MasterCraft Boat Holdings, Inc. Reports Fiscal 2025 Second Quarter Results
MasterCraft Boat Holdings (NASDAQ: MCFT) reported fiscal 2025 second quarter results with net sales of $63.4 million, down 29.4% year-over-year. Income from continuing operations was $0.4 million ($0.03 per diluted share), while Adjusted Net Income reached $1.7 million ($0.10 per diluted share).
The company's gross margin declined 610 basis points due to unfavorable model mix and lower cost absorption. Adjusted EBITDA was $3.5 million, with a margin of 5.6%, down from 14.4% in the prior year. The company maintains a strong financial position with $62.9 million in cash and investments, and $100 million available on its revolving credit facility.
For fiscal 2025, MasterCraft narrowed its guidance, projecting consolidated net sales between $275-295 million, Adjusted EBITDA of $19-24 million, and Adjusted EPS of $0.64-0.86. For Q3 2025, the company expects net sales of approximately $75 million with Adjusted EBITDA of $5 million.
MasterCraft Boat Holdings (NASDAQ: MCFT) ha riportato i risultati finanziari del secondo trimestre del 2025 con vendite nette di $63,4 milioni, in calo del 29,4% rispetto all'anno precedente. L'utile delle operazioni continuative è stato di $0,4 milioni ($0,03 per azione diluita), mentre l'utile netto rettificato ha raggiunto $1,7 milioni ($0,10 per azione diluita).
Il margine lordo dell'azienda è diminuito di 610 punti base a causa di un mix di modelli sfavorevole e di un assorbimento dei costi inferiore. L'EBITDA rettificato è stato di $3,5 milioni, con un margine del 5,6%, in calo rispetto al 14,4% dell'anno precedente. L'azienda mantiene una posizione finanziaria solida, con $62,9 milioni in contante e investimenti, e $100 milioni disponibili nella sua linea di credito revolving.
Per l'anno fiscale 2025, MasterCraft ha ristretto le sue previsioni, proiettando vendite nette consolidate tra $275-295 milioni, un EBITDA rettificato di $19-24 milioni e un utile per azione rettificato di $0,64-0,86. Per il terzo trimestre del 2025, l'azienda prevede vendite nette di circa $75 milioni con un EBITDA rettificato di $5 milioni.
MasterCraft Boat Holdings (NASDAQ: MCFT) reportó los resultados del segundo trimestre de 2025 con ventas netas de $63.4 millones, una disminución del 29.4% en comparación con el año anterior. Los ingresos de las operaciones continuas fueron de $0.4 millones ($0.03 por acción diluida), mientras que el ingreso neto ajustado alcanzó los $1.7 millones ($0.10 por acción diluida).
El margen bruto de la empresa disminuyó 610 puntos básicos debido a un mix de modelos desfavorable y una menor absorción de costos. El EBITDA ajustado fue de $3.5 millones, con un margen del 5.6%, por debajo del 14.4% del año anterior. La empresa mantiene una sólida posición financiera con $62.9 millones en efectivo e inversiones, y $100 millones disponibles en su línea de crédito renovable.
Para el año fiscal 2025, MasterCraft ajustó su guía, proyectando ventas netas consolidadas entre $275-295 millones, EBITDA ajustado de $19-24 millones y EPS ajustado de $0.64-0.86. Para el tercer trimestre de 2025, la empresa espera ventas netas de aproximadamente $75 millones con un EBITDA ajustado de $5 millones.
마스터크래프트 보트 홀딩스 (NASDAQ: MCFT)는 2025 회계연도 2분기 실적을 보고하며 순매출 $63.4 백만을 기록했습니다. 이는 전년 대비 29.4% 감소한 수치입니다. 지속적인 운영으로 인한 수익은 $0.4 백만 ($0.03 희석 주당)였으며, 조정된 순수익은 $1.7 백만 ($0.10 희석 주당)에 도달했습니다.
회사의 총 마진은 불리한 모델 믹스와 낮은 비용 흡수로 인해 610 베이시스 포인트 감소했습니다. 조정된 EBITDA는 $3.5 백만, 마진은 5.6%로, 전년의 14.4%에서 감소했습니다. 회사는 $62.9 백만의 현금 및 투자와 $100 백만의 회전 신용 시설을 확보하며 강력한 재무 상태를 유지하고 있습니다.
2025 회계연도에 대해 마스터크래프트는 가이던스를 축소하여 통합 순매출을 $275-295 백만, 조정된 EBITDA를 $19-24 백만, 조정된 EPS를 $0.64-0.86으로 예상하고 있습니다. 2025년 3분기에는 약 $75 백만의 순매출과 $5 백만의 조정된 EBITDA를 예상하고 있습니다.
MasterCraft Boat Holdings (NASDAQ: MCFT) a annoncé les résultats du deuxième trimestre de l'exercice 2025 avec des ventes nettes de $63,4 millions, soit une baisse de 29,4 % par rapport à l'année précédente. Le revenu des opérations continues s'est établi à $0,4 million ($0,03 par action diluée), tandis que le revenu net ajusté a atteint $1,7 million ($0,10 par action diluée).
La marge brute de l'entreprise a diminué de 610 points de base en raison d'un mélange de modèles défavorable et d'une absorption des coûts plus faible. L'EBITDA ajusté s'est chiffré à $3,5 millions, avec une marge de 5,6 %, en baisse par rapport à 14,4 % l'année précédente. L'entreprise maintient une position financière solide avec $62,9 millions en espèces et investissements, et $100 millions disponibles sur sa ligne de crédit renouvelable.
Pour l'exercice 2025, MasterCraft a restreint ses prévisions, projetant des ventes nettes consolidées comprises entre $275-295 millions, un EBITDA ajusté de $19-24 millions, et un bénéfice par action ajusté de $0,64-0,86. Pour le troisième trimestre de 2025, l'entreprise s'attend à des ventes nettes d'environ $75 millions avec un EBITDA ajusté de $5 millions.
MasterCraft Boat Holdings (NASDAQ: MCFT) hat die Ergebnisse für das zweite Quartal 2025 mit Nettoumsätzen von $63,4 Millionen bekannt gegeben, was einem Rückgang von 29,4% im Vergleich zum Vorjahr entspricht. Das Einkommen aus fortlaufenden Betrieben betrug $0,4 Millionen ($0,03 pro verwässerter Aktie), während der bereinigte Nettogewinn $1,7 Millionen ($0,10 pro verwässerter Aktie) erreichte.
Die Bruttomarge des Unternehmens sank um 610 Basispunkte aufgrund eines ungünstigen Modells-Überhangs und einer geringeren Kostendeckung. Das bereinigte EBITDA betrug $3,5 Millionen, mit einer Marge von 5,6%, was einem Rückgang von 14,4% im Vorjahr entspricht. Das Unternehmen behält eine starke finanzielle Position mit $62,9 Millionen in Bargeld und Investitionen sowie $100 Millionen, die in seiner revolvierenden Kreditlinie verfügbar sind.
Für das Geschäftsjahr 2025 hat MasterCraft seine Prognose eingegrenzt und erwartet einen konsolidierten Nettoumsatz zwischen $275-295 Millionen, ein bereinigtes EBITDA von $19-24 Millionen und einen bereinigten Gewinn pro Aktie von $0,64-0,86. Für das 3. Quartal 2025 erwartet das Unternehmen einen Nettoumsatz von etwa $75 Millionen mit einem bereinigten EBITDA von $5 Millionen.
- Strong balance sheet with $62.9 million cash and zero debt
- Generated $13.9 million cash flow from continuing operations
- Encouraging early boat show results, particularly for new XStar lineup
- $100 million available on revolving credit facility
- Net sales decreased 29.4% to $63.4 million
- Gross margin declined 610 basis points
- Income from continuing operations dropped to $0.4 million from $8.7 million YoY
- Adjusted EBITDA margin decreased to 5.6% from 14.4% YoY
Insights
MasterCraft's Q2 FY2025 results present a complex picture that requires careful analysis. While headline numbers show significant declines - net sales down 29.4% to
The deliberate reduction in production volumes, while impacting current financials, demonstrates prudent inventory management in a challenging market. The company generated $13.9 million in operating cash flow despite low production volumes, highlighting operational efficiency. The debt-free balance sheet with
The early success of the ultra-premium XStar lineup is particularly noteworthy, as it suggests:
- Effective product development targeting the high-margin luxury segment
- Resilient demand in premium categories despite broader market softness
- Potential for margin improvement as volumes normalize
The narrowed full-year guidance of
The strong cash flow generation despite reduced volumes (
VONORE, Tenn., Feb. 06, 2025 (GLOBE NEWSWIRE) -- MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) today announced financial results for its fiscal 2025 second quarter ended December 29, 2024.
The overview, commentary, and results provided herein relate to our continuing operations, which exclude our former Aviara segment.
Overview:
- Net sales for the second quarter were
$63.4 million , down$26.4 million , or29.4% , from the comparable prior-year period - Planned decrease in production contributed to significantly lower dealer inventory levels compared to the prior-year
- Income from continuing operations was
$0.4 million , or$0.03 per diluted share - Adjusted Net Income, a non-GAAP measure, was
$1.7 million , or$0.10 per diluted share - Adjusted EBITDA, a non-GAAP measure, was
$3.5 million , down$9.4 million from the comparable prior-year period - All debt amounts have been repaid, leaving
$62.9 million of cash and investments, with$100 million of availability on the revolving credit facility - The dispositions of the Aviara brand and facility assets have been completed
Brad Nelson, Chief Executive Officer, commented, “Our business executed well during our fiscal second quarter by delivering results above expectations despite macroeconomic and retail environment headwinds. Early boat show season results have been encouraging, especially with strong demand for our new ultra-premium XStar lineup which has provided positive momentum as we near the summer selling season.”
Nelson continued, “We maintain a disciplined approach to capital allocation. During the quarter, we generated
Second Quarter Results
For the second quarter of fiscal 2025, MasterCraft Boat Holdings, Inc. reported consolidated net sales of
Gross margin percentage declined 610 basis points during the second quarter of fiscal 2025, compared to the prior-year period. Lower margins were the result of unfavorable model mix and lower cost absorption due to the decreased production volume.
Income from continuing operations was
Adjusted Net income was
Adjusted EBITDA was
See “Non-GAAP Measures” below for a reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Net Income per share, which we refer to collectively as the “Non-GAAP Measures”, to the most directly comparable financial measures presented in accordance with GAAP.
Outlook
Concluded Nelson, “We are narrowing our full year guidance as a result of our second quarter outperformance and added confidence in our production plans from the encouraging XStar launch. We are planning for a range of industry and macroeconomic scenarios while implications of trade uncertainties on the broader economy remains largely unknown. With a strong balance sheet and cash flow generation, we maintain the financial flexibility to pursue our key growth initiatives while we continue to repurchase shares. As we move beyond inventory rebalancing, we are highly focused on positioning the business to capitalize on the upcoming market recovery.”
The Company’s outlook is as follows:
- For full year fiscal 2025, we now expect consolidated net sales to be between
$275 million and$295 million , with Adjusted EBITDA between$19 million and$24 million , and Adjusted Earnings per share between$0.64 and$0.86 . We continue to expect capital expenditures to be approximately$12 million for the year. - For fiscal third quarter 2025, consolidated net sales are expected to be approximately
$75 million , with Adjusted EBITDA of approximately$5 million , and Adjusted Earnings per share of approximately$0.17 .
Conference Call and Webcast Information
MasterCraft Boat Holdings, Inc. will host a live conference call and webcast to discuss fiscal second quarter 2025 results today, February 6, 2025, at 8:30 a.m. EST. 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, the sale of our Merritt Island facility, and our 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: changes in interest rates, general economic conditions, changes in trade priorities, policies and regulations (particularly as a result of the 2024 U.S. election), including the potential for increases or changes in duties, current and potentially new tariffs and quotas, demand for our products, persistent inflationary pressures, changes in consumer preferences, competition within our industry, our ability to maintain a reliable network of dealers, our ability to cooperate with our strategic partners, elevated inventories resulting in increased costs for dealers, our ability to manage our manufacturing levels and our fixed cost base, the successful introduction of our new products, the success of our strategic divestments, geopolitical conflicts, 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, 2024, filed with the Securities and Exchange Commission (the “SEC”) on August 30, 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 and Six Months Ended December 29, 2024
| MASTERCRAFT BOAT HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| December 29, 2024 | December 31, 2023 | December 29, 2024 | December 31, 2023 | |||||||||||||
| Net sales | $ | 63,368 | $ | 89,750 | $ | 128,727 | $ | 184,055 | ||||||||
| Cost of sales | 52,476 | 68,812 | 106,037 | 140,642 | ||||||||||||
| Gross profit | 10,892 | 20,938 | 22,690 | 43,413 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and marketing | 2,824 | 2,500 | 5,698 | 5,584 | ||||||||||||
| General and administrative | 7,432 | 7,225 | 14,902 | 15,601 | ||||||||||||
| Amortization of other intangible assets | 450 | 450 | 900 | 912 | ||||||||||||
| Total operating expenses | 10,706 | 10,175 | 21,500 | 22,097 | ||||||||||||
| Operating income | 186 | 10,763 | 1,190 | 21,316 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (182 | ) | (854 | ) | (1,169 | ) | (1,732 | ) | ||||||||
| Interest income | 697 | 1,415 | 1,889 | 2,766 | ||||||||||||
| Income before income tax expense | 701 | 11,324 | 1,910 | 22,350 | ||||||||||||
| Income tax expense | 275 | 2,644 | 468 | 5,139 | ||||||||||||
| Income from continuing operations | 426 | 8,680 | 1,442 | 17,211 | ||||||||||||
| Income (loss) from discontinued operations, net of tax | 2,322 | (2,794 | ) | (3,839 | ) | (5,130 | ) | |||||||||
| Net income (loss) | $ | 2,748 | $ | 5,886 | $ | (2,397 | ) | $ | 12,081 | |||||||
| Income (loss) per share | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | 0.03 | $ | 0.51 | $ | 0.09 | $ | 1.01 | ||||||||
| Discontinued operations | 0.14 | (0.16 | ) | (0.24 | ) | (0.30 | ) | |||||||||
| Net income (loss) | $ | 0.17 | $ | 0.35 | $ | (0.15 | ) | $ | 0.71 | |||||||
| Diluted | ||||||||||||||||
| Continuing operations | $ | 0.03 | $ | 0.51 | $ | 0.09 | $ | 1.00 | ||||||||
| Discontinued operations | 0.14 | (0.17 | ) | (0.24 | ) | (0.30 | ) | |||||||||
| Net income (loss) | $ | 0.17 | $ | 0.34 | $ | (0.15 | ) | $ | 0.70 | |||||||
| Weighted average shares used for computation of: | ||||||||||||||||
| Basic earnings per share | 16,454,776 | 17,010,116 | 16,499,858 | 17,083,204 | ||||||||||||
| Diluted earnings per share | 16,543,502 | 17,091,633 | 16,499,858 | 17,158,124 | ||||||||||||
| MASTERCRAFT BOAT HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars in thousands, except per share data) | ||||||||
| December 29, 2024 | June 30, 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 34,314 | $ | 7,394 | ||||
| Short-term investments | 28,548 | 78,846 | ||||||
| Accounts receivable, net of allowances of | 5,290 | 11,455 | ||||||
| Income tax receivable | 2,035 | 499 | ||||||
| Inventories, net | 36,988 | 36,972 | ||||||
| Prepaid expenses and other current assets | 4,554 | 8,686 | ||||||
| Current assets associated with discontinued operations | — | 11,222 | ||||||
| Total current assets | 111,729 | 155,074 | ||||||
| Property, plant and equipment, net | 52,841 | 52,314 | ||||||
| Goodwill | 28,493 | 28,493 | ||||||
| Other intangible assets, net | 32,750 | 33,650 | ||||||
| Deferred income taxes | 17,265 | 18,584 | ||||||
| Other long-term assets | 7,037 | 8,189 | ||||||
| Non-current assets associated with discontinued operations | — | 21,680 | ||||||
| Total assets | $ | 250,115 | $ | 317,984 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 8,443 | $ | 10,431 | ||||
| Accrued expenses and other current liabilities | 52,176 | 55,068 | ||||||
| Current portion of long-term debt, net of unamortized debt issuance costs | — | 4,374 | ||||||
| Current liabilities associated with discontinued operations | — | 8,063 | ||||||
| Total current liabilities | 60,619 | 77,936 | ||||||
| Long-term debt, net of unamortized debt issuance costs | — | 44,887 | ||||||
| Unrecognized tax positions | 8,625 | 8,549 | ||||||
| Other long-term liabilities | 2,365 | 2,551 | ||||||
| Long-term liabilities associated with discontinued operations | — | 182 | ||||||
| Total liabilities | 71,609 | 134,105 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY: | ||||||||
| Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 16,773,544 shares at December 29, 2024 and 16,759,109 shares at June 30, 2024 | 167 | 167 | ||||||
| Additional paid-in capital | 56,916 | 59,892 | ||||||
| Retained earnings | 121,223 | 123,620 | ||||||
| MasterCraft Boat Holdings, Inc. equity | 178,306 | 183,679 | ||||||
| Noncontrolling interest | 200 | 200 | ||||||
| Total equity | 178,506 | 183,879 | ||||||
| Total liabilities and equity | $ | 250,115 | $ | 317,984 | ||||
Supplemental Operating Data
The following table presents certain supplemental operating data for the periods indicated:
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| December 29, 2024 | December 31, 2023 | | December 29, 2024 | December 31, 2023 | ||||||||||||||||||||||
| Change | Change | |||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| Unit sales volume: | ||||||||||||||||||||||||||
| MasterCraft | 400 | 491 | (18.5 | ) | % | 774 | 985 | (21.4 | ) | % | ||||||||||||||||
| Pontoon | 153 | 365 | (58.1 | ) | % | 330 | 727 | (54.6 | ) | % | ||||||||||||||||
| Consolidated | 553 | 856 | (35.4 | ) | % | 1,104 | 1,712 | (35.5 | ) | % | ||||||||||||||||
| Net sales: | ||||||||||||||||||||||||||
| MasterCraft | $ | 55,097 | $ | 72,699 | (24.2 | ) | % | $ | 110,630 | $ | 148,535 | (25.5 | ) | % | ||||||||||||
| Pontoon | 8,271 | 17,051 | (51.5 | ) | % | 18,097 | 35,520 | (49.1 | ) | % | ||||||||||||||||
| Consolidated | $ | 63,368 | $ | 89,750 | (29.4 | ) | % | $ | 128,727 | $ | 184,055 | (30.1 | ) | % | ||||||||||||
| Net sales per unit: | ||||||||||||||||||||||||||
| MasterCraft | $ | 138 | $ | 148 | (6.8 | ) | % | $ | 143 | $ | 151 | (5.3 | ) | % | ||||||||||||
| Pontoon | 54 | 47 | 14.9 | % | 55 | 49 | 12.2 | % | ||||||||||||||||||
| Consolidated | 115 | 105 | 9.5 | % | 117 | 108 | 8.3 | % | ||||||||||||||||||
| Gross margin | 17.2 | % | 23.3 | % | (610) bps | 17.6 | % | 23.6 | % | (600) bps | ||||||||||||||||
Non-GAAP Measures
EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin
We define EBITDA as income 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, the adjustments include share-based compensation, and CEO transition and organizational realignment 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 and Adjusted Net Income per share
We define Adjusted Net Income and Adjusted Net Income per share as 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 on adjusted net income before income taxes at our estimated annual effective tax rate. For the periods presented herein, these adjustments include other intangible asset amortization, share-based compensation, and CEO transition and organizational realignment 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, net income 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 and Adjusted Net Income 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 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 income from continuing operations as determined in accordance with GAAP to EBITDA and Adjusted EBITDA, and 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 | Six Months Ended | ||||||||||||||||||||||||||
| December 29, 2024 | % of Net sales | December 31, 2023 | % of Net sales | December 29, 2024 | % of Net sales | December 31, 2023 | % of Net sales | |||||||||||||||||||||
| Income from continuing operations | $ | 426 | $ | 8,680 | $ | 1,442 | $ | 17,211 | ||||||||||||||||||||
| Income tax expense | 275 | 2,644 | 468 | 5,139 | ||||||||||||||||||||||||
| Interest expense | 182 | 854 | 1,169 | 1,732 | ||||||||||||||||||||||||
| Interest income | (697 | ) | (1,415 | ) | (1,889 | ) | (2,766 | ) | ||||||||||||||||||||
| Depreciation and amortization | 2,382 | 2,098 | 4,456 | 4,207 | ||||||||||||||||||||||||
| EBITDA | 2,568 | 12,861 | 5,646 | 25,523 | ||||||||||||||||||||||||
| Share-based compensation | 844 | 63 | 1,274 | 973 | ||||||||||||||||||||||||
| CEO transition and organizational realignment costs(a) | 114 | — | 448 | 436 | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 3,526 | $ | 12,924 | $ | 7,368 | $ | 26,932 | ||||||||||||||||||||
The following table sets forth a reconciliation of income from continuing operations as determined in accordance with GAAP to Adjusted Net Income for the periods indicated:
| (Dollars in thousands, except per share data) | Three Months Ended | Six Months Ended | |||||||||||||
| December 29, 2024 | December 31, 2023 | December 29, 2024 | December 31, 2023 | ||||||||||||
| Income from continuing operations | $ | 426 | $ | 8,680 | $ | 1,442 | $ | 17,211 | |||||||
| Income tax expense | 275 | 2,644 | 468 | 5,139 | |||||||||||
| Amortization of acquisition intangibles | 450 | 450 | 900 | 912 | |||||||||||
| Share-based compensation | 844 | 63 | 1,274 | 973 | |||||||||||
| CEO transition and organizational realignment costs(a) | 114 | — | 448 | 436 | |||||||||||
| Adjusted Net Income before income taxes | 2,109 | 11,837 | 4,532 | 24,671 | |||||||||||
| Adjusted income tax expense(b) | 422 | 2,368 | 906 | 4,934 | |||||||||||
| Adjusted Net Income | $ | 1,687 | $ | 9,469 | $ | 3,626 | $ | 19,737 | |||||||
| Adjusted net income per common share | |||||||||||||||
| Basic | $ | 0.10 | $ | 0.56 | $ | 0.22 | $ | 1.16 | |||||||
| Diluted | $ | 0.10 | $ | 0.55 | $ | 0.22 | $ | 1.15 | |||||||
| Weighted average shares used for the computation of (c): | |||||||||||||||
| Basic Adjusted net income per share | 16,454,776 | 17,010,116 | 16,499,858 | 17,083,204 | |||||||||||
| Diluted Adjusted net income per share | 16,543,502 | 17,091,633 | 16,499,858 | 17,158,124 | |||||||||||
The following table presents the reconciliation of income from continuing operations per diluted share to Adjusted Net Income per diluted share for the periods indicated:
| Three Months Ended | Six Months Ended | ||||||||||||||
| December 29, 2024 | December 31, 2023 | December 29, 2024 | December 31, 2023 | ||||||||||||
| Income from continuing operations per diluted share | $ | 0.03 | $ | 0.51 | $ | 0.09 | $ | 1.00 | |||||||
| Impact of adjustments: | |||||||||||||||
| Income tax expense | 0.02 | 0.16 | 0.03 | 0.30 | |||||||||||
| Amortization of acquisition intangibles | 0.03 | 0.03 | 0.06 | 0.05 | |||||||||||
| Share-based compensation | 0.05 | — | 0.08 | 0.06 | |||||||||||
| CEO transition and organizational realignment costs(a) | — | — | 0.03 | 0.03 | |||||||||||
| Adjusted Net Income per diluted share before income taxes | 0.13 | 0.70 | 0.29 | 1.44 | |||||||||||
| Impact of adjusted income tax expense on net income per diluted share before income taxes(b) | (0.03 | ) | (0.15 | ) | (0.07 | ) | (0.29 | ) | |||||||
| Adjusted Net Income per diluted share | $ | 0.10 | $ | 0.55 | $ | 0.22 | $ | 1.15 | |||||||
| (a) | Represents amounts paid for legal fees and recruiting costs associated with the CEO transition, as well as non-recurring severance costs incurred as part of the Company's strategic organizational realignment undertaken in connection with the transition. | |
| (b) | For fiscal 2025 and 2024, income tax expense reflects an income tax rate of | |
| (c) | Represents the Weighted Average Shares used for the computation of Basic and Diluted earnings per share as presented on the Consolidated Statements of Operations to calculate Adjusted Net Income 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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