In the week before this report went to publication, Johnson Outdoors, Inc. announced the strategic decision to exit its Eureka product lines related to camping. In the nine months ending June 2023, the camping segment contributed $36.9 million to the top-line or 6.5% of total sales. Operating profit for the segment was $4.9 million. Book value of assets for the camping segment was $61.9 million.
Management noted a refocus on the outdoor cooking segment in all its markets in the U.S., Europe, Canada and Pacific Basin. The Company’s Jetboil product line is extensive, providing everything from simple trailware to a full backcountry kitchen. Customers can make a quick cup of coffee on the trail, cook a hot lunch or prepare a banquet with fresh caught fish or game and all the trimmings.
In the first nine months of the current fiscal year Johnson Outdoor reported $567.5 million in total sales, well above the same period in the previous year. Unfortunately, profit margins are under pressure from higher product costs and increase marketing and sales expenses. Operating profits slipped to $34.3 million in the nine-month period compared to $53.0 million a year ago. The Company generated $45.2 million in operating cash flow largely on favorable changes in working capital.
Johnson Outdoor has no long-term debt. Total liabilities of $185.0 million are related to operating activities such as credit with suppliers and commitments to employees. The Company does have access to a revolving line of credit, which current has a zero balance outstanding on the $75 million facility.
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