Company: JOUT
Filing Date: 2025-02-03
Form Type: 10-Q
Source: 0001140361-25-002853
Chunk: 37

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-02-03
Form: 10-Q
Item: Item 8
Chunk 37
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 believe we are currently involved in any claim or action the ultimate disposition of which would have a material adverse effect on our financial statements.

Item 1A.  Risk Factors

There have been no material changes to the risk factors disclosed in our Form 10-K for the fiscal year ending September 27, 2024 as filed with the Securities and Exchange Commission on December 11, 2024.  

Item 5.  Other Information

(a)     Matters Required to be Disclosed on a Form 8-K.

Item 1.01 of Form 8-K:  Effective as of January 29, 2025, the Company and certain of its subsidiaries entered into a Second Amendment to Amended and Restated Credit Agreement dated as of January 29, 2025 among the Company, certain of the Company’s subsidiaries named therein, PNC Bank, National Association, as lender and as administrative agent, PNC Capital Markets LLC, as sole lead arranger and bookrunner, and the other lender named therein (the “Second Amendment”). The Second Amendment amends the Company’s Amended and Restated Credit Agreement dated as of November 15, 2017, as previously amended, among the Company, certain of the Company’s subsidiaries named therein, PNC Bank, National Association, as lender and as administrative agent, PNC Capital Markets LLC, as sole lead arranger and bookrunner, and the other lender named therein (as amended, the “Revolving Credit Agreement” or “Revolver” or the “Credit Agreement”). The Second Amendment contains the following changes to the Revolver which are only effective until the earlier of (1) the Company’s compliance with both a 3.00x maximum leverage ratio and a 3.50x 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%; and 

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

During the Second Amendment Period