Johnson Outdoors reports jump in marine business

RACINE, Wis. – Outdoor recreational company Johnson Outdoors Inc. (NASDAQ: JOUT), saw an 11 percent increase in net sales during the third quarter ended June 30, it reported in a recent statement. This was driven largely by increases in its marine electronics and watercraft businesses.

The company reported net sales of $135.5 million for the third quarter compared to $122.4 million for the prior year quarter. Net earnings were $6.6 million or $0.72 per diluted share compared to $6.8 million or $0.77 per diluted share in the prior year quarter.

Significant gains in the marine electronics and watercraft business units – credited in part to successful new product introductions – more than offset anticipated declines in military sales and lower diving sales.

Marine Electronics sales grew 21 percent driven by Humminbird and the acquisition of the Cannon and Bottomline brands completed on October 3, 2005, which added a combined $3.3 million in net sales to the unit during the quarter.

Watercraft sales jumped 14 percent ahead of last year’s third quarter results due to strong double-digit growth in Old Town and Ocean Kayak brands, the company said.

Total company operating profit in the quarter increased 18 percent to $13.9 million compared with $11.8 million in the prior year quarter.

Net income was $6.6 million, or $0.72 per diluted share, for the quarter versus $6.8 million, or $0.77 per diluted share, in the prior year quarter.

“We had a solid quarter as investments in new businesses, new products and new systems began to drop to the bottom-line. Marine Electronics delivered another outstanding performance, and Watercraft is moving in the right direction on the strength of paddlesports’ brands, despite continued investment in building sales and distribution for the Escape brand,” observed Helen Johnson-Leipold, chairman and chief executive officer, Johnson Outdoors Inc. “Our vision is to own the outdoor adventure with innovation and passion, and by doing so, to deliver sustainable profitable growth and enhanced shareholder value. Our performance this year demonstrates we have the capability and capacity to realize our vision as we begin to set our sights on growing revenues to half a billion dollars over the next few years.”

Net sales for the first nine months of fiscal 2006 were $315.5 million, a 4-percent increase over $303.6 million during the same period last year. Key drivers in the nine-month period were:

  • Cannon and Bottomline brands, which added $7.7 million to year-to-date sales
  • Increased sales in Humminbird, Old Town and Ocean Kayak brands
  • The anticipated decline in military sales and lower diving revenues during the period
  • Unfavorable currency exchange which reduced revenues by $1.7 million year-to-date
  • Temporary closure of the company’s Outdoor Equipment operations, due to flooding caused by heavy rains in the Northeast, which halted shipments of finished goods during the final week of the year-to-date period
  • Total company operating profit was $21.4 million during the nine-month period compared to $20.1 million during the prior year-to-date period which reflected $2.5 million in costs associated with the terminated buy-out proposal.

    Net income year-to-date was $9.6 million, or $1.05 per diluted share, versus net income of $10.5 million, or $1.20 per diluted share, in the prior year nine-month period.

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