Johnson Outdoors Inc.

Hello, everyone, and welcome to the Johnson Outdoors First Quarter 2022 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 the prepared remarks, the question and answer session will begin. If you would like to ask a question during that 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 call. I will now turn the call over to Allison Kitzerow from Johnson Outdoors. Please go ahead, Ms. Kitzerow.

Thank you, Operator. Good morning, everyone. Thank you for joining us for our discussion of Johnson Outdoors results for the 2022 fiscal first quarter. If you need a copy of today's news release, it is available on our website at www.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 Pat Penman. It is now my pleasure to turn the call over to Helen Johnson Leopold.

Thanks, Allison. Good morning, and thank you for joining us. I'll begin with an overview of the quarter, and then I'll share perspective on the performance and the outlook for our businesses. Dave will review financial highlights, and then we'll take your questions. Sales in our first fiscal quarter ending December 2021 declined 7 percent to $153.5 million compared to $165.7 million in prior year's unprecedented first quarter. Operating profit of $13.8 million was down versus $23.6 million in the prior year first quarter. As we continue to monitor the inflationary environment We've been taking price increases for our products where appropriate. Net income was $10.9 million or $1.07 per diluted share versus $19.8 million or $1.96 per diluted share. I think it's valuable to note that compared to the pre-pandemic December 2019 quarter, our net sales are 20% higher and our profits more than doubled. Overall, we are seeing continued strong demand for our products as people continue to be eager to recreate outdoors, while the ongoing global supply chain environment and uncertainties associated with the pandemic continue to be challenging and unpredictable. We remain laser-focused on working hard to manage supply issues and fill orders while protecting the health and safety of our employees. In fishing, our largest business, demand across all product lines remains strong, while managing supply chain issues and component delays continue to be critical to helping us fill orders as anglers look to Johnson Outdoors for the best fishing experience as 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 in to strike an angler's lure. 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 fish finders and Minn Kota motors to work together in unison, giving anglers an effortless command of their boat. Also, in Minn Kota, the award-winning Raptor shallow water anchor continues to do well in its second year on the market. The Raptor has 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. And in trolling motors with a strong heritage of innovation, quality, and durability, Minn Kota is the industry leader. Both our watercraft recreation and camping businesses are experiencing continued strong sales growth and outperforming the market. In watercraft recreation, growth in our fishing kayak segment continues as we've outpaced the strong market with the ongoing enthusiasm for our innovative sportsman line that is starting its third year on the market. We are constantly looking for ways to integrate our product, and the popular Sportsman Autopilot 136 leverages the game-changing SpotLock technology from our sister brand, Minn Kota, to hold position while anglers fish. From the award-winning Autopilot motorized fishing kayak to the versatile paddle-powered Sportsman Salty kayak, the Sportsman line offers a watercraft for anglers in every type of water. And in camping, both our Jetboil and Eureka brands continue to benefit from the surge of participation in the activity. Demand for Eureka tents and stoves continues to be strong, and in Jetboil, consumers continue to be excited about the super light stash stove that is entering its second year on the market. Reducing weight on the trail is critical for backpacking, and the stash is the lightest all-in-one backpacking stove system that Jetboil has. the technology leader in portable outdoor cooking systems has ever made. Finally, in our diving businesses, we saw dive markets primarily in the U.S. and other regions in the world experience some recovery. Our work to promote and support local diving and to enhance our global digital presence and 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 dye brand in the world. In summary, we are encouraged by the continued strong demand for outdoor recreation products, and the team remains focused on working hard to meet demand. 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, which are understanding our consumers, 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.