Johnson Outdoors announced a double-digit increase in net income on slightly higher sales for fiscal 2015.
Article continues below
Total net sales increased 1 percent to $430.5 million versus $425.4 million in the previous fiscal year, despite a $10.8 million negative impact (or 2.5 percent) from unfavorable currency translation.
New products across the company's Minn Kota, Jetboil and Old Town brands more than offset the impact of challenging conditions on dive equipment revenue. Key contributing factors in the year-over-year comparison were:
Strong new product performance across key channels drove record sales in Minn Kota and a 5 percent uptick in Marine Electronics revenue overall.
A surge in Jetboil sales, which more than offset declines in commercial and military tent sectors, led to modest growth in Outdoor Gear revenue.
Growth in Old Town almost overcame the negative effect of last year's strategic exit from non-profitable international markets, resulting in a slight 1 percent year-over-year dip in Watercraft sales.
Diving revenue contracted 9%, or $7.3 million, due to foreign currency translation and was flat year over year on a constant currency basis.
Operating profit grew 7 percent to $17.9 million versus $16.7 million in the prior fiscal year due primarily to increased sales volume and higher gross margins. Foreign currency fluctuations negatively impacted operating profit by more than $2.0 million in fiscal 2015.
One-time charges in fiscal 2014 of $6.9 million were more than offset by non-recurring legal costs of $7.3 million in the current year related to litigation brought by the company asserting infringement of its patented side scan sonar technology by a competitor.
Net income for the fiscal year rose 16 percent to $10.6 million, or $1.06 per diluted share, versus $9.1 million, or $0.90 per diluted share in fiscal 2014. The company's effective tax rate was 33 percent compared with a 48 percent effective tax rate in the prior year.
In connection with the patent litigation, on November 18, 2015 Johnson Outdoors announced the International Trade Commission (ITC) had affirmed that Garmin International, Inc. Side Vu sonars infringed a company side scan sonar patent used in some Humminbird fishfinders, and has issued a limited exclusion order barring import, sale or distribution of Garmin's infringing SideVü sonar systems and components.
The ITC orders will go into effect pending the mandatory review by the U.S. Trade Representative.
Due to the seasonality of the warm-weather outdoor recreational equipment industry, the company's fourth quarter results historically reflect an industry-wide slowing of sales and production.
Total sales during the quarter increased 1 percent to $85.7 million versus $84.9 million in the fourth fiscal quarter of 2014 due to strong growth in both Marine Electronics and Outdoor Gear units.
Operating profit increased year-over-year to $1.1 million this quarter compared to an operating loss of ($1.3 million) in the prior year fourth quarter due largely to lower operating expenses in the current year quarter.
Net income in the fourth quarter was $1.2 million, or $0.12 per diluted share, compared to a net loss of ($0.8 million,) or ($0.08) per diluted share in the prior year fourth quarter. ■