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Johnson Outdoors Announces Full Year and Fourth Quarter Fiscal 2010 Results
"We have transformed
Total net sales grew 7 percent to
- Initial recovery of key outdoor recreational markets.
- Double-digit growth in Minn Kota® and Humminbird® brands in all channels and markets.
- Double-digit growth in Eureka!® across consumer and military segments.
- Increased revenues in Diving, which nearly offset declines in Watercraft sales.
- Successful new products in all businesses which generated more than a third of total Company revenues.
- Improved cost absorption as a result of higher sales.
Nonrecurring items, including restructuring costs of
$7.5 millionin the prior fiscal year versus $2.0 millionin the current fiscal year.
Ongoing cost savings of
$10.7 million, including more than $5.0 millionin savings related to Watercraft consolidation, which were in addition to sustained cost reductions realized in fiscal 2009.
- Discretionary bonus and retirement contributions in the current year versus no related expenses in the prior fiscal year.
Net income for the year was
FOURTH QUARTER RESULTS
Due to the seasonality of the warm-weather outdoor recreational products industry, the Company's fourth quarter results historically reflect an industry-wide slowing of sales and production. Total Company net sales continued a year-long positive upward trend to increase 15 percent compared to the prior year quarter. Key factors behind the results were:
Double-digit increases in
Marine Electronicsand Outdoor Equipment sales.
- Positive response across the specialty channel to new Watercraft products and programs.
- Unfavorable currency translation of 2.6 percent impacted Diving sales.
- Higher sales in all businesses.
- Gross margin improvement in all businesses yielding a 7.2 point gain in total Company margins.
Discretionary bonus, profit sharing and retirement contributions added
$2.4 millionin operating expense versus no related expenses in the prior year quarter.
The Company reported a 60 percent decline in its quarterly net loss of
OTHER FINANCIAL INFORMATION
The Company's debt to total capitalization stood at 16 percent at the end of the year versus 21 percent at
"The strength of our balance sheet is reflected in our having ended fiscal 2010 with debt at an all-time low and a
The Company will host a conference call and audio web cast at
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,
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. These statements may be identified by the use of forward-looking words or phrases such as "anticipate,'' "believe,'' "could,'' "expect,'' "intend,'' "may,'' "planned,'' "potential,'' "should,'' "will,'' "would'' or the negative of those terms or other words of similar meaning.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 third parties, including companies that compete with the Company; the Company's success in managing inventory and its continuing efforts to implement sustainable cost-cutting and sales growth initiatives; the risk that the Company's lenders may be unwilling to provide a waiver or amendment if the Company were to violate financial covenants and the cost to the Company of obtaining any waiver or amendment that the lenders would be willing to provide; risk of future write-downs of goodwill or other intangible assets; ability of the Company's customers to meet payment obligations; movements in foreign currencies or interest rates; the Company's success in its on-going cost-structure reduction efforts; 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
FINANCIAL TABLES FOLLOW
|JOHNSON OUTDOORS INC.|
|(thousands, except per share amounts)|
|Net sales||$ 75,121||$ 65,287||$ 382,432||$ 356,523|
|Cost of sales||44,827||43,674||228,909||223,741|
|Operating (loss) profit||(3,298)||(10,883)||14,554||272|
|Interest expense, net||1,027||2,553||4,995||9,756|
|Other expense, net||273||392||367||594|
|(Loss) income before income taxes||(4,598)||(13,828)||9,192||(10,078)|
|Income tax expense (benefit)||1,242||398||2,653||(407)|
|Net (loss) income||(5,840)||(14,226)||6,539||(9,671)|
|Less: undistributed earnings reallocated to non-vested stock||--||--||201||--|
|Diluted earnings||$ (5,840)||$ (14,226)||$ 6,338||$ (9,671)|
|Diluted average common shares outstanding||9,409||9,191||9,267||9,165|
|Net (loss) income per common share - Diluted||$ (0.62)||$ (1.55)||$ 0.68||$ (1.06)|
|Marine electronics||$ 28,337||$ 22,091||$ 185,494||$ 165,343|
|Total||$ 75,121||$ 65,287||$ 382,432||$ 356,523|
|Operating (loss) profit:|
|Marine electronics||$ (2,443)||$ (3,670)||$ 13,938||$ 9,265|
|Total||$ (3,298)||$ (10,883)||$ 14,554||$ 272|
|Balance Sheet Information (End of Period)|
|Cash and cash equivalents||$ 33,316||$ 27,895|
|Accounts receivable, net||46,928||43,459|
|Total current assets||160,128||142,355|
|Total current liabilities||67,015||60,841|
Johnson Outdoors Inc. David Johnson, VP & Chief Financial Officer Cynthia Georgeson, VP - Worldwide Communication 262-631-6600
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