GlobeNewswire Inc | May 7, 2021 06:00AM EDT

May 07, 2021

RACINE, Wis., May 07, 2021 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoor recreationequipment and technology, today announced higher sales and earnings during the Companys second fiscal quarter ending Friday, April 2, 2021. Year-to-date revenue and net income compared favorably to the prior year fiscal six-month period.

Through the second fiscal quarter, our results reflect the strong levels of demand fueled by the pandemic and the increased interest in outdoor activities. I am proud of our team for their exceptional work in delivering these results during this unprecedented time. Our primary focus continues to be keeping pace with high demand, said Helen Johnson-Leipold, Chairman and Chief Executive Officer. Looking ahead, the power of our innovation and the enduring strength of our brand equities continue to well-position Johnson Outdoors for marketplace success.

SECOND QUARTER RESULTSSales in the second fiscal quarter reflect shipments to customers in anticipation of the primary retail selling period for the outdoor recreation industrys warm-weather products. Total Company net sales in the second quarter surged 26 percent year over year to $206.2 million, versus $163.1 million in the prior year fiscal quarter. Key contributing factors to the results were:

-- Continued high demand across all product lines in Minn Kota and Humminbird propelled a 19.5 percent increase in Fishing revenue. -- Watercraft Recreation and Camping sales rose significantly due to strong demand across all product categories. -- Ongoing pandemic-related global travel restrictions and lockdowns in various countries led to the unfavorable year-over-year revenue comparison in Diving.

Total Company operating profit during the quarter was $36.0 million versus $31.8 million in the prior year second quarter. Gross margin dipped slightly to 45.2 percent due primarily to increases in tariffs and freight costs year over year. Operating expenses were $57.2 million, with the increase driven by higher sales volume-driven expenses, as well as higher variable and deferred compensation expense between quarters. Favorable market conditions on the Company's deferred compensation plan assets resulted in higher deferred compensation expense in the current year quarter as compared to the prior year quarter, which was entirely offset by a gain in Other Income. Net income increased to $27.8 million, or $2.74 per diluted share.

YEAR-TO-DATE RESULTSFiscal 2021 year-to-date net sales were $371.8 million, a 28 percent increase over last years first fiscal six-month period. Total Company operating profit rose 54.4 percent to $59.6 million compared to $38.6 million in prior fiscal year-to-date period. Gross margin improved to 45.3 percent in the first fiscal six months versus 44.2 percent in the prior fiscal year-to-date period. Operating expenses were $108.7 million due to volume-related costs and the items noted above for the quarter. Net income during the first fiscal six months was $47.7 million, or $4.70 per diluted share, versus $26.8 million, or $2.66 per diluted share, in the prior fiscal year-to-date period. The Companys effective tax rate decreased year-over-year to 24.7 percent.

OTHER FINANCIAL INFORMATION The Company reported cash and short-term investments of $186.9 million as of April 2, 2021. Depreciation and amortization were flat year over year at $6.8 million. Capital spending was $9.8 million in the first fiscal six months compared with $7.8 million in the prior year period. In February 2021, the Companys Board of Directors approved a quarterly cash dividend to shareholders of record as of April 15, 2021, which was payable on April 29, 2021.

Were continuing to work with our supply chain partners to maintain adequate inventory and increase capacity where possible as we work hard to fill demand, said David W. Johnson, Chief Financial Officer. The balance sheet remains strong and our healthy cash position enables us to invest in strategic opportunities to strengthen the business, while continuing to create value for the long-term and consistently pay dividends to shareholders.

WEBCAST The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Friday, May 7, 2021. A live listen-only web cast of the conference call may be accessed at Johnson Outdoors home page. 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 Companys Form 10-K filed with the Securities and Exchange Commission on December 11, 2020, 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 Companys 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 Companys continued success in its working capital management and cost-structure reductions; the Companys success in integrating strategic acquisitions; the risk of future write-downs of goodwill or other long-lived assets; the ability of the Companys customers to meet payment obligations; the impact of actions of the Companys competitors with respect to product development or enhancement or the introduction of new products into the Companys 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 Companys supply chain as a result of material fluctuations in the Companys order volumes and requirements for raw materials and other components necessary to manufacture and produce the Companys products; the success of the Companys suppliers and customers and the impact of any consolidation in the industries of the Companys 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 SIX MONTHS ENDED ENDEDOperating Results April 2 March 27 April 2 March 27 2021 2020 2021 2020Net sales $ 206,156 $ 163,084 $ 371,823 $ 291,138 Cost of sales 112,902 87,952 203,539 162,394 Gross profit 93,254 75,132 168,284 128,744 Operating expenses 57,218 43,338 108,691 90,149 Operating profit 36,036 31,794 59,593 38,595 Interest (income) (45 ) (449 ) (95 ) (1,069 )expense, netOther (income) (1,229 ) 3,866 (3,633 ) 2,698 expense, netIncome before income 37,310 28,377 63,321 36,966 taxesIncome tax expense 9,476 7,990 15,640 10,149 Net income $ 27,834 $ 20,387 $ 47,681 $ 26,817 Diluted averagecommon shares 10,120 10,060 10,101 10,047 outstandingDiluted net income $ 2.74 $ 2.02 $ 4.70 $ 2.66 per common shareSegment Results Net sales: Fishing $ 160,016 $ 133,955 $ 287,015 $ 233,233 Camping 14,244 8,849 26,438 16,363 Watercraft 17,778 6,064 30,221 10,873 RecreationDiving 14,208 14,261 28,301 30,720 Other/eliminations (90 ) (45 ) (152 ) (51 )Total $ 206,156 $ 163,084 $ 371,823 $ 291,138 Operating profit (loss):Fishing $ 40,400 $ 32,917 $ 68,163 $ 47,935 Camping 2,962 709 5,770 775 Watercraft 2,814 (1,639 ) 3,883 (3,202 )RecreationDiving (1,253 ) (812 ) (1,594 ) (607 )Other (8,887 ) 619 (16,629 ) (6,306 )Total $ 36,036 $ 31,794 $ 59,593 $ 38,595 Balance SheetInformation (End of Period)Cash and cash $ 186,921 $ 131,256 equivalentsAccounts receivable, 130,139 106,629 netInventories, net 124,538 107,680 Total current assets 450,769 353,342 Total assets 618,980 504,304 Total current 123,503 102,623 liabilitiesTotal liabilities 195,244 157,202 Shareholders' equity 423,736 347,102

At Johnson Outdoors Inc.David Johnson Patricia PenmanVP & Chief Financial Officer VP ? Marketing Services & Global Communications262-631-6600 262-631-6600