Johnson Outdoors Inc.

Hello, everyone, and welcome to the Johnson Outdoors Fourth Quarter 2021 Earnings Conference Call. Today's call will be led 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 a listen-only mode. After prepared remarks, the question and answer session will begin. If you would like to answer a question during this time, please press star then 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 Tennant, Johnson Outdoors. Please go ahead, Ms. Tennant.

Thank you. Good morning, everyone. Thank you for joining us for our discussion of Johnson Outdoors results for the 2021 fiscal fourth quarter. If you need a copy of today's news release, it is available at 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 Security and Exchange Commission. If you have any 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, Matt. Good morning, and thank you for joining us. I'll begin with an overview on the quarter and year-to-date results, and then I'll share perspective on the performance and outlook for our businesses. Dave will review financial highlights, and then we'll take your questions. In fiscal 2021, total company revenue grew 26% to $752 million, profit surged 57% to $111 million, and net income was $83 million, or $8.21 per diluted share, a 51% improvement from the prior fiscal year. We had an exceptional year. Our fishing, camping, and watercraft recreation businesses saw strong sales throughout the year, and our diving business began to recover in the third and fourth quarters. During our fiscal fourth quarter, total company net sales were $166 million, which was an increase versus last year's strong quarter. Overall, as people's desire to spend time outdoors continued to fuel demand, our performance this year reflects the value of our sustained focus and investment in translating deep, rich consumer insights into innovative products that deliver the best outdoor experience possible. In fishing, our largest business, robust demand across all product lines, continued throughout the year as anglers looked at Johnson Outdoors for the best fishing experiences possible. In our hummingbird brand, our most recent innovation, the award-winning Mega Live Imaging, delivers the clarity and detail of mega imaging in live action, allowing anglers to see fish and structure in real time, even watching fish on screen as they move into bites and anglers' lures. With the release of Mega Live, anglers have access to the most complete package of industry-leading technologies and products offered in our One Boat network platform, which enables our Hummingbird and Minn Kota products to work together in unison, giving anglers an effortless command of their boat. And for some anglers, fishing is an all-weather sport, and Hummingbird is also a leader in ice fishing technology. The award-winning Mega Live imaging also launched in Ice Helix 9 this year, joining our popular Mega360 imaging technology. MegaLive imaging gives ice anglers the ability to see fish moving below the ice in real time and reacting to the lure, and Mega360 allows ice anglers to quickly understand what structure is under the ice so they can more easily locate productive fishing holes. In Minn Kota, the award-winning Raptor Shallow Water Anchor continues to do well in its first full year on the market. The Raptor has two industry leading 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. And in trolling motors with a strong heritage of innovation, quality and durability, Minn Kota is the industry leader. In watercraft recreation, our fishing kayak segment continues to grow and we've outpaced the strong market with the ongoing enthusiasm for our innovative sportsman line that we launched last year. Both retailers and consumers are enthusiastic about the innovation, and our Sportsman Autopilot 136 motorized fishing kayak was recently awarded Paddling Magazine's Best Fishing Boat for 2022. Old Town Sportsman Autopilot 136 leverages the game-changing SpotLock technology from its sister brand, Minn Kota, to hold position while anglers fish. From the award-winning autopilot motorized fishing kayak to the versatile pedal-powered sportsman salty kayak, the sportsman line offers a watercraft for anglers in any type of water. In camping, cooking continues to be an integral part of camping experience. Demand for a Eureka camp cooking technology continues to beat expectations, and in Jetboil, consumers continue to be excited about our super light stash stove that we launched earlier this year. Reducing weight on the trail is critical for backpackers, and the Stash is the lightest all-in-one backpacking stove system that Jetboil, the technology leader in portable outdoor cooking systems, has ever made. Finally, in our diving business, we start to see markets begin to recover from pandemic-related restrictions in the latter half of the fiscal year. Diving at a strong fiscal fourth quarter, Our work to promote and support local diving as well as enhance our global digital presence and strengthen e-commerce are all working to help this positive growth. We remain focused on these efforts along with sustained innovation to ensure Scuba Pro's position as the most trusted dive brand in the world. While the ongoing global supply chain environment remains challenging and unpredictable, we have taken the time to understand opportunities and have invested in capacity and additional tools to help us manage our supply chain. We remain focused on continuing to work hard to manage supply chain issues and fill orders. In summary, we had an exceptional year which wouldn't have been possible without the hard work and dedication of our employees who worked tirelessly to meet the incredible demand for our product. As we continue to navigate the challenges ahead, our company purpose, which is to inspire people to get out there to experience and value the great outdoors for generations to come, continues to guide everything we do, and we remain committed to investing in our key strategic drivers, understanding our consumer, sustaining innovation leadership, identifying new sources and paths of growth in our markets, and continually optimizing our digital consumer experience. Our ongoing hard work on these priorities ensures that our portfolio of market-leading brands is well-positioned for success and that we continue to deliver sustained, profitable, long-term growth for Johnson Outdoors. Now I'll turn the call over to Dave for a review of the financial highlights.