Hello, everyone. And welcome to the Johnson Outdoors Second Quarter 2016 Earnings Conference Call. Today’s call will be held by Helen Johnson-Leipold, Johnson Outdoors’ Chairman and Chief Executive Officer. Also on the call today is David Johnson, Vice President and Chief Financial Officer. Prior to the question-and-answer session, all participants will be placed in a listen-only mode. After the prepared remarks, the question-and-answer session will begin. [Operator Instructions] This call is being recorded. Your participation implies consent to our recording of this call, if you do not agree to these terms, simply drop-off the line at this time. I would now like to turn the call over to Patricia Penman from Johnson Outdoors. Please go ahead, Ms. Penman.

Thank you, Andrew. Good afternoon, everyone and thank you for joining us for our discussion of Johnson Outdoors’ results for the 2016’s fiscal second quarter. If you need a copy of our earnings release that is available on the Johnson Outdoors’ Web site at www.johnsonoutdoors.com under Investor Relations. Before I turn the call over to Helen, I need to remind you that this conference call may contain forward-looking statements. These statements are made on the basis of our views and assumptions at this time and are not guarantees of future performance. Actual events may differ materially from those statements due to a number of factors, many of which are beyond Johnson Outdoors’ control. These risks and uncertainties include those listed in today’s press release and our filings with the Securities and Exchange Commission. If you have additional questions following the call, please contact either Dave Johnson or me. It is now my pleasure to turn the call over to Helen Johnson-Leipold.

Good morning. I’ll begin with an overview of results for the second quarter and first six months then discuss new product performance this year and close with comments on the future. Dave will review key financials and then we'll take your questions. During the first six months of the year, we are ramping up in the initial selling period for the primary retail selling season for our warm weather outdoor recreation product. It was great this quarter behind double digit growth in sales and as anticipated sales evened out a bit in the March quarter with net sales ending about 1% ahead of last year's quarter. On a year-to-date basis net sales were up 7.6% year-over-year at $219.5 million, so top line performance is quite good. Bottom line performance is even better with operating profit of 98% compared with last year's second quarter. And year-to-date operating profit increased even more significantly. Higher gross margins and reduced operating expense drove the profit improvement. Last year operating expenses reflect higher non-reoccurring legal cost primarily related to our side scan sonar patent infringement losses against garments. Last November the international trade commission, the ITC affirmed that some garments sonar products infringe one of our patents and issued an order barring import sale or distribution of those. Late yesterday was announced that the settlement agreement has been reached resolving the litigation which includes the licensing of three side scan sonar patents to garment. This agreement will bring closer to related legal matters pending before the ITC and in the US federal circuit court and district court. As noted in the joint announcement terms of the agreement are confidential. Our intellectual property is an invaluable asset providing us critical advantage in an increasingly competitive and rapidly changing marketplace. Innovation is our lifeblood and is what…

Thank you, Helen. Good morning everyone. As Helen mentioned we are pleased with the growth on operating profit and earnings both for the quarter and the first half of the year. Increased volume, gross margin expansion and lower expense all contribute to that improvement. Helen spoke to the primary reason for this year's reduced operating expenses and I will cover the fact just behind this year's improved margins. Specifically gross margin for the quarter was 41% a 2 point increase over the last year's quarter. On a year-to-date basis, gross margin was 40.2% which was 1.4 point increase over the first six months of last year. Importantly margin gains were reported in every unit during the second quarter. On the year-to-date basis sales are up more than 7%, so we have had a strong sell in with a very favorable trade response to new products which resulted in a better product mix and improved absorption on the higher volume this year. Gross margins also benefited from improved commodity cost and price increases which helped offset the negative impact of foreign currency in Canada and Europe. Let me also mention that inventory has increased. Given how early we are in the season and the great response we have had to new products, we are expecting those levels to moderate throughout the remainder of the year and bring working capital up as prior year. The balance sheet is strong and we have a healthy growing cash position that enables us to continue to invest in opportunities to expand and grow our fishing, camping, hiking, diving, and watercraft recreation businesses. We remain confident in our belief implants create long term value and consistently pay dividend to our shareholders. Now I will turn the call back over to the operator for the Q&A period. Operator?

Thank you again for joining us, we look forward to speaking with you again soon. Have a great day.

Ladies and gentlemen, thank you again for you participation in today's conference. This now concludes the program and you may all disconnect yourself from the lines at this time. Everyone have a great day.