UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 0-16255 JOHNSON OUTDOORS INC. (Exact name of Registrant as specified in its charter) Wisconsin 39-1536083 (State or othe ...

Johnson Outdoors Inc. (NASDAQ:JOUT) Q4 2021 Earnings Conference Call December 10, 2021 11:00 AM ET Company Participants Patricia Penman - VP, Marketing Services & Global Communication Helen Johnson-Leipold - Chairman and CEO David Johnson - VP and CFO Conference Call Participants Anthony Lebiedzinski - Sidoti & Company Operator Hello everyone and welcome to the Johnson Outdoors' Fourth Quarter 2021 Earnings Conference Call. Today's call will be led by Helen Johnson-Leipold, Johnson Outdoors' Chairman and Ch ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 1, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 0-16255 JOHNSON OUTDOORS INC. (Exact name of registrant as specified in its charter) Wisconsin 39-1536083 (State or other jurisdiction o ...

Johnson Outdoors, Inc. (NASDAQ:JOUT) Q3 2021 Earnings Conference Call August 9, 2021 11:00 AM ET Company Participants Patricia Penman - VP, Marketing Services & Global Communication Helen P. Johnson-Leipold - Chairman and CEO David W. Johnson - VP and CFO Conference Call Participants Anthony Lebiedzinski - Sidoti & Company Operator Hello everyone and welcome to the Johnson Outdoors Third Quarter 2021 Earnings Conference Call. Today's call will be led by Helen Johnson-Leipold, Johnson Outdoors' Chairman and ...

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's analysis for the period, highlighting significant growth and a strong financial position [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited condensed consolidated financial statements for the three and nine months ended July 2, 2021, show significant growth in revenue and net income compared to the prior-year period, largely driven by increased consumer demand for outdoor recreation products following the easing of COVID-19 restrictions, with the balance sheet reflecting a strong liquidity position with increased cash and no outstanding debt [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenue, gross profit, operating profit, and net income for the three and nine months ended July 2, 2021, showing significant year-over-year growth Condensed Consolidated Statements of Operations (in thousands of US dollars) | Metric | Three Months Ended July 2, 2021 | Three Months Ended June 26, 2020 | Nine Months Ended July 2, 2021 | Nine Months Ended June 26, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $213,568 | $138,390 | $585,391 | $429,528 | | **Gross Profit** | $97,511 | $62,562 | $265,795 | $191,306 | | **Operating Profit** | $38,099 | $12,929 | $97,692 | $51,524 | | **Net Income** | $28,774 | $12,869 | $76,455 | $39,686 | | **Diluted EPS (Class A)** | $2.83 | $1.27 | $7.53 | $3.93 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents the company's assets, liabilities, and shareholders' equity as of July 2, 2021, October 2, 2020, and June 26, 2020, highlighting a strong cash position Condensed Consolidated Balance Sheets (in thousands of US dollars) | Asset/Liability | July 2, 2021 | October 2, 2020 | June 26, 2020 | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $249,016 | $212,437 | $181,445 | | **Accounts receivable, net** | $94,750 | $67,292 | $82,577 | | **Inventories** | $130,742 | $97,437 | $94,218 | | **Total current assets** | $486,564 | $388,538 | $365,881 | | **Total assets** | $659,395 | $546,026 | $517,609 | | **Total current liabilities** | $132,715 | $105,607 | $98,799 | | **Total liabilities** | $207,071 | $167,926 | $156,075 | | **Total shareholders' equity** | $452,324 | $378,100 | $361,534 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines the company's cash flows from operating, investing, and financing activities for the nine months ended July 2, 2021, showing a substantial increase in cash Condensed Consolidated Statements of Cash Flows (Nine Months Ended, in thousands of US dollars) | Cash Flow Activity (Nine Months Ended) | July 2, 2021 | June 26, 2020 | | :--- | :--- | :--- | | **Net cash from Operating Activities** | $57,611 | $25,560 | | **Net cash used for Investing Activities** | ($15,468) | ($11,340) | | **Net cash used for Financing Activities** | ($6,792) | ($5,412) | | **Increase in cash and cash equivalents** | $36,579 | $9,063 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the basis of presentation, the significant impact of the COVID-19 pandemic which increased demand for outdoor products, and key accounting policies, notably that the company had no debt outstanding as of July 2, 2021, with the Fishing segment remaining the largest contributor to revenue and operating profit, and the company also initiated actions to terminate its two defined benefit pension plans - The **COVID-19 pandemic** led to increased participation in outdoor recreation activities like fishing, camping, and watercraft recreation, driving higher demand for the company's products starting in the latter half of fiscal 2020 and continuing into fiscal 2021[30](index=30&type=chunk) - The company had **no debt outstanding** as of July 2, 2021, October 2, 2020, or June 26, 2020, and maintains a **$75 million revolving credit facility**, which was extended to **July 15, 2026**[77](index=77&type=chunk)[78](index=78&type=chunk) - During the first quarter of fiscal 2021, management began the process of **terminating its two non-contributory defined benefit pension plans**, an action estimated to have an **unfavorable impact on net income of approximately $4 to $5 million** upon completion[62](index=62&type=chunk) Segment Net Sales and Operating Profit (Nine Months Ended July 2, 2021, in thousands of US dollars) | Segment | Net Sales (9 months ended July 2, 2021) | Operating Profit (9 months ended July 2, 2021) | | :--- | :--- | :--- | | **Fishing** | $441,727 | $107,553 | | **Camping** | $44,160 | $10,075 | | **Watercraft Recreation** | $49,948 | $7,329 | | **Diving** | $48,973 | $384 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the strong financial performance to a significant increase in consumer participation in outdoor activities, driven by the COVID-19 pandemic, with net sales for the third quarter rising 54% year-over-year and all business segments showing strong growth, while gross margins improved due to volume efficiencies, the company faced challenges from supply chain disruptions and increased tariff costs, maintaining a strong, debt-free balance sheet and robust cash position - The company experienced **strong orders and consumer demand** in the first three quarters of fiscal 2021 due to increased participation in outdoor recreation as consumers sought socially distant activities, though this has been accompanied by **supply chain and logistics disruptions**[131](index=131&type=chunk) Key Financial Metrics (Q3 FY2021 vs. Q3 FY2020, in thousands of US dollars) | Metric | Q3 FY2021 | Q3 FY2020 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $213,568 | $138,390 | +54% | | **Operating Profit** | $38,099 | $12,929 | +195% | | **Net Income** | $28,774 | $12,869 | +124% | - The company anticipates a **negative impact of approximately $9 million from Section 301 tariffs** on China-sourced goods for the **full fiscal year 2021**, a **significant increase from $3.5 million** in the previous year[154](index=154&type=chunk) - The company's **cash and cash equivalents increased to $249.0 million** as of July 2, 2021, from $181.4 million a year prior, primarily due to higher operating profits, and the company remained **debt-free**[168](index=168&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company identifies its primary market risks as fluctuations in raw material commodity prices, foreign currency exchange rates, and interest rates, with a significant new risk being the ongoing supply chain disruption caused by the COVID-19 pandemic, which has strained the availability of key components due to higher-than-normal demand, and the company is actively monitoring these risks and seeking alternative supply sources where feasible - The **COVID-19 pandemic** has disrupted normal selling patterns and placed a **strain on the company's supply chain** due to **higher-than-normal demand**, potentially leading to **limited availability and higher costs** for key raw materials and components[188](index=188&type=chunk) - **Approximately 12% of the company's revenue** for the nine-month period was denominated in **foreign currencies**, primarily euros, Canadian dollars, and Hong Kong dollars, exposing the company to **foreign exchange risk**[183](index=183&type=chunk) - The company held **no foreign currency forward contracts** as of July 2, 2021, or June 26, 2020, to mitigate foreign exchange risk[183](index=183&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a level of reasonable assurance as of the end of the period covered by the report, with no material changes in the company's internal control over financial reporting during the last fiscal quarter - Based on an evaluation, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the reporting period[191](index=191&type=chunk) - **No changes occurred in the company's internal control over financial reporting** during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[192](index=192&type=chunk) [PART II OTHER INFORMATION](index=37&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers legal proceedings, updated risk factors, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently involved in any legal proceedings that are expected to have a material adverse effect on its financial statements - The company is **not currently involved in any claim or action** where the ultimate disposition would have a **material adverse effect** on its financial statements[193](index=193&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor has been added concerning the high volatility of the company's Class A Common Stock price, which can be influenced by various factors, including earnings trends, competitor actions, economic conditions, and broad market fluctuations, potentially beyond the company's control - A **new risk factor** was added to disclose that the **trading price of the company's Class A Common Stock is highly volatile** and subject to wide fluctuations, which could prevent shareholders from reselling shares at or above their purchase price[194](index=194&type=chunk)[195](index=195&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section references the Exhibit Index, which lists all documents filed as part of the Form 10-Q report, with key exhibits including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act and financial data formatted in XBRL - The report includes **CEO and CFO certifications** pursuant to Sections 302 and 906 of the **Sarbanes-Oxley Act of 2002**[203](index=203&type=chunk) - An **amendment to the company's credit agreement**, dated **July 15, 2021**, was filed as an exhibit[203](index=203&type=chunk)

Financial Data and Key Metrics Changes - Sales surged to $206.2 million during the second quarter, a 26% increase compared to the previous year [7] - Year-to-date sales reached $371.8 million, reflecting a 28% increase over the same period last year [7] - Operating profit for the fiscal six-month period increased by 54.4% to $59.6 million compared to the same period a year ago [8] - Net income for the quarter was $27.8 million, or $2.76 per diluted share, compared to $20.4 million in the prior year's second quarter [8][22] Business Line Data and Key Metrics Changes - In Fishing, robust demand from Minn Kota and Hummingbird technology continued, with high participation rates during the pandemic [10] - Watercraft Recreation saw growth in the Fishing Kayak segment, with innovative products like the Sportsman kayaks gaining popularity [14][15] - Diving faced challenges due to ongoing travel restrictions, but efforts to enhance digital presence and support local diving were emphasized [17] Market Data and Key Metrics Changes - The pandemic has driven unprecedented demand for outdoor recreation products, benefiting all business lines [6] - Retail inventory levels are described as lean across the three growing businesses, indicating strong market demand [25] Company Strategy and Development Direction - The company aims to maintain its leadership in the fishing market through innovation and understanding consumer needs [13] - Long-term focus includes investing in strategic drivers, sustaining innovation leadership, and optimizing digital consumer experiences [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing pandemic has catalyzed increased outdoor activity participation, which has positively impacted sales [6] - The company anticipates a strong season ahead while monitoring marketplace dynamics and cost pressures [22] Other Important Information - Gross margin for the quarter was 45.2%, slightly down from the prior year due to increased tariffs and freight costs [20] - Operating expenses increased by $13.9 million, primarily driven by sales-related expenses [21] - The balance sheet remains strong, providing financial capacity for strategic investments and dividends [23] Q&A Session Summary Question: Are retail inventory levels lean across all segments? - Management confirmed that retailers are experiencing lean inventory across all three growing businesses [25] Question: What is the current capacity situation and ability to increase it? - Management indicated that they have added shifts and seasonal labor to meet demand, but are still operating at about 80% workforce capacity due to COVID-19 safety measures [26][27] Question: How have supply chain constraints changed since the last quarter? - Management described the supply chain situation as dynamic, with ongoing efforts to maintain adequate supply despite industry shortages and longer lead times [28] Question: What strategies are being considered to offset higher costs? - Management stated they will consider all options, including cost savings programs and pricing strategies, to mitigate cost increases [29]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements show significant growth in sales and profit, driven by heightened demand for outdoor recreation products [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations Highlights | Metric (in thousands) | Three Months Ended April 2, 2021 | Three Months Ended March 27, 2020 | Six Months Ended April 2, 2021 | Six Months Ended March 27, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $206,156 | $163,084 | $371,823 | $291,138 | | **Gross profit** | $93,254 | $75,132 | $168,284 | $128,744 | | **Operating profit** | $36,036 | $31,794 | $59,593 | $38,595 | | **Net income** | $27,834 | $20,387 | $47,681 | $26,817 | | **Diluted EPS (Class A)** | $2.74 | $2.02 | $4.70 | $2.66 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights | Metric (in thousands) | April 2, 2021 | October 2, 2020 | March 27, 2020 | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $186,921 | $212,437 | $131,256 | | **Total current assets** | $450,769 | $388,538 | $353,342 | | **Total assets** | $618,980 | $546,026 | $504,304 | | **Total current liabilities** | $123,503 | $105,607 | $102,623 | | **Total liabilities** | $195,244 | $167,926 | $157,202 | | **Total shareholders' equity** | $423,736 | $378,100 | $347,102 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended) | Metric (in thousands) | April 2, 2021 | March 27, 2020 | | :--- | :--- | :--- | | **Net cash used for operating activities** | $(11,955) | $(28,991) | | **Net cash used for investing activities** | $(9,822) | $(7,762) | | **Net cash used for financing activities** | $(4,690) | $(3,842) | | **Decrease in cash and cash equivalents** | $(25,516) | $(41,126) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The COVID-19 pandemic led to increased participation in outdoor recreation, driving **higher demand** for the company's products in late fiscal 2020 and the first half of fiscal 2021[28](index=28&type=chunk) - The company initiated actions to terminate its two defined benefit pension plans, estimating an unfavorable **net income impact of approximately $4 to $5 million**[60](index=60&type=chunk) - The company had **no debt outstanding** as of April 2, 2021, and maintains a **$75 million revolving credit facility** for liquidity[75](index=75&type=chunk)[76](index=76&type=chunk) Net Sales by Business Segment (Unaffiliated Customers) | Segment (in thousands) | Three Months Ended April 2, 2021 | Three Months Ended March 27, 2020 | Six Months Ended April 2, 2021 | Six Months Ended March 27, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Fishing** | $159,770 | $133,710 | $286,629 | $232,903 | | **Camping** | $14,231 | $8,841 | $26,416 | $16,346 | | **Watercraft Recreation** | $17,768 | $6,063 | $30,165 | $10,866 | | **Diving** | $14,205 | $14,253 | $28,295 | $30,711 | Operating Profit (Loss) by Business Segment | Segment (in thousands) | Three Months Ended April 2, 2021 | Three Months Ended March 27, 2020 | Six Months Ended April 2, 2021 | Six Months Ended March 27, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Fishing** | $40,400 | $32,917 | $68,163 | $47,935 | | **Camping** | $2,962 | $709 | $5,770 | $775 | | **Watercraft Recreation** | $2,814 | $(1,639) | $3,883 | $(3,202) | | **Diving** | $(1,253) | $(812) | $(1,594) | $(607) | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong financial performance to increased consumer demand for outdoor recreation, while managing supply chain challenges and rising costs [Overview](index=26&type=section&id=Overview) - The company is a leading global manufacturer of branded seasonal outdoor recreation products for fishing, diving, paddling, and camping[129](index=129&type=chunk) - The COVID-19 pandemic spurred a **surge in demand** for Fishing, Camping, and Watercraft Recreation products continuing into fiscal 2021[131](index=131&type=chunk) - Key challenges include managing supply chains and ensuring component availability to meet **continued strong demand**[131](index=131&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) - Gross profit margin for Q2 FY2021 was **45.2%**, a slight decrease from 46.1% in the prior year due to higher tariff and freight costs[149](index=149&type=chunk) - The company anticipates a full-year negative impact of approximately **$9 million from Section 301 tariffs** in fiscal 2021[151](index=151&type=chunk) - Operating expenses **increased by $13.9 million** in Q2 FY2021, driven by higher sales volume and compensation expenses[153](index=153&type=chunk) Net Sales Growth (Q2 FY2021 vs Q2 FY2020) | Segment | Net Sales (Q2 2021, in thousands) | Growth vs Q2 2020 | | :--- | :--- | :--- | | **Consolidated** | $206,156 | 26% | | **Fishing** | $160,016 | 19% | | **Camping** | $14,244 | 61% | | **Watercraft Recreation** | $17,778 | 193% | | **Diving** | $14,208 | Flat | Net Income and EPS Comparison | Metric | Three Months Ended April 2, 2021 | Three Months Ended March 27, 2020 | Six Months Ended April 2, 2021 | Six Months Ended March 27, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $27,834 | $20,387 | $47,681 | $26,817 | | **Diluted EPS** | $2.74 | $2.02 | $4.70 | $2.66 | [Liquidity and Financial Condition](index=31&type=section&id=Liquidity%20and%20Financial%20Condition) - Cash and cash equivalents totaled **$186.9 million** as of April 2, 2021, an increase from $131.3 million a year prior[165](index=165&type=chunk) - The company maintained a **debt-to-total capitalization ratio of 0%** with no debt outstanding[165](index=165&type=chunk) - Inventories **increased by $16.9 million** year-over-year to $124.5 million to support increased product demand[166](index=166&type=chunk) - Cash used for operations for the six-month period **decreased to $12.0 million** from $29.0 million in the prior year[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company identifies primary market risks from commodity prices, interest rates, foreign currency, and supply chain disruptions due to high demand - The company's primary market risks include raw material commodity prices, interest rate fluctuations, and foreign currency exchange rate risk[178](index=178&type=chunk) - The COVID-19 pandemic continues to pose a risk with potential adverse impacts on the supply chain and operations[179](index=179&type=chunk) - Approximately **11% of revenues** for the six-month period were denominated in foreign currencies, exposing the company to foreign exchange risk[182](index=182&type=chunk) - Higher than normal demand levels may strain the supply chain, potentially causing **component shortages and higher costs**[187](index=187&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** at a reasonable assurance level[188](index=188&type=chunk) - **No material changes** occurred in the company's internal control over financial reporting during the last fiscal quarter[191](index=191&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings expected to have a material adverse effect on its financial condition - The company states that it is not currently involved in any legal proceedings expected to have a **material adverse effect** on its financial condition[192](index=192&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor was added concerning the potential for high volatility in the company's Class A Common Stock price - A new risk factor was added regarding the **high volatility** of the company's Class A Common Stock trading price[193](index=193&type=chunk)[194](index=194&type=chunk) - Factors contributing to stock price volatility include earnings announcements, competitor actions, economic conditions, and general market fluctuations[195](index=195&type=chunk)[197](index=197&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the report, including CEO/CFO certifications and XBRL-formatted financial statements - The report includes **CEO and CFO certifications** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[202](index=202&type=chunk) - Financial statements and notes are provided in **XBRL format** as required[202](index=202&type=chunk)

Johnson Outdoors Inc. (NASDAQ:JOUT) Q1 2021 Earnings Conference Call February 5, 2021 11:00 AM ET Company Participants Patricia Penman - VP, Global Marketing Services and Communication Helen Johnson-Leipold - Chairman and CEO David Johnson - VP and CFO Conference Call Participants Anthony Lebiedzinski - Sidoti & Company Operator Hello everyone and welcome to the Johnson Outdoors First Quarter 2021 Earnings Conference Call. Today’s call will be held by Helen Johnson-Leipold, Johnson Outdoors Chairman and Chi ...

PART I: FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for the three months ended January 1, 2021, reflect significant growth in net sales and net income, driven by increased consumer demand for outdoor recreation products, maintaining a strong, debt-free balance sheet [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales for the three months ended January 1, 2021, increased by **29.4% to $165.7 million**, driving a surge in operating profit and net income Consolidated Statements of Operations Highlights (unaudited) | (In thousands, except per share data) | Three Months Ended Jan 1, 2021 | Three Months Ended Dec 27, 2019 | Change (%) | | :--- | :--- | :--- | :--- | | **Net sales** | $165,667 | $128,054 | 29.4% | | **Gross profit** | $75,030 | $53,612 | 40.0% | | **Operating profit** | $23,557 | $6,801 | 246.4% | | **Net income** | $19,847 | $6,430 | 208.7% | | **Diluted EPS (Class A)** | $1.96 | $0.64 | 206.3% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of January 1, 2021, the balance sheet shows **strong liquidity with $195.9 million in cash** and increased total assets and shareholders' equity Key Balance Sheet Items (unaudited) | (In thousands) | Jan 1, 2021 | Oct 2, 2020 | Dec 27, 2019 | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $195,923 | $212,437 | $138,257 | | **Accounts receivable, net** | $97,386 | $67,292 | $78,249 | | **Inventories** | $114,849 | $97,437 | $103,885 | | **Total current assets** | $417,256 | $388,538 | $330,126 | | **Total assets** | $577,181 | $546,026 | $486,123 | | **Total current liabilities** | $113,288 | $105,607 | $95,261 | | **Total liabilities** | $178,569 | $167,926 | $155,884 | | **Total shareholders' equity** | $398,612 | $378,100 | $330,239 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used for operating activities significantly improved to **$11.2 million** in Q1 fiscal 2021, contributing to an ending cash balance of **$195.9 million** Consolidated Cash Flow Summary (unaudited) | (In thousands) | Three Months Ended Jan 1, 2021 | Three Months Ended Dec 27, 2019 | | :--- | :--- | :--- | | **Net cash used for operating activities** | $(11,238) | $(29,088) | | **Net cash used for investing activities** | $(4,388) | $(3,307) | | **Net cash used for financing activities** | $(2,589) | $(2,149) | | **Effect of foreign currency on cash** | $1,701 | $419 | | **Decrease in cash and cash equivalents** | $(16,514) | $(34,125) | | **Cash and cash equivalents, end of period** | $195,923 | $138,257 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail financial statement basis, accounting policies, and the **COVID-19 pandemic's impact** on demand, segment performance, pension plans, and debt status - The **COVID-19 pandemic** led to **increased participation** in outdoor activities like fishing, camping, and watercraft recreation, driving **higher demand** for the company's products starting in the latter half of fiscal 2020 and continuing into Q1 fiscal 2021[27](index=27&type=chunk) - Management has initiated actions to terminate its two defined benefit pension plans, estimated to result in an unfavorable impact on net income of approximately **$4 to $5 million** when payouts occur[57](index=57&type=chunk) - The company had **no debt outstanding** as of January 1, 2021, October 2, 2020, or December 27, 2019, maintaining an unused **$75 million** revolving credit facility[69](index=69&type=chunk)[70](index=70&type=chunk) Segment Net Sales and Operating Profit (Three Months Ended Jan 1, 2021 vs Dec 27, 2019) (In thousands) | Segment | Net Sales (Q1'21) | Net Sales (Q1'20) | % Change | Operating Profit (Q1'21) | Operating Profit (Q1'20) | | :--- | :--- | :--- | :--- | :--- | :--- | | Fishing | $126,859 | $99,193 | 27.9% | $27,763 | $15,018 | | Camping | $12,185 | $7,505 | 62.4% | $2,808 | $66 | | Watercraft Rec. | $12,397 | $4,803 | 158.1% | $1,069 | $(1,563) | | Diving | $14,090 | $16,458 | -14.4% | $(341) | $205 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 fiscal 2021 performance to increased outdoor recreation demand, driving **29% net sales growth** and improved gross margin, while maintaining a strong, debt-free balance sheet [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q1 2021 net sales increased **29% to $165.7 million**, driven by strong growth in outdoor recreation segments, improving gross profit margin to **45.3%** - The increase in sales is mainly attributable to **increased participation** in outdoor recreation activities as a result of social distancing and other indoor activity restrictions related to the COVID-19 pandemic[123](index=123&type=chunk) Net Sales by Segment (Three Months Ended) (In thousands) | Segment | Jan 1, 2021 | Dec 27, 2019 | % Change | | :--- | :--- | :--- | :--- | | Fishing | $126,999 | $99,278 | +28% | | Camping | $12,194 | $7,514 | +62% | | Watercraft Recreation | $12,443 | $4,809 | +159% | | Diving | $14,093 | $16,459 | -14% | | **Total** | **$165,667** | **$128,054** | **+29%** | - Gross profit margin improved to **45.3%** in Q1 2021 from **41.9%** in Q1 2020, primarily due to product mix and increased efficiencies, which offset **$700 thousand** of higher tariff costs[138](index=138&type=chunk) - The company anticipates a full-year negative impact of approximately **$7 million** from Section 301 tariffs in fiscal 2021, up from **$3.5 million** in fiscal 2020, due to expired exclusions and new tariffs[139](index=139&type=chunk) [Liquidity and Financial Condition](index=30&type=section&id=Liquidity%20and%20Financial%20Condition) The company maintains a **robust financial condition** with **$195.9 million in cash** and no debt, significantly improving cash flow from operations - The company's debt to total capitalization ratio was **0%** as of January 1, 2021, with a total debt balance of **$0**[148](index=148&type=chunk) - Accounts receivable increased by **$19.1 million** and inventories increased by **$11.0 million** compared to the prior year, consistent with higher sales volumes and efforts to meet increased demand[149](index=149&type=chunk) Summary of Cash Flows (Three months ended) | (In thousands) | Jan 1, 2021 | Dec 27, 2019 | | :--- | :--- | :--- | | Cash used for operating activities | $(11,238) | $(29,088) | | Cash used for investing activities | $(4,388) | $(3,307) | | Cash used for financing activities | $(2,589) | $(2,149) | [Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from commodity prices, interest rates, and foreign currency, with **COVID-19 and supply chain strains** posing significant uncertainties - The **COVID-19 pandemic** continues to pose a risk, with potential adverse impacts on the supply chain, manufacturing capabilities, and future consumer demand, although it has so far driven **heightened demand** for outdoor products[163](index=163&type=chunk) - Approximately **10%** of revenues for the quarter were denominated in foreign currencies, primarily euros and Canadian dollars; the company may use forward contracts to mitigate currency risk but held none at the end of the period[166](index=166&type=chunk)[77](index=77&type=chunk) - Higher than normal demand levels may **strain the supply chain**, potentially causing **limited availability and increased costs** for key raw materials and components[171](index=171&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective with no material changes to internal control - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of January 1, 2021[172](index=172&type=chunk) - **No changes** occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[175](index=175&type=chunk) PART II: OTHER INFORMATION [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its financial statements - In the normal course of business, the Company may be involved in various legal proceedings, but **none are currently expected to have a material adverse effect** on its financial statements[176](index=176&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights the **high volatility of Class A Common Stock price**, with no other material changes to previously disclosed risks - A new risk factor was added highlighting that the trading price of the Class A Common Stock is **highly volatile** and shareholders may not be able to resell shares at or above the price they paid[177](index=177&type=chunk)[178](index=178&type=chunk) - **No other material changes** were made to the risk factors previously disclosed in the annual report on Form 10-K[180](index=180&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section references the Exhibit Index, including **CEO and CFO certifications** and financial data in XBRL format - The report includes **CEO and CFO certifications** under Sections 302 and 906 of the Sarbanes-Oxley Act[187](index=187&type=chunk) - Financial statements and notes are provided in **XBRL format** as required[187](index=187&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 2, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 0-16255 JOHNSON OUTDOORS INC. (Exact name of registrant as specified in its charter) Wisconsin 39-1536083 (State or other jurisdiction o ...