What changed in this filing

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Item 1. Financial Statements

2025-02-03 compared with 2024-08-05 · 204 added, 249 removed, 410 unchanged (52% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Nine Months Ended

(thousands, except per share data) June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Three Months Ended

(thousands, except per share data) December 27, 2024 December 29, 2023

Net sales $ 107,649 $ 138,644

10 unchanged sentences

Other income, net ( 326 ) ( 4,693 )

Profit before income taxes 907 19,822 9,818 47,936

(Loss) profit before income taxes ( 18,927 ) 5,899

Income tax (benefit) expense ( 3,637 ) 1,944

Net income $ 1,622 $ 14,801 $ 7,733 $ 35,541

Net (loss) income $ ( 15,290 ) $ 3,955

Weighted average common shares - Basic:

3 unchanged sentences

Weighted average common shares - Dilutive 10,270 10,220

Net income per common share - Basic:

Net (loss) income per common share - Basic:

Class A $ ( 1.49 ) $ 0.39

Class B $ ( 1.49 ) $ 0.35

Net income per common share - Diluted:

Net (loss) income per common share - Diluted:

Class A $ ( 1.49 ) $ 0.38

2 unchanged sentences

JOHNSON OUTDOORS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended Nine Months Ended

(thousands) June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Net income $ 1,622 $ 14,801 $ 7,733 $ 35,541

Other comprehensive income (loss):

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

Three Months Ended

(thousands) December 27, 2024 December 29, 2023

Net (loss) income $ ( 15,290 ) $ 3,955

Other comprehensive (loss) income:

Foreign currency translation ( 4,915 ) 3,059

Unrealized gain (loss) on available-for-sale securities, net of tax 14 ( 126 ) 98 ( 126 )

Unrealized (loss) gain on available-for-sale securities, net of tax ( 1 ) 102

Change in pension plans, net of tax 9 7

Total other comprehensive (loss) income ( 4,907 ) 3,168

Total comprehensive income $ 1,203 $ 15,702 $ 8,093 $ 39,902

Total comprehensive (loss) income $ ( 20,197 ) $ 7,123

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

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

(thousands, except share data) June 28, 2024 September 29, 2023 June 30, 2023

(thousands, except share data) December 27, 2024 September 27, 2024 December 29, 2023

Current assets:

21 unchanged sentences

Accrued warranty 12,113 10,211 10,986

Income taxes payable 1,548 2,109 —

Accrued discounts and returns 6,980 7,430 9,232

25 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

Nine Months Ended June 28, 2024

Three Months Ended December 27, 2024

(thousands except for shares) Shares Common Stock Capital in

5 unchanged sentences

BALANCE AT SEPTEMBER 27, 2024 10,301,738 $ 517 $ 90,146 $ 369,592 $ 5,964 $ ( 2,795 )

Net income — — — 3,955 — —

Net loss — — — ( 15,290 ) — —

Dividends declared — — — ( 3,362 ) — —

2 unchanged sentences

Currency translation adjustment — — — — ( 4,915 ) —

Unrealized gain (loss) on available-for-sale securities, net of tax — — — — 102 —

Unrealized loss on available-for-sale securities, net of tax — — — — ( 1 ) —

Change in pension plans, net of tax of $ 3

Non-vested stock forfeitures ( 3,690 ) — 200 — — ( 200 )

Purchase of treasury stock at cost ( 2,657 ) — — — — ( 88 )

BALANCE AT DECEMBER 27, 2024 10,327,512 $ 518 $ 90,852 $ 350,940 $ 1,057 $ ( 3,083 )

Net income — — — 2,156 — —

Dividends declared — — — ( 3,368 ) — —

Award of non-vested shares 22,692 1 ( 1 ) — —

Stock-based compensation — — ( 180 ) — — —

Currency translation adjustment — — — — ( 2,379 ) —

Unrealized gain (loss) on available-for-sale securities, net of tax — — — — ( 18 ) —

Change in pension plans, net of tax of $ 2

Non-vested stock forfeitures ( 5,350 ) — 341 — — ( 341 )

BALANCE AT MARCH 29, 2024 10,301,342 $ 517 $ 88,990 $ 408,970 $ 4,102 $ ( 2,490 )

Net income — — — 1,622 — —

Dividends declared — — — ( 3,369 ) — —

Issuance of stock under employee stock purchase plan 4,937 — 172 — — —

Stock-based compensation — — 574 — — —

Currency translation adjustment — — — — ( 439 ) —

Unrealized gain (loss) on available-for-sale securities, net of tax — — — — 14 —

Change in pension plans, net of tax — — — — 6 —

Non-vested stock forfeitures ( 1,887 ) — 110 — — ( 110 )

BALANCE AT JUNE 28, 2024 10,304,392 $ 517 $ 89,846 $ 407,223 $ 3,683 $ ( 2,600 )

JOHNSON OUTDOORS INC.

Nine Months Ended June 30, 2023

Three Months Ended December 29, 2023

(thousands except for shares) Shares Common Stock Capital in

3 unchanged sentences

Comprehensive

Income (Loss) Treasury

Income Treasury

BALANCE AT SEPTEMBER 29, 2023 10,250,949 $ 514 $ 88,234 $ 409,574 $ 3,323 $ ( 1,908 )

4 unchanged sentences

Currency translation adjustment — — — — 3,059 —

Unrealized gain on available-for-sale securities, net of tax — — — — 102 —

Change in pension plans, net of tax of $ 3

1 unchanged sentence

BALANCE AT DECEMBER 29, 2023 10,284,000 $ 516 $ 88,830 $ 410,182 $ 6,491 $ ( 2,149 )

Net income — — — 14,861 — —

Dividends declared — — — ( 3,161 ) — —

Award of non-vested shares 13,674 — ( 744 ) — — 744

Stock-based compensation — — 971 — — —

Currency translation adjustment — — — — 507 —

Change in pension plans, net of tax of $ 3

BALANCE AT March 31, 2023 10,254,911 $ 514 $ 87,150 $ 417,274 $ 4,080 $ ( 1,611 )

Net income — — — 14,801 — —

Dividends declared — — — ( 3,148 ) — —

Issuance of stock under employee stock purchase plan 6,670 — 564 — — ( 299 )

Stock-based compensation — — 218 — — —

Tax effects on stock based awards — — — — — —

Non-vested stock forfeitures ( 10,632 ) — — — — —

Currency translation adjustment — — — — 1,018 —

Unrealized gain (loss) on available-for-sale securities, net of tax — — — — ( 126 ) —

Change in pension plans, net of tax of $ 3

BALANCE AT JUNE 30, 2023 10,250,949 $ 514 $ 87,932 $ 428,927 $ 4,981 $ ( 1,910 )

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

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

(thousands) June 28, 2024 June 30, 2023

CASH PROVIDED BY OPERATING ACTIVITIES

Net income $ 7,733 $ 35,541

Adjustments to reconcile net income to net cash used for operating activities:

Three Months Ended

(thousands) December 27, 2024 December 29, 2023

CASH USED FOR OPERATING ACTIVITIES

Net (loss) income $ ( 15,290 ) $ 3,955

Adjustments to reconcile net (loss) income to net cash used for operating activities:

Depreciation 4,675 4,945

2 unchanged sentences

Stock based compensation 507 598

Gain on disposal of productive assets ( 1,874 ) ( 6,488 )

Loss (Gain) on disposal of productive assets 19 ( 1,917 )

Deferred income taxes ( 6,471 ) ( 349 )

4 unchanged sentences

Other current assets ( 331 ) ( 862 )

Other non-current assets — 99

Other long-term liabilities ( 990 ) 4,474

1 unchanged sentence

( 36,909 ) ( 33,687 )

CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES

Purchase of investments ( 2,220 ) ( 40,696 )

CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES

Payments for purchase of businesses ( 12,180 ) —

Proceeds from maturity of short-term investments 9,764 7,500

3 unchanged sentences

CASH USED FOR FINANCING ACTIVITIES

Common stock transactions 172 761

Dividends paid ( 3,362 ) ( 3,347 )

2 unchanged sentences

Effect of foreign currency rate changes on cash ( 3,369 ) 1,197

Increase (Decrease) in cash and cash equivalents 14,969 ( 7,207 )

Decrease in cash and cash equivalents ( 50,228 ) ( 31,393 )

CASH AND CASH EQUIVALENTS

3 unchanged sentences

Cash paid for taxes $ 1,080 $ 1,093

Non-cash dividends 17 25

Cash paid for interest 35 28

6 unchanged sentences

In the opinion of management, these statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Johnson Outdoors Inc.

and subsidiaries (collectively, the “Company”) as of June 28, 2024 and June 30, 2023, and their results of operations for the three and nine month periods then ended and cash flows for the nine month periods then ended.

and subsidiaries (collectively, the “Company”) as of December 27, 2024 and December 29, 2023, and their results of operations for the three month periods then ended and cash flows for the three month periods then ended.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2024 which was filed with the Securities and Exchange Commission on December 11, 2024.

Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation.

These reclassifications had no effect on net earnings.

Due to seasonal variations and other factors, some of which are described herein, the results of operations for the three and nine months ended June 28, 2024 are not necessarily indicative of the results to be expected for the Company’s full 2024 fiscal year.

The current economic and business environment, including the level of demand in the consumer markets for outdoor recreation products, seasonality effects, enhancements or changes in competitor product offerings, and end consumer purchasing actions, all stemming therefrom, is beyond our control and remains highly uncertain and cannot be predicted at this time.

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

2 ACCOUNTS RECEIVABLE

Accounts receivable are stated net of allowances for credit losses of $ 649 , $ 907 and $ 902 as of June 28, 2024, September 29, 2023 and June 30, 2023, respectively.

Accounts receivable are stated net of allowances for credit losses of $ 3,587 , $ 3,543 and $ 1,108 as of December 27, 2024, September 27, 2024 and December 29, 2023, respectively.

The determination of the allowance for credit losses is based on a combination of factors.

12 unchanged sentences

In periods where there is a cumulative year to date net loss or no undistributed income because distributions through dividends exceed net income, Class B shares are treated as anti-dilutive and, therefore, net losses are allocated equally on a per share basis among all participating securities.

For the three month periods ended December 27, 2024, basic net loss per share for Class A and Class B shares was the same because there were no cumulative undistributed earnings and basic loss per share for Class A and Class B shares has been presented using the two class method described above.

For the three month periods ended December 29, 2023, basic income per share for the Class A and Class B shares has been presented using the two class method and reflects the allocation of undistributed income as described above.

Diluted net income per share is computed by dividing allocated net income by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options, restricted stock units (“stock units” or

JOHNSON OUTDOORS INC.

For the three and nine month periods ended June 28, 2024, basic net income per share for Class A and Class B shares was the same because there were no cumulative undistributed earnings and basic income per share for Class A and Class B shares has been presented using the two class method described above.

For the three and nine month periods ended June 30, 2023, basic income per share for the Class A and Class B shares has been presented using the two class method and reflects the allocation of undistributed income as described above.

“units”) and non-vested restricted stock.

Anti-dilutive stock options, units and non-vested stock are excluded from the calculation of diluted EPS.

2 unchanged sentences

In periods where the Company reports a net loss or no undistributed income because distributions through dividends exceed net income, the effect of anti-dilutive stock options and units is excluded and diluted loss per share is equal to basic loss per share for both classes of stock.

For the three and nine month periods ended June 28, 2024, the effect of non-vested restricted stock units is excluded from the diluted income per share calculation as their inclusion would have been anti-dilutive.

For the three and nine month periods ended June 30, 2023, diluted net income per share reflects the effect of dilutive stock units and assumes the conversion of Class B common stock into Class A common stock.

Shares of non-vested stock that could potentially dilute earnings per share in the future which were not included in the fully diluted computation because they would have been anti-dilutive totaled 69,044 and 64,654 for the three months ended June 28, 2024 and June 30, 2023, respectively, and 67,429 and 64,258 for the nine months ended June 28, 2024 and June 30, 2023, respectively.

Stock units that could potentially dilute earnings per share in the future and which were not included in the fully diluted computation because they would have been anti-dilutive were 71,176 and 46,501 for the three months ended June 28, 2024 and June 30, 2023, respectively, and 71,776 and 51,813 for the nine months ended June 28, 2024 and June 30, 2023, respectively.

For the three month periods ended December 27, 2024, the effect of non-vested restricted stock units is excluded from the diluted income per share calculation as their inclusion would have been anti-dilutive.

For the three month periods ended December 29, 2023, diluted net income per share reflects the effect of dilutive stock units and assumes the conversion of Class B common stock into Class A common stock.

Shares of non-vested stock that could potentially dilute earnings per share in the future which were not included in the fully diluted computation because they would have been anti-dilutive totaled 59,564 and 63,061 for the three months ended December 27, 2024 and December 29, 2023, respectively.

Stock units that could potentially dilute earnings per share in the future and which were not included in the fully diluted computation because they would have been anti-dilutive were 97,763 and 65,228 for the three months ended December 27, 2024 and December 29, 2023, respectively.

Dividends per share

Dividends per share for the three and nine month periods ended June 28, 2024 and June 30, 2023 were as follows:

Three Months Ended Nine months ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Dividends per share for the three month periods ended December 27, 2024 and December 29, 2023 were as follows:

Three Months Ended

December 27, 2024 December 29, 2023

Dividends declared per common share:

4 unchanged sentences

Current plans also allow for issuance of shares of restricted stock, restricted stock units or stock appreciation rights in lieu of stock options.

Under the Company’s 2023 Non-Employee Director Stock Ownership Plan and the 2020 Long-Term Incentive Plan (the only plans where shares currently remain available for future equity incentive awards) there were a total of 404,593 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at June 28, 2024.

Under the Company’s 2023 Non-Employee Director Stock Ownership Plan and the 2020 Long-Term Incentive Plan (the only plans where shares currently remain available for future equity incentive awards) there were a total of 322,657 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at December 27, 2024.

Share awards previously made under the Company's 2012 Non-Employee Director Stock Ownership Plan and its 2010 Long-Term Stock Incentive Plan, which no longer allow for additional share grants, also remain outstanding.

Non-vested Stock

JOHNSON OUTDOORS INC.

All shares of non-vested restricted stock awarded by the Company have been granted in the form of shares of Class A common stock at their fair market value on the date of grant and vest within one year from the date of grant for stock granted to directors and four years from the date of grant for stock granted to officers and employees.

All shares of non-vested restricted stock awarded by the Company have been granted in the form of shares of Class A common stock at their fair market value on the date of grant and vest within one year from the date of grant for stock granted to directors and within a period ranging from one to four years from the date of grant for stock granted to officers and employees, based on the terms of the agreement with such officer or employee.

The fair value at date of grant is based on the number of shares granted and the average of the Company’s high and low Class A common stock price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock price on the last preceding date on which the Company’s Class A shares traded.

A summary of non-vested stock activity for the nine months ended June 28, 2024 related to the Company’s stock ownership plans is as follows:

JOHNSON OUTDOORS INC.

A summary of non-vested stock activity for the three months ended December 27, 2024 related to the Company’s stock ownership plans is as follows:

Shares Weighted Average

3 unchanged sentences

Forfeitures ( 3,690 ) 54.20

Non-vested stock at June 28, 2024 70,250 59.18

Non-vested stock at December 27, 2024 76,378 48.03

Non-vested stock grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of shares by tendering a portion of the vested shares back to the Company.

Shares tendered back to the Company were 2,330 and 2,289 during the nine month periods ended June 28, 2024 and June 30, 2023, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 398 and $ 172 for the three month periods ended June 28, 2024 and June 30, 2023, respectively, and $ 1,148 and $ 1,117 for the nine month periods ended June 28, 2024 and June 30, 2023, respectively.

Unrecognized compensation cost related to non-vested stock as of June 28, 2024 was $ 2,085 , which amount will be amortized to expense through December 2027 or adjusted for changes in future estimated or actual forfeitures.

The fair value of restricted stock vested during the nine month periods ended June 28, 2024 and June 30, 2023 was $ 964 and $ 1,029 , respectively.

Shares tendered back to the Company were 1,609 and 2,330 during the three month periods ended December 27, 2024 and December 29, 2023, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $ 354 and $ 428 for the three month periods ended December 27, 2024 and December 29, 2023, respectively.

Unrecognized compensation cost related to non-vested stock as of December 27, 2024 was $ 1,951 , which amount will be amortized to expense through December 2027 or adjusted for changes in future estimated or actual forfeitures.

The fair value of restricted stock vested during the three month periods ended December 27, 2024 and December 29, 2023 was $ 169 and $ 409 , respectively.

Restricted Stock Units

2 unchanged sentences

The fair value at the date of grant is based on the number of units granted and the average of the Company’s high and low Class A common stock trading price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock trading price on the last preceding date on which the Company’s Class A shares traded.

A summary of RSU activity for the nine months ended June 28, 2024 follows:

A summary of RSU activity for the three months ended December 27, 2024 follows:

Number of RSUs Weighted Average

1 unchanged sentence

RSUs granted 57,792 33.14

RSUs vested ( 17,516 ) 88.49

RSUs vested and canceled due to performance targets not being met ( 17,041 ) 101.22

RSU's forfeited ( 3,690 ) 54.20

RSUs at June 28, 2024 85,330 64.46

For the three months ended June 28, 2024, the Company recognized expense of $ 201 related to RSUs.

For the nine months ended June 28, 2024, the Company recognized income of $ 239 related to RSUs as a result of reversing

JOHNSON OUTDOORS INC.

compensation expense previously recognized, due to an expectation that performance conditions won't be met for certain awards.

Stock compensation expense, net of forfeitures, related to RSUs was $ 28 and $ 953 for the three and nine month periods ended June 30, 2023, respectively.

Unrecognized compensation cost related to non-vested RSUs as of June 28, 2024 was $ 1,634 , which amount will be amortized to expense through September 2026 or adjusted for changes in future estimated or actual forfeitures.

RSUs at December 27, 2024 121,253 44.76

Stock compensation expense, net of forfeitures, related to RSUs was $ 115 and $ 139 for the three month periods ended December 27, 2024 and December 29, 2023, respectively.

Unrecognized compensation cost related to non-vested RSUs as of December 27, 2024 was $ 1,755 , which amount will be amortized to expense through September 2027 or adjusted for changes in future estimated or actual forfeitures.

RSU grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of units and issuance of unrestricted shares of Class A common stock by tendering a portion of such unrestricted shares back to the Company.

Shares tendered back to the Company for this purpose were 2,331 and 5,324 during the nine month periods ended June 28, 2024 and June 30, 2023, respectively.

The fair value of restricted stock units recognized as a tax deduction during the nine month periods ended June 28, 2024 and June 30, 2023 was $ 1,171 and $ 2,555 , respectively.

Because performance criteria was not met, the RSUs expiring in the period ended December 27, 2024 were canceled so shares tendered back to the Company for this purpose were 0 during the three month period ended December 27, 2024.

Shares tendered back to the Company for the reimbursement of withholding taxes were and 2,331 during the three month period ended December 29, 2023.

JOHNSON OUTDOORS INC.

The fair value of restricted stock units recognized as a tax deduction during the three month periods ended December 27, 2024 and December 29, 2023 was $ 0 and $ 1,015 , respectively.

Compensation expense related to units earned by employees (as opposed to grants to outside directors) is based upon the attainment of certain Company financial goals related to cumulative net sales and cumulative operating profit over a three-year performance period.

6 unchanged sentences

2009 Employees’ Stock Purchase Plan, which was most recently amended on March 2, 2017, and which provides for the issuance of shares of Class A common stock at a purchase price of not less than 85 % of the fair market value of such shares on the date of grant or on the date of purchase, whichever is lower.

During the three month period ended June 28, 2024, the Company issued 4,937 shares of Class A common stock and recognized $ 25 of income in connection with the Employees' Stock Purchase Plan.

During the nine month period ended June 28, 2024, the Company issued 4,937 shares of Class A common stock and recognized $ 83 of expense in connection with the Employees' Stock Purchase Plan.

During the three month period ended June 30, 2023, the Company issued 5,401 shares of Class A common stock and recognized $ 18 of expense in connection with the Plan.

During the nine month period ended June 30, 2023, the Company issued 5,401 shares of Class A common stock and recognized $ 72 of expense in connection with the Plan.

During the three month period ended December 27, 2024, the Company issued 0 shares of Class A common stock and recognized $ 38 of income in connection with the Employees' Stock Purchase Plan.

During the three month period ended December 29, 2023, the Company issued 0 shares of Class A common stock and recognized $ 31 of expense in connection with the Plan.

The Company leases certain facilities and machinery and equipment under long-term, non-cancelable operating leases.

The Company determines if an arrangement is a lease at inception.

As of June 28, 2024, the Company had approximately 150 leases, with remaining terms ranging from less than one year to 16 years.

As of December 27, 2024, the Company had approximately 150 leases, with remaining terms ranging from less than one year to 16 years.

Some of the leases contain variable payment terms, such as payments based on fluctuations in the Consumer Price Index (CPI).

4 unchanged sentences

The incremental borrowing rate is derived from information available to the Company at the lease commencement date based on lease length and location.

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended June 28, 2024 and June 30, 2023 were as follows:

JOHNSON OUTDOORS INC.

Three months ended Nine months ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three months ended December 27, 2024 and December 29, 2023 were as follows:

Three months ended

December 27, 2024 December 29, 2023

Operating lease costs $ 2,624 $ 2,465

2 unchanged sentences

Total lease cost $ 3,240 $ 3,135

Included in the amounts in the table above was rent expense to related parties of $ 314 and $ 941 for the three and nine months ended June 28, 2024, respectively, and $ 314 and $ 942 for the three and nine months ended June 30, 2023, respectively.

As of June 28, 2024, the Company did not have any finance leases or sublease agreements.

Included in the amounts in the table above was rent expense to related parties of $ 314 and $ 314 for the three months ended December 27, 2024 and December 29, 2023, respectively.

JOHNSON OUTDOORS INC.

As of December 27, 2024, the Company did not have any finance leases or sublease agreements.

Additionally, the Company does not have any leases in which it is the lessor.

While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended June 28, 2024.

During the second quarter of fiscal 2024, the Company entered into an agreement to obtain additional space at an existing lease site that will begin in fiscal 2025 and will result in additional estimated lease payments of approximately $ 2,000 over the remaining lease term, which are not included in the future minimum rental commitments below.

As of June 28, 2024, the Company did not have any other significant operating lease commitments that have not yet commenced.

While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended December 27, 2024.

As of December 27, 2024, the Company did not have any significant operating lease commitments that have not yet commenced.

Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:

Nine months ended

June 28, 2024 June 30, 2023

Three months ended

December 27, 2024 December 29, 2023

Operating leases:

7 unchanged sentences

ROU assets obtained in exchange for lease liabilities $ 3,228 $ 2,061

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 28, 2024 were as follows:

JOHNSON OUTDOORS INC.

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at December 27, 2024 were as follows:

Year Related parties included

3 unchanged sentences

2027 226 7,096

2027 226 5,771

Thereafter — 29,759

3 unchanged sentences

6 INCOME TAXES

For the three and nine months ended June 28, 2024 and June 30, 2023, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:

Three Months Ended Nine Months Ended

For the three months ended December 27, 2024 and December 29, 2023, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:

JOHNSON OUTDOORS INC.

Three Months Ended

(thousands, except tax rate data)

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Profit before income taxes $ 907 $ 19,822 $ 9,818 $ 47,936

December 27, 2024 December 29, 2023

(Loss) profit before income taxes $ ( 18,927 ) $ 5,899

Income tax (benefit) expense ( 3,637 ) 1,944

Effective income tax rate 19.2 % 33.0 %

The decrease in the effective tax rate for the three and nine months ended June 28, 2024 compared to the three and nine months ended June 30, 2023 was primarily related to a change in the geographic mix of profits or losses from a tax perspective for the current year period, as compared to the prior year period.

The decrease in the effective tax rate for the three months ended December 27, 2024 compared to the three months ended December 29, 2023 was primarily related to a change in the geographic mix of profits or losses from a tax perspective for the current year period, as compared to the prior year period.

The Company's effective tax rate is impacted by valuation allowances in certain foreign tax jurisdictions and, as a result, changes in the geographic source of Company profits or losses between periods can, in certain instances, have varying impacts on the Company's effective tax rate during a particular period.

The Company maintains valuation allowances when it is more likely than not that all or a portion of a deferred tax asset will not be realized.

Changes in valuation allowances from period to period are included in the tax provision in the period of change.

In determining whether a valuation allowance is required, the Company considers such factors as prior earnings history, expected future earnings, carry-back and carry-forward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset.

Due to recent operating losses in the U.S., the Company has evaluated the realizability of U.S.

net deferred tax assets.

The evaluation concluded that the U.S.

deferred tax assets are realizable.

The Company will continue to monitor the need for a valuation allowance on its U.S.

deferred tax assets.

The impact of the Company’s operations in jurisdictions where a valuation allowance is assessed is removed from the overall effective tax rate methodology and recorded directly based on year to date results for the year for which no tax expense or benefit can be recognized.

The significant tax jurisdictions that have a valuation allowance for the periods ended June 28, 2024 and June 30, 2023 were:

June 28, 2024 June 30, 2023

The significant tax jurisdictions that have a valuation allowance for the periods ended December 27, 2024 and December 29, 2023 were:

December 27, 2024 December 29, 2023

Indonesia Indonesia

4 unchanged sentences

In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized benefits as a component of income tax expense.

JOHNSON OUTDOORS INC.

7 INVENTORIES

2 unchanged sentences

2024 September 27,

2023 June 30,

2024 December 29,

Raw materials $ 103,447 $ 103,780 $ 120,695

1 unchanged sentence

$ 201,606 $ 209,788 $ 267,321

The Company’s inventory levels have been significantly impacted over recent periods in connection with swings in demand for the Company’s products and supply chain availability of certain materials and components, especially as a result of the recent COVID-19 pandemic.

See below under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional discussion on the impact of recent fluctuations in the Company’s net sales, including changes in demand for the Company’s products, on the Company’s inventory balances.

The changes in goodwill during the nine months ended June 28, 2024 and June 30, 2023 were as follows:

June 28, 2024 June 30, 2023

JOHNSON OUTDOORS INC.

The changes in goodwill during the three months ended December 27, 2024 and December 29, 2023 were as follows:

December 27, 2024 December 29, 2023

Balance at beginning of period $ — $ 11,172

Acquisitions 10,451 —

Amount attributable to movements in foreign currency rates — 17

Balance at end of period $ 10,451 $ 11,189

The goodwill at December 27, 2024 relates to the acquisition of Endless Summer Technologies Proprietary, Ltd.

See Note 18 below for additional information on the acquisition.

The Company evaluates the carrying value of goodwill for a reporting unit on an annual basis or more frequently when events and circumstances warrant such an evaluation.

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The Company provides warranties on certain of its products as they are sold.

The following table summarizes the Company’s warranty activity for the nine months ended June 28, 2024 and June 30, 2023.

June 28, 2024 June 30, 2023

The following table summarizes the Company’s warranty activity for the three months ended December 27, 2024 and December 29, 2023.

December 27, 2024 December 29, 2023

Balance at beginning of period $ 10,211 $ 11,741

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Although litigation is subject to many uncertainties and the ultimate exposure with respect to these matters cannot be ascertained, management does not believe the final outcome of any pending litigation will have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.

JOHNSON OUTDOORS INC.

11 INDEBTEDNESS

The Company had no debt outstanding at June 28, 2024, September 29, 2023, or June 30, 2023.

The Company had no debt outstanding at December 27, 2024, September 27, 2024, or December 29, 2023.

The Company and certain of its subsidiaries have entered into an unsecured credit facility with PNC Bank National Association and Associated Bank, N.A.

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This credit facility consists of a $ 75 million Revolving Credit Facility among the Company, certain of the Company’s subsidiaries, PNC Bank National Association, as lender and as administrative agent, and the other lender named therein (as amended, the “Credit Agreement” or “Revolver”).

The Revolver provides for borrowing of up to an aggregate principal amount not to exceed $ 75,000 with a $ 50,000 accordion feature that gives the Company the option to increase the maximum financing availability (i.e., an aggregate borrowing amount of $ 125,000 ) subject to the conditions of the Credit Agreement and subject to the approval of the lenders.

On July 15, 2021, the Company entered into a First Amendment to this credit facility that extended its expiration date from November 15, 2022, to July 15, 2026.

Other key provisions of the credit facility remained as outlined herein and the description herein is qualified in its entirety by the terms and conditions of the original Debt Agreement (a copy of which was filed as Exhibit 99.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on November 20, 2017) and the Amendment, (a copy of which was filed as Exhibit 10.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on July 16, 2021).

For the first three quarters of fiscal 2023, the interest rate on the Revolver was based on LIBOR plus an applicable margin.

Beginning in the fourth quarter of fiscal 2023, upon adoption of Topic 848, the interest rate is based on the Secured Overnight Financing Rate ("SOFR") plus an applicable margin.

The Revolver provides for borrowing of up to an aggregate principal amount not to exceed $ 75,000 with a $ 50,000 accordion feature that gives the Company the option to request an increase of the maximum financing availability (i.e., an aggregate borrowing amount of $ 125,000 ) subject to the conditions of the Credit Agreement and subject to the approval of the lenders.

On July 15, 2021, the Company entered into a First

JOHNSON OUTDOORS INC.

Amendment to this credit facility that extended its expiration date from November 15, 2022, to July 15, 2026.

On January 29, 2025, the Company entered into a Second Amendment to this credit facility that reduced the Revolver to $ 50,000 (but maintained the accordion feature) and modified the terms of the Credit Agreement as disclosed below for the period from the amendment date until the earlier of (1) the Company’s compliance with both a 3.00 x maximum leverage ratio and a 3.50 x minimum interest coverage ratio for the trailing twelve month period or (2) delivery of the Company’s fiscal 2025 financial statements and compliance certificate (the “Second Amendment Period”):

• suspension of application of the maximum leverage and minimum interest coverage ratios during the Second Amendment Period;

• the Company and its subsidiaries must maintain a $ 50,000 minimum cash balance;

• acquisition, dividends, repurchases and distributions permitted, provided the Company and its subsidiaries maintain a $ 50,000 minimum cash balance;

• monthly financial reporting if the facility availability is less than or equal to 95 %;

• the granting of a security interest in the Company’s personal property assets if the facility availability is less than or equal to 95 %.

Other key provisions of the credit facility remained as outlined herein and the description herein is qualified in its entirety by the terms and conditions of the original Credit Agreement (a copy of which was filed as Exhibit 99.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on November 20, 2017), the First Amendment, (a copy of which was filed as Exhibit 10.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on July 16, 2021), and the aforementioned Second Amendment (a copy of which is filed with this Report as Exhibit 10.1).

The interest rate is based on the Secured Overnight Financing Rate ("SOFR") plus an applicable margin.

The applicable margin ranges from 1.00 % to 1.75 % and is dependent on the Company’s leverage ratio for the trailing twelve month period.

The interest rates on the Revolver at both June 28, 2024 and June 30, 2023 were approximately 6.5 % and 6.2 %, respectively.

The Credit Agreement restricts the Company's ability to incur additional debt, includes maximum leverage ratio and minimum interest coverage ratio covenants and is unsecured.

The interest rates on the Revolver at both December 27, 2024 and December 29, 2023 were approximately 5.5 % and 6.5 %, respectively.

During the Second Amendment Period, the interest rate on borrowings under the Revolver will equal SOFR plus a 1.75 % applicable margin.

The Credit Agreement restricts the Company's ability to incur additional debt, includes maximum leverage ratio and minimum interest coverage ratio covenants and is unsecured, except as noted above during the Second Amendment Period.

Other Borrowings

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of June 28, 2024 or June 30, 2023.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $ 67 and $ 78 as of June 28, 2024 and June 30, 2023, respectively.

12 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The following disclosures describe the Company’s objectives in using derivative instruments, the business purpose or context for using derivative instruments, and how the Company believes the use of derivative instruments helps achieve the stated objectives.

In addition, the following disclosures describe the effects of the Company’s use of derivative instruments and hedging activities on its financial statements.

Foreign Exchange Risk

The Company has significant foreign operations, for which the functional currencies are denominated primarily in euros, Swiss francs, Hong Kong dollars and Canadian dollars.

As the values of the currencies of the foreign countries in which the Company has operations increase or decrease relative to the U.S.

dollar, the sales, expenses, profits, losses, assets and liabilities of the Company’s foreign operations, as reported in the Company’s consolidated financial statements, increase or decrease, accordingly.

Approximately 13 % of the Company’s revenues for the nine month period ended June 28, 2024 were denominated in currencies other than the U.S.

Approximately 5 % were denominated in euros, approximately 6 % were denominated in Canadian dollars and approximately 2 % were denominated in Hong Kong dollars, with the remaining revenues denominated in various other foreign currencies.

Changes in foreign currency exchange rates can cause the Company to experience unexpected financial losses or cash flow needs.

The Company may mitigate a portion of the fluctuations in certain foreign currencies through the use of foreign currency forward contracts.

Foreign currency forward contracts enable the Company to lock in the foreign currency exchange rate to be paid or received for a fixed amount of currency at a specified date in the future.

The Company may use such foreign currency forward contracts to mitigate the risk associated with changes in foreign currency exchange

JOHNSON OUTDOORS INC.

rates on financial instruments and known commitments, including commitments for inventory purchases, denominated in foreign currencies.

As of June 28, 2024 and June 30, 2023, the Company held no foreign currency forward contracts.

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of December 27, 2024 or December 29, 2023.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $ 67 and $ 67 as of December 27, 2024 and December 29, 2023, respectively.

12 FAIR VALUE MEASUREMENTS

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These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances.

The carrying amounts of accounts receivable and accounts payable approximated their fair values at June 28, 2024, September 29, 2023 and June 30, 2023 due to the short term maturities of these instruments.

JOHNSON OUTDOORS INC.

The carrying amounts of accounts receivable, accounts payable and accrued expenses approximated their fair values at December 27, 2024, September 27, 2024 and December 29, 2023 due to the short term maturities of these instruments.

See Note 13 for discussion of fair value of cash and cash equivalents.

When indicators of impairment are present, the Company may be required to value certain long-lived assets such as property, plant, and equipment, and other intangibles at their fair value.

During the second quarter of fiscal 2024, the Company determined that indicators of potential impairment of long-lived assets were present in the Watercraft segment, and performed an analysis of future undiscounted cash flows, which exceeded carrying value of the asset group.

Therefore, it was determined there was no impairment.

Valuation Techniques

5 unchanged sentences

Changes in the liability are recorded in "Administrative management, finance and information systems" expense in the accompanying Condensed Consolidated Statements of Operations.

The following table summarizes the Company’s financial assets measured at fair value as of June 28, 2024:

Marketable Securities

Marketable securities are classified as available-for-sale, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.

The following table summarizes the Company’s financial assets measured at fair value as of December 27, 2024:

Level 1 Level 2 Level 3 Total

Rabbi trust assets $ 28,665 $ — $ — $ 28,665

Marketable securities — 6,347 — 6,347

Total $ 28,665 $ 6,347 $ — $ 35,012

The following table summarizes the Company’s financial assets measured at fair value as of September 27, 2024:

1 unchanged sentence

Rabbi trust assets $ 29,059 $ — $ — $ 29,059

JOHNSON OUTDOORS INC.

The following table summarizes the Company’s financial assets measured at fair value as of June 30, 2023:

Marketable securities — 16,541 — 16,541

Total $ 29,059 $ 16,541 $ — $ 45,600

The following table summarizes the Company’s financial assets measured at fair value as of December 29, 2023:

Level 1 Level 2 Level 3 Total

Rabbi trust assets $ 25,818 $ — $ — $ 25,818

The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and nine month periods ended June 28, 2024 and June 30, 2023 was:

Three Months Ended Nine months ended

Location of income recognized in Statement of Operations June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Rabbi trust assets Other income, net $ 403 $ 1,273 $ 5,175 $ 3,881

There were no assets or liabilities measured at fair value on a non-recurring basis in periods subsequent to their initial recognition for either of the nine month periods ended June 28, 2024 or June 30, 2023.

Marketable securities — 33,762 — 33,762

Total $ 25,818 $ 33,762 $ — $ 59,580

The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three month periods ended December 27, 2024 and December 29, 2023 was:

JOHNSON OUTDOORS INC.

Three Months Ended

Location of income recognized in Statement of Operations December 27, 2024 December 29, 2023

Rabbi trust assets Other (expense) income, net $ ( 1,488 ) $ 2,672

There were no assets or liabilities measured at fair value on a non-recurring basis in periods subsequent to their initial recognition for either of the three month periods ended December 27, 2024 or December 29, 2023.

13 CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

3 unchanged sentences

The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at estimated fair value, with unrealized gains and losses, net of tax, reported as a separate component of accumulated other comprehensive income in the Condensed Consolidated Statements of Shareholders' Equity.

At June 28, 2024, cost for marketable securities was determined using the specific identification method.

At December 27, 2024, cost for marketable securities was determined using the specific identification method.

A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the period presented is shown in the following table.

All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.

The following table summarizes the Company’s marketable securities measured at fair value as of June 28, 2024:

The following table summarizes the Company’s marketable securities measured at fair value as of December 27, 2024:

Amortized Cost Fair Value Gross unrealized gains Gross unrealized losses

3 unchanged sentences

The following table summarizes the Company’s marketable securities measured at fair value as of September 27, 2024:

JOHNSON OUTDOORS INC.

Amortized Cost Fair Value Gross unrealized gains Gross unrealized losses

2 unchanged sentences

Total $ 16,518 $ 16,541 $ 23 $ —

The following table summarizes the Company’s marketable securities measured at fair value as of June 30, 2023:

The following table summarizes the Company’s marketable securities measured at fair value as of December 29, 2023:

JOHNSON OUTDOORS INC.

Amortized Cost Fair Value Gross unrealized gains Gross unrealized losses

2 unchanged sentences

Total $ 33,788 $ 33,762 $ 6 $ 32

Proceeds from the maturities of available for sale securities were $ 19,650 and $ 0 for the nine month periods ended June 28, 2024 and June 30, 2023, respectively.

During the third quarter of fiscal 2024, $ 2,220 of investments were purchased with proceeds from maturities.

There were no other sales or purchases of available-for-sale securities for the nine month periods ended June 28, 2024 or June 30, 2023.

Proceeds from the maturities of available for sale securities were $ 9,764 and $ 7,500 for the three month periods ended December 27, 2024 and December 29, 2023, respectively.

There were no sales or purchases of available-for-sale securities for the three month periods ended December 27, 2024 or December 29, 2023.

No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods.

The future contractual maturities of the marketable securities held at June 28, 2024 are as follows:

The future contractual maturities of the marketable securities held at December 27, 2024 are as follows:

$ 6,347 within one year, classified as Short-Term Investments on the Condensed Consolidated Balance Sheets, and $ 0 greater than one year, but less than five years, classified as Investments on the Condensed Consolidated Balance Sheets.

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Recently issued accounting pronouncements

In November 2024, the Financial Account Standards Board (FASB), issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40).

ASU 2024-03 is intended to improve disclosures and provide more detailed information about a public entity’s expenses, specifically amounts related to purchases of inventory, employee compensation, depreciation, intangible asset amortization, and selling expenses, along with qualitative descriptions of certain other types of expenses.

This guidance in this ASU is effective in fiscal 2028, and interim periods in fiscal 2029, with early adoption permitted.

The Company is currently reviewing this ASU and its potential impact on its financial statements and disclosures.

In March 2024, the United States Securities and Exchange Commission (SEC) issued Final Rulemaking Release No.

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The Company is currently evaluating the potential impact of this release on its financial statements and disclosures.

In December 2023, the Financial Account Standards Board (FASB), issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740):

In December 2023, the FASB, issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

1 unchanged sentence

The amendments in this ASU are effective for the Company in fiscal 2026 on a prospective basis, with early adoption permitted.

The Company is currently evaluating the potential impact of this guidance on its disclosures.

The Company is currently evaluating the potential impact of this guidance on its financial statements and disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

1 unchanged sentence

ASU 2023-07 is intended to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses.

The amendments in this ASU are effective in fiscal 2025, on a retrospective basis, with early adoption permitted.

The amendments in this ASU are effective in fiscal 2025, and interim periods in fiscal 2026, on a retrospective basis, with early adoption permitted.

The Company is currently evaluating the potential impact of this guidance on its financial statements and disclosures.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements:

Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.

This ASU covers a variety of codification topics, and the effective date for each amendment will be the date on which the SEC‘s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited.

The Company is currently evaluating the potential impact of this guidance on its disclosures.

JOHNSON OUTDOORS INC.

Recently adopted accounting pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848).

ASU 2020-04 is intended to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued.

Subsequently in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848, which delayed the effective date of Topic 848 to December 31, 2024.

The Company adopted Topic 848 in the fourth fiscal quarter of 2023.

The adoption of this pronouncement did not have a material impact on its disclosures.

Revenue is recognized when obligations under the terms of a contract with our customer are satisfied;

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The amount of consideration received can vary, primarily because of customer incentive or rebate arrangements.

The Company estimates variable consideration based on the expected value of total consideration to which customers are likely to be entitled based on historical experience and projected market expectations.

JOHNSON OUTDOORS INC.

Company estimates variable consideration based on the expected value of total consideration to which customers are likely to be entitled based on historical experience and projected market expectations.

Included in the estimate is an assessment as to whether any variable consideration is constrained.

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The Company provides customers the right to return eligible products under certain circumstances.

At June 28, 2024, the right to returns asset was $ 1,195 and the accrued returns liability was $ 2,981 .

At June 30, 2023, the right to returns asset was $ 892 and the accrued returns liability was $ 2,263 .

At December 27, 2024, the right to returns asset was $ 1,384 and the accrued returns liability was $ 3,679 .

At December 29, 2023, the right to returns asset was $ 1,108 and the accrued returns liability was $ 2,723 .

The Company also offers assurance-type warranties relating to its products sold to end customers that continue to be accounted for under ASC 460 Guarantees.

The Company generally accounts for shipping and handling activities as a fulfillment activity, consistent with the timing of revenue recognition;

The Company accounts for shipping and handling activities as a fulfillment activity, consistent with the timing of revenue recognition;

that is, when a customer takes control of the transferred goods.

2 unchanged sentences

The Company has a wide variety of seasonal, outdoor recreation products used primarily for fishing from a boat, diving, paddling, hiking and camping, that are sold to a variety of customers in multiple end markets.

Nonetheless, the revenue recognition policies are similar among all the various products sold by the Company.

The revenue recognition policies are similar among all the various products sold by the Company.

See Note 16 for required disclosures of disaggregated revenue.

2 unchanged sentences

Operations are conducted in the United States and various foreign countries, primarily in Europe, Canada and the Pacific Basin.

JOHNSON OUTDOORS INC.

The Company has historically reported "Camping" and "Watercraft Recreation" segments separately.

As of December 27, 2024, the Company combined these two segments into one segment, "Camping & Watercraft Recreation", consistent with the manner in which its chief operating decision maker ("CODM") assesses performance and makes resource allocations.

The operating segment change was for financial reporting purposes only and did not impact or result in changes to operations of the business segments, nor did it impact the Company's consolidated financial statements, but it did impact our previous segment footnote disclosure and the table below, including the corresponding items of segment information in prior year.

Net sales and operating profit include both sales to customers, as reported in the Company’s accompanying Condensed Consolidated Statements of Operations, and interunit transfers, which are priced to recover cost plus an appropriate profit margin.

Total assets represent assets that are used in the Company’s operations in each business segment at the end of the periods presented.

JOHNSON OUTDOORS INC.

A summary of the Company’s operations by business segment is presented below:

Three Months Ended Nine Months Ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 September 29, 2023

Unaffiliated customers $ 130,415 $ 137,161 $ 379,242 $ 429,991

Interunit transfers 122 299 395 851

Three Months Ended

December 27, 2024 December 29, 2023 September 27, 2024

Unaffiliated customers $ 82,433 $ 110,361

Interunit transfers 39 131

Watercraft Recreation:

Camping & Watercraft Recreation:

Unaffiliated customers 9,443 10,683

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Fishing $ ( 8,261 ) $ 11,529

Camping 1,474 2,039 3,541 4,863

Watercraft Recreation 557 1,483 ( 2,007 ) 1,637

Camping & Watercraft Recreation:

( 646 ) ( 1,720 )

Diving ( 908 ) ( 578 )

3 unchanged sentences

Fishing $ 341,990 $ 407,992 $ 325,882

Camping 48,217 61,896 53,003

Watercraft Recreation 29,604 35,294 26,953

Camping & Watercraft Recreation:

69,383 75,074 69,516

Diving 90,543 83,334 77,465

2 unchanged sentences

Other Segment Information

During the three and nine month periods ended June 28, 2024, two customers of the Company's Fishing, Camping and Watercraft Recreation segments each accounted for more than 10% of the Company's consolidated revenues, which amounted to combined net sales of approximately $ 41,273 and $ 150,166 , respectively.

During the three and nine month periods ended June 30, 2023, combined net sales to one customer of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $ 26,040 and $ 83,948 , respectively, of the Company's consolidated revenues.

JOHNSON OUTDOORS INC.

During the second quarter of fiscal 2023, the Company sold the Military and Commercial Tent product lines of its Camping segment to a third party in an asset sale.

The sale did not include the Eureka!

brand name or the Eureka!

consumer/recreational Camping business line.

Subsequently, during the fourth quarter of fiscal 2023, the Company developed and approved plans to fully exit the Eureka!

brand of the Camping segment, which includes liquidating all remaining consumer inventory of Eureka!

branded products and winding down operations.

The Company incurred expenses of approximately $ 4,800 in the fourth quarter of fiscal 2023 related to the wind down of the Eureka!

branded business.

Other costs incurred during fiscal 2024 will be expensed as incurred.

During the three month periods ended December 27, 2024 and December 29, 2023, two customers of the Company's Fishing and Camping & Watercraft Recreation segments each accounted for more than 10% of the Company's consolidated revenues, which amounted to combined net sales of approximately $ 32,875 and $ 54,147 , respectively, of the Company's consolidated revenues.

During the first quarter of fiscal 2024, the Fishing segment of the Company sold a building, which resulted in a gain of approximately $ 1,900 , which was recorded in Other income, net in the accompanying Condensed Consolidated Statements of Operations.

17 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the nine months ended June 28, 2024 were as follows:

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the three months ended December 27, 2024 were as follows:

JOHNSON OUTDOORS INC.

Adjustment Unrealized gain (loss) on available-for sale securities Unamortized

5 unchanged sentences

Balance at September 27, 2024 $ 6,056 $ 17 $ ( 109 ) $ 5,964

Other comprehensive income before reclassifications 3,059 138 — 3,197

Amounts reclassified from accumulated other comprehensive income — — 10 10

Tax effects — ( 36 ) ( 3 ) ( 39 )

Balance at December 29, 2023 $ 6,640 $ ( 19 ) $ ( 130 ) $ 6,491

Other comprehensive loss before reclassifications ( 4,915 ) ( 1 ) — ( 4,916 )

1 unchanged sentence

Tax effects — — ( 2 ) ( 2 )

Balance at March 29, 2024 $ 4,261 $ ( 37 ) $ ( 122 ) $ 4,102

Other comprehensive loss before reclassifications ( 439 ) 20 — ( 419 )

Amounts reclassified from accumulated other comprehensive income — — 9 9

Tax effects — (6) ( 3 ) ( 9 )

Balance at June 28, 2024 $ 3,822 $ (23) $ ( 116 ) $ 3,683

The changes in AOCI by component, net of tax, for the nine months ended June 30, 2023 were as follows:

JOHNSON OUTDOORS INC.

Adjustment Unamortized

Balance at December 27, 2024 $ 1,141 $ 16 $ ( 100 ) $ 1,057

The changes in AOCI by component, net of tax, for the three months ended December 29, 2023 were as follows:

Adjustment Unrealized gain (loss) on available-for sale securities Unamortized

Loss on Defined

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Balance at December 29, 2023 $ 6,640 $ ( 19 ) $ ( 130 ) $ 6,491

Other comprehensive income before reclassifications 507 — 507

Amounts reclassified from accumulated other comprehensive income — 11 11

Tax effects — ( 3 ) ( 3 )

Balance at March 31, 2023 $ 4,235 $ ( 155 ) $ 4,080

Other comprehensive income before reclassifications 892 — 892

Amounts reclassified from accumulated other comprehensive income — 12 12

Tax effects — ( 3 ) ( 3 )

Balance at June 30, 2023 $ 5,127 $ ( 146 ) $ 4,981

The reclassifications out of AOCI for the three and nine months ended June 28, 2024 and June 30, 2023 were as follows:

Three Months Ended Nine Months Ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Statement of Operations

The reclassifications out of AOCI for the three months ended December 27, 2024 and December 29, 2023 were as follows:

Three Months Ended

December 27, 2024 December 29, 2023 Statement of Operations

Unamortized loss on defined benefit pension plans:

2 unchanged sentences

Total reclassifications for the period $ 9 $ 7

18 ACQUISITIONS

On October 25, 2024, the Company acquired all the outstanding common stock of Endless Summer Technologies Proprietary, Ltd ("EST") and related patents and other assets used in EST's business and operations in a purchase transaction with EST's sole shareholder (the "Seller").

EST, based in Durban, South Africa, has been a long term supplier of products to the Company and it specializes in the design, development and manufacturing of scuba equipment through unique application of existing, new and emerging technologies.

The EST acquisition is included in the Company's Diving segment, and is expected to provide new innovative products, unlock synergies and enhance operating efficiencies for the Diving segment.

The approximately $ 12,180 acquisition cost was funded with existing cash.

Approximately $ 1,650 of the purchase price was paid into segregated escrow accounts which were set aside to fund (1) any potential downward purchase price adjustment tied to cash, debt and net working capital levels as of the closing or (2) potential indemnity claims that may be made by the Company against the Seller in connection with the inaccuracy of certain representations and warranties made by the Seller or related to the breach or nonperformance of certain other actions, agreements or conditions related to the acquisition, for a period of 24 months from the acquisition date.

The Company cannot estimate the probability or likelihood of bringing such an indemnity claim against the Seller or any related costs at this time.

The remaining escrow balance, if any, net of any indemnity claim then pending, will be released to the Seller once the 24 month period has lapsed.

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The Company is currently in the process of determining the fair value of the assets acquired and the liabilities assumed in this acquisition and anticipates completing the valuation of intangibles and other assets, including any final cash, debt, net working capital adjustments and the related tax effects, within this fiscal year.

The goodwill is expected to be tax deductible in the United States over 15 years.

The following table summarizes the provisional fair values of the assets acquired and liabilities assumed, and the resulting goodwill acquired at the date of acquisition:

Recognized amounts of identifiable assets acquired and liabilities assumed

Accounts receivable $ 245

Inventories 2,261

Other current assets 72

Property, plant and equipment 502

Identifiable intangible assets 1,439

Less, accounts payable and accruals ( 1,044 )

Less, other current liabilities ( 636 )

Less, long term liabilities ( 1,110 )

Total identifiable net assets 1,729

Goodwill 10,451

Net assets acquired $ 12,180

Pro forma financial information has not been presented because such amounts are not material to the unaudited condensed consolidated financial statements.

Transaction costs incurred for the acquisition to date were approximately $ 610 , of which approximately $ 110 was recognized during the three months ended December 27, 2024, which are included in Administrative management, finance and information systems expenses in the accompanying Condensed Consolidated Statements of Operations.

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 1. Financial Statements