- Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, everyone, and welcome to the Johnson Outdoors Fourth Quarter 2022 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 placed -- 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 with the you Outdoors. disagree If do Ms. ahead, these Pat from would Penman. like Please go to line. now simply to over turn call Penman Johnson I off drop

Patricia Penman

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

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

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

Helen Johnson-Leipold

a fiscal from prior profit to million Net million fiscal versus $X.XX year $XX.X $XX.X XXXX, we chain priority, remains in saw our year situation, then primarily and then with Operating Managing to we'll begin overview fishing a supply the chain Pat. business, of morning. we the supply profitability. company and or the decline will highlights, supply significantly cost financial will while Sustaining new decreased with evaluate income outlook Dave and anglers. fiscal declined challenging total Humminbird during prior improve the the Good looking pressures fiscal throughout share, to for review In sales all diluted are to persisted quarter. in our million compared performance also that the together avenues continue in is Thanks, products innovation record the $XXX.X I'll challenging supply work Fishing, environment new always we availability mitigate Fishing the for take I'll year. deliver year. Minn start on next and our part year XX% questions. year, to on focus, results, challenges first the the to an key X% $XXX.X perspective fiscal year. impacting and to chain leadership fiscal share million and connect our setting prior ways can In and fiscal per business. was fiscal your the to XX% into Kota benefits and fourth for

Minn makes conjunction and catch fish. our recent Our used MEGA Live Kota the Humminbird, it in innovation in anglers Imaging more for stay Ultrex to with trolling easier motor TargetLock award-winning on point

During the year's MEGA this category years. received fiscal past the marking this in honors XX ICAST, electronics best our category award XXXX, Live for TargetLock XXth in at Imaging in

Town everyone great Sportsman Sportsman the Solo Discovery Old gave a day line a this XXX, a The for to of paddles great a a market. versatile business, line on moderating award-winning to canoe and our boats and rivers. the offers of Part and the like lightweight our line success kayak looking enjoying solo momentum a is Recreation water. Moving for us on waterfowl use lakes enjoy fishing, hunting Watercraft sportsman is of wildly Watercraft in innovative

Stove about high in our strong. that even market of consumers the continues growth remain in saw business demand And is started to compared to camping the activity for and to consumer excited Jetboil, year. Our stoves as grow double-digit since and innovative remains tents fiscal last superlight Stash the demand unprecedented unique launch. moderate Participation the high

our the divers continue markets award-winning growth, tourism reasons The reopened to for business avid recovery conditions. experience resumed. as and Finally, of around Seawing recently continues power Supernova several our dive Supernova critical the in trajectory SCUBAPRO world and divers go-to all to on growth Sustaining diving kicking maximum Fin fin the a innovation launched. are that is professional seeking and control powerful recreational loving speed, diving is and

some SCUBAPRO's Our most continued the continue levels hard the mitigate our work brand it's and we challenges innovation loyal efforts in In strong, are our as we replenish supply position profitability. news remain issues, world. summary, and chain in to look we continue to guide our options seeing inventory will with trusted relief at that to with products to good all overall Orders for customers. ensure

which to behavior affect extent and the view, unclear growth next businesses it's always, consumer conditions takes economic may or year. the to and team as in the next long-term hard our inflation the quarter beyond While for future, position brands working our well buying

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

David Johnson

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

quarter. As Helen mentioned, fiscal in improve supply availability starts the to fourth

company fourth up As the XX% quarter. fourth quarter to sales a were total compared result, prior year's

strong and quarter, in previous the fourth saw Fishing the versus revenue Camping quarter. fourth Recreation declined growth While and Diving Watercraft

and year. versus in X in increases in For our before to million fourth XX% tax be for expenses relative some to due compared versus to was from year. fiscal Net $XX.X of taxes XX.X% year was were Warranty $XX.X rate fiscal The lower The income Profit primarily debt income the fiscal $XXX.X quarter, margins by XX.X% down year's costs. was down 'XX from from million, due margin million prior fiscal also bad million continue $XX.X significant costs conditions. expense last saw fiscal decrease last the versus variable fiscal last to compensation and deferred to XX.X%. was incurred points 'XX, year. for impacted expense effective prior down year. rate 'XX. gross material inflationary pricing the of we expect prior in We the improvement is decreased year Operating but

built products. 'XX, fiscal several reminder, supply proactively inventory demand we disruptions levels higher-than-normal on for remain help mitigate focused we chain and into As for significantly and Heading managing to higher monitoring inventory. increased demand meet quarters a our

to on enables cash consequently continue the business. debt have remain in position out cash We ability strengthen to to pay and sheet shareholders. to our We to our us long-term in and confident the no our opportunities invest value deliver dividends balance

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

Operator

our first Lebiedzinski from Instructions] with [Operator And Sidoti. comes question Anthony

open. now is line Your

Anthony Lebiedzinski

taking and and nice morning for had you a fiscal to Good your the certainly finish thank year. very questions

that would could the just a also, And could on about give just unfulfilled backlog fishing? orders, you touch commentary as So far if better us as first, the if of great. wanted I on that, to the be sense get orders. just color Is that strong you some primarily

Helen Johnson-Leipold

got We've together, to all in the we of next down in, season kind preorders backorders historically the we getting so we some for have continuing and that we work in we're fishing and orders order normal kind as solid are the have and to of inventory mixed seen getting other placements building continuing get but back we they're in fishing into those get businesses.

good feel we position. about So the

cancellations. seen haven't We

a positive it's So side.

Anthony Lebiedzinski

it. Got

hearing you retail? give from levels what your demand as what’s us as a Okay. to far sense Thanks can sense levels? current that. for at you're as as your And far the And retail partners as inventory

Helen Johnson-Leipold

inventory still are retail. building we at Well,

this bit eased a Our past little up quarter. situation supply

So to and building. them that's an to customers shift opportunity have given start us

happens still forward, juries are quarter. want levels We be, think going out expected, demand I the what been had holiday not I the but very than we that on better but but fourth to has to we season we a obviously, think strong

very a good was sign. that So

Anthony Lebiedzinski

got are those back to you. historically, to -- to do Okay, of Or company's those think margins? the achievable? then range. in gross types of do time, you course, been XX% business you types expect of get the margins you structural there's the margin have a not And been change mid expect Do where gross over

Helen Johnson-Leipold

Well, those very a times. back were get as that Obviously, goal we will keep different there. to

significant how But the we we're yet it way down. will I come -- getting we dealing and going assuming with be all they don't our up materials, will down. up, is now, raw increases hard seized. think on on are back to work whether cost do much know margins those right to come goes We we're

Anthony Lebiedzinski

you. got Okay,

-- chain. comment options the increased about also on address and Okay. your focusing of as And to evaluating the supply so efficiency far as costs then and the

us with share line to you what you're to bring details can as there doing back inventories more levels. So to more in also normal

David Johnson

to the that. improve the mean, everything I mean, margin we're looking cost question, yes, at structure I and

we're past. is it that of be sign we've cost mix and what cetera. see part versus pricing margin products, price in. to the find look our and ways looking design our of to structure and in also but our demand at increases part trying We'll to our marketplace coming at continue So et decrease is we taken driven, going sourcing, to set profile to And

So we're it the looking we'd than And is to where there. like be. then higher inventory question, yes, everything our at on inventory

is So that that It we're will we and more season on done. -- the working really that of that can be hard making we balanced. managing probably sure end get

Anthony Lebiedzinski

you. got Okay,

you point, Okay. And higher estimate, this and inventories sort CapEx, then flow higher to ballpark sort be? year, And think 'XX your about it than will you strong was -- of you also a normal than it as your balance of fiscal like can where cash to looks have talk sheet even priorities? just though, Dave, still your remains normal CapEx you

David Johnson

work Yes. fiscal that going where some 'XX I 'XX. repeatable, facility XX%, we the mean 'XX. go that repeated we We to XX% down not to be CapEx 'XX, in we added -- maybe will not did in expect versus had is in spending that

XX% expect So decline XX%, I a CapEx. in would

Anthony Lebiedzinski

Okay.

still your acquisitions Are I looking looking at potential talked shares? otherwise, cash priorities, you guys you about buying the then And know dividend. maybe at flow or Okay.

Helen Johnson-Leipold

good a screen. we're it's have to acquisitions. and they always fit, strategic, have always on looking be Well, for they to And radar

talk the So looking. always Dave, …? again, always, from that can you about perspective,

David Johnson

good beyond Yes. dividend achieved I a that. healthy I we that, we've to think and see mean like

and our So all utilize for look we look the company. options to cash. make mean, we'll options for the dividend growth that's that's utilize that beyond on the cash for the other shareholders how about talked at other -- at sure and before, we've I ongoing meaningful continue to discussion we regular an as And

Anthony Lebiedzinski

Understood.

of you Well, thank Okay. luck. and best

Helen Johnson-Leipold

Great. Thank you.

Operator

hand Helen further the [Operator to back Instructions] I'd to conference for over like time. Ms. at And Johnson-Leipold closing currently no showing remarks. I'm this questions

Helen Johnson-Leipold

everyone, hope and you. you, holiday season. you I wonderful have Thank a Thank

Operator

call. concludes Thank conference Thank today's participation. you your you. for This

day. You now wonderful a Everyone, disconnect. may have

Johnson Outdoors (JOUT) 9 Dec 222022 Q4 Earnings call transcript