Strategies focus on sustainability and growth
Knowing that the outdoor recreational industry is particularly volatile in uncertain economic times, Johnson Outdoors is committed to act as necessary to preserve our organization’s long-term sustainability. We have moved decisively to increase operational flexibility, addressing the ebb and flow of our markets. Targeted cost savings programs and spending reductions already underway are highly strategic, intended to scale our cost structure to the current environment while maintaining our competitive position in the coming year and beyond. Key elements of these plans are:
- $20 million in cost-saving projects
- 26 percent reduction in capital expenditures
- 12 percent reduction in peak working capital
Even as we scale back our cost structure, we remain focused on leveraging our marketing and innovation expertise to create consumer demand and drive increased volume. We have tremendous brand equities that held or gained share throughout 2008, thanks to innovative new products. This innovation is and will be the heart of Johnson Outdoors.
We are committed to protecting profitability and enhancing cash flow. We believe in the future of Johnson Outdoors, and are doing the right things to ensure we maintain our market leadership positions and prepare for growth once the economy and marketplace rebound.
Helen Johnson-Leipold
Chairman & Chief Executive Officer
David W. Johnson
Vice President & Chief Financial Officer
| 2005 | 2006 | 2007 | |
|---|---|---|---|
| Net Sales | $380,690 | $395,790 | $432,060 |
| Gross Profit | $156,354 | $165,216 | $174,883 |
| Operating Profit | $15,644 | $20,625 | $17,939 |
| Diluted Earnings Per Common Share | $0.81 | $0.95 | $1.00 |
| Diluted Average Common Shares Outstanding | 8,795 | 9,161 | 9,254 |
| Capitalization | |||
| Total Debt | $50,800 | $37,807 | $42,806 |
| Shareholders' Equity | $166,434 | $180,881 | $200,165 |
| Total Debt to Total Capitalization | 23.4% | 17.3% | 17.6% |
In its filings with the U.S. Securities & Exchange Commission, Johnson Outdoors Inc. and its auditors reported that the Company maintained effective internal controls over its financial reporting as of September 28, 2007.