MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) today announced
financial results for its fiscal 2024 third quarter ended March 31,
2024.
The overview, commentary, and results provided
herein relate to our continuing operations.
Overview:
- Net sales for the third quarter were $95.7 million, down 42.6%
from the prior-year period
- Net income from continuing operations was $3.8 million, or
$0.23 per diluted share
- Diluted Adjusted Net Income per share, a non-GAAP measure, was
$0.37, down 72.8% from the prior-year period
- Adjusted EBITDA, a non-GAAP measure, was $9.7 million, down
70.7% from the prior-year period
- Share repurchases of $1.6 million during the quarter
- Ended the quarter with cash and investments of $105.7 million,
and total debt of $50.4 million
Brad Nelson, Chief Executive Officer, commented,
“We delivered results ahead of our expectations in what remains a
dynamic and challenging environment for the marine industry. My
first six weeks with our team has been energizing, and it is clear
to me that our capabilities and opportunities are even greater than
I anticipated. Since I joined the Company, I have been on the road
meeting with and getting to know our team, our customers, dealers
and business partners. The headline takeaways, are highly
encouraging - the foundation of the business is strong, MasterCraft
is home to iconic and leading brands, customers and dealers love
our products, and the long-term outlook for the industry is bright.
We are laser focused on and well-positioned to navigate the
near-term challenges in our industry as we evolve our long-term
growth strategy.”
Nelson continued, “We recently announced the
launch of an all-new luxury pontoon brand, Balise. Balise will
further diversify our product offerings, expand our addressable
market, and grow our portfolio of strong brands. The Balise product
will be built by our experienced team at Crest’s manufacturing
facility in Owosso, Michigan, which is a capital-efficient use of
existing capacity. Balise production has already commenced, and
product will be available to consumers for model year 2025. The
launch of Balise Pontoon Boats is the latest example of our
unwavering commitment to growth and innovation.”
Third Quarter Results
For the third quarter of fiscal 2024,
MasterCraft Boat Holdings, Inc. reported consolidated net sales of
$95.7 million, down $71.1 million from the third quarter of fiscal
2023. The decrease in net sales was due to lower unit volume and an
increase in dealer incentives, partially offset by higher prices
and favorable model mix and options. Dealer incentives include
measures taken by the Company to assist dealers as the retail
environment remains competitive.
Gross margin percentage declined 630 basis
points during the third quarter of 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 and favorable
model mix and options.
Operating expenses increased $0.8 million for
the third quarter of fiscal 2024, compared to the prior-year
period. The increase in operating expenses was a result of CEO
transition and related share-based compensation costs, which were
$1.9 million.
Net income from continuing operations was $3.8
million for the third quarter of fiscal 2024, compared to $22.8
million in the prior-year period. Diluted net income from
continuing operations per share was $0.23, compared to $1.28 for
the third quarter of fiscal 2023.
Adjusted Net Income decreased to $6.3 million
for the third quarter of fiscal 2024, or $0.37 per diluted share,
compared to $24.1 million, or $1.36 per diluted share, in the
prior-year period.
Adjusted EBITDA was $9.7 million for the third
quarter of fiscal 2024, compared to $33.0 million in the prior-year
period. Adjusted EBITDA margin was 10.1 percent for the third
quarter, down from 19.8 percent for the prior-year period.
See “Non-GAAP Measures” below for a
reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
Net Income, and Adjusted Net Income per share to the most directly
comparable financial measures presented in accordance with
GAAP.
Outlook
Concluded Nelson, “As we enter the prime retail
selling season, macroeconomic uncertainty continues to limit demand
visibility. This has been exacerbated by the news that a
competitor’s largest dealer is in financial distress, which has
heightened competitive pressure with the potential for
higher-than-normal competitor discounting. Dealer inventories
remain higher-than-optimal and inventory carrying costs are
elevated. Consequently, dealers are taking a cautious approach to
ordering ahead of the annual model year changeover. We continue to
focus on balancing dealer inventories with retail demand to
prioritize dealer health, therefore, we plan to reduce planned
production for the remainder of our fiscal year. We have taken a
proactive approach to production planning, inventory management,
and dealer incentives to best position our dealers to capitalize on
retail demand during the upcoming selling season, and end the
fiscal year with improved inventory levels.”
The Company’s outlook is as follows:
- As a result of the planned decrease in production, we are
revising our guidance for the full year. Consolidated net sales is
now expected to be between $360 million and $365 million, with
Adjusted EBITDA between $28 million and $30 million, and Adjusted
Earnings per share between $0.95 and $1.05. We also now expect
capital expenditures to be approximately $17 million for the full
year.
Conference Call and Webcast
Information
MasterCraft Boat Holdings, Inc. will host a live
conference call and webcast to discuss fiscal third quarter 2024
results today, May 8, 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
four brands, MasterCraft, Crest, Aviara and Balise. Through these
four brands, MasterCraft Boat Holdings has leading market share
positions in two of the fastest growing segments of the powerboat
industry – performance sport boats and pontoon boats – while
entering the large, growing luxury day boat segment. For more
information about MasterCraft Boat Holdings, and its four brands,
visit: Investors.MasterCraft.com, www.MasterCraft.com,
www.CrestPontoons.com, www.AviaraBoats.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; and
our intention to drive value and accelerate growth.
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,
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, 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 U.S. generally
accepted accounting principles (“GAAP”), the Company uses certain
non-GAAP financial measures in this release. Reconciliations of the
non-GAAP financial 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. Non-GAAP financial 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
Nine Months Ended March 31, 2024
MASTERCRAFT BOAT HOLDINGS, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS
(Dollars in thousands, except per share data)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
March 31, |
|
|
April 2, |
|
|
March 31, |
|
|
April 2, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
95,708 |
|
|
$ |
166,776 |
|
|
$ |
299,406 |
|
|
$ |
495,480 |
|
Cost of
sales |
|
|
77,360 |
|
|
|
124,178 |
|
|
|
240,493 |
|
|
|
368,682 |
|
Gross profit |
|
|
18,348 |
|
|
|
42,598 |
|
|
|
58,913 |
|
|
|
126,798 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
3,924 |
|
|
|
3,927 |
|
|
|
10,538 |
|
|
|
10,748 |
|
General and administrative |
|
|
9,978 |
|
|
|
9,156 |
|
|
|
27,446 |
|
|
|
26,874 |
|
Amortization of other intangible assets |
|
|
450 |
|
|
|
489 |
|
|
|
1,362 |
|
|
|
1,467 |
|
Total operating expenses |
|
|
14,352 |
|
|
|
13,572 |
|
|
|
39,346 |
|
|
|
39,089 |
|
Operating
income |
|
|
3,996 |
|
|
|
29,026 |
|
|
|
19,567 |
|
|
|
87,709 |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(762 |
) |
|
|
(695 |
) |
|
|
(2,494 |
) |
|
|
(1,923 |
) |
Interest income |
|
|
1,398 |
|
|
|
1,195 |
|
|
|
4,164 |
|
|
|
1,967 |
|
Income
before income tax expense |
|
|
4,632 |
|
|
|
29,526 |
|
|
|
21,237 |
|
|
|
87,753 |
|
Income tax
expense |
|
|
806 |
|
|
|
6,744 |
|
|
|
4,408 |
|
|
|
20,353 |
|
Net income
from continuing operations |
|
|
3,826 |
|
|
|
22,782 |
|
|
|
16,829 |
|
|
|
67,400 |
|
Loss from
discontinued operations, net of tax |
|
|
(71 |
) |
|
|
(272 |
) |
|
|
(993 |
) |
|
|
(21,139 |
) |
Net
income |
|
$ |
3,755 |
|
|
$ |
22,510 |
|
|
$ |
15,836 |
|
|
$ |
46,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.23 |
|
|
$ |
1.30 |
|
|
$ |
0.99 |
|
|
$ |
3.80 |
|
Discontinued operations |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
(1.19 |
) |
Net income |
|
$ |
0.22 |
|
|
$ |
1.28 |
|
|
$ |
0.93 |
|
|
$ |
2.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.23 |
|
|
$ |
1.28 |
|
|
$ |
0.98 |
|
|
$ |
3.78 |
|
Discontinued operations |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.05 |
) |
|
|
(1.19 |
) |
Net income |
|
$ |
0.22 |
|
|
$ |
1.27 |
|
|
$ |
0.93 |
|
|
$ |
2.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares used for computation of: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
16,844,440 |
|
|
|
17,559,920 |
|
|
|
17,003,616 |
|
|
|
17,725,208 |
|
Diluted earnings per share |
|
|
16,965,624 |
|
|
|
17,748,910 |
|
|
|
17,093,958 |
|
|
|
17,851,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MASTERCRAFT BOAT HOLDINGS, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS
(Dollars in thousands, except per share data)
|
|
March
31, |
|
|
June
30, |
|
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
22,509 |
|
|
$ |
19,817 |
|
Held-to-maturity securities |
|
|
83,183 |
|
|
|
91,560 |
|
Accounts
receivable, net of allowances of $96 and $122, respectively |
|
|
13,473 |
|
|
|
15,741 |
|
Inventories,
net |
|
|
41,432 |
|
|
|
58,298 |
|
Prepaid
expenses and other current assets |
|
|
14,414 |
|
|
|
10,083 |
|
Total current assets |
|
|
175,011 |
|
|
|
195,499 |
|
Property,
plant and equipment, net |
|
|
79,593 |
|
|
|
77,921 |
|
Goodwill |
|
|
28,493 |
|
|
|
28,493 |
|
Other
intangible assets, net |
|
|
34,100 |
|
|
|
35,462 |
|
Deferred
income taxes |
|
|
14,377 |
|
|
|
12,428 |
|
Deferred
debt issuance costs, net |
|
|
306 |
|
|
|
304 |
|
Other
long-term assets |
|
|
9,002 |
|
|
|
3,869 |
|
Total assets |
|
$ |
340,882 |
|
|
$ |
353,976 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
15,216 |
|
|
$ |
20,391 |
|
Income tax
payable |
|
|
1,022 |
|
|
|
5,272 |
|
Accrued
expenses and other current liabilities |
|
|
66,164 |
|
|
|
72,496 |
|
Current
portion of long-term debt, net of unamortized debt issuance
costs |
|
|
4,371 |
|
|
|
4,381 |
|
Total current liabilities |
|
|
86,773 |
|
|
|
102,540 |
|
Long-term
debt, net of unamortized debt issuance costs |
|
|
45,982 |
|
|
|
49,295 |
|
Unrecognized
tax positions |
|
|
8,174 |
|
|
|
7,350 |
|
Operating
lease liabilities |
|
|
2,855 |
|
|
|
2,702 |
|
Total liabilities |
|
|
143,784 |
|
|
|
161,887 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
Common
stock, $.01 par value per share — authorized, 100,000,000
shares; issued and outstanding, 17,018,448 shares at March 31, 2024
and 17,312,850 shares at June 30, 2023 |
|
|
170 |
|
|
|
173 |
|
Additional
paid-in capital |
|
|
65,072 |
|
|
|
75,976 |
|
Retained
earnings |
|
|
131,656 |
|
|
|
115,820 |
|
MasterCraft Boat Holdings, Inc. equity |
|
|
196,898 |
|
|
|
191,969 |
|
Noncontrolling interest |
|
|
200 |
|
|
|
120 |
|
Total equity |
|
|
197,098 |
|
|
|
192,089 |
|
Total
liabilities and equity |
|
$ |
340,882 |
|
|
$ |
353,976 |
|
|
Supplemental Operating Data
The following table presents certain
supplemental operating data for the periods indicated:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
March 31, |
|
|
April 2, |
|
|
|
|
|
March 31, |
|
|
April 2, |
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
Change |
|
2024 |
|
|
2023 |
|
|
Change |
|
|
(Dollars in
thousands) |
Unit sales
volume: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCraft |
|
|
468 |
|
|
|
900 |
|
|
(48.0 |
)% |
|
|
1,453 |
|
|
|
2,457 |
|
|
(40.9 |
)% |
Crest |
|
|
298 |
|
|
|
722 |
|
|
(58.7 |
)% |
|
|
1,025 |
|
|
|
2,344 |
|
|
(56.3 |
)% |
Aviara |
|
|
39 |
|
|
|
34 |
|
|
14.7 |
% |
|
|
92 |
|
|
|
100 |
|
|
(8.0 |
)% |
Consolidated |
|
|
805 |
|
|
|
1,656 |
|
|
(51.4 |
)% |
|
|
2,570 |
|
|
|
4,901 |
|
|
(47.6 |
)% |
Net
sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCraft |
|
$ |
69,783 |
|
|
$ |
117,630 |
|
|
(40.7 |
)% |
|
$ |
218,319 |
|
|
$ |
339,315 |
|
|
(35.7 |
)% |
Crest |
|
|
14,194 |
|
|
|
36,369 |
|
|
(61.0 |
)% |
|
|
49,713 |
|
|
|
116,595 |
|
|
(57.4 |
)% |
Aviara |
|
|
11,731 |
|
|
|
12,777 |
|
|
(8.2 |
)% |
|
|
31,374 |
|
|
|
39,570 |
|
|
(20.7 |
)% |
Consolidated |
|
$ |
95,708 |
|
|
$ |
166,776 |
|
|
(42.6 |
)% |
|
$ |
299,406 |
|
|
$ |
495,480 |
|
|
(39.6 |
)% |
Net sales
per unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCraft |
|
$ |
149 |
|
|
$ |
131 |
|
|
13.7 |
% |
|
$ |
150 |
|
|
$ |
138 |
|
|
8.7 |
% |
Crest |
|
|
48 |
|
|
|
50 |
|
|
(4.0 |
)% |
|
|
49 |
|
|
|
50 |
|
|
(2.0 |
)% |
Aviara |
|
|
301 |
|
|
|
376 |
|
|
(19.9 |
)% |
|
|
341 |
|
|
|
396 |
|
|
(13.9 |
)% |
Consolidated |
|
|
119 |
|
|
|
101 |
|
|
17.8 |
% |
|
|
117 |
|
|
|
101 |
|
|
15.8 |
% |
Gross
margin |
|
|
19.2 |
% |
|
|
25.5 |
% |
|
(630) |
bps |
|
|
19.7 |
% |
|
|
25.6 |
% |
|
(590) |
bps |
Non-GAAP Measures
EBITDA, Adjusted EBITDA, EBITDA margin, and
Adjusted EBITDA margin
We define EBITDA as net 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, these adjustments include
share-based compensation, business development consulting costs,
and CEO transition 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 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 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, business development
consulting costs, and CEO transition costs.
EBITDA, Adjusted EBITDA, EBITDA margin, Adjusted
EBITDA margin, Adjusted Net Income, and Adjusted Net Income per
share, which we refer to collectively as the Non-GAAP Measures, are
not measures of net income or operating income as determined under
accounting principles generally accepted in the United States, or
U.S. GAAP. The Non-GAAP Measures are not measures of performance in
accordance with U.S. GAAP and should not be considered as an
alternative to net income, net income per share, or operating cash
flows determined in accordance with U.S. 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 U.S. GAAP,
provides a more complete understanding of factors and trends
affecting our business than does U.S. 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 U.S. 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 U.S. GAAP basis because we are
unable to predict certain items contained in the U.S. 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 from continuing operations as determined in accordance
with U.S. 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 |
|
Nine Months Ended |
|
|
March
31, |
|
|
% of
Net |
|
April
2, |
|
|
% of
Net |
|
March
31, |
|
|
% of
Net |
|
April
2, |
|
|
% of
Net |
|
|
2024 |
|
|
sales |
|
2023 |
|
|
sales |
|
2024 |
|
|
sales |
|
2023 |
|
|
sales |
Net income from continuing operations |
|
$ |
3,826 |
|
|
4.0 |
% |
|
$ |
22,782 |
|
|
13.7 |
% |
|
$ |
16,829 |
|
|
5.6 |
% |
|
$ |
67,400 |
|
|
13.6 |
% |
Income tax
expense |
|
|
806 |
|
|
|
|
|
6,744 |
|
|
|
|
|
4,408 |
|
|
|
|
|
20,353 |
|
|
|
Interest
expense |
|
|
762 |
|
|
|
|
|
695 |
|
|
|
|
|
2,494 |
|
|
|
|
|
1,923 |
|
|
|
Interest
income |
|
|
(1,398 |
) |
|
|
|
|
(1,195 |
) |
|
|
|
|
(4,164 |
) |
|
|
|
|
(1,967 |
) |
|
|
Depreciation
and amortization |
|
|
2,842 |
|
|
|
|
|
2,622 |
|
|
|
|
|
8,327 |
|
|
|
|
|
7,833 |
|
|
|
EBITDA |
|
|
6,838 |
|
|
7.1 |
% |
|
|
31,648 |
|
|
19.0 |
% |
|
|
27,894 |
|
|
9.3 |
% |
|
|
95,542 |
|
|
19.3 |
% |
Share-based
compensation(a) |
|
|
1,583 |
|
|
|
|
|
1,026 |
|
|
|
|
|
2,531 |
|
|
|
|
|
2,892 |
|
|
|
Business
development consulting costs(b) |
|
|
— |
|
|
|
|
|
312 |
|
|
|
|
|
— |
|
|
|
|
|
312 |
|
|
|
CEO
transition costs(c) |
|
|
1,241 |
|
|
|
|
|
— |
|
|
|
|
|
1,677 |
|
|
|
|
|
— |
|
|
|
Adjusted EBITDA |
|
$ |
9,662 |
|
|
10.1 |
% |
|
$ |
32,986 |
|
|
19.8 |
% |
|
$ |
32,102 |
|
|
10.7 |
% |
|
$ |
98,746 |
|
|
19.9 |
% |
The following table sets forth a reconciliation
of net income from continuing operations as determined in
accordance with U.S. GAAP to Adjusted Net Income for the periods
indicated:
(Dollars in
thousands, except per share data) |
Three Months Ended |
|
|
Nine Months Ended |
|
|
March
31, |
|
|
April
2, |
|
|
March
31, |
|
|
April
2, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net income from continuing operations |
$ |
3,826 |
|
|
$ |
22,782 |
|
|
$ |
16,829 |
|
|
$ |
67,400 |
|
Income tax
expense |
|
806 |
|
|
|
6,744 |
|
|
|
4,408 |
|
|
|
20,353 |
|
Amortization
of acquisition intangibles |
|
450 |
|
|
|
462 |
|
|
|
1,362 |
|
|
|
1,386 |
|
Share-based
compensation(a) |
|
1,583 |
|
|
|
1,026 |
|
|
|
2,531 |
|
|
|
2,892 |
|
Business
development consulting costs(b) |
|
— |
|
|
|
312 |
|
|
|
— |
|
|
|
312 |
|
CEO
transition costs(c) |
|
1,241 |
|
|
|
— |
|
|
|
1,677 |
|
|
|
— |
|
Adjusted Net
Income before income taxes |
|
7,906 |
|
|
|
31,326 |
|
|
|
26,807 |
|
|
|
92,343 |
|
Adjusted
income tax expense (d) |
|
1,581 |
|
|
|
7,205 |
|
|
|
5,361 |
|
|
|
21,239 |
|
Adjusted Net Income |
$ |
6,325 |
|
|
$ |
24,121 |
|
|
$ |
21,446 |
|
|
$ |
71,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income per common share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.38 |
|
|
$ |
1.37 |
|
|
$ |
1.26 |
|
|
$ |
4.01 |
|
Diluted |
$ |
0.37 |
|
|
$ |
1.36 |
|
|
$ |
1.25 |
|
|
$ |
3.98 |
|
Weighted
average shares used for the computation of (e): |
|
|
|
|
|
|
|
|
|
|
|
Basic
Adjusted net income per share |
|
16,844,440 |
|
|
|
17,559,920 |
|
|
|
17,003,616 |
|
|
|
17,725,208 |
|
Diluted
Adjusted net income per share |
|
16,965,624 |
|
|
|
17,748,910 |
|
|
|
17,093,958 |
|
|
|
17,851,655 |
|
(a) |
|
Included in share-based
compensation are the impacts of accelerating expense recognition
for equity awards related to the CEO transition. |
(b) |
|
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. |
(c) |
|
Represents amounts paid to the
Company’s former CEO upon his departure under the terms of his
transition agreements, including consulting payments and legal fees
incurred with the transition. Also included are recruiting and
relocation costs related to the new CEO. |
(d) |
|
For fiscal 2024 and 2023, income
tax expense reflects an income tax rate of 20.0% and 23.0%,
respectively, for each period presented. |
(e) |
|
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. |
|
|
|
The following table presents the reconciliation
of net income from continuing operations per diluted share to
Adjusted Net Income per diluted share for the periods
indicated:
(Dollars in
thousands, except per share data) |
Three Months Ended |
|
|
Nine Months Ended |
|
|
March
31, |
|
|
April
2, |
|
|
March
31, |
|
|
April
2, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net income from continuing operations per diluted
share |
$ |
0.23 |
|
|
$ |
1.28 |
|
|
$ |
0.98 |
|
|
$ |
3.78 |
|
Impact of
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
0.05 |
|
|
|
0.38 |
|
|
|
0.26 |
|
|
|
1.14 |
|
Amortization
of acquisition intangibles |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.08 |
|
|
|
0.08 |
|
Share-based
compensation(a) |
|
0.10 |
|
|
|
0.06 |
|
|
|
0.15 |
|
|
|
0.16 |
|
Business
development consulting costs(b) |
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
CEO
transition costs(c) |
|
0.07 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
Adjusted Net
Income per diluted share before income taxes |
|
0.48 |
|
|
|
1.77 |
|
|
|
1.57 |
|
|
|
5.18 |
|
Impact of
adjusted income tax expense on net income per diluted share before
income taxes(d) |
|
(0.11 |
) |
|
|
(0.41 |
) |
|
|
(0.32 |
) |
|
|
(1.20 |
) |
Adjusted Net Income per diluted share |
$ |
0.37 |
|
|
$ |
1.36 |
|
|
$ |
1.25 |
|
|
$ |
3.98 |
|
(a) |
|
Included in share-based
compensation are the impacts of accelerating expense recognition
for equity awards related to the CEO transition. |
(b) |
|
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. |
(c) |
|
Represents amounts paid to the
Company’s former CEO upon his departure under the terms of his
transition agreements, including consulting payments and legal fees
incurred with the transition. Also included are recruiting and
relocation costs related to the new CEO. |
(d) |
|
For fiscal 2024 and 2023, income
tax expense reflects an income tax rate of 20.0% and 23.0%,
respectively, for each period presented. |
Investor Contact: MasterCraft
Boat Holdings, Inc. John Zelenak Email:
investorrelations@mastercraft.com
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