Johnson Outdoors, Inc. Reports Fiscal 2001 Second Quarter Results

Apr 25, 2001, 01:00 ET from Johnson Outdoors, Inc.

    RACINE, Wis., April 25 /PRNewswire/ -- Johnson Outdoors Inc.
 (Nasdaq:   JOUT) today reported lower results for its fiscal 2001 second quarter
 ended March 30, 2001, as soft economic conditions and unseasonably cool spring
 weather affected customer demand and masked the company's overall progress in
 market share and operating efficiency.
     Second quarter net sales were $96.8 million compared with $96.7 million in
 the year-ago period (2% growth excluding currency fluctuations).  Second
 quarter operating profit was $6.6 million compared with $9.6 million in the
 prior year's second quarter.  Net income from continuing operations was
 $2.2 million or $0.27 per diluted share, compared with $3.9 million or
 $0.48 per diluted share in last year's second quarter.  Including a loss on
 disposal of discontinued operations of $1.3 million or $0.16 per diluted
 share, last year's second quarter net income was $2.6 million or $0.32 per
 diluted share.
     "We made significant progress on a number of fronts at Johnson in the
 second quarter, but it was not enough to offset the slow demand industry-wide
 resulting from soft economic conditions and unseasonably cool weather in many
 of our key markets," commented Helen Johnson-Leipold, Chairman and Chief
 Executive Officer of Johnson Outdoors Inc. "With lower demand industry-wide,
 our production throughput decreased, reducing our manufacturing efficiency and
 masking the progress we've made in productivity and market share."
     Johnson-Leipold emphasized, "Specifically, we've gained market share in
 both Diving and Motors, increased productivity in Watercraft's largest unit,
 and Outdoor Equipment turned in another strong performance.  Moreover, we have
 strengthened our management team with several new leaders, including a new CFO
 with strong public company operating experience who will come on board May 7.
 Once business conditions pick up and weather normalizes, we should begin to
 see the positive impact of our operational improvements, product innovation
 and gains in market share."
 
     Outdoor Equipment
     Outdoor Equipment sales increased 10% to $32.4 million and operating
 profit rose 25% to $3.7 million compared with last year's second quarter,
 driven by strong military sales of camping equipment and solid progress by
 Jack Wolfskin in both Germany and other European markets. Higher sales drove a
 significant improvement in profitability, as operating margin rose to 11.4%
 from 10.1% in the prior year's second quarter.
 
     Watercraft
     Sales at Watercraft decreased less than 1% to $21.7 million from the
 year-ago quarter, as poor weather conditions reduced demand industry-wide,
 especially in Johnson's key Northeastern U.S. markets.  Lower than expected
 sales reduced manufacturing efficiency, leading to a 60% decrease in operating
 profit to $1.5 million compared with last year.  Johnson-Leipold noted that
 several Watercraft units are showing early indications of improved
 productivity, including Old Town, the division's largest unit, which had
 substantially higher gross profit in March compared with a year ago.
     Motors
     Independent industry data showed that the Motors segment gained market
 share in the second quarter. However, with weak industry conditions, second
 quarter sales decreased 10% to $22.8 million and operating profit fell 24% to
 $2.3 million from last year's second quarter.
 
     Diving
     The Diving segment also showed strong gains in market share. In the face
 of poor industry conditions, Diving produced sales of $20.3 million, down 2%
 from the year-ago quarter, with a 13% decrease in operating profit to $1.7
 million.
 
     Six-Month Results
     Six-month net sales were $154.4 million compared with $152.9 million in
 the year-ago period (4% growth excluding currency fluctuations). Operating
 profit was $3.0 million compared with $9.7 million for the previous six-month
 period.  Net loss from continuing operations was $1.0 million or
 $0.13 per share, compared with net income from continuing operations of
 $2.9 million or $0.35 per diluted share in last year's six-month period.  Net
 income was $0.7 million or $0.09 per diluted share for the first six months of
 fiscal 2001, which included a $1.8 million or $0.22 per diluted share gain due
 to the required adoption of FASB 133. For the first six months of fiscal 2000,
 Johnson had a net loss of $22.5 million or $2.77 per share, which included a
 $25.4 million or $3.12 per share loss from discontinued operations.
 
     Outlook
     Johnson-Leipold said, "With such weak market conditions and unusual
 weather, particularly in our key Northeast markets, many of which were under
 snow just a few weeks ago, it's difficult to gauge our current progress in
 productivity.  Even if demand picks up in the months ahead, we won't be able
 to make up the sales and earnings potential lost during the early spring.
 Nonetheless, over the long term, we believe our gains in productivity will
 have a meaningful impact on future profitability, and we are optimistic about
 our new product pipeline.  While current external conditions continue to be
 very challenging, we are encouraged by the improvement in Johnson's
 fundamentals and their potential long-term impact."
 
     Webcast
     Johnson Outdoors will hold a conference call on April 25, 2001 at
 4:00 p.m. Eastern Standard Time.  The call will be webcast at
 www.johnsonoutdoors.com and www.ccbn.com .  A replay will be available on both
 websites for 30 days.
     Johnson Outdoors Inc. is a global company engaged in the design,
 manufacture and marketing of branded outdoor recreation products, including:
     Watercraft: Old Town(R) canoes and kayaks, Ocean Kayak(TM), Necky and
         Dimension(R) kayaks, Leisure Life watercraft, Escape(R) sailboats,
         Carlisle(TM) paddles and oars, Extrasport(R) and Swiftwater(R)
         personal flotation devices
     Diving: Scubapro(R) diving equipment, Aladin(R) and Uwatec(R) instruments
     Motors: Minn Kota(R) electric motors, Airguide(R) instruments
     Outdoor Equipment: Jack Wolfskin(R) outdoor clothing, footwear and
         equipment, Eureka!(R) tents and Camp Trails(R) back packs, Eureka!(R)
         and Losberger commercial tents, Silva(R) compasses
 
     Visit Johnson Outdoors online at www.JohnsonOutdoors.com .
 
     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.  These
 forward-looking statements can generally be identified as such because the
 context of the statement includes phrases such as the Company "expects,"
 "believes" or other words of similar meaning.  Similarly, statements that
 describe the Company's future outlook plans, objectives or goals are also
 forward-looking statements.  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 changes in consumer spending
 patterns, actions of companies that compete with Johnson Outdoors, the
 Company's success in managing inventory, movements in foreign currencies or
 interest rates, the success of suppliers and customers as well as adverse
 weather conditions.  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 press release and the Company undertakes no obligations to
 publicly update such forward-looking statements to reflect subsequent events
 or circumstances.
 
 
                     JOHNSON OUTDOORS INC. AND SUBSIDIARIES
                     (thousands, except per share amounts)
 
     Operating Results       THREE MONTHS ENDED         SIX MONTHS ENDED
                            March 30      March 31    March 30      March 31
                              2001          2000        2001          2000
 
     Net sales              $96,765       $96,703     $154,384      $152,903
     Cost of sales           59,361        57,633       94,787        91,921
     Gross profit            37,404        39,070       59,597        60,982
     Operating expenses      30,809        28,818       56,571        50,539
     Strategic charges            -           668            -           720
     Operating profit         6,595         9,584        3,026         9,723
     Interest expense         2,867         2,912        4,949         5,185
     Other expenses
      (income), net              12           (58)        (233)         (375)
     Income (loss) from
      continuing operations
      before income taxes     3,716         6,730       (1,690)        4,913
     Income tax expense
      (benefit)               1,513         2,834         (664)        2,052
     Income (loss) from
      continuing operations
      before cumulative
      effect of change in
      accounting principle    2,203         3,896       (1,026)        2,861
     Loss from discontinued
      operations, net of
      tax                         -             -            -          (940)
     Loss on disposal of
      discontinued
      operations, net of
      tax                         -        (1,309)           -       (24,418)
     Cumulative effect of
      change in accounting
      principle, net of tax       -             -        1,755             -
     Net income (loss)       $2,203        $2,587         $729      $(22,497)
     Basic and diluted
      earnings (loss) per
      common share:
       Continuing
        operations            $0.27         $0.48       $(0.13)        $0.35
       Discontinued
        operations                -         (0.16)           -         (3.12)
       Cumulative effect
        of change in
        accounting
        principle, net of
        tax                       -             -         0.22             -
     Net income (loss)        $0.27         $0.32        $0.09        $(2.77)
     Diluted average
      common shares
      outstanding             8,167         8,122        8,138         8,122
     Segment Results
     Net sales:
       Outdoor equipment    $32,395       $29,414      $53,466       $47,423
       Motors                22,762        25,382       32,901        37,113
       Diving                20,317        20,719       36,330        36,753
       Watercraft            21,728        21,869       32,313        31,961
       Other/eliminations      (437)         (681)        (626)         (347)
     Total                  $96,765       $96,703     $154,384      $152,903
     Operating profit:
       Outdoor equipment     $3,683        $2,957       $4,981        $3,617
       Motors                 2,300         3,036      (1,001)         2,235
       Diving                 1,669         1,924        3,485         3,403
       Watercraft             1,514         3,748          400         4,022
       Other/eliminations    (2,571)       (2,081)      (4,839)       (3,554)
     Total                   $6,595        $9,584       $3,026        $9,723
     Balance Sheet
      Information (End of
      Period)
     Accounts receivable,
      net                                              $80,743       $78,918
     Inventories, net                                   81,525        76,166
     Net assets of
      discontinued
      operations                                             -        12,444
     Total current assets                              178,561       184,076
     Total assets                                      288,158       298,750
     Short-term debt                                   109,213        99,009
     Total current
      liabilities                                      146,463       146,413
     Long-term debt                                     40,372        47,826
     Shareholders' equity                               96,704        99,750
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X97561645
 
 

SOURCE Johnson Outdoors, Inc.
    RACINE, Wis., April 25 /PRNewswire/ -- Johnson Outdoors Inc.
 (Nasdaq:   JOUT) today reported lower results for its fiscal 2001 second quarter
 ended March 30, 2001, as soft economic conditions and unseasonably cool spring
 weather affected customer demand and masked the company's overall progress in
 market share and operating efficiency.
     Second quarter net sales were $96.8 million compared with $96.7 million in
 the year-ago period (2% growth excluding currency fluctuations).  Second
 quarter operating profit was $6.6 million compared with $9.6 million in the
 prior year's second quarter.  Net income from continuing operations was
 $2.2 million or $0.27 per diluted share, compared with $3.9 million or
 $0.48 per diluted share in last year's second quarter.  Including a loss on
 disposal of discontinued operations of $1.3 million or $0.16 per diluted
 share, last year's second quarter net income was $2.6 million or $0.32 per
 diluted share.
     "We made significant progress on a number of fronts at Johnson in the
 second quarter, but it was not enough to offset the slow demand industry-wide
 resulting from soft economic conditions and unseasonably cool weather in many
 of our key markets," commented Helen Johnson-Leipold, Chairman and Chief
 Executive Officer of Johnson Outdoors Inc. "With lower demand industry-wide,
 our production throughput decreased, reducing our manufacturing efficiency and
 masking the progress we've made in productivity and market share."
     Johnson-Leipold emphasized, "Specifically, we've gained market share in
 both Diving and Motors, increased productivity in Watercraft's largest unit,
 and Outdoor Equipment turned in another strong performance.  Moreover, we have
 strengthened our management team with several new leaders, including a new CFO
 with strong public company operating experience who will come on board May 7.
 Once business conditions pick up and weather normalizes, we should begin to
 see the positive impact of our operational improvements, product innovation
 and gains in market share."
 
     Outdoor Equipment
     Outdoor Equipment sales increased 10% to $32.4 million and operating
 profit rose 25% to $3.7 million compared with last year's second quarter,
 driven by strong military sales of camping equipment and solid progress by
 Jack Wolfskin in both Germany and other European markets. Higher sales drove a
 significant improvement in profitability, as operating margin rose to 11.4%
 from 10.1% in the prior year's second quarter.
 
     Watercraft
     Sales at Watercraft decreased less than 1% to $21.7 million from the
 year-ago quarter, as poor weather conditions reduced demand industry-wide,
 especially in Johnson's key Northeastern U.S. markets.  Lower than expected
 sales reduced manufacturing efficiency, leading to a 60% decrease in operating
 profit to $1.5 million compared with last year.  Johnson-Leipold noted that
 several Watercraft units are showing early indications of improved
 productivity, including Old Town, the division's largest unit, which had
 substantially higher gross profit in March compared with a year ago.
     Motors
     Independent industry data showed that the Motors segment gained market
 share in the second quarter. However, with weak industry conditions, second
 quarter sales decreased 10% to $22.8 million and operating profit fell 24% to
 $2.3 million from last year's second quarter.
 
     Diving
     The Diving segment also showed strong gains in market share. In the face
 of poor industry conditions, Diving produced sales of $20.3 million, down 2%
 from the year-ago quarter, with a 13% decrease in operating profit to $1.7
 million.
 
     Six-Month Results
     Six-month net sales were $154.4 million compared with $152.9 million in
 the year-ago period (4% growth excluding currency fluctuations). Operating
 profit was $3.0 million compared with $9.7 million for the previous six-month
 period.  Net loss from continuing operations was $1.0 million or
 $0.13 per share, compared with net income from continuing operations of
 $2.9 million or $0.35 per diluted share in last year's six-month period.  Net
 income was $0.7 million or $0.09 per diluted share for the first six months of
 fiscal 2001, which included a $1.8 million or $0.22 per diluted share gain due
 to the required adoption of FASB 133. For the first six months of fiscal 2000,
 Johnson had a net loss of $22.5 million or $2.77 per share, which included a
 $25.4 million or $3.12 per share loss from discontinued operations.
 
     Outlook
     Johnson-Leipold said, "With such weak market conditions and unusual
 weather, particularly in our key Northeast markets, many of which were under
 snow just a few weeks ago, it's difficult to gauge our current progress in
 productivity.  Even if demand picks up in the months ahead, we won't be able
 to make up the sales and earnings potential lost during the early spring.
 Nonetheless, over the long term, we believe our gains in productivity will
 have a meaningful impact on future profitability, and we are optimistic about
 our new product pipeline.  While current external conditions continue to be
 very challenging, we are encouraged by the improvement in Johnson's
 fundamentals and their potential long-term impact."
 
     Webcast
     Johnson Outdoors will hold a conference call on April 25, 2001 at
 4:00 p.m. Eastern Standard Time.  The call will be webcast at
 www.johnsonoutdoors.com and www.ccbn.com .  A replay will be available on both
 websites for 30 days.
     Johnson Outdoors Inc. is a global company engaged in the design,
 manufacture and marketing of branded outdoor recreation products, including:
     Watercraft: Old Town(R) canoes and kayaks, Ocean Kayak(TM), Necky and
         Dimension(R) kayaks, Leisure Life watercraft, Escape(R) sailboats,
         Carlisle(TM) paddles and oars, Extrasport(R) and Swiftwater(R)
         personal flotation devices
     Diving: Scubapro(R) diving equipment, Aladin(R) and Uwatec(R) instruments
     Motors: Minn Kota(R) electric motors, Airguide(R) instruments
     Outdoor Equipment: Jack Wolfskin(R) outdoor clothing, footwear and
         equipment, Eureka!(R) tents and Camp Trails(R) back packs, Eureka!(R)
         and Losberger commercial tents, Silva(R) compasses
 
     Visit Johnson Outdoors online at www.JohnsonOutdoors.com .
 
     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.  These
 forward-looking statements can generally be identified as such because the
 context of the statement includes phrases such as the Company "expects,"
 "believes" or other words of similar meaning.  Similarly, statements that
 describe the Company's future outlook plans, objectives or goals are also
 forward-looking statements.  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 changes in consumer spending
 patterns, actions of companies that compete with Johnson Outdoors, the
 Company's success in managing inventory, movements in foreign currencies or
 interest rates, the success of suppliers and customers as well as adverse
 weather conditions.  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 press release and the Company undertakes no obligations to
 publicly update such forward-looking statements to reflect subsequent events
 or circumstances.
 
 
                     JOHNSON OUTDOORS INC. AND SUBSIDIARIES
                     (thousands, except per share amounts)
 
     Operating Results       THREE MONTHS ENDED         SIX MONTHS ENDED
                            March 30      March 31    March 30      March 31
                              2001          2000        2001          2000
 
     Net sales              $96,765       $96,703     $154,384      $152,903
     Cost of sales           59,361        57,633       94,787        91,921
     Gross profit            37,404        39,070       59,597        60,982
     Operating expenses      30,809        28,818       56,571        50,539
     Strategic charges            -           668            -           720
     Operating profit         6,595         9,584        3,026         9,723
     Interest expense         2,867         2,912        4,949         5,185
     Other expenses
      (income), net              12           (58)        (233)         (375)
     Income (loss) from
      continuing operations
      before income taxes     3,716         6,730       (1,690)        4,913
     Income tax expense
      (benefit)               1,513         2,834         (664)        2,052
     Income (loss) from
      continuing operations
      before cumulative
      effect of change in
      accounting principle    2,203         3,896       (1,026)        2,861
     Loss from discontinued
      operations, net of
      tax                         -             -            -          (940)
     Loss on disposal of
      discontinued
      operations, net of
      tax                         -        (1,309)           -       (24,418)
     Cumulative effect of
      change in accounting
      principle, net of tax       -             -        1,755             -
     Net income (loss)       $2,203        $2,587         $729      $(22,497)
     Basic and diluted
      earnings (loss) per
      common share:
       Continuing
        operations            $0.27         $0.48       $(0.13)        $0.35
       Discontinued
        operations                -         (0.16)           -         (3.12)
       Cumulative effect
        of change in
        accounting
        principle, net of
        tax                       -             -         0.22             -
     Net income (loss)        $0.27         $0.32        $0.09        $(2.77)
     Diluted average
      common shares
      outstanding             8,167         8,122        8,138         8,122
     Segment Results
     Net sales:
       Outdoor equipment    $32,395       $29,414      $53,466       $47,423
       Motors                22,762        25,382       32,901        37,113
       Diving                20,317        20,719       36,330        36,753
       Watercraft            21,728        21,869       32,313        31,961
       Other/eliminations      (437)         (681)        (626)         (347)
     Total                  $96,765       $96,703     $154,384      $152,903
     Operating profit:
       Outdoor equipment     $3,683        $2,957       $4,981        $3,617
       Motors                 2,300         3,036      (1,001)         2,235
       Diving                 1,669         1,924        3,485         3,403
       Watercraft             1,514         3,748          400         4,022
       Other/eliminations    (2,571)       (2,081)      (4,839)       (3,554)
     Total                   $6,595        $9,584       $3,026        $9,723
     Balance Sheet
      Information (End of
      Period)
     Accounts receivable,
      net                                              $80,743       $78,918
     Inventories, net                                   81,525        76,166
     Net assets of
      discontinued
      operations                                             -        12,444
     Total current assets                              178,561       184,076
     Total assets                                      288,158       298,750
     Short-term debt                                   109,213        99,009
     Total current
      liabilities                                      146,463       146,413
     Long-term debt                                     40,372        47,826
     Shareholders' equity                               96,704        99,750
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X97561645
 
 SOURCE  Johnson Outdoors, Inc.