Johnson Outdoors Inc. has a market cap of $102.64 million; its shares were traded at around $10.8 with and P/S ratio of 0.29. Johnson Outdoors Inc. had an annual average earning growth of 8.8% over the past 5 years.JOUT is in the portfolios of Michael Price of MFP Investors LLC, Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:Operating expenses were $29.9 million for the quarter ended January 1, 2010, a decrease of $0.4 million over the prior year quarter amount of $30.3 million. Primary factors driving the reduced level of operating expenses were headcount reductions and curtailed spending in administrative costs, a favorable $0.2 million impact of the pension freeze, partially offset by restructuring and related charges of $0.4 million associated with the consolidation of Watercraft operations and the effect of no bonus and profit sharing expense in the first three months of the prior fiscal year.
Net loss for the three months ended January 1, 2010 was $4.2 million, or $0.45 per diluted common class A and B share, compared to a net loss of $6.9 million, or $0.75 per diluted common class A and B share, for the corresponding period of the prior year due to the factors discussed above. See “Note 4 – Earnings Per Share” to the Company s condensed consolidated financial statements for further discussion.
Accounts receivable net of allowance for doubtful accounts were $55.8 million as of January 1, 2010, a decrease of $5.8 million compared to $61.6 million as of January 2, 2009. The decrease year over year was primarily due to shifting of sales programs and related product shipments to coincide more closely with our customers primary selling season, as well as aggressive management of credit limits and collection efforts in the current year which were offset somewhat by the effect of foreign currency translation of $1.3 million.
Inventories net of inventory reserves were $65.8 million as of January 1, 2010, a decrease of $21.9 million compared to $87.7 million as of January 2, 2009. The decrease year over year was primarily due to a concerted effort to reduce working capital levels through strict controls and improved processes offset by the effect of foreign currency translation of $1.7 million.
Cash flows used by accounts receivable totaled $12.4 million for the three months ended January 1, 2010, compared with a usage of $9.5 million in the prior fiscal year period. Cash flows used by inventories totaled $5.0 million for the three months ended January 1, 2010 compared to a usage of $1.8 million in the prior year period. The year to date increase in inventory cash flow usage year over year was due primarily to increased production in the three month period ended January 1, 2010 in response to an expected stabilization of the outdoor recreational products market. Cash flows provided by accounts payable and accrued liabilities were $1.7 million for the three months ended January 1, 2010 versus a usage of $2.7 million for the corresponding period of the prior year period. The year to date change in accounts payable cash flows year over year reflects reduced production activity in the prior year.
On September 29, 2009 the Company also entered into a new Revolving Credit and Security Agreement (the "Revolving Credit Agreement" or "Revolver" and collectively, with the Term Loans, the "Debt Agreements") among the Company, certain of the Company's subsidiaries, PNC Bank, National Association, as lender, as administrative agent and collateral agent, and the other lenders named therein, replacing the Company s Amended and Restated Revolving Credit Agreement of $30.0 million (formerly $75.0 million) that was due to mature on October 7, 2010. The new Revolving Credit Agreement, maturing in September 2012, provides for funding of up to $69.0 million. Borrowing availability under the Revolver is based on certain eligible working capital assets, primarily account receivables and inventory of the Company and its subsidiaries. The Revolver contains a seasonal line reduction that reduces the maximum amount of borrowings to $46.0 million from mid-July to mid-November, consistent with the Company's reduced working capital needs throughout that period, and requires an annual seasonal pay down to $25.0 million for 60 consecutive days. The Company s remaining borrowing availability under the Revolver was approximately $4.5 million at January 1, 2010. The Revolver is secured with a first priority lien on working capital assets and certain patents and trademarks of the Company and its subsidiaries and a second lien on land, buildings, machinery and equipment of the Company's domestic subsidiaries. As cash collections related to secured assets are applied against the balance outstanding under the Revolver, the liability is classified as current. The interest rate on the Revolver is based primarily on LIBOR plus 3.25 percent with a minimum LIBOR floor of 2.0%.
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