RACINE, Wis., Dec. 10, 2021 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoor recreation equipment and technology, today announced higher revenue and earnings for the fiscal year ending October 1, 2021. Continued high demand for products in Fishing, Camping and Watercraft Recreation propelled a 26 percent increase in sales as operating profit grew 56.6 percent and net income rose 51 percent over the prior fiscal year. Fourth quarter net sales rose slightly above the prior year quarter’s unprecedented results.
“Johnson Outdoors had an exceptional year, driven by people’s continued interest in spending time outdoors. Fishing, Camping and Watercraft Recreation saw strong sales during all four quarters, with Diving beginning to recover in the third and fourth fiscal quarters. While ongoing global supply chain disruptions remain challenging, we’re pleased with our results and our employees’ hard work to continue to meet demand and deliver the best outdoor experiences possible,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “Looking ahead, we remain focused on our key strategic drivers—understanding our consumers, sustaining innovation leadership, identifying new sources and paths of growth in our markets, and continually optimizing our digital consumer experience—to ensure our portfolio of market-leading brands is well-positioned for success.”
FISCAL 2021 HIGHLIGHTS
- Ongoing strong consumer demand in Fishing, Camping and Watercraft Recreation
- Innovation and new product success
- Record operating profits and net income
- Strong, debt-free balance sheet
- Increased quarterly dividend to shareholders 43 percent
FISCAL 2021 RESULTS
Total Company revenue grew 26 percent to $751.7 million versus fiscal 2020 revenue of $594.2 million. Key factors in the year-over-year comparison were:
- Fishing revenue increased 23 percent due to continued demand across all product lines
- Camping grew 51 percent due to higher sales in both Jetboil® and Eureka®
- Watercraft Recreation sales rose 59 percent due to continued high demand across all product categories, including the Sportsman line
- Diving sales were up 14 percent, comparing favorably to the prior fiscal year as markets began to recover from pandemic-related restrictions
Total Company operating profit was $111.3 million in fiscal 2021, which compared favorably to operating profit of $71.1 million in the prior fiscal year. Despite higher raw material and freight costs, gross margins only dipped slightly due to volume efficiencies and favorable product mix. Operating expenses increased $28.9 million versus the prior year due largely to volume-related expenses, but declined as a percentage of sales versus fiscal 2020.
Net income for the fiscal year improved to $83.4 million, or $8.21 per diluted share, a 51 percent improvement versus $55.2 million, or $5.47 per diluted share, in the last fiscal year. The effective tax rate was 26.2 percent compared to the previous fiscal year’s rate of 25.1 percent.
FOURTH QUARTER RESULTS
Total Company net sales in the fiscal fourth quarter were $166.3 million, an increase from the prior fiscal year’s strong fourth quarter sales. Operating profit of $13.6 million in the current year fourth quarter declined from $19.5 million in the prior year fourth quarter. Gross margin declined from the prior year quarter due to increased tariffs, inbound air freight costs and higher cost of goods sold. Operating expenses increased slightly due to higher sales volume-related expenses, but remained consistent with the prior year quarter as a percent of net sales. Net earnings for the fourth quarter were $6.9 million compared to $15.5 million in fiscal 2020.
OTHER FINANCIAL INFORMATION
The Company reported cash and short-term investments of $240.4 million as of October 1, 2021, a $28.0 million increase from the prior year, with no debt on its balance sheet. Depreciation and amortization in fiscal 2021 were $13.4 million compared to $14.9 million in fiscal 2020. Capital spending totaled $21.4 million in fiscal 2021 compared with $15.6 million in fiscal 2020. In September 2021, the Company’s Board of Directors approved a 43 percent increase in the quarterly cash dividend to shareholders of record as of October 15, 2021, which was payable on October 29, 2021.
“Heading into fiscal year 2022, we remain focused on managing ongoing global supply chain pressures and related logistics constraints affecting our industry and the marketplace. We’re maintaining higher-than-normal inventory levels to meet demand for our products and we expect near-term margins to be impacted by the pressure on our supply chain,” said David W. Johnson, Chief Financial Officer. “Importantly, our balance sheet and healthy cash position enables us to invest in strategic opportunities to strengthen the business, while consistently paying dividends to shareholders.”
WEBCAST
The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Friday, December 10, 2021. 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; Ocean Kayak™; Carlisle® paddles; Minn Kota® fishing motors, batteries and anchors; 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 to be filed with the Securities and Exchange Commission on December 10, 2021, 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), 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; 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. 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 | TWELVE MONTHS ENDED | ||||||||||||
| Operating Results | October 1 2021 | October 2 2020 | October 1 2021 | October 2 2020 | |||||||||
| Net sales | $ | 166,260 | $ | 164,681 | $ | 751,651 | $ | 594,209 | |||||
| Cost of sales | 97,930 | 90,994 | 417,526 | 329,216 | |||||||||
| Gross profit | 68,330 | 73,687 | 334,125 | 264,993 | |||||||||
| Operating expenses | 54,739 | 54,141 | 222,842 | 193,923 | |||||||||
| Operating profit | 13,591 | 19,546 | 111,283 | 71,070 | |||||||||
| Interest income, net | (85 | ) | (66 | ) | (221 | ) | (1,270 | ) | |||||
| Other expense (income), net | 3,149 | (1,567 | ) | (1,418 | ) | (1,362 | ) | ||||||
| Income before income taxes | 10,527 | 21,179 | 112,922 | 73,702 | |||||||||
| Income tax expense | 3,601 | 5,632 | 29,541 | 18,469 | |||||||||
| Net income | $ | 6,926 | $ | 15,547 | $ | 83,381 | $ | 55,233 | |||||
| Diluted average common shares outstanding | 10,139 | 10,088 | 10,120 | 10,064 | |||||||||
| Diluted net income per common share | $ | 0.68 | $ | 1.53 | $ | 8.21 | $ | 5.47 | |||||
| Segment Results | |||||||||||||
| Net sales: | |||||||||||||
| Fishing | $ | 110,637 | $ | 113,904 | $ | 553,000 | $ | 449,878 | |||||
| Camping | 18,726 | 15,564 | 62,921 | 41,592 | |||||||||
| Watercraft Recreation | 16,509 | 15,717 | 66,603 | 41,857 | |||||||||
| Diving | 20,466 | 19,457 | 69,447 | 60,873 | |||||||||
| Other/eliminations | (78 | ) | 39 | (320 | ) | 9 | |||||||
| Total | $ | 166,260 | $ | 164,681 | $ | 751,651 | $ | 594,209 | |||||
| Operating profit (loss): | |||||||||||||
| Fishing | $ | 14,937 | $ | 24,676 | $ | 122,490 | $ | 95,884 | |||||
| Camping | 3,950 | 2,803 | 14,025 | 4,406 | |||||||||
| Watercraft Recreation | 1,844 | 1,692 | 9,173 | (329 | ) | ||||||||
| Diving | 1,146 | 626 | 1,530 | (2,576 | ) | ||||||||
| Other | (8,286 | ) | (10,251 | ) | (35,935 | ) | (26,315 | ) | |||||
| Total | $ | 13,591 | $ | 19,546 | $ | 111,283 | $ | 71,070 | |||||
| Balance Sheet Information (End of Period) | |||||||||||||
| Cash, cash equivalents and short-term investments | $ | 240,448 | $ | 212,437 | |||||||||
| Accounts receivable, net | 71,321 | 67,292 | |||||||||||
| Inventories, net | 166,615 | 97,437 | |||||||||||
| Total current assets | 491,264 | 388,538 | |||||||||||
| Total assets | 674,287 | 546,026 | |||||||||||
| Total current liabilities | 137,570 | 105,607 | |||||||||||
| Total liabilities | 215,782 | 167,926 | |||||||||||
| Shareholders� equity | 458,505 | 378,100 | |||||||||||
| At Johnson Outdoors Inc. | |
| David Johnson | Patricia Penman |
| VP & Chief Financial Officer | VP – Marketing Services & Global Communications |
| 262-631-6600 | 262-631-6600 |
