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 25, 2008
Johnson Outdoors
(Exact name of registrant as specified in its charter)
Wisconsin | 0-16255 | 39-1536083 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
(262) 631-6600
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
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: | |||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 - Financial Information
Item 2.02. Results of Operations and Financial Condition.
On July 25, 2008, Johnson Outdoors Inc. (the "Company") issued a press release announcing results for the fiscal third quarter ended June 27, 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 July 25, 2008.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Johnson Outdoors |
||
Date: July 25, 2008 |
By: | /s/ DAVID W. JOHNSON David W. Johnson Vice President and Chief Financial Officer |
JOHNSON OUTDOORS INC.
Exhibit Index to Current Report on Form 8-K
EXHIBIT 99.1
RACINE, Wis., July 25, 2008 (PRIME NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global outdoor recreation company, today announced net sales from continuing operations of $141.2 million for the third quarter ended June 27, 2008 compared to net sales of $149.9 million for the prior year third quarter. Earnings from continuing operations of $7.9 million, or $0.85 per diluted share for the third quarter of 2008, compared unfavorably to earnings from continuing operations of $8.3 million, or $0.90 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 primary retail selling period for the Company's seasonal outdoor recreational products. Total Company net sales in the quarter declined 5.8 percent due to a weak U.S. economy and the effects of a soft domestic boat market on the Company's Marine Electronic brands. Key changes included:
* Marine Electronics revenues were 12.1 percent behind last year due to a soft domestic boat market. Growth in Humminbird(r) and the addition of $4.9 million in revenue from GEONAV(r), which was acquired in November 2007, could not offset declines in Minn Kota(r) and Cannon(r). * Diving revenues were 7.1 percent above last year's third quarter due to favorable currency translation which added $2.6 million. * Watercraft sales dipped 4.9 percent below the prior year quarter due to the effect of economic uncertainty on the retail marketplace. * Outdoor Equipment revenues were essentially flat with the prior year quarter, as revenue gains in Consumer almost entirely offset lower Commercial and military sales.
Total Company operating profit for the third quarter was $14.6 million compared to an operating profit of $14.8 million in the prior year quarter which was negatively impacted by a one-time $4.4 million legal settlement. Due to business performance, the Company reversed accruals of $3.2 million dollars related to its discretionary bonus and compensation plans this quarter. Other key factors impacting the current quarter were:
* Lower margins in Marine Electronics driven by lower domestic sales, unfavorable product and geographic mix, and start-up investments in GEONAV(r). * Restructuring charges of $1.0 million in Outdoor Equipment and Diving. * Lower military and commercial tent sales.
The Company reported income from continuing operations of $7.9 million, or $0.85 per diluted share, compared to income from continuing operations of $8.3 million, or $0.90 per diluted share, in the same quarter last year. Loss from discontinued operations of $0.1 million, or ($0.01) per diluted share, was consistent with the prior year quarter. Net income for the quarter was $7.8 million, or $0.84 per diluted share, compared to net income of $8.3 million, or $0.89 per diluted share, in the prior year.
"Growing economic uncertainty in the U.S. hit a peak just as the warm-weather season for our businesses was getting underway, and it has now impacted distribution channels in every business this quarter, with retailers being cautious and keeping their inventories to a minimum. As a result, we have ramped down production, restructured operations and moved aggressively on all identified cost-reduction initiatives. On the positive side, despite a soft summer retail market, retail reports indicate that, in general, our brands are outperforming the competition as meaningful new-product innovation accounted for more than a third of year-to-date revenues," said Helen Johnson-Leipold, Chairman and Chief Executive Officer. "Looking ahead, we will continue to invest in growth and innovation to help ensure we maintain our market-leadership positions when the economy rebounds. At the same time, we are moving forward on supply chain optimization initiatives in every business to drive improved efficiency across operations . Our strong commitment to the future for Johnson Outdoors and to enhanced shareholder value remains constant and unchanged regardless of the economic climate."
YEAR TO DATE RESULTS
Net sales in the first nine months of fiscal 2008 were $339.0 million versus $343.3 million in the same nine-month period last year. Key factors in the year-to-date period were:
* Lower domestic sales in Marine Electronics due to a soft boat market. * Successful new products, international growth and favorable currency translation in Diving. * Growth in Watercraft accessories. * A $7.0 million year-over-year decline in military sales.
Total Company operating profit was $13.6 million during the first nine months of fiscal 2008 compared to an operating profit of $17.2 million during the prior year-to-date period. Income from continuing operations for the first nine months of the year was $5.0 million, or $0.55 per diluted share, versus income from continuing operations of $9.0 million, or $0.97 per diluted share, in the first nine months of the prior year. Primary factors behind the year-to-date comparison were:
* Reduced margins in Marine Electronics due to lower sales, product and geographic mix, and start-up investments in GEONAV(r) * Restructuring charges in Outdoor Equipment and Global Diving. * Significant decline in military sales. * Reversal of accruals related to the Company's discretionary bonus and compensation plans. * Negative impact of foreign currency holdings during the second fiscal quarter. * Favorable year-over-year comparison in Watercraft due to a one-time $4.4 million legal settlement in the third quarter of the prior year.
OTHER FINANCIAL INFORMATION
The Company's debt to total capitalization stood at 25 percent at the end of the current quarter versus 27 percent at this time last year. Debt, net of cash, was $46.7 million compared to $36.4 million at the end of the prior year quarter due to higher working capital and acquisitions. Depreciation and amortization was $7.4 million year-to-date compared with $7.1 million in the prior year nine-month period. Capital spending totaled $8.4 million year to date compared with $8.3 million in the same period last year.
"Working capital continues to be a challenge, and we have shortened work weeks, eliminated production shifts, reduced our labor force, developed sku reduction plans and close-out programs to help bring finished goods inventory levels down over the next three months," said David W. Johnson Vice President and Chief Financial Officer. "In addition, we are closely monitoring global markets for signs of further softness or improvement in anticipation of 2009 planning. We have a strong line-up of new products in every business and we will be fact-based in our forecasts and production plans."
AWARDS UPDATE
The American Sportfishing Association (ASA) recognized Minn Kota(r) with an Anglers' Legacy Innovation Award as one of the Top 10 innovations that changed the way people fish. The new Humminbird(r) ICE 55 Flasher, which marks the Company's first entry into the ice-fishing segment, was named the "Best New Product - Electronics" at the 2008 ICAST show, the world's largest sportfishing convention and conference.
WEBCAST
The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Friday, July 25, 2008. A live listen-only web cast of the conference call may be accessed at Johnson Outdoors' web site -- www.johnsonoutdoors.com -- on the Investor section homepage. A replay will be available 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(r) canoes and kayaks; Ocean Kayak(tm) and Necky(r) kayaks; Lendal(r) paddles; Carlisle(r) and Extrasport(r) paddling accessories; Minn Kota(r) motors; Cannon(r) downriggers; Humminbird(r) fishfinders; GEONAV(r) marine electronics; SCUBAPRO(r) UWATEC(r) and Seemann(r) dive equipment; Silva(r) compasses; Tech4O(r) digital instruments; and Eureka!(r) tents.
Visit Johnson Outdoors at http://www.johnsonoutdoors.com
SAFE HARBOR STATEMENT
Certain matters discussed in this press release are "forward-looking statements," intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are considered forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results or outcomes to differ materially from those currently anticipated. Factors that could affect actual results or outcomes include changes in consumer spending patterns; the Company's success in implementing its strategic plan, including its focus on innovation; actions of and disputes with companies that compete with the Company; the Company's success in managing inventory; movements in foreign currencies or interest rates; the Company's success in restructuring of its European Diving operations; unanticipated issues related to the Company's military sales; the success of suppliers and customers; the ab ility 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.
JOHNSON OUTDOORS INC. (thousands, except per share amounts) --------------------------------------------------------------------- Operating Results THREE MONTHS ENDED NINE MONTHS ENDED --------------------------------------------------------------------- June 27 June 29 June 27 June 29 2008 2007 2008 2007 --------------------------------------------------------------------- Net sales $ 141,243 $ 149,868 $ 339,023 $ 343,267 Cost of sales 85,492 86,130 207,177 203,851 --------------------------------------------------------------------- Gross profit 55,751 63,738 131,846 139,416 Operating expenses 41,182 48,955 118,211 122,257 --------------------------------------------------------------------- Operating profit 14,569 14,783 13,635 17,159 Interest expense, net 1,533 1,466 3,603 3,663 Other (income) expense, net (304) (527) 1,056 (657) --------------------------------------------------------------------- Income before income taxes 13,340 13,844 8,976 14,153 Income tax expense 5,453 5,509 3,931 5,199 --------------------------------------------------------------------- Income from continuing operations 7,887 8,335 5,045 8,954 Loss from discontinued operations, net of income tax benefit (104) (67) (1,490) (662) --------------------------------------------------------------------- Net income $ 7,783 $ 8,268 $ 3,555 $ 8,292 --------------------------------------------------------------------- Income from continuing operations per common share - Basic: Class A $ 0.88 $ 0.93 $ 0.56 $ 1.01 Class B $ 0.79 $ 0.84 $ 0.50 $ 0.90 Loss from discontinued operations per common share - Basic: Class A $ (0.01) $ (0.00) $ (0.16) $ (0.08) Class B $ (0.01) $ (0.01) $ (0.15) $ (0.07) --------------------------------------------------------------------- Net income per common share - Basic: Class A $ 0.87 $ 0.93 $ 0.40 $ 0.93 Class B $ 0.78 $ 0.83 $ 0.35 $ 0.83 --------------------------------------------------------------------- Income from continuing operations per common Class A and B share - Dilutive $ 0.85 $ 0.90 $ 0.55 $ 0.97 Loss from discontinued operations per common Class A and B share - Dilutive $ (0.01) $ (0.01) $ (0.17) $ (0.07) --------------------------------------------------------------------- Net income per common Class A and B share - Dilutive $ 0.84 $ 0.89 $ 0.38 $ 0.90 --------------------------------------------------------------------- Weighted average common - Basic: Class A 7,876 7,836 7,862 7,811 Class B 1,217 1,218 1,217 1,218 Dilutive stock options and restricted stock 150 208 176 209 --------------------------------------------------------------------- Weighted average common - Dilutive 9,243 9,262 9,255 9,238 --------------------------------------------------------------------- (thousands, except per share amounts) --------------------------------------------------------------------- Segment Results THREE MONTHS ENDED NINE MONTHS ENDED --------------------------------------------------------------------- June 27 June 29 June 27 June 29 2008 2007 2008 2007 --------------------------------------------------------------------- Net sales: Marine electronics $ 62,379 $ 71,006 $ 157,186 $ 165,010 Outdoor equipment 17,115 17,220 38,343 46,494 Watercraft 34,649 36,444 71,833 70,489 Diving 27,246 25,461 72,268 61,910 Other/eliminations (146) (263) (607) (636) --------------------------------------------------------------------- Total $ 141,243 $ 149,868 $ 339,023 $ 343,267 --------------------------------------------------------------------- Operating profit: Marine electronics $ 7,696 $ 12,551 $ 13,442 $ 21,559 Outdoor equipment 2,412 2,806 2,784 5,681 Watercraft 3,583 (1,094) 1,240 (3,043) Diving 2,443 3,014 3,579 3,769 Other/eliminations (1,565) (2,494) (7,410) (10,807) --------------------------------------------------------------------- Total $ 14,569 $ 14,783 $ 13,635 $ 17,159 --------------------------------------------------------------------- Balance Sheet Information (End of Period) Cash and short-term investments $ 23,292 $ 35,426 Accounts receivable, net 103,780 107,248 Inventories, net 96,964 84,203 Total current assets 244,758 246,524 Total assets 368,499 356,746 Short-term debt 10,001 61,843 Total current liabilities 80,766 143,339 Long-term debt 60,003 10,006 Shareholders' equity 214,026 194,320 ---------------------------------------------------------------------
CONTACT: Johnson Outdoors Inc. David Johnson, VP & Chief Financial Officer 262-631-6600 Cynthia Georgeson, VP -- Worldwide Communication 262-631-6600