JOUT - Earnings call transcript Q1 2021

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Operator

Hello everyone and welcome to the Johnson Outdoors First Quarter 2021 Earnings Conference Call. Today’s call will be held 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 recording our Your

not terms, the to the you Outdoors. agree If do Ms. ahead, these Patricia from would Penman. like Please go to line. now simply to over turn call Penman Johnson I off drop

Patricia Penman

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

a news Relations. release, at you also it the not Actual available our beyond are future views performance. If of many current need you the guarantees website Investor risks copy materially made and Johnson our events Outdoors’ on are Exchange may control. statements. from and remind uncertainties releases of johnsonoutdoors.com Securities to today’s under in of due listed number conference and include contain I a need those Commission. our on These factors, this These of assumptions is differ and with that to filings and press may those basis forward-looking statements statements

Johnson additional over have Dave please to contact the now me. Johnson-Leipold. to It the is Helen call, you questions, my call following pleasure If or turn

Helen Johnson-Leipold

and comments Thanks will and thank joining Good begin highlights, for and with financial review morning Pat. priorities going I'll your take on questions. us. quarter this Dave performance you outline forward, then we'll

weather inventory continued anticipation the year. that replenish pandemic, the strong COVID-XX fiscal levels depleted the of the remains driving for impact our sales season. warm the in of and began products during reflect second outdoor demand in customers upcoming demand First recreation fiscal half their recreational quarter Consumer quarter XXXX high of

of demand prior Operating Dave favorably million compared will diluted $X.XX year first per per $XXX.X up $X.XX which of share. XX% $XXX.X $X.X million million year's high we sonar diluted view continue rose on $X.X anglers in million share, quarter. award-winning details million quarter's his -- degree and for of on draws and profit Fishing, in with innovation sales both prior to year the or MEGA to the net across experience. the remains the million with quarter previous versus continues provides In income to income its XXX Net on all $XX.X the anglers year results detail versus coverage, significantly quarter seasoned very a was XXX was in that largest imaging, in provide the legacy and more powerful that high only an to a Johnson period. market. or $XX.X Hummingbird's first unmatched resolution new our do business, unmatched fishing a remarks. First well second to great Outdoors option build brands

of to sides Before were below a sonar their limited MEGA XXX, anglers or view boats the while moving. either to

your boat anglers make provides the imaging in it below. Kota of in XXX, the command MEGA behind them, and XXX cast used and Minn to MEGA an can boat an fish of accurate front effortless uncompromised Spot-lock if with of anchored. with When any direction is with anglers in technology, Now, either together view is an side even world

shallow and to and We Raptor to Kota also Hummingbird from are continue screen new Hummingbird networking by Imaging+ clear giant large boasts of needs. technology rounds offering ultra-bright visibility fish shallow being The HELIX variety provided boat with water their screen enhance we finders conditions inch navigation in a out is firmly Cannon in positive recently model active momentum our in the sonar of enable enables screen unit. that keep best offering our sizes anchor two place, and for water easily the continuing shallow ultra to monitor In to latest and Minn directly only to integrate HELIX a ensure the and enabling communicate details crystal generation network, MEGA boat the bottom motor, Kota, matter SOLIX Raptor innovative Talon of situation anchors technologies. and products Hummingbird very our encounter. that The along trolling the see they award-winning auto anglers' Downriggers water feature constantly water is fit HELIX looking that anchor. to product imaging fish shipping can screen mode, in providing the fishing model that and ways Minn the water to we the the with the anchoring bottom anglers anglers Series exclusive a finders. one their with technologies, HELIX of started XX.X which and Hummingbird's there shallow to big sales new are automatically control anchored XX, no a Raptor of what industry-first with anchors, display the connected is XX any

made Watercraft Minn most was of year. hands Kota technology saw to technology, leadership motor safely in is fishing the momentum Eureka! understanding in propel, system while with surge systems, the for stoves called Sportsman tents exciting our to backpack the brands diving. is we Eureka! hard and of in the is work Spot-lock able Jetboil anchor remains brand and OLD been travel restrictions, Town on outdoor installed people and market. for participation power, and Sportsman to Stash new anglers has online enthusiasm across trusted flagship positive activities excited ever portable a more continued enabled GPS outdoor year the the continues technology lightest innovation consumer recently steer, benefited support kayak paying its we from the that be hit paddle, and to Demand in and free line, of the continue that leader this trolling for off. SCUBAPRO in lines world a the demand model We cooking soon. launched destination diving have our expectations its are priority fishing. all-in-one fishing our have and in Line most our Autopilot second just innovation The the the accessible utilizes by products Camping and both with very award-winning impacted newest new our and and pipeline. work product one sustaining the position to paddle launched Jetboil, and strong the do kayak of ahead technology the Jetboil Looking In unique continues Recreation, hope XXX providing innovative dive top new we Stash. to of the last have and market the our promote shelves retail and activity is and continuing in we’re kayaks The fiscal local market Sportsmen exciting that to Line all target beat

eager still -- will COVID-XX strong was and while and will our taking simplify it ahead e-commerce. the challenges indications focus unprecedented uncertainty and brings challenging during European are business is globally websites with ensure continues that an digital future. time, team the steps to position to investing While to the pandemic Diving good on people strong These in to in through. efforts innovation will a and new this SCUBAPRO our are season we to to enhancing our presence be good continue start be year outdoors, for work get It a

pace heightened on continue well brands as Looking innovation market-leading the to to ahead, leveraging focus and we demand, in outdoor our will keeping recreation. with driving as maximize interest

and in growth. identifying growth sources, markets, our all to ongoing investment as profitable innovation and consumers more well purchase path sustaining key of digital as delivering leadership, towards and Our our of more into online, new ensuring consumers, optimizing progress research our understanding goal experience our as sustained are consumer

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

David Johnson

Helen. morning everyone. you, Thank Good

XX.X% Watercraft in rate the had product quarter, chain sales improved an of tax As of offset by first in volume into we as income Camping, $X.X favorable quarter. from fixed up deferred Helen versus supply quarter, in to year’s Gross Net for possible. adding The driven by and our year to the completely is was came approximately significantly income increased conditions been and by the compared Recreation to gain where higher sales to higher points more rate a X.X due was year which Operating million can, prior impact Operating profit current market compensation Fishing, primarily on primarily hard a year-over-year. of year much absorption last demand mix. working related XX.X% higher increase up assets strong margin mentioned, marketing $XX.X the capacity to produce company’s expenses growth $X.X of our million the first a to volume-related in effective and deferred to expenses year’s of This the businesses. shifts rose cost compared due driven the last market. as quarter, with first We’ve to we resulted we compensation is including managing our quarter and expense was fiscal million in assets. prior XX.X%. other fiscal plan

inventory. tax year higher to and be in due last full mid-XXs. capital working the to Net quarter increased is versus rate expect We receivables first year’s the up

we’re strong our actively with to others continue supply seeing risks industry, chain. we While manage like demand, associated the global in

our strengthen as Our to our will position advantage competitive healthy balance investments cash value smart for is the continue shareholders. and to and drive strong business a sheet provide make we

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

Operator

Instructions] Sidoti Lebiedzinski Company. & from question from first [Operator Your Anthony comes

Anthony Lebiedzinski

thank good questions. morning you and the Yes, for taking

So, impressive certainly, performance. yes,

topline, to So, could sense the with start you you versus a volume as looking us If ASP? at give that, can just the please?

David Johnson

volume It’s hi. actually at Anthony, Yes, quarter, for least. than related the more ASP unit

a in of products. increase both volume, high-priced lower-priced, kind seeing We’re based mid-priced, broad

of it hasn’t ASP a for the been least at So, ton enhancement. quarter,

Anthony Lebiedzinski

it. Got

that. Thanks Dave. Okay. for

So, the rate recreation? also, wondering the outdoor about you’re in to customers sense your consumers and in season. do for participation that upcoming from as many new have a market growth looking the like to sense the Just entered how engage you guys

Helen Johnson-Leipold

data Well, by as business. very participation at have specific a it’s far getting as of that and we don’t way different rate,

consumers existing as there It’s could as and in. seen consumers, can’t that that I all say participation well we give coming you So, think across that active growth answer. are by more outdoors we’ve assumption in, we spaces our that the new

feel data but there participants some some which until a sources, definitely get that in the board. this truly are from at new it’s point, think across assumption, the we time, syndicated So, I we have participation market lag

Anthony Lebiedzinski

Okay, got hear. Good to it.

fish product yes, as you -- the the as others. far as examples mentioned and as some So, innovation, far finders and some new

excited particularly of you So, new there product going than is when I for this kind where and than is or be look other about upcoming season, usual of mean, typical if new you’re kind the products products that to category, introducing finders any would of you’re you fish say introductions? the new at the more pipeline one

Helen Johnson-Leipold

Well, a talked we’ve business new and in of got products this I Fishing, about for and a we every think, year those. is solid few

it’s past. every think and any have to the business the of don��t something part on depending doing I just It’s us innovate than So, new we category. and different try year

Anthony Lebiedzinski

Got it.

Okay, perfect.

you far can you first give details -- your bit fiscal didn’t to as quarter, constraints, the as some us it seeing there? it like just chain then more you’re what -- obviously, And details can impacted little your Okay. supply what more look about as but

David Johnson

time. electronic getting about, like containers everyone’s particular, I Asia logistics and seeing we’re and as then heard and of on difficulty for of shipping in other mean, the product getting a companies, out here some port longer a lot Yes, of constraints lead-times lot components,

So, right we’re into hasn’t manage. But the now, in we’re think this and season necessarily to looking to just, It okay we us something I affected trying actively currently. seem be is shape.

Anthony Lebiedzinski

it. Got

All right, well Best of you. thank Okay, luck. perfect.

Helen Johnson-Leipold

Thank you.

Operator

would Ms. at I further time. no back [Operator conference to are Instructions] Johnson-Leipold. turn questions like There the this to Helen

Helen Johnson-Leipold

us you you. today. and have everyone Thank a you stay for stay you great healthy, Thank joining hope day. safe, Hope

Operator

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

now disconnect. may You

Johnson Outdoors (JOUT) 5 Feb 212021 Q1 Earnings call transcript