Johnson Outdoors Inc. (Nasdaq:JOUT), a leading
global outdoor recreation company, today announced double-digit
operating profit growth on higher revenue for fiscal 2012. Pre-tax
income was 62.7 percent above the prior year, however a
significantly higher effective tax rate in the current year
resulted in an unfavorable comparison to prior year adjusted net
earnings.
"Our three-year plan ending in fiscal 2012 focused on
strengthening operations and enhancing marketplace performance
against the backdrop of a gradual recovery of outdoor recreation
markets. We set the bar high and delivered, growing profits faster
than sales and exceeding a targeted 5 percent compound annual
growth rate in sales by the end of fiscal 2012. While more work
lies ahead, we have made significant progress toward our long-term
goal of sustained profitable growth and our commitment to enhanced
shareholder value," said Helen Johnson-Leipold, Chairman and Chief
Executive Officer. "Looking ahead to 2015, our plans embrace our
mission to exceed the ever-growing expectations of outdoor
enthusiasts and the channel customers that serve them with the most
innovative, most valued and most sought-after brands and equipment.
Investments will focus on sustaining leadership in fishing
electronics, maintaining positive momentum in core dive equipment
segments, regaining leadership in specialty camping and paddling
channels and maximizing opportunities to enhance the long-term
profitability profile of every business."
FISCAL
YEAR
RESULTS
Total Company net sales increased 1.2 percent to $412.3 million
in fiscal 2012, versus $407.4 million in fiscal 2011, due to record
sales in Marine Electronics which more than offset declines in
other units. On a constant currency basis, net sales were 2.5
percent above the prior year. Successful new products generated
more than 45 percent of total company sales. Key contributing
factors in the year-over-year comparison were:
- Continued growth by Minn Kota® and Humminbird® brands across
key channels, with both exceeding $100 million in sales for the
year.
- Strong performance in North America and Asia/Pacific Diving
markets was offset by unfavorable currency translation which had a
negative 4.3 percent impact on sales. On a currency neutral basis,
Diving sales were 2.6 percent above the prior year.
- Outdoor Gear revenue declined 9.1 percent due to a significant
drop in U.S. military spending and exiting of non-strategic
consumer camping accounts.
- Watercraft sales were 0.8 percent above prior year due to
higher sales of low-margin products and the sale of inventory to a
distributor related to closure of the unit's UK sales office.
Total Company operating profit rose 21.2 percent to $21.4
million for fiscal 2012 compared to operating profit of $17.7
million in fiscal 2011. Operating profit benefitted from the
favorable $3.5 million settlement of a long-standing dispute with
insurers announced during the second quarter which was partially
offset by restructuring costs in Watercraft of $1.5 million in the
last six-months of the year. Higher volume, lower operating expense
and continued strong performance of Minn Kota® and Humminbird®
brands, were also key factors in the favorable year-over-year
comparison.
Net income for the fiscal year was $10.1 million or $1.03 per
diluted share, versus reported net income of $32.6 million, or
$3.36 per diluted share, in the prior year. Net income in the
previous year benefited significantly from a reversal of the
Company's U.S. tax asset valuation allowance. Excluding this
non-cash item in the previous year, adjusted net income in fiscal
2011 was $10.7 million, or $1.11 on an adjusted earnings per share
basis. In the current year, valuation allowances in countries
where losses were incurred precluded the Company from realizing any
tax benefit on the loss, resulting in a significant increase in the
Company's effective tax rate.
The Company reported a 69.4 percent increase in cash net of debt
as of September 28, 2012. On November 14, 2012 Johnson
Outdoors announced the purchase of Jetboil®, Inc., the
leading brand of outdoor cooking systems, which will become
part of the Company's Outdoor Gear business unit. The $16 million
acquisition is expected to be accretive to earnings in the first
full fiscal year of ownership.
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. Higher Outdoor Gear sales during the quarter
partially offset lower volume in Marine Electronics due to
shipments to distributors shifting into the fiscal 2013 first
quarter. Total Company net sales declined 3.3 percent compared to
the prior year quarter.
Total Company operating loss was ($3.1) million for the fourth
fiscal quarter compared to an operating loss of ($4.2) million in
the prior year quarter. Lower legal costs contributed largely
to the favorable quarter-to-quarter comparison.
Net loss for the fiscal fourth quarter was ($3.2) million or
($0.32) per diluted share. The Company reported net income for
the prior year quarter of $17.3 million, or $1.77 per diluted
share, due primarily to the reversal of the Company's tax valuation
allowance. Adjusted net loss for the fiscal 2011 fourth
quarter was ($4.6) million, or ($0.48) per diluted
share. Interest expense for the quarter was 33.9 percent below
the prior year period.
OTHER
FINANCIAL
INFORMATION
The Company's debt to total capitalization stood at 5 percent at
the end of the year versus 8 percent at September 30,
2011. Cash, net of debt, was $50.0 million at year-end
versus cash, net of debt, of $29.5 million at September 30,
2011. Depreciation and amortization was $11.9 million
year-to-date compared with $10.9 million in the prior year. Capital
spending totaled $12 million in 2012 compared with last year's $9.4
million.
"The balance sheet remains very strong due to rigorous inventory
controls resulting in record low working capital levels. Cash flow
is robust and healthy, with every business contributing.
We expect Jetboil® to add more than $10 million in
sales and an additional $1.5 million to operating profit in fiscal
2013," said David W. Johnson, Vice President and Chief Financial
Officer.
WEBCAST
The Company will host a conference call and audio web cast at
11:00 a.m. Eastern Time on Friday November 30, 2012. 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.
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 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® motors; Cannon® downriggers;
Humminbird® marine electronics; LakeMaster® electronic charts;
SCUBAPRO® and SUBGEAR® dive equipment; Silva® compasses; Jetboil®
outdoor cooking systems; and Eureka!® camping and hiking
equipment.
Visit Johnson Outdoors at
http://www.johnsonoutdoors.com
Non-GAAP Financial Measures
We supplement the reporting of our financial information
determined in accordance with U.S. generally accepted accounting
principles ("GAAP") with the non-GAAP financial measures, adjusted
net income/loss and adjusted diluted earnings/loss per
share. We believe that these non-GAAP measures provide
meaningful information to assist shareholders in understanding our
financial results and that adjusted net income and adjusted diluted
earnings per share are important indicators of our operations
because they exclude items that may not be indicative of or are
unrelated to our core results, and provide a better baseline for
analyzing trends in our underlying businesses. Because
non-GAAP financial measures are not standardized, it may not be
possible to compare these financial measures with other companies'
non-GAAP financial measures having the same or similar
names. These adjusted financial measures should not be
considered in isolation or as a substitute for reported net income
and diluted earnings per share, the most directly comparable GAAP
financial measures.
The table below reconciles the non-GAAP financial measures
adjusted net income and adjusted earnings per share with reported
net income and diluted earnings per share for the quarter and year
ended September 30, 2011.
|
|
|
|
12 Months Ended September
30, 2011 |
3 Months Ended September
30, 2011 |
|
Net Income |
Diluted Earnings Per Share |
Net Income (Loss) |
Diluted Earnings (Loss) Per
Share |
Reported GAAP measure |
$32.6M |
$3.36 |
$17.3 M |
$1.77 |
Reversal of deferred tax valuation
allowance |
$21.9M |
$2.25 |
$21.9 M |
$2.25 |
Adjusted non-GAAP measure |
$10.7 M |
$1.11 |
($4.6 M) |
($0.48) |
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 economic conditions,
consumer confidence levels and discretionary spending patterns in
key markets; the Company's continued success in implementing its
strategic plan, including its targeted sales growth platforms and
focus on innovation; 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 lenders; 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, interest rates and commodity costs; 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
JOHNSON OUTDOORS
INC. |
|
|
|
|
|
(thousands, except per share amounts) |
|
|
|
|
|
THREE MONTHS
ENDED |
TWELVE MONTHS
ENDED |
Operating Results |
September 28 2012 |
September 30 2011 |
September 28 2012 |
September 30 2011 |
Net sales |
$ 74,795 |
$ 77,377 |
$ 412,292 |
$ 407,422 |
Cost of sales |
46,348 |
48,383 |
247,970 |
244,287 |
Gross profit |
28,447 |
28,994 |
164,322 |
163,135 |
Operating expenses |
31,518 |
33,223 |
142,909 |
145,465 |
Operating (loss) profit |
(3,071) |
(4,229) |
21,413 |
17,670 |
Interest expense, net |
155 |
351 |
2,118 |
3,130 |
Other expense (income), net |
1,068 |
211 |
(631) |
2,290 |
(Loss) income before income taxes |
(4,294) |
(4,791) |
19,926 |
12,250 |
Income tax (benefit) expense |
(1,094) |
(22,068) |
9,792 |
(20,394) |
Net (loss) income |
$ (3,200) |
$ 17,277 |
$ 10,134 |
$ 32,644 |
Diluted average common shares
outstanding |
9,393 |
9,287 |
9,379 |
9,287 |
Diluted net (loss) income per common
share |
$ (0.32) |
$ 1.77 |
$ 1.03 |
$ 3.36 |
Segment Results |
|
|
|
|
Net sales: |
|
|
|
|
Marine electronics |
$ 32,984 |
$ 36,099 |
$ 231,234 |
$ 222,115 |
Outdoor gear |
7,379 |
6,823 |
35,328 |
38,882 |
Watercraft |
11,492 |
11,627 |
58,201 |
57,732 |
Diving |
23,088 |
23,034 |
87,995 |
89,544 |
Other/eliminations |
(148) |
(205) |
(466) |
(851) |
Total |
$ 74,795 |
$ 77,378 |
$ 412,292 |
$ 407,422 |
Operating (loss) profit: |
|
|
|
|
Marine electronics |
$ (1,325) |
$ (1,119) |
$ 25,230 |
$ 21,074 |
Outdoor gear |
730 |
(754) |
2,831 |
2,996 |
Watercraft |
(1,517) |
(1,338) |
(408) |
(1,351) |
Diving |
2,170 |
287 |
6,408 |
3,610 |
Other |
(3,129) |
(1,306) |
(12,648) |
(8,659) |
Total |
$ (3,071) |
$ (4,230) |
$ 21,413 |
$ 17,670 |
Balance Sheet
Information (End of Period) |
|
|
|
|
Cash and cash equivalents |
|
|
$ 58,904 |
$ 44,514 |
Accounts receivable, net |
|
|
40,673 |
47,209 |
Inventories, net |
|
|
67,058 |
68,462 |
Total current assets |
|
|
182,952 |
176,445 |
Total assets |
|
|
263,632 |
259,356 |
Short-term debt |
|
|
526 |
3,494 |
Total current liabilities |
|
|
58,967 |
65,000 |
Long-term debt |
|
|
8,334 |
11,478 |
Shareholders' equity |
|
|
173,604 |
163,525 |
CONTACT: At Johnson Outdoors Inc.
David Johnson
VP & Chief Financial Officer
262-631-6600
Cynthia Georgeson
VP - Worldwide Communication
262-631-6600
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