Johnson Outdoors Inc., which makes Old Town canoes, Minn Kota trolling motors and Eureka! tents, reported record sales and earnings in the second quarter ended April 1. Total net sales grew 14.1 percent to $128.9 million compared to net sales of $112.9 million in the prior year quarter.



“The growing trend toward an active outdoor lifestyle and improving economic conditions are boosting continued recovery for the outdoor recreational products industry. While the level and pace of recovery varies by category, overall our unparalleled portfolio of consumer-preferred brands gained share to outperform their markets and competition,” said Helen Johnson-Leipold, chairman and CEO. “Transformational efforts over the past two years have resulted in a more focused, more flexible and disciplined business model and a leaner, sustainable cost-structure enabling us to significantly enhance our profitability profile. At this time, we remain on track to deliver financial targets of five percent compound annual growth in sales, and six percent operating margin by the end of Fiscal 2012.”

Strong new product response, anticipated pent-up demand in the marine accessories marketplace and a favorable retail season outlook drove the quarterly revenue growth. Currency translation had no appreciable impact on sales during the quarter. Primary factors contributing to the quarter results were:


  • Marine Electronics revenue surged 27.1 percent ahead of last year due to exceptional new product acceptance in Minn Kota, Humminbird and Cannon brands in all markets and all channels.
  • Watercraft sales climbed 11.8 percent as a result of growth in national and regional sporting goods channels. Watercraft brands include Old Town, Ocean Kayak, Necky Kayaks and Extrasport PFDs.
  • Diving revenue grew 2.7 percent as solid growth in the U.S. was offset in part by sluggish markets in Japan, Australia and the Middle East. Currency translation had a positive impact on Diving revenues of 1.7 percent. JOUT makes the SCUBAPRO and Subgear brands.
  • Outdoor Equipment sales declined 25.2 percent due to delays in Military orders resulting from continued budget gridlock in Washington. This included sales of Silva compasses, Tech40 digital instruments and Eureka! tents.

Total company operating profit increased 41.8 percent to $11.4 million compared to operating profit of $8.1 million in the prior year quarter. Primary factors behind the favorable comparison were:



  • Higher revenues due to strong new product response and continued recovery of the outdoor recreational markets.
  • An increase in gross profit margin to 41.1 percent from 40.2 percent in the prior year due to favorable product mix in Marine Electronics and improved operating efficiency year-over-year.
  • Lower operating expense as a percentage of sales as sales growth more than offset increased R&D costs and discretionary compensation accruals.


The company reported a 37.2 percent increase in net earnings to $8.5 million, or 87 cents per diluted share, during the second fiscal quarter, compared to net earnings of $6.2 million, or 64 cents per diluted share, in the same quarter last year. Interest expense declined 30.1 percent year-over-year.



































































































































































































JOHNSON OUTDOORS INC.








(thousands, except per share amounts)




THREE MONTHS
ENDED		 SIX MONTHS
ENDED
Operating Results April 1
2011		 April 2
2010		 April 1
2011		 April 2
2010
Net sales $ 128,864 $ 112,897 $ 207,564 $ 183,357
Cost of sales 75,931 67,511 123,951 111,615
Gross profit 52,933 45,386 83,613 71,742
Operating expenses 41,509 37,332 73,524 67,243
Operating profit 11,424 8,054 10,089 4,499
Interest expense, net 993 1,444 1,817 2,601
Other expense (income), net 343 209 337 (471)
Income before income taxes 10,088 6,401 7,935 2,369
Income tax expense 1,602 218 686 422
Net income $ 8,486 $ 6,183 $ 7,249 $ 1,947
Diluted average common shares outstanding 9,289 9,262 9,293 9,244
Net income per common share – Basic and Diluted $ 0.87 $ 0.64 $ 0.75 $ 0.20
Segment Results



Net sales:



Marine electronics $ 78,899 $ 62,096 $ 121,844 $ 95,191
Outdoor equipment 10,281 13,738 20,737 22,500
Watercraft 18,115 16,200 24,250 26,469
Diving 21,759 21,194 41,111 39,689
Other/eliminations (190) (331) (378) (492)
Total $ 128,864 $ 112,897 $ 207,564 $ 183,357
Operating profit (loss):



Marine electronics $ 12,822 $ 8,084 $ 13,200 $ 7,591
Outdoor equipment 652 1,935 2,153 2,665
Watercraft 669 134 (1,074) (1,011)
Diving (6) 300 1,145 216
Other/eliminations (2,713) (2,399) (5,335) (4,962)
Total $ 11,424 $ 8,054 $ 10,089 $ 4,499