RACINE, Wisconsin — Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoor recreation equipment and technology, today announced a slight decline in sales and earnings for the fiscal year ended September 30, 2022. Revenue for fiscal 2022 declined 1 percent from the previous record year, while operating income declined 40 percent and net income declined 47 percent from the previous fiscal year.
“While sales in fiscal 2022 were relatively flat compared to fiscal 2021, which was one of our strongest fiscal years, the challenging situation in the supply chain, particularly in our fisheries business, resulted in a significant impact on our profitability. Fiscal fourth quarter showed some easing in supply availability and we remain focused on evaluating options to address increased costs and supply chain efficiencies. We ended the fiscal year with strong orders and continue to replenish inventories from our customers,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “While it is unclear to what extent economic conditions and inflation will impact consumer purchasing behavior going forward, we remain focused on maintaining innovation leadership and creating long-term value for our consumers.”
HIGHLIGHTS OF FISCAL YEAR 2022
- Continued strong incoming orders in all business areas
- Awards for new product innovations
- Debt-free balance sheet
- Increased quarterly dividend to shareholders
FISCAL YEAR 2022 RESULTS
The company’s total revenue decreased 1 percent to $743.4 million compared to revenue of $751.7 million in fiscal 2021. Key year-on-year drivers included:
- Fisheries revenue declined 5 percent despite continued strong demand, primarily due to continued supply chain disruptions that slowed our ability to complete and ship finished goods
- Camping grew 12 percent on higher sales in the Jetboil® and Eureka® product categories
- Watercraft Recreation sales increased 2 percent due to continued strong demand for the Sportsman line
- Diving sales rose 14 percent year-on-year as several regions of the world reopened and tourism increased
The Company’s total operating income for fiscal 2022 was $66.3 million, which compared unfavorably to operating income of $111.3 million in the prior fiscal year. As a result of the significant increase in material costs, gross margin was 36.5 percent in fiscal 2022 compared to 44.5 percent in fiscal 2021. Operating expenses decreased $17.8 million year-over-year primarily due to lower variable and deferred compensation expenses is attributable to the financial year 2022 compared to the previous financial year. Income before income taxes was $58.9 million compared to $112.9 million a year ago.
Net income for the fiscal year was $44.5 million, or $4.37 per diluted share, down 47 percent from $83.4 million, or $8.21 per diluted share, last fiscal year . The effective tax rate was 24.4 percent compared to 26.2 percent in the prior year.
FOURTH QUARTER RESULTS
The Company’s total net sales for the fourth fiscal quarter were $196.4 million, an increase of 18 percent over sales for the fourth quarter of the prior fiscal year as supply availability at our fishing business began to improve. Operating income of $13.3 million for the fourth quarter of the current year decreased slightly from $13.6 million in the fourth quarter of last year. Gross margin declined 6 points from the year-ago quarter, primarily due to increased material costs and inventory reserves. Operating expenses were flat year-over-year despite higher sales volumes, due in large part to lower warranty and bad debt losses. In addition, deferred compensation expense decreased $1.2 million due to losses on plan assets, which was fully offset in other expenses. Income before income taxes improved to $11.8 million in the fourth quarter of the current fiscal year from $10.5 million. Net income for the fourth quarter was $9.7 million compared to $6.9 million for the fourth quarter of fiscal 2021.
OTHER FINANCIAL INFORMATION
The Company reported cash and short-term investments of $129.8 million as of September 30, 2022, down $110.6 million from the prior year, excluding debt on its balance sheet. Depreciation and amortization was $14.2 million compared to $13.4 million in fiscal 2021. Capital expenditures totaled $31.7 million in fiscal 2022 compared to 21.4 million dollars for fiscal 2021. In September 2022, the Company’s Board of Directors approved a 3 percent increase in the quarterly cash dividend to shareholders of record effective October 13, 2022, payable October 27, 2022.
“As we move into fiscal 2023, we remain focused on closely monitoring demand and proactively managing above-average inventories. While we have seen improvements in the supply chain for raw materials and purchased components, we expect that fiscal 2023 will experience some supply chain constraints on a regular basis and that our margins will continue to be impacted by inflationary pricing conditions,” said David W. Johnson, Chief Financial Officer . “Our balance sheet and healthy cash position continue to provide us with the flexibility and resources needed to invest in strategic opportunities to strengthen the business while continuing to pay dividends to shareholders.”
The Company will host a conference call and audio webcast on Friday, December 9, 2022 at 11:00 am Eastern Time. A listen-only live webcast of the conference call can be accessed here. A replay of the conference call will be available online for 30 days.
About Johnson Outdoors Inc.
JOHNSON OUTDOORS is a leading global innovator of outdoor recreation gear and technologies that inspire more people to experience the awe of the great outdoors. The company designs, manufactures and markets a portfolio of successful, consumer-preferred brands across four categories: watersports, fishing, diving and camping. Johnson Outdoors iconic brands include: Old Town® canoes and kayaks; Ocean Kayak™; Carlisle® paddle; Minn Kota® fishing motors, batteries and anchors; Cannon® downrigger; Humminbird® marine electronics and charts; SCUBAPRO® diving equipment; Jetboil® outdoor cooking systems; and Eureka!® camping and hiking gear. Visit Johnson Outdoors at johnsonoutdoors.com.