jout-20240329

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 March 29, 2024

☐ 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 April 26, 2024, 9,093,582 shares of Class A and 1,207,760 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 six months ended March 29, 202 4 and March 31, 2023	- 1

		Condensed Consolidated Statements of Comprehensive Income - Three and six months ended March 29, 202 4 and March 31, 2023	- 2

		Condensed Consolidated Balance Sheets - March 29, 202 4 , September 29, 2023, and March 31, 2023	- 3

		Condensed Consolidated Statements of Shareholders' Equity - Three and six months ended March 29, 202 4 and March 31, 2023	- 4

		Condensed Consolidated Statements of Cash Flows - Six months ended March 29, 202 4 and March 31, 2023	- 5

		Notes to Condensed Consolidated Financial Statements	- 6

	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	- 26

	Item 5.	Other Information	- 26

	Item 6.	Exhibits	- 26

		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				Six Months Ended
(thousands, except per share data)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Net sales	$	175,856	$	202,115	$	314,500	$	380,452
Cost of sales	114,425		126,780		200,215		242,338
Gross profit	61,431		75,335		114,285		138,114
Operating expenses:
Marketing and selling	39,589		40,583		69,931		74,081
Administrative management, finance and information systems	13,966		15,022		28,367		31,306

Research and development	8,129		8,340		16,194		15,865
Total operating expenses	61,684		63,945		114,492		121,252
Operating (loss) profit	(253)		11,390		(207)		16,862
Interest income	(857)		(735)		(2,055)		(1,562)
Interest expense	40		38		78		75
Other income, net	(2,448)		(7,861)		(7,141)		(9,765)
Profit before income taxes	3,012		19,948		8,911		28,114
Income tax expense	856		5,087		2,800		7,374
Net income	$	2,156	$	14,861	$	6,111	$	20,740

Weighted average common shares - Basic:
Class A	9,010		8,970		8,999		8,954
Class B	1,208		1,208		1,208		1,208
Participating securities	16		20		18		17
Weighted average common shares - Dilutive	10,234		10,198		10,225		10,179
Net income per common share - Basic:
Class A	$	0.21	$	1.47	$	0.59	$	2.05
Class B	$	0.21	$	1.33	$	0.59	$	1.86
Net income per common share - Diluted:
Class A	$	0.21	$	1.45	$	0.59	$	2.02
Class B	$	0.21	$	1.45	$	0.59	$	2.02

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				Six Months Ended
(thousands)	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Net income	$	2,156	$	14,861	$	6,111	$	20,740
Other comprehensive income (loss):
Foreign currency translation	2,379		507		680		3,444
Unrealized (loss) gain on available-for-sale securities, net of tax	(18)		—		84		—
Change in pension plans, net of tax	8		8		15		16
Total other comprehensive income	2,369		515		779		3,460
Total comprehensive income	$	4,525	$	15,376	$	6,890	$	24,200

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)	March 29, 2024		September 29, 2023		March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	60,356	$	111,854	$	107,648
Short term investments	23,914		26,764		—
Accounts receivable, net	129,345		43,159		144,600
Inventories	249,201		261,474		236,671
Other current assets	14,513		15,405		7,371
Total current assets	477,329		458,656		496,290
Investments	2,157		13,943		—
Property, plant and equipment, net of accumulated depreciation of $184,519, $177,426 and $171,961, respectively	94,604		94,353		93,740
Right of use assets	50,880		50,746		54,080
Deferred income taxes	18,682		18,352		11,478
Goodwill	11,167		11,172		11,169
Other intangible assets, net	8,377		8,472		8,505
Other assets	28,482		25,912		25,620
Total assets	$	691,678	$	681,606	$	700,882
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	50,374	$	42,744	$	51,855
Current lease liability	7,682		7,009		7,148
Accrued liabilities:
Salaries, wages and benefits	14,904		16,741		18,506
Accrued warranty	10,985		11,741		11,129
Accrued discounts and returns	8,727		8,176		8,647
Accrued customer programs	3,848		3,774		4,736
Other	12,012		13,821		13,585
Total current liabilities	108,532		104,006		115,606
Non-current lease liability	44,915		45,335		48,413
Deferred income taxes	1,867		1,838		1,867
Retirement benefits	1,601		1,588		1,635
Deferred compensation liability	27,183		24,607		24,148
Other liabilities	7,491		4,495		1,806
Total liabilities	191,589		181,869		193,475
Shareholders’ equity:
Common stock:
Class A shares issued and outstanding: 9,093,582, 9,043,189 and 9,047,113, respectively	456		453		453
Class B shares issued and outstanding: 1,207,760, 1,207,760 and 1,207,798, respectively	61		61		61
Capital in excess of par value	88,990		88,234		87,150
Retained earnings	408,970		409,574		417,274
Accumulated other comprehensive income	4,102		3,323		4,080
Treasury stock at cost, shares of Class A common stock: 35,353, 25,342 and 20,149, respectively	(2,490)		(1,908)		(1,611)
Total shareholders’ equity	500,089		499,737		507,407
Total liabilities and shareholders’ equity	$	691,678	$	681,606	$	700,882

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

- 3 -


Index			JOHNSON OUTDOORS INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited)


Six Months Ended March 29, 2024
(thousands except for shares)	Shares	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock
BALANCE AT SEPTEMBER 29, 2023	10,250,949	$	514	$	88,234	$	409,574	$	3,323	$	(1,908)
Net income	—	—		—		3,955		—		—
Dividends declared	—	—		—		(3,347)		—		—

SEC Form 10-Q filed by Johnson Outdoors Inc.