ | (934 | ) | $ | 2,376 | |||||||
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Balance
Sheet Information
(End of Period)
|
||||||||||||||||
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Cash
and short-term investments
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$ | 27,662 | $ | 36,738 | ||||||||||||
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Accounts
receivable, net
|
120,168 | 111,533 | ||||||||||||||
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Inventories,
net
|
115,126 | 92,568 | ||||||||||||||
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Total
current assets
|
286,966 | 262,971 | ||||||||||||||
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Total
assets
|
412,154 | 365,710 | ||||||||||||||
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Short-term
debt
|
55,001 | 82,801 | ||||||||||||||
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Total
current liabilities
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127,871 | 161,736 | ||||||||||||||
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Long-term
debt
|
60,004 | 10,005 | ||||||||||||||
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Shareholders’
equity
|
203,748 | 185,180 | ||||||||||||||
6