Johnson Outdoors Inc. announced revenue grew 2 percent to more than $80 million during the first fiscal period ended Dec. 30, 2011, despite a 66 percent drop in year-over-year military sales.

 

The maker of Eureka tents, Necky kayaks, Minn Kota trolling motors and Humminbird fishfinders said charges and expenses related to long-term infrastructure and fixed asset reductions contributed to higher losses than usual in the quarter, which normally reflect a loss due to the seasonality of its products.

“Steady recovery of outdoor recreational markets remains central to continued progress against our strategic plan to ensure sustained profitability,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “Current economic conditions in key regions present a mixed picture of expectations for outdoor markets the remainder of the year.

 

In North America and Asia, initial indicators are favorable for ongoing recovery, while uncertainty continues throughout Europe, particularly in southern European markets,” she said. “While it is too early to predict how the year will go, our focus remains on sustaining marketplace momentum, gaining additional share and strengthening operations.”

First fiscal quarter sales are typically at their lowest of the year as the company ramps up for the primary selling period of its outdoor recreation products during the second and third fiscal quarters.

 
Net sales were $80.2 million in the first fiscal quarter compared with net sales of $78.7 million in the prior year quarter. Double-digit sales growth in Marine Electronics and Watercraft more than offset significant reductions in military tent sales during the quarter. Key drivers behind the favorable comparison were:


  • Marine Electronics revenue increased 11 percent above last year driven in large part by a 25 percent plus increase in sales of Humminbird patented side-imaging , as well as down imaging, sonar technology products.
  • Watercraft sales grew 22 percent primarily due to low-margin year-end close-outs in the sporting goods channel as core specialty channel revenue held steady.
  • Diving sales dipped 3 percent as strength in U.S. and key dive markets across Asia could not overcome weakness across the southern European region.
  • Outdoor Gear revenue fell 40 percent driven by a 66 percent decline in military tent sales year-over-year.

Total company operating loss during the seasonally slow first fiscal quarter was $3.7 million compared to an operating loss of $1.3 million in the prior year period. Primary drivers behind the quarter-to-quarter comparison were:


 


  • Non-recurring costs and charges totaling $1.1 million related to restructuring of European operations and an asset write-off associated with transfer of the company's historic Old Town Canoe facility to the city of Old Town, Maine.
  • Higher legal, bad debt and sales related expenses in the current period.

The company reported a net loss of ($2.9 million,) or 30 cents per diluted share, during the first fiscal quarter, compared to a net loss of ($1.2 million,) or 13 cents per diluted share, in the same quarter last year.



Other financial information
At Dec. 30, 2011, debt, net of cash, was $4.9 million compared to $14.1 million at the end of the prior year quarter. Depreciation and amortization was $2.7 million year-to-date, compared to $2.4 million during the prior year-to-date period. Capital spending totaled $2.0 million during the first fiscal quarter compared with $1.6 million in the 2011 first fiscal quarter.


“Inventory levels are on track with projections and we feel confident in our ability to meet our Fiscal 2012 target of maintaining days of working capital at Fiscal 2011 levels. We continue to pay down debt and benefit from lower borrowing costs. In Fiscal 2012, we are focused on generating strong profitability and cash flow, reflecting our on-going commitment to enhanced shareholder value,” said David W. Johnson, VP and CFO.


Johnson Outdoors has three major business segments: Watercraft, Marine Electronics, Diving and Outdoor Gear. It’s brands include: Old Town  canoes and kayaks; Ocean Kayak and Necky  kayaks; Carlisle  paddles; Extrasport  personal flotation devices; Minn Kota  motors; Cannon  downriggers; Humminbird  fishfinders; LakeMaster  electronic charts; Geonav  marine electronics; SCUBAPRO  and SUBGEAR  dive equipment; Silva  compasses; Tech4O  digital instruments; and Eureka!  tents.

 





































































































































JOHNSON OUTDOORS INC.

(thousands, except per share amounts)


THREE MONTHS
ENDED
Operating Results December 30
2011		 December 31
2010
Net sales $ 80,176 $ 78,700
Cost of sales 49,075 48,020
Gross profit 31,101 30,680
Operating expenses 34,820 32,015
Operating loss (3,719) (1,335)
Interest expense, net 575 824
Other income, net (1,192) (6)
Loss before income taxes (3,102) (2,153)
Income tax benefit (158) (916)
Net loss $ (2,944) $ (1,237)
Diluted average common shares outstanding 9,807 9,611
Net loss per common share – Basic and Diluted $ (0.30) $ (0.13)

Segment Results

Net sales:

Marine electronics $ 47,771 $ 42,945
Outdoor equipment 6,290 10,456
Watercraft 7,485 6,136
Diving 18,758 19,352
Other/eliminations (128) (189)
Total $ 80,176 $ 78,700
Operating profit (loss):

Marine electronics $ 2,073 $ 378
Outdoor equipment (252) 1,501
Watercraft (2,458) (1,743)
Diving (98) 1,151
Other/eliminations (2,984) (2,622)
Total $(3,719) $(1,335)