[
X ]
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
[____]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Wisconsin
|
39-1536083
|
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification No.)
|
Title
of Each Class
|
Name
of Exchange on Which Registered
|
|
Class
A Common Stock, $.05 par value per share
|
NASDAQ
Global MarketSM
|
Large
Accelerated Filer
|
[ ]
|
Accelerated
Filer
|
[X]
|
Non-Accelerated
Filer
|
[ ]
|
Smaller
Reporting Company
|
[ ]
|
TABLE
OF CONTENTS
|
Page
|
|
Business
|
1
|
|
Risk
Factors
|
5
|
|
Unresolved
Staff Comments
|
8
|
|
Properties
|
9
|
|
Legal
Proceedings
|
10
|
|
Submission
of Matters to a Vote of Security Holders
|
10
|
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
10
|
|
Selected
Consolidated Financial Data
|
12
|
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
14
|
|
Quantitative
and Qualitative Disclosures about Market Risk
|
26
|
|
Financial
Statements and Supplementary Data
|
26
|
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
26
|
|
Controls
and Procedures
|
27
|
|
Other
Information
|
28
|
|
Directors,
and Executive Officers and Corporate Governance
|
28
|
|
Executive
Compensation
|
28
|
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
28
|
|
Certain
Relationships and Related Transactions, and Director
Independence
|
29
|
|
Principal
Accountant Fees and Services
|
29
|
|
Exhibits
and Financial Statement Schedules
|
30
|
|
Signatures
|
31
|
|
Exhibit
Index
|
32
|
|
Consolidated
Financial Statements
|
F-5
|
ITEM
1.
|
BUSINESS
|
Year
Ended
|
||||||||||||||||||||||||
October
3, 2008
|
September
28, 2007
|
September
29, 2006
|
||||||||||||||||||||||
Quarter
Ended
|
Net
Sales
|
Operating
Profit
(Loss)
|
Net
Sales
|
Operating
Profit
(Loss)
|
Net
Sales
|
Operating
Profit
(Loss)
|
||||||||||||||||||
December
|
18 | % | (12 | )% | 17 | % | (11 | )% | 19 | % | (1 | )% | ||||||||||||
March
|
29 | 10 | 28 | 23 | 27 | 38 | ||||||||||||||||||
June
|
34 | 38 | 35 | 74 | 34 | 62 | ||||||||||||||||||
September
|
19 | (136 | ) | 20 | 14 | 20 | 1 | |||||||||||||||||
100 | % | (100 | )% | 100 | % | 100 | % | 100 | % | 100 | % |
ITEM
1A.
|
RISK
FACTORS
|
·
|
the
timing of our announcements or those of our competitors concerning
significant product developments, acquisitions or financial
performance;
|
·
|
fluctuation
in our quarterly operating results;
|
·
|
substantial
sales of our common stock;
|
·
|
general
stock market conditions; or
|
·
|
other
economic or external factors.
|
·
|
certain
assets of Computrol, Inc. on October 3, 2005, including, without
limitation certain intellectual property used in its
business;
|
·
|
Lendal
Products Ltd. on October 3, 2006, including, without limitation certain
intellectual property used in its
business;
|
·
|
Seemann
Sub GmbH & Co. KG on April 2, 2007, including, without limitation
certain intellectual property used in its business;
and
|
·
|
Geonav
S.r.l. on November 16, 2007, including without limitation certain
intellectual property used in its business.
|
·
|
the
acquired business may experience losses which could adversely affect
our
profitability;
|
·
|
unanticipated
costs relating to the integration of acquired businesses may increase
our
expenses;
|
·
|
possible
failure to obtain any necessary consents to the transfer of licenses
or
other agreements of the acquired
company;
|
·
|
possible
failure to maintain customer, licensor and other relationships after
the
closing of the transaction of the acquired
company;
|
·
|
difficulties
in achieving planned cost-savings and synergies may increase our
expenses;
|
·
|
diversion
of our management’s attention could impair their ability to effectively
manage our other business operations;
and
|
·
|
unanticipated
management or operational problems or liabilities may adversely affect
our
profitability and financial
condition.
|
·
|
incur
additional debt;
|
·
|
create
liens on our assets or make
guarantees;
|
·
|
make
certain investments or loans;
|
·
|
pay
dividends; or
|
·
|
dispose
of or sell assets or enter into a merger or similar
transaction.
|
ITEM
1B.
|
UNRESOLVED
STAFF COMMENTS
|
ITEM
2.
|
PROPERTIES
|
Alpharetta,
Georgia (Marine Electronics)
|
Antibes,
France (Diving)
|
Barcelona,
Spain (Diving)
|
Basingstoke,
Hampshire, England (Diving)
|
Batam,
Indonesia* (Diving and Outdoor Equipment)
|
Binghamton,
New York* (Outdoor Equipment)
|
Brignais,
France (Watercraft)
|
Brussels,
Belgium (Diving)
|
Burlington,
Ontario, Canada (Marine Electronics, Outdoor Equipment)
|
Chai
Wan, Hong Kong (Diving)
|
Chatswood,
Australia (Diving)
|
El
Cajon, California (Diving)
|
Eufaula,
Alabama* (Marine Electronics)
|
Ferndale,
Washington* (Watercraft)
|
Genoa,
Italy* (Diving)
|
Great
Yarmouth, Norfolk, United Kingdom (Watercraft)
|
Hallwil,
Switzerland (Diving)
|
Henggart,
Switzerland (Diving)
|
Mankato,
Minnesota* (Marine Electronics)
|
Napier,
New Zealand* (Watercraft)
|
Old
Town, Maine* (Watercraft)
|
Silverdale,
New Zealand* (Watercraft)
Viareggio,
Italy (Marine Electronics)
|
Wendelstein,
Germany (Diving)
|
Yokohama,
Japan (Diving)
|
ITEM
3.
|
LEGAL
PROCEEDINGS
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
ITEM
5.
|
MARKET
FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
|||||||||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||||||||
Stock
prices:
|
||||||||||||||||||||||||||||||||
High
|
$ | 23.50 | $ | 19.13 | $ | 22.50 | $ | 18.83 | $ | 17.77 | $ | 20.25 | $ | 16.06 | $ | 23.91 | ||||||||||||||||
Low
|
21.44 | 17.06 | 16.00 | 17.00 | 15.40 | 18.02 | 12.40 | 17.00 |
·
|
A
cash dividend declared on June 14, 2007, with a record date of July
12,
2007, payable on July 26, 2007 of $0.055 per share to Class A common
stockholders and $0.05 per share to Class B common
stockholders.
|
·
|
A
cash dividend declared on September 19, 2007, with a record date
of
October 11, 2007, payable on October 25, 2007 of $0.055 per share
to Class
A common stockholders and $0.05 per share to Class B common
stockholders.
|
·
|
A
cash dividend declared on December 7, 2007, with a record date of
January
10, 2008, payable on January 25, 2008 of $0.055 per share to Class
A
common stockholders and $0.05 per share to Class B common
stockholders.
|
·
|
A
cash dividend declared on February 28, 2008, with a record date of
April
10, 2008, payable on April 24, 2008 of $0.055 per share to Class
A common
stockholders and $0.05 per share to Class B common
stockholders.
|
·
|
A
cash dividend declared on May 28, 2008, with a record date of July
10,
2008, payable on July 24, 2008 of $0.055 per share to Class A common
stockholders and $0.05 per share to Class B common
stockholders.
|
·
|
A
cash dividend declared on October 1, 2008, with a record date of
October
16, 2008, payable on October 30, 2008 of $0.055 per share to Class
A
common stockholders and $0.05 per share to Class B common
stockholders.
|
·
|
Pursuant
to the Company’s revolving credit agreement, dated as of October 7, 2005,
by and among the Company, the subsidiary borrowers from time to time
parties thereto and JPMorgan Chase Bank N.A., the Company is limited
in
the amount of restricted payments (primarily dividends and purchases
of
treasury stock) made during each fiscal year. The limitation was
approximately $27 million for the fiscal year ending October 3,
2008.
|
·
|
The
Company’s Articles of Incorporation provide that no dividend, other than
a
dividend payable in shares of the Company’s common stock, may be declared
or paid upon the Class B common stock unless such dividend is declared
or
paid upon both classes of common stock. Whenever a dividend (other
than a
dividend payable in shares of Company common stock) is declared or
paid
upon any shares of Class B common stock, at the same time there must
be
declared and paid a dividend on shares of Class A common stock equal
in
value to 110% of the amount per share of the dividend declared and
paid on
shares of Class B common stock. Whenever a dividend is payable in
shares
of Company common stock, such dividend must be declared or paid at
the
same rate on the Class A common stock and the Class B common
stock.
|
10/3/03
|
10/1/04
|
9/30/05
|
9/29/06
|
9/28/07
|
10/3/08
|
|
Johnson
Outdoors
|
100.00
|
142.96
|
123.41
|
128.07
|
160.85
|
93.21
|
NASDAQ Composite |
100.00
|
107.74
|
123.03
|
131.60
|
158.88
|
119.05
|
Russell 2000 Index |
100.00
|
118.77
|
140.09
|
154.00
|
173.00
|
147.94
|
Peer Group |
100.00
|
145.24
|
134.04
|
110.69
|
94.86
|
57.47
|
Year
Ended
|
(thousands,
except per share data)
|
October
3
2008
|
(6)
|
September
28
2007
|
(7)
|
September
29
2006
|
(8)
|
September
30
2005
|
October
1
2004
|
||||||||||||
Operating
Results(1)
|
||||||||||||||||||||
Net
sales
|
$ | 420,789 | $ | 430,604 | $ | 393,950 | $ | 377,146 | $ | 351,813 | ||||||||||
Gross
profit
|
159,551 | 175,496 | 165,277 | 155,678 | 146,511 | |||||||||||||||
Operating
expenses (2)
|
197,604 | 155,470 | 141,918 | 137,216 | 127,813 | |||||||||||||||
Operating
(loss) profit
|
(38,053 | ) | 20,026 | 23,359 | 18,462 | 18,698 | ||||||||||||||
Interest
expense
|
5,695 | 5,162 | 4,989 | 4,792 | 5,283 | |||||||||||||||
Other
expense (income)
|
549 | (931 | ) | (128 | ) | (1,250 | ) | (670 | ) | |||||||||||
(Loss)
Income before income taxes
|
(44,297 | ) | 15,795 | 18,498 | 14,920 | 14,085 | ||||||||||||||
Income
tax expense (3)
|
24,178 | 5,246 | 8,061 | 6,044 | 5,806 | |||||||||||||||
(Loss)
Income from continuing operations
|
(68,475 | ) | 10,549 | 10,437 | 8,876 | 8,279 | ||||||||||||||
(Loss)
Income from discontinued operations
|
(2,559 | ) | (1,315 | ) | (1,722 | ) | (1,775 | ) | 410 | |||||||||||
Net
(Loss) Income
|
$ | (71,034 | ) | $ | 9,234 | $ | 8,715 | $ | 7,101 | $ | 8,689 | |||||||||
Balance
Sheet Data
|
||||||||||||||||||||
Current
assets (4)
|
$ | 189,714 | $ | 205,221 | $ | 185,290 | $ | 186,591 | $ | 194,847 | ||||||||||
Total
assets
|
255,069 | 319,679 | 284,227 | 283,326 | 293,719 | |||||||||||||||
Current
liabilities (5)
|
55,386 | 66,260 | 57,651 | 55,457 | 59,115 | |||||||||||||||
Long-term
debt, less current maturities
|
60,000 | 10,006 | 20,807 | 37,800 | 50,797 | |||||||||||||||
Total
debt
|
60,003 | 42,806 | 37,807 | 50,800 | 67,019 | |||||||||||||||
Shareholders’
equity
|
122,284 | 200,165 | 180,881 | 166,434 | 160,644 | |||||||||||||||
Common
Share Summary
|
||||||||||||||||||||
Earnings
per share, continuing operations – Dilutive:
|
||||||||||||||||||||
Class
A
|
$ | (7.53 | ) | $ | 1.14 | $ | 1.14 | $ | 1.01 | $ | 0.94 | |||||||||
Class
B
|
$ | (7.53 | ) | $ | 1.14 | $ | 1.14 | $ | 1.01 | $ | 0.94 | |||||||||
Net
earnings per share – Dilutive:
|
||||||||||||||||||||
Class
A
|
$ | (7.81 | ) | $ | 1.00 | $ | 0.95 | $ | 0.81 | $ | 0.99 | |||||||||
Class
B
|
$ | (7.81 | ) | $ | 1.00 | $ | 0.95 | $ | 0.81 | $ | 0.99 | |||||||||
Cash
dividends per share:
|
||||||||||||||||||||
Class
A
|
$ | 0.22 | $ | 0.11 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||
Class
B
|
$ | 0.20 | $ | 0.10 | $ | 0.00 | $ | 0.00 | $ | 0.00 |
(1)
|
The
year ended October 3, 2008 included 53 weeks. All other years include
52
weeks.
|
(2)
|
The
year ended October 3, 2008 includes goodwill and other impairment
charges
of $41.0 million.
|
(3)
|
The
year ended October 3, 2008 includes a deferred tax asset valuation
allowance of $29.5 million.
|
(4)
|
Includes
cash and cash equivalents of $41,791, $39,232, $51,689, $72,111 and
$69,572, as of the years ended 2008, 2007, 2006, 2005 and 2004,
respectively.
|
(5)
|
Excluding
short-term debt and current maturities of long-term
debt.
|
(6)
|
The
results in 2008 contain approximately ten months of operating results
of
the acquired Geonav business and a full year of operating results
of the
acquired Seemann business.
|
(7)
|
The
results in 2007 contain a full year of operating results of the acquired
Lendal Products Ltd. business and six months of operating results
of the
acquired
Seemann business.
|
(8)
|
The
results in 2006 contain a full year of operating results of the acquired
Cannon/Bottom Line business.
|
ITEM
7.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
(millions,
except per share data)
|
2008
|
(2) |
2007
|
(3) |
2006
|
|||||||
Operating
Results
|
|
|||||||||||
Net
sales
|
$ |
420.8
|
$ |
430.6
|
$ |
394.0
|
||||||
Gross
profit
|
159.6
|
|
175.5
|
165.3
|
||||||||
Impairment
charges
|
41.0
|
—
|
—
|
|||||||||
Other
operating expenses
|
156.7
|
155.5
|
141.9
|
|||||||||
Operating
(loss) profit
|
(38.1
|
) |
20.0
|
|
23.4
|
|||||||
Interest
expense
|
5.7
|
5.2
|
5.0
|
|||||||||
(Loss)
income from continuing operations
|
(68.5
|
) |
10.5
|
10.4
|
||||||||
Net
(loss) income (1)
|
(71.0
|
) |
9.2
|
8.7
|
(millions)
|
2008
|
2007
|
2006
|
|||||||||
Net
sales:
|
||||||||||||
Marine
Electronics
|
$ | 186.7 | $ | 198.0 | $ | 164.5 | ||||||
Outdoor
Equipment
|
48.3 | 55.9 | 65.9 | |||||||||
Watercraft
|
88.1 | 88.8 | 85.5 | |||||||||
Diving
|
98.2 | 88.7 | 78.5 | |||||||||
Other/corporate/eliminations
|
(0.5 | ) | (0.8 | ) | (0.4 | ) | ||||||
Total
|
$ | 420.8 | $ | 430.6 | $ | 394.0 | ||||||
Operating
profit (loss):
|
||||||||||||
Marine
Electronics
|
$ | 0.4 | $ | 22.9 | $ | 21.6 | ||||||
Outdoor
Equipment
|
2.0 | 8.5 | 8.2 | |||||||||
Watercraft
|
(8.3 | ) | (4.2 | ) | 0.2 | |||||||
Diving
|
(21.5 | ) | 6.9 | 5.6 | ||||||||
Other/corporate/eliminations
|
(10.7 | ) | (14.1 | ) | (12.2 | ) | ||||||
Total
|
$ | (38.1 | ) | $ | 20.0 | $ | 23.4 |
(millions)
|
2008
|
2007
|
2006
|
|||||||||
Cash
provided by (used for):
|
||||||||||||
Operating
activities
|
$ | 4.9 | $ | 0.6 | $ | 7.5 | ||||||
Investing
activities
|
(18.2 | ) | (22.0 | ) | (18.6 | ) | ||||||
Financing
activities
|
15.5 | 5.3 | (12.8 | ) | ||||||||
Effect
of exchange rate changes
|
0.4 | 3.6 | 3.5 | |||||||||
Increase
(decrease) in cash and temporary cash investments
|
$ | 2.6 | $ | (12.5 | ) | $ | (20.4 | ) |
(millions)
|
2008
|
2007
|
2006
|
|||||||||
Current
assets (1)
|
$ | 189.7 | $ | 205.2 | $ | 185.3 | ||||||
Current
liabilities (2)
|
55.4 | 66.3 | 57.7 | |||||||||
Working
capital (2)
|
$ | 134.3 | $ | 138.9 | $ | 127.6 | ||||||
Current
ratio (2)
|
3.4:1
|
3.1:1
|
3.2:1
|
(1)
|
2008,
2007 and 2006 information includes cash and cash equivalents
of $41.8,
$39.2 and $51.7 million, respectively.
|
(2) | Excludes short-term debt and current maturities of long-term debt. |
(millions)
|
2008
|
2007
|
2006
|
|||||||||
Current
debt
|
$ | — | $ | 32.8 | $ | 17.0 | ||||||
Long-term
debt
|
60.0 | 10.0 | 20.8 | |||||||||
Total
debt
|
60.0 | 42.8 | 37.8 | |||||||||
Shareholders’
equity
|
122.3 | 200.2 | 180.9 | |||||||||
Total
capitalization
|
$ | 182.3 | $ | 243.0 | $ | 218.7 | ||||||
Total
debt to total capitalization
|
32.9 | % | 17.6 | % | 17.3 | % |
Payment
Due by Period
|
||||||||||||||||||||
(millions)
|
Total
|
Less
than
1
year
|
2-3
years
|
4-5
years
|
After
5
years
|
|||||||||||||||
Long-term
debt
|
$ | 60.0 | $ | — | $ | 60.0 | $ | — | $ | — | ||||||||||
Short-term
debt
|
— | — | — | — | — | |||||||||||||||
Operating
lease obligations
|
27.6 | 6.5 | 8.6 | 5.1 | 7.4 | |||||||||||||||
Open
purchase orders
|
47.1 | 47.1 | — | — | — | |||||||||||||||
Contractually
obligated interest payments
|
10.9 | 3.6 | 7.3 | — | — | |||||||||||||||
Total
contractual obligations
|
$ | 145.6 | $ | 57.2 | $ | 75.9 | $ | 5.1 | $ | 7.4 |
Estimated
Impact on
|
||
(millions)
|
Fair
Value
|
Income
Before
Income
Taxes
|
Interest
rate instruments
|
$
—
|
$
0.6
|
ITEM
7A.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM
8.
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA
|
ITEM
9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
ITEM
9A.
|
CONTROLS
AND PROCEDURES
|
(a)
|
Evaluation
of Disclosure Controls and
Procedures
|
(b)
|
Changes
in Internal Control over Financial
Reporting.
|
(c)
|
Management’s
Annual Report on Internal Control over Financial
Reporting
|
(d)
|
Attestation
Report of Independent Registered Public Accounting
Firm
|
ITEM
9B.
|
OTHER
INFORMATION
|
ITEM
10.
|
DIRECTORS,
EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM
11.
|
EXECUTIVE
COMPENSATION
|
ITEM
12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
Plan
Category
|
Number
of Common Shares to Be Issued Upon Exercise of Outstanding Options,
Warrants and Rights
|
Weighted-average
Exercise Price of Outstanding Options, Warrants and Rights
|
Number
of Common Shares Available for Future Issuance Under Equity Compensation
Plans
|
Equity
compensation plans approved by shareholders
|
271,043
|
$8.36
|
500,458
(1)
|
(1)
|
All
of the available shares under the 2003 Non-Employee Director Stock
Ownership Plan (104,817) and under the 2000 Long-Term Stock Incentive
Plan
(395,641) may be issued upon the exercise of stock options or granted
as
restricted stock, and, in the case of the 2000 Long-Term Stock Incentive
Plan, as share units. There are 55,764 shares available for issuance
under
the Johnson Outdoors Inc. 1987 Employees’ Stock Purchase Plan, as amended.
|
ITEM
13.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE
|
ITEM
14.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
ITEM
15.
|
EXHIBITS
AND FINANCIAL STATEMENT SCHEDULES
|
|
Financial
Statements
|
·
|
Management’s
Report on Internal Control over Financial
Reporting
|
·
|
Report
of Independent Registered Public Accounting Firm on Internal Control
over
Financial Reporting
|
·
|
Report
of Independent Registered Public Accounting Firm on Consolidated
Financial
Statements
|
·
|
Consolidated
Balance Sheets - October 3, 2008 and September 28,
2007
|
·
|
Consolidated
Statements of Operations - Years ended October 3, 2008, September
28, 2007
and September 29, 2006
|
·
|
Consolidated
Statements of Shareholders’ Equity - Years ended October 3, 2008,
September 28, 2007 and September 29,
2006
|
·
|
Consolidated
Statements of Cash Flows - Years ended October 3, 2008, September
28, 2007
and September 29, 2006
|
·
|
Notes
to Consolidated Financial
Statements
|
|
Financial
Statement Schedules
|
|
Exhibits
|
/s/
Helen P.
Johnson-Leipold
|
Chairman
and Chief Executive Officer
|
|
(Helen
P.
Johnson-Leipold)
|
and
Director
|
|
(Principal
Executive Officer)
|
||
/s/
Thomas F. Pyle,
Jr.
|
Vice
Chairman of the Board
|
|
(Thomas
F. Pyle,
Jr.)
|
and
Director
|
|
/s/
Terry E.
London
|
Director
|
|
(Terry
E.
London)
|
||
/s/
John
M. Fahey,
Jr.
|
Director
|
|
(John
M. Fahey,
Jr.)
|
||
/s/
W. Lee
McCollum
|
Director
|
|
(W.
Lee
McCollum)
|
||
/s/
Edward F. Lang,
III
|
Director
|
|
(Edward
F. Lang,
III)
|
||
/s/
David W.
Johnson
|
Vice
President and Chief Financial Officer
|
|
(David
W.
Johnson)
|
(Principal
Financial and Accounting
Officer)
|
Exhibit
|
Title
|
2
|
Agreement
and Plan of Merger, dated October 28, 2004, by and between JO Acquisition
Corp. and Johnson Outdoors Inc (Filed as Exhibit 2 to the Company’s Form
8-K dated October 28, 2004 and incorporated herein by
reference.)
|
3.1
|
Articles
of Incorporation of the Company as amended through February 17, 2000.
(Filed as Exhibit 3.1(a) to the Company’s Form 10-Q for the quarter ended
March 31, 2000 and incorporated herein by reference.)
|
3.2
|
Bylaws
of the Company as amended and restated through September 23, 2008.
|
4.1
|
Note
Agreement dated October 1, 1995. (Filed as Exhibit 4.1 to the Company’s
Form 10-Q for the quarter ended December 29, 1995 and incorporated
herein
by reference.)
|
4.2
|
First
Amendment dated October 11, 1996 to Note Agreement dated October
1, 1995.
(Filed as Exhibit 4.3 to the Company’s Form 10-Q for the quarter ended
December 27, 1996 and incorporated herein by
reference.)
|
4.3
|
Second
Amendment dated September 30, 1997 to Note Agreement dated October
1,
1995. (Filed as Exhibit 4.8 to the Company’s Form 10-K for the year ended
October 1, 1997 and incorporated herein by reference.)
|
4.4
|
Third
Amendment dated October 1, 1997 to Note Agreement dated October 1,
1995.
(Filed as Exhibit 4.9 to the Company’s Form 10-K for the year ended
October 1, 1997 and incorporated herein by reference.)
|
4.5
|
Fourth
Amendment dated January 10, 2000 to Note Agreement dated October
1, 1995.
(Filed as Exhibit 4.9 to the Company’s Form 10-Q for the quarter ended
March 31, 2000 and incorporated herein by reference.)
|
4.6
|
Fifth
Amendment dated December 13, 2001 to Note Agreement dated October
1, 1995.
(Filed as Exhibit 4.6 to the Company’s Form 10-K for the year ended
October 3, 2003 and incorporated herein by reference.)
|
4.7
|
Consent
and Amendment dated September 6, 2002 to Note Agreement dated October
1, 1995. (Filed as Exhibit 4.7 to the Company’s Form 10-K for the year
ended October 3, 2003 and incorporated herein by
reference.)
|
4.8
|
Note
Agreement dated as of September 15, 1997. (Filed as Exhibit 4.15
to the
Company’s Form 10-K for the year ended October 1, 1997 and incorporated
herein by reference.)
|
4.9
|
First
Amendment dated January 10, 2000 to Note Agreement dated September
15,
1997. (Filed as Exhibit 4.10 to the Company’s Form 10-Q for the quarter
ended March 31, 2000 and incorporated herein by
reference.)
|
4.10
|
Second
Amendment dated December 13, 2001 to Note Agreement dated September
15,
1997. (Filed as Exhibit 4.9 to the Company’s Form 10-K for the year ended
October 3, 2003 and incorporated herein by reference.)
|
4.11
|
Consent
and Amendment dated as of September 6, 2002 to Note Agreement dated
September 15, 1997. (Filed as Exhibit 4.11 to the Company’s Form 10-K for
the year ended October 3, 2003 and incorporated herein by
reference.)
|
4.12
|
Note
Agreement dated as of December 13, 2001. (Filed as Exhibit 4.12 to
the
Company’s Form 10-K for the year ended October 3, 2003 and incorporated
herein by reference.)
|
4.13
|
Consent
and Amendment dated of September 6, 2002 to Note Agreement dated as
of December 13, 2001. (Filed as Exhibit 4.15 to the Company’s Form 10-K
for the year ended October 3, 2003 and incorporated herein by
reference.)
|
4.14
|
Revolving
Credit Agreement, dated as of October 7, 2005, by and among Johnson
Outdoors Inc. and, among others, JPMorgan Chase Bank, N.A. (Filed
as
Exhibit 4.15 to the Company’s Form 10-Q for the quarter ended December 30,
2005 and incorporated herein by reference.)
|
9.1
|
Johnson
Outdoors Inc. Class B common stock Amended and Restated Voting Trust
Agreement, dated December 10, 2007 (Filed as Exhibit 99.54 to Amendment
No. 11 to the Schedule 13D filed by Helen P. Johnson-Leipold on December
10, 2007 and incorporated herein by reference.)
|
|
|
10.1 | Stock Purchase Agreement, dated as of January 12, 2000, by and between Johnson Outdoors Inc. and Berkley Inc. (Filed as Exhibit 2.1 to the Company’s Form 8-K dated March 31, 2000 and incorporated herein by reference.) |
10.2 | Amendment to Stock Purchase Agreement, dated as of February 28, 2000, by and between Johnson Outdoors Inc. and Berkley Inc. (Filed as Exhibit 2.2 to the Company’s Form 8-K dated March 31, 2000 and incorporated herein by reference.) |
10.3+ | Johnson Outdoors Inc. Amended and Restated 1986 Stock Option Plan. (Filed as Exhibit 10 to the Company’s Form 10-Q for the quarter ended July 2, 1993 and incorporated herein by reference.) |
10.4 | Registration Rights Agreement regarding Johnson Outdoors Inc. common stock issued to the Johnson family prior to the acquisition of Johnson Diversified, Inc. (Filed as Exhibit 10.6 to the Company’s Form S-1 Registration Statement No. 33-16998 and incorporated herein by reference.) |
10.5 | Registration Rights Agreement regarding Johnson Outdoors Inc. Class A common stock held by Mr. Samuel C. Johnson. (Filed as Exhibit 28 to the Company’s Form 10-Q for the quarter ended March 29, 1991 and incorporated herein by reference.) |
10.6+ | Form of Restricted Stock Agreement. (Filed as Exhibit 10.8 to the Company’s Form S-1 Registration Statement No. 33-23299 and incorporated herein by reference.) |
10.7+ | Form of Supplemental Retirement Agreement of Johnson Diversified, Inc. (Filed as Exhibit 10.9 to the Company’s Form S-1 Registration Statement No. 33-16998 and incorporated herein by reference.) |
10.8+ | Johnson Outdoors Retirement and Savings Plan. (Filed as Exhibit 10.9 to the Company’s Form 10-K for the year ended September 29, 1989 and incorporated herein by reference.) |
10.9+ | Form of Agreement of Indemnity and Exoneration with Directors and Officers. (Filed as Exhibit 10.11 to the Company’s Form S-1 Registration Statement No. 33-16998 and incorporated herein by reference.) |
10.10 | Consulting and administrative agreements with S. C. Johnson & Son, Inc. (Filed as Exhibit 10.12 to the Company’s Form S-1 Registration Statement No. 33-16998 and incorporated herein by reference.) |
10.11+ | Johnson Outdoors Inc. 1994 Long-Term Stock Incentive Plan. (Filed as Exhibit 4 to the Company’s Form S-8 Registration Statement No. 333-88091 and incorporated herein by reference.) |
10.12+ | Johnson Outdoors Inc. 1994 Non-Employee Director Stock Ownership Plan. (Filed as Exhibit 4 to the Company’s Form S-8 Registration Statement No. 333-88089 and incorporated herein by reference.) |
10.13+ | Johnson Outdoors Economic Value Added Bonus Plan (Filed as Exhibit 10.15 to the Company’s Form 10-K for the year ended October 1, 1997 and incorporated herein by reference.) |
10.14+ | Johnson Outdoors Inc. 2000 Long-Term Stock Incentive Plan. (Filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K dated July 29, 2005 and incorporated herein by reference.) |
10.15+ | Share Purchase and Transfer Agreement, dated as of August 28, 2002, by and between, among others, Johnson Outdoors Inc. and an affiliate of Bain Capital Fund VII-E (UK), Limited Partnership. (Filed as Exhibit 2.1 to the Company’s Form 8-K dated September 9, 2002 and incorporated herein by reference.) |
10.16+ | Johnson Outdoors Inc. Worldwide Key Executive Phantom Share Long-Term Incentive Plan (Filed as Exhibit 10.1 to the Company’s Form 10-Q dated March 28, 2003 and incorporated herein by reference.) |
10.17+ | Johnson Outdoors Inc. Worldwide Key Executives’ Discretionary Bonus Plan. (Filed as Exhibit 99.3 to the Company’s Current Report on Form 8-K dated July 29, 2005 and incorporated herein by reference.) |
10.18 | Stock Purchase Agreement by and between Johnson Outdoors Inc. and TFX Equities Incorporated. (Filed as Exhibit 2.1 to the Company’s Form 10-Q dated April 2, 2004 and incorporated herein by reference.) |
10.19 | Intellectual Property Purchase Agreement by and among Johnson Outdoors Inc., Technology Holding Company II and Teleflex Incorporated. (Filed as Exhibit 2.2 to the Company’s Form 10-Q dated April 2, 2004 and incorporated herein by reference.) |
10.20+ | Johnson Outdoors Inc. 1987 Employees’ Stock Purchase Plan as amended. (Filed as Exhibit 99.2 to the Company’s Current Report on Form 8-K dated July 29, 2005 and incorporated herein by reference.) |
10.21+ | Johnson Outdoors Inc. 2003 Non-Employee Director Stock Ownership Plan. (Filed as Exhibit 10.2 to the Company’s Form 10-Q dated April 2, 2004 and incorporated herein by reference.) |
10.22+ | Form of Restricted Stock Agreement under Johnson Outdoors Inc. 2003 Non-Employee Director Stock Ownership Plan. (Filed as Exhibit 4.2 to the Company’s Form S-8 Registration Statement No. 333-115298 and incorporated herein by reference.) |
10.23+ | Form of Stock Option Agreement under Johnson Outdoors Inc. 2003 Non-Employee Director Stock Ownership Plan. (Filed as Exhibit 10.2 to the Company’s Form S-8 Registration Statement No. 333-115298 and incorporated herein by reference.) |
10.24 | Amended and Restated Credit Term Loan Agreement (Term), dated as of January 2, 2009, among Johnson Outdoors, Inc., JPMorgan Chase Bank, N.A., as lender and agent, and the other lenders named therein (filed as Exhibit 99.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on January 2, 2009). |
10.25 | Amended and Restated Credit Agreement (Revolving), dated as of January 2, 2009, among Johnson Outdoors, Inc., JPMorgan Chase Bank, N.A., as lender and agent, and the other lenders named therein (filed as Exhibit 99.2 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on January 2, 2009). |
21 | Subsidiaries of the Company as of October 3, 2008. |
23 | Consent of Independent Registered Public Accounting Firm. |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a). |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a). |
32.1 (1) | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350. |
CONSOLIDATED
FINANCIAL STATEMENTS
|
||
Table
of Contents
|
Page
|
|
Management’s
Report on Internal Control over Financial Reporting
|
F-1
|
|
Report
of Independent Registered Public Accounting Firm on Internal Control
over
Financial Reporting
|
F-2
|
|
Report
of Independent Registered Public Accounting Firm on Consolidated
Financial
Statements
|
F-4
|
|
Consolidated
Balance Sheets
|
F-5
|
|
Consolidated
Statements of Operations
|
F-6
|
|
Consolidated
Statements of Shareholders’ Equity
|
F-7
|
|
Consolidated
Statements of Cash Flows
|
F-8
|
|
Notes
to Consolidated Financial Statements
|
F-9
|
(a)
|
pertain
to the maintenance of records that, in reasonable detail, accurately
and
fairly reflect the transactions and dispositions of the assets of
the
Company;
|
(b)
|
provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with generally
accepted
accounting principles, and that receipts and expenditures of the
Company
are being made only in accordance with authorizations of management
and
directors of the Company; and
|
(c)
|
provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s assets that
could have a material effect on the financial statements.
|
/s/ Helen P. Johnson-Leipold | /s/ David W. Johnson |
Helen
P. Johnson-Leipold
|
David
W. Johnson
|
Chairman
and Chief Executive Officer
|
Vice
President and Chief Financial
Officer
|
/s/ Ernst & Young LLP | |
Ernst
& Young LLP
|
|
Milwaukee,
Wisconsin
|
|
January
2, 2009
|
/s/ Ernst & Young LLP | |
Ernst
& Young LLP
|
|
Milwaukee,
Wisconsin
|
|
January
2, 2009
|
(thousands,
except share data)
|
October
3
2008
|
September
28
2007
|
||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 41,791 | $ | 39,232 | ||||
Accounts
receivable less allowance for doubtful
accounts
of $2,577 and $2,267, respectively
|
52,710 | 57,275 | ||||||
Inventories
|
85,999 | 87,726 | ||||||
Assets
held for sale
|
47 | 1,706 | ||||||
Deferred
income taxes
|
2,963 | 11,029 | ||||||
Other
current assets
|
6,204 | 8,253 | ||||||
Total
current assets
|
189,714 | 205,221 | ||||||
Property,
plant and equipment, net
|
39,077 | 36,406 | ||||||
Deferred
income taxes
|
594 | 13,097 | ||||||
Goodwill
|
14,085 | 51,454 | ||||||
Other
intangible assets, net
|
6,442 | 6,638 | ||||||
Other
assets
|
5,157 | 6,863 | ||||||
Total
assets
|
$ | 255,069 | $ | 319,679 | ||||
Liabilities
And Shareholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Short-term
notes payable
|
$ | — | $ | 22,000 | ||||
Current
maturities of long-term debt
|
3 | 10,800 | ||||||
Accounts
payable
|
24,674 | 23,051 | ||||||
Accrued
liabilities:
|
||||||||
Salaries,
wages and benefits
|
8,671 | 17,326 | ||||||
Accrued
discounts and returns
|
5,776 | 5,524 | ||||||
Accrued
interest payable
|
234 | 610 | ||||||
Income
taxes payable
|
1,318 | 2,192 | ||||||
Other
|
14,637 | 16,619 | ||||||
Liabilities
held for sale
|
76 | 938 | ||||||
Total
current liabilities
|
55,389 | 99,060 | ||||||
Long-term
debt, less current maturities
|
60,000 | 10,006 | ||||||
Deferred
income taxes
|
1,111 | — | ||||||
Retirement
benefits
|
6,774 | 2,402 | ||||||
Other
liabilities
|
9,511 | 8,046 | ||||||
Total
liabilities
|
132,785 | 119,514 | ||||||
Shareholders’
equity:
|
||||||||
Preferred
stock: none issued
|
— | — | ||||||
Common
stock:
|
||||||||
Class
A shares issued and outstanding: October 3, 2008, 8,006,569;
September 28, 2007, 7,949,617
|
400 | 397 | ||||||
Class
B shares issued and outstanding: October 3, 2008, 1,216,464;
September 28, 2007, 1,217,409
|
61 | 61 | ||||||
Capital
in excess of par value
|
57,873 | 56,835 | ||||||
Retained
earnings
|
53,171 | 126,253 | ||||||
Accumulated
other comprehensive income
|
10,779 | 16,619 | ||||||
Total
shareholders’ equity
|
122,284 | 200,165 | ||||||
Total
liabilities and shareholders’ equity
|
$ | 255,069 | $ | 319,679 |
Year
Ended
|
||||||||||
(thousands,
except per share data)
|
October
3
2008
|
September
28
2007
|
September
29
2006
|
|
|
|||||
Net
sales
|
$ | 420,789 |
$
|
430,604 | $ | 393,950 | ||||
Cost
of sales
|
261,238 | 255,108 | 228,673 | |||||||
Gross
profit
|
159,551 | 175,496 | 165,277 | |||||||
Operating
expenses:
|
||||||||||
Marketing
and selling
|
101,127 | 100,818 | 91,362 | |||||||
Administrative
management, finance and information systems
|
42,796 | 38,646 | 35,823 | |||||||
Research
and development
|
12,495 | 12,254 | 11,199 | |||||||
Goodwill
and other impairment charges
|
41,007 | — | — | |||||||
Litigation
settlement
|
— | 4,400 | — | |||||||
(Gains)
losses related to New York flood
|
— | (2,874 | ) | 1,500 | ||||||
Profit
sharing
|
179 | 2,226 | 2,034 | |||||||
Total
operating expenses
|
197,604 | 155,470 | 141,918 | |||||||
Operating
(loss) profit
|
(38,053 | ) | 20,026 | 23,359 | ||||||
Interest
income
|
(766 | ) | (738 | ) | (504 |
)
|
||||
Interest
expense
|
5,695 | 5,162 | 4,989 | |||||||
Other
expense (income), net
|
1,315 | (193 | ) | 376 | ||||||
(Loss)
income before income taxes
|
(44,297 | ) | 15,795 | 18,498 | ||||||
Income
tax expense
|
24,178 | 5,246 | 8,061 | |||||||
(Loss)
income from continuing operations
|
(68,475 | ) | 10,549 | 10,437 | ||||||
Loss
from discontinued operations, net of income tax benefit of $0,
$772 and $1,012 respectively
|
(2,559 | ) | (1,315 | ) | (1,722 |
)
|
||||
Net
(loss) income
|
$ | (71,034 | ) |
$
|
9,234 | $ | 8,715 | |||
Weighted
average common shares – Basic:
|
||||||||||
Class
A
|
7,876 | 7,848 | 7,771 | |||||||
Class
B
|
1,217 | 1,218 | 1,219 | |||||||
Dilutive
stock options and restricted stock
|
169 | 188 | 171 | |||||||
Weighted
average common shares – Dilutive
|
9,262 | 9,254 | 9,161 | |||||||
(Loss)
Income from continuing operations per common share –
Basic:
|
||||||||||
Class
A
|
$ | (7.53 | ) |
$
|
1.18 | $ | 1.18 | |||
Class
B
|
$ | (7.53 | ) |
$
|
1.06 | $ | 1.06 | |||
Loss
from discontinued operations per common share – Basic:
|
||||||||||
Class
A
|
$ | (0.28 | ) |
$
|
(0.15 | ) | $ | (0.20 |
)
|
|
Class
B
|
$ | (0.28 | ) |
$
|
(0.13 | ) | $ | (0.18 |
)
|
|
Net
(loss) income per common share – Basic:
|
||||||||||
Class
A
|
$ | (7.81 | ) |
$
|
1.03 | $ | 0.98 | |||
Class
B
|
$ | (7.81 | ) |
$
|
0.93 | $ | 0.88 | |||
(Loss)
income from continuing operations per common Class A and B share
–
Dilutive
|
$ | (7.53 | ) |
$
|
1.14 | $ | 1.14 | |||
Loss
from discontinued operations per common Class A and B share –
Dilutive
|
$ | (0.28 | ) |
$
|
(0.14 | ) | $ | (0.19 |
)
|
|
Net
(loss) income per common Class A and B share – Dilutive
|
$ | (7.81 | ) |
$
|
1.00 | $ | 0.95 | |||
Dividends
per share:
|
||||||||||
Class
A Common Stock
|
$ | 0.22 |
$
|
0.11 | $ | 0.00 | ||||
Class
B Common Stock
|
$ | 0.20 |
$
|
0.10 | $ | 0.00 |
(thousands)
|
CommonStock
|
Capital
in Excess of Par Value
|
Retaind
Earnings
|
Deferred
Compensation
|
TreasuryStock
|
Accumulated
Other Comprehensive Income (Loss)
|
Comprehensive
Income
(Loss)
|
||||||||||||||
Balance
at September 30, 2005
|
$ | 451 | $ | 55,279 | $ | 109,300 | $ | (598 | ) | $ | — | $ | 2,002 | $ | 3,719 | ||||||
Net
income
|
— | — | 8,715 | — | — | — | 8,715 | ||||||||||||||
Exercise
of stock
options (1)
|
— | 65 | — | — | — | — | — | ||||||||||||||
Issuance
of stock under employee stock purchase plan
|
1 | 109 | — | — | — | — | — | ||||||||||||||
Stock-based
compensation and award of restricted shares
|
2 | 604 | — | — | — | — | — | ||||||||||||||
Adoption
of SFAS 123 (R)
|
— | (598 | ) | — | 598 | — | — | ||||||||||||||
Translation
adjustment
|
— | — | — | — | — | 3,454 | 3,454 | ||||||||||||||
Additional
minimum
pension liability (2)
|
— | — | — | — | — | 1,497 | 1,497 | ||||||||||||||
Balance
at September 29, 2006
|
454 | 55,459 | 118,015 | — | — | 6,953 | 13,666 | ||||||||||||||
Net
income
|
— | — | 9,234 | — | — | — | 9,234 | ||||||||||||||
Dividends
declared
|
— | — | (996 | ) | — | — | — | — | |||||||||||||
Exercise
of stock
options (1)
|
1 | 591 | — | — | — | — | — | ||||||||||||||
Issuance
of stock under employee stock purchase plan
|
1 | 160 | — | — | — | — | — | ||||||||||||||
Stock-based
compensation and award of restricted shares
|
2 | 625 | — | — | — | — | — | ||||||||||||||
Translation
adjustment
|
— | — | — | — | — | 10,379 | 10,379 | ||||||||||||||
Additional
minimum
pension liability (2)
|
— | — | — | — | — | 45 | 45 | ||||||||||||||
Comprehensive
income
|
— | — | — | — | — | — | 19,658 | ||||||||||||||
Adoption
of SFAS
158(3)
|
— | — | — | — | — | (758 | ) | ||||||||||||||
Balance
at September 28, 2007
|
458 | 56,835 | 126,253 | — | — | 16,619 | |||||||||||||||
Net
loss
|
— | — | (71,034 | ) | — | — | — | (71,034 | ) | ||||||||||||
Dividends
declared
|
— | — | (2,003 | ) | — | — | — | — | |||||||||||||
Exercise
of stock
options (1)
|
1 | 154 | (45 | ) | — | 80 | — | — | |||||||||||||
Issuance
of stock under employee stock purchase plan
|
1 | 135 | — | — | — | — | — | ||||||||||||||
Stock-based
compensation and award of restricted shares
|
1 | 749 | — | — | — | — | — | ||||||||||||||
Translation
adjustment
|
— | — | — | — | — | (1,295 | ) | (1,295 | ) | ||||||||||||
Change
in pension
plans (2)
|
— | — | — | — | — | (1,786 | ) | (1,786 | ) | ||||||||||||
Purchase
of treasury stock at cost
|
— | — | — | — | (80 | ) | — | — | |||||||||||||
Cash
Flow Hedge
|
— | — | — | — | — | (2,759 | ) | (2,759 | ) | ||||||||||||
Comprehensive
income
|
— | — | — | — | — | — | $ | (76,874 | ) | ||||||||||||
Balance
at October 3, 2008
|
$ | 461 | $ | 57,873 | $ | 53,171 | $ | — | $ | — | $ | 10,779 |
(1)
|
Includes
tax benefit related to exercise of stock options of $29, $111 and
$25 for
2008, 2007 and 2006, respectively.
|
(2)
|
Net
of tax provision of $(705), $33 and $771 for 2008, 2007 and 2006,
respectively.
|
(3)
|
Net
of tax provision of $560 for 2007.
|
Year
Ended
|
||||||||||||
(thousands)
|
October
3
2008
|
September
28
2007
|
September
29
2006
|
|||||||||
Cash
Provided By Operating Activities
|
||||||||||||
Net
(loss) income
|
$ | (71,034 | ) | $ | 9,234 | $ | 8,715 | |||||
Adjustments
to reconcile net (loss) income to net cash provided by operating
activities:
|
||||||||||||
Depreciation
|
9,423 | 9,079 | 8,813 | |||||||||
Amortization
of intangible assets and deferred financing costs
|
633 | 323 | 351 | |||||||||
Goodwill
and other impairment charges
|
41,007 | — | — | |||||||||
Loss
on sale of property, plant and equipment
|
565 | 12 | 107 | |||||||||
Provision
for doubtful accounts receivable
|
735 | 990 | 629 | |||||||||
Provision
for inventory reserves
|
5,552 | 1,687 | 2,163 | |||||||||
Stock-based
compensation
|
711 | 651 | 686 | |||||||||
Deferred
income taxes
|
20,647 | (88 | ) | 3,755 | ||||||||
Change
in operating assets and liabilities, net of effect of businesses
acquired
or sold:
|
||||||||||||
Accounts
receivable
|
7,079 | (3,063 | ) | (3,591 | ) | |||||||
Inventories
|
(577 | ) | (22,550 | ) | (10,617 | ) | ||||||
Accounts
payable and accrued liabilities
|
(15,809 | ) | 5,366 | 1,166 | ||||||||
Other
current assets
|
2,153 | (831 | ) | (2,074 | ) | |||||||
Other
non-current assets
|
1,800 | (1,855 | ) | (575 | ) | |||||||
Other
long-term liabilities
|
1,898 | 2,371 | (1,479 | ) | ||||||||
Other,
net
|
117 | (668 | ) | (558 | ) | |||||||
4,900 | 658 | 7,491 | ||||||||||
Cash
Used For Investing Activities
|
||||||||||||
Payments
for purchase of business
|
(6,329 | ) | (9,409 | ) | (9,863 | ) | ||||||
Additions
to property, plant and equipment
|
(12,424 | ) | (13,418 | ) | (8,865 | ) | ||||||
Proceeds
from sale of property, plant and equipment
|
534 | 814 | 178 | |||||||||
(18,219 | ) | (22,013 | ) | (18,550 | ) | |||||||
Cash
Provided By (Used For) Financing Activities
|
||||||||||||
Net
(repayments) borrowings on short-term debt
|
(22,000 | ) | 22,000 | — | ||||||||
Borrowings
on long-term debt
|
60,000 | — | 7 | |||||||||
Principal
payments on senior notes and other long-term debt
|
(20,803 | ) | (17,001 | ) | (13,000 | ) | ||||||
Excess
tax benefits from stock-based compensation
|
30 | 111 | 25 | |||||||||
Dividends
paid
|
(2,000 | ) | (498 | ) | — | |||||||
Common
stock transactions
|
301 | 642 | 150 | |||||||||
15,528 | 5,254 | (12,818 | ) | |||||||||
Effect
of foreign currency fluctuations on cash
|
350 | 3,644 | 3,455 | |||||||||
Increase
(decrease) in cash and cash equivalents
|
2,559 | (12,457 | ) | (20,422 | ) | |||||||
Cash
and cash
equilavents
|
||||||||||||
Beginning
of year
|
39,232 | 51,689 | 72,111 | |||||||||
End
of year
|
$ | 41,791 | $ | 39,232 | $ | 51,689 |
1
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
2008
|
2007
|
|||||||
Raw
materials
|
$ | 30,581 | $ | 34,585 | ||||
Work
in process
|
2,834 | 3,850 | ||||||
Finished
goods
|
59,897 | 53,315 | ||||||
93,312 | 91,750 | |||||||
Less
reserves
|
7,313 | 4,024 | ||||||
$ | 85,999 | $ | 87,726 |
Property
improvements
|
5-20
years
|
Buildings
and improvements
|
20-40
years
|
Furniture,
fixtures and equipment
|
3-10
years
|
2008
|
2007
|
|||||||
Property
and improvements
|
$ | 1,240 | $ | 1,307 | ||||
Buildings
and improvements
|
25,481 | 22,731 | ||||||
Furniture,
fixtures and equipment
|
106,252 | 100,790 | ||||||
132,973 | 124,828 | |||||||
Less
accumulated depreciation
|
93,896 | 88,422 | ||||||
$ | 39,077 | $ | 36,406 |
Marine
Electronics
|
Outdoor
Equipment
|
Watercraft
|
Diving
|
Consolidated
|
||||||||||||||||
Balance
at September 29, 2006
|
$ | 14,596 | $ | 563 | $ | 5,518 | $ | 22,270 | $ | 42,947 | ||||||||||
Currency
translation
|
- | - | 359 | 1,918 | 2,277 | |||||||||||||||
Acquisitions
|
- | - | 710 | 5,520 | 6,230 | |||||||||||||||
Balance
at September 28, 2007
|
14,596 | 563 | 6,587 | 29,708 | 51,454 | |||||||||||||||
Currency
translations
|
(92 | ) | - | (345 | ) | 933 | 496 | |||||||||||||
Acquisitions
|
1,738 | - | - | - | 1,738 | |||||||||||||||
Impairment
charges
|
(6,229 | ) | (563 | ) | (5,904 | ) | (26,907 | ) | (39,603 | ) | ||||||||||
Balance
at October 3, 2008
|
$ | 10,013 | $ | - | $ | 338 | $ | 3,734 | $ | 14,085 |
2008
|
2007
|
|||||||
Patents
|
$ | 3,457 | $ | 3,443 | ||||
Trademarks
|
5,218 | 5,997 | ||||||
Other
|
1,620 | 744 | ||||||
10,295 | 10,184 | |||||||
Less
accumulated amortization
|
3,853 | 3,546 | ||||||
Net
patents, trademarks and other
|
$ | 6,442 | $ | 6,638 |
2008
|
2007
|
|||||||
Foreign
currency translation adjustment
|
$ | 16,380 | $ | 17,674 | ||||
Unamortized
loss on pension plans, net of tax of $33 and $771,
respectively
|
(2,842 | ) | (1,055 | ) | ||||
Cash
flow hedge
|
(2,759 | ) | - | |||||
Accumulated
other comprehensive income
|
$ | 10,779 | $ | 16,619 |
Balance
at September 30, 2005
|
$ | 3,287 | ||
Expense
accruals for warranties issued during the year
|
3,915 | |||
Reserve
for businesses acquired
|
100 | |||
Less
current year warranty claims paid
|
3,458 | |||
Balance
at September 29, 2006
|
3,844 | |||
Expense
accruals for warranties issued during the year
|
4,006 | |||
Less
current year warranty claims paid
|
3,560 | |||
Balance
at September 28, 2007
|
4,290 | |||
Expense
accruals for warranties issued during the year
|
3,742 | |||
Less
current year warranty claims paid
|
3,671 | |||
Balance
at October 3, 2008
|
$ | 4,361 |
2008
|
2007
|
2006
|
||||||||||
(Loss)
income from continuing operations
|
$ | (68,475 | ) | $ | 10,549 | $ | 10,437 | |||||
Loss
from discontinued operations
|
(2,559 | ) | (1,315 | ) | (1,722 | ) | ||||||
Net
(loss) income
|
$ | (71,034 | ) | $ | 9,234 | $ | 8,715 | |||||
(Loss)
Income from continuing operations per common share –
Basic:
|
||||||||||||
Class
A
|
$ | (7.53 | ) | $ | 1.18 | $ | 1.18 | |||||
Class
B
|
$ | (7.53 | ) | $ | 1.06 | $ | 1.06 | |||||
Loss
from discontinued operations per common share – Basic:
|
||||||||||||
Class
A
|
$ | (0.28 | ) | $ | (0.15 | ) | $ | (0.20 | ) | |||
Class
B
|
$ | (0.28 | ) | $ | (0.13 | ) | $ | (0.18 | ) | |||
(Loss)
Income per common share – Basic:
|
||||||||||||
Class
A
|
$ | (7.81 | ) | $ | 1.03 | $ | 0.98 | |||||
Class
B
|
$ | (7.81 | ) | $ | 0.93 | $ | 0.88 | |||||
(Loss)
Income from continuing operations per common Class A and B share
–
Dilutive
|
$ | (7.53 | ) | $ | 1.14 | $ | 1.14 | |||||
Loss
from discontinued operations per common Class A and B share –
Dilutive
|
$ | (0.28 | ) | $ | (0.14 | ) | $ | (0.19 | ) | |||
(Loss)
Income per common Class A and B share – Dilutive
|
$ | (7.81 | ) | $ | 1.00 | $ | 0.95 |
2
|
RESTRUCTURING
|
Employee
Termination
Costs
|
Contract
Exit
Costs
|
Other
Exit
Costs
|
Total
|
|||||||||||||
Accrued
liabilities as of September 28, 2007
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Activity
during the period ended October 3, 2008:
|
||||||||||||||||
Charges
to earnings
|
825 | — | 1,626 | 2,451 | ||||||||||||
Settlement
payments
|
— | — | (1,626 | ) | (1,626 | ) | ||||||||||
Accrued
liabilities as of October 3, 2008
|
825 | — | — | 825 | ||||||||||||
Estimated
completion costs
|
332 | — | — | 332 | ||||||||||||
Total
estimated restructuring cost
|
$ | 1,157 | $ | — | $ | 1,626 | $ | 2,783 |
Employee
Termination
Costs
|
Contract
Exit
Costs
|
Other
Exit
Costs
|
Total
|
|||||||||||||
Accrued
liabilities as of September 28, 2007
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Activity
during the year ended October 3,
2008:
|
||||||||||||||||
Charges
to earnings
|
320 | — | — | 320 | ||||||||||||
Settlement
payments
|
(228 | ) | — | — | (228 | ) | ||||||||||
Accrued
liabilities as of October 3, 2008
|
92 | — | — | 92 | ||||||||||||
Estimated
completion costs
|
— | — | — | — | ||||||||||||
Total
estimated restructuring cost
|
$ | 320 | $ | — | $ | — | $ | 320 |
Employee
Termination
Costs
|
Contract
Exit
Costs
|
Other
Exit
Costs
|
Total
|
|||||||||||||
Accrued
liabilities as of September 29, 2006
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Activity
during the year ended
September 28, 2007:
|
||||||||||||||||
Charges
to earnings
|
428 | 130 | 20 | 578 | ||||||||||||
Settlement
payments
|
(281 | ) | (14 | ) | (20 | ) | (315 | ) | ||||||||
Accrued
liabilities as of September 29, 2007
|
147 | 116 | — | 263 | ||||||||||||
Activity
during the year ended
October 3, 2008:
|
||||||||||||||||
Charges
to earnings
|
— | — | 74 | 74 | ||||||||||||
Settlement
payments
|
(147 | ) | (116 | ) | (74 | ) | (337 | ) | ||||||||
Accrued
liabilities as of October 3, 2008
|
$ | — | $ | — | $ | — | $ | — |
Employee
Termination
Costs
|
Contract
Exit
Costs
|
Other
Exit
Costs
|
Total
|
|||||||||||||
Accrued
liabilities as of
September 30, 2005
|
$ | 675 | $ | 43 | $ | — | $ | 718 | ||||||||
Activity
during the year ended
September 29, 2006:
|
||||||||||||||||
Charges
to earnings
|
51 | 9 | 292 | 352 | ||||||||||||
Settlement
payments
|
(726 | ) | (52 | ) | (292 | ) | (1,070 | ) | ||||||||
Accrued
liabilities as of
September 29, 2006
|
$ |
—
|
$ | — | $ | — | $ | — |
3
|
ACQUISITIONS
|
Accounts
receivable
|
$ | 3,991 | ||
Inventories
|
3,291 | |||
Other
current assets
|
111 | |||
Property,
plant and equipment
|
429 | |||
Trademark
|
855 | |||
Customer
list
|
978 | |||
Goodwill
|
1,738 | |||
Total
assets acquired
|
11,393 | |||
Total
liabilities assumed
|
5,747 | |||
Net
purchase price
|
$ | 5,646 |
Total
current assets
|
$ | 1,831 | ||
Property,
plant and equipment
|
122 | |||
Trademark
|
936 | |||
Customer
list
|
267 | |||
Goodwill
|
5,915 | |||
Total
assets acquired
|
9,071 | |||
Total
liabilities assumed
|
453 | |||
Net
purchase price
|
$ | 8,618 |
Total
current assets
|
$ | 623 | ||
Property,
plant and equipment
|
122 | |||
Trademark
|
175 | |||
Patents
|
75 | |||
Customer
list
|
49 | |||
Goodwill
|
710 | |||
Total
assets acquired
|
1,754 | |||
Total
liabilities assumed
|
244 | |||
Net
purchase price
|
$ | 1,510 |
Total
current assets
|
$ | 4,348 | ||
Property,
plant and equipment
|
260 | |||
Trademark
|
940 | |||
Patents
|
195 | |||
Goodwill
|
4,582 | |||
Total
assets acquired
|
10,325 | |||
Total
liabilities assumed
|
462 | |||
Net
purchase price
|
$ | 9,863 |
4
|
INDEBTEDNESS
|
2008
|
2007
|
|||||||
Term
loan
|
$ | 60,000 | $ | — | ||||
2001
senior notes
|
— | 20,000 | ||||||
1998
senior notes
|
— | 800 | ||||||
Other
|
3 | 6 | ||||||
60,003 | 20,806 | |||||||
Less
current maturities
|
3 | 10,800 | ||||||
$ | 60,000 | $ | 10,006 |
Year
|
||||
2009
|
$ | 3 | ||
2010
|
60,000 |
5
|
LEASES
AND OTHER COMMITMENTS
|
Year
|
Related
parties
included
in total
|
Total
|
||||||
2009
|
$ | 798 | $ | 6,457 | ||||
2010
|
689 | 4,858 | ||||||
2011
|
542 | 3,715 | ||||||
2012
|
— | 2,836 | ||||||
2013
|
— | 2,302 | ||||||
Thereafter
|
— | 7,354 |
6
|
INCOME
TAXES
|
2008
|
2007
|
2006
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | — | $ | — | $ | — | ||||||
State
|
251 | 109 | 159 | |||||||||
Foreign
|
2,678 | 3,410 | 3,919 | |||||||||
Deferred
|
21,249 | 1,727 | 3,983 | |||||||||
$ | 24,178 | $ | 5,246 | $ | 8,061 |
2008
|
2007
|
|||||||
Deferred
tax assets:
|
||||||||
Inventories
|
$ | 5,146 | $ | 3,303 | ||||
Compensation
|
6,980 | 7,387 | ||||||
Tax
credit carryforwards
|
2,528 | 2,333 | ||||||
Goodwill
and other intangibles
|
4,171 | — | ||||||
Net
operating loss carryforwards
|
7,820 | 5,965 | ||||||
Depreciation
and amortization
|
6,631 | 4,838 | ||||||
Accrued
liabilities
|
3,754 | 3,762 | ||||||
Other
|
1,594 | 1,583 | ||||||
Total
gross deferred tax assets
|
38,624 | 29,171 | ||||||
Less
valuation allowance
|
35,067 | 3,437 | ||||||
Deferred
tax assets
|
3,557 | 25,734 | ||||||
Deferred
tax liabilities:
|
||||||||
Goodwill
and other intangibles
|
— | 652 | ||||||
Foreign
statutory reserves
|
1,111 | 956 | ||||||
Net
deferred tax assets
|
$ | 2,446 | $ | 24,126 |
2008
|
2007
|
2006
|
||||||||||
United
States
|
$ | (20,813 | ) | $ | 5,719 | $ | 10,645 | |||||
Foreign
|
(23,484 | ) | 10,076 | 7,853 | ||||||||
$ | (44,297 | ) | $ | 15,795 | $ | 18,498 |
2008
|
2007
|
2006
|
|
Statutory
U.S. federal income tax rate
|
34.0%
|
34.0%
|
34.0%
|
Foreign
rate differential
|
(4.1)
|
3.9
|
8.4
|
Tax
law change
|
¾
|
(4.0)
|
—
|
Impairment
of intangibles
|
(15.4)
|
—
|
—
|
Reduction
in valuation reserve for deferred assets
|
¾
|
—
|
(5.2)
|
Increase in valuation reserve for deferred assets |
(66.8)
|
—
|
—
|
Reduction
(increase) in rate utilized to record deferred
taxes
|
¾
|
(2.9)
|
4.9
|
Other
|
(2.3)
|
2.2
|
1.5
|
(54.6)%
|
33.2%
|
43.6%
|
2008
|
||||
Balance
at September 29, 2007
|
$ | 1,074 | ||
Gross
decreases - tax positions in prior period
|
(109 | ) | ||
Gross
increases - tax positions in current period
|
175 | |||
Balance
at October 3, 2008
|
$ | 1,140 |
Jurisdiction
|
Fiscal
Year(s)
|
United
States
|
1993-2007
|
Canada
|
2004-2007
|
France
|
2006-2007
|
Germany
|
2005-2007
|
Italy
|
2004-2007
|
Japan
|
2007
|
Switzerland
|
1998-2007
|
Before
Application of SFAS No. 158
|
Incremental
Effect of Application of SFAS No. 158
|
After
Application of SFAS No. 158
|
||||||||||
Deferred
income taxes
|
$ | 12,592 | $ | 505 | $ | 13,097 | ||||||
Other
intangible assets, net
|
6,641 | (3 | ) | 6,638 | ||||||||
Total
assets
|
319,177 | 502 | 319,679 | |||||||||
Other
liabilities
|
9,193 | 1,260 | 10,453 | |||||||||
Accumulated
other comprehensive income
|
17,377 | (758 | ) | 16,619 | ||||||||
Total
shareholders’ equity
|
200,923 | (758 | ) | 200,165 | ||||||||
Total
liabilities and shareholders’ equity
|
319,177 | 502 | 319,679 |
2008
|
2007
|
|||||||
Projected
benefit obligation:
|
||||||||
Projected
benefit obligation at beginning of year
|
$ | 16,676 | $ | 16,040 | ||||
Service
cost
|
682 | 630 | ||||||
Interest
cost
|
1,074 | 1,005 | ||||||
Actuarial
gain
|
(1,336 | ) | (266 | ) | ||||
Benefits
paid
|
(748 | ) | (733 | ) | ||||
Projected
benefit obligation at end of year
|
$ | 16,348 | $ | 16,676 | ||||
Fair
value of plan assets:
|
||||||||
Fair
value of plan assets at beginning of year
|
$ | 12,629 | $ | 11,594 | ||||
Actual
(loss) return on plan assets
|
(1,505 | ) | 1,230 | |||||
Company
contributions
|
440 | 538 | ||||||
Benefits
paid
|
(748 | ) | (733 | ) | ||||
Fair
value of plan assets at end of year
|
$ | 10,816 | $ | 12,629 | ||||
Funded
status of the plan
|
$ | (5,532 | ) | $ | (4,047 | ) | ||
Amounts
recognized in the consolidated balance sheets consist of:
|
||||||||
Net
deferred tax assets
|
$ | — | $ | 705 | ||||
Current
pension liabilities
|
194 | 193 | ||||||
Noncurrent
pension liabilities
|
5,338 | 3,854 | ||||||
Accumulated
other comprehensive income (loss)
|
(2,842 | ) | (1,760 | ) | ||||
Components
of accumulated other comprehensive income (loss):
|
||||||||
Net
actuarial loss
|
$ | (2,842 | ) | $ | (1,756 | ) | ||
Prior
service cost
|
— | (4 | ) | |||||
Accumulated
other comprehensive income
|
$ | (2,842 | ) | $ | (1,760 | ) |
2008
|
2007
|
2006
|
||||||||||
Service
cost
|
$ | 682 | $ | 630 | $ | 703 | ||||||
Interest
cost
|
1,074 | 1,005 | 925 | |||||||||
Expected
return on plan assets
|
(975 | ) | (923 | ) | (871 | ) | ||||||
Amortization
of unrecognized:
|
||||||||||||
Net
loss
|
59 | 92 | 268 | |||||||||
Prior
service cost
|
4 | 9 | 9 | |||||||||
Transition
asset
|
(1 | ) | (2 | ) | (2 | ) | ||||||
Net
periodic pension cost
|
$ | 843 | $ | 811 | $ | 1,032 | ||||||
Other
changes in benefit obligations recognized in other comprehensive
income
(OCI):
|
||||||||||||
Prior
service cost
|
$ | (4 | ) | $ | (9 | ) | ||||||
Net
loss
|
1,085 | (922 | ) | |||||||||
Transition
asset
|
1 | 2 | ||||||||||
Total
recognized in OCI
|
1,082 | (929 | ) | |||||||||
Total
recognized in net periodic benefit costs and OCI
|
$ | 1,925 | $ | (118 | ) |
Year
|
||||
2009
|
$ | 741 | ||
2010
|
753 | |||
2011
|
749 | |||
2012
|
787 | |||
2013
|
826 | |||
Five
years thereafter
|
4,946 |
2008
|
2007
|
2006
|
||||||||||
Discount
rate
|
7.00 | % | 6.50 | % | 6.25 | % | ||||||
Long-term
rate of return
|
8.00 | 8.00 | 8.00 | |||||||||
Average
salary increase rate
|
3.70 | 4.00 | 4.00 |
2008
|
2007
|
|||||||
Equity
securities
|
73 | % | 71 | % | ||||
Fixed
income securities
|
26 | 27 | ||||||
Other
securities
|
1 | 2 | ||||||
Total
|
100 | % | 100 | % |
9
|
COMMON
STOCK
|
2008
|
2007
|
|
Class
A, $.05 par value:
|
||
Authorized
|
20,000,000
|
20,000,000
|
Outstanding
|
8,006,569
|
7,949,617
|
Class
B, $.05 par value:
|
|
|
Authorized
|
3,000,000
|
3,000,000
|
Outstanding
|
1,216,464
|
1,217,409
|
10
|
STOCK
OWNERSHIP PLANS
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
(in
years)
|
Aggregate
Intrinsic
Value
|
||||||||||
Outstanding
at September 29, 2005
|
343,034 | $ | 9.13 | ||||||||||
Exercised
|
(6,501 | ) | 6.28 | $ | 75 | ||||||||
Cancelled
|
(4,000 | ) | 22.06 | ||||||||||
Outstanding
at September 29, 2006
|
332,533 | $ | 9.03 | ||||||||||
Exercised
|
(44,190 | ) | 10.94 | $ | 326 | ||||||||
Cancelled
|
(1,950 | ) | 19.88 | ||||||||||
Outstanding
at September 28, 2007
|
286,393 | $ | 8.66 | ||||||||||
Exercised
|
(15,350 | ) | 13.94 | $ | 86 | ||||||||
Cancelled
|
— | — | |||||||||||
Outstanding
and exercisable at October 3, 2008
|
271,043 | $ | 8.36 |
2.1
|
$ | 1,217 |
Price
Range
per
Share
|
Number
of Options
Outstanding
and
Exercisable
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life
(in
years)
|
$5.31 –
8.00
|
145,033
|
$6.87
|
2.4
|
$8.01 –
10.00
|
95,390
|
8.24
|
0.7
|
$10.01 –
20.00
|
30,620
|
15.77
|
4.7
|
271,043
|
$8.36
|
2.1
|
Shares
|
Weighted
Average
Grant
Price
|
|||||||
Unvested
restricted stock at September 29, 2006
|
76,120 | $ | 16.88 | |||||
Restricted
stock grants
|
43,328 | 18.42 | ||||||
Restricted
stock cancelled
|
(7,496 | ) | 17.35 | |||||
Restricted
stock vested
|
(6,850 | ) | 18.25 | |||||
Unvested
restricted stock at September 28, 2007
|
105,102 | 17.39 | ||||||
Restricted
stock grants
|
35,972 | 21.75 | ||||||
Restricted
stock vested
|
(31,797 | ) | (17.77 | ) | ||||
Unvested
restricted stock at October 3, 2008
|
109,277 | $ | 18.72 |
11
|
RELATED
PARTY TRANSACTIONS
|
12
|
SEGMENTS
OF BUSINESS
|
2008
|
2007
|
2006
|
||||||||||
Net
sales:
|
||||||||||||
Marine
Electronics: Unaffiliated
customers
|
$ | 186,534 | $ | 197,728 | $ | 164,362 | ||||||
Interunit transfers
|
189 | 321 | 110 | |||||||||
Outdoor
Equipment Unaffiliated
customers
|
48,247 | 55,786 | 65,903 | |||||||||
Interunit transfers
|
68 | 76 | 45 | |||||||||
Watercraft:
Unaffiliated customers
|
87,862 | 88,632 | 85,287 | |||||||||
Interunit transfers
|
225 | 216 | 175 | |||||||||
Diving:
Unaffiliated customers
|
97,485 | 87,881 | 77,880 | |||||||||
Interunit transfers
|
761 | 797 | 590 | |||||||||
Other/Corporate
|
660 | 577 | 518 | |||||||||
Eliminations
|
(1,242 | ) | (1,410 | ) | (920 | ) | ||||||
$ | 420,789 | $ | 430,604 | $ | 393,950 | |||||||
Operating
profit (loss):
|
||||||||||||
Marine
Electronics
|
$ | 414 | $ | 22,933 | $ | 21,583 | ||||||
Outdoor
Equipment
|
1,982 | 8,463 | 8,236 | |||||||||
Watercraft
|
(8,282 | ) | (4,219 | ) | 161 | |||||||
Diving
|
(21,520 | ) | 6,933 | 5,604 | ||||||||
Other/Corporate
|
(10,647 | ) | (14,084 | ) | (12,225 | ) | ||||||
$ | (38,053 | ) | $ | 20,026 | $ | 23,359 | ||||||
Depreciation
and amortization expense:
|
||||||||||||
Marine
Electronics
|
$ | 4,389 | $ | 3,647 | $ | 3,195 | ||||||
Outdoor
Equipment
|
560 | 442 | 358 | |||||||||
Watercraft
|
2,042 | 2,182 | 2,525 | |||||||||
Diving
|
1,664 | 1,663 | 1,646 | |||||||||
Other/Corporate
|
1,401 | 1,468 | 1,440 | |||||||||
$ | 10,056 | $ | 9,402 | $ | 9,164 | |||||||
Additions
to property, plant and equipment:
|
||||||||||||
Marine
Electronics
|
$ | 6,969 | $ | 6,149 | $ | 4,583 | ||||||
Outdoor
Equipment
|
310 | 2,615 | 321 | |||||||||
Watercraft
|
2,597 | 1,832 | 1,336 | |||||||||
Diving
|
1,519 | 1,199 | 1,547 | |||||||||
Other/Corporate
|
1,029 | 1,623 | 1,078 | |||||||||
$ | 12,424 | $ | 13,418 | $ | 8,865 | |||||||
Total
assets:
|
||||||||||||
Marine
Electronics
|
$ | 89,487 | $ | 95,725 | ||||||||
Outdoor
Equipment
|
25,400 | 23,739 | ||||||||||
Watercraft
|
45,586 | 59,019 | ||||||||||
Diving
|
79,138 | 114,091 | ||||||||||
Other/Corporate
|
15,458 | 27,105 | ||||||||||
$ | 255,069 | $ | 319,679 | |||||||||
Goodwill,
net:
|
||||||||||||
Marine
Electronics
|
$ | 10,013 | $ | 14,596 | ||||||||
Outdoor
Equipment
|
— | 563 | ||||||||||
Watercraft
|
338 | 6,587 | ||||||||||
Diving
|
3,734 | 29,708 | ||||||||||
$ | 14,085 | $ | 51,454 |
2008
|
2007
|
2006
|
||||||||||
Net
sales:
|
||||||||||||
United
States:
|
||||||||||||
Unaffiliated
customers
|
$ | 293,354 | $ | 332,830 | $ | 313,496 | ||||||
Interarea
transfers
|
19,089 | 12,840 | 11,712 | |||||||||
Europe:
|
||||||||||||
Unaffiliated
customers
|
82,315 | 59,976 | 46,684 | |||||||||
Interarea
transfers
|
15,123 | 13,187 | 12,527 | |||||||||
Other:
|
||||||||||||
Unaffiliated
customers
|
45,119 | 37,798 | 33,769 | |||||||||
Interarea
transfers
|
1,259 | 2,037 | 1,561 | |||||||||
Eliminations
|
(35,470 | ) | (28,064 | ) | (25,799 | ) | ||||||
$ | 420,789 | $ | 430,604 | $ | 393,950 | |||||||
Total
assets:
|
||||||||||||
United
States
|
$ | 139,024 | $ | 180,761 | ||||||||
Europe
|
83,642 | 109,580 | ||||||||||
Other
|
32,403 | 29,338 | ||||||||||
$ | 255,069 | $ | 319,679 | |||||||||
Long-term
assets (1)
|
||||||||||||
United
States
|
$ | 50,113 | $ | 60,057 | ||||||||
Europe
|
12,303 | 38,556 | ||||||||||
Other
|
2,345 | 2,748 | ||||||||||
$ | 64,761 | $ | 101,361 |
(1)
|
Long-term
assets consist of net property, plant and equipment, net intangible
assets, goodwill and other assets excluding deferred income
taxes.
|
13
|
VALUATION
AND QUALIFYING ACCOUNTS
|
Balance
at
Beginning
of
Year
|
Additions
Charged
to
Costs
and
Expenses
|
Reserves
of
Businesses
Acquired
|
Less
Deductions
|
Balance
at
End
of
Year
|
||||||||||||||||
Year
ended October 3, 2008:
|
||||||||||||||||||||
Allowance
for doubtful accounts
|
$ | 2,267 | $ | 735 | $ | 95 | $ | 520 | $ | 2,577 | ||||||||||
Reserves
for inventory valuation
|
4,024 | 4,010 | — | 1,688 | 6,346 | |||||||||||||||
Valuation
of deferred tax assets
|
3,437 | 31,630 | — | — | 35,067 | |||||||||||||||
Reserves
for sales returns
|
1,314 | 2,979 | 119 | 2,855 | 1,557 | |||||||||||||||
Year
ended September 28, 2007:
|
||||||||||||||||||||
Allowance
for doubtful accounts
|
$ | 2,250 | $ | 977 | $ | 39 | $ | 999 | $ | 2,267 | ||||||||||
Reserves
for inventory valuation
|
3,405 | 1,086 | — | 467 | 4,024 | |||||||||||||||
Valuation
of deferred tax assets
|
3,260 | 663 | — | 486 | 3,437 | |||||||||||||||
Reserves
for sales returns
|
1,023 | 2,648 | — | 2,357 | 1,314 | |||||||||||||||
Year
ended September 29, 2006:
|
||||||||||||||||||||
Allowance
for doubtful accounts
|
$ | 2,481 | $ | 554 | $ | — | $ | 785 | $ | 2,250 | ||||||||||
Reserves
for inventory valuation
|
2,540 | 2,734 | — | 1,869 | 3,405 | |||||||||||||||
Valuation
of deferred tax assets
|
4,568 | 224 | — | 1,532 | 3,260 | |||||||||||||||
Reserves
for sales returns
|
1,323 | 583 | 78 | 961 | 1,023 | |||||||||||||||
Deductions
include the net impact of foreign currency fluctuations on the respective
accounts. Previously reported amounts have changed due to the
Company’s accounting for its Escape business as a discontinued
operation.
|
14
|
LITIGATION
|
15
|
DISCONTINUED
OPERATIONS
|
16
|
QUARTERLY
FINANCIAL SUMMARY (unaudited)
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
|||||||||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||||||||
Net
sales
|
$ | 75,967 | $ | 71,427 | $ | 121,813 | $ | 121,972 | $ | 141,243 | $ | 149,868 | $ | 81,766 | $ | 87,337 | ||||||||||||||||
Gross
profit
|
29,289 | 28,520 | 46,806 | 47,157 | 55,751 | 63,738 | 27,705 | 36,081 | ||||||||||||||||||||||||
Operating
(loss) profit
|
(4,581 | ) | (2,233 | ) | 3,647 | 4,608 | 14,569 | 14,783 | (51,688 | ) | 2,868 | |||||||||||||||||||||
(Loss)
income from continuing operations
|
(3,624 | ) | (1,312 | ) | 782 | 1,931 | 7,887 | 8,335 | (73,520 | ) | 1,595 | |||||||||||||||||||||
Loss
from discontinued operations, net of income tax benefit
|
(1,066 | ) | (257 | ) | (320 | ) | (338 | ) | (104 | ) | (67 | ) | (1,069 | ) | (653 | ) | ||||||||||||||||
Net
(loss) income
|
$ | (4,690 | ) | $ | (1,569 | ) | $ | 462 | $ | 1,593 | $ | 7,783 | $ | 8,268 | $ | (74,589 | ) | $ | 942 | |||||||||||||
(Loss)
Income from continuing operations per common share –
Basic:
|
||||||||||||||||||||||||||||||||
Class
A
|
$ | (0.40 | ) | $ | (0.14 | ) | $ | 0.09 | $ | 0.22 | $ | 0.88 | $ | 0.93 | $ | (8.07 | ) | $ | 0.18 | |||||||||||||
Class
B
|
$ | (0.40 | ) | $ | (0.14 | ) | $ | 0.09 | $ | 0.19 | $ | 0.79 | $ | 0.84 | $ | (8.07 | ) | $ | 0.16 | |||||||||||||
Loss
from discontinued operations per common share – Basic:
|
||||||||||||||||||||||||||||||||
Class
A
|
$ | (0.12 | ) | $ | (0.03 | ) |
$
|
(0.04 |
)
|
$
|
(0.04 |
)
|
$
|
(0.01 |
)
|
$
|
--- |
$
|
(0.11 |
)
|
$
|
(0.07 |
)
|
|||||||||
Class
B
|
$
|
(0.12 |
)
|
$
|
(0.03 |
)
|
$ | (0.04 | ) | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.11 | ) | $ | (0.07 | ) | ||||||||
Net
(loss) income per common share – Basic:
|
||||||||||||||||||||||||||||||||
Class
A
|
$ | (0.52 | ) | $ | (0.17 | ) | $ | 0.05 | $ | 0.18 | $ | 0.87 | $ | 0.93 | $ | (8.18 | ) | $ | 0.11 | |||||||||||||
Class
B
|
$ | (0.52 | ) | $ | (0.17 | ) | $ | 0.05 | $ | 0.16 | $ | 0.78 | $ | 0.83 | $ | (8.18 | ) | $ | 0.09 | |||||||||||||
(Loss)
Income from continuing operations per common Class A and B share
–
Dilutive
|
$ | (0.40 | ) | $ | (0.14 | ) | $ | 0.09 | $ | 0.21 | $ | 0.85 | $ | 0.90 | $ | (8.07 | ) | $ | 0.17 | |||||||||||||
Loss
from discontinued operations per common Class A and B share –
Dilutive
|
$ | (0.12 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.11 | ) | $ | (0.07 | ) | ||||||||
Net
(loss) income per common Class A and B share – Dilutive
|
$ | (0.52 | ) | $ | (0.17 | ) | $ | 0.05 | $ | 0.17 | $ | 0.84 | $ | 0.89 | $ | (8.18 | ) | $ | 0.10 |
17
|
SUBSEQUENT
EVENT
|