RACINE, Wis., Nov. 18, 2010 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global outdoor recreation company, today announced it has amended the Company's credit agreements and, as a result, expects to reduce Fiscal Year 2011 borrowing costs by more than 15 percent compared to Fiscal Year 2010.
The highlights of the amended agreements include:
- Extension of the debt agreements through November 2014 versus previous termination in September 2012.
- Elimination of the LIBOR floor. Interest rate on the revolving credit facilities is currently based on LIBOR plus 2.75 percent. This compares favorably to the previous interest rate of LIBOR plus 3.25 percent and minimum LIBOR floor of 2.0 percent.
- An option for an additional $25 million in financing availability under the existing conditions of the agreements.
- Relaxed terms regarding permitted acquisitions.
"We are very pleased with our amended agreements having worked closely with our lenders to maintain rate adjustments which reflect the current lending environment as well as our improved position. Importantly, these changes in terms and financing limits enhance our flexibility to react and capitalize on marketplace opportunities. We remain diligent and focused on driving progress against our strategic plan to help ensure sustained profitable growth," said David W. Johnson, Vice President and Chief Financial Officer.
2010 FOURTH FISCAL QUARTER RESULTS
The Company is scheduled to release full year and fourth quarter results for Fiscal 2010 on Friday December 3, 2010 before market open. The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time that day to discuss the results. A live listen-only web cast of the conference call may be accessed at Johnson Outdoors' home page. A replay of the call will be available for 30 days on the Internet.
ABOUT JOHNSON OUTDOORS INC.
JOHNSON OUTDOORS is a leading global outdoor recreation company that turns ideas into adventure with innovative, top-quality products. The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft, Marine Electronics, Diving and Outdoor Equipment. Johnson Outdoors' familiar brands include, among others: Old Town® canoes and kayaks; Ocean Kayak™ and Necky® kayaks; Carlisle paddles; Extrasport® personal flotation devices; Minn Kota® motors; Cannon® downriggers; Humminbird® fishfinders; Geonav®marine electronics; SCUBAPRO® and SUBGEAR® dive equipment; Silva® compasses; Tech4O® digital instruments; and Eureka!® tents.
Visit Johnson Outdoors at http://www.johnsonoutdoors.com
SAFE HARBOR STATEMENT
Certain matters discussed in this press release are "forward-looking statements," intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are considered forward-looking statements. These statements may be identified by the use of forward-looking words or phrases such as "anticipate,'' "believe,'' "could,'' "expect,'' "intend,'' "may,'' "planned,'' "potential,'' "should,'' "will,'' "would'' or the negative of those terms or other words of similar meaning.Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results or outcomes to differ materially from those currently anticipated. Factors that could affect actual results or outcomes include changes in consumer spending patterns; the Company's success in implementing its strategic plan, including its focus on innovation; actions of and disputes with third parties, including companies that compete with the Company; the Company's success in managing inventory and its continuing efforts to implement sustainable cost-cutting and sales growth initiatives; the risk that the Company's lenders may be unwilling to provide a waiver or amendment if the Company were to violate financial covenants and the cost to the Company of obtaining any waiver or amendment that the lenders would be willing to provide; risk of future write-downs of goodwill or other intangible assets; ability of the Company's customers to meet payment obligations; movements in foreign currencies or interest rates; the Company's success in its on-going cost-structure reduction efforts; the success of suppliers and customers; the ability of the Company to deploy its capital successfully; adverse weather conditions; and other risks and uncertainties identified in the Company's filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
CONTACT: Johnson Outdoors Inc. David Johnson, VP & Chief Financial Officer Cynthia Georgeson, VP - Worldwide Communication 262-631-6600