JOUT - Earnings call transcript Q1 2020

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Operator

Hello, everyone, and welcome to the Johnson Outdoors First Quarter 2020 Earnings Conference Call. Today's call will be led by Helen Johnson-Leipold, Johnson Outdoors' Chairman and Chief Executive Officer. Also on the call is David Johnson, Vice President and Chief Financial Officer.

Prior to the question-and-answer session, all participants will be placed in a listen-only mode. After the prepared remarks, the question-and-answer session will begin. is call This Instructions] being recorded. [Operator

implies participation consent to call. this of recording our Your

not these agree off do you If to the terms, line. drop simply

to Outdoors. I Penman Penman. now like turn call would to from go Please over Johnson ahead, Ms. the Patricia

Patricia Penman

everyone. Good for you of morning, our XXXX fiscal joining for Outdoors' results Thank the for first discussion Thank you. us Johnson quarter.

of johnsonoutdoors.com is available website at under If Relations. it you on release, need today's news a Investor copy our

contain include assumptions may statements. materially beyond our press you those of those of from future that not the to due this are I on release These guarantees events factors, also need and made differ call statements filings Johnson to a and remind These our conference many control. with Exchange current and Commission. of number uncertainties listed may forward-looking Outdoors' the basis Actual Securities views performance. in statements and and risks are

Johnson please additional have you If Dave questions the call, contact or following me.

now It Helen my over to the Johnson-Leipold. call is to turn pleasure

Helen Johnson-Leipold

Good you for quarter then with this take financials, performance priorities review Thank outline questions. will I'll us. your key Dave on the and comments for we'll begin key year joining ahead. morning.

quarter the quarter, preseason our fiscal this recreational the in industry selling is up weather During first for mode selling during reflect warm quarters. the in third Sales outdoor period ramp customers. primary for preparing second and

spring. in will We initial the see takeaway consumer begin to

the on million quarter of We first which the what favorably remarks. million share, million operating Net factored quarter to quarter's $X.X diluted prior the first profit XX% This in details the year, will previous his in very million $X.X year's was per period. net $X first $X.X results or $X.XX Dave quarter. a more share. $X.XX into provide per $XXX.X diluted sales income or rose posted year compares million income versus in versus to prior year million $XXX.X of

year. in continued rest essential fiscal position fiscal focus insights, year. priorities the intense to We're sophistication, ongoing benefiting consumer from start the innovation and our success positive investments the are richer these throughout of digital a Overall, targeted accelerated for our brands to in

An ongoing profitable year-over-year been XX% for with as knowhow new Outdoors. engine up understanding the for technical comparison. to period, with have of business, in key coupled quarter Fishing Fishing anglers the accounting sales our in sustaining our year what year prior the growth versus of want, primary delay favorable product availability Johnson prior much are

shipping the innovation, view customers XXX-degree Humminbird's detail is latest began in MEGA that provides and so MEGA coverage. and first unmatched with far. response sonar Imaging, has quarter been the the high-resolution XXX favorable a Imaging award winning only option XXX

to their the Before boat MEGA was XXX, move anglers spot over what water. under know to have a

and front communicate catching accurate ways can of back together Minn fish. the to casts XXX, can seamlessly technology for make even on MEGA command with boat. any effortless Kota direction, products XXX looking they integrate Imaging is always boat more so if Fishing Now provides and with side, with We're in focus an anglers anchored. for anglers our their more Spot-Lock MEGA

make our to Our power finders. One-Boat than base an managing motors trolling of effective the of intelligence from been our presentation Minn We're the Network brand. boat, anchors with with Cannon and This Humminbird currently and easier the spring precision adding connects of downriggers optimum the ever. Kota's fish downriggers network will

power. control wireless instant connectivity, Our ease unstoppable unprecedented anglers fishing One-Boat and Network's gives and complete access, boat

priority is strategic Going investment our and technology our to top Fishing. continued long-term sustain market in forward, leadership

innovation creating segment also are positive insights Watercraft, both like key XXX in kayak PDL. gaining insight growing new successful to into our translating been has In brand and the we share driven businesses. Camping, fishing Watercraft consumer Recreation in deeper momentum Topwater richer innovation with In consumer

It of reverse provides boat thoughtful ultra instantly. and insights Consumer such ability stable pedal guided feature hands-free every management. control and anglers this rod with to as forward the on-board tackle

more can anglers on fish. the So focus capturing

targets why and shop their consumer wants identify with then year. and our greatest a business, to buy. that e-commerce us to And help for fits products have this fiscal digital so been e-commerce we're where products That's growth our with create potential solid our and investments sophistication in to insights sales these start off enable and far consumers Watercraft and and Insights critical a ensure needs.

to Watercraft We insight will and for a consumer enhanced marketing to business future. sustainable to and create profitable driven innovation business continue Recreation our invest digital the e-commerce strengthen in and

our to beginning to brands. in also reach the the maximize of leverage We're the from our brands to Camping Jetboil Eureka and work see strength and potential of reposition the core of to growth both benefits future

off. hard is and consumers is enthusiasts, tailored camp of innovations work And our Many powerful understanding for the and interesting new needs good for The Camping easily its to expectations. and themselves strong the Group. flame while growing stage next Ignite with our they're precise it. paying our eat especially loving in helps generation campers to food fast-start adjustment target create campers or among want stove in outdoor meals setting healthy, and cooking, Eureka their great

on Stove to Camp in continuing solid expectations. Demand for its market beat year Eureka's the Ignite remains second

grow, technology tech-savvy in with the position systems continues Additionally, a enthusiasts. portable to cooking outdoor us strong our giving Jetboil leader outdoor brand,

goal to to Our continue profitably Camping is to Business. grow hard our work

most global Moving Diving, business. our on to

on trends of growth e-commerce Positive in digital driven and quarter, drove been in Europe segment. sales This the the North marketing. our America have most in sales in retail higher by emphasis

track our this on marketing digital year. websites those European market, taking we're launch to with new to learnings Now

for is the well, work also regulators, we brand the SCUBAPRO. best doing Dive literally business, core further as and New products equity the our are to the life-support a and in support, strengthening deliver lifeline life diver core hard between airspores. critical competitiveness this

to natural you experience stage Regulator for the the abundant what comparable breathing DXXX with might performance best smoothness second new possible, above Our delivers flow air water. breathing the

easy to and for As gear, the experience, generating always, SCUBAPRO focus excitement on market. the not the new to it divers into our is Regulator DXXX aims make

with marketing, simplification trusted business remains brands. our along sustained will on forward, dive most our emphasis SCUBAPRO continued Going world's ensure the innovation digital of and model

In to fact, more our strong three to that but of positive, go. quarters start across we all have is business a off we're certainly

ahead, of will e-commerce. digital we leadership, and continue markets, to Looking innovation accelerated understanding, focus five in our drivers: on consumer paths strategic our sophistication sources sustained and key new growth

profitable Our well portfolio ongoing Outdoors. success work and in market-leading on brands we sustained is priorities growth for our that positioned ensures hard Johnson that deliver of continue long-term to for XXXX these

financial a the the review I'll call Now highlights. turn Dave over to for of

David Johnson

Good everyone. Thank morning you, Helen.

company improved quarter the over year. mentioned, total sales for As prior first the Helen XX%

While prior was sales the the total were first a company by in new up the revenue across of availability increase products primarily in Fishing. quarter delay year in all business units, driven

expense year Gross in period. the margin dipped prior an to slightly tariff versus increase due primarily

in tariffs trade result XXXX million the a and developments States we now Chinese on components China, recent of United between negotiations and as to mitigation impact well expect As fiscal profits. on as be the $XX goods of own our efforts, approximately

to approximately expenses, to in which the assets other the volume conditions compensation higher assets. of Operating asset resulted deferred higher completely $X.X quarter, markets in - expenses the in income million market. the current favorable related expense a on and rose impact compensation marketing the plan of deferred company's year to was gain market This related offset sales due by

for the Operating due The additional volume, profit increase fiscal fiscal the partially $X.X the rate income was expect to in quarter to offset first prior first tax the in versus costs. compensation mid-XX. XX.X%, year up million. we year Pre-tax be the quarter for the by and rate was sales tax up deferred the was

strong moderate growth the to year, fiscal year. the full While continue we're pleased to with the expect for start sales we

sheet cash in position pay dividend business, invest to to and cash while balance shareholders. strong continuing healthy Our us a enables our to growing strategically

over back Now session. I'll the operator for Q&A turn Operator? to the the call

Operator

Our question comes with line first Sidoti. Lebiedzinski Anthony Instructions] from the [Operator of

is line Your open.

Anthony Lebiedzinski

obviously a start to fiscal So strong 'XX.

segment, - upcoming seeing major from that are at light shelf new with? in competition, work partners the of space some terms just retail allocation just of Now core looking Fishing your from what curious, you in you your

Helen Johnson-Leipold

is they're Well, and you they going and shelf. are say are the they know keeping eye just but selling we're would obviously on on it it, I present be the you there. to know, period, an

but But right We you. when space competition the now, going in, certainly haven't comes exact impact, they with things well. they're sharing experienced are know automatically, you

Anthony Lebiedzinski

kind to of, you Diving the closed what turning should Now where but bottom are simplification you throughout know we I the on with your the segment, about are there. inning kind of business improvements world, think the potential there line. some how terms in offices of, you've process

Helen Johnson-Leipold

done some to very work continue good have work they and simplification. Well, we on

as SKUs the with do to has it in well. business of our Some

lot of a organization, So it's just opportunities. related not there is to other

line. So we It the is continue positively have to on impacting opportunities. bottom

have We forward. more going opportunities

Anthony Lebiedzinski

operating the your up, expenses, as the about those sort in of, of, the fiscal should we quarter. far Kind think year? the as rest how so the through expense were growth of also above And XX%

David Johnson

Yes, related. I growth of a mean, expense lot was the volume

with We So that decrease as may increase case volume to correlate had comp. the obviously with our or tend our thing expenses be. the weird deferred

So I would normalized operating of, rate going expense a forward. expect, kind

Anthony Lebiedzinski

far - any on thoughts of on updated cash? as your last, as And great. Okay, usage

Helen Johnson-Leipold

looking focused Again, internally now, some constant on. have But we're us it's externally. activity also right that opportunities great a for we

on things. there an -we're So eye out always we're always and keeping

we It's great I down turn don't buyer's opportunities. take are think not but them. there. look it's a still multiples that, at market, you again, know high a We

So we're active.

Operator

you. this questions time. any not at I'm Thank And further showing

Helen Johnson-Leipold

everybody I has a for operator. joining hope great I guess, and day. we everyone Okay, thank us,

Operator

conference gentlemen, and call. your concludes for today's this Thank Ladies participation. you

disconnect. now may You

Johnson Outdoors (JOUT) 31 Jan 202020 Q1 Earnings call transcript