Johnson Outdoors Inc. (NASDAQ:JOUT) Q3 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 11:00 am ET


Johnson Outdoors Inc. (NASDAQ:JOUT) Q3 2020 Earnings Conference Call - Final Transcript


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Hello, everyone, and welcome to the Johnson Outdoors' Third Quarter 2020 Earnings Conference Call. Helen Johnson-Leipold, Johnson Outdoors' Chairman and Chief Executive Officer, will lead today's call. Also on the call is David Johnson, Vice President and Chief Financial Officer.

[Operator Instructions] 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.

Patricia Penman

Thank you. Good morning, and welcome to our discussion of Johnson Outdoors' fiscal 2020 third quarter results. If you need a copy of today's news release, it is available on our website at under Investor Relations.

I also need to remind you that this conference 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 releases and filings with the Securities and Exchange Commission. If you have any additional questions following the call, please contact either Dave Johnson or me.

It is now my pleasure to turn the call over to Helen Johnson-Leipold.

Helen P. Johnson-Leipold

Good morning, everyone. Thank you for joining us. I'll begin by reviewing financial results for the quarter and year-to-date, and discuss the current market dynamics and their effect on our brand's performance. I will then outline key priorities going forward. Then turn things over to Dave to share key financials, and then we'll take your questions.

Total company sales during the third quarter were $138.4 million with operating profit of $12.9 million and net income of $12.9 million or $1.27 per diluted share. On a year-to-date basis, net sales totaled $429.5 million with operating profit of $51.5 million and net income of $39.7 million or $3.93 per diluted share for the fiscal nine-month period. Results for the quarter and nine-month period all compared unfavorably to the prior year, reflecting the impact of the pandemic on our markets and businesses.

Typically the fiscal third quarter is the primary selling season for our warm weather outdoor recreation products. However, this is anything but a typical year. Government ordered stay-at-home mandates and a temporary suspension of operations at some locations stifled [Phonetic] sales and shipments in April in every business. In May and June, orders increased significantly in Fishing, Watercraft Recreation and Camping. At this time, we are working overtime to keep pace with continuing demand in all three of these businesses.

On the flip side, travel restrictions continue to limit accessibility to Diving, causing a sharp decline in that market overall. As mandates ease and waterways in camp grounds open up again, the great outdoors is providing people exactly the kind of experience they are eager for recreational activities that are rejuvenating to the mind, body and