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

February 04, 2011 | About:
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10qk

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Johnson Outdoors Inc. (JOUT) filed Quarterly Report for the period ended 2010-12-31.

Johnson Outdoor has a market cap of $142.9 million; its shares were traded at around $14.92 with a P/E ratio of 22.6 and P/S ratio of 0.4. Hedge Fund Gurus that owns JOUT: Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Operating expenses were $32.0 million for the quarter ended December 31, 2010, an increase of $2.1 million over the prior year quarter amount of $29.9 million. Primary factors driving the increase in operating expenses were an additional $1.2 million of variable costs incurred in the current year quarter associated with higher sales and a $0.6 million increase in research and development spending.

Interest expense totaled $0.9 million for the three months ended December 31, 2010, compared to $1.2 million in the corresponding period of the prior year. Reduced amortization of deferred losses on interest rate swaps resulted in approximately $0.2 million of the decrease in interest expense year over year. The remaining $0.1 million decrease was due to reduced interest rates on outstanding debt as a result of the amendment to the Company s revolving credit agreement. See “Note 12 – Indebtedness” to the Company s condensed consolidated financial statements for further discussion.

Included in other income/expense were $0.5 million of market gains and income on the assets related to the Company s non-qualified deferred compensation plan for the three months ended December 31, 2010 and $0.4 million of market gains and income for the three month period ended January 1, 2010. Foreign currency exchange losses included in other income/expense were $0.5 million for the three month period ended December 31, 2010. For the three month period ended January 1, 2010, other income/expense included gains on foreign currency exchange of $0.2 million. The Company expanded its use of foreign currency forward contracts during the three month period ended December 31, 2010 to reduce the economic effect of increasing volatility in foreign currency exchange rates on the Company s operations. See “Note 13 – Derivative Instruments and Hedging Activities” of the notes to the Company s condensed consolidated financial statements for further discussion.

Debt, net of cash balances, was $14.1 million as of December 31, 2010 compared to $21.1 million as of January 1, 2010. The Company's debt to total capitalization ratio was 27% as of December 31, 2010 down from 29% as of January 1, 2010. The Company s total debt balance was $47.2 million as of December 31, 2010 compared to $46.8 million as of January 1, 2010. See “Note 12 – Indebtedness” in the notes to the Company s condensed consolidated financial statements for further discussion.

The increase in accounts receivable for the three months ended December 31, 2010 totaled $14.0 million, compared with $12.4 million in the prior fiscal year period. The larger increase in the current period was primarily due to higher sales volume in the first quarter of the current year versus the prior year. Cash flows used by inventories totaled $12.3 million for the three months ended December 31, 2010 compared to a $5.0 million use of cash in the prior year period. The Company s business segments, especially Marine Electronics, increased inventory levels in the current year to meet the increased level of demand. Cash flows provided by accounts payable and accrued liabilities were $1.6 million for the three months ended December 31, 2010 versus $1.7 million in the corresponding period of the prior year.

The Company had outstanding borrowings of $31.0 million on revolving credit facilities and current maturities of its long-term debt of $1.3 million as of December 31, 2010. As of January 1, 2010, the Company had $30.0 million outstanding on revolving credit facilities and current maturities of long-term debt of $0.6 million. The Company had outstanding borrowings on long-term debt (net of current maturities) of $14.8 million and $16.1 million as of December 31, 2010 and January 1, 2010, respectively.

Read the The complete Report

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