Johnson Outdoors reports 1Q results - Trade Only Today

Johnson Outdoors reports 1Q results

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Johnson Outdoors announced revenue grew 2 percent to more than $80 million during the first quarter, despite a 66 percent drop in year-over-year military sales.

The company reported a net loss of $2.9 million, or 30 cents per diluted share, during the first fiscal quarter, compared to a net loss of $1.2 million, or 13 cents per diluted share, in the same quarter last year.

Total operating loss during the quarter was $3.7 million, compared to an operating loss of $1.3 million in the prior year period.

Johnson Outdoors' first fiscal quarter results historically reflect a loss because of the seasonality of the warm-weather outdoor recreational products industry, the company said.

“Steady recovery of outdoor recreational markets remains central to continued progress against our strategic plan to ensure sustained profitability,” chairman and CEO Helen Johnson-Leipold said in a statement. “Current economic conditions in key regions present a mixed picture of expectations for outdoor markets the remainder of the year. In North America and Asia, initial indicators are favorable for ongoing recovery, while uncertainty continues throughout Europe, particularly in southern European markets.”

Net sales were $80.2 million in the first fiscal quarter compared with net sales of $78.7 million in the prior year quarter. Double-digit sales growth in marine electronics and watercraft more than offset significant reductions in military tent sales during the quarter.

Marine electronics revenue increased 11 percent above last year, driven in large part by a 25-plus-percent increase in sales of Humminbird side- and down-imaging sonar products. Watercraft sales grew 22 percent primarily due to low-margin year-end close-outs in the sporting goods channel, as core specialty channel revenue held steady.

“Inventory levels are on track with projections, and we feel confident in our ability to meet our fiscal 2012 target of maintaining days of working capital at fiscal 2011 levels,” vice president and CFO David Johnson said in a statement. “We continue to pay down debt and benefit from lower borrowing costs. In fiscal 2012, we are focused on generating strong profitability and cash flow, reflecting our ongoing commitment to enhanced shareholder value.”

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