jout-20230630

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 June 30, 2023

☐ 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 of incorporation or organization)						(I.R.S. Employer Identification No.)

555 Main Street, Racine, Wisconsin 53403

(Address of principal executive offices)

(262) 631-6600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, $.05 par value per share	JOUT	NASDAQ Global Select MarketSM

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act: Large accelerated filer ☐Accelerated filer ☒Non-accelerated filer ☐Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 28, 2023, 9,043,151 shares of Class A and 1,207,798 shares of Class B common stock of the Registrant were outstanding.


			JOHNSON OUTDOORS INC.


Index			Page No.

PART I	FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Condensed Consolidated Statements of Operations - Three and nine months ended June 30 , 2023 and July 1, 2022	- 1

		Condensed Consolidated Statements of Comprehensive Income - Three and nine months ended June 30 , 2023 and July 1, 2022	- 2

		Condensed Consolidated Balance Sheets - June 30 , 2023, September 30, 2022, and July 1, 2022	- 3

		Condensed Consolidated Statements of Shareholders' Equity - Three and nine months ended June 30 , 2023 and July 1, 2022	- 4

		Condensed Consolidated Statements of Cash Flows - Nine months ended June 30 , 2023 and July 1, 2022	- 6

		Notes to Condensed Consolidated Financial Statements	- 7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	- 20

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	- 26

	Item 4.	Controls and Procedures	- 26

PART II	OTHER INFORMATION

	Item 1.	Legal Proceedings	- 26

	Item 1A.	Risk Factors	- 27

	Item 5.	Other Information	- 27

	Item 6.	Exhibits	- 27

		Signatures	- 27

		Exhibit Index	- 28


Index			JOHNSON OUTDOORS INC.

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


	Three Months Ended				Nine Months Ended
(thousands, except per share data)	June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
Net sales	$	187,047	$	203,819	$	567,499	$	546,966
Cost of sales	109,460		130,310		351,798		344,241
Gross profit	77,587		73,509		215,701		202,725
Operating expenses:
Marketing and selling	39,504		34,823		113,585		98,746
Administrative management, finance and information systems	12,638		8,273		43,944		30,752

Research and development	8,002		6,614		23,867		20,239
Total operating expenses	60,144		49,710		181,396		149,737
Operating profit	17,443		23,799		34,305		52,988
Interest income	(1,244)		(144)		(2,806)		(339)
Interest expense	39		30		114		117
Other (income) expense, net	(1,174)		4,669		(10,939)		6,167
Profit before income taxes	19,822		19,244		47,936		47,043
Income tax expense	5,021		5,162		12,395		12,205
Net income	$	14,801	$	14,082	$	35,541	$	34,838

Weighted average common shares - Basic:
Class A	8,980		8,924		8,963		8,909
Class B	1,208		1,208		1,208		1,208
Participating securities	22		29		16		31
Weighted average common shares - Dilutive	10,210		10,161		10,187		10,148
Net income per common share - Basic:
Class A	$	1.46	$	1.40	$	3.51	$	3.47
Class B	$	1.33	$	1.27	$	3.19	$	3.15
Net income per common share - Diluted:
Class A	$	1.44	$	1.38	$	3.47	$	3.42
Class B	$	1.44	$	1.38	$	3.47	$	3.42

The accompanying notes are an integral part of the condensed consolidated financial statements.

- 1 -


Index			JOHNSON OUTDOORS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)


	Three Months Ended				Nine Months Ended
(thousands)	June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
Net income	$	14,801	$	14,082	$	35,541	$	34,838
Other comprehensive income (loss):
Foreign currency translation	1,018		(2,770)		4,462		(3,025)
Unrealized gain (loss) on available-for-sale securities, net of tax	(126)		—		(126)		—
Change in pension plans, net of tax	9		(7)		25		25
Total other comprehensive income (loss)	901		(2,777)		4,361		(3,000)
Total comprehensive income	$	15,702	$	11,305	$	39,902	$	31,838

The accompanying notes are an integral part of the condensed consolidated financial statements.

- 2 -


Index			JOHNSON OUTDOORS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


(thousands, except share data)	June 30, 2023		September 30, 2022		July 1, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	122,596	$	129,803	$	117,567
Short term investments	26,651		—		—
Accounts receivable, net	94,644		91,919		103,244
Inventories	235,069		248,649		250,956
Other current assets	6,345		9,945		9,447
Total current assets	485,305		480,316		481,214
Investments	14,045		—		—
Property, plant and equipment, net of accumulated depreciation of $175,820, $171,843 and $170,201, respectively	95,257		89,125		85,879
Right of use assets	53,104		56,625		50,284
Deferred income taxes	11,437		11,411		13,097
Goodwill	11,186		11,160		11,209
Other intangible assets, net	8,444		8,372		8,438
Other assets	26,706		22,922		25,721
Total assets	$	705,484	$	679,931	$	675,842
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	45,728	$	53,796	$	50,780
Current lease liability	6,985		7,223		6,348
Accrued liabilities:
Salaries, wages and benefits	19,616		20,806		20,883
Accrued warranty	12,249		9,639		10,863
Income taxes payable	—		3,186

SEC Form 10-Q filed by Johnson Outdoors Inc.