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Johnson Outdoors Reports Higher Sales and Earnings for Fiscal 2016

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Dec 12, 2016

Johnson Outdoors Reports Higher Sales and Earnings for Fiscal 2016

RACINE, Wis., Dec. 12, 2016 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a global leader in outdoor recreation equipment, today announced double-digit growth in net income on slightly higher sales for fiscal 2016.  Award-winning innovation spurred momentum of new products in the Company's core fishing, camp cooking and watercraft recreation brands.  Strong performance through the first nine months more than offset lower fourth quarter results.


  • Record sales for Minn Kota® and Jetboil®
  • 2017 new products command top industry awards
  • Watercraft sustains profitable growth trajectory 
  • Net cash at all-time high, debt at record low
  • Maintained strong balance sheet and quarterly dividend

"Performance this year reflects how important innovation is in our ability and capacity to deliver sustained long-term profitable growth.  New products like the Minn Kota® Riptide Ulterra, Humminbird® Helix series of fishfinders, Old Town® Predator fishing kayaks and Jetboil® Genesis cooking system drove strong consumer demand during the year.  Anticipation is high and positive momentum growing for our equally exciting and award-winning 2017 new product line-up unveiled during the third quarter, which includes the revolutionary Minn Kota® Ultrex trolling motor and Old Town® Predator PDL pedal-drive boat. Continued strong performance of our fishing and watercraft recreation businesses is key as we work aggressively to reposition our Eureka!® brand for success with new camp consumer targets and advance innovation in diving for SCUBAPRO®," said Helen Johnson-Leipold, Chairman and Chief Executive Officer.  

"Looking forward, our long-term plan focuses on elevating our businesses to the next level of success through enhanced consumer intimacy, transformative digital sophistication and world-class innovation processes. Targeted, strategic investments against these priorities will continue over the next two years, with the goal of delivering accelerated profitable growth in the future," concluded Ms. Johnson-Leipold.   


Total Company net sales increased 1 percent to $433.7 million versus $430.5 million in the previous fiscal year. New products across the Company's Minn Kota®, Humminbird ®, Jetboil® and Old Town® brands more than offset lower sales in dive equipment and military tents.  Key contributing factors in the year-over-year comparison were:

  • Outstanding new product performance across key channels by Minn Kota® and Humminbird® powered 5 percent growth in Marine Electronics.   
  • Strong marketplace momentum behind Old Town® and Ocean Kayak® propelled a 3 percent increase in Watercraft sales. 
  • Growth in Jetboil® did not offset sagging sales in non-core military tents resulting in an unfavorable year-over-year comparison in Outdoor Gear.
  • Diving revenue declined 4 percent, or $3.0 million, largely due to continued weakness in Middle East markets and currency translation.

Operating profit grew 28 percent to $22.9 million versus $17.9 million in the prior fiscal year due primarily to higher volume and improved gross margins. Non-cash goodwill impairment charges of $6.2 million in the current year were more than offset by a $9.9 million improvement in legal expense year over year.

Net income for the fiscal year rose 27 percent to $13.5 million, or $1.34 per diluted share, versus $10.6 million, or $1.06 per diluted share in fiscal 2015.  The Company's effective tax rate was 43 percent versus 33 percent in the prior year.  The unfavorable variance in tax rate is primarily due to no tax benefit on non-cash goodwill impairment charges in the current year. 


Due to the seasonality of the warm-weather outdoor recreational equipment industry, the Company's fourth quarter results historically reflect an industry-wide slowing of sales and production.  Total Company sales in the quarter were $74.9 million versus $85.7 million in the prior year fourth quarter. A shift in orders due to a planned product-line technology restage in Marine Electronics, and a $4 million plus decline in non-core military tent sales in Outdoor Gear led to the unfavorable quarter-over-quarter comparison.  Operating loss was ($4.9) million this quarter versus operating profit of $1.1 million in the prior year fourth quarter due primarily to the lower sales volume.  Net loss in the fourth quarter was ($2.1) million, or ($0.21) per diluted share versus net income of $1.2 million, or $0.12 per diluted share in the prior year fourth quarter.


The Company's debt to total capitalization stood at 3 percent at the end of the current year, a 25 percent improvement compared with debt to total capitalization of 4 percent at the end of 2015. Cash, net of debt, reached an all-time high of $79.9 million at year-end versus cash, net of debt, of $61.7 million at the prior year-end.

Depreciation and amortization was $12.0 million year-to-date compared with $11.8 million in the prior year.  Capital spending totaled $11.7 million in fiscal 2016 compared with last year's $10.4 million.

"New product innovation drove higher volume and improved margins through the first nine months of the year, more than offsetting the anticipated slow-down of sales during the fourth quarter. We ended the year with the balance sheet in great shape, maintaining the strong cash position needed to provide us the flexibility and resources necessary to invest strategically in growing our businesses, " said Dave Johnson, Vice President and Chief Financial Officer. "Heading into fiscal 2017, positive momentum for new products is building and order positions are steadily growing."  


The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Monday, December 12, 2016.  A live listen-only web cast of the conference call may be accessed at Johnson Outdoors' home page. A replay of the call will be available for 30 days on the Internet.


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 Gear.  Johnson Outdoors' familiar brands include, among others: Old Town® canoes and kayaks; Ocean Kayak and Necky® kayaks; Carlisle® paddles; Extrasport® personal flotation devices; Minn Kota® fishing motors, batteries and anchors; Cannon® downriggers; Humminbird® marine electronics and digital charts; SCUBAPRO® dive equipment; Silva® compasses; Jetboil® outdoor cooking systems; and Eureka!®camping and hiking equipment. 

Visit Johnson Outdoors at


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,'' "confident," "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 economic conditions, consumer confidence levels and discretionary spending patterns in key markets; the Company's success in implementing its strategic plan, including its targeted sales growth platforms, innovation focus, its digital presence; litigation costs related to actions of and disputes with third parties, including competitors; the Company's continued success in working capital management and cost-structure reductions; the Company's ongoing success in meeting financial covenants in its credit agreements with its lenders; the Company's success in integrating strategic acquisitions; the risk of future write downs of goodwill or other long-lived assets; the ability of the Company's customers to meet payment obligations; movements in foreign currencies, interest rates or commodity costs; fluctuations in the prices of raw materials or the availability of raw materials used by the Company; the success of the Company's suppliers and customers; the ability of the Company to deploy its capital successfully; unanticipated outcomes related to outsourcing certain manufacturing processes; unanticipated outcomes related to litigation matters; 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.


(thousands, except per share amounts)     
Operating ResultsSeptember 30
October 2
 September 30
October 2
Net sales$  74,937 $  85,673  $  433,727 $   430,489 
Cost of sales   46,052    51,962     257,265    258,756 
Gross profit   28,885    33,711     176,462    171,733 
Goodwill and other intangible assets impairment   -     -     6,197    - 
Operating expenses   33,812    32,571     147,371    153,880 
Operating (loss) profit   (4,927)   1,140     22,894    17,853 
Interest expense, net   88    123     646    801 
Other (income) expense, net   (655)   1,261     (1,407)   1,299 
(Loss) income before income taxes   (4,360)   (244)    23,655    15,753 
Income tax (benefit) expense   (2,233)   (1,411)    10,154    5,137 
Net (loss) income$  (2,127)$  1,167  $  13,501 $  10,616 
Diluted average common shares outstanding   9,876    9,767     9,855    9,727 
Diluted net (loss) income per common share$  (0.21)$  0.12  $  1.34 $  1.06 
Segment Results     
Net sales:     
Marine electronics $  37,216 $  43,439  $  274,872 $  262,518 
Outdoor gear   8,871    13,422     40,018    47,573 
Watercraft    9,995    10,070     50,388    48,961 
Diving   18,940    18,906     69,137    72,125 
Other/eliminations   (85)   (164)    (688)   (688)
Total$  74,937 $  85,673   $  433,727 $  430,489 
Operating profit (loss):     
Marine electronics$  144  $  1,909  $  43,092 $  26,055 
Outdoor gear   112    1,311     2,077    3,847 
Watercraft    159    312     3,349    1,620 
Diving   (602)   692     (9,384)   934 
Other   (4,740)   (3,084)    (16,240)   (14,603)
Total$  (4,927)$  1,140  $  22,894 $  17,853 
Balance Sheet Information (End of Period)     
Cash and cash equivalents   $  87,294 $  69,159 
Accounts receivable, net      41,522    44,798 
Inventories, net      68,397    79,919 
Total current assets      201,968    198,721 
Total assets      310,279    299,204 
Short-term debt      381    368 
Total current liabilities      67,654    69,554 
Long-term debt      7,008    7,062 
Shareholders' equity      207,496    197,968 

At Johnson Outdoors Inc.David Johnson

VP & Chief Financial Officer


Patricia Penman

VP - Global Marketing Services & Communication


Source: Johnson Outdoors Inc.

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