Johnson Outdoors Inc.

Hello everyone, and welcome to the Johnson Outdoors 4th Quarter 2020 Earnings Conference Call. Today's call will be held by Helen Johnson-Leopold, 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 listen-only mode. After the prepared remarks, the question and answer session will begin. If you'd like to ask a question during this time, please press star followed by the number one on your telephone keypad. This call is being recorded. Your participation implies consent to our recording this call. If you do not agree to these terms, simply drop off the line. I would now like to turn the call over to Patricia Penman from Johnson Outdoors. Please go ahead, Ms. Penman.

Thank you. Good morning, everyone. Thank you for joining us for our discussion of Johnson Outdoors results for the 2020 fiscal fourth quarter. If you need a copy of today's news release, it is available on our website at johnsonoutdoors.com under Investor Relations. I also need to remind you that this conference call may contain forward-looking statements. These statements are made on the basis of our current views and assumptions and are not guarantees of future performance. Actual events may differ materially from those statements due to a number of factors, many beyond Johnson Outdoors' control. These risks and uncertainties include those listed in our press release and filings with the Securities and Exchange Commission. If you have additional questions following the call, please contact Dave Johnson or me. It is now my pleasure to turn the call over to Helen Johnson-Leopold.

Thanks, Pat. Good morning, and thank you for joining us. I'll start off with comments on the quarter and full year results, discuss key performance drivers in each business, and outline priorities going forward. Dave will review financial highlights, and then we'll take your questions. In fiscal 2020, total company revenue grew 6% to $594.2 million, profits were $71.1 million, and net income was $55.2 million, or $5.47 per diluted share, a 7% improvement from the prior fiscal year. The 2020 fiscal year was like no other year in our history. We started the year with a very strong first quarter, but the onset of the pandemic and the initial stay-at-home mandates cut short our momentum and significantly impacted our second and third quarters, which is the heart of our primary selling season. As those mandates eased, we saw demand wrap up and participation grow in fishing, camping, and watercraft recreations. Strong, positive momentum continued in our fiscal fourth quarter, the period when the warm weather outdoor recreation industry is historically gearing down for the year. Total company net sales increased to $164.7 million in the fourth quarter, a 58% increase over the prior year's fourth quarter, and profits were up significantly as well. Overall, this year's performance was fueled by demand created through Through people's eagerness to get outdoors, the hard work and dedication of our employees enabled us to meet as much of that demand as possible, while operating under strict health and safety procedures and protocols to reduce the spread of COVID-19. Many people who got outdoors during the warm weather months of the pandemic continued their participation post-Labor Day, and we were able to take advantage of the extended season, leveraging our market-leading brands and innovations. Participation in fishing has always been high, but it has been even higher this year as it has an activity that is accessible and lends itself to social distancing. And both seasoned anglers and new anglers look to Johnson Outdoors for great fishing experiences. In fishing, our largest business, we are continuing to build on a powerful legacy of innovation that transformed Minn Kota and Hummingbird into the market-leading brands they are today. The latest innovation from our Hummingbird brand is the award-winning Mega360 imaging. It began shipping this year, and consumer response has been very favorable. Mega360 imaging is the only sonar option that provides a high-resolution, 360-degree view with unmatched detail and coverage. Before Mega360, anglers were limited to a sonar view either below or to the side of their boat while moving. Now with Mega360, anglers can make accurate casts in any direction, even if the boat is anchored. When Mega360 imaging is used together with Minn Kota SpotLock technology, this provides anglers with an effortless command of their boat and an uncompromised view of fish and the world below. And this year, Minn Kota debuted our award-winning Raptor shallow water anchor with two industry-first technologies. auto bottom mode, which detects bottom density to determine the right anchoring force, and active anchoring, which continuously monitors anchoring force and adjusts automatically for stable bottom pinning. It's still early, but consumer response to the Minn Kota Raptor has also been favorable. Looking ahead, sustaining our innovation and technology leadership position in fishing market is a top priority, and we have an exciting pipeline of new products on the horizon. Moving on to watercraft, the fishing kayak segment is the fastest-growing segment, and our Old Town Sportsman line of power, pedal, and paddle fishing kayaks has generated a lot of enthusiasm since its launch earlier this year. The flagship model of this innovative new line, the award-winning Sportsman Autopilot 120, utilizes a GPS-enabled Minn Kota trolling motor to propel, steer, and anchor the kayak with its unique SpotLock technology. providing kayak anglers with hands-free fishing. The Sportsman Line had a great start in its first year on the market, and we hope to continue that momentum going into year two. As more people desired to get out on the water, we saw strong demand across our entire watercraft recreation portfolio. Additionally, the increase in use of e-commerce as a bond channel allowed us to leverage the investment we've made in growing our digital and e-commerce capabilities. Going forward, our digital presence and e-commerce are a key priority, and we will continue to optimize our online consumer experience. Camping is an important gateway into the outdoor recreation and one of the most accessible outdoor activities that people have been able to do safely. Once state and national parks began to open, both our Jetboil and our Eureka brands benefited from the surge of interest and participation in the activities. Camp cooking is an integral part of the experience, and Jeff Boyle, the technology leader in portable outdoor cooking systems, continues to be the top choice among tech-savvy outdoor enthusiasts. Consumer-driven innovation is key to providing the best camping experience as possible, and we'll keep investing in that. ScubaPro is the most trusted dive brand in the world, and while the diving market has experienced pandemic-related headwinds due to travel restrictions, Our team has been working hard to continue their focus on sustained innovation, enhancing our digital presence globally, and promoting local diving. These efforts will ensure Scuba Pro is in a strong position for the future. Looking ahead, at Johnson Outdoors, we are always investing in understanding our consumers like no one else and turning these deep consumer insights into pioneering innovation. We take a long view, working to position our brands and businesses for growth, well beyond the next quarter or the next year to continue being a thriving enterprise that is built to last and deliver long-term value creation. Our company purpose, which is to inspire people to get out there, to experience and value the great outdoors for generations to come, has never been more important. Now I'll turn the call over to Dave for a review of the financial highlights.