Johnson Outdoors Inc. announced higher revenue, profit and earnings for fiscal 2011.
“Meaningful innovation is at the core of who we are, and this year's new products generated more than 40 percent of total company revenue,” said Helen Johnson-Leipold, chairman and CEO. “In Marine Electronics and Diving markets where the pace of recovery is strong, our brands' performance outpaced the market and the competition. Importantly, we adjusted quickly to marketplace fluctuations resulting from economic uncertainty, political upheaval and severe weather, maintained a strong balance sheet and continued to grow profits faster than sales, a key objective of our three year plan. Going forward, we will continue to invest in innovation to keep our brands strong and growing, and to maximize opportunities to enhance the long-term profitability profile of all our businesses.”
FISCAL YEAR RESULTS
Total net sales increased 7 percent to $407.4 million in fiscal 2011 versus $382.4 million in fiscal 2010, due to double-digit growth in Marine Electronics which more than offset declines in other units. Key contributing factors in the year-over-year comparison were:
- Double-digit growth in Minn Kota and Humminbird brands in all channels, with both brands exceeding $100 million in sales for the year.
- Higher revenue in Diving due to growth in North America which more than offset weak Asia/Pacific markets.
- Successful new products which generated more than 40% of total company sales.
- Favorable currency translation which added $6.4 million, or 2 percent, to total company revenue.
- Significant declines in U.S. military spending resulting in a 20 percent reduction in Outdoor Gear sales.
- Unfavorable weather conditions weakened demand in the paddling market contributing to a 10 percent decline in Watercraft revenue.
Total company operating profit rose 21 percent to $17.7 million for fiscal 2011 compared to operating profit of $14.6 million in fiscal 2010. Increased volume, improved cost absorption and higher-margin new products, such as the Minn Kota Talon, Minn Kota iPilot, and Humminbird Down Imaging and Side Imaging fishfinders, were primary drivers behind the favorable year-over-year comparison.
Net income for the fiscal year was $32.7 million or $3.37 per diluted share, versus net income of $6.5 million, or 68 cents per diluted share, in the prior year. Net income benefited significantly from a reversal of the company's deferred tax asset valuation allowance which was established in fiscal 2008, due in part to the significant loss and impact of non-cash goodwill impairment that year.
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 Marine Electronics sales during the quarter more than offset lower volume in other units. Total company net sales increased 3 percent compared to the prior year quarter. On a constant currency basis, fiscal fourth quarter sales would have been flat with the prior year quarter.
The company's debt to total capitalization stood at 8 percent at the end of the year versus 16 percent at October 1, 2010. Cash, net of debt, was $29.5 million at year-end versus cash, net of debt, of $9.5 million at October 1, 2010. Depreciation and amortization was $10.9 million year-to-date compared with $10.0 million in the prior year. Capital spending totaled $9.4 million in 2011 compared with last year's $10.0 million.
JOHNSON OUTDOORS INC.
|(thousands, except per share amounts)|
|THREE MONTHS ENDED||TWELVE MONTHS ENDED|
|Operating Results||September 30|
|Cost of sales||48,384||44,827||244,287||228,909|
|Operating (loss) profit||(4,230)||(3,298)||17,670||14,554|
|Interest expense, net||351||1,027||3,130||4,995|
|Other expense, net||212||273||2,290||367|
|(Loss) income before income taxes||(4,793)||(4,598)||12,250||9,192|
|Income tax (benefit) expense||(22,145)||1,242||(20,470)||2,653|
|Net income (loss)||$ 17,352||$ (5,840)||$ 32,720||$ 6,539|
|Diluted average common shares outstanding||9,287||9,409||9,287||9,267|
|Diluted net income (loss) per common share||$ 1.78||$ (0.62)||$ 3.37||$ 0.68|
|Marine electronics||$ 36,099||$ 28,338||$ 222,115||$ 185,495|
|Total||$ 77,378||$ 75,121||$ 407,422||$ 382,432|
|Operating (loss) profit:|
|Marine electronics||$ (1,119)||$ (2,443)||$ 21,074||$ 13,938|
|Total||$ (4,230)||$ (3,298)||$ 17,670||$ 14,554|