JOUT - Earnings call transcript Q1 2022

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Operator

Hello everyone and welcome to the Johnson Outdoors First Quarter 2022 Earnings Conference Call. Today's call will be led by Helen Johnson-Leipold, Johnson Outdoor's 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.

to Instructions]. question like please that would [Operator press you ask during a time, If is recorded. call This being

Your participation implies consent to our recording this call.

not I the do off Please go Kitzerow you agree terms, Outdoors. these If Ms. simply from the Johnson call. over will call turn ahead, now to Allison to drop

Allison Kitzerow

Thank Good XXXX us Fiscal Quarter. for for results a you, Operator. you Outdoors the Thank discussion for morning, everyone. joining of Johnson First

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

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

Helen Johnson-Leipold

Quarter. of year, XXXX million compared X% for a take me. prior then $XX.Xmillion and to businesses. first versus for and year unprecedented thank Sales outlook in Thanks first the questions. Allison. prior ending Operating Good $XX.X the Dave a Morning, with highlights joining I'll to $XXX.X us. in will our financial profit million $XXX.X we'll an and I'll our quarter. down quarter you First performance share the the and declined was in fiscal Excuse then million begin review quarter of December overview your year's perspective on

inflationary per share. $XX.X income diluted the or taking or $X.XX our where for products $XX.X monitor price to diluted was million per share appropriate. been environment, versus Net we've increases continue million we As $X.XX

innovation, while supply our our fishing MEGA allowing in component best largest In onscreen orders move business it's environment XXXX our strong think continued the sales managing be people demand as Johnson recreate valuable pre-pandemic the December Overall, to to higher I compared the lure. Outdoors health outdoors, and fish challenging more award-winning action, critical our with helping demand Humminbird our chain while an and associated possible. in experiences strong and to we as and structure delays look angler's the our recent and seeing and to that remained products continue see MEGA profits doubled. chain of issues net live to to to Imaging they unpredictable. supply most as into across the our be eager lines be Imaging for detail fill ongoing pandemic of all laser-focused Fishing on XX% hard quarter, to continue than to continued for note uncertainties We the safety and are are delivers and manage orders even product Live clarity and issues anglers global real-time, the protecting anglers remain to watching brand, the employees. In working fish fill strike us supply

bottom monitors growth in continuously and heritage the force anchoring Mode, do as its we've is the the outperforming Water Recreation, which industry-leading And of and anglers to boat. Minn Also leader. award anchoring giving well durability, enthusiasm Auto our the which sales Sportsman of density continues technologies, Raptor which Watercraft enables technologies With Minn platform, market for innovation, Humminbird package segment line release our winning Live quality, together industry first the determine the Raptor unison, market. the of industry the on a continues in Kota Network force, Kayak with growth adjust continued experiencing to businesses an In our in market. in year Boat and finders Fishing command the strong effortless Anchor strong with market. work complete bottom their year Both third for to innovative and our automatically to The outpaced MEGA and Kota strong right the its most products trolling second starting motors access of and Anchoring, One and pinning. Camping Recreation ongoing and in that the our offered has quarter, Bottom ending detects fish are is motors out stable Shallow Active two Watercraft

stove for Eureka to continue pedal-powered about surge We and participation motorized autopilot our versatile anglers are constantly be for strong, to superlight Stash Spot brands benefit XXX in looking sister for entering the systems, every hold backpacking to and the stove outdoor lightest leader its Fishing leverages technology to to From the trail in Stash be that Lock in the Sportsman stove water. and and activity. Kayak technology excited Salty Autopilot in continues the all-in-one anglers Watercraft cooking the Kota, And Sportsman market. the made. Minn cans backpacking Reducing kayak. our popular the The the a for critical ever and second from weight, system while the Eureka portable game-changing line product of the on ways in Sportsman from to Jetboil has that award-winning brand, Demand integrate year position Camping, is fish. Jetboil in our continue both consumers is of offers Jetboil type the is

Diving world our the market recovery. some in the in in experienced regions other businesses, U.S. it's primarily and Finally, dive thought we

to digital remains outdoor demand. demand help products, trusted strong local SCUBAPRO We presence 's and we efforts most by and the dive to enhance the brand hard these are working In support and for growth. position global on recreation sustained Our our team summary, to diving to as the focused the work in working remain on along ensure positive promote encouraged innovation to with are meet e-commerce and continued all world. focused this

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

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

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

David Johnson

the highlight items I from everyone. a Thank few quarter. you, Helen. And to good morning, wanted

daily the like to companies, supply but chain As strong, be remains on we basis. our disruptions mentioned, Helen in main managed must continue many base a ongoing there

action to chain take to challenges. continue mitigate supply our We

response We'll prior-year year's the the Capital adjustments X.X and year's additional XX.X% Gross up expenses inflationary points business pressured is year's from in we'll profit input as cost record-setting of versus $X.X $X.X we million, our to quarter, planning the maintain due environment, quarter our to sources quarter margin for XX.X%. the year, of decreased increases. appropriate. increases example, quarter. tax capacity Operating ultimate components Operating capacity Each all down continue continues first We've vendors is incremental normal for For Net down X.X implemented adding where the our $XX.X XX% than primarily expenses inventory driven higher and of investments were be million the was where to rate levels take due continue pricing expenses. sales has to million with increased volume last last prior from rate prior price appropriate. for in of in XX.X% monitor costs. effective feasible. Fishing quarter. also to and closely versus was lower due to critical we're and for working down compared income supply to to points The and resources primarily also invested business.

We expect full-year rate the XXs. mid to be in the tax

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

Q&A Operator. call the Now turn over for to the session. I the will Operator back

Operator

ladies Again, if Thank moment [Operator One gentlemen, like question, you'd a to please. you. and ask Instructions]

Sidoti. Our first comes from Anthony of question

is open. line Your

Anthony Lebiedzinski

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

strong about orders of seen quantify so as season any is here far, of margin there, terms you've there what the as in you way now can in June customer First, that talked the and outlook you -- terms to of critical that you demand enter quarters?

David Johnson

it's a year, shake quantify out Yeah. to book the It's We're of strong see it, hesitate really phenomenon. right things to strong still orders an how interesting have now. to compared seeing but so now season. right I We'll in last

Anthony Lebiedzinski

And is a with that segments it. that seeing in strong orders? of book all you're Got

David Johnson

Yes.

Anthony Lebiedzinski

on pricing much as to us we pricing, price how to think And go-forward give great how and benefited as hear. That's far a basis? can a the as about increases Okay. should sense you quarter then

David Johnson

benefit Yes. It didn't this really quarter lot. first a

we're were January the the as more fiscal putting driver to the margin. price effective Xst, a increases the benefit even place. cost so inputs are first would continue Some is that the big for of year gross story necessary. some the in We'll than I a at later the being wasn't quarter, little bit for adjust which look from it and the rest expect hence-forcing that, increases of effective

Anthony Lebiedzinski

Got it.

as for for finished well? terms that raw then so of mostly that. in Thanks And inventory or increase, overall, the just Okay. is goods materials

Helen Johnson-Leipold

to prepared the Well, just is meet that are demand. we the inventory increase so

we a is have we waiting chain ready the of challenge produce due product to still to then go. everything supply to yet ready in-market. for component, to However, it get but standpoint. one from really a else inventory components waiting that be and lot having there That's And get we're really can the

prepared we're when ready-to-go. are pieces specific up, the those supply, show We

Anthony Lebiedzinski

Got you.

I of may, questions, couple a more then and if Okay, here.

Camping was military as driven far by much increase sales? As of the the tent sales, how

David Johnson

business, of It's consumer a growth. the piece increase. is Yeah. of Yeah. small that in the it Most

Anthony Lebiedzinski

and price, Got your about the you've talked you, sheet how think well. any current okay. cash. I the should And in potential strong acquisitions the as and repurchases we also usages share about past, know, then, share of balance other given

mind should for share allocation, the business? price other Just overall, and needs cash keeping how and we about capital in current think position your

Helen Johnson-Leipold

from said, value it's standpoint, an is to are always our brings we strategic Well, focus. it always the acquisition as key acquisition and that we've -- for we opportunities, and looking

go in after balance doesn't there when to the out look something it there's good occur. with we're we're sheet and shape -- So, obviously

looking can actively very we're you and talk are, but always too. So Dave,

David Johnson

then cons. strategy is they Yeah, uses a item. as has point, repurchases your have share But continued at the that dividends know, you of their be our to and pros And be alternate Anthony, and other forefront. discussion continues to all to And important. obviously, cash

at everything. We continue to look

Anthony Lebiedzinski

great That's hear of luck. Great. best you and to Okay. and thank

David Johnson

Anthony. Thanks,

Helen Johnson-Leipold

you. Thank

Operator

the turn and Again, questions to further closing Helen moment, [Operator Instructions]. any call ladies at over no One to Thank back this for showing you. remarks. gentlemen, I'd time. Johnson-Leipold I'm please. like

Helen Johnson-Leipold

I you. joining everybody everyone has to day. a say I hope to and just want thanks for us Thank today, great

Operator

today's now and Thank Ladies participation, conference. for a Have conclude disconnect. great you you does may day. gentlemen, this

Johnson Outdoors (JOUT) 4 Feb 222022 Q1 Earnings call transcript