Johnson Outdoors Inc. said that increased net sales and improved operating profits were driven by the continued strength of its Motors business and military tent sales. The Company announced earnings per diluted share of $0.02 for the first fiscal quarter ended January 2, 2004, compared with a net loss per diluted share of $0.03 in the prior year.
Favorable adjustments in accrual and reserve balances added $0.07 per diluted share in the current year.
Similar favorable adjustments in the year-ago quarter added $0.03 per diluted share. Due to the seasonality of Johnson Outdoors' market segments, first quarter results may not be indicative of the Company's primary selling period, which takes place in its second and third fiscal quarters.
Total net sales grew 15% to $62.9 million versus $54.9 million, with all
four Johnson Outdoors business units — Motors, Outdoor Equipment, Watercraft
and Global Diving — posting higher sales over the first quarter of last year.
Favorable currency translations totaling $2.0 million are reflected in net
sales of the Company's Global Diving unit, in a market sector that continues
to face challenges related to the decline in travel to major dive
destinations. Operating profit increased to $1.3 million compared with
$0.2 million in the quarter year-ago. Improvements in other businesses helped
offset the operating loss in Watercraft resulting from continued operating
inefficiencies, a delay in transitioning to production of new kayak designs
and revised pacing of shipments to a major pedal boat customer.
Helen Johnson-Leipold, Chairman and Chief Executive Officer, provided
perspective on the Company's first fiscal quarter results: “We continue to
benefit from the diversity of our portfolio, as two of our businesses had a
good start and two still face challenges. It is too soon to tell whether
growing retailer and consumer confidence in the economy will have a positive
impact across our market segments this year. Our priorities continue to be:
improving operational efficiency in Watercraft; maintaining tight fiscal
controls in Diving; and, advancing new product development efforts across our
Balance sheet variances from the year ago quarter reflect the increase in
sales from the prior year's first quarter, and include $3.3 and $3.0 million
from the impact of currency changes on inventory and accounts receivable,
respectively. Paul Lehmann, Chief Financial Officer, commented, “With the
most recent scheduled debt reduction payments during the first quarter, the
company's debt to equity ratio has declined to 31%, its lowest point in
10 years, further strengthening the company's liquidity and strategic
JOHNSON OUTDOORS INC. AND SUBSIDIARIES (thousands, except per share amounts) Operating Results THREE MONTHS ENDED Jan 2 Dec 27 2004 2002 Net sales $62,941 $54,895 Cost of sales 35,971 31,212 Gross profit 26,970 23,683 Operating expenses 25,624 23,517 Operating profit 1,346 166 Interest expense, net 1,204 1,018 Other expenses (income), net (120) (356) Income (loss) before income taxes 262 (496) Income tax expense (benefit) 102 (216) Net income (loss) $160 $(280) Net income (loss) basic and diluted per common share $0.02 $(0.03) Diluted average common shares outstanding 8,710 8,349 Segment Results Net sales: Outdoor equipment $15,803 $11,897 Watercraft 12,440 11,909 Motors 18,008 15,006 Diving 16,942 16,474 Other/eliminations (252) (391) Total $62,941 $54,895 Operating profit: Outdoor equipment $2,481 $1,409 Watercraft (3,511) (1,929) Motors 3,038 1,577 Diving 1,685 2,025 Other/eliminations (2,347) (2,916) Total $1,346 $166