MasterCraft Boat Holdings, Inc. Reports Fiscal 2024 Results
MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) reported financial results for fiscal 2024. Net sales for Q4 were $67.2 million, down 59.7% year-over-year, with a net loss of $8.1 million. Full-year net sales were $366.6 million, down 44.6%. The company faced challenges due to economic uncertainty and a competitive retail landscape. Key points include:
- Q4 Adjusted EBITDA: $0.8 million, down 97.4%
- Full-year net income: $8.7 million, or $0.51 per diluted share
- Full-year Adjusted EBITDA: $32.9 million, down 74.9%
- Cash and investments: $86.2 million
- Total debt: $49.3 million
MasterCraft plans to transfer rights to its Aviara brand. For fiscal 2025, the company projects net sales between $265-300 million and Adjusted EBITDA of $15-26 million.
MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) ha riportato i risultati finanziari per l'anno fiscale 2024. Le vendite nette per il quarto trimestre sono state di 67,2 milioni di dollari, in calo del 59,7% rispetto all'anno precedente, con una perdita netta di 8,1 milioni di dollari. Le vendite nette annuali sono state di 366,6 milioni di dollari, in calo del 44,6%. L'azienda ha affrontato sfide a causa dell'incertezza economica e di un panorama retail competitivo. I punti chiave includono:
- EBITDA rettificato Q4: 0,8 milioni di dollari, in calo del 97,4%
- Reddito netto annuale: 8,7 milioni di dollari, ovvero 0,51 dollari per azione diluita
- EBITDA rettificato annuale: 32,9 milioni di dollari, in calo del 74,9%
- Cash e investimenti: 86,2 milioni di dollari
- Debito totale: 49,3 milioni di dollari
MasterCraft prevede di trasferire i diritti del proprio marchio Aviara. Per l'anno fiscale 2025, l'azienda prevede vendite nette comprese tra 265 e 300 milioni di dollari e un EBITDA rettificato tra 15 e 26 milioni di dollari.
MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) informó los resultados financieros para el año fiscal 2024. Las ventas netas del cuarto trimestre fueron de 67,2 millones de dólares, una caída del 59,7% en comparación con el año anterior, con una pérdida neta de 8,1 millones de dólares. Las ventas netas anuales fueron de 366,6 millones de dólares, una disminución del 44,6%. La compañía enfrentó desafíos debido a la incertidumbre económica y un panorama minorista competitivo. Los puntos clave incluyen:
- EBITDA ajustado Q4: 0,8 millones de dólares, una disminución del 97,4%
- Ingreso neto anual: 8,7 millones de dólares, o 0,51 dólares por acción diluida
- EBITDA ajustado anual: 32,9 millones de dólares, una caída del 74,9%
- Efectivo e inversiones: 86,2 millones de dólares
- Deuda total: 49,3 millones de dólares
MasterCraft planea transferir los derechos de su marca Aviara. Para el año fiscal 2025, la compañía prevé ventas netas entre 265 y 300 millones de dólares y un EBITDA ajustado de 15 a 26 millones de dólares.
MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT)는 2024 회계연도 재무 결과를 보고했습니다. 넷 매출은 4분기에 6720만 달러로, 전년 대비 59.7% 감소했으며, 순손실은 810만 달러였습니다. 전체 연간 넷 매출은 3억 6660만 달러로, 44.6% 감소했습니다. 회사는 경제적 불확실성과 경쟁적인 소매 환경으로 인해 어려움에 직면했습니다. 주요 사항은 다음과 같습니다:
- 4분기 조정 EBITDA: 80만 달러, 97.4% 감소
- 연간 순이익: 870만 달러, 즉 희석주당 0.51달러
- 연간 조정 EBITDA: 3290만 달러, 74.9% 감소
- 현금 및 투자: 8620만 달러
- 총 부채: 4930만 달러
MasterCraft는 Aviara 브랜드에 대한 권리를 이전할 계획입니다. 2025 회계연도를 위해 회사는 2억6500만 달러에서 3억 달러 사이의 순 매출과 1500만 달러에서 2600만 달러 사이의 조정 EBITDA를 예상하고 있습니다.
MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) a présenté les résultats financiers pour l'exercice 2024. Les ventes nettes du quatrième trimestre s'élevaient à 67,2 millions de dollars, en baisse de 59,7 % par rapport à l'année précédente, avec une perte nette de 8,1 millions de dollars. Les ventes nettes sur l'ensemble de l'année ont atteint 366,6 millions de dollars, en baisse de 44,6 %. L'entreprise a été confrontée à des défis en raison de l'incertitude économique et d'un paysage de détail compétitif. Les points clés comprennent :
- EBITDA ajusté Q4 : 0,8 million de dollars, en baisse de 97,4 %
- Revenu net annuel : 8,7 millions de dollars, soit 0,51 dollar par action diluée
- EBITDA ajusté annuel : 32,9 millions de dollars, en baisse de 74,9 %
- Liquidités et investissements : 86,2 millions de dollars
- Dette totale : 49,3 millions de dollars
MasterCraft prévoit de transférer les droits de sa marque Aviara. Pour l'exercice 2025, l'entreprise prévoit des ventes nettes comprises entre 265 et 300 millions de dollars et un EBITDA ajusté entre 15 et 26 millions de dollars.
MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) hat die finanziellen Ergebnisse für das Haushaltsjahr 2024 veröffentlicht. Der Nettoumsatz im 4. Quartal lag bei 67,2 Millionen Dollar, was einem Rückgang von 59,7% im Jahresvergleich entspricht, mit einem Nettoverlust von 8,1 Millionen Dollar. Der Nettoumsatz für das gesamte Jahr betrug 366,6 Millionen Dollar, was einem Rückgang von 44,6% entspricht. Das Unternehmen sah sich aufgrund wirtschaftlicher Unsicherheiten und eines wettbewerbsintensiven Einzelhandelsumfelds Herausforderungen gegenüber. Wichtige Punkte sind:
- Adjustierte EBITDA Q4: 0,8 Millionen Dollar, ein Rückgang von 97,4%
- Jährlicher Nettogewinn: 8,7 Millionen Dollar oder 0,51 Dollar pro verwässerter Aktie
- Jährliches angepasstes EBITDA: 32,9 Millionen Dollar, ein Rückgang von 74,9%
- Bargeld und Investitionen: 86,2 Millionen Dollar
- Gesamtschulden: 49,3 Millionen Dollar
MasterCraft plant, die Rechte an seiner Marke Aviara zu übertragen. Für das Haushaltsjahr 2025 prognostiziert das Unternehmen Nettoumsätze zwischen 265 und 300 Millionen Dollar sowie ein angepasstes EBITDA zwischen 15 und 26 Millionen Dollar.
- Strong financial position with $86.2 million in cash and investments
- Disciplined approach to capital allocation and strategic initiatives
- Share repurchases of $16.3 million during the year
- Q4 net sales down 59.7% year-over-year to $67.2 million
- Full-year net sales decreased 44.6% to $366.6 million
- Q4 net loss of $8.1 million, compared to net income of $23.1 million in prior-year period
- Full-year Adjusted EBITDA down 74.9% to $32.9 million
- Non-cash impairment charges of $9.8 million related to Aviara segment
Insights
MasterCraft's Q4 and FY2024 results paint a challenging picture for the luxury boat manufacturer. Net sales plummeted
The destocking efforts and prioritization of dealer health are prudent long-term strategies, but they're taking a toll on short-term performance. The
The FY2025 outlook suggests continued headwinds, with projected revenues of
The luxury boat market is facing significant headwinds, as evidenced by MasterCraft's results. Elevated interest rates and economic uncertainty are dampening consumer demand for high-ticket discretionary purchases. The company's decision to transfer the Aviara brand suggests a strategic refocus on core operations amid challenging market conditions.
The competitive retail landscape mentioned by CEO Brad Nelson indicates that the industry-wide slowdown is forcing manufacturers to offer more incentives, pressuring margins. This trend could lead to industry consolidation if prolonged. The emphasis on dealer inventory health is crucial, as overleveraged dealers could pose significant risks to manufacturers in a downturn.
Looking ahead, the company's conservative outlook for FY2025 suggests that a quick recovery is unlikely. However, MasterCraft's focus on innovation and brand development could position it well for when market conditions improve. The luxury boat market tends to be cyclical and companies that maintain strong brand equity during downturns often emerge stronger when consumer confidence returns.
VONORE, Tenn., Aug. 29, 2024 (GLOBE NEWSWIRE) -- MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) today announced financial results for its fiscal 2024 fourth quarter and year ended June 30, 2024.
Subsequent to June 30, 2024, we agreed to transfer rights to our Aviara brand of luxury dayboats and related assets to a third party. The transaction is subject to customary closing conditions, and is expected to close in the first quarter of fiscal 2025. We intend to classify Aviara as discontinued operations beginning in the first quarter of fiscal 2025.
The overview, commentary, and results provided herein relate to our continuing operations.
Fourth Quarter Overview:
- Net sales for the fourth quarter were
$67.2 million , down59.7% from the prior-year period - Non-cash impairment charges of
$9.8 million related to our Aviara segment - Net loss from continuing operations was (
$8.1) million , or ($0.49) per diluted share - Diluted Adjusted Net Income (Loss) per share, a non-GAAP measure, was (
$0.04) , down from$1.37 in the prior-year period - Adjusted EBITDA, a non-GAAP measure, was
$0.8 million , down97.4% from the prior-year period - Share repurchases of
$4.5 million during the quarter
Full Year Overview:
- Net sales were
$366.6 million , down44.6% from the prior-year - Net income from continuing operations was
$8.7 million , or$0.51 per diluted share - Diluted Adjusted Net Income per share, a non-GAAP measure, was
$1.22 , down from$5.35 in the prior-year - Adjusted EBITDA, a non-GAAP measure, was
$32.9 million , down74.9% from the prior-year - Share repurchases of
$16.3 million during the year - Ended the year with cash and investments of
$86.2 million , and total debt of$49.3 million
Brad Nelson, Chief Executive Officer, commented, “MasterCraft delivered results ahead of our latest expectations as we navigated a challenging economic environment and a highly competitive retail landscape during the fourth quarter and fiscal year. We executed well against our strategic and operational priorities during the year as we destocked field inventory levels, advanced consumer-centric initiatives, and returned capital to shareholders, all while optimizing profitability and cash flow.”
Nelson continued, “Combined with economic and retail uncertainty, elevated interest rates and lingering competitor dealer disruptions have contributed to above optimal inventory levels and increased carrying costs for dealers. Our production plans prioritize dealer health, and we remain committed to partnering with our dealers as they stay healthy by judiciously selling through inventory.”
Nelson added, “Our strong financial position provides us with the flexibility to pursue our strategic initiatives, including investment in innovation, product and brand development. We will continue to exercise a disciplined approach to capital allocation. As we navigate this dynamic environment, our strong portfolio of brands positions us well to explore long-term growth opportunities while maintaining the flexibility to return capital to shareholders.”
Fourth Quarter Results
For the fourth quarter of fiscal 2024, MasterCraft Boat Holdings, Inc. reported consolidated net sales of
Gross margin percentage declined 1,360 basis points during the fourth quarter of fiscal 2024, when compared to the prior-year period. Lower margins were the result of lower cost absorption due to planned decreased unit volume and unfavorable model mix and options, partially offset by higher prices.
Operating expenses increased
Net loss from continuing operations was (
Adjusted Net loss was (
Adjusted EBITDA was
See “Non-GAAP Measures” below for a reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss), and Adjusted Net Income (Loss) per share, which we refer to collectively as the “Non-GAAP Measures”, to the most directly comparable financial measures presented in accordance with GAAP.
Fiscal 2024 Results
For fiscal 2024, MasterCraft Boat Holdings, Inc. reported consolidated net sales of
Gross margin percentage declined 730 basis points during fiscal 2024, when compared to the same prior-year period. Lower margins were the result of lower cost absorption due to planned decreased unit volume and higher dealer incentives, partially offset by higher prices.
Operating expenses increased
Net income from continuing operations was
Adjusted Net Income decreased to
Adjusted EBITDA was
See “Non-GAAP Measures” below for a reconciliation of the Non-GAAP measures to the most directly comparable financial measures presented in accordance with GAAP.
Outlook
Concluded Nelson, “Looking forward, although current market uncertainties have short-term implications for wholesale shipments, our destocking efforts are positive for dealer health and in the best long-term interest of our business. In fiscal 2025, we will continue to prioritize a healthy distribution network, and our production plan optimizes dealer inventory levels to position us well to capitalize on the next market upswing.”
The Company’s outlook is as follows:
- For full year fiscal 2025, we expect consolidated net sales to be between
$265 million and$300 million , with Adjusted EBITDA between$15 million and$26 million , and Adjusted Earnings per share of between$0.36 and$0.87 . Capital expenditures are projected to be approximately$12 million for the full year. - For fiscal first quarter 2025, consolidated net sales are expected to be approximately
$61 million , with Adjusted EBITDA of approximately$2 million , and Adjusted Earnings per share of approximately$0.04 .
Conference Call and Webcast Information
MasterCraft Boat Holdings, Inc. will host a live conference call and webcast to discuss fiscal fourth quarter and full year 2024 results today, August 29, 2024, at 8:30 a.m. EDT. Participants may access the conference call live via webcast on the investor section of the Company’s website, Investors.MasterCraft.com, by clicking on the webcast icon. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the conference call and webcast will be archived on the Company's website.
About MasterCraft Boat Holdings, Inc.
Headquartered in Vonore, Tenn., MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) is a leading innovator, designer, manufacturer and marketer of recreational powerboats through its three brands, MasterCraft, Crest, and Balise. For more information about MasterCraft Boat Holdings, and its three brands, visit: Investors.MasterCraft.com, www.MasterCraft.com, www.CrestPontoonBoats.com, and www.BalisePontoonBoats.com.
Forward-Looking Statements
This press release includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements can often be identified by such words and phrases as “believes,” “anticipates,” “expects,” “intends,” “estimates,” “may,” “will,” “should,” “continue” and similar expressions, comparable terminology or the negative thereof, and include statements in this press release concerning the resilience of our business model, our intention to drive value and accelerate growth, and our fiscal full year and first quarter financial outlook.
Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to: the potential effects of supply chain disruptions and production inefficiencies, general economic conditions, demand for our products, inflation, changes in consumer preferences, competition within our industry, our ability to maintain a reliable network of dealers, our ability to manage our manufacturing levels and our fixed cost base, the successful introduction of our new products, including our new Balise brand, the success of our strategic divestments, including Aviara, geopolitical conflicts, such as the conflict between Russia and Ukraine and the conflict in the Gaza Strip and general unrest in the Middle East, and financial institution disruptions. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023, filed with the Securities and Exchange Commission (the “SEC”) on August 30, 2023, and our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, filed with the SEC on May 8, 2024, could cause actual results to differ materially from those indicated by the forward-looking statements. The discussion of these risks is specifically incorporated by reference into this press release.
Any such forward-looking statements represent management's estimates as of the date of this press release. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. We undertake no obligation (and we expressly disclaim any obligation) to update or supplement any forward-looking statements that may become untrue or cause our views to change, whether because of new information, future events, changes in assumptions or otherwise. Comparison of results for current and prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
Use of Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures in this release. Reconciliations of the Non-GAAP measures used in this release to the most comparable GAAP measures for the respective periods can be found in tables immediately following the consolidated statements of operations. The Non-GAAP Measures have limitations as analytical tools and should not be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with GAAP.
| Results of Operations for the Three Months and Fiscal Year Ended June 30, 2024 | ||||||||||||||||
| MASTERCRAFT BOAT HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 67,182 | $ | 166,566 | $ | 366,588 | $ | 662,046 | ||||||||
| Cost of sales | 58,998 | 123,651 | 299,491 | 492,333 | ||||||||||||
| Gross profit | 8,184 | 42,915 | 67,097 | 169,713 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and marketing | 2,892 | 3,060 | 13,430 | 13,808 | ||||||||||||
| General and administrative | 6,950 | 10,160 | 34,396 | 37,034 | ||||||||||||
| Amortization of other intangible assets | 450 | 489 | 1,812 | 1,956 | ||||||||||||
| Impairments | 9,827 | — | 9,827 | — | ||||||||||||
| Total operating expenses | 20,119 | 13,709 | 59,465 | 52,798 | ||||||||||||
| Operating income (loss) | (11,935 | ) | 29,206 | 7,632 | 116,915 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (798 | ) | (756 | ) | (3,292 | ) | (2,679 | ) | ||||||||
| Interest income | 1,625 | 1,384 | 5,789 | 3,351 | ||||||||||||
| Income (loss) before income tax expense | (11,108 | ) | 29,834 | 10,129 | 117,587 | |||||||||||
| Income tax expense (benefit) | (3,001 | ) | 6,782 | 1,407 | 27,135 | |||||||||||
| Net income (loss) from continuing operations | (8,107 | ) | 23,052 | 8,722 | 90,452 | |||||||||||
| Benefit (loss) from discontinued operations, net of tax | 71 | (376 | ) | (922 | ) | (21,515 | ) | |||||||||
| Net income (loss) | $ | (8,036 | ) | $ | 22,676 | $ | 7,800 | $ | 68,937 | |||||||
| Net income (loss) per share | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | (0.49 | ) | $ | 1.33 | $ | 0.52 | $ | 5.13 | |||||||
| Discontinued operations | 0.01 | (0.02 | ) | (0.06 | ) | (1.22 | ) | |||||||||
| Net income (loss) | $ | (0.48 | ) | $ | 1.31 | $ | 0.46 | $ | 3.91 | |||||||
| Diluted | ||||||||||||||||
| Continuing operations | $ | (0.49 | ) | $ | 1.32 | $ | 0.51 | $ | 5.09 | |||||||
| Discontinued operations | 0.01 | (0.02 | ) | (0.05 | ) | (1.21 | ) | |||||||||
| Net income (loss) | $ | (0.48 | ) | $ | 1.30 | $ | 0.46 | $ | 3.88 | |||||||
| Weighted average shares used for computation of: | ||||||||||||||||
| Basic earnings per share | 16,710,544 | 17,299,562 | 16,930,348 | 17,618,797 | ||||||||||||
| Diluted earnings per share | 16,710,544 | 17,505,504 | 17,038,305 | 17,765,117 | ||||||||||||
| MASTERCRAFT BOAT HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars in thousands, except per share data) | ||||||||
| June 30, | June 30, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 7,394 | $ | 19,817 | ||||
| Held-to-maturity securities | 78,846 | 91,560 | ||||||
| Accounts receivable, net of allowances of | 15,382 | 15,741 | ||||||
| Income tax receivable | 499 | — | ||||||
| Inventories, net | 44,267 | 58,298 | ||||||
| Prepaid expenses and other current assets | 8,686 | 10,083 | ||||||
| Total current assets | 155,074 | 195,499 | ||||||
| Property, plant and equipment, net | 73,813 | 77,921 | ||||||
| Goodwill | 28,493 | 28,493 | ||||||
| Other intangible assets, net | 33,650 | 35,462 | ||||||
| Deferred income taxes | 18,584 | 12,428 | ||||||
| Deferred debt issuance costs, net | 272 | 304 | ||||||
| Other long-term assets | 8,098 | 3,869 | ||||||
| Total assets | $ | 317,984 | $ | 353,976 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 12,178 | $ | 20,391 | ||||
| Income tax payable | — | 5,272 | ||||||
| Accrued expenses and other current liabilities | 61,384 | 72,496 | ||||||
| Current portion of long-term debt, net of unamortized debt issuance costs | 4,374 | 4,381 | ||||||
| Total current liabilities | 77,936 | 102,540 | ||||||
| Long-term debt, net of unamortized debt issuance costs | 44,887 | 49,295 | ||||||
| Unrecognized tax positions | 8,549 | 7,350 | ||||||
| Operating lease liabilities | 2,733 | 2,702 | ||||||
| Total liabilities | 134,105 | 161,887 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY: | ||||||||
| Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 16,759,109 shares at June 30, 2024 and 17,312,850 shares at June 30, 2023 | 167 | 173 | ||||||
| Additional paid-in capital | 59,892 | 75,976 | ||||||
| Retained earnings | 123,620 | 115,820 | ||||||
| MasterCraft Boat Holdings, Inc. equity | 183,679 | 191,969 | ||||||
| Noncontrolling interest | 200 | 120 | ||||||
| Total equity | 183,879 | 192,089 | ||||||
| Total liabilities and equity | $ | 317,984 | $ | 353,976 | ||||
Supplemental Operating Data
The following table presents certain supplemental operating data for the periods indicated:
| Three Months Ended | For the Years Ended | |||||||||||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| Unit sales volume: | ||||||||||||||||||||||||||
| MasterCraft | 302 | 950 | (68.2 | ) | % | 1,755 | 3,407 | (48.5 | ) | % | ||||||||||||||||
| Pontoon(a) | 216 | 492 | (56.1 | ) | % | 1,241 | 2,836 | (56.2 | ) | % | ||||||||||||||||
| Aviara | 42 | 34 | 23.5 | % | 134 | 134 | — | % | ||||||||||||||||||
| Consolidated | 560 | 1,476 | (62.1 | ) | % | 3,130 | 6,377 | (50.9 | ) | % | ||||||||||||||||
| Net sales: | ||||||||||||||||||||||||||
| MasterCraft | $ | 44,417 | $ | 129,341 | (65.7 | ) | % | $ | 262,736 | $ | 468,656 | (43.9 | ) | % | ||||||||||||
| Pontoon(a) | 9,901 | 24,652 | (59.8 | ) | % | 59,615 | 141,247 | (57.8 | ) | % | ||||||||||||||||
| Aviara | 12,864 | 12,573 | 2.3 | % | 44,237 | 52,143 | (15.2 | ) | % | |||||||||||||||||
| Consolidated | $ | 67,182 | $ | 166,566 | (59.7 | ) | % | $ | 366,588 | $ | 662,046 | (44.6 | ) | % | ||||||||||||
| Net sales per unit: | ||||||||||||||||||||||||||
| MasterCraft | $ | 147 | $ | 136 | 8.1 | % | $ | 150 | $ | 138 | 8.7 | % | ||||||||||||||
| Pontoon(a) | 46 | 50 | (8.0 | ) | % | 48 | 50 | (4.0 | ) | % | ||||||||||||||||
| Aviara | 306 | 370 | (17.3 | ) | % | 330 | 389 | (15.2 | ) | % | ||||||||||||||||
| Consolidated | 120 | 113 | 6.2 | % | 117 | 104 | 12.5 | % | ||||||||||||||||||
| Gross margin | 12.2 | % | 25.8 | % | (1,360) bps | 18.3 | % | 25.6 | % | (730) bps | ||||||||||||||||
| (a) | During the fiscal fourth quarter of 2024, the Company changed the name of its “Crest” operating segment to “Pontoon.” The segment name change had no impact on the composition of the Company’s segments or on previously reported financial position, results of operations, cash flows or segment operating results. |
Non-GAAP Measures
EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin
We define EBITDA as net income (loss) from continuing operations, before interest, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations. For the periods presented herein, these adjustments include non-cash impairment charges, share-based compensation, CEO transition costs, and business development consulting costs. We define EBITDA margin and Adjusted EBITDA margin as EBITDA and Adjusted EBITDA, respectively, each expressed as a percentage of Net sales.
Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per share
We define Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per share as net income from continuing operations, adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense (benefit) on adjusted net income (loss) before income taxes at our estimated annual effective tax rate. For the periods presented herein, these adjustments include non-cash impairment charges, other intangible asset amortization, share-based compensation, CEO transition costs, and business development consulting costs.
The Non-GAAP Measures are not measures of net income or operating income as determined under GAAP. The Non-GAAP Measures are not measures of performance in accordance with GAAP and should not be considered as an alternative to net income (loss), net income (loss) per share, or operating cash flows determined in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of cash flow. We believe that the inclusion of the Non-GAAP Measures is appropriate to provide additional information to investors because securities analysts and investors use the Non-GAAP Measures to assess our operating performance across periods on a consistent basis and to evaluate the relative risk of an investment in our securities. We use Adjusted Net Income and Adjusted Net Income per share to facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results prepared in accordance with GAAP, provides a more complete understanding of factors and trends affecting our business than does GAAP measures alone. We believe Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per share assists our board of directors, management, investors, and other users of the financial statements in comparing our net income on a consistent basis from period to period because it removes certain non-cash items and other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense (benefit) on adjusted net income before income taxes at our estimated annual effective tax rate. The Non-GAAP Measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and the Non-GAAP Measures do not reflect any cash requirements for such replacements;
- The Non-GAAP Measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
- The Non-GAAP Measures do not reflect changes in, or cash requirements for, our working capital needs;
- Certain Non-GAAP Measures do not reflect our tax expense or any cash requirements to pay income taxes;
- Certain Non-GAAP Measures do not reflect interest expense, or the cash requirements necessary to service interest payments on our indebtedness; and
- The Non-GAAP Measures do not reflect the impact of earnings or charges resulting from matters we do not consider to be indicative of our core and/or ongoing operations, but may nonetheless have a material impact on our results of operations.
In addition, because not all companies use identical calculations, our presentation of the Non-GAAP Measures may not be comparable to similarly titled measures of other companies, including companies in our industry.
We do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include acquisition-related costs, litigation charges or settlements, impairment charges, and certain other unusual adjustments.
The following table presents a reconciliation of net income (loss) from continuing operations as determined in accordance with GAAP to EBITDA and Adjusted EBITDA, and net income from continuing operations margin to EBITDA margin and Adjusted EBITDA margin (each expressed as a percentage of net sales) for the periods indicated:
| (Dollars in thousands) | Three Months Ended | For the Years Ended | ||||||||||||||||||||||||||
| June 30, | % of Net | June 30, | % of Net | June 30, | % of Net | June 30, | % of Net | |||||||||||||||||||||
| 2024 | sales | 2023 | sales | 2024 | sales | 2023 | sales | |||||||||||||||||||||
| Net income (loss) from continuing operations | $ | (8,107 | ) | (12.1 | )% | $ | 23,052 | 13.8 | % | $ | 8,722 | 2.4 | % | $ | 90,452 | 13.7 | % | |||||||||||
| Income tax expense (benefit) | (3,001 | ) | 6,782 | 1,407 | 27,135 | |||||||||||||||||||||||
| Interest expense | 798 | 756 | 3,292 | 2,679 | ||||||||||||||||||||||||
| Interest income | (1,625 | ) | (1,384 | ) | (5,789 | ) | (3,351 | ) | ||||||||||||||||||||
| Depreciation and amortization | 2,856 | 2,736 | 11,182 | 10,569 | ||||||||||||||||||||||||
| EBITDA | (9,079 | ) | (13.5 | )% | 31,942 | 19.2 | % | 18,814 | 5.1 | % | 127,484 | 19.3 | % | |||||||||||||||
| Impairments(a) | 9,827 | — | 9,827 | — | ||||||||||||||||||||||||
| Share-based compensation(b) | 67 | 765 | 2,598 | 3,656 | ||||||||||||||||||||||||
| CEO transition costs(c) | 31 | — | 1,708 | — | ||||||||||||||||||||||||
| Business development consulting costs(d) | — | — | — | 312 | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 846 | 1.3 | % | $ | 32,707 | 19.6 | % | $ | 32,947 | 9.0 | % | $ | 131,452 | 19.9 | % | ||||||||||||
The following table sets forth a reconciliation of net income (loss) from continuing operations as determined in accordance with GAAP to Adjusted Net Income (loss) for the periods indicated:
| (Dollars in thousands, except per share data) | Three Months Ended | For the Years Ended | |||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) from continuing operations | $ | (8,107 | ) | $ | 23,052 | $ | 8,722 | $ | 90,452 | ||||||
| Income tax expense (benefit) | (3,001 | ) | 6,782 | 1,407 | 27,135 | ||||||||||
| Impairments(a) | 9,827 | — | 9,827 | — | |||||||||||
| Amortization of acquisition intangibles | 450 | 462 | 1,812 | 1,849 | |||||||||||
| Share-based compensation(b) | 67 | 765 | 2,598 | 3,656 | |||||||||||
| CEO transition costs(c) | 31 | — | 1,708 | — | |||||||||||
| Business development consulting costs(d) | — | — | — | 312 | |||||||||||
| Adjusted Net Income before income taxes | (733 | ) | 31,061 | 26,074 | 123,404 | ||||||||||
| Adjusted income tax expense (benefit)(e) | (147 | ) | 7,144 | 5,214 | 28,383 | ||||||||||
| Adjusted Net Income (Loss) | $ | (586 | ) | $ | 23,917 | $ | 20,860 | $ | 95,021 | ||||||
| Adjusted net income (loss) per common share | |||||||||||||||
| Basic | $ | (0.04 | ) | $ | 1.38 | $ | 1.23 | $ | 5.39 | ||||||
| Diluted | $ | (0.04 | ) | $ | 1.37 | $ | 1.22 | $ | 5.35 | ||||||
| Weighted average shares used for the computation of (f): | |||||||||||||||
| Basic Adjusted net income (loss) per share | 16,710,544 | 17,299,562 | 16,930,348 | 17,618,797 | |||||||||||
| Diluted Adjusted net income (loss) per share | 16,710,544 | 17,505,504 | 17,038,305 | 17,765,117 | |||||||||||
The following table presents the reconciliation of net income (loss) from continuing operations per diluted share to Adjusted Net Income (loss) per diluted share for the periods indicated:
| (Dollars in thousands, except per share data) | Three Months Ended | For the Years Ended | |||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) from continuing operations per diluted share | $ | (0.49 | ) | $ | 1.32 | $ | 0.51 | $ | 5.09 | ||||||
| Impact of adjustments: | |||||||||||||||
| Income tax expense (benefit) | (0.18 | ) | 0.39 | 0.08 | 1.53 | ||||||||||
| Impairments(a) | 0.59 | — | 0.57 | — | |||||||||||
| Amortization of acquisition intangibles | 0.03 | 0.03 | 0.11 | 0.10 | |||||||||||
| Share-based compensation(b) | — | 0.04 | 0.15 | 0.21 | |||||||||||
| CEO transition costs(c) | — | — | 0.10 | — | |||||||||||
| Business development consulting costs(d) | — | — | — | 0.02 | |||||||||||
| Adjusted Net Income per diluted share before income taxes | (0.05 | ) | 1.78 | 1.52 | 6.95 | ||||||||||
| Impact of adjusted income tax expense on net income per diluted share before income taxes(e) | 0.01 | (0.41 | ) | (0.30 | ) | (1.60 | ) | ||||||||
| Adjusted Net Income (loss) per diluted share | $ | (0.04 | ) | $ | 1.37 | $ | 1.22 | $ | 5.35 | ||||||
| (a) | Represents non-cash charges recorded in the Aviara segment of |
| (b) | Included in share-based compensation are the impacts of accelerating expense recognition for equity awards related to the CEO transition. |
| (c) | Represents amounts paid to the Company’s former CEO upon his departure under the terms of his transition agreements and legal fees incurred with the transition, but excluding amounts related to accelerating expense recognition for equity awards related to the CEO transition noted in (b). Also included are recruiting and relocation costs related to the new CEO. |
| (d) | Represents non-recurring third-party costs associated with business development activities, primarily relating to consulting costs for evaluation and execution of internal growth and other strategic initiatives. The evaluation and execution of the internal growth and other strategic initiatives is a bespoke initiative, and the costs associated therewith do not constitute normal recurring cash operating expenses necessary to operate the Company’s business. |
| (e) | For fiscal 2024 and 2023, income tax expense (benefit) reflects an income tax rate of |
| (f) | Represents the Weighted Average Shares used for the computation of Basic and Diluted (loss) earnings per share as presented on the Consolidated Statements of Operations to calculate Adjusted Net Income (loss) per diluted share for all periods presented herein. |
Investor Contact:
MasterCraft Boat Holdings, Inc.
John Zelenak
Manager of Treasury & Investor Relations
Email: investorrelations@mastercraft.com
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