Reaping the benefits of our strategic plan We are pleased to report increased revenues and earnings for fiscal 2010. Operating profit rose substantially thanks to company-wide sustained cost reduction initiatives initiated in 2009. Net income advanced to $6.5 million or $0.68 per diluted share in 2010, versus a net loss of $9.7 million or ($1.06) per diluted share in fiscal 2009. Significant improvement in operating efficiency enabled us to grow profits faster than sales, a key objective of our strategic plan. The strength of our balance sheet is reflected in our having ended fiscal 2010 with debt at an all-time low and a $19 million dollar improvement in cash flow year-over-year. This year's revenue growth outpaced our markets. We gained share and outperformed the competition. In short, the aggressive strategic plan we launched in December 2008 has transformed Johnson Outdoors, enhancing our competitiveness and profitability. While we expect the outdoor recreation industry to continue its recovery, we are committed to focused, disciplined execution of our three-year strategic plan. It’s our key to success in both up and down markets. Thus, we will carefully manage inventories to keep working capital in check while helping to ensure our ability to meet marketplace demand. Our plan calls for ongoing streamlining, increasing flexibility while maintaining market leadership. Based on leading economic indicators, we expect fiscal 2011 to be a challenging year. Our priorities include: We are excited by the transformation of Johnson Outdoors and confident in our strategies to maintain our market leadership position, enhance shareholder value and deliver long-term, profitable growth.
Helen Johnson-Leipold David W. Johnson
Chairman & Chief Executive Officer Vice President & Chief Financial Officer
| 2008 | 2009 | 2010 | |
|---|---|---|---|
| Net Sales | $420,789 | $356,523 | $382,432 |
| Gross Profit | $159,551 | $132,782 | $153,523 |
| Operating Profit (Loss) | ($38,053) | $ 272 | $ 14,554 |
| Diluted Earnings (Loss) Per Common Share | ($7.81) | ($1.06) | $ 0.69 |
| Diluted Average Common Shares Outstanding | 9,093 | 9,165 | 9,267 |
| Capitalization | |||
| Total Debt | $ 60,003 | $ 31,563 | $ 23,810 |
| Shareholders' Equity | $122,284 | $115,825 | $126,369 |
| Total Debt to Total Capitalization | 32.9% | 21.4% | 15.8 % |
(dollar and numerical values in thousands except for per share data)
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 October 1, 2010.