JOUT - Earnings call transcript Q4 2021

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Operator

Hello everyone and welcome to the Johnson Outdoors' Fourth Quarter 2021 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 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. the recording our Your

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

Patricia Penman

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

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

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

Helen Johnson-Leipold

and from $XX XX% or the company improvement We grew and total fiscal review an to million, financial share, Thanks was share questions. your $XXX highlights and and will thank year. an XXXX, joining exceptional Good we'll begin the for year. diluted fiscal a performance with $X.XX on perspective morning, Pat. XX% results and million I'll our for revenue million, had overview profit Dave businesses. us. quarter $XXX the In I'll on you year-to-date net then prior income and take outlook then per XX% surged to

Diving and Camping, saw sales and Watercraft and recover year the third the our began Fishing, to in recreation fourth strong business quarters. Our throughout businesses

screen desire continued robust net year's all Johnson fishing as the total outdoors to investment reflects quarter, award quarter. performance Overall, fourth products year demand fiscal deep million, the across experience Humminbird possible. our this fuel product brand, rich Outdoors lines consumer look year value innovation, people winning our throughout that Imaging last demand, recent to Imaging and Live structure In the business, to MEGA versus in in most company possible. best In in innovative as strong largest clarity bite fish they anglers was anglers more. continued our our an experiences insight best an as to deliver the MEGA anglers and sales into see detail delivers outdoor sustained the in increase translating allowing real-time, $XXX our spend focus for the our and and were Fishing, of move of fish During watching which time live-action, the even

do the innovation strong on consumers retailers versatile and segment to Jetboil, leader. continue cooking industry quality, is part and backpackers, our And technology. continues MEGA have camping Live, anglers Minn the that giving together an to HELIX MEGA ice innovation, we've ability a year, Kayak to joining this winning is Salty line and outpaced to is ice systems strong the X in fishing Anchoring, Anchor Boat Fishing the the a kayak, Spot expectations. easily And has also Kota see enthusiasm all-weather And the Town Jetboil, motors fishing offers installed any can cooking backpack sport is anglers, grow recently the while hold integral popular which right are earlier market. Humminbird continues a MEGA the Imaging portable leader Stash technology and the hold. continuously density awarded Bottom Auto Mode ice From continues in Shallow the the and winning changing sports Imaging kayak in anglers lure anchoring some technologies, ice, launched trailers, ever year, The bottom trolling first the for leverages is fish and launched game ongoing for of for fishing and XXX year Sportsman Lock structure to superlight technology allows in in reacting our two Minn consumers Stash in Sportsman also Imaging Raptor all-in-one anglers In the gives in technology. in Minn locate what With the this and offered quickly Network Live line they full industry XXX MEGA autopilot In Fishing outdoor Old their leader to award award determine be more that motorized the reducing anglers to paddling of under so which enthusiastic the stove and to products our sister its the watercraft real-time we Kota, demand Watercraft Eureka pinning. and Autopilot Active bottom critical access and and beat work fishing water. about for last productive ice adjust moving excited our award of to below in detects year. first that our XXX Humminbird automatically command most technology stable platform, has we our Recreation, of boat. system lightest the the with MEGA our kayak of the weight on for its in monitors type Both Boat durability, effortless market fishing Sportsman The for cooking an enables release ice to winning made. to our complete in be In pedal-powered with experience, Camping, and technologies well which to motorized an innovative continues Water camp for unison, Kota position Minn XXXX. package Best launched Raptor was brand from XXX to anglers products the anchoring fish. force Kota leading industry-leading force One anglers Sportsman Live about understand magazines Autopilot

we start Finally, to Diving recover restrictions half in year. in a quarter. fiscal Diving pandemic-related the our margins begin strong latter from to had fiscal of see the business, fourth

the local focused innovation as brand working Our and enhance global strength this well trusted work as in SCUBAPRO's efforts, positive all these promote digital to help the diving position support are remain world. to our to with dive presence along growth. and We e-commerce ensure as most sustained on

possible us the chain. on We chain While have understand work continuing fill in without manage In dedication had to hard supply year, to have hard our our an remain employees we demand opportunities chain orders. the supply to our issues for invested of and who in addition wouldn't and incredible tirelessly product. manage work environment which the summary, to supply remains focused ongoing to and worked global taken the have help and unpredictable, exceptional meet time we been challenging capacity,

we continually our and ahead, challenges to consumer, which people our experience committed continue paths remain inspire everything there leadership, As company's to the to we continues key new and great generations optimizing to consumer drivers, innovation sources and digital guide our in markets, out investing our sustaining experience. do navigate of to our to and get understanding we is growth in identifying outdoors to strategic the come, purpose, for value

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

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

David Johnson

a to want Helen. Good quarter everyone. highlight the morning you, few year. I Thank of the items from

disruptions taken and up everything of four demand. including higher daily supply supply to our demand be is chain by inventory our Helen As continued that We've inventory raw doing ongoing businesses many on by XX% environment our levels operating last the mentioned, raw fill are to we're three and supply must XXX%. XXXX. in, secure sources chain managed we had possible Total Like companies facing and alternative actions components inventory than year fiscal material to through mitigate finding in strong are a basis. that in challenging challenges,

in efficiencies invested favorable mix. Despite raw dipped and addition, only In where capacity resources and material incremental gross and we've margins slightly product adding volume to freight costs, higher appropriate. due

XX% declined quarter. from be last actions. a margins the and prior and were the due is but the in up fiscal due to year we're we largely expenses mitigation percentage people as was XX.X% as XX.X%. gross as Net versus for Now, chain to Operating income issues of to year taking XXXX. prior tax supply costs, rate million, expenses, compared appropriate $XX.X volume-related pressured year's the to well expect $XX.X of headcount rate fiscal effective the near-term, million The higher increased it versus sales

the mid-XX%s. in rate Next year, expect the we to be tax

maintaining Looking and inventory focused supply pressures, ahead, chain higher demand normal remains managing levels meet healthy demand. to on than we're ongoing including

us strategic to balance Our sheet our strong enable paying the strengthen to shareholders. continues and invest cash healthy opportunities to in while dividends business, consistently to position

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

Operator

Anthony Thank first from question you. comes from Sidoti. Our [Operator Instructions]

open. is line Your

Anthony Lebiedzinski

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

first, across others? your category Dave, you in wanted outlook So, that just versus the mentioned is I yes, to board particular seeing the follow-up. stand categories? you one is all this that Or Are healthy. current demand out

Helen Johnson-Leipold

Yes, I'll question. take that

the across movement of our less growing the seeing the consistent, would far can -- Diving a get we say is tell, other with are but healthy positive we board, shipment amount one But tell, But the upward demand the certainly purchase across three I as far in point that have strong we limited we still as we business. is businesses We demand Diving. still little is -- very as see and but data, definitely that can as in we data. have of

Anthony Lebiedzinski

the something is new for perhaps you it, Got is COVID And else of is the variant or that okay. , that think? Diving because

Helen Johnson-Leipold

going as COVID negative to new No, travel-sensitive are from we're the -- and shut some travel but we've programs we of would well well, that's tend volume pressure and very some diving of in which a and COVID. the us that's help aftermath very resulting are I general still breakthrough for think business, local products gain launching got we down -- some

So, some that we in that rebound feel see continue good to will we business.

Anthony Lebiedzinski

where one hear. the think so more again, see kind than out as the Okay, expect pressure, others? across will we you a kind this you most of it of is see that's the great to hit segments margin or board to stand margins to then which should category And

David Johnson

I tends across of to but have pressure, I product, mean would are the where say kind that to more across we tend we board. importing it's the board. do

and we're it's pretty think sourcing electronic much that's most the Those good So a have them, from on the but some finished across pressure importing I to but we're Asia. tend answer, components product long board.

Anthony Lebiedzinski

increases price headwinds? to any And some done it, Got do of you price plan these offset do have okay. or you increases to

David Johnson

Yes, I and mean, offset. environment. we're price looking pretty dynamic have yes, to we, taken we a everything increases help at It's

take continue we won't to to to necessary. evaluate So, afraid we that appropriate where actions be and continue

Anthony Lebiedzinski

then do at Got it, the you have okay. retail? as a are And levels to sense inventory what

Helen Johnson-Leipold

inventory significantly higher is I be -- to because than it historically. it we as demand level -- continues been the been has

still and So, to a we've room lot to pipeline grow of got fill.

Anthony Lebiedzinski

it. Got

Okay, that's hear. just And housekeeping here. a lastly, great question then quick to

mid So, you'll to the expect XXXX? And or Should second for less just in for CapEx is you mentioned question that think you or the what be the you year throughout vary of part tax that kind fiscal much rate housekeeping be more will consistent? then XX%s.

David Johnson

seasonally the I profitability it's say Yes, because just tax usually. the rate, for much hard mean, very so to quarter-by-quarter

that's difficult on is a mid-XX%s to So, But fair one that. bet a probably answer.

this XX% at It capacity. to add would year versus and expect about next to CapEx. in up change as year. I year ended XX% we XX% could increase CapEx, be this we For that

Anthony Lebiedzinski

right, All best it. well of very and got Okay, much luck. you thank

Helen Johnson-Leipold

you. Thank

David Johnson

you, Thank Anthony.

Operator

Thank at remarks. you. any no over the for showing this to back I [Operator to Helen like Instructions] further time. call turn Johnson-Leipold questions I'm closing

Helen Johnson-Leipold

for everyone us a Thank joining have thanks hope and great you. you holiday well, Okay, season.

Operator

participating. Thank you. you Ladies conference. and today's conclude gentlemen, does Thank this for

may disconnect. Have You a now great day.

Johnson Outdoors (JOUT) 10 Dec 212021 Q4 Earnings call transcript