Johnson Outdoors Announces Production Resumes in Binghamton, New York Plant; Company Receives Military Tent Order
August 25 2006 - 6:25PM
Business Wire
Johnson Outdoors Inc. (NASDAQ:JOUT), a leading global outdoor
recreation company, today announced production has resumed at the
Company's Binghamton, New York plant. Heavy rains caused massive
flooding in parts of the Northeastern United States in late June,
forcing the temporary closure of the plant. Johnson Outdoors'
Outdoor Equipment Group, located in Binghamton, New York, employs
200 people and designs, manufactures and markets tents for
consumer, commercial and military use under the Eureka!(R) brand
name, and outdoor compasses and digital instruments under the
Silva(R) brand. FACILITY UPDATE The manufacturing facility and
offices have been fully cleaned. No exterior structural damage has
been found, and interior renovation plans are underway. OPERATIONS
UPDATE All production employees have been called back to work, and
military and commercial tent production has resumed. Shipments from
the Company's finished goods warehouse to consumer and commercial
customer accounts were not affected by the temporary plant closure.
Administrative offices will continue to operate from a temporary
location until interior renovations are completed. The Company took
a charge of $1.2 million in the 2006 third fiscal quarter; however,
the full financial impact of the business interruption is not yet
known. The Company will be able to make a determination near the
end of the 2006 fiscal fourth quarter on the total amount of
recoverable losses, and expects its insurance coverage will
indemnify the balance of those losses. MILITARY UPDATE On August
21, 2006 the Company was awarded a $2.9 million order for the
one-person combat tent with anticipated delivery from November 2006
through July 2007. This order was not issued under the
multi-vendor, multi-product contract announced on September 7,
2005. The Company continues to expect fiscal 2006 military sales
will be in the $30-$35 million range. 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;
Escape(R) electric boats; Minn Kota(R) motors; Cannon(R)
downriggers; Humminbird(R), Bottomline(R) and Fishin' Buddy(R)
fishfinders; Scubapro(R) and UWATEC(R) dive equipment; Silva(R)
compasses and digital instruments; and Eureka!(R) tents. Visit us
on line 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
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; events related to the terminated Buy-Out transaction;
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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