Johnson Outdoors Inc. reported double-digit growth in operating profit and earnings its fiscal third quarter. Net sales increased slightly in the quarter ended June 28, 2013 to $129.8 million, with net income of $13.7 million, or $1.37 per diluted share, which marked a 52 percent increase over the same quarter last year. Record third quarter revenue in Marine Electronics and increased sales in consumer camping offset declines in big tent segments in Outdoor Gear.
“We are reaping the benefits of efforts over the past three years to build a strong foundation for sustained profitable growth in each of our businesses. Clear strategic focus and disciplined execution are key factors in the progress achieved. Investment in innovative products and technologies will be a core driver to continued success,” said Helen Johnson-Leipold, chairman and CEO of Johnson Outdoors.
Third fiscal quarter results reflect in-season replenishment orders for the company's warm-weather outdoor recreation products. Total company net sales of $129.8 million during the third fiscal quarter compared favorably to net sales of $128.6 million in the previous year quarter, with new products generating more than 40 percent of total company net sales.
Key factors behind the year-over-year comparison in each business unit were:
- Record third quarter revenue in Marine Electronics driven by exceptional new product performance and growth in all brands.
- Increased sales in consumer camping more than offset declines in big tent segments in Outdoor Gear, with the Jetboil(R) brand acquired in November 2012 adding $3.5 million in sales during the quarter.
- Despite revenue gains in the Asia region, Diving sales declined 6 percent versus the prior year quarter primarily as a result of challenging economic conditions in Southern Europe.
- Watercraft sales compared unfavorably to the same period last year due to continued de-emphasis on low-margin product lines and lower sales in Europe, where the Company is closing its Watercraft operation at the end of the current fiscal year.
Total company operating profit during the quarter was $16.1 million, a 13 percent increase over the prior fiscal year quarter. Operating expenses declined $1.8 million quarter-over-quarter due largely to lower restructuring charges and the benefit of a $0.5 million insurance settlement related to a flood in the company's Binghamton, NY operation in late fiscal 2011. Third quarter net income of $13.7 million, or $1.37 per diluted share, marked a 52 percent increase over net income of $9.0 million, or 91 cents per diluted share, in the same quarter last year. Net income in the current-year third quarter reflected changes in foreign tax valuation allowances which significantly reduced the company's effective tax rate year-over-year.
| THREE MONTHS ENDED |
NINE MONTHS ENDED |
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| Operating Results | June 28 2013 |
June 29 2012 |
June 28 2013 |
June 29 2012 |
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| Net sales | $ 129,772 | $ 128,595 | $ 349,146 | $ 337,497 | ||||
| Cost of sales | 75,435 | 74,348 | 206,911 | 201,622 | ||||
| Gross profit | 54,337 | 54,247 | 142,235 | 135,875 | ||||
| Operating expenses | 38,204 | 40,025 | 111,938 | 111,391 | ||||
| Operating profit | 16,133 | 14,222 | 30,297 | 24,484 | ||||
| Interest expense, net | 172 | 581 | 1,043 | 1,963 | ||||
| Other expense (income), net | 451 | (403) | 71 | (1,699) | ||||
| Income before income taxes | 15,510 | 14,044 | ||||||
