What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-02-02 compared with 2023-08-03 · 71 added, 105 removed, 102 unchanged (63% of the section changed)

1 unchanged sentence

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) includes comments and analysis relating to the results of operations and financial condition of Johnson Outdoors Inc.

and its subsidiaries (collectively, the “Company”) as of and for the three and nine month periods ended June 30, 2023 and July 1, 2022.

and its subsidiaries (collectively, the “Company”) as of and for the three month periods ended December 29, 2023 and December 30, 2022.

All monetary amounts, other than share and per share amounts, are stated in thousands.

6 unchanged sentences

This discussion should be read in conjunction with the Condensed Consolidated Financial Statements and related notes that immediately precede this section, as well as the Company’s Annual Report on Form 10-K for the fiscal year ended September 29, 2023 which was filed with the Securities and Exchange Commission on December 8, 2023.

JOHNSON OUTDOORS INC.

Forward Looking Statements

3 unchanged sentences

Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results or outcomes to differ materially from those currently anticipated.

Factors that could affect actual results or outcomes include the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K which was filed with the Securities and Exchange Commission on December 9, 2022 and the following:

Factors that could affect actual results or outcomes include the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K for the fiscal year ended September 29, 2023 which was filed with the Securities and Exchange Commission on December 8, 2023 and the following:

changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets;

12 unchanged sentences

fluctuations in the prices of raw materials or the availability of raw materials or components used by the Company;

any disruptions in the Company's supply chain as a result of material fluctuations in the Company's order volumes and requirements for raw materials and other components, or the demand for those same raw materials and components by third parties, necessary to manufacture and produce the Company's products including related to

JOHNSON OUTDOORS INC.

shortages in procuring necessary raw materials and components to manufacture and produce such products;

the success of the Company’s suppliers and customers and the impact of any consolidation in the industries of the Company's suppliers and customers;

13 unchanged sentences

Johnson-Leipold, the Company’s Chairman and Chief Executive Officer, members of her family and related entities.

Coronavirus (COVID-19)

The COVID-19 pandemic drove consumer desire to engage in socially distant and safe activities outdoors.

As a result, increased participation in outdoor recreation also increased demand for our products across many of our Company segments.

During the post-pandemic period, and specifically the first three quarters of fiscal 2023, participation levels in some of our outdoor recreation segments has substantially declined from the pandemic-driven market levels.

Moreover, in addition to impacting demand for Company products, COVID-19 and the resulting macroeconomic dynamics also caused widely-documented supply chain and logistics disruptions across industries, as well as inflationary pressures (especially as it relates to raw material and purchased component prices).

These factors have impacted the timing, sourcing, availability and cost of raw materials and components that are necessary to manufacture our products, all of which adversely impacted our margins and inventory levels during fiscal 2022.

During the first three quarters of fiscal 2023, the Company saw improvement in the availability of certain components necessary to complete finished products and converted a significant portion of its raw material inventory to finished goods available for shipping.

Despite this, reduced consumer participation has resulted in lower demand in some of our segments which has caused substantially lower sales, and higher inventory levels.

Net sales of $187,047 for the third quarter of fiscal 2023 decreased $16,772, or 8%, from the same period in the prior year.

Despite the decrease in sales between quarters, material and freight cost reductions helped drive a 5.4 point improvement in gross margin year over year resulting in a $4,078 gross profit increase between quarters.

Nonetheless, operating expenses increased by 21%, causing a $6,356 decrease in operating profit from the prior year quarter.

Profit before income taxes increased slightly, due to net investment gains and earnings on the Company's deferred compensation plan assets, which are recorded in Other income, and fully offset the deferred compensation expense that contributed to the increase in operating expenses.

During the second fiscal quarter of 2023, the Company sold the Military and Commercial Tents product lines of its Camping business segment to a third party in an asset sale for a purchase price of $14,990 which closed on March 17, 2023.

The net book value of the assets and liabilities sold was approximately $8,350, resulting in a gain on sale of approximately $6,640, which is recorded in Other (income) expense, net in the Company’s accompanying Condensed Consolidated Statements of Operations.

The purchase price and the net proceeds received by the Company related to this sale were subject to customary purchase price adjustment provisions and Company indemnity obligations set forth in the definitive purchase agreement.

Accordingly, during the third fiscal quarter, a working capital true-up was recorded, which reduced the purchase price and the final net gain to approximately $6,560.

Net sales of $138,644 for the first quarter of fiscal 2024 decreased $39,693, or 22%, from the same period in the prior year.

The decrease between quarterly periods generally stemmed from a more challenging market in the current year, with softening consumer demand for the Company's outdoor recreation products across all segments, other than Diving.

In the Diving segment, sales were generally flat when excluding the impacts of foreign currency translation.

Despite the decrease in sales between quarters, material and freight cost reductions helped drive a 2.9 point improvement in gross margin in the current year

JOHNSON OUTDOORS INC.

quarter versus the prior year quarter.

Additionally, operating expenses decreased by 8% between quarters.

However, these expense and cost improvements between quarterly periods were not enough to overcome the decline in sales volume, causing a $5,426 decrease in operating profit from the prior year quarter.

The Company’s business is seasonal in nature.

The third fiscal quarter traditionally falls within the Company’s primary selling season for its warm-weather outdoor recreation products.

The first fiscal quarter traditionally falls prior to the Company’s primary selling season for its warm-weather outdoor recreation products.

The table below sets forth a historical view of the Company’s seasonality during the last three fiscal years.

Due to the timing of the COVID-19 outbreak, the Company's traditional seasonal sales pacing, where our heaviest sales volumes typically occurred during our second and third fiscal quarters, shifted during fiscal 2020.

2023 2022 2021

10 unchanged sentences

The Company’s net sales and operating profit (loss) by business segment for the periods shown below were as follows:

Three Months Ended Nine Months Ended

June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022

Three Months Ended

December 29, 2023 December 30, 2022

Fishing $ 110,492 $ 138,041

12 unchanged sentences

See “Note 17 – Segments of Business” of the notes to the accompanying Condensed Consolidated Financial Statements for the definition of segment net sales and operating profit.

Consolidated net sales for the three months ended June 30, 2023 were $187,047, a decrease of $16,772, or 8%, compared to $203,819 for the three months ended July 1, 2022.

Foreign currency translation had an unfavorable impact of less than 1% on current year third quarter net sales compared to the prior year's third quarter net sales.

Net sales for the three months ended June 30, 2023 for the Fishing business were $137,460, an increase of $895, or 1%, from $136,565 during the third fiscal quarter of the prior year.

The increase in sales over the prior year quarter is primarily attributable to product price increases.

Consolidated net sales for the three months ended December 29, 2023 were $138,644, a decrease of $39,693, or 22%, compared to $178,337 for the three months ended December 30, 2022.

Foreign currency translation had an unfavorable impact of approximately 1% on current year first quarter net sales compared to the prior year's first quarter net sales.

Net sales for the three months ended December 29, 2023 for the Fishing business were $110,492, a decrease of $27,549, or 20%, from $138,041 during the first fiscal quarter of the prior year.

In the prior year quarter, as supply chain constraints began to ease, higher sales volumes were fueled by customers replenishing their inventory levels, coming off the peak of pandemic-

JOHNSON OUTDOORS INC.

Net sales for the Camping business were $11,658 for the third quarter of the current fiscal year, a decrease of $11,821, or 50%, from the prior year net sales during the same period of $23,479 due to decreased sales of Jetboil and Eureka!

consumer camping products, as demand declined from the increased levels seen during the pandemic.

Additionally, approximately $4,900 of the decrease from the prior year quarter was related to the sale of the Military and Commercial Tents product lines described above.

Net sales for the third quarter of fiscal 2023 for the Watercraft Recreation business were $15,726, a decrease of $6,146, or 28%, compared to $21,872 in the prior year same period.

Reduced demand in the overall market from the elevated levels seen during the pandemic drove the decline from the prior year.

Net sales for Diving, our most global business, for the third quarter of fiscal 2023 were $22,227, which was relatively flat when compared to net sales of $22,201 for the three months ended July 1, 2022.

Foreign currency translation had a favorable impact of less than 1% on sales in this segment versus the prior year quarter.

For the nine months ended June 30, 2023, consolidated net sales of $567,499 increased $20,533 or 4% compared to $546,966 for the nine months ended July 1, 2022.

Foreign currency translation had an unfavorable impact of less than 1% on net sales of the current year to date period versus the prior year to date period.

Net sales for the nine months ended June 30, 2023 for the Fishing business were $430,842, an increase of $56,598, or 15% from $374,244 during the same period of the prior year.

In addition to price increases (which accounted for approximately 6 points of the year over year increase in net sales), the increase over the prior year to date period was driven mainly by improved supply and component availability over the prior year, resulting in our ability to satisfy demand for product and fulfill orders.

Net sales for the Camping business were $36,996 for the nine months ended June 30, 2023, a decrease of $19,784, or 35%, from the prior year net sales during the same period of $56,780, due to decreased demand from the increased levels seen during the pandemic.

Approximately $4,900 of the decrease over the prior year to date period was related to the sale of the Military and Commercial Tents product lines described above.

Net sales for the nine months ended June 30, 2023 for the Watercraft Recreation business were $38,274, a decrease of $21,207, or 36%, compared to $59,481 in the prior year same period.

Reduced demand in the overall market from the elevated levels seen during the pandemic drove the decline from the prior year.

Diving net sales were $61,594 for the nine months ended June 30, 2023 versus $56,886 for the nine months ended July 1, 2022, an increase of $4,708, or 8%.

The sales increase was largely due to increased demand for our products as the global tourism industry continued to recover from the pandemic.

There was an unfavorable effect of foreign currency translation of 2% versus the prior year to date period.

driven consumer demand.

As consumer demand has softened in the current year quarter, customers are tightly managing their inventory levels in anticipation of the prime retail sales season.

Net sales for the Camping business were $5,913 for the first quarter of the current fiscal year, a decrease of $5,700, or 49%, from the prior year net sales during the same period of $11,613, due primarily to declines in the market.

Additionally, approximately $2,600 of the decrease from the prior year quarter was related to the previously reported sale of the Military and Commercial Tents product lines of its Camping business during the second quarter of fiscal 2023.

Net sales for the first quarter of fiscal 2024 for the Watercraft Recreation business were $4,813, a decrease of $4,845, or 50%, compared to $9,658 in the prior year same period.

Reduced demand in the overall market drove the decline from the prior year.

Foreign currency translation had an unfavorable impact of approximately 1% on current year first quarter net sales compared to the prior year's first quarter net sales.

Net sales for Diving, our most global business, for the first quarter of fiscal 2024 were $17,478, which declined $1,581, or 8%, compared to net sales of $19,059 for the three months ended December 30, 2022.

Foreign currency translation had an unfavorable impact of approximately 6% on sales in this segment versus the prior year quarter.

Excluding the effect of foreign currency translation, the Company experienced modest declines in demand for Diving products between quarters.

Cost of Sales

Cost of sales for the three months ended June 30, 2023 of $109,460 decreased $20,850 compared to $130,310 for the three months ended July 1, 2022.

The decrease year over year was driven primarily by decreased sales volumes, as well as decreased costs on freight and certain materials between quarters.

For the nine months ended June 30, 2023, cost of sales was $351,798 compared to $344,241 in the same period of the prior year.

The increase year over year was primarily driven by increased sales volumes, offset in part by reductions in freight costs from the elevated levels seen in the prior year.

Cost of sales for the three months ended December 29, 2023 of $85,790 decreased $29,768 compared to $115,558 for the three months ended December 30, 2022.

The decrease year over year was driven primarily by decreased sales volumes, as well as decreased costs of certain materials and lower inbound freight between quarters.

Gross Profit Margin

For the three months ended June 30, 2023, gross profit as a percentage of net sales was 41.5% compared to 36.1% in the three month period ended July 1, 2022.

Factors impacting the change in gross profit percentage between quarters included the implementation of price increases across product lines, as well as decreased costs on freight and certain materials.

For the nine months ended June 30, 2023, gross profit as a percentage of net sales was 38.0% compared to 37.1% in the prior year nine month period.

Price increases and relief in freight costs were also the primary drivers of the margin improvement for the year to date period.

For the three months ended December 29, 2023, gross profit as a percentage of net sales was 38.1% compared to 35.2% in the three month period ended December 30, 2022.

The improvement in gross profit percentage between quarters was primarily due decreased costs of certain materials and lower inbound freight.

Operating Expenses

Operating expenses were $60,144 for the three months ended June 30, 2023, compared to $49,710 for the three months ended July 1, 2022.

The increase of $10,434 was primarily due to higher warranty expense, marketing spend and deferred compensation expense, offset in part by the impact of lower sales volumes between quarters.

More favorable market conditions

JOHNSON OUTDOORS INC.

on the Company's deferred compensation plan assets resulted in approximately $5,100 of higher deferred compensation expense recorded in the Company's Corporate segment in the current year quarter as compared to the prior year quarter.

Operating expenses were $52,808 for the three months ended December 29, 2023, compared to $57,307 for the three months ended December 30, 2022.

The decrease of $4,499 was primarily due to lower sales volumes between quarters, as well as lower professional services expense, partially offset by more favorable market conditions on the Company's deferred compensation plan assets, which resulted in approximately $1,300 of higher deferred compensation expense recorded in the Company's Corporate segment in the current year quarter as compared to the prior year quarter.

This increase in expense was entirely offset by a gain in Other (income) expense, net related to marking these deferred compensation plan assets to market.

Operating expenses were $181,396 for the nine months ended June 30, 2023, compared to $149,737 for the nine months ended July 1, 2022.

The increase of $31,659 was primarily due to higher warranty expense, marketing spend, increased compensation costs, professional services and deferred compensation expense, between periods.

For the year to date period, deferred compensation expense recorded in the Corporate segment increased approximately $8,600 as compared to the prior year to date period, which was entirely offset by a gain in Other (income) expense, net.

Operating Profit

Operating profit on a consolidated basis for the three month period ended June 30, 2023 was $17,443, compared to an operating profit of $23,799 in the third quarter of the prior fiscal year.

Higher operating expenses in the current year quarter, as discussed above, was the primary driver of the decrease in operating profit between quarters.

Operating profit on a consolidated basis for the nine months ended June 30, 2023 declined $18,683 to $34,305, compared to an operating profit of $52,988 in the prior year to date period despite a 4% increase in net sales primarily due to the increase in operating expenses between periods discussed above.

Interest expense was $39 and $30 for the three months ended June 30, 2023 and July 1, 2022, respectively.

Interest expense was $114 for the nine months ended June 30, 2023 compared to $117 or the nine months ended July 1, 2022.

Interest income was $1,244 and $144 for the three months ended June 30, 2023 and July 1, 2022, respectively.

Interest income was $2,806 for the nine months ended June 30, 2023 compared to $339 for the nine months ended July 1, 2022.

The increase in interest income over the prior year periods was driven by increased interest rates, as well as increased investment or cash balances during the third fiscal quarter of 2023.

Operating profit on a consolidated basis for the three month period ended December 29, 2023 was $46, compared to $5,472 in the first quarter of the prior fiscal year.

Lower sales volumes in the current year quarter, which were partially offset by lower cost of sales and operating expenses between quarters, all as discussed above, was the primary driver of the decrease in operating profit between quarters.

Interest expense was $38 and $37 for the three months ended December 29, 2023 and December 30, 2022, respectively.

Interest income was $1,198 and $827 for the three months ended December 29, 2023 and December 30, 2022, respectively.

The increase in interest income over the prior year periods was driven by increased interest rates, as well as increased investment or cash balances during the first fiscal quarter of 2024.

Other Expense (Income), net

Other income was $1,174 for the three months ended June 30, 2023 compared to other expense of $4,669 in the prior year period.

The main driver of the $5,843 increase over the prior year quarter is the net investment gains and earnings on the assets related to the Company’s non-qualified deferred compensation plan, which were $1,335 in the three month period ended June 30, 2023 compared to losses of $3,741 in the three month period ended July 1, 2022.

For the three months ended June 30, 2023, foreign currency exchange losses were $76 compared to $807 for the three months ended July 1, 2022.

For the nine months ended June 30, 2023, other income was $10,939 compared to other expense of $6,167 in the nine months ended July 1, 2022.

The main driver of the $17,106 increase over the prior year period include the following:

a gain on the sale of the Military and Commercial Tents product lines of approximately $6,560 recorded in the current year period;

net investment gains and earnings on the assets related to the Company's non-qualified deferred compensation plan of $4,159 in the nine months ended June 30, 2023 compared to losses of $4,443 in the nine months ended July 1, 2022;

and foreign currency exchange gains of $155 for the nine months ended June 30, 2023, compared to losses of $1,320 for the nine months ended July 1, 2022.

Other income was $4,693 for the three months ended December 29, 2023 compared to $1,904 in the prior year period.

The main drivers of the $2,789 increase over the prior year quarter were a gain of approximately $1,900 on the sale of a building during the current year quarter as well as the $1,300 increase in net investment gains and earnings on the assets related to the

JOHNSON OUTDOORS INC.

Company’s non-qualified deferred compensation plan.

For the three months ended December 29, 2023, foreign currency exchange losses were $191 compared to gains of $276 for the three months ended December 30, 2022.

Income Tax Expense

The Company’s provision for income taxes is based upon estimated annual effective tax rates in the tax jurisdictions in which the Company operates.

The effective tax rate for the three and nine month periods ended June 30, 2023 were 25.3% and 25.9%, respectively, compared to 26.8% and 25.9% in the corresponding periods of the prior year.

Net income for the three months ended June 30, 2023 was $14,801, or $1.44 per diluted common class A and B share, compared to net income of $14,082, or $1.38 per diluted common class A and B share, for the third quarter of the prior fiscal year.

JOHNSON OUTDOORS INC.

Net income for the nine months ended June 30, 2023 was $35,541, or $3.47 per diluted common class A and B share, compared to net income of $34,838, or $3.42 per diluted common class A and B share, for the nine months ended July 1, 2022.

The effective tax rate for the three month periods ended December 29, 2023 and December 30, 2022, were 33.0% and 28.0%, respectively.

Net income for the three months ended December 29, 2023 was $3,955, or $0.38 per diluted common class A and B share, compared to net income of $5,879, or $0.57 per diluted common class A and B share, for the first quarter of the prior fiscal year.

Liquidity and Financial Condition

Cash and cash equivalents and short term investments totaled $149,247 as of June 30, 2023, compared to $117,567 as of July 1, 2022.

The Company’s debt to total capitalization ratio was 0% as of June 30, 2023 and July 1, 2022.

The Company’s total debt balance was $0 as of each of June 30, 2023 and July 1, 2022.

Cash and cash equivalents and short term investments totaled $109,555 as of December 29, 2023, compared to $103,422 as of December 30, 2022.

The Company’s debt to total capitalization ratio was 0% as of December 29, 2023 and December 30, 2022.

The Company’s total debt balance was $0 as of each of December 29, 2023 and December 30, 2022.

See “Note 11 – Indebtedness” in the notes to the Company’s accompanying condensed consolidated financial statements for further discussion.

Accounts receivable, net of allowance for doubtful accounts, were $94,644 as of June 30, 2023, a decrease of $8,600 compared to $103,244 as of July 1, 2022.

The decrease is consistent with the decreased third quarter sales volumes year over year.

Inventories were $235,069 as of June 30, 2023, a decrease of $15,887, compared to $250,956 as of July 1, 2022.

Accounts payable were $45,728 at June 30, 2023 compared to $50,780 as of July 1, 2022.

Accounts receivable, net of allowance for doubtful accounts, were $83,043 as of December 29, 2023, a decrease of $37,510 compared to $120,553 as of December 30, 2022.

The decrease is consistent with the decreased first quarter sales volumes year over year.

Inventories were $267,321 as of December 29, 2023, an increase of $15,796, compared to $251,525 as of December 30, 2022.

Lower replenishment volumes to the Company's customers and softening consumer demand resulted in elevated inventory levels, primarily in the Fishing segment.

Accounts payable were $43,403 at December 29, 2023 compared to $57,058 as of December 30, 2022.

The Company’s cash flows from operating, investing and financing activities, as presented in the Company’s accompanying Condensed Consolidated Statements of Cash Flows, are summarized in the following table:

Nine months ended

(thousands) June 30,

Three months ended

(thousands) December 29,

2023 December 30,

Cash (used for) provided by:

5 unchanged sentences

Operating Activities

Cash provided by operations totaled $45,210 for the nine months ended June 30, 2023 compared to cash used for operations of $86,413 during the corresponding period of the prior fiscal year.

The increase in cash provided by operations over the prior year nine month period was due primarily to higher inventory purchases in the prior year period, often at higher price points than historically paid, due to the Company's decision to build and procure certain raw material and component inventory in its attempt to mitigate against potential pandemic-related shortages in meeting product demand.

Depreciation and amortization charges were $11,815 for the nine month period ended June 30, 2023 compared to $10,434 for the corresponding period of the prior year.

Cash used for operations totaled $33,687 for the three months ended December 29, 2023 compared to $17,570 during the corresponding period of the prior fiscal year.

The increase in cash used for operations over the prior year three month period was due primarily to decreased sales volumes, higher inventory purchases, and other working capital changes that required greater usage of cash between quarters.

Depreciation and amortization charges were $5,027 for the three month period ended December 29, 2023 compared to $3,763 for the corresponding period of the prior year.

Investing Activities

Cash used for investing activities totaled $45,133 for the nine months ended June 30, 2023 compared to $25,150 for the corresponding period of the prior fiscal year.

Capital expenditures were $19,427 in the nine months ended June 30, 2023, compared to $25,162 in the prior year to date period which included investments in expansion of Fishing facilities to accommodate additional production.

Current year cash usage reflects investment of $40,696 in investments as well as proceeds of $14,990 related to the Big Tents sale previously discussed.

Cash provided by investing activities totaled $4,685 for the three months ended December 29, 2023 compared to cash used for investing activities of $6,649 for the corresponding period of the prior fiscal year.

Capital expenditures were $5,004 in the three months ended December 29, 2023, compared to $6,649 in the prior year to date period which included investments in expansion of Fishing facilities to accommodate additional production.

Current year cash provided by investing activities reflects maturity of investments of $7,500, as well as proceeds of $2,189 related to the sale of fixed assets, which predominantly

JOHNSON OUTDOORS INC.

consisted of the sale of a building, as discussed above.

Any additional capital expenditures in fiscal 2024 are expected to be funded by working capital.

Financing Activities

Cash used for financing activities totaled $9,591 for the nine months ended June 30, 2023 compared to $9,214 for the nine month period ended July 1, 2022 and represents the payment of dividends and purchase of treasury stock.

The Company had no debt during either nine month period ended June 30, 2023 and July 1, 2022.

Cash used for financing activities totaled $3,588 for the three months ended December 29, 2023 compared to $3,570 for the three month period ended December 30, 2022 and represents the payment of dividends and purchase of treasury stock.

The Company had no debt during either three month period ended December 29, 2023 and December 30, 2022.

See Note 11 "Indebtedness" to the accompanying Condensed Consolidated Financial Statements for additional information on our credit facilities.

As of June 30, 2023 the Company held approximately $45,029 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.

JOHNSON OUTDOORS INC.

As of December 29, 2023 the Company held approximately $42,442 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.

Contractual Obligations and Off Balance Sheet Arrangements

The Company has contractual obligations and commitments to make future payments including under operating leases and open purchase orders.

There have been no changes outside of the ordinary course of business in the specified contractual obligations during the quarter ended June 30, 2023.

There have been no changes outside of the ordinary course of business in the specified contractual obligations during the quarter ended December 29, 2023.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers compensation insurance.

Letters of credit outstanding were approximately $78 and $173 as of June 30, 2023 and July 1, 2022, respectively.

Letters of credit outstanding were approximately $67 and $173 as of December 29, 2023 and December 30, 2022, respectively.

The Company has no other off-balance sheet arrangements.

1 unchanged sentence

The Company’s critical accounting policies and estimates are identified in the Company’s Annual Report on Form 10-K for the fiscal year ending September 29, 2023 in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading “Critical Accounting Estimates”, which was filed with the Securities and Exchange Commission on December 8, 2023.

There were no significant changes to the Company’s critical accounting policies and estimates during the nine months ended June 30, 2023.

There were no significant changes to the Company’s critical accounting policies and estimates during the three months ended December 29, 2023.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis