Johnson Outdoors Inc. Annual Report 2007

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FY2007 Annual Report · Johnson Outdoors Inc.

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2007 Johnson Outdoors Inc.
annual report

State of the Company........................ 2

FISHING & BOATING........................... 4

Minn Kota®

Humminbird®

Cannon®

PADDLING............................................. 16

Necky® / Old Town® / Ocean Kayak™

Lendal® / Carlisle® / Extrasport®

DIVING................................................... 26

SCubaprO® / uWaTEC®

CAMPING............................................... 32

Eureka!®

Tech4O® / Silva®

Johnson Outdoors............................. 40

philosophy

people

Environment

2007 Financials................................... 46

Corporate Governance

board of Directors

2007 Johnson outdoors aNNuaL rEpOrT

Helen Johnson-Leipold, Chairman and CEO,

brings to life the spirit of adventure at

Johnson Outdoors.

bE H ErE

Johnson Outdoors has arrived, with a powerful growth strategy and a return

to innovation that makes us a global leader in the outdoor recreation industry.

The plastic boat industry we launched in the 1970s has grown to a half-billion dollar

category, and Johnson Outdoors now markets leading brands across an $11 billion

marketplace. With Helen Johnson-Leipold guiding us into the future, now is the

time for employees, investors and consumers to be here, with Johnson Outdoors.

Ou r M I S S I O N & V I S I O N

Our vision is to own the outdoor adventure with innovation and passion.

Our mission is to be the innovation leader; bring excitement and growth to our

markets; and build a strong, talented team with exceptional passion.

• Well-received paddlesport innovations and double-digit growth

improved performance. Our year-end acquisition of Geonav®,

in key international markets led to a three percent increase in

a premier European chartplotter brand, further advances our

Watercraft sales, partially offsetting a one-time $4.4 million

growth strategy.

settlement payment.

• Outdoor Equipment saw double-digit growth in core consumer

Geographic expansion. Five years ago we decided to test our
marine and paddlesport brands in Europe, anticipating a $10 million

sales, partially offsetting the expected decline in military tent sales.

opportunity. Continual year-over-year double-digit growth shows the

Consumer and commercial tents generated positive momentum.

opportunity is much larger. With the right business model, we believe

This year we took an in-depth look at the outdoor recreation

universe, prioritizing opportunities to expand our footprint.

We explored innovative new marketing programs, creating the

all our brands have the chance to become market leaders in every

key country throughout the region. Geonav® and Seemann™ give us

the insight and local resources to deliver smart growth in Europe.

industry’s first infomercial for Humminbird® Side Imaging™

We enter 2008 with our long-term strategic growth plan on target,

technology. and we analyzed our supply chains, identifying

delivering industry-leading results. Our healthy balance sheet

opportunities to improve profitability. We continue to refine our

gives us the financial flexibility to move forward with our plans.

strategic growth plan while executing on its cornerstones: winning

We will continue investing in strengthened operations and enhanced

innovation, targeted acquisitions and geographic expansion.

capability. We will get and stay even closer to our consumers and

L E T T Er FrO M T H E C HaIrMaN

Johnson Outdoors is generating record sales and improved earnings

We demonstrated our commitment to enhanced shareholder value

through winning innovation, successful acquisitions and European

and our confidence in the future by returning profits to shareholders

expansion; leveraging our assets and capabilities to build sustained,

through quarterly dividends. and we continued working to manage

profitable growth; and well on the way to achieving a half-billion

accelerating growth efficiently as we complete the transformation

dollars in sales within the next few years.

of each business.

The growth strategy, developed in 2001, continues to drive positive

• In Marine Electronics, strong new products and innovative

results, with more than a third of this year’s growth coming from

marketing drove a 20 percent increase in net sales. Minn Kota®

innovative new products, and another third from acquisitions. In 2007,

became our first $100 million brand.

we again outperformed our peers, achieving record revenues despite

uncertainty over the economy. Net sales exceeded $432 million,

a nine percent increase over last year. Excluding military sales in this

and the prior year, core brand revenues increased twelve percent.

Net earnings were up six percent, to $9.2 million, or $1.00 per diluted

share as we continued to invest in the future.

• Net sales for Diving increased 13 percent through the addition

of Seemann™ Sub, one of Germany’s largest dive equipment

providers, a successful new dive computer launch, and favorable

currency translation.

Winning innovation. For the fourth straight year, more than a third of
revenues flowed from new products such as the breakthrough Eureka!®

N!ergy™ wired tent and the market-transforming Minn Kota® Terrova™

bow-mount trolling motor. and the pipeline is full of cutting-edge

ideas for all our businesses.

We are the undisputed innovation leader in our markets, combining a

passion for the outdoors with unique consumer insights and advanced

technology to develop products aimed squarely at key growth sectors.

Meaningful innovation drives demand for our brands, enables us to

compete on quality rather than price, and helps us attract top talent.

It empowers us to grow regardless of economic trends.

targeted acquisitions. Once again more than a third of new growth
came from strategic acquisitions of leading brands and state-of-the-art

technology to complement our businesses. Humminbird® and Cannon®

have exceeded expectations in a very short time. Lendal® is meeting

targets, and Seemann™ Sub contributed significantly to Diving’s

customers. We will create a business model to deliver sustained

profitable growth in Europe. We will pursue strategic acquisitions

where the fit is just right. and true to our Johnson values, we will

strive to be a workplace of choice for our talented, dedicated and

passionate company family.

I welcome our employees, our consumers and our investors to be

where the excitement is. be here, with Johnson Outdoors.

helen Johnson-Leipold
Chairman & Chief Executive Officer

2007 Johnson outdoors aNNuaL rEpOrT

LEaD ErS W I T H a K Na

C K

Find the industry leaders here: Minn Kota®, Humminbird®, Cannon®. Creating winning products to

catch fish and dreams, based on our unique insights into anglers’ habits and hopes.

In just six years, the Marine Electronics Group has tripled in size through powerful organic growth

and strategic acquisitions. Fiscal 2007 saw our fishing systems set records as our technology

innovations piled up awards. Focused marketing and acclaimed new products, representing more

than a third of group sales, drove a 20 percent net sales increase.

Our recent acquisition of Geonav®, a premier European chartplotter brand, advances our strategy

and our potential. We now compete in eight distinct marine electronics segments representing a

total opportunity of nearly $1 billion.

Find the leaders here—driving the industry to its next horizon.

2007 Johnson outdoors FISHING & bOaTING

F IrS T I N T H E W OrL D

a G aI N

Nearly 75 years after Minn Kota® introduced anglers to the electric trolling motor,

our breakthrough products continue to reel ’em in.

Minn Kota® is the world’s leading manufacturer of bow- and transom-mount trolling

motors. Fishing enthusiasts of every persuasion—walleye and bass, freshwater and

saltwater, leisure seeker and trophy seeker—know they can count on Minn Kota®.

anywhere. anytime.

We stay on top of trends to keep sales soaring. For instance, today’s bigger boats

have anglers craving bigger, more powerful motors. Our answer? Not only motors that

deliver maximum thrust, but also a patented lift system that makes stow and deploy as

easy as lifting your tailgate.

Our commitment to innovation, combined with the remarkable insight and experience

of our people, keeps Minn Kota® first to the market and first in the market, again and

again and again.

pO W ErI N G p a S T
$ 1 00 M I L L I O N

The vision transforming Johnson Outdoors

has also transformed Minn Kota®, which this

year became our first $100 million brand.

Shifting our focus from “trolling motors

leader” to “marine electronics leader”

helped us expand this great

brand to include the best

marine batteries, chargers,

wireless remotes, trim tabs

and more. We see similar

growth potential for Humminbird®

and Cannon® brands. The rapid integration

of these strategic acquisitions, combined

with Minn Kota®’s power, helped push fiscal

2007 sales for the entire Marine Electronics

Group to a new high—just short of

$200 million. Full speed ahead!

2007 Johnson outdoors FISHING & bOaTING

N ExT G E N Er a T I O N T Er rO V a ™

a rIp - rO a rI N G SuC C E S S

The market’s most advanced bow-mount trolling motor

is the most successful Minn Kota® product launch ever.

The result is one tough, durable motor. “You can

hit a rockbed or a submerged log, and the composite

Terrova™ reinvents electric steer motors with

shaft absorbs the impact,” Hansen says. Yet Terrova™

unparalleled precision, performance, digital electronics

makes trolling easy, with its patented, effortless

and 101 pounds of thrust. Three years of intensive

stow and deploy system; low profile foot pedal with

research went into developing the breakthrough line.

both heel/toe and left/right buttons; and precise,

“The essence of bow-mount motors hadn’t changed

fluid steering.

for a long time,” says ron Hansen, Director of

“It makes the whole experience more enjoyable,”

research, Development and Engineering for Minn Kota®

Hansen says. anglers agree. In fiscal 2007’s

and Humminbird®. “We got closer to the consumer,

fourth quarter, Terrova™ helped drive a 30.4 percent

studied how they fish and got their input to make

year-to-year surge in Marine Electronics Group sales.

the right decisions.”

2007 Johnson outdoors FISHING & bOaTING

Minn Kota® terrova™
Terrova™ balances unmatched power

and durability with effortless stow and

deploy, using patented fallaway ramps.

T H E FrO N T L I N E I N
Ma rI N E E L E C TrO N I C S

For more than 30 years Humminbird® has led the

industry in developing new ways to help anglers

SI D E I Ma G I N G ™ O p E N S
bO L D N E W V I S T a S

find fish. From 1975’s groundbreaking waterproof

Dave betts, principal Engineer for Humminbird®, had

depth sounder to today’s paradigm-shattering

long envisioned using boatside scanners to produce

Side Imaging™ technology, Humminbird® products

picture-like underwater images. Now he and his

are simply, clearly, better.

Humminbird® draws on cutting-edge technology

and consumer insight to create must-have marine

team have realized that vision, combining advanced

displays with four-element, 180-degree sonar to

create Humminbird® Side Imaging™ technology.

electronics, including fishfinders, chartplotters,

Saltwater anglers can see precise details of wrecks,

marine radios and global positioning systems.

reefs and drop-offs. Freshwater anglers can spot

In its first two years with Johnson Outdoors,

fish-attracting stumps, rocks and creek beds. all can

the brand has exceeded all performance targets,

search more water in less time—and pinpoint prime

growing revenues more than 50 percent.

fishing spots with built-in GpS.

The fishing community’s enthusiastic embrace

and the Side Imaging™ picture gets bigger. Fans go

of Side Imaging™ technology makes it clear

online to swap images like they do fish stories. Search

Humminbird® knows how to keep the action

and rescue pros find it a powerful tool. and researchers

going—in the boat, in fishfinding and in the market.

have a new way to see underwater, thanks to our

innovators who could see the future.

HuMMinbird® 997C side Imaging™
This breakthrough fishfinder delivers

picture-like images and GPS chartplotting

on a wide 8-inch screen.

2007 Johnson outdoors FISHING & bOaTING

Cannon® Mag20 dt/ts
The ability to move fishing lures
through precise depths gives
trolling anglers a valuable edge.

SuC C E S S a T E V Er Y L E V E L

The charter boat captain heading into the

pacific for salmon and the casual angler trolling

an inland lake for walleye are both more likely

to succeed with Cannon®.

Cannon® downriggers enable anglers to

place lures at precise depths as they troll,

enticing specific varieties of fish. From manual

downriggers to tournament series electronic

models, Cannon® products are designed to

deliver a more rewarding fishing adventure.

Continuing innovation keeps Cannon® on top.

Our team combines advanced technologies

with firsthand experience to produce

major advances like CannonLink™, as well as

continuing enhancements like the use of

corrosion-resistant materials. We share the

angler’s passion—and it runs deep.

C aN N O N L I N K ™ p aI r I N G
Y I E L D S a D Ou bL E W I N N Er

Our latest fishing system innovation has already

caught plenty of attention. The CannonLink™

Fishing System module lets anglers control up to

six downriggers from their Humminbird® fishfinder.

“You can program the system to move the

downriggers as you troll,” says Dave Nelsen, Head

Engineer for Humminbird®. “and you can check

downrigger status on the Humminbird® screen.”

He says the modular approach makes it easy to

expand fishing system capabilities year after year.

CannonLink™ was named 2007’s most innovative

consumer electronics and software product by the

National Marine Manufacturers association. It also

won top honors at ICaST. but the real winners are

anglers—who just may double their chances of

landing the trophy of a lifetime.

2007 Johnson outdoors FISHING & bOaTING

2007 Johnson outdoors paDDLING

r E V O L uT I O N O N T H E W aT Er

Here they come—a delighted army of diverse paddlers: Women in kayaks designed by and for

women. anglers on the prowl in the ultimate fishing kayak. Families enjoying time together on

the water.

Johnson Outdoors paddlesports brands deliver unprecedented performance, convenience

and comfort, driving continued sales growth in 2007. Necky®, Old Town® and Ocean Kayak™

excited kayakers with a steady stream of innovative models. Lendal® and Carlisle®, our paddle

brands, pulled together smoothly to reach both hard-touring pros and recreational paddlers.

Extrasport® accessories represent yet another area of significant growth potential; look for

more innovation here in the year ahead.

2007 Johnson outdoors paDDLING

N aV I Ga T OrS F Or

T H E SpOr T

and Old Town® continues to infuse modern,

innovative designs and materials with the

timeless spirit of paddling.

Inspired by unique consumer insights and their

own passion for paddling, our teams develop the

innovations that advance the sport and make us

the global leader in plastic canoes and kayaks.

Ever since Johnson Outdoors introduced

the first durable, convenient plastic

boat, combining Old Town® heritage of

craftsmanship with modern materials, our

brands have led the evolution of paddlesports.

Necky® performance kayaks blend art,

experience and science to craft advanced

composite models like the Chatham™, named a

“best of adventure Gear” winner by National

Geographic Adventure and “Gear of the Year”

by Men’s Journal. Ocean Kayak™ is a global

leader in sit-on-top kayaks, fueling the

growth of recreational kayaking with a host

of user-friendly features.

N EW F I S H I N G KaYaK S
GraN T aN G L ErS’ W I S H E S

a global crew of professional anglers inspires

Tom Swetish, Director of research and Development

for paddlesports, and his fishing kayak design team.

“because we can prototype quickly, we have them

fish the boat early on to get their input,” he says.

Supporting anglers’ movements is key, says

Spike Gladwin, Head Designer. “No longer is the

user simply facing straight ahead. The fish can go

anywhere,” he says. “I saw one guy catch a shark

that towed him for an hour.”

Swetish says the new Ocean Kayak™ prowler

Trident 15™ delivers kayak anglers’ “holy grail”: the

rod pod™—a storage hatch they can reach while

seated. More inspiration came from sales floor

observations. “We saw people trying to figure out

the boat,” Swetish says. “So we added graphics to

call out key features. and it looks cool.”

koru™ Looks baCk, surGes ahead

Marrying the features of Native American

hunting canoes with aerospace technology,
the Old Town® Koru™ revolutionizes the
premium market.

The Koru™ gives Algonquin and Ojibway

features new life in the market’s first infused

composite canoe. At 17 feet and 50 pounds,

the Koru™ is incredibly durable and stable,

yet one of the lightest boats ever for its size.

It’s the perfect canoe to take you back to

the essence of paddling—and draw you

forward to even more time on the water.

2007 Johnson outdoors paDDLING

nECKY® eliza™ kayak
Johnson Outdoors contributes one percent

of gross sales from women-specific kayaks

to the Breast Cancer Fund—since 2002,

donating $35,000.

WoMen-foCused desIGns

For too many women, paddling a kayak

was like wearing too-big shoes. In 2002,

Sara Knies, Director of Marketing for

Paddlesports, decided to step into this

untapped segment. “Women make up

nearly half the market and will spend

more for quality,” she says.

Murray Hamilton, Manager of Product

Development and Training, and his team

consulted women paddlers of all abilities

to create a boat for the female physique.

“You can’t just take a bigger boat and

lower the deck,” he says. “We started

from the ground up.”

The resulting women-focused boats

include the Necky® Eliza™ touring kayak.

The Eliza’s™ cockpit is wider, for a

woman’s center of gravity, and shorter,

for easier spray deck handling. And

the shallow V-shaped hull balances

tracking and maneuverability, making it

a pleasure to paddle.

SH O W C a S I N G SuS T aI N a bI L I T Y

Six special-edition kayak models made of 100 percent recycled plastic will hit the water in 2008,

encouraging consumers and industry leaders alike to act responsibly.

The limited-production Ocean Kayak™, Old Town® and Necky® models use sustainable, post-industrial

scrap from the company’s manufacturing facilities. Kayak colors will vary slightly from mold to

mold due to the recycling process, a “green” badge of honor for consumers.

Johnson Outdoors will contribute one percent of gross sales to the Waterkeeper alliance™,

supporting stewardship of waterways and their communities worldwide.

“The environmental movement is certainly familiar to the industry and to Johnson Outdoors, but

the more we thought about it, the more we wanted to illustrate our leadership and commitment

to sustainability,” says Nando Zucchi, General Manager of Johnson Outdoors paddlesports.

“We’re pleased to help the Waterkeeper alliance build awareness of vital natural resources.”

20 21

2007 Johnson outdoors paDDLING

C O MpL E T I N G T H E Ex pErI E N C E

Though all eyes may focus on the sculpted beauty of a kayak or canoe, the people

in the boat equally appreciate perfection in their paddling accessories. Our brands

offer choices for every level of skill and commitment.

Lendal® custom designs kayak paddles that surpass conventional concepts of

performance, enabling kayakers to go farther and faster, make bigger moves and

run harder rapids. Carlisle® paddles and oars delight a wide range of consumers,

manufacturing paddles for canoeing and kayaking and oars for rigid-hull and

inflatable boats.

Extrasport® life vests and accessories provide unparalleled fit, feel and function,

meeting the demands of fierce competitors as well as people enjoying a serene

afternoon on the bay. Together, our brands free paddlers to focus on the beauty

of their own personal adventure.

Extrasport® riptide™ Pfd

Extrasport® personal flotation devices

have long been the most trusted on the

market, preferred by rescue experts

everywhere. Thanks to our patented

Retroglide™ adjustment system, they’re

also the most comfortable.

Starting this year, Extrasport® will

incorporate Retroglide™ into every PFD

it offers. The easy-to-use adjustment

system eliminates the need for

rigid buckles and straps along the

shoulder and neck, so wearers enjoy a

comfortable, custom fit.

2007 Johnson outdoors paDDLING

24 25

2007 Johnson outdoors DIVING

a D D E D D EpT H H E I G H T E N S S

aL E S

New-to-the-world products and the successful acquisition of a popular German dive equipment

provider led Diving to a 13 percent net sales increase in fiscal 2007.

With feature-rich Galileo™ dive computers, uWaTEC® is creating the kind of revolution associated

with the line’s scientist namesake. SCubaprO®, renowned since 1963 for breakthrough gear,

further advanced split-fin design with the new Twin Jet Max, delivered improved second-stage

regulator performance with the new G250V, and set a new standard for diving comfort with the

Everflex™ wetsuit. and the april 2007 acquisition of Seemann™ Sub expanded our presence and

profitability in Germany, fueling a 180-degree turnaround in Europe.

In-depth technological capabilities and consumer insights drive sales—because divers at all levels

know they can rely on our brands for the highest quality and comfort in dive equipment, freeing

them to enjoy the ultimate underwater experience.

26 27

2007 Johnson outdoors DIVING

uWatEC® Galileo™ dive computer
The first dive computer to integrate heart rate

monitoring, the Galileo™ also features digital

navigation, patented technology to monitor up

to four divers’ tanks, and software upgrades

that can be downloaded from the web.

GL Ob aL Ma rK E T I N G uN C O V ErS

W OrL D O F Op pOr

TuN I T Y

Marketing to the elusive dive consumer is like finding the perfect dive

Our close connections with consumers yield insight for breakthrough

spot, reaching a hidden pocket of riches through insight and skill.

products—like the uWaTEC® Galileo™, on track to be our most successful

“Only a small percentage of the population dives,” says John Schoene,

Global Marketing Director for Diving. “We make sure they can find

our products where there’s good diving water—the Caribbean,

the red Sea, the pacific Islands.”

Specialty dive shops around the world are the key point of consumer

contact. “They create communities where divers not only get

equipment and training certifications but also share stories and learn

about interesting dive opportunities,” Schoene says. The Diving group

supports these influential dealers with product and technical training,

dynamic merchandising and event organization.

dive computer launch ever. The first dive computer to integrate heart

rate monitoring, the Galileo™ also features digital navigation, patented

technology to monitor up to four divers’ tanks, and upgrades that can

be downloaded from our website.

Schoene says the website is another doorway to opportunity.

“Our target consumer uses the Internet to research and talk about

new products,” he says. “Where they go, we go.”

28 29

2007 Johnson outdoors DIVING

30 31

2007 Johnson outdoors CaMpING

C O O L G Ea r H Ea T S u p Ma rK E T

Whether you treasure hang-out time with your family

attention-getting innovation among these brands drove

or measure hang time with your snowboarding buddies,

double-digit growth this year in Outdoor Equipment’s core

our Outdoor Equipment brands gear you up for the

consumer segment. Eureka!® N!ergy™, the first wired tent,

great outdoors.

Eureka!® creates top-quality tents and sleeping bags for

backyard campers, global explorers and the u.S. military.

Silva® compasses have guided hikers for generations. and

Tech4O® leads boldly in developing digital instruments to

measure personal performance.

garnered significant media coverage plus “best of year”

honors from reserveamerica™. The Tech4O® air pod™, for

skiers, snowboarders and skateboarders, was named a

top innovation by Popular Science. and the Silva® polaris™

compass was deemed essential “Guy Gear” by Boy’s Life,

the magazine of the boy Scouts of america.

2007 Johnson outdoors CaMpING

LEaD ErS H Ip

Spa N S C E N Tu rI E S

In 1899, Eureka!® canvas covers sheltered american

frontiersmen in their Conestoga wagons. In 1999, Eureka!®

tents made another of their historic trips to the top of

Mt. Everest. Wherever our products appear in 2099,

they’ll be helping people enjoy life outdoors.

Eureka!® creates superior camping tents, sleeping bags and

outdoor gear for the boldest explorers and the greenest

campers. Our commercial tent division was the first to offer

breathtaking, full-scale tension tents for weddings, festivals

and other outdoor events. and we proudly meet the

challenge of producing tents and accessories to shelter

u.S. military personnel in a full range of environments.

Our team’s deep insights into consumer needs and desires

yield continuing innovation—and keep Eureka!® a timeless

market leader.

r E S Ea rC H ErS W OrK T O I NCrE

a S E FuN

How can we help people have more fun outdoors? That question drives Joe Wiegand,

Director of research and Development, and his Outdoor Equipment Group team on

their hunt for the next breakthrough.

“We research intensively to understand what people desire, what’s on the market,

what technology exists,” Wiegand says. “Then we find a way to do it better.”

That includes finding partners, like power pack experts to help with Eureka!® N!ergy™

tents, and a German accelerometer designer for the Tech4O® air pod™. It can also

mean reinventing familiar products—for instance, using proprietary rteq™ fill to

create lighter, warmer sleeping bags shaped for the female form.

Such breakthroughs keep the business growing. Says Wiegand, “Even in a tough

market, innovation is the pillar of success.”

From a 1977 stop in western Ireland through a backyard

overnight with his two daughters this year, Desmond McGlade

camped literally all over the world in his Eureka!® Timberline

tent. “The old girl finally gave in,” McGlade says. “She finally

said, ‘I’ve given you 30 years of faithful service… Farewell,

my friend.’”

34 35

2007 Johnson outdoors CaMpING

N !ErG Y ™ T E N T S

G E N Er a T E b uZ Z

Family campers want to cushion their getaway with the comforts

of home—and Eureka!® delivers with its popular N!ergy™ tents.

These first-ever fully wired tents draw on the clean, quiet electric

power of the portable E! power™ battery pack. Campers can read,

watch movies and play video games while keeping music players

and cell phones charged.

N!ergy™ sales helped catalyze double-digit core consumer sales

growth for the Outdoor Equipment Group in 2007. Eureka!® is

building on this successful launch with a new line of E! power™

accessories, such as a wet/dry vacuum that doubles as an air pump.

36 37

2007 Johnson outdoors CaMpING

EurEKa!® n!ergy™ tent
With E! Power™ battery packs, three

outlets and on/off switches, N!ergy™

tents offer the coziness of home.

tECH4o® traiLeader 1
The TraiLeader watch uses accelerometer

technology to measure speed and distance

precisely, and offers a host of features for

walking, running and exploring.

ME a Su rE S O F TrIuMpH

Hardcore outdoor adventurers who want to know

how far and how fast they’ve traveled, as well as

weekend warriors seeking to stay on track for fun,

turn to our Tech4O® and Silva® brands.

Tech4O® digital performance products deliver the

power of knowledge. runners, skiers, snowboarders,

skaters—anyone moving through time and space can

measure speed, distance, calories burned, heart rate

and more. Our products succeed because they’re

easy to use, satisfyingly accurate and stylish, all at a

sensible price point.

Silva® underscores Tech4O® innovation with nearly

65 years of outdoor innovation, creating compasses

known for unsurpassed accuracy. The combined

power of our brands this year drove double-digit

growth in Outdoor Equipment Group core consumer

sales—a measurable success indeed.

TraI LE aD E r WaTC H
p u T S a C C E L E r O M E T E r
ON T H E W rI S T

Hikers, runners and walkers can set their

ankles free. The new Tech4O® TraiLeader

watch delivers precise speed and distance

measurements, using built-in accelerometer

technology. The rugged watch also includes

an altimeter, barometer, compass and

thermometer—everything necessary for

trekking through the wild or walking the dog.

Easy-to-use features include calorie and step

counters, pace, time, date, stopwatch and

alarm features, all in a compact, durable case.

38 39

2007 Johnson outdoors CaMpING

bE H ErE

Johnson Outdoors is the place where our founder Sam Johnson’s legacy lives

on, where we celebrate his love of the outdoors, passion for the environment and

entrepreneurial spirit. Here is where our Chairman and CEO, Helen Johnson-Leipold,

leads us in bold innovation across our global organization, delighting consumers and

driving long-term, profitable growth. Here is where our people-focused values create

a climate of caring that extends to our neighbors and communities.

40 41

2007 Johnson outdoors aNNuaL rEpOrT

V aL uE S, pO L I C I E S Su p pOr

T Ou r pE OpL E

The Johnson family legacy lives on in our

The result is an environment where employees

commitment to our employees’ well-being.

care for each other and extend that care to the

We pursue “best place to work” programs that

community—another Johnson value. We promote

support healthy lifestyles, continuing education

employee involvement in hundreds of volunteer

and, of course, the pursuit of fun and adventure

efforts, such as school reading programs, family

in the outdoors—on the job and off. From health

resource centers, drug awareness programs and

care to profit sharing, benefits begin on day one

shelters for women and children.

of employment. Employees can care for mind

and body through fitness center memberships

and 100 percent tuition reimbursement. Families

gain support through programs such as flex time,

elder care assistance, adoption assistance and our

Sons and Daughters scholarships. professional

development is a top priority, leading to an

amazing 53 percent internal promotion rate.

This year, Chairman and CEO Helen Johnson-

Leipold participated in her first triathlon, finishing

second in her age group. Her primary purpose was

to encourage all our employees to get outdoors

and get healthy. That balance and sense of fun

permeate Johnson Outdoors, making it the place

where employees want to be.

big fish to fry

Comfort from home

Let us help

a notary in need

Dan Kuenzi, Director of Global Sales for

When the boxes start piling up at

Facing aggressive cancer, Sandra

Steve and Diane barth knew they

the Johnson Outdoors Marine Equipment

the SCubaprO® offices in El Cajon,

France’s mother, Janet Venegas,

could count on Johnson Outdoors

Group, tightens his apron and drags a

California, it means good things for

needed a ride to radiation sessions.

for adoption reimbursement assistance

slab of perch through his secret-recipe

u.S. troops overseas.

but a van to accommodate her

and travel leave. Then Steve, a Senior

wheelchair would cost $170 per trip.

programmer/analyst, discovered an

breading. Nearby, Floyd Wilkinson,

JO Human resources Director, and

Kelly Grindle, Group Vice president,

Marine Electronics, pull crispy fish

from two bubbling fryers.

The executives are serving JO

employees lunch at the 8th annual

Dan Kuenzi Fish Fry.

Over the last four years, the plant’s

40 or so employees have sent care

France’s Johnson Outdoors

packages twice a year to four u.S.

co-workers donated money to cover

army platoons in Iraq and an air Force

the transportation plus a home lift chair

platoon in afghanistan.

and hospital bed.

“We try to include all the comforts of

after 14 months of care, including

home: snacks, magazines, games and

removal of a 12-pound tumor,

video games, bath products,” says

Venegas is cancer-free.

Every fall, the team sets up outside

richelle pizl, Customer Service Manager.

JO’s downtown headquarters, braving

“We want them to know they’re in

rain, cold and even snow to fry enough

our thoughts.”

fish for 100 people.

France, a JO Executive assistant,

remains amazed at her mother’s recovery

and the outpouring of generosity.

pizl suggested the program when

“Mom always gave to people who had

Kuenzi started the tradition when

she worked with purchasers from

less,” France says. “Now, thanks to the

employees fished from a stocked pond

SCubaprO®’s military accounts.

help we got, she’s alive.”

during lunch hour, though the “catch”

“They had loved ones overseas, and I

now comes from a downtown fish

started thinking about how we could

market. “The whole point is to bring

help. The response here blew me away;

everyone together,” he says, as he

it reminds me why I work here.”

reaches for another slab of fish.

extra time-saving benefit. “physician’s

statements, employment records,

references…all had to be notarized,”

Steve says. “and JO has several

notaries on staff.”

With paperwork approved, Steve and

Diane spent three weeks in China and

brought home a 14-month-old daughter.

Like her parents, Samantha roseanne

Chunmei, now a bubbly 4-year-old,

knows it’s good to have people you

can count on.

Says Diane, “at first she’d wake up

and we’d see this terrified look in her

eyes: ‘Oh, no, they’re still here.’ but after

a few days, she’d open her eyes, and

you could see the relief: ‘Oh, good,

they’re still here.’”

42 43

2007 Johnson outdoors aNNuaL rEpOrT

2007 MPM CLIMate ChanGe eXhIbIt
Our commitment to the environment included

sponsoring a traveling exhibit on climate change

at the Milwaukee Public Museum.

J O H N S O N OuT D O OrS

T H E E N V IrO N M E N T

supporting stewardship

Green in your hands

as part of the Johnson Outdoors commitment to

You’re holding yet another example of the

sustainability, we offer gear and guidance to groups

Johnson Outdoors commitment to “green” practices.

promoting environmental stewardship.

This annual report is printed with environmentally

Extrasport® products were used when the Cornell

Lab of Ornithology and The Nature Conservancy

searched the arkansas Mississippi river Delta for the

ivory-billed woodpecker, long thought to be extinct.

We’ve also contributed Extrasport® pFDs to the

Waterkeeper alliance, chaired by robert F. Kennedy, Jr.,

for efforts to protect the pacific Northwest’s Columbia

river. The Waterkeeper alliance promotes stewardship

of waterways and their communities worldwide.

Our own manufacturing processes also emphasize

environmental stewardship. Our complete line of

consumer pFDs, for example, will now be crafted from

100 percent GaIa foam, making them pVC-free.

Ou r p a r T N ErS

aIDS resource Center

american Cancer Society

american red Cross

big brothers and big Sisters

breast Cancer research Fund

Cornell university – Center for Entrepreneurship

Family Friendly Workplace Institute

Fishamerica Foundation

Fishing Has No boundaries

Focus on Community

Gathering Waters

Habitat for Humanity

friendly soy-based ink and includes post-consumer-use

recycled paper. It was produced using Green Seal-

certified products and renewable energy sources. by

choosing these printing and production methods, we

help promote wise stewardship of our natural resources:

Homeless assistance Leadership Organization (HaLO)

• 4.88 trees preserved for the future
• 14.08 pounds water-borne waste not created
• 2,071 gallons of wastewater flow saved
• 229 pounds solid waste not generated
• 451 pounds greenhouse gases prevented
• 3,453,720 bTus energy not consumed
• 1,563 pounds air emission not generated
• 3,719 cubic feet of natural gas not used

Climate Change show calls everyone to act

This year The Climate Change Show came to the

Milwaukee public Museum, with Johnson Outdoors a

key local sponsor. The multi-sensory theater experience

and interactive exhibits help kids and adults explore

the concepts of climate change and understand how

everyone can make a difference. We also funded a

daytrip to the exhibit by students from the 21st Century

preparatory School, an independent public school of

Junior achievement

Maine river Coalition Canoe Hullabaloo

Max McGraw Wildlife Foundation

Milwaukee public Museum

Next Generation Now

Opportunities Industrialization Center

project Graduation

racine Zoological Society

relay for Life

river alliance of Wisconsin

river bend Nature Center

root pike Watershed Initiative Network

Take a Kid Fishing

The big Fish

The prairie School

united Way

urban Ecology Center

Waterkeeper’s alliance

choice for racine’s diverse student population.

Women’s resource Center of racine

and many more...

44 45

2007 Johnson outdoors aNNuaL rEpOrT

MaNa G E M E N T pErSpE C T I V E

solid growth, increased sales and earnings mark 2007

In 2007, successful acquisitions, winning innovation and European expansion catalyzed

record sales and improved earnings that outpaced our industry.

• Recently acquired Humminbird®, Cannon®, Lendal® and Seemann™ brands
represented a third of the year’s revenue growth.

• New products accounted for 30 percent or more of total company net sales

for the fourth consecutive year.

• Europe has become a high-growth marketplace with significant white space

opportunity for every business.

although one-time items last year and this year resulted in an unfavorable operating

profit comparison, net earnings continued to grow.

We are on an accelerated growth curve, with record-setting market demand for our

products resulting in increased inventory and working capital levels. Going forward,

we will manage growth efficiently by further strengthening operations, streamlining

business processes and fully leveraging assets to grow profits faster than sales.

Over the past five years, we have created positive marketplace momentum for our leading

brands, and built a strong foundation for sustained profitable growth. as a result, today we

have the financial capability to both invest in the future and return a portion of earnings to

our shareholders through quarterly dividends. Our confidence in the future is matched only

by our excitement for the journey that lies ahead.

Thank you for your continued support.

Sincerely,

Shareholder Return
Outperforms Competitive Peers*

Marine electronics net sales rose 20 percent, as innovative new products captivated the market.
Humminbird® and Cannon® have rapidly exceeded expectations, and Minn Kota® is our first $100

million brand.

Watercraft sales increased three percent, driven by well-received paddlesport innovations and
double-digit growth in key international markets.

diving achieved a 180-degree turnaround in Europe with the addition of Seemann™ Sub and a
successful new dive computer launch, increasing net sales 13 percent.

outdoor equipment saw double-digit growth in core consumer sales, partially offsetting the
expected decline in military sales. Consumer and commercial tents continue to generate

positive momentum.

Sales & Net Income (Millions $)

*Johnson Outdoors Operating Results

Net Sales

Gross Profit

2005

2006

2007

$380,690 $395,790

$432,060

$156,354

$165,216

$174,883

Operating Profit

$15,644

$20,625

$17,939

Diluted Earnings Per Common Share

$0.81

$0.95

8,795

9,161

$1.00

9,254

Diluted Average Common
Shares Outstanding

Capitalization

Total Debt

$50,800

$37,807

$42,806

2007 Growth
Percentages

GROWTH IN TOTAL
COMPANY SALES

12%

GROWTH IN CORE
CONSUMER BRANDS

GROWTH IN
NET INCOME

helen Johnson-Leipold

david W. Johnson

Chairman & Chief Executive Officer

Vice president & Chief Financial Officer

* 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 September 30, 2007.

Certain matters discussed in this report are “forward-looking statements”
intended to be covered by the safe harbor provisions for forward-looking
statements contained in the private Securities Litigation reform act of
1995. please see “Forward Looking Statements” in the 2007 Form 10-K for
a discussion of uncertainties and risks associated with these statements.

46 47

2007 Johnson outdoors aNNuaL rEpOrT

Shareholders’ Equity

$166,434

$180,881

$200,165

Total Debt to Total Capitalization

23.4%

17.3%

17.6%

$100 invested on 9/27/02 in stock or index-including reinvestment of dividends. Fiscal year ending September 28.
I N N O VaT I O N D E L I V E r S
I N DuS Tr Y- L EaD I N G rE SuLT S

Our Innovation Engine

C Or pOr a T E G O V ErNaN C E

bO a rD O F D Ir E C T OrS

C Or pOr a T E O F F I C ErS

Johnson outdoors employees, investors, business partners and consumers

can rely on our passion for innovation, quality—and integrity.

Our corporate governance statement includes our Shared Values, describing the

principles that guide us in working toward our vision, and our Code of Conduct,

describing how we act on those principles every day.

We are dedicated to the well-being of our people, to delighting our consumers

and to responsible leadership in our industry. and it all starts with our deep

commitment to do the right thing. Laws may change, market conditions may

change, objectives may change, but our values will never change.

Johnson Outdoors is in full compliance with SEC financial disclosure regulations

and meets or exceeds all corporate governance standards. To review our Shared

Values, Code of Conduct, Corporate Governance Guidelines, board of Director

committee charters and other corporate governance documents, please see

www.johnsonoutdoors.com.

Growth 3x Faster Than Industry

Net Sales & New Product Contributions (Millions $)

helen P. Johnson-Leipold
Chairman of the board

Director since 1994

Chairman & CEO,
Johnson Outdoors

Chairman,
Johnson Financial Group
Johnson Foundation

Director,
S. C. Johnson & Son, Inc.
Johnson Diversey, Inc.

John M. fahey, Jr.
Director since 2001

president and Chief
Executive Officer and
Chairman, the Executive
Committee of the board
of Trustees of the National
Geographic Society

Director,
Jason Foundation
for Education

W. Lee McCollum
Director since 2005

Executive Vice president
and Chief Financial Officer,
S.C. Johnson & Son, Inc.

Director,
Johnson Financial Group
Sigma-aldrich Corporation

thomas f. Pyle, Jr.
Vice Chairman of the board

Director since 1987

Chairman,
The pyle Group

Director,
Sub Zero Corporation

terry e. London
Director since 1999

president,
London partners, LLC

Director,
pier 1 Imports, Inc.

edward M. Lang
Director since 2006

president, business
Operations and
alternate Governor,
the Nashville predators

Director,
Nashville’s adventure
Science Center and
Nashville predators
Foundation

helen P.
Johnson-Leipold
Chairman & Chief
Executive Officer

david W. Johnson
Vice president &
Chief Financial Officer

alisa d. swire
Vice president,
business Development
& Legal affairs;
Corporate Secretary

John C. Moon
Vice president &
Chief Information
Officer

sara M. Vidian
Vice president,
Human resources

Cynthia a. Georgeson
Vice president,
Worldwide
Communication

kelly t. Grindle
Group Vice president,
Marine Electronics

William s. kelly
Group Vice president,
Outdoor Equipment

Mark e. Leopold
Group Vice president,
Watercraft

Joseph b. stella
Group Vice president,
Diving

48 49

2007 Johnson outdoors aNNuaL rEpOrT

for more information contact:
Johnson outdoors | Cynthia Georgeson
Vice President-Worldwide Communication
262.631.6600 | cgeorges@johnsonoutdoors.com