The recent press release has all the financial details but a couple quick highlights below paint a dismal picture of their overall sales:
- Total net sales declined 18.6 percent compared to the prior year quarter, due largely to economic conditions in key markets.
- Marine Electronics revenues were 15.8 percent below last year due primarily to continued weakness in domestic and international boat markets.
- Watercraft sales were 26.4 percent below the prior year due to lower customer reorders, unfavorable currency translation of 3.4 percent and continued scaling back of distribution in non-core channels.
- Outdoor Equipment sales compared unfavorably by 24.9 percent to last year due primarily to a decrease in military tent orders and commercial tent market weakness.
So generally speaking, sales have sucked really bad. The only real saving grace is that they implanted the massive cost reduction plan announced back in December, 2008 which, when fully implemented, will result in an estimated $20 million in cost savings.
One of the many changes included was the consolidation of all domestic watercraft production to their boat plant in Old Town, Maine. We reported about it here. The changes cost them $1.4 million but should save over $4 million each year going forward.
Other highlights in costs savings include (from the press release):
- Cost savings efforts were progressing on track and in line with expectations. For the quarter, operating expense decreased 14 percent from the prior year third quarter.
- Working capital was $124.6 million at quarter-end, reflecting a $47 million (27 percent) decline compared to the prior year quarter as net inventory levels dropped 36 percent from the previous year quarter.
- Capital spending was down 38 percent year-over-year.
How are they doing overall in sales? Not great. Net sales in the first nine months of fiscal 2009 were $291.2 million versus $339.0 million in the same nine-month period last year, a decrease of 14 percent.
Let’s hope that the economy turns around soon so Johnson Outdoors can get back on track and focus on what they do best, make great paddlesports outdoor gear.
Stock prices are currently sitting at around $6.90 a share, a sharp decline from its 5-year peak of $23.49 back in November, 2007.
Of course, we have seen all of this before. If you look at the share prices for Johnson Outdoors since 1990, they were once selling for $35/share with a massive drop in value (low of $5.19) during the recession in 2000.
They bounced back then and will do the same no doubt.
More info: reuters.com (stock info)
Stock graph credit: reuters.com