Wisconsin
(State or other jurisdiction of
incorporation or organization)
|
39-1536083
(I.R.S. Employer Identification No.)
|
|
Index
|
Page No.
|
|||
PART I
|
FINANCIAL INFORMATION
|
|||
Item 1.
|
Financial Statements
|
|||
Condensed Consolidated Statements of Operations – Three
and nine months ended June 28, 2013 and June 29, 2012
|
1
|
|||
Condensed Consolidated Statements of Comprehensive
Income – Three and nine months ended June 28, 2013 and
June 29, 2012
|
2
|
|||
Condensed Consolidated Balance Sheets – June 28, 2013,
September 28, 2012 and June 29, 2012
|
3
|
|||
Condensed Consolidated Statements of Cash Flows – Nine
months ended June 28, 2013 and June 29, 2012
|
4
|
|||
Notes to Condensed Consolidated Financial Statements
|
5
|
|||
Item 2.
|
Management's Discussion and Analysis of Financial
Condition and Results of Operations
|
23
|
||
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
31
|
||
Item 4.
|
Controls and Procedures
|
32
|
||
PART II
|
OTHER INFORMATION
|
|||
Item 1.
|
Legal Proceedings
|
33
|
||
Item 1A.
|
Risk Factors
|
33
|
||
Item 6.
|
Exhibits
|
33
|
||
Signatures
|
33
|
|||
Exhibit Index
|
34
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
June 28
|
June 29
|
June 28
|
June 29
|
|||||||||||||
(thousands, except per share data)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net sales
|
$ | 129,772 | $ | 128,595 | $ | 349,146 | $ | 337,497 | ||||||||
Cost of sales
|
75,435 | 74,348 | 206,911 | 201,622 | ||||||||||||
Gross profit
|
54,337 | 54,247 | 142,235 | 135,875 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Marketing and selling
|
25,215 | 25,085 | 70,309 | 70,751 | ||||||||||||
Administrative management, finance and information systems
|
8,999 | 11,370 | 29,944 | 33,408 | ||||||||||||
Litigation settlement recovery
|
- | - | - | (3,500 | ) | |||||||||||
Research and development
|
3,990 | 3,570 | 11,685 | 10,732 | ||||||||||||
Total operating expenses
|
38,204 | 40,025 | 111,938 | 111,391 | ||||||||||||
Operating profit
|
16,133 | 14,222 | 30,297 | 24,484 | ||||||||||||
Interest income
|
(14 | ) | (14 | ) | (67 | ) | (45 | ) | ||||||||
Interest expense
|
186 | 595 | 1,110 | 2,008 | ||||||||||||
Other expense (income), net
|
451 | (403 | ) | 71 | (1,699 | ) | ||||||||||
Income before income taxes
|
15,510 | 14,044 | 29,183 | 24,220 | ||||||||||||
Income tax expense
|
1,856 | 5,049 | 6,345 | 10,886 | ||||||||||||
Net income
|
$ | 13,654 | $ | 8,995 | $ | 22,838 | $ | 13,334 | ||||||||
Weighted average common shares - Basic:
|
||||||||||||||||
Class A
|
8,331 | 8,175 | 8,293 | 8,149 | ||||||||||||
Class B
|
1,213 | 1,216 | 1,213 | 1,216 | ||||||||||||
Participating securities
|
- | - | - | - | ||||||||||||
Dilutive stock options and units
|
5 | 3 | 5 | 8 | ||||||||||||
Weighted average common shares - Dilutive
|
9,549 | 9,394 | 9,511 | 9,373 | ||||||||||||
Net income per common share - Basic:
|
||||||||||||||||
Class A
|
$ | 1.39 | $ | 0.92 | $ | 2.34 | $ | 1.37 | ||||||||
Class B
|
$ | 1.26 | $ | 0.84 | $ | 2.11 | $ | 1.24 | ||||||||
Net income per common share - Diluted:
|
||||||||||||||||
Class A
|
$ | 1.37 | $ | 0.91 | $ | 2.30 | $ | 1.35 | ||||||||
Class B
|
$ | 1.37 | $ | 0.91 | $ | 2.30 | $ | 1.35 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
June 28
|
June 29
|
June 28
|
June 29
|
|||||||||||||
(thousands, except per share data)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Comprehensive income:
|
||||||||||||||||
Net income
|
$ | 13,654 | $ | 8,995 | $ | 22,838 | $ | 13,334 | ||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Foreign currency translation gain (loss)
|
13 | (4,485 | ) | (2,460 | ) | (5,682 | ) | |||||||||
Income from cash flow hedge
|
- | 199 | 138 | 683 | ||||||||||||
Total comprehensive income
|
$ | 13,667 | $ | 4,709 | $ | 20,516 | $ | 8,335 |
June 28
|
September 28
|
June 29
|
||||||||||
(thousands, except share data)
|
2013
|
2012
|
2012
|
|||||||||
ASSETS
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$ | 41,678 | $ | 58,904 | $ | 38,745 | ||||||
Accounts receivable, net
|
75,894 | 40,673 | 77,012 | |||||||||
Inventories
|
75,210 | 67,058 | 67,018 | |||||||||
Deferred income taxes
|
5,005 | 8,645 | 9,526 | |||||||||
Other current assets
|
5,732 | 7,672 | 4,431 | |||||||||
Total current assets
|
203,519 | 182,952 | 196,732 | |||||||||
Property, plant and equipment, net of accumulated
|
||||||||||||
depreciation of $103,253, $98,235, and $95,416, respectively
|
41,021 | 36,667 | 36,049 | |||||||||
Deferred income taxes
|
15,586 | 14,808 | 14,337 | |||||||||
Goodwill
|
20,938 | 14,466 | 14,361 | |||||||||
Other intangible assets, net
|
14,216 | 4,309 | 4,344 | |||||||||
Other assets
|
11,409 | 10,430 | 9,085 | |||||||||
Total assets
|
$ | 306,689 | $ | 263,632 | $ | 274,908 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||
Current liabilities:
|
||||||||||||
Short-term notes payable and revolving credit lines
|
$ | 8,998 | $ | - | $ | 3,490 | ||||||
Current maturities of long-term debt
|
549 | 526 | 516 | |||||||||
Accounts payable
|
28,831 | 24,559 | 30,269 | |||||||||
Accrued liabilities:
|
||||||||||||
Salaries, wages and benefits
|
13,804 | 15,365 | 13,375 | |||||||||
Accrued warranty
|
5,167 | 4,751 | 5,219 | |||||||||
Income taxes payable
|
2,521 | 582 | 4,983 | |||||||||
Other
|
16,863 | 13,184 | 15,443 | |||||||||
Total current liabilities
|
76,733 | 58,967 | 73,295 | |||||||||
Long-term debt, less current maturities
|
7,917 | 8,334 | 8,470 | |||||||||
Deferred income taxes
|
4,891 | 694 | 191 | |||||||||
Retirement benefits
|
11,339 | 11,827 | 9,269 | |||||||||
Other liabilities
|
11,165 | 10,206 | 10,014 | |||||||||
Total liabilities
|
112,045 | 90,028 | 101,239 | |||||||||
Shareholders' equity:
|
||||||||||||
Preferred stock: none issued
|
||||||||||||
Common stock:
|
||||||||||||
Class A shares issued and outstanding:
|
438 | 434 | 434 | |||||||||
June 28, 2013: 8,724,070
September 28, 2012: 8,676,703
June 29, 2012: 8,678,369
|
||||||||||||
Class B shares issued and outstanding:
|
61 | 61 | 61 | |||||||||
June 28, 2013: 1,213,334
September 28, 2012: 1,215,758
June 29, 2012: 1,215,842
|
||||||||||||
Capital in excess of par value
|
65,428 | 64,184 | 63,333 | |||||||||
Retained earnings
|
115,655 | 92,817 | 96,017 | |||||||||
Accumulated other comprehensive income
|
13,795 | 16,117 | 13,833 | |||||||||
Treasury stock at cost, shares of Class A common
|
||||||||||||
stock: 35,680, 516 and 516, respectively
|
(733 | ) | (9 | ) | (9 | ) | ||||||
Total shareholders' equity
|
194,644 | 173,604 | 173,669 | |||||||||
Total liabilities and shareholders' equity
|
$ | 306,689 | $ | 263,632 | $ | 274,908 |
Nine Months Ended
|
||||||||
(thousands)
|
June 28
2013
|
June 29
2012
|
||||||
CASH PROVIDED BY OPERATING ACTIVITIES
|
|
|||||||
Net income
|
$ | 22,838 | $ | 13,334 | ||||
Adjustments to reconcile net income to net cash provided by
|
||||||||
operating activities:
|
||||||||
Depreciation
|
6,808 | 7,900 | ||||||
Amortization of intangible assets
|
496 | 977 | ||||||
Amortization of deferred financing costs
|
178 | 293 | ||||||
Stock based compensation
|
1,098 | 1,292 | ||||||
Amortization of deferred loss on interest rate swap
|
138 | 683 | ||||||
Deferred income taxes
|
2,435 | 4,953 | ||||||
Change in operating assets and liabilities, net of effects of acquired business:
|
- | |||||||
Accounts receivable, net
|
(34,737 | ) | (31,080 | ) | ||||
Inventories, net
|
(6,429 | ) | 42 | |||||
Accounts payable and accrued liabilities
|
8,056 | 8,461 | ||||||
Other current assets
|
2,162 | 565 | ||||||
Other non-current assets
|
(1,205 | ) | (1,216 | ) | ||||
Other long-term liabilities
|
563 | 469 | ||||||
Other, net
|
57 | 332 | ||||||
|
2,458 | 7,005 | ||||||
CASH USED FOR INVESTING ACTIVITIES
|
||||||||
Payments for purchase of business
|
(15,420 | ) | - | |||||
Additions to property, plant and equipment
|
(10,938 | ) | (8,930 | ) | ||||
Proceeds from sales of property, plant and equipment
|
- | 1,208 | ||||||
|
(26,358 | ) | (7,722 | ) | ||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES
|
||||||||
Net borrowings from short-term notes payable and revolving credit lines
|
8,997 | 3,491 | ||||||
Principal payments on senior notes and other long-term debt
|
(393 | ) | (5,986 | ) | ||||
Common stock transactions
|
130 | 369 | ||||||
Purchases of treasury stock
|
(886 | ) | (107 | ) | ||||
7,848 | (2,233 | ) | ||||||
Effect of foreign currency rate changes on cash
|
(1,174 | ) | (2,819 | ) | ||||
Decrease in cash and cash equivalents
|
(17,226 | ) | (5,769 | ) | ||||
CASH AND CASH EQUIVALENTS
|
||||||||
Beginning of period
|
58,904 | 44,514 | ||||||
End of period
|
$ | 41,678 | $ | 38,745 |
Shares
|
Weighted
Average
Exercise Price
|
Aggregate Intrinsic
Value
|
Weighted
Average
Remaining
Contractual
Term (Years)
|
|||||||||||||
Outstanding and exercisable at September 28, 2012
|
23,366 | $ | 15.39 | |||||||||||||
Exercised
|
(8,300 | ) | 10.35 | |||||||||||||
Outstanding and exercisable at June 28, 2013
|
15,066 | 18.16 | $ | 97 | 1.5 |
Weighted Average
|
||||||||
Shares
|
Grant Price
|
|||||||
Non-vested stock at September 28, 2012
|
493,548 | $ | 11.95 | |||||
Non-vested stock grants
|
70,545 | 20.66 | ||||||
Restricted stock vested
|
(177,684 | ) | 11.43 | |||||
Non-vested stock at June 28, 2013
|
386,409 | 13.78 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
June 28
|
June 29
|
June 28
|
June 29
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Components of net periodic benefit cost:
|
||||||||||||||||
Service cost
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Interest on projected benefit obligation
|
249 | 259 | 748 | 777 | ||||||||||||
Less estimated return on plan assets
|
244 | 236 | 733 | 707 | ||||||||||||
Amortization of unrecognized losses
|
167 | 84 | 500 | 252 | ||||||||||||
$ | 172 | $ | 107 | $ | 515 | $ | 322 |
Jurisdiction
|
Fiscal Years
|
|
United States
|
2011-2012
|
|
Canada
|
2008-2012
|
|
France
|
2009-2012
|
|
Germany
|
2009-2012
|
|
Italy
|
2009-2012
|
|
Japan
|
2012
|
|
Switzerland
|
2002-2012
|
June 28
|
September 28
|
June 29
|
||||||||||
2013
|
2012
|
2012
|
||||||||||
Raw materials
|
$ | 26,230 | $ | 26,610 | $ | 21,917 | ||||||
Work in process
|
507 | 1,324 | 1,576 | |||||||||
Finished goods
|
48,473 | 39,124 | 43,525 | |||||||||
$ | 75,210 | $ | 67,058 | $ | 67,018 |
June 28
2013
|
June 29
2012
|
|||||||
Balance at beginning of period
|
$ | 14,466 | $ | 14,651 | ||||
Jetboil® acquisition
|
6,475 | - | ||||||
Amount attributable to movements in foreign currency rates
|
(3 | ) | (290 | ) | ||||
Balance at end of period
|
$ | 20,938 | $ | 14,361 |
June 28
2013
|
June 29
2012
|
|||||||
Balance at beginning of period
|
$ | 4,751 | $ | 5,155 | ||||
Expense accruals for warranties issued during the period
|
2,903 | 2,740 | ||||||
Less current period warranty claims paid
|
2,487 | 2,676 | ||||||
Balance at end of period
|
$ | 5,167 | $ | 5,219 |
Measurement period adjustments increase (decrease)
|
||||
Financial assets
|
$ | (33 | ) | |
Inventories
|
(159 | ) | ||
Property, plant and equipment
|
80 | |||
Identifiable intangible assets and goodwill
|
3,865 | |||
Deferred tax liabilities
|
4,257 | |||
Financial liabilities
|
(390 | ) |
Recognized amounts of identifiable assets acquired and liabilities assumed
|
||||
Accounts receivable
|
$ | 1,184 | ||
Inventories
|
2,232 | |||
Other current assets
|
167 | |||
Property, plant and equipment
|
314 | |||
Identifiable intangible assets
|
10,400 | |||
Less, accounts payable and accruals
|
1,111 | |||
Less, deferred tax liabilities
|
4,241 | |||
Total identifiable net assets
|
8,945 | |||
Goodwill
|
6,475 | |||
Net assets acquired
|
$ | 15,420 |
Useful
|
|||||
Description
|
Amount ($)
|
Life (yrs)
|
|||
Patents
|
240 |
7
|
|||
Noncontractual customer relationships
|
3,700 |
15
|
|||
Non-compete agreements
|
1,060 |
4
|
Acquisition Date
through
|
Twelve months ended
|
|||||||||||
June 28, 2013
(unaudited)
|
December 31, 2012
(unaudited)
|
December 31, 2011
(unaudited)
|
||||||||||
Net sales
|
$ | 7,732 | $ | 13,745 | $ | 10,775 | ||||||
Operating profit
|
394 | 2,469 | 1,203 |
Employee Termination Costs
|
Contract Exit Costs
|
Other Exit Costs
|
Total
|
|||||||||||||
Accrued restructuring liabilities as of September 28, 2012
|
$ | 428 | $ | - | $ | 100 | $ | 528 | ||||||||
Activity during the period ended June 28, 2013:
|
||||||||||||||||
Charges to earnings
|
641 | 294 | 168 | 1,103 | ||||||||||||
Settlement payments
|
(686 | ) | (43 | ) | (255 | ) | (984 | ) | ||||||||
Accrued restructuring liabilities as of June 28, 2013
|
$ | 383 | $ | 251 | $ | 13 | $ | 647 |
June 28
2013
|
September 28
2012
|
June 29
2012
|
||||||||||
Term loans
|
$ | 8,221 | $ | 8,456 | $ | 8,531 | ||||||
Revolvers
|
8,998 | - | 3,490 | |||||||||
Other
|
245 | 404 | 455 | |||||||||
Total debt
|
17,464 | 8,860 | 12,476 | |||||||||
Less current portion of long term debt
|
549 | 526 | 516 | |||||||||
Less short term notes payable and revolving credit lines
|
8,998 | - | 3,490 | |||||||||
Total long-term debt
|
$ | 7,917 | $ | 8,334 | $ | 8,470 |
Fiscal Year
|
||||
2013
|
$ | 132 | ||
2014
|
514 | |||
2015
|
359 | |||
2016
|
367 | |||
2017
|
387 | |||
Thereafter
|
6,707 | |||
Total
|
$ | 8,466 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
June 28
|
June 29
|
June 28
|
June 29
|
|||||||||||||
Loss reclassified from AOCI into:
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Interest expense
|
$ | - | $ | 199 | $ | 138 | $ | 683 |
Location of loss (gain)
|
Three Months Ended
|
||||
Derivatives not designated as
|
recognized in statement
|
June 28
|
June 29
|
||
hedging instruments
|
of operations
|
2013
|
2012
|
||
Foreign exchange forward contracts
|
Other expense (income), net
|
$ | (10) | $ | 304 |
Location of loss (gain)
|
Nine Months Ended
|
||||
Derivatives not designated as
|
recognized in statement
|
June 28
|
June 29
|
||
hedging instruments
|
of operations
|
2013
|
2012
|
||
Foreign exchange forward contracts
|
Other expense (income), net
|
$ | 59 | $ | 316 |
● | Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets or liabilities. | |
● | Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. | |
● | Level 3 - Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. |
The following table summarizes the Company's financial assets and liabilities measured at fair value as of June 28, 2013:
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Rabbi trust assets
|
$ | 8,263 | $ | - | $ | - | $ | 8,263 | ||||||||
Liabilities:
|
||||||||||||||||
Foreign currency forward contracts
|
- | 79 | - | 79 | ||||||||||||
The following table summarizes the Company's financial assets measured at fair value as of September 28, 2012:
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Rabbi trust assets
|
$ | 7,289 | $ | - | $ | - | $ | 7,289 | ||||||||
Foreign currency forward contracts
|
- | 173 | - | 173 | ||||||||||||
The following table summarizes the Company's financial assets and liabilities measured at fair value as of June 29, 2012:
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Rabbi trust assets
|
$ | 6,796 | $ | - | $ | - | $ | 6,796 | ||||||||
Liabilities:
|
||||||||||||||||
Foreign currency forward contracts
|
- | 39 | - | 39 |
The effect of changes in the fair value of financial instruments on the Condensed Consolidated Statements of Operations for the three months ended June 28, 2013 and June 29, 2012 was:
|
|||||||||
Location of (income) loss
|
Three Months Ended
|
||||||||
recognized in Statement of
|
June 28
|
June 29
|
|||||||
Operations
|
2013
|
2012
|
|||||||
Rabbi trust assets
|
Other expense (income), net
|
$ | (31 | ) | $ | 286 | |||
Foreign currency forward contracts
|
Other expense (income), net
|
(10 | ) | 304 |
Location of (income) loss
|
Nine Months Ended
|
||||||||
recognized in Statement of
|
June 28
|
June 29
|
|||||||
Operations
|
2013
|
2012
|
|||||||
Rabbi trust assets
|
Other expense (income), net
|
$ | (469 | ) | $ | (796 | ) | ||
Foreign currency forward contracts
|
Other expense (income), net
|
59 | 316 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||
June 28
|
June 29
|
June 28
|
June 29
|
September 28 | ||||||||||||||
2013
|
2012
|
2013
|
2012
|
2012 | ||||||||||||||
Net sales:
|
||||||||||||||||||
Marine Electronics:
|
||||||||||||||||||
Unaffiliated customers
|
$ | 73,445 | $ | 70,123 | $ | 214,769 | $ | 198,057 | ||||||||||
Interunit transfers
|
127 | 100 | 232 | 193 | ||||||||||||||
Outdoor Equipment:
|
||||||||||||||||||
Unaffiliated customers
|
14,802 | 12,197 | 33,312 | 27,894 | ||||||||||||||
Interunit transfers
|
20 | 25 | 46 | 55 | ||||||||||||||
Watercraft:
|
||||||||||||||||||
Unaffiliated customers
|
18,986 | 22,109 | 39,535 | 46,631 | ||||||||||||||
Interunit transfers
|
68 | 56 | 87 | 79 | ||||||||||||||
Diving
|
||||||||||||||||||
Unaffiliated customers
|
22,304 | 23,958 | 61,124 | 64,509 | ||||||||||||||
Interunit transfers
|
271 | 93 | 749 | 398 | ||||||||||||||
Other / Corporate
|
235 | 208 | 406 | 406 | ||||||||||||||
Eliminations
|
(486 | ) | (274 | ) | (1,114 | ) | (725 | ) | ||||||||||
Total
|
$ | 129,772 | $ | 128,595 | $ | 349,146 | $ | 337,497 | ||||||||||
Operating profit (loss):
|
||||||||||||||||||
Marine Electronics
|
$ | 13,188 | $ | 12,165 | $ | 33,528 | $ | 26,555 | ||||||||||
Outdoor Equipment
|
2,061 | 1,522 | 2,017 | 2,101 | ||||||||||||||
Watercraft
|
1,314 | 506 | (910 | ) | 1,109 | |||||||||||||
Diving
|
1,901 | 2,631 | 3,982 | 4,239 | ||||||||||||||
Other / Corporate
|
(2,331 | ) | (2,602 | ) | (8,320 | ) | (9,520 | ) | ||||||||||
$ | 16,133 | $ | 14,222 | $ | 30,297 | $ | 24,484 | |||||||||||
Total assets (end of period):
|
||||||||||||||||||
Marine Electronics
|
$ | 125,868 | $ | 108,692 | $ | 97,261 | ||||||||||||
Outdoor Equipment
|
41,758 | 22,967 |
26,978
|
|||||||||||||||
Watercraft
|
39,770 | 44,260 |
32,766
|
|||||||||||||||
Diving
|
73,483 | 71,339 |
70,957
|
|||||||||||||||
Other / Corporate
|
25,810 | 27,650 |
35,670
|
|||||||||||||||
$ | 306,689 | $ | 274,908 | $ | 263,632 |
● | Forward Looking Statements | |
● | Trademarks | |
● | Overview | |
● | Results of Operations | |
● | Liquidity and Financial Condition | |
● | Contractual Obligations and Off Balance Sheet Arrangements | |
● | Critical Accounting Policies and Estimates |
Year Ended
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Quarter Ended
|
Net
Sales
|
Operating
Profit
|
Net
Sales
|
Operating
Profit
|
||||||||||||
December
|
19 | % | -17 | % | 19 | % | -8 | % | ||||||||
March
|
31 | % | 65 | % | 32 | % | 65 | % | ||||||||
June
|
31 | % | 66 | % | 30 | % | 67 | % | ||||||||
September
|
19 | % | -14 | % | 19 | % | -24 | % | ||||||||
100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
June 28
|
June 29
|
June 28
|
June 29
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net sales:
|
||||||||||||||||
Marine Electronics
|
$ | 73,572 | $ | 70,223 | $ | 215,001 | $ | 198,250 | ||||||||
Outdoor Equipment
|
14,822 | 12,222 | 33,358 | 27,949 | ||||||||||||
Watercraft
|
19,054 | 22,165 | 39,622 | 46,710 | ||||||||||||
Diving
|
22,575 | 24,051 | 61,873 | 64,907 | ||||||||||||
Other / Eliminations
|
(251 | ) | (66 | ) | (708 | ) | (319 | ) | ||||||||
Total
|
$ | 129,772 | $ | 128,595 | $ | 349,146 | $ | 337,497 | ||||||||
Operating profit (loss):
|
||||||||||||||||
Marine Electronics
|
$ | 13,188 | $ | 12,165 | $ | 33,528 | $ | 26,555 | ||||||||
Outdoor Equipment
|
2,061 | 1,522 | 2,017 | 2,101 | ||||||||||||
Watercraft
|
1,314 | 506 | (910 | ) | 1,109 | |||||||||||
Diving
|
1,901 | 2,631 | 3,982 | 4,239 | ||||||||||||
Other / Eliminations
|
(2,331 | ) | (2,602 | ) | (8,320 | ) | (9,520 | ) | ||||||||
Total
|
$ | 16,133 | $ | 14,222 | $ | 30,297 | $ | 24,484 |
Nine Months Ended
|
||||||||
(thousands)
|
June 28
2013
|
June 30
2012
|
||||||
Cash (used for) provided by:
|
|
|||||||
Operating activities
|
$ | 2,458 | $ | 7,005 | ||||
Investing activities
|
(26,358 | ) | (7,722 | ) | ||||
Financing activities
|
7,848 | (2,233 | ) | |||||
Effect of foreign currency rate changes on cash
|
(1,174 | ) | (2,819 | ) | ||||
Decrease in cash and cash equivalents
|
$ | (17,226 | ) | $ | (5,769 | ) |
Total
|
Less than 1 year
|
2-3 years
|
4-5 years
|
After 5 years
|
||||||||||||||||
Long-term debt
|
$ | 8,466 | $ | 132 | $ | 872 | $ | 755 | $ | 6,707 | ||||||||||
Short-term debt
|
8,998 | 8,998 | - | - | - | |||||||||||||||
Operating lease obligations
|
16,214 | 1,532 | 8,777 | 4,774 | 1,131 | |||||||||||||||
Open purchase orders
|
57,285 | 57,285 | - | - | - | |||||||||||||||
Contractually obligated interest payments
|
4,152 | 218 | 821 | 747 | 2,366 | |||||||||||||||
Total contractual obligations
|
$ | 95,115 | $ | 68,165 | $ | 10,470 | $ | 6,276 | $ | 10,204 |
|
||||||||
Estimated Impact on
|
||||||||
(thousands)
|
Fair Value
|
Income Before Income Taxes
|
||||||
Interest rate instruments
|
$ | - | $ | 244 |
JOHNSON OUTDOORS INC.
|
|
Signatures Dated: August 2, 2013
|
|
/s/ Helen P. Johnson-Leipold
|
|
Helen P. Johnson-Leipold
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
|
/s/ David W. Johnson
|
|
David W. Johnson
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
Exhibit
Number
|
Description
|
|
31.1
|
Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32 (1)
101
|
Certification of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
The following materials from Johnson Outdoors Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 28, 2013 formatted in XBRL (eXtensible Business Reporting Language) and furnished electronically herewith: (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations; (iii) Condensed Consolidated Statements of Comprehensive Income; (iv) Condensed Consolidated Statements of Cash Flows; and (v) Notes to Condensed Consolidated Financial Statements*
|
1) | I have reviewed this Quarterly Report on Form 10-Q of Johnson Outdoors Inc.; | ||
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | ||
5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): | ||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date:
|
August 2, 2013
|
/s/ Helen P. Johnson-Leipold | |
Helen P. Johnson-Leipold
Chairman and Chief Executive Officer
|
1) | I have reviewed this Quarterly Report on Form 10-Q of Johnson Outdoors Inc.; | ||
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | ||
5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): | ||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date:
|
August 2, 2013
|
/s/ David W. Johnson | |
David W. Johnson
Vice President and Chief Financial Officer
Treasurer
|
/s/ Helen P. Johnson-Leipold |
Helen P. Johnson-Leipold
Chairman and Chief Executive Officer
August 2, 2013
|
/s/ David W. Johnson |
David W. Johnson
Vice President and Chief Financial Officer
Treasurer
August 2, 2013
|
Restructuring
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Reserve [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | 11RESTRUCTURING On July 11, 2012, the Company announced plans to restructure certain operations related to its Watercraft segment. Specifically, the Company is restructuring product sales and distribution in Europe and consolidating all of its U.S. operations at a single location in Old Town, Maine. The Company believes this plan will enhance the competitiveness and profit potential of its Watercraft business. This action will result in the closure of two sales offices in Europe, and the closure of a marketing and R&D facility in Bellingham, Washington and the elimination of approximately 24 positions in the U.S. and Europe. The related charges are included in the “Administrative management, finance and information systems” line in the Company’s accompanying Condensed Consolidated Statements of Operations in the Watercraft segment. The restructuring accrual is included in the “Other current liabilities” line in the Company’s accompanying Condensed Consolidated Balance Sheets. The Company expects the total cost of this restructuring to be approximately $2,650 and to be completed over the next three months.
Changes in the accrual related to this restructuring project for the nine month period ended June 28, 2013 were as follows:
|
Restructuring (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
---|---|
Jun. 28, 2013
employee
|
|
Restructuring Reserve [Abstract] | |
Restructuring and Related Activities, Initiation Date | Jul. 11, 2012 |
Restructuring and Related Cost, Expected Number of Positions Eliminated | 24 |
Restructuring and Related Cost, Expected Cost | $ 2,650 |
Stock-Based Compensation And Stock Ownership Plans
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation And Stock Ownership Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation And Stock Ownership Plans | 4Stock-Based Compensation and Stock Ownership Plans The Company’s current stock ownership plans allow for issuance of stock options to acquire shares of Class A common stock by key executives and non-employee directors. Current plans also allow for issuance of shares of restricted stock, units or stock appreciation rights in lieu of stock options. At the February 28, 2013 Annual Shareholder Meeting, the Company’s shareholders approved the 2012 Johnson Outdoors Inc. Non-Employee Director Stock Ownership Plan (the “2012 Plan”) which provides for the issuance of up to 50,000 shares of Class A common stock pursuant to the terms of the 2012 Plan. The 2012 Plan became effective on December 5, 2012. Under the Company’s 2010 Long-Term Stock Incentive Plan and the 2012 Non-Employee Director Stock Ownership Plan there were 764,058 shares of the Company’s Class A common stock available for grant to key executives and non-employee directors at June 28, 2013. Stock Options All stock options have been granted at a price not less than fair market value at the date of grant and all outstanding options are currently exercisable. Stock options generally have a term of 10 years. All of the Company’s stock options outstanding are fully vested, with no further compensation expense to be recorded. There were no grants of stock options during either of the nine month periods ended June 28, 2013 or June 29, 2012.
The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $24.90 as of June 28, 2013, which would have been received by the option holders had those option holders exercised their stock options as of that date. The Company received cash proceeds from stock option exercises totaling $86 and $338 for the nine month periods ending June 28, 2013 and June 29, 2012, respectively. The fair value of the stock received upon exercise of such options at their date of exercise during the nine month periods ended June 28, 2013 and June 29, 2012 was $171 and $689, respectively. Non-vested Stock All shares of non-vested stock awarded by the Company have been granted at their fair market value on the date of grant and vest either immediately or within five years after the grant date. The fair value at date of grant is based on the number of shares granted and the average of the Company’s high and low Class A common stock price on the date of grant or, if the Company’s shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock price on the last preceding date on which the Company’s shares traded. A summary of non-vested stock activity for the nine months ended June 28, 2013 related to the Company’s stock ownership plans is as follows:
Non-vested stock grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of shares by tendering a portion of the vested shares back to the Company. Shares tendered back to the Company were 43,464 and 6,621 during the nine month periods ended June 28, 2013 and June 29, 2012, respectively. Stock compensation expense, net of forfeitures, related to non-vested stock was $347 and $372 for the three month periods ended June 28, 2013 and June 29, 2012, respectively, and $1,048 and $1,292 for the nine month periods ended June 28, 2013 and June 29, 2012, respectively. Unrecognized compensation cost related to non-vested stock as of June 28, 2013 was $2,655, which amount will be amortized to expense through November 2016 or adjusted for changes in future estimated or actual forfeitures. The fair value of restricted stock vested during the nine month periods ended June 28, 2013 and June 29, 2012 was $3,628 and $511, respectively. Restricted Stock Units All stock units awarded by the Company have been granted at their fair market value on the date of grant and vest within one year after the grant date. The fair value at date of grant is based on the number of units granted and the average of the Company’s high and low Class A common stock price on the date of grant or, if the Company’s shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock trading price on the last preceding date on which the Company’s shares traded. The Company issued 6,600 stock units at a weighted average grant price of $22.73 for the nine month period ended June 28, 2013. No restricted stock units were granted for the three month period ended June 28, 2013 or the three and nine month periods ended June 29, 2012. Stock compensation expense, net of forfeitures, related to stock units was $37 and $50 for the three and nine month periods ended June 28, 2013, respectively. There was no stock compensation expense related to the issuance of stock units during the three or nine month periods ended June 29, 2012. Unrecognized compensation cost related to non-vested stock units as of June 28, 2013 was $100, which amount will be amortized to expense through February 2014 or adjusted for changes in future estimated or actual forfeitures. The Company recognized an income tax benefit on stock-based compensation expense of $146 and $141 for the three month periods ended June 28, 2013 and June 29, 2012, respectively, and $417 and $491 for the nine month periods ended June 28, 2013 and June 29, 2012, respectively. The Company recognized no income tax benefit (expense) on exercises of stock options and vesting of non-vested stock for either of the three month periods ended June 28, 2013 and June 29, 2012, and $(2) and $117 for the nine month periods ended June 28, 2013 and June 29, 2012, respectively. Employees’ Stock Purchase Plan The Company’s shareholders have adopted the Johnson Outdoors Inc. 2009 Employees’ Stock Purchase Plan which provides for the issuance of shares of Class A common stock at a purchase price of not less than 85% of the fair market value of such shares on the date of grant or at the end of the offering period, whichever is lower. During the three and nine month periods ended June 28, 2013, the Company issued 9,562 shares of Class A common stock and recognized $41 of expense in connection with the Employees’ Stock Purchase Plan and during the three and nine month periods ended June 29, 2012, the Company issued 10,349 shares of Class A common stock and recognized $30 of expense in connection with the Employees' Stock Purchase Plan.
|
Significant Event
|
9 Months Ended |
---|---|
Jun. 28, 2013
|
|
Significant Event [Abstract] | |
Significant Event |
18SIGNIFICANT Event On September 12, 2011, the Company announced a temporary closure of its Binghamton, New York manufacturing facility and administrative offices due to flooding from torrential rains. The Binghamton manufacturing facility houses the Company’s consumer, commercial and military tent businesses. The Company’s finished goods warehouse located nearby was unaffected by the flooding and the Company was able to resume shipments of products within a few days. Production resumed on September 28, 2011.
The Company maintains insurance for both property damage and business interruption relating to catastrophic events. Business interruption coverage covers lost profits and other costs incurred. Non-refundable insurance recoveries received in excess of the net book value of damaged assets, clean up and post-event costs are recognized as income in the period received.
The Company has incurred approximately $3,527 of cumulative costs related to clean-up and repair of the facility and equipment, losses of inventory and fixed assets, rental of temporary office space for administrative and R&D personnel and payroll expenses for labor idled due to the flood. The Company has received $4,488 of cumulative insurance reimbursements associated with these costs. During the nine month periods ended June 28, 2013 and June 29, 2012, the Company has recognized a gain of $771 and an expense of $19, respectively, in the Administrative, management, finance and information systems expense line in the Outdoor Equipment segment of the Company’s accompanying Condensed Consolidated Statements of Operations.
The Company has received all expected insurance recoveries related to this event.
|
Indebtedness (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2013
|
Jun. 29, 2012
|
Jun. 28, 2013
|
Jun. 29, 2012
|
|
Weighted Average Borrowing Rate for Short-Term Debt | 2.50% | 2.60% | 2.50% | 2.60% |
Interest Paid | $ 179 | $ 296 | $ 799 | $ 1,062 |
Long-term Debt, Fair Value | 7,917 | 8,470 | 7,917 | 8,470 |
Revolvers [Member]
|
||||
Initiation Date | Nov. 16, 2010 | |||
Expiration Date | Nov. 16, 2014 | |||
Remaining Borrowing Capacity | 47,600 | 47,600 | ||
Interest Rate at Period End | 2.50% | 2.50% | ||
Revolvers Borrowing Capacity Standard [Member]
|
||||
Maximum Borrowing Capacity | 75,000 | 75,000 | ||
Revolvers Borrowing Capacity Annual Pay Down [Member]
|
||||
Maximum Borrowing Capacity | 30,000 | 30,000 | ||
Annual Seasonal Pay Down Duration | 60 days | |||
Term Loans [Member]
|
||||
Interest Rate at Period End | 5.25% | 5.25% | ||
Pre Payment Penalty Percent | 7.00% | |||
Annual Decrease Of Pre Payment Penalty | 1.00% | |||
Financial Standby Letter of Credit [Member]
|
||||
Letters of Credit Outstanding | $ 1,404 | $ 2,103 | $ 1,404 | $ 2,103 |
Litigation
|
9 Months Ended |
---|---|
Jun. 28, 2013
|
|
Litigation [Abstract] | |
Litigation | 12Litigation The Company is subject to various legal actions and proceedings in the normal course of business, including those related to commercial disputes, product liability, intellectual property and environmental matters. The Company is insured against loss for certain of these matters. Although litigation is subject to many uncertainties and the ultimate exposure with respect to these matters cannot be ascertained, management does not believe the final outcome of any pending litigation will have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.
On March 1, 2012, the Company received a $3,500 settlement payment resolving a claim with its insurance carriers.
|
Indebtedness (Debt Composition) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 28, 2013
|
Sep. 28, 2012
|
Jun. 29, 2012
|
---|---|---|---|
Indebtedness [Abstract] | |||
Revolvers | $ 8,998 | $ 3,490 | |
Term Loans | 8,221 | 8,456 | 8,531 |
Other | 245 | 404 | 455 |
Total Debt | 17,464 | 8,860 | 12,476 |
Less current portion of long term debt | 549 | 526 | 516 |
Less short term notes payable and revolving credit lines | 8,998 | 3,490 | |
Total long-term debt | $ 7,917 | $ 8,334 | $ 8,470 |
Accounts Receivable (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 28, 2013
|
Sep. 28, 2012
|
Jun. 29, 2012
|
---|---|---|---|
Accounts Receivable [Abstract] | |||
Accounts Receivable, Net | $ 75,894 | $ 40,673 | $ 77,012 |
Allowance for Doubtful Accounts Receivable | $ 3,752 | $ 4,172 | $ 3,726 |
Pension Plans (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit cost |
|
Stock-Based Compensation And Stock Ownership Plans (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2013
|
|||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation And Stock Ownership Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity |
|
||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-Vested Stock Activity |
|
Goodwill (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | |
---|---|---|
Jun. 28, 2013
|
Jun. 29, 2012
|
|
Goodwill [Abstract] | ||
Goodwill, Beginning Balance | $ 14,466 | $ 14,651 |
Jetboil acquisition | 6,475 | |
Amount attributable to movements in foreign currency rates | (3) | (290) |
Goodwill, Ending Balance | $ 20,938 | $ 14,361 |
Indebtedness (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt |
|
Acquisition (Provisional Amounts Adjustment) (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
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Jun. 28, 2013
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Acquisition [Abstract] | |
Financial assets | $ (33) |
Inventories | (159) |
Property, plant and equipment | 80 |
Identifiable intangible assets and goodwill | 3,865 |
Deferred tax liabilities | 4,257 |
Financial liabilities | $ (390) |
Warranties (Tables)
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9 Months Ended | |||||||||||||||||||||||||||||||||||
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Jun. 28, 2013
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Warranties [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule of Warranties |
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Segments of Business (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||
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Jun. 28, 2013
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Jun. 29, 2012
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Jun. 28, 2013
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Jun. 29, 2012
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Sep. 28, 2012
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Segment Reporting Information [Line Items] | |||||
Net sales | $ 129,772 | $ 128,595 | $ 349,146 | $ 337,497 | |
Operating profit (loss) | 16,133 | 14,222 | 30,297 | 24,484 | |
Total assets | 306,689 | 274,908 | 306,689 | 274,908 | 263,632 |
Marine Electronics [Member]
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Segment Reporting Information [Line Items] | |||||
Interunit transfers | 127 | 100 | 232 | 193 | |
Operating profit (loss) | 13,188 | 12,165 | 33,528 | 26,555 | |
Unaffiliated customers | 73,445 | 70,123 | 214,769 | 198,057 | |
Total assets | 125,868 | 108,692 | 125,868 | 108,692 | 97,261 |
Outdoor Equipment [Member]
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Segment Reporting Information [Line Items] | |||||
Interunit transfers | 20 | 25 | 46 | 55 | |
Operating profit (loss) | 2,061 | 1,522 | 2,017 | 2,101 | |
Unaffiliated customers | 14,802 | 12,197 | 33,312 | 27,894 | |
Total assets | 41,758 | 22,967 | 41,758 | 22,967 | 26,978 |
Watercraft [Member]
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Segment Reporting Information [Line Items] | |||||
Interunit transfers | 68 | 56 | 87 | 79 | |
Operating profit (loss) | 1,314 | 506 | (910) | 1,109 | |
Unaffiliated customers | 18,986 | 22,109 | 39,535 | 46,631 | |
Total assets | 39,770 | 44,260 | 39,770 | 44,260 | 32,766 |
Diving [Member]
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Segment Reporting Information [Line Items] | |||||
Interunit transfers | 271 | 93 | 749 | 398 | |
Operating profit (loss) | 1,901 | 2,631 | 3,982 | 4,239 | |
Unaffiliated customers | 22,304 | 23,958 | 61,124 | 64,509 | |
Total assets | 73,483 | 71,339 | 73,483 | 71,339 | 70,957 |
Corporate and Other [Member]
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Segment Reporting Information [Line Items] | |||||
Operating profit (loss) | (2,331) | (2,602) | (8,320) | (9,520) | |
Unaffiliated customers | 235 | 208 | 406 | 406 | |
Total assets | 25,810 | 27,650 | 25,810 | 27,650 | 35,670 |
Intersegment Elimination [Member]
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Segment Reporting Information [Line Items] | |||||
Interunit transfers | $ (486) | $ (274) | $ (1,114) | $ (725) |
Fair Value Measurements (Changes in Fair Value) (Details) (Other (Income) Expense [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Jun. 28, 2013
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Jun. 29, 2012
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Jun. 28, 2013
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Jun. 29, 2012
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Rabbi trust assets (Assets) [Member]
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value, (income) loss | $ (31) | $ 286 | $ (469) | $ (796) |
Foreign currency forward contracts [Member]
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value, (income) loss | $ (10) | $ 304 | $ 59 | $ 316 |
Pension Plans (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Jun. 28, 2013
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Jun. 29, 2012
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Jun. 28, 2013
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Jun. 29, 2012
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Pension Plans [Abstract] | ||||
Interest on projected benefit obligation | $ 249 | $ 259 | $ 748 | $ 777 |
Less estimated return on plan assets | 244 | 236 | 733 | 707 |
Amortization of unrecognized net income | 167 | 84 | 500 | 252 |
Total net periodic benefit cost | $ 172 | $ 107 | $ 515 | $ 322 |
Basis Of Presentation (Policy)
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9 Months Ended |
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Jun. 28, 2013
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Basis Of Presentation [Abstract] | |
Basis of Presentation | The Condensed Consolidated Financial Statements included herein are unaudited. In the opinion of management, these statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Johnson Outdoors Inc. and subsidiaries (collectively, the “Company”) as of June 28, 2013 and June 29, 2012, and the results of operations for the three and nine month periods then ended and cash flows for the nine month periods then ended. These Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 28, 2012 which was filed with the Securities and Exchange Commission on December 11, 2012. Due to seasonal variations and other factors, the results of operations for the three and nine months ended June 28, 2013 are not necessarily indicative of the results to be expected for the Company's full 2013 fiscal year. See “Seasonality” in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein for additional information. All monetary amounts, other than share and per share amounts, are stated in thousands.
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Accounts Receivable
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9 Months Ended |
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Jun. 28, 2013
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Accounts Receivable [Abstract] | |
Accounts Receivable | 2Accounts Receivable Accounts receivable are stated net of allowances for doubtful accounts of $3,752, $4,172 and $3,726 as of the periods ended June 28, 2013, September 28, 2012 and June 29, 2012, respectively. The increase in net accounts receivable to $75,894 as of June 28, 2013 from $40,673 as of September 28, 2012 is attributable to the seasonal nature of the Company's business. The determination of the allowance for doubtful accounts is based on a combination of factors. In circumstances where specific collection concerns on a receivable exist, a reserve is established to value the affected account receivable at an amount the Company believes will be collected. For all other customers, the Company recognizes allowances for doubtful accounts based on historical experience of bad debts as a percent of accounts receivable outstanding for each business unit. Uncollectible accounts are written off against the allowance for doubtful accounts after collection efforts have been exhausted. The Company typically does not require collateral on its accounts receivable.
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Pension Plans
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2013
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Pension Plans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | 5Pension Plans The Company has non-contributory defined benefit pension plans covering certain U.S. employees. Retirement benefits are generally provided based on the employees’ years of service and average earnings. Normal retirement age is 65, with provisions for earlier retirement. The components of net periodic benefit cost related to Company sponsored defined benefit plans for the three and nine month periods ended June 28, 2013 and June 29, 2012 were as follows:
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Earnings Per Share
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9 Months Ended |
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Jun. 28, 2013
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Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | 3Earnings Per Share (“EPS”) Net income or loss per share of Class A common stock and Class B common stock is computed using the two-class method. Grants of restricted stock which receive non-forfeitable dividends are required to be included as part of the basic weighted average share calculation under the two-class method. Holders of Class A common stock are entitled to cash dividends equal to 110% of all dividends declared and paid on each share of Class B common stock. The Company grants shares of unvested restricted stock in the form of Class A shares, which carry the same distribution rights as the Class A common stock described above. As such, the undistributed earnings for each period are allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive. Basic EPS Basic net income or loss per share is computed by dividing net income or loss allocated to Class A common stock and Class B common stock by the weighted-average number of shares of Class A common stock and Class B common stock outstanding, respectively. In periods with cumulative year to date net income and undistributed income, the undistributed income for each period is allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive. In periods where there is a cumulative year to date net loss or no undistributed income because distributions through dividends exceed net income, Class B shares are treated as anti-dilutive and, therefore, net losses are allocated equally on a per share basis among all participating securities. For the three and nine month periods ended June 28, 2013 and June 29, 2012, basic net income per share for Class A and Class B shares has been presented using the two class method as described above. Diluted EPS Diluted net income per share is computed by dividing allocated net income by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options, restricted stock units (“stock units” or “units”) and non-vested restricted stock. Anti-dilutive stock options, units and non-vested stock are excluded from the calculation of diluted EPS. The computation of diluted net income per share of Class A common stock assumes that Class B common stock is converted into Class A common stock. Therefore, diluted net income per share is the same for both Class A and Class B common shares. In periods where the Company reports a net loss, the effect of anti-dilutive stock options, units and non-vested stock is excluded and diluted loss per share is equal to basic loss per share. For the three and nine month periods ended June 28, 2013 and June 29, 2012, diluted net income per share reflects the effect of dilutive stock options and units and assumes the conversion of Class B common stock into Class A common stock. Stock options that could potentially dilute earnings per share in the future which were not included in the fully diluted computation because they would have been anti-dilutive totaled 0 and 5,850 for the three months ended June 28, 2013 and June 29, 2012, respectively, and 0 and 5,850 for the nine months ended June 28, 2013 and June 29, 2012, respectively. Non-vested stock that could potentially dilute earnings per share in the future which were not included in the fully diluted computation because they would have been anti-dilutive totaled 386,409 and 496,185 shares for the three months ended June 28, 2013 and June 29, 2012, respectively, and 413,633 and 491,923 shares for the nine months ended June 28, 2013 and June 29, 2012, respectively.
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Stock-Based Compensation And Stock Ownership Plans (Stock Option Activity) (Details) (Stock Options [Member], USD $)
In Thousands, except Share data, unless otherwise specified |
9 Months Ended |
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Jun. 28, 2013
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Stock Options [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Stock Options Outstanding and Exercisable, Beginning Balance | 23,366 |
Number of Stock Options Exercised | (8,300) |
Number of Stock Options Outstanding and Exercisable, Ending Balance | 15,066 |
Weighted Average Exercise Price for Stock Options Outstanding and Exercisable, Beginning Balance | $ 15.39 |
Weighted Average Exercise Price for Stock Options Exercised | $ 10.35 |
Weighted Average Exercise Price for Stock Options Outstanding and Exercisable, Ending Balance | $ 18.16 |
Weighted Average Remaining Contractual Term (Years) | 1 year 6 months |
Aggregate Intrinsic Value, Ending Balance | $ 97 |
Income Taxes (Tables)
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9 Months Ended | ||||||||||||||||||
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Jun. 28, 2013
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Income Taxes [Abstract] | |||||||||||||||||||
Summary of Income Tax Examinations |
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Acquisition (Tables)
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2013
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Schedule of Provisional Amount Adjustments |
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Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination |
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Jetboil Inc [Member]
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Schedule of Assets Acquired and Liabilities Assumed |
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Schedule Of Acquiree Net Sales and Operating Profit |
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Segments Of Business (Tables)
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Jun. 28, 2013
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Segments Of Business [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments of Business |
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Litigation (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
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Jun. 29, 2012
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Litigation [Abstract] | |
Litigation settlement recovery | $ 3,500 |