Johnson Outdoors Inc.

Hello, everyone, and welcome to the Johnson Outdoors third quarter 2023 earnings conference call. Today's call will be led by Helen Johnson Leopold, Johnson's Outdoors chairman and chief executive officer. Also on the call is David Johnson, vice president, 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 the question during that time, please press star 11 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 would now like to turn the call over to Pat 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 2023 fiscal third 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 myself. It is now my pleasure to turn the call over to Helen Johnson-Leopold.

Thanks, Matt. Good morning, everyone, and thank you for joining us. Just want to excuse my voice. I've got a little bit of a hoarse voice today, but I'll do my best. I'll begin with an overview on the quarter and the year, and then I'll share perspective on performance and outlook for our businesses. They will review financial highlights, and then we'll take your questions. Sales in our third fiscal quarter ending June 30, 2023, declined 8%. to $187 million compared to $203.8 million in the prior year third quarter. Total company year-to-date sales were up 4% over last year's fiscal nine-month period. Profits before income taxes for the third quarter slightly increased to $19.8 million versus $19.2 million in the prior year quarter. For the year-to-date period, profit before income taxes was $47.9 million versus $47 million in the prior year-to-date period. We're seeing consumer demand continue to moderate from the strong pandemic field levels of the past few years. At the same time, the marketplace continues to be competitive, reinforcing the critical importance of innovation for the continued growth and success of our brand. In fishing, we remain committed to being innovation leaders. We recently announced a broad line of exciting new products at this year's ICAST, the largest sporting trade show in the world. Minn Kota announced the Quest series, the all-new brushless trolling motor technology giving anglers ultimate control in tough fishing environments. Minn Kota also launched a restage of all of its bow-mount trolling motors with an updated technology suite, family enhancements, and more seamless integration with Hummingbird products. We're always looking for ways to unify our products to enhance the fishing experience. Also launched at ICAST, was the OneBoat network app bringing together both Humber and encoded devices into one dashboard to give anglers unprecedented command of their fishing boat. Sustaining our innovation leadership position in a competitive fishing market remains a top priority. We are excited about the breadth of new innovation we just announced, and we will continue to work on a pipeline of new products to give anglers the best fishing experiences possible. In our diving business, sales were flat this quarter. However, year-to-date period shows positive growth, especially from our European and Asian markets. We will continue to leverage our innovation and brand-building efforts to ensure ScubaPro remains the world's most trusted dive brand. Our camping and watercraft recreation businesses continue to face softening markets due to the post-pandemic slowdown. Retailers still have product on shelf to work through, and at the same time, consumer spending has slowed. We're committed to the long-term opportunity in these two businesses, and our consumer-focused innovation plays a critical role in that. I'm excited to announce that Old Town received the Best of Boats and Watercraft Honor at this year's ICAST for its revolutionary Old Town E-Pedal Plus Drive. This is cutting edge technology and it's powered assisted pedal drive that combines pedal and power to propel the fishing experience to the next level. This technology is new to the world and we look forward to shipping Old Town ePedal Plus early next year. While the near-term continues to be challenged across all of our brands, we're working hard to position them for continued in the evolving marketplace. Ongoing investment to understand our consumers, sustain innovation leadership, and identify new sources and paths of growth in our markets. Our key to ensuring progress toward our goal is delivering sustained, profitable long-term growth. Now I'll turn the call over to Dave for more details on the financials.