Johnson Outdoors reports fiscal first quarter results
by Johnson Outdoors Inc 6 Feb 2022 09:23 PST
Johnson Outdoors Inc © Johnson Outdoors Inc
Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoor recreation equipment and technology, has announced lower sales and earnings year over year for the Company's first fiscal quarter ending Friday, December 31, 2021.
"Demand for outdoor recreation products continues to be strong; managing ongoing supply chain challenges and uncertainties associated with the pandemic remain our focus in the near term as we work hard to fill demand," said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
First quarter results
Total Company net sales in the first quarter ending December 2021 declined 7 percent to $153.5 million compared to the prior year's record-high first fiscal quarter. Notably, this quarter's net sales are 20 percent above the pre-pandemic December 2019 quarter's net sales. Key contributing factors to the results were:
- In Fishing, while consumer demand and customer orders remain strong, sales declined by 15 percent driven by supply chain disruptions and component delays
- Camping revenue increased 16 percent due to continued demand across consumer product lines as well as increased military tent sales
- Watercraft Recreation revenue grew 17 percent with continued strong demand for the Sportsman line of products
- Diving sales rose 17 percent as dive markets, primarily in the United States and other regions around the world, experienced some recovery
Total Company operating profit was $13.8 million for the first fiscal quarter versus $23.6 million in the prior year first quarter. Gross margin of 39.5 percent was below the prior year quarter driven primarily by increases in costs of raw materials and freight as the Company continues to take actions to ensure the availability of necessary components. Operating expenses decreased $4.6 million over the prior year period due primarily to the impact of lower sales volume-driven expenses.
Net income was $10.9 million, or $1.07 per diluted share, versus $19.8 million, or $1.96 per diluted share in the previous year's first quarter. The Company's effective tax rate was 25.6 percent compared to 23.7 percent in the prior year's first quarter.
Other financial information
The Company reported cash and short-term investments of $167.5 million as of December 31, 2021. Depreciation and amortization were flat year over year at $3.5 million. Capital spending totaled $6.2 million in the current quarter compared with $4.4 million in the prior year quarter, due to additional capacity investments. In December 2021, the Company's Board of Directors approved a quarterly cash dividend to shareholders of record as of January 13, 2022, which was payable January 27, 2022.
"We've been taking the necessary steps to mitigate the impact of global supply chain pressures on the business, including maintaining higher-than-normal inventory levels to meet demand for our products and seeking alternative sources of supply for critical components where feasible. We are taking price increases for our products where appropriate, and we will continue to evaluate further pricing actions for the future," said David W. Johnson, Chief Financial Officer. "Importantly, our strong balance sheet enables us to continue investing 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, February 4, 2022. 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.