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Johnson Outdoors Inc. Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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Johnson Outdoors Inc. (JOUT) filed Quarterly Report for the period ended 2010-07-02.

Johnson Outdoors Inc. has a market cap of $120.9 million; its shares were traded at around $12.71 with a P/E ratio of 115.5 and P/S ratio of 0.3. JOUT is in the portfolios of Michael Price of MFP Investors LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of JOUT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of JOUT.


Highlight of Business Operations:

Operating expenses were $38.1 million for the quarter ended July 2, 2010, an increase of $2.6 million over the prior year quarter amount of $35.5 million. Primary factors driving the increase in operating expenses were an additional $1 million of variable costs associated with higher sales, $2.8 million bonus and profit sharing expense incurred in the current year quarter versus no such expense in the same period in the prior year, and a $0.8 million increase in research and development spending, offset by reductions in bad debt expense, restructuring costs and the effects of cost reduction actions taken in the prior year including reduced headcount.

For the nine months ended July 2, 2010, interest expense totaled $4.0 million, of which $1.3 million related to amortization of losses on interest rate swaps, compared to $7.4 million in the corresponding period of the prior year, which included $1.5 million related to amortization of losses on interest rate swaps. The decreases from the prior year periods were due primarily to the reduction in interest rates and overall debt levels in addition to an expense of $0.7 million incurred during prior year to mark the Company s interest rate swaps to market. See “Note 13 – Derivative Instruments and Hedging Activities” to the Company s condensed consolidated financial statements for further discussion.

Other income/expense included a $0.5 million market loss on the assets related to the Company s non-qualified deferred compensation plan for the three month period ended July 2, 2010, and a $0.1 million market gain for the nine month period ended July 2, 2010. Foreign currency exchange losses included in other income/expense were $0 and $0.3 million for the three and nine month periods ended July 2, 2010, respectively. Foreign currency exchange gains for the three month period ended July 3, 2009 were $0.3 million. For the nine month period ended July 3, 2009, foreign currency exchange losses were $0.4 million. See “Note 13 – Derivative Instruments and Hedging Activities” to the Company s condensed consolidated financial statements for further discussion.

Net income for the nine months ended July 2, 2010 was $12.4 million, or $1.30 per diluted common class A and B share, compared to net income of $4.6 million or $0.49 per diluted common class A and B share for the corresponding period of the prior year, an increase of $0.81 per diluted common class A and B share, due to the factors discussed above.

The increase in accounts receivable for the nine months ended July 2, 2010 totaled $35.2 million, compared with $29.3 million in the prior fiscal year period. Cash flows used by inventories totaled $3.7 million for the nine months ended July 2, 2010 compared to reductions in inventory which provided $24.2 million of cash in the prior year period. Cash flows provided by accounts payable and accrued liabilities were $18.3 million for the nine months ended July 2, 2010 versus $2.5 million used in the corresponding period of the prior year.

Cash used for investing activities totaled $5.0 million for the nine months ended July 2, 2010 and $12.8 million for the corresponding period of the prior year. Current year cash usage related entirely to capital expenditures net of proceeds from sales of property, plant and equipment. Capital expenditures for the nine months ended July 3, 2009 were $5.2 million. Cash used in the prior year also included payments of $6.7 million under interest rate swap contracts as well as $0.9 million of payments for the purchase of the Navicontrol business

Read the The complete Report

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