Johnson Outdoors today reported double-digit growth in operating profits and earnings in its third quarter and for the fiscal year to date.
Net sales increased slightly, from $128.6 million to $129.8 million, in the quarter that ended June 28 and they were 3.5 percent above the prior year-to-date revenue, the Wisconsin-based outdoor recreation equipment company said.
Operating profits in the third quarter totaled $16.1 million, a 13 percent increase from the quarter a year earlier. Operating expenses declined $1.8 million quarter-over-quarter, largely because of lower restructuring charges and the benefit of a $500,000 insurance settlement related to a flood in the company's Binghamton, N.Y., operation in late fiscal 2011.
Third-quarter net income of $13.7 million, or $1.37 a diluted share, marked a 52 percent increase from $9 million, or 91 cents a share, in the same quarter last year.
Net income in the quarter this year reflected changes in foreign tax valuation allowances, which the company said significantly reduced its effective tax rate year-over-year.
"We are reaping the benefits of efforts over the past three years to build a strong foundation for sustained profitable growth in each of our businesses,” chairman and CEO Helen Johnson-Leipold said in a statement. “Clear strategic focus and disciplined execution are key factors in the progress achieved. Investment in innovative products and technologies will be a core driver to continued success."
The company said fiscal 2013 net sales for the nine-month period that ended June 28 were $349.1 million, a 3.5 percent increase from the same period in the previous year.
The company’s total operating profit was $30.3 million for the current nine-month period, a 24 percent increase from the prior year period, which benefited from a $3.5 million favorable settlement with the company's insurance carriers.
Net income for the current nine-month period was $22.8 million, or $2.30 a diluted share, a 71 percent increase from the prior year nine-month net income of $13.3 million, or $1.35 a diluted share.