Johnson Outdoors Reports Fiscal Third Quarter Results
RACINE, Wisc., Aug. 03, 2023 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoor recreation equipment and technology, today announced lower sales and increased net income for the Company’s third fiscal quarter ending June 30, 2023.
“Moderating demand from the high pandemic-fueled levels of the past few years in a competitive marketplace impacted results. However, we remain focused on sustaining innovation leadership, and recently we announced an exciting line of new products in Fishing and a new cutting-edge technology in Watercraft Recreation, underscoring the critical importance of our investment in innovation to drive long-term growth,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “The power of our innovation and the strength of our brands continue to position Johnson Outdoors for long-term marketplace success.”
THIRD QUARTER RESULTS
Total Company net sales in the third quarter declined 8 percent to
- Fishing sales increased by approximately 1 percent, driven primarily by product price increases
- Diving sales remain flat over the prior year third quarter
- Camping revenue declined 50 percent or
$11.8 million , of which$4.9 million was due to the sale of the Military and Commercial Tents product lines in the second quarter, and the remainder due to high retail inventories and a decline in consumer spending - Watercraft Recreation revenue declined 28 percent, reflecting significant reductions in the overall market
Profit before income taxes was
Interest income increased
Net income rose to
YEAR-TO-DATE RESULTS
Fiscal 2023 year-to-date net sales were
Interest income increased
Net income during the first fiscal nine months was
OTHER FINANCIAL INFORMATION
The Company reported cash and investments of
“Looking ahead, we’re focused on continuing to improve operational efficiency to strengthen margins and are working to manage inventories appropriately as we enter the off season,” said David W. Johnson, Chief Financial Officer. “Our balance sheet remains debt-free and our healthy cash position continues to provide us with the flexibility and resources necessary to invest in strategic opportunities to strengthen the business and consistently pay dividends to shareholders.”
PRODUCT NEWS
Minn Kota®, Humminbird® and Old Town® announced new products at ICAST 2023, the world’s most prestigious fishing show. Minn Kota announced the QUEST™ Series, the all-new brushless trolling motor technology. Minn Kota also launched a restage of all its bow-mount trolling motors with a brand-new look, more seamless integration with Humminbird and an updated technology suite full of angler-friendly enhancements.
Humminbird launched the One-Boat Network® App bringing together Humminbird and Minn Kota devices into one dashboard to give anglers unprecedented command of their fishing boat.
And Old Town received “Best of Boats and Watercraft” honors at ICAST for its new Sportsman BigWater ePDL+ 132, a revolutionary power-assisted pedal drive that combines pedal and battery assist to propel the fishing experience to the next level. Old Town innovation has captured five ICAST awards in the past 10 years.
WEBCAST
The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Thursday, August 3, 2023. A live listen-only web cast of the conference call may be accessed at Johnson Outdoors’ home page or here. A replay of the call will be available for 30 days on the Internet.
About Johnson Outdoors Inc.
JOHNSON OUTDOORS is a leading global innovator of outdoor recreation equipment and technologies that inspire more people to experience the awe of the great outdoors. The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft Recreation, Fishing, Diving and Camping. Johnson Outdoors' iconic brands include: Old Town® canoes and kayaks; Carlisle® paddles; Minn Kota® trolling motors, shallow water anchors and battery chargers; Cannon® downriggers; Humminbird® marine electronics and charts; SCUBAPRO® dive equipment; Jetboil® outdoor cooking systems; and, Eureka!®camping and hiking equipment.
Visit Johnson Outdoors at http://www.johnsonoutdoors.com
Safe Harbor Statement
Certain matters discussed in this press release are “forward-looking statements,” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are considered forward-looking statements. These statements may be identified by the use of forward-looking words or phrases such as "anticipate,'' "believe,'' "confident," "could,'' "expect,'' "intend,'' "may,'' "planned,'' "potential,'' "should,'' "will,'' "would'' or the negative of those terms or other words of similar meaning. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results or outcomes to differ materially from those currently anticipated. Factors that could affect actual results or outcomes include the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K filed with the Securities and Exchange Commission on December 9, 2022, and the following: changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets; uncertainties stemming from political instability (and its impact on the economies in jurisdictions where the Company has operations), uncertainties stemming from changes in U.S. trade policies, tariffs, and the reaction of other countries to such changes; the global outbreaks of disease, such as the COVID-19 pandemic, which has affected, and may continue to affect, market and economic conditions, and the timing, pricing and continued availability of raw materials and components from our supply chain, along with wide-ranging impacts on employees, customers and various aspects of our operations; the Company’s success in implementing its strategic plan, including its targeted sales growth platforms, innovation focus and its increasing digital presence; litigation costs related to actions of and disputes with third parties, including competitors; the Company’s continued success in its working capital management and cost-structure reductions; the Company’s success in integrating strategic acquisitions; the risk of future write-downs of goodwill or other long-lived assets; the ability of the Company’s customers to meet payment obligations; the impact of actions of the Company’s competitors with respect to product development or enhancement or the introduction of new products into the Company’s markets; movements in foreign currencies, interest rates or commodity costs; fluctuations in the prices of raw materials or the availability of raw materials or components used by the Company; any disruptions in the Company’s supply chain as a result of material fluctuations in the Company’s order volumes and requirements for raw materials and other components necessary to manufacture and produce the Company’s products including related to shortages in procuring necessary raw materials and components to manufacture and produce such products; the success of the Company’s suppliers and customers and the impact of any consolidation in the industries of the Company’s suppliers and customers; the ability of the Company to deploy its capital successfully; unanticipated outcomes related to outsourcing certain manufacturing processes; unanticipated outcomes related to litigation matters; and adverse weather conditions and other factors impacting climate change legislation. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this filing. The Company assumes no obligation, and disclaims any obligation, to update such forward-looking statements to reflect subsequent events or circumstances.
JOHNSON OUTDOORS INC.
(thousands, except per share amounts) | ||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||
Operating results | June 30, 2023 | July 1, 2022 | June 30, 2023 | July 1, 2022 | ||||||||
Net sales | $ | 187,047 | $ | 203,819 | $ | 567,499 | $ | 546,966 | ||||
Cost of sales | 109,460 | 130,310 | 351,798 | 344,241 | ||||||||
Gross profit | 77,587 | 73,509 | 215,701 | 202,725 | ||||||||
Operating expenses | 60,144 | 49,710 | 181,396 | 149,737 | ||||||||
Operating profit: | 17,443 | 23,799 | 34,305 | 52,988 | ||||||||
Interest income, net | (1,205 | ) | (114 | ) | (2,692 | ) | (222 | ) | ||||
Other (income) expense, net | (1,174 | ) | 4,669 | (10,939 | ) | 6,167 | ||||||
Profit before income taxes | 19,822 | 19,244 | 47,936 | 47,043 | ||||||||
Income tax expense | 5,021 | 5,162 | 12,395 | 12,205 | ||||||||
Net income | $ | 14,801 | $ | 14,082 | $ | 35,541 | $ | 34,838 | ||||
Weighted average common shares outstanding - Dilutive | 10,210 | 10,161 | 10,187 | 10,148 | ||||||||
Net income per common share - Diluted | $ | 1.44 | $ | 1.38 | $ | 3.47 | $ | 3.42 | ||||
Segment Results | ||||||||||||
Net sales: | ||||||||||||
Fishing | $ | 137,460 | $ | 136,565 | $ | 430,842 | $ | 374,244 | ||||
Camping | 11,658 | 23,479 | 36,996 | 56,780 | ||||||||
Watercraft Recreation | 15,726 | 21,872 | 38,274 | 59,481 | ||||||||
Diving | 22,227 | 22,201 | 61,594 | 56,886 | ||||||||
Other / Eliminations | (24 | ) | (298 | ) | (207 | ) | (425 | ) | ||||
Total | $ | 187,047 | $ | 203,819 | $ | 567,499 | $ | 546,966 | ||||
Operating profit (loss): | ||||||||||||
Fishing | $ | 18,665 | $ | 16,553 | $ | 51,358 | $ | 44,166 | ||||
Camping | 2,039 | 4,998 | 4,863 | 12,867 | ||||||||
Watercraft Recreation | 1,483 | 2,893 | 1,637 | 7,588 | ||||||||
Diving | 2,733 | 2,412 | 4,190 | 4,074 | ||||||||
Other / Eliminations | (7,477 | ) | (3,057 | ) | (27,743 | ) | (15,707 | ) | ||||
Total | $ | 17,443 | $ | 23,799 | $ | 34,305 | $ | 52,988 | ||||
Balance Sheet Information (End of Period) | ||||||||||||
Cash, cash equivalents, and short term investments | $ | 149,247 | $ | 117,567 | ||||||||
Accounts receivable, net | 94,644 | 103,244 | ||||||||||
Inventories, net | 235,069 | 250,956 | ||||||||||
Total current assets | 485,305 | 481,214 | ||||||||||
Total assets | 705,484 | 675,842 | ||||||||||
Total current liabilities | 106,670 | 117,028 | ||||||||||
Total liabilities | 185,040 | 191,576 | ||||||||||
Shareholders’ equity | 520,444 | 484,266 |
Johnson Outdoors Inc. David Johnson VP & Chief Financial Officer 262-631-6600 | Patricia Penman VP – Marketing Services & Global Communications 262-631-6600 |