Hello, everyone and welcome to the Johnson Outdoors First Quarter 2017 Earnings Conference Call. Helen Johnson-Leipold, Johnson Outdoors’ Chairman and Chief Executive Officer will lead today’s call. Also on the call 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. I would now like to turn the call over to Patricia Penman from Johnson Outdoors. Please go ahead, Ms. Penman.

Thank you, Ashley. Good morning and welcome to our discussion of Johnson Outdoors’ fiscal 2017 first quarter results. If you need a copy of today’s news release, it is available on our website at www.johnsonoutdoors.com under Investor Relations. I also need to remind you that this conference may contain forward-looking statements. These statements are made on the basis of our current views and assumptions and are not guarantees of future performance. Actual events may differ materially from those statements due to a number of factors, many beyond Johnson Outdoors’ control. These risks and uncertainties include those listed in our press releases and filings with the Securities and Exchange Commission. If you have additional questions following the call, please contact me either Dave Johnson or me. It is now my pleasure to turn the call over to Helen Johnson-Leipold.

Good morning. Thank you for joining us. I’ll begin with comments on performance this quarter and share our perspective on our businesses for the year ahead. Dave will review key financials. Then, we'll take your questions. During our fiscal first quarter, the warm weather outdoor recreational industry is in ramp up mode preparing for the primary selling season during the second and third quarter. Sales are often low and we historically report an operating loss for the period, [indiscernible] improved this first quarter, sales were just shy of $94 million, a 10% increase versus the prior year period and we posted operating profit of $0.5 million versus an operating loss of $0.9 million in the last first quarter and net earnings of $0.40 per diluted share this quarter compared to very favorably to the last year's first quarter of $0.05 per diluted share. Overall, a great start to the fiscal year. Innovation made all the difference. Growing excitement around this year's new product lineup generated very strong preseason orders. Fishing remains our primary growth engine. We told you last quarter that [expected] [ph] orders for Minn Kota would shift into the first quarter and that's what happened. Sales increased in every Minn Kota product segment. While the new Ultrex and Ulterra trolling motors are giving us a nice boost, we're also seeing growth in legacy wireless technology innovations like the i-Pilot and the i-Pilot LINK. Humminbird is also off to a good start, largely due to the continued popularity of the Helix series fishfinder. Late last year, we unveiled a quantum leap in sonar technology with MEGA Down Imaging and MEGA Side Imaging. MEGA is a major advancement in fishfinder display, providing the greatest clarity in underwater imaging ever seen. MEGA will be available in a brand new ultra big…

Thank you, Helen and good morning everyone. As Helen mentioned year-over-year net earnings improved significantly this period. Net income of $4.1 million in the first quarter was favorable to the prior year by $4.6 million. Net income during the quarter reflected the impact of approximately $4.2 million of foreign tax credits generated by the repatriation of about $22 million in cash from overseas. We determine now is the right time to bring the cash back due to favorable foreign exchange combined with our ability to utilize these tax credits. Importantly, we anticipate a mid 20s effective tax rate for the full year as a result of the repatriation. We expect to use the cash to curtail debt and invest in targeted growth strategies and opportunities. Interest expense was up during the year, increasing about $296,000. This was due to early repayment of term loans totaling about $7.1 million which triggered a write-off of financing cost to the prepayment penalty. Working capital declined almost 7% in the quarter primarily due to lower inventory. We are in good shape heading into the season. Throughout the year we’ll be working hard to manage supply and demand efficiently, while ensuring best-in-class customer service. The balance sheet is in really good shape giving us the financial flexibility to invest in growing our business and continue to pay a dividend to our shareholders. Obviously it's too early to predict how the full-year will go, but we're very pleased to be off to such a strong start. Now I'll turn things back over to the operator for the Q&A session. Operator?

[Operator Instructions] Our first question comes from the line of George Kelly from Imperial Capital. Your line is open.

Couple questions for you, first with the fishing segment. Wondering since the quarter, what are you seeing, it seems like you had a very good sell-in in the December quarter, wondering what you're seeing so far as far as sell-through?

This is Dave and Helen, but this is sell-in and sell-in actually continues through January, so I think we really won't get a read on the consumer takeaway piece of that until more recent - current timeframe. So we can’t give you a read on that, but I think the fact that our sell-in is up and the retailers are excited about the new product is a very good sign.

Can you help at all with you know the quarter was obviously quite a bit better than last year in fishing, but it sounds like that's mostly the Minn Kota new steps. Should this year, are there big changes in Humminbird as well. Do you think both those segments will how you see it now should they both be better than last year?

The great thing is we have significant new product launches which I talked about which go certainly in Minn Kota and Humminbird brand has new innovation as well. And they are both doing well this first quarter, so we are you know we set a positive outlook for the season.

And then, just a couple more on the repatriation of cash. You mentioned that there is growth opportunities that you’ll utilize. Why was it a good time to do that? Can you kind of help it all with what the uses of that cash could be?

Well it's basically you know look we'll continue to invest in our strategy. We've got strategic plans in place. We’ll continue to look to utilize that cash appropriately and we still pay down the term loan in the first quarter. We'll continue to have - hopefully have the dividend going and then any other kind of growth opportunities that may be on the horizon.

I would assume, I mean continued there could be acquisitions or… I'm just - your business generates a fair amount of cash, so.

Yeah it does and we recognize the fact that we have that and it's great. It gives us flexibility to pursue all those opportunities. And the nice thing about bringing it back, it's given even more flexibility.

And then the last question just on the diving segment. Looks like the quarter showed some more stability there. Do you expect - can you help at all with kind of full year, is the new product that you talked about in that segment is that a big deal, should that drive growth. Can you help at all with your expectations there?

The new product launch is in the BC segment is significant and we have seen great excitement about it in the market. So, new products drive growth across all of our businesses. I think what we're dealing with is you've got some very challenging markets because of the economic situation. Europe continues to have challenges. But we've got five segments of product. We’ve got some work to do. I would say this is a great start, but it is one piece of the business. So I would say we are optimistic. But diving at this point in time is a challenging one and we are hoping obviously that we can keep this momentum going.

[Operator Instructions] I’m showing no further questions, I’d now like to turn the call back to Helen Johnson-Leipold for closing remarks.

Thanks again for joining us and I hope everybody has a great day.