MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) today announced
financial results for its fiscal 2024 second quarter ended December
31, 2023.
The highlights, commentary, and results provided
herein relate to our continuing operations.
Highlights:
- Net sales for the second quarter was $99.5 million, down 37.5%
from the prior-year period
- Net income from continuing operations was $5.9 million, or
$0.35 per diluted share
- Diluted Adjusted Net Income per share, a non-GAAP measure, was
$0.37, down 69.2% from the prior-year period
- Adjusted EBITDA, a non-GAAP measure, was $9.8 million, down
67.2% from the prior-year period
- Share repurchases of $4.4 million during the quarter
- Ended the quarter with cash and investments of $108.8
million
Fred Brightbill, Chief Executive Officer and
Chairman, commented, “Our business performed well during the second
quarter by exceeding previously issued guidance, despite continuing
macroeconomic uncertainty and a highly competitive retail
environment. Near-term, we remain focused on rebalancing dealer
inventories with anticipated retail demand. As we anticipate moving
beyond inventory rebalancing, we are prudently investing in
targeted initiatives that will take advantage of the industry’s
positive, underlying secular trends and accelerate our growth. Soon
we will be launching a new pontoon brand built in our Crest
facility. This new brand is an example of why we are confident in
our ability to deliver long-term growth for our shareholders.”
Brightbill continued, “We continue to exercise a
disciplined approach to capital allocation. Year-to-date, we have
generated $19.2 million of cash flow from operations and our strong
balance sheet provides us with the financial flexibility to pursue
our strategic growth initiatives while also returning excess cash
to shareholders. During the quarter, we spent approximately $4.4
million to repurchase more than 214,000 shares of our common stock.
Since initiating our share repurchase program in June 2021, we have
repurchased $58.6 million of our common stock and reduced our
shares outstanding by more than twelve percent.”
Second Quarter Results
For the second quarter of fiscal 2024,
MasterCraft Boat Holdings, Inc. reported consolidated net sales of
$99.5 million, down $59.7 million from the second quarter of fiscal
2023. The decrease in net sales is due to lower unit volume and an
increase in dealer incentives, partially offset by higher prices
and favorable mix and options. Dealer incentives include higher
floor plan financing costs as a result of increased dealer
inventories and interest rates, and other incentives as the retail
environment remains competitive.
Gross margin percentage declined 520 basis
points during the second 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 sales volume, higher
dealer incentives, and higher costs related to material, labor and
overhead inflation, partially offset by higher prices.
Operating expenses were relatively consistent
for the second quarter of fiscal 2024, compared to the prior-year
period. In pursuit of growth initiatives, we continue to invest in
product development and marketing.
Net income from continuing operations was $5.9
million for the second quarter of fiscal 2024, compared to $20.0
million in the prior-year period. Diluted net income from
continuing operations per share was $0.35, compared to $1.12 for
the second quarter of fiscal 2023.
Adjusted Net Income decreased to $6.3 million
for the second quarter of fiscal 2024, or $0.37 per diluted share,
compared to $21.3 million, or $1.20 per diluted share, in the
prior-year period.
Adjusted EBITDA was $9.8 million for the second
quarter of fiscal 2024, compared to $29.8 million in the prior-year
period. Adjusted EBITDA margin was 9.8 percent for the second
quarter, down from 18.7 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 Brightbill, “Views regarding the
economic outlook remain mixed and uncertain, which is limiting
retail demand visibility. The retail environment has become
increasingly competitive as industry participants react to lower
demand and higher inventory levels. The resulting increase in
promotional activity will likely pressure margins across the
industry. We continue to monitor retail results, assess the overall
business and economic environment, and accordingly adjust our
production and shipment plan. We expect to have a clearer picture
of retail demand as we progress through the third and fourth
quarters.”
The Company’s outlook is as follows:
- Looking forward, we are narrowing our guidance range for the
full year. Consolidated net sales is now expected to be between
$400 million and $412 million, with Adjusted EBITDA between $42
million and $47 million, and Adjusted Earnings per share between
$1.53 and $1.78. We expect capital expenditures to be approximately
$20 million for the full year.
- For the third quarter of fiscal 2024, consolidated net sales is
expected to be approximately $92 million, with Adjusted EBITDA of
approximately $7 million, and Adjusted Earnings per share of
approximately $0.23.
Conference Call and Webcast
Information
MasterCraft Boat Holdings, Inc. will host a live
conference call and webcast to discuss fiscal second quarter 2024
results today, February 7, 2024, 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 Aviara. Through these three
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 three brands,
visit: Investors.MasterCraft.com, www.MasterCraft.com,
www.CrestPontoons.com, and www.AviaraBoats.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 reliance on our network of independent
dealers, our ability to manage our manufacturing levels and our
fixed cost base, the successful introduction of our new products,
and geopolitical conflicts, such as the conflict between Russia and
Ukraine and the conflict in the Gaza Strip. 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, 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 Six Months Ended
December 31, 2023 |
|
MASTERCRAFT BOAT HOLDINGS, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(Dollars in thousands, except per share data) |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
December
31, |
|
|
January 1, |
|
|
December
31, |
|
|
January 1, |
|
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
99,481 |
|
|
$ |
159,188 |
|
|
$ |
203,698 |
|
|
$ |
328,704 |
|
Cost of sales |
|
|
80,752 |
|
|
|
120,961 |
|
|
|
163,133 |
|
|
|
244,504 |
|
Gross profit |
|
|
18,729 |
|
|
|
38,227 |
|
|
|
40,565 |
|
|
|
84,200 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
3,150 |
|
|
|
3,042 |
|
|
|
6,614 |
|
|
|
6,821 |
|
General and administrative |
|
|
8,111 |
|
|
|
8,235 |
|
|
|
17,468 |
|
|
|
17,718 |
|
Amortization of other intangible assets |
|
|
450 |
|
|
|
489 |
|
|
|
912 |
|
|
|
978 |
|
Total operating expenses |
|
|
11,711 |
|
|
|
11,766 |
|
|
|
24,994 |
|
|
|
25,517 |
|
Operating income |
|
|
7,018 |
|
|
|
26,461 |
|
|
|
15,571 |
|
|
|
58,683 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(854 |
) |
|
|
(666 |
) |
|
|
(1,732 |
) |
|
|
(1,228 |
) |
Interest income |
|
|
1,415 |
|
|
|
621 |
|
|
|
2,766 |
|
|
|
772 |
|
Income before income tax expense |
|
|
7,579 |
|
|
|
26,416 |
|
|
|
16,605 |
|
|
|
58,227 |
|
Income tax expense |
|
|
1,652 |
|
|
|
6,433 |
|
|
|
3,602 |
|
|
|
13,609 |
|
Net income from continuing operations |
|
|
5,927 |
|
|
|
19,983 |
|
|
|
13,003 |
|
|
|
44,618 |
|
Loss from discontinued operations, net of tax |
|
|
(41 |
) |
|
|
(300 |
) |
|
|
(922 |
) |
|
|
(20,867 |
) |
Net income |
|
$ |
5,886 |
|
|
$ |
19,683 |
|
|
$ |
12,081 |
|
|
$ |
23,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.35 |
|
|
$ |
1.13 |
|
|
$ |
0.76 |
|
|
$ |
2.51 |
|
Discontinued operations |
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.05 |
) |
|
|
(1.18 |
) |
Net income |
|
$ |
0.35 |
|
|
$ |
1.11 |
|
|
$ |
0.71 |
|
|
$ |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.35 |
|
|
$ |
1.12 |
|
|
$ |
0.76 |
|
|
$ |
2.49 |
|
Discontinued operations |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
(1.16 |
) |
Net income |
|
$ |
0.34 |
|
|
$ |
1.11 |
|
|
$ |
0.70 |
|
|
$ |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used for computation of: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
17,010,116 |
|
|
|
17,669,645 |
|
|
|
17,083,204 |
|
|
|
17,807,853 |
|
Diluted earnings per share |
|
|
17,091,633 |
|
|
|
17,774,329 |
|
|
|
17,158,124 |
|
|
|
17,903,027 |
|
MASTERCRAFT
BOAT HOLDINGS, INC. AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
|
(Dollars in
thousands, except per share data) |
|
|
|
December
31, |
|
|
June
30, |
|
|
|
2023 |
|
|
2023 |
|
ASSETS |
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
36,246 |
|
|
$ |
19,817 |
|
Held-to-maturity securities |
|
|
72,538 |
|
|
|
91,560 |
|
Accounts receivable, net of allowances of $38 and $122,
respectively |
|
|
8,786 |
|
|
|
15,741 |
|
Inventories, net |
|
|
43,056 |
|
|
|
58,298 |
|
Prepaid expenses and other current assets |
|
|
9,684 |
|
|
|
10,083 |
|
Total current assets |
|
|
170,310 |
|
|
|
195,499 |
|
Property, plant and equipment, net |
|
|
77,746 |
|
|
|
77,921 |
|
Goodwill |
|
|
28,493 |
|
|
|
28,493 |
|
Other intangible assets, net |
|
|
34,550 |
|
|
|
35,462 |
|
Deferred income taxes |
|
|
12,769 |
|
|
|
12,428 |
|
Deferred debt issuance costs, net |
|
|
341 |
|
|
|
304 |
|
Other long-term assets |
|
|
7,577 |
|
|
|
3,869 |
|
Total assets |
|
$ |
331,786 |
|
|
$ |
353,976 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
Accounts payable |
|
$ |
10,205 |
|
|
$ |
20,391 |
|
Income tax payable |
|
|
438 |
|
|
|
5,272 |
|
Accrued expenses and other current liabilities |
|
|
65,590 |
|
|
|
72,496 |
|
Current portion of long-term debt, net of unamortized debt
issuance costs |
|
|
4,368 |
|
|
|
4,381 |
|
Total current liabilities |
|
|
80,601 |
|
|
|
102,540 |
|
Long-term debt, net of unamortized debt issuance costs |
|
|
47,075 |
|
|
|
49,295 |
|
Unrecognized tax positions |
|
|
7,936 |
|
|
|
7,350 |
|
Operating lease liabilities |
|
|
2,843 |
|
|
|
2,702 |
|
Total liabilities |
|
|
138,455 |
|
|
|
161,887 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
Common stock, $.01 par value per share — authorized,
100,000,000 shares; issued and outstanding, 17,033,805 shares at
December 31, 2023 and 17,312,850 shares at June 30, 2023 |
|
|
170 |
|
|
|
173 |
|
Additional paid-in capital |
|
|
65,060 |
|
|
|
75,976 |
|
Retained earnings |
|
|
127,901 |
|
|
|
115,820 |
|
MasterCraft Boat Holdings, Inc. equity |
|
|
193,131 |
|
|
|
191,969 |
|
Noncontrolling interest |
|
|
200 |
|
|
|
120 |
|
Total equity |
|
|
193,331 |
|
|
|
192,089 |
|
Total liabilities and equity |
|
$ |
331,786 |
|
|
$ |
353,976 |
|
Supplemental Operating Data |
|
The following table presents certain supplemental
operating data for the periods indicated: |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December
31, |
|
|
January 1, |
|
|
|
|
|
|
December
31, |
|
|
January 1, |
|
|
|
|
|
|
|
2023 |
|
|
2023 |
|
|
Change |
|
2023 |
|
|
2023 |
|
|
Change |
|
|
(Dollars in
thousands) |
Unit sales volume: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCraft |
|
|
491 |
|
|
|
776 |
|
|
(36.7 |
) |
% |
|
|
985 |
|
|
|
1,557 |
|
|
(36.7 |
) |
% |
Crest |
|
|
365 |
|
|
|
776 |
|
|
(53.0 |
) |
% |
|
|
727 |
|
|
|
1,622 |
|
|
(55.2 |
) |
% |
Aviara |
|
|
28 |
|
|
|
34 |
|
|
(17.6 |
) |
% |
|
|
53 |
|
|
|
66 |
|
|
(19.7 |
) |
% |
Consolidated |
|
|
884 |
|
|
|
1,586 |
|
|
(44.3 |
) |
% |
|
|
1,765 |
|
|
|
3,245 |
|
|
(45.6 |
) |
% |
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCraft |
|
$ |
72,699 |
|
|
$ |
108,665 |
|
|
(33.1 |
) |
% |
|
$ |
148,535 |
|
|
$ |
221,685 |
|
|
(33.0 |
) |
% |
Crest |
|
|
17,051 |
|
|
|
36,665 |
|
|
(53.5 |
) |
% |
|
|
35,520 |
|
|
|
80,226 |
|
|
(55.7 |
) |
% |
Aviara |
|
|
9,731 |
|
|
|
13,858 |
|
|
(29.8 |
) |
% |
|
|
19,643 |
|
|
|
26,793 |
|
|
(26.7 |
) |
% |
Consolidated |
|
$ |
99,481 |
|
|
$ |
159,188 |
|
|
(37.5 |
) |
% |
|
$ |
203,698 |
|
|
$ |
328,704 |
|
|
(38.0 |
) |
% |
Net sales per unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCraft |
|
$ |
148 |
|
|
$ |
140 |
|
|
5.7 |
|
% |
|
$ |
151 |
|
|
$ |
142 |
|
|
6.3 |
|
% |
Crest |
|
|
47 |
|
|
|
47 |
|
|
— |
|
% |
|
|
49 |
|
|
|
49 |
|
|
— |
|
% |
Aviara |
|
|
348 |
|
|
|
408 |
|
|
(14.7 |
) |
% |
|
|
371 |
|
|
|
406 |
|
|
(8.6 |
) |
% |
Consolidated |
|
|
113 |
|
|
|
100 |
|
|
13.0 |
|
% |
|
|
115 |
|
|
|
101 |
|
|
13.9 |
|
% |
Gross margin |
|
|
18.8 |
% |
|
|
24.0 |
% |
|
(520) bps |
|
|
|
|
19.9 |
% |
|
|
25.6 |
% |
|
(570) 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, the adjustment includes
share-based compensation. 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 and share-based compensation.
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.
Beginning in the first quarter of fiscal 2023,
due to the effects of discontinued operations, as discussed above,
the Company's non-GAAP financial measures are presented on a
continuing operations basis, for all periods presented.
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 |
|
Six Months Ended |
|
|
December 31, |
|
|
% of Net |
|
January 1, |
|
|
% of Net |
|
December 31, |
|
|
% of Net |
|
January 1, |
|
|
% of Net |
|
|
2023 |
|
|
sales |
|
2023 |
|
|
sales |
|
2023 |
|
|
sales |
|
2023 |
|
|
sales |
Net
income from continuing operations |
|
$ |
5,927 |
|
|
6.0 |
% |
|
$ |
19,983 |
|
|
12.6 |
% |
|
$ |
13,003 |
|
|
6.4 |
% |
|
$ |
44,618 |
|
|
13.6 |
% |
Income tax expense |
|
|
1,652 |
|
|
|
|
|
6,433 |
|
|
|
|
|
3,602 |
|
|
|
|
|
13,609 |
|
|
|
Interest expense |
|
|
854 |
|
|
|
|
|
666 |
|
|
|
|
|
1,732 |
|
|
|
|
|
1,228 |
|
|
|
Interest income |
|
|
(1,415 |
) |
|
|
|
|
(621 |
) |
|
|
|
|
(2,766 |
) |
|
|
|
|
(772 |
) |
|
|
Depreciation and amortization |
|
|
2,758 |
|
|
|
|
|
2,610 |
|
|
|
|
|
5,484 |
|
|
|
|
|
5,211 |
|
|
|
EBITDA |
|
|
9,776 |
|
|
9.8 |
% |
|
|
29,071 |
|
|
18.3 |
% |
|
|
21,055 |
|
|
10.3 |
% |
|
|
63,894 |
|
|
19.4 |
% |
Share-based compensation |
|
|
9 |
|
|
|
|
|
745 |
|
|
|
|
|
948 |
|
|
|
|
|
1,865 |
|
|
|
Adjusted EBITDA |
|
$ |
9,785 |
|
|
9.8 |
% |
|
$ |
29,816 |
|
|
18.7 |
% |
|
$ |
22,003 |
|
|
10.8 |
% |
|
$ |
65,759 |
|
|
20.0 |
% |
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 |
|
|
Six Months Ended |
|
|
December
31, |
|
|
January
1, |
|
|
December
31, |
|
|
January
1, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
Net
income from continuing operations |
$ |
5,927 |
|
|
$ |
19,983 |
|
|
$ |
13,003 |
|
|
$ |
44,618 |
|
Income tax expense |
|
1,652 |
|
|
|
6,433 |
|
|
|
3,602 |
|
|
|
13,609 |
|
Amortization of acquisition intangibles |
|
450 |
|
|
|
462 |
|
|
|
912 |
|
|
|
924 |
|
Share-based compensation |
|
9 |
|
|
|
745 |
|
|
|
948 |
|
|
|
1,865 |
|
Adjusted Net Income before income taxes |
|
8,038 |
|
|
|
27,623 |
|
|
|
18,465 |
|
|
|
61,016 |
|
Adjusted income tax expense(a) |
|
1,768 |
|
|
|
6,353 |
|
|
|
4,062 |
|
|
|
14,034 |
|
Adjusted Net Income |
$ |
6,270 |
|
|
$ |
21,270 |
|
|
$ |
14,403 |
|
|
$ |
46,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per common share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
|
$ |
1.20 |
|
|
$ |
0.84 |
|
|
$ |
2.64 |
|
Diluted |
$ |
0.37 |
|
|
$ |
1.20 |
|
|
$ |
0.84 |
|
|
$ |
2.62 |
|
Weighted average shares used for the computation of(b): |
|
|
|
|
|
|
|
|
|
|
|
Basic Adjusted net income per share |
|
17,010,116 |
|
|
|
17,669,645 |
|
|
|
17,083,204 |
|
|
|
17,807,853 |
|
Diluted Adjusted net income per share |
|
17,091,633 |
|
|
|
17,774,329 |
|
|
|
17,158,124 |
|
|
|
17,903,027 |
|
(a) For fiscal 2024 and 2023, income tax
expense reflects an income tax rate of 22.0% and 23.0%,
respectively, for each period presented.
(b) 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 |
|
|
Six Months Ended |
|
|
December
31, |
|
|
January
1, |
|
|
December
31, |
|
|
January
1, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
Net
income from continuing operations per diluted share |
$ |
0.35 |
|
|
$ |
1.12 |
|
|
$ |
0.76 |
|
|
$ |
2.49 |
|
Impact of adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
0.09 |
|
|
|
0.36 |
|
|
|
0.21 |
|
|
|
0.76 |
|
Amortization of acquisition intangibles |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
0.05 |
|
Share-based compensation |
|
— |
|
|
|
0.04 |
|
|
|
0.06 |
|
|
|
0.10 |
|
Adjusted Net Income per diluted share before income taxes |
|
0.47 |
|
|
|
1.55 |
|
|
|
1.08 |
|
|
|
3.40 |
|
Impact of adjusted income tax expense on net income per diluted
share before income taxes(a) |
|
(0.10 |
) |
|
|
(0.35 |
) |
|
|
(0.24 |
) |
|
|
(0.78 |
) |
Adjusted Net Income per diluted share |
$ |
0.37 |
|
|
$ |
1.20 |
|
|
$ |
0.84 |
|
|
$ |
2.62 |
|
(a) For fiscal 2024 and 2023, income tax
expense reflects an income tax rate of 22.0% and 23.0%,
respectively, for each period presented.
Investor Contact:MasterCraft Boat Holdings,
Inc.Bobby PotterVice President of Strategy and Investor
RelationsEmail: investorrelations@mastercraft.com
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