Johnson Outdoors
Annual Report 2018

Plain-text annual report

2018 ANNUAL REPORT FOR ADVENTURERS BY ADVENTURERS —Sam Johnson, Founder FOUNDED IN THE SPIRIT OF ADVENTURE. PROPELLED BY A PASSION FOR THE OUTDOORS. INSPIRED TO GO ABOVE AND BEYOND. We always have been and always will be a company for adventurers, by adventurers, dedicated to creating the best outdoor experience possible. “Our love for outdoor recreation creates a unique bond with the outdoor consumer, and a unique advantage for Johnson Outdoors.” —Helen P. Johnson-Leipold Chairman & Chief Executive Officer JOUT-NASDAQ | 2018 Annual Report | 1 FISHING DIVING WHO WE ARE JOHNSON OUTDOORS IS A FAMILY OF CORE BRANDS building on the power of the whole to deliver a superior consumer experience and create awe-inspiring outdoor adventures. Through innovative, top- quality products, we earn industry awards, customer loyalty, and the trust of consumers who share our passion. 2 | JOUT-NASDAQ | 2018 Annual Report CAMPING COMPANY SNAPSHOT JOUT-NASDAQ $544.3 M NET SALES WATERCRAFT 16 PRODUCT CATEGORIES 1,200 EMPLOYEES 21 FACILITIES WORLDWIDE 80 COUNTRIES AS OF 9.30.18 JOUT-NASDAQ | 2018 Annual Report | 3 LETTER FROM THE CHAIRMAN CONNECTING WITH CONSUMERS TO COMPETE AT THE CUTTING EDGE AT OUR CORE, JOHNSON OUTDOORS IS A FAMILY OF ADVENTURERS, PEOPLE WITH A PASSION TO FISH, CAMP, HIKE, SCUBA DIVE AND PADDLE. Our love for outdoor recreation is a unique bond we share with the outdoor consumer. We know what it takes to make a great outdoor experience, and Job #1 every day for everyone here is to stay on the cutting edge of design and technology to deliver just that. This gives Johnson Outdoors a clear competitive edge: authentic, differentiated innovation with the staying power to keep our brands at the forefront of the market. Consumers can see what sets our products apart. They trust our brands and products to promote the best possible outdoor experience. They know every product is created by people who share their mindset. Deep, rich consumer insights help us identify the best new product ideas, those with maximum potential for success in a complex, highly competitive market. Great ideas, in turn, require great follow-through, and we continue to refine our innovation process. As products move into production, we emphasize efficient infrastructure and global systems built on best practices. Go-to-market strategies demand equal innovation. We rely on insights and the experience gained across our portfolio of market- winning brands to be in complete sync with our consumers. Over the past year we’ve furthered our ability to connect with outdoor recreation enthusiasts in new ways, increasing our digital sophistication to initiate compelling conversations when and where our consumers prefer. Outstanding financial performance demonstrates the power of our long-term plan. Over the last three years, it has provided essential structure as we build the foundation for future success. This plan defined new, exciting ways to move forward in a rapidly changing marketplace where “new” isn’t “new” for very long. 4 | JOUT-NASDAQ | 2018 Annual Report Ms. Johnson-Leipold, an avid paddler, at a family vacation on Lake Owen. Our goal is to make the most of the passion we share with consumers to consistently deliver must-have innovation across our entire brand portfolio. We’re filling the new product pipeline and launching products strategically to create the biggest impact. We understand how to give each product a chance to build. At the same time, we celebrate—and learn from—the breakthroughs that exceed expectations. Intimate knowledge of our consumer also fuels our technological advances. Our know-how empowers us to use technology in new ways at every touchpoint, through a well-defined prototyping process. Future efforts will also focus on targeted sales and marketing programs designed to fully leverage our company-wide digital transformation, harnessing the power of data analytics to enhance profitable growth for all channels long-term. We look back on this year’s record-setting results with pride and are confident in our ability to move steadily forward. Looking ahead, we will continue to progress against our three key strategic priorities—richer consumer insights, enhanced innovation processes and digital sophistication. These are the cornerstones of a foundation for success. Great brands, great products, great people —supported by focused planning and follow- through. Only Johnson Outdoors can deliver this combination. We know fishing, diving, paddling, camping and hiking. And we know what it will take this year, and the next, and the next to achieve continued sustainable growth and long-term profitability. We feel good about the path forward and invite you to join us on the adventure. Helen P. Johnson-Leipold Chairman & Chief Executive Officer JOUT-NASDAQ | 2018 Annual Report | 5 ADVENTURE Fishing 6 | JOUT-NASDAQ | 2018 Annual Report GREG Product Management FISHING EVERY SUMMER MY FATHER AND I TAKE A TRIP UP INTO NORTHERN CANADA to walleye fish. Using one of our new Minn Kota trolling motors, we were trolling around some islands—and I hooked into a 10-plus pound walleye. It’s fun to have it all come together: you work in the business, and then you get to put that into play, too. I HELP DEVELOP WHAT’S NEXT…fill the funnel with ideas that work their way through the system to become products. Anytime you’re engineering something, there are blocks in the development process. One thing that impresses me is how everybody is constantly willing to put all hands on deck to get beyond that problem, whatever it is. COMING TO WORK ISN’T SOMETHING I HAVE TO DO; IT’S WHAT I GET TO DO—and a large part of that is the people. Everybody here treats each other like family. There’s nothing we can’t say to each other to make sure that at the end of the day, we win. JOUT-NASDAQ | 2018 Annual Report | 7 T E C H N I C A L L Y IRRESISTIBLE Breakthrough innovation has anglers hooked on Minn Kota® trolling motors, shallow water anchors and battery chargers. Next-generation technology flows from our knowledge of fishing and our ability to get close to the consumer— for a powerhouse brand that continues to exceed expectations. INTEGRATED IMAGING As of 2018, anglers can select a Minn Kota Ulterra™, Terrova®, Ultrex™ or Fortrex® trolling motor with built-in Humminbird® MEGA Down Imaging sonar. The built-in unit is protected from wear and tear and delivers sharp images of what’s below the bow, for better fish-finding. 8 | JOUT-NASDAQ | 2018 Annual Report MINN KOTA® ULTREX™ WITH BUILT-IN DOWN IMAGING The award-winning patented Ultrex is the world’s most technologically advanced electric cable-steer motor, the first and only to offer all our breakthrough steering and navigational features to pedal-control anglers with the tap of a foot. BEST BOATING ACCESSORY JOUT-NASDAQ | 2018 Annual Report | 9 ADVENTURE Fishing 10 | JOUT-NASDAQ | 2018 Annual Report CRAIG Operations FISHING I FISH AS OFTEN AS I CAN—which any fisherman will tell you is not as often as I want! And I see the value of the Johnson Outdoors innovation model first-hand. Strong linkage to the consumer is what our business needs to succeed. OUR FACILITY IS ALL ABOUT CHANGE. It’s about continuous improvement, about being incrementally better every day—and people here are passionate, driven to do their best. My role is to help put together strategies in conjunction with our top-level objectives. Then I provide support, resources and guidance to keep everyone here in sync, to meet those objectives. TEAMWORK AND CLARITY. That’s been the key as we’ve collaborated so well here on so many projects. When we look back on a big project, we can say we did it. We did it together. JOUT-NASDAQ | 2018 Annual Report | 11 FISH-FINDING FIRST Pioneering MEGA Imaging™ technology took fish finding into new territory, delivering up to 3X the output of standard Side Imaging®—and Humminbird keeps making it better. We’ve expanded depth and side coverage and further enhanced imagery to deliver the clearest, sharpest sonar image ever. 12 | JOUT-NASDAQ | 2018 Annual Report B I G -T I M E VISIONARY Game-changing Humminbird® fish finders are key to The One-Boat Network™, featuring intelligent integration with Minn Kota® trolling motors and anchors. Anglers can distinguish fish from structure, see which way they’re facing and even determine the species—then enjoy effortless boat positioning for a more productive outing. ALL-SEEING, ALL IN ONE With the biggest screen ever, the state-of-the-art SOLIX® Series offers intuitive access to every Humminbird technological innovation for imaging, viewing, charting, mapping, networking, connecting—and catching more fish. JOUT-NASDAQ | 2018 Annual Report | 13 RODRIGO Product Testing DIVING DIVING IS MY PASSION. AND BECAUSE I’M A DIVER, I KNOW WHAT DIVERS WANT, how they use the equipment. I use that knowledge in my job to make sure we always give divers a great experience. When I spend my time outdoors, I’m actually touching and using what we’ve made. MY WORK BEGINS AFTER THE PRODUCT IS MADE. We test each and every unit to make sure they meet the highest standards for performance and quality before we allow them to be shipped out around the world. I think about where each one is going and how divers trust SCUBAPRO to be the best, so only the best will do. I’VE GONE DIVING IN MANY PLACES, FROM THE COAST OF SESTRI TO MAROSO TO THE RED SEA, but my favorite had to be the Maldives. The serenity, the tranquility, the beauty was amazing, and the vast number of fish and sharks made the whole experience unforgettable. 14 | JOUT-NASDAQ | 2018 Annual Report ADVENTURE Diving JOUT-NASDAQ | 2018 Annual Report | 15 COMPACT COMFORT The new S620Ti is crafted to improve breathing performance by 37 percent. It incorporates all the best features of the renowned S600 in a smaller, lighter design, delivering effortless airflow under all dive conditions. 16 | JOUT-NASDAQ | 2018 Annual Report R E L I A B L Y EXCEPTIONAL SCUBAPRO® wins the diving world’s respect at every level, with a full range of core life-support products, diving gear and accessories. We set the gold standard for performance that lets consumers focus on the adventure, dive after dive after dive. LIVING THE DREAM The Hydros™ Pro BCD represents an incredible breakthrough in dive comfort and convenience. Moldable Monoprene®, modular construction and endless customization options make the Hydros Pro perfect for local diving or global travel. JOUT-NASDAQ | 2018 Annual Report | 17 ADVENTURE Camping 18 | JOUT-NASDAQ | 2018 Annual Report SARAH Marketing CAMPING THE FIRST TIME I USED A JETBOIL, MY HUSBAND AND I WERE NEWLY DATING and a friend invited us to do a week-long portaging trip to the Boundary Waters, in northern Minnesota. It was canoeing and packing up all your stuff and getting in and out of the water…and at one point one of us fell in…but that trip really connected us. It showed we could work as a team. HERE AT JOHNSON OUTDOORS I’M PART OF A TIGHT-KNIT TEAM. I do consumer research to understand the needs and wants of backpackers and campers. Then I get to work with great engineers to bring products to life. For instance, we created a scale to measure your gas canister, so you don’t have to be afraid of running out of gas on the trail. It’s fun to see it on store shelves, and on social media—people saying it’s the best tool any backpacker could have. That motivates me—that we get to help so many consumers do what they love. JOUT-NASDAQ | 2018 Annual Report | 19 BRINGING THE HEAT Jetboil® outdoor cooking systems lead the industry thanks to obsessive engineering and outstanding innovation. The result: lightweight, compact, super-dependable stoves for use from basecamp to summit… entrancing first-time adventurer and seasoned pros alike. COUNTING OUNCES AND SECONDS Tried, true and triumphant: The next-generation Flash cuts a full minute off boil time to be the fastest Jetboil ever, harnessing every ounce of innovative FluxRing® technology to stay at the industry forefront. 20 | JOUT-NASDAQ | 2018 Annual Report A D V E N T U R E R S WELCOME Simple setup and complete comfort are the hallmarks of Eureka!® tents, camping furniture, camp stoves and sleep systems. We combine 120 years of know-how with insight-driven innovation…for tents and gear that make it easy for all campers to make memories. GROUP + GEAR, RIGHT HERE The massively spacious new Eureka! Boondocker Hotel sleeps six and stows all the toys. Its gear garage doubles as a comfortable vestibule. A gull-wing side panel protects campers from sun or rain… making the Boondocker the heart of camp and the home for extended adventure. JOUT-NASDAQ | 2018 Annual Report | 21 ADDIE Product Development WATERCRAFT THE MALIBU PEDAL WAS MY FIRST KAYAK PROJECT, making sure the layout and the aesthetics represented the Ocean Kayak brand—very fun-in-the-sun. I’d give the engineers sketches, and they’d figure out: Will this work? Will it affect the boat’s performance? You’re constantly refining and checking back to be sure you’re meeting the goals of the consumer. I GET INVOLVED IN THE ENTIRE PRODUCT DEVELOPMENT PROCESS, STARTING WITH CONSUMER RESEARCH. We look at what people are saying about current boats, and where we see potential opportunities and improvements. That goes into ideation and sketches, and from those sketches we’ll develop 3D models and test prototypes. It could be something as small as a handle, all the way up to an actual boat. People here really push for you to use the product. It makes a big difference when you experience the product the way a consumer would. My partner and I did the Kenduskeag Stream race together—and we took the more unconventional route. WE DIDN’T DO IT IN A CANOE, WE DID IT IN A MALIBU! 22 | JOUT-NASDAQ | 2018 Annual Report ADVENTURE Watercraft JOUT-NASDAQ | 2018 Annual Report | 23 POWERFULLY NIMBLE Since 1898, Old Town® has originated boat after cutting-edge boat, leading in the market and the hearts of paddlers, pedalers and anglers. We jump ahead of changing times and trends with our unmatched consumer insight and engineering artistry…passionate pioneers in sharing the thrill of being on the water. STABILITY, MEET PERFORMANCE Old Town’s new Topwater™ Series, with the ultra-stable DoubleU™ hull, provides stand-up anglers with a comfortable platform and thoughtful tackle and rod management. Compact paddle and pedal versions make for easy car-top transport, pleasing both novice and veteran kayakers. 24 | JOUT-NASDAQ | 2018 Annual Report T H I N K I N G FRESH Fitness fans, fun-seekers and families are always on top with Ocean Kayak®. Our sit-on-top kayaks and stand-up paddle boards combine comfort and freedom, staying in sync with consumers through wave after wave of innovation. SIT. PEDAL. ZIP! The Ocean Kayak Malibu Pedal’s highly efficient PDL Drive delivers remarkable speed with quick-turn agility. The adjustable bench seat heightens comfort, and a kid’s jumpseat helps families enjoy a lunchtime jaunt or long-term adventure. JOUT-NASDAQ | 2018 Annual Report | 25 DAN Digital Marketing WATERCRAFT RECREATION I GIVE LIFE TO BRANDS ON OUR DIGITAL ENVIRONMENTS— websites, social media, email. We’re working with exciting new technologies on the digital front, which pairs nicely with the technologies on the product side. It’s rewarding to interact one-on-one with our consumers and deliver a custom shopping experience. I’VE BEEN CONNECTED FOR A LONG TIME TO THE JOHNSON OUTDOORS BRANDS, specifically Old Town, using their products growing up. Everybody knows our brands. People are excited to tell you about their boat—how it came into their hands, how they fished or paddled with their grandfather, how the boat enriched their lives. WE HAVE CANOES AND KAYAKS THAT EMPLOYEES CAN CHECK OUT ANYTIME. I love to paddle after work or on my lunch break. Or maybe someone from R&D says, “We’re testing out a new design, and we want to get some water time.” We’ll go paddle around on the Penobscot River and give feedback. You’re working, you’re helping the company create new products…but at the same time, you’re out there rejuvenating. And when you get back to your job, you have a clear state of mind. 26 | JOUT-NASDAQ | 2018 Annual Report DIGITAL TRANSFORMATION JOUT-NASDAQ | 2018 Annual Report | 27 C L E A R L Y CONNECTED Ongoing digital transformation reaches across all marketing and sales channels. Our renewed website creates a unified platform for our family of brands, leading consumers on the journey from online to outdoors. And digital strategies go beyond the website to further embrace social media platforms, interactive marketing and e-commerce tactics. We have the tools in place to heighten success for our brands in a rapidly changing market. 28 | JOUT-NASDAQ | 2018 Annual Report WINNER: DIGITAL MARKETING EXCELLENCE Our completed rollout of connected yet customizable websites for all our brands earned Johnson Outdoors a 2018 Acquia Engage Award. The award recognizes digital marketing sophistication that paves the way for brand integration, cross-merchandising, and streamlined promotion and analysis of consumer engagement. JOUT-NASDAQ | 2018 Annual Report | 29 SUSANNE Marketing DIVING I AM PASSIONATE ABOUT DIVING IN GENERAL. Whatever problems may be on your mind, they disappear instantly the moment you’re underwater. For me, it’s like flying, soaring underwater and having the freedom to go anywhere. One of my most memorable dives was off the coast of France. As we descended, shadows began to appear and grow beneath us until suddenly, almost as if out of nowhere, we came upon a sunken submarine from WW II. It still gives me goosebumps just thinking about the incredible thrill I felt that day. I HOPE TO INSPIRE MORE PEOPLE TO HAVE AWESOME EXPERIENCES UNDERWATER. That’s why I enjoy being part of the team that creates and manages all our digital social media platforms, such as Facebook, Instagram and YouTube, as well as promotions, to bring our dealers, divers and us across northern and eastern Europe closer together, connected uniquely and deeply by our shared passion for diving. It was always my dream to work for SCUBAPRO. EVERY DAY, LIKE EVERY DIVE, IS A WONDERFUL ADVENTURE. 30 | JOUT-NASDAQ | 2018 Annual Report PASSION FOR PERFORMANCE JOUT-NASDAQ | 2018 Annual Report | 31 MANAGEMENT PERSPECTIVE INNOVATION DRIVES RECORD GROWTH FOR FY2018 All-Time High Revenue and Earnings For Second Consecutive Year Strong marketplace demand for new products in our core fishing and diving brands propelled a second year of record results for Johnson Outdoors. Total company net sales grew 11 percent to $544.3 million, versus fiscal 2017 net sales of $490.6 million. Operating profit soared to a record $63.0 million, a 38 percent increase over last year’s $45.6 million, due to significantly higher sales volume and margin improvement year-over-year. Net income for the fiscal year increased 16 percent to $40.7 million, or $4.05 per diluted share, versus $35.2 million, or $3.51 per diluted share, last fiscal year. FY2018 Financial Highlights • New product success • Sustained momentum in Fishing and Diving • Enhanced digital sophistication • Strong cash flow and a debt-free balance sheet • Increased quarterly dividend to shareholders 32 | JOUT-NASDAQ | 2018 Annual Report Revolutionary, consumer-focused innovation is the unquestionable driver of this growth. Exceptional new product performance fueled double-digit revenue growth in Minn Kota® and Humminbird® brands, while momentum for award-winning innovation in life-support categories gave a 3 percent boost to SCUBAPRO® brand sales. The balance sheet is strong, and our healthy cash position enables us to continue to invest in growth opportunities while continuing to pay dividends to our investors. We have made much progress in transforming Johnson Outdoors for future success in a changing marketplace. More work and more investment are needed to ensure continued sustainable growth and profitability. Helen P. Johnson-Leipold Chairman & Chief Executive Officer David W. Johnson Vice President & Chief Financial Officer Operating Results* Net sales Gross profit Operating profit Net income Diluted earnings per common share Diluted average common shares outstanding Capitalization Total debt Shareholders’ equity Total debt to total capital * $ Thousands, except per-share amount 2016 $433,727 176,462 22,894 13,501 $1.34 9,855 2016 $7,389 207,496 3% 2017 $ 490,565 210,940 45,591 35,157 $3.51 9,920 2017 — 243,004 0% 2018 $ 544,268 241,860 63,021 40,669 $4.05 9,996 2018 — 279,197 0% JOUT-NASDAQ | 2018 Annual Report | 33 JOUT-NASDAQ 2018 Business Performance FISHING $391.1 M DIVING $78.9 M FY2018 NET SALES FY2018 NET SALES Bigger, better new product success in our flagship fishing business drove record financial results for the second consecutive year, driving strong growth across every channel. The power of consumer-driven innovation is clear: • The revolutionary Minn Kota Ultrex®, the first electric cable-steer motor and a standout with foot-pedal control, again exceeded expectations. • Marketplace demand for Humminbird large-screen fish finders continued to be strong. We saw double-digit growth for our game-changing MEGA Side Imaging™ and Down Imaging™ sonar. • Technical upgrades across the Minn Kota electric steer line sparked excitement and growth in this category. • Technological advancements also lifted legacy innovations like the iPilot and iPilot Link accessories. Innovative new products boosted topline sales, while infrastructure reduction enhanced bottom-line performance. Maximizing efficiency and profitability requires further simplification and increased emphasis on digital initiatives to drive more dive consumers to our elite dealer network. • Enthusiasm for the new S620Ti regulator and ongoing demand for the Galileo G2™ dive computer strengthened SCUBAPRO share in core life support products. • Continued demand for the award- winning body-sculpting and quick-dry Hydros™ Pro enhanced SCUBAPRO brand equity. 34 | JOUT-NASDAQ | 2018 Annual Report Outstanding Brands Minn Kota® | Fishing Motors Minn Kota® | Shallow Water Anchors Humminbird® | Fishfinders Humminbird® | Digital Maps Eureka!® | Family Tents Jetboil® | Personal Cooking Systems Old Town® | Canoes & Kayaks Old Town® | Fishing Craft Ocean Kayak® | Kayaks Scubapro® | Diving Gear Scubapro® | Regulators & Computers WATERCRAFT RECREATION CAMPING & HIKING $36.3 M $37.8 M FY2018 NET SALES FY2018 NET SALES Challenging conditions in the kayak market negatively affected revenue this year. Our focus is on ensuring we are positioned to win when the overall market stabilizes. We believe we have the right long-term plan, given our great brands and superior innovation: • The new Old Town Topwater™ series brings anglers the stability and performance of a large fishing kayak in a more compact design that’s easier to transport and navigate. • The Ocean Kayak Malibu Pedal continues to grow in popularity. Like the Topwater series, it uses our award- winning PDL™ Drive to make fun and fitness on the water more enjoyable. Growth in Eureka and Jetboil brands nearly offset the loss of sales from the divestiture of the non-core Silva brand. Following two challenging market years marked by retailer bankruptcies and consolidation, we’re gaining traction with new products: • The next-generation Jetboil Flash personal cooking system beat expectations, driving an uptick in specialty chain and international sales. • The new Eureka! Boondocker Hotel 6 Person Tent sports inventive features like a gull-wing side panel and a massive vestibule that doubles as a gear garage. JOUT-NASDAQ | 2018 Annual Report | 35 EXECUTIVE TEAM PROVEN LEADERSHIP Our executive team gives us an edge with their experience and capabilities. 36 | JOUT-NASDAQ | 2018 Annual Report Photo by John Sibilski Photography Karen James Vice President, Global Operations David W. Johnson Vice President and CFO Patricia Penman Vice President, Marketing Services and Global Communication Khalaf M. Khalaf Senior Managing Director, Legal Affairs and Corporate Secretary John Moon Vice President and Chief Information Officer Helen P. Johnson-Leipold Chairman and CEO Sara Vidian Vice President, Human Resources Bill Kelly Group Vice President, Camping and Watercraft Judy Douglas Group Vice President, Fishing Joe Stella Group Vice President, Global Diving JOUT-NASDAQ | 2018 Annual Report | 37 BOARD OF DIRECTORS GOVERNANCE Our board of directors offers vital business acumen and experience. Helen P. Johnson-Leipold, Johnson Outdoors chairman and CEO, leads with skills in strategic planning, global operations, strategic marketing and branding, drawing on deep knowledge of the company and its industry. She served as a marketing executive with SC Johnson and Foote, Cone & Belding. Ms. Johnson-Leipold is chairman and director of Johnson Bank and Johnson Financial Group, Inc.; director of SC Johnson; and chairman, The Johnson Foundation at Wingspread. Thomas F. Pyle, Jr., Johnson Outdoors vice chairman, brings extensive managerial, transactional, operational and financial expertise to the role. Currently chairman, The Pyle Group, and non-executive chairman of Uniek, Inc., Mr. Pyle is former owner, chairman and CEO of Rayovac Corporation. He serves as director of Sub-Zero Wolf, Inc.; advisor to the University of Wisconsin Chancellor; and trustee of Wisconsin Alumni Research Foundation and other leading research institutions. Kathy Button Bell is vice president and chief marketing officer of Emerson Electric Co., a $25 billion manufacturing conglomerate. In 2016, she was appointed to Emerson’s Office of the Chief Executive. A renowned branding strategist with expertise in global marketing, digital strategy and market research, she has served in lead marketing roles with recreational giants Converse, Inc. and Wilson Sporting Goods. Ms. Button Bell is a director of Sally Beauty Holdings and the American Marketing Association, and past chairwoman, Business Marketing Association. John M. Fahey, Jr., non-executive chairman of the board of directors of Time, Inc., from June 28, 2017 to April 2018, and retired chairman and CEO of the National Geographic Society, is knowledgeable in key Johnson Outdoors markets and outdoor leisure, travel and recreational industries. He brings skills in leadership, strategic planning, international business and enterprise risk management. Mr. Fahey is also a director of Lindblad Expeditions Holdings and a regent of the Smithsonian Institution. 38 | JOUT-NASDAQ | 2018 Annual Report Edward F. Lang, senior vice president and CFO of the NFL’s New Orleans Saints and the NBA’s New Orleans Pelicans, provides insight in leisure industries and consumer products as well as broad experience in corporate finance, operations and enterprise risk management. He previously served with the NHL’s Nashville Predators for 13 years, most recently as president of business operations and alternate governor. Terry E. London, past CEO and interim president of Pier 1 Imports, chairman of the Pier 1 Imports, Inc. board of directors, and former chairman of London Broadcasting Company LP and LBK Entertainment Holdings, provides insight on a broad range of corporate management and financial matters. Mr. London has been involved with the outdoor industry for more than 20 years. William “Bill” D. Perez, founder of FamGen consultants for family- owned businesses, brings extensive experience in corporate transactions, international business, operations and manufacturing, finance, strategy and brand marketing. He was president and CEO for the Wm. Wrigley Jr. Company; Nike, Inc; and S.C. Johnson, where he spent 34 years. He is on the boards of Northwestern Memorial Hospital, Johnson & Johnson, and Whirlpool Corporation, a Presidential Counselor at Cornell University and a Director’s Circle member for The Chicago Council on Global Affairs. Richard “Casey” Sheahan, CEO of Simms Fishing Products LLC, brings proven knowledge, expertise and leadership in management, marketing and sustainable business practices in the outdoor industry. Former president of Keen Footwear and former president and CEO of Patagonia, Inc. and Lost Arrow Corporation, Mr. Sheahan also held key executive positions at Kelty, Inc., Wolverine Worldwide, Inc., Merrell Outdoor Division and Nike, Inc. A lifelong outdoor enthusiast, Mr. Sheahan has served on the board of the Outdoor Industry Association. Edward Stevens, founder and CEO of Preciate, Inc., a relational wealth company using blockchain and digital currency technologies, and strategic board advisor and previous CEO for KIBO Software, Inc., brings extensive experience in digital strategy, ecommerce, and omni-channel distribution, along with his international business strategy skills. Prior to his role at KIBO Software, Inc., he was founder and CEO of Shopatron. JOUT-NASDAQ | 2018 Annual Report | 39 Certain matters discussed in this report are “forward-looking statements” intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Please see “Forward-Looking Statements” in the 2018 Form 10-K for a discussion of uncertainties and risks associated with these statements. Corporate Secretary Johnson Outdoors Inc. • 555 Main Street Racine, WI USA • 53403-1015 For more information, contact: Johnson Outdoors Inc. Patricia Penman Vice President, Marketing Services and Global Communication 262-631-6600 • patricia.penman@johnsonoutdoors.com To contact the Board of Directors directly, visit: http://investor.johnsonoutdoors.com/contactBoard.cfm www.JohnsonOutdoors.com © 2018 Johnson Outdoors Inc. Publisher: Patricia Penman Vice President, Marketing Services and Global Communication Johnson Outdoors Inc. Design: Lynne and Gil Leigh, Modern Media www.modernmediausa.com Editor: Mary Jo Thome Creative Consultant: Cynthia Georgeson Production Coordinator: Amy Helvick 40 | JOUT-NASDAQ | 2018 Annual Report J O H N S O N O U T D O O R S . C O M 

Continue reading text version or see original annual report in PDF format above