Johnson Worldwide Associates, Inc. - 10-K Summary
Business Context and Reporting Period
This filing is an Annual Report (Form 10-K) for Johnson Worldwide Associates, Inc. for the fiscal year ended September 29, 1995. The Company is engaged in the manufacture and marketing of recreational products, including fishing, camping, diving, and marine equipment. The Company discontinued its marking systems business in fiscal 1994. As of November 15, 1995, the Company had 6,896,959 shares of Class A and 1,228,537 shares of Class B common stock outstanding.
Key Financial Metrics
Revenue: Net sales for continuing operations totaled $347,190,000 for the year ended September 29, 1995.
- Fishing: $127,597,000
- Camping: $98,963,000
- Diving: $77,667,000
- Marine: $42,963,000
Customer Concentration: Sales to Wal-Mart Stores, Inc. and affiliates totaled $34,902,000 in 1995. No single customer accounted for 10% or more of sales in 1994 or 1993.
Profitability and Cash Flow: The filing text incorporates the Consolidated Statements of Operations and Cash Flows by reference but does not explicitly state the net income, operating profit, or cash flow figures for the full year in the provided text. Seasonal data indicates that the fourth quarter typically results in an operating loss due to seasonality.
Debt and Liquidity: Specific debt balances and liquidity ratios are not provided in the text, as the Consolidated Balance Sheets are incorporated by reference.
Material Changes vs. Prior Period
Net sales increased from $284,343,000 in fiscal 1994 to $347,190,000 in fiscal 1995, representing a significant year-over-year growth.
- Fishing: Sales grew from $94,363,000 to $127,597,000, driven by the acquisition of the SPIDERWIRE product line and NEPTUNE TECHNOLOGIES.
- Camping: Sales increased from $87,529,000 to $98,963,000.
- Diving: Sales rose from $66,884,000 to $77,667,000.
- Marine: Sales increased from $35,567,000 to $42,963,000.
The Company experienced a temporary shortage of magnets in 1995, which hindered the ability to meet demand for electric motors, though this supply issue was resolved during the year.
Outlook, Risks, and Management Commentary
Strategy: The Company focuses on marketing and product innovation to maintain market share. It emphasizes brand recognition and product differentiation through R&D.
Acquisitions: In 1995, the Company acquired the SPIDERWIRE product line (entering the "superline" fishing segment) and the NEPTUNE TECHNOLOGIES product line (expanding electric motors).
Risks and Contingencies:
- Seasonality: The business is highly seasonal, with the majority of sales and operating profits occurring in the second and third quarters. The fourth quarter typically incurs an operating loss.
- Supply Chain: The Company faced magnet shortages in 1995 affecting electric motor production.
- Competition: Markets are competitive; the Company competes on innovation and performance rather than price.
- Legal: The Company is subject to various legal actions, including environmental matters, though management does not believe the outcome will significantly affect financial statements.
Dividends: The Company has never paid a dividend on its Common Stock.
Investor Verification Checklist
- Verify the specific Net Income and Operating Profit figures in the incorporated 1995 Annual Report (pages 16-28), as they are not explicitly listed in this text.
- Review the Consolidated Balance Sheets to assess total debt levels and liquidity ratios.
- Confirm the impact of the magnet shortage on Q1 and Q2 electric motor sales volumes.
- Examine the "Discontinued Operations" section (Note 3) for details on the sale of the marking systems business.
- Check the "International Operations" note (Note 13) for a breakdown of domestic vs. foreign revenue and risks associated with foreign currency fluctuations.