Johnson Outdoors has informed the public in a filing with U.S. Securities and Exchange Commission that it has paid $16 million for the acquisition for Jetboil, the brand of stoves and cooking equipment for outdoor activities. That corresponds to eleven times the operating profit of $1.5 million projected for Jetboil in 2013. Johnson acquired Jetboil with effect from Nov. 14
Jetboil is expected to generate sales of $10 million in Johnson's 2012/13 fiscal year, ending next September. In its own fiscal year, which corresponds to the calendar year, Jetboil had unaudited sales of some $11.5 million in the ten months ended Oct. 31. In 2011, the company had an operating profit of $1.2 million on sales of $10.8 million.
The acquisition is expected to help Johnson to increase its penetration of outdoor specialty stores, notably with its own Eureka tents, and to access some of Jetboil's foreign distributors. In turn, Jetboil's products may sit well with the fish finders and other fishing-related products of Johnson in the fishing tackle and diving retail circuits.
Meanwhile, Johnson Outdoors reported a sales increase of 1.2 percent to $412.3 million for its own fiscal year, ended Sept. 28, compared with $407.4 million in fiscal 2011, due to record sales in Marine Electronics that more than offset declines in other units. On a constant currency basis, net sales were 2.5 percent above the previous year. More than 45 percent of total sales were generated by the launch of successful new products, the company said.
The net income for the year was down to $10.1 million from $32.6 million in the prior year. Pre-tax income was 62.7 percent higher, but a significantly higher effective tax rate led to the overall decline in net profits. Outdoor Gear revenues declined by 9.1 percent due to a significant drop in U.S. military spending and the division's exit from non-strategic consumer camping accounts.
For the fourth quarter, total net sales declined by 3.3 percent compared with the prior year's quarter. A net loss of $3.2 million was registered in the quarter, against net income of $17.3 million in the same period a year ago, due primarily to the reversal of the company's tax valuation allowance. On an adjusted basis, the group would have suffered a net loss of $4.6 million in the fourth quarter of 2011. The company said that its fourth-quarter results reflected an industry-wide slowing of sales and production, due to the seasonality of warm-weather outdoor recreational products.
Under a three-year business plan that ended last September, Johnson has been focusing its efforts on strengthening operations and enhancing market performance against the backdrop of a gradual recovery of outdoor recreation markets. Looking ahead to 2015, the company says it plans to focus investments on sustaining leadership in fishing electronics, maintaining positive momentum in core dive equipment segments, and regaining leadership in specialty camping and paddling channels.