MasterCraft Boat Holdings, Inc. reported that consolidated net sales for the fourth quarter of fiscal 2024 amounted to $67.2 million, down $99.4 million, or 59.7 percent, from the fourth quarter of fiscal 2023. The decrease in net sales was reportedly due to lower unit volume and unfavorable model mix and options, partially offset by higher prices.

“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,” commented Brad Nelson, CEO of MasterCraft Boat Holdings, Inc. “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.”

Income Statement Summary
Gross margin declined 1,360 basis points year-over-year, said to be 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 $6.4 million for the fourth quarter, compared to the prior-year Q4 period. The increase in operating expenses was said to be primarily a result of non-cash impairment charges of $9.8 million recorded in the company’s Aviara segment, partially offset by decreased compensation related expenses, decreased product development expenses, and decreased information technology expenses.

Net loss from continuing operations was $8.1 million, or a loss of 49 cents per diluted share, for the fourth quarter, compared to net income from continuing operations of $23.1 million, or $1.32 per share, in the prior-year Q4 period.

Adjusted net loss was $0.6 million for the fourth quarter, or a loss of 4 cents per diluted share, compared to Adjusted net income of $23.9 million, or $1.37 per diluted share, in the prior-year Q4 period.

Adjusted EBITDA was $0.8 million for the fourth quarter, compared to $32.7 million in the prior-year Q4 period. Adjusted EBITDA margin was 1.3 percent for the fourth quarter, down from 19.6 percent for the prior-year Q4 period.

Sale of Aviara Brand
Subsequent to June 30, 2024, MasterCraft Boat Holdings, Inc. agreed to transfer rights to its 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. The company said it intends to classify Aviara as discontinued operations beginning in the first quarter of fiscal 2025.

The overview, commentary, and results provided herein relate to the company’s continuing operations.

“Our strong financial position provides us with the flexibility to pursue our strategic initiatives, including investment in innovation, product and brand development,” added CEO Nelson. “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.”

Fiscal 2024 Full-Year Summary
For fiscal 2024, MasterCraft Boat Holdings, Inc. reported consolidated net sales of $366.6 million, down $295.5 million from fiscal 2023.

  • Gross margin percentage declined 730 basis points year-over-year during fiscal 2024.
  • Operating expenses increased $6.7 million for fiscal 2024, compared to the prior year.
  • Net income from continuing operations was $8.7 million, compared to $90.5 million in the prior year
  • Diluted net income from continuing operations per share was 51 cents, compared to $5.09 for fiscal 2023.
  • Adjusted net income decreased to $20.9 million for fiscal 2024, or $1.22 per diluted share, compared to $95.0 million, or $5.35 per diluted share, in fiscal 2023.
  • Adjusted EBITDA was $32.9 million for fiscal 2024, compared to $131.5 million in fiscal 2023. Adjusted EBITDA margin was 9.0 percent of sales for fiscal 2024, down from 19.9 percent for the prior year.

Fiscal 2025 Outlook
For full year fiscal 2025, MasterCraft Boat Holdings, Inc. expects 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 36 cents and 87 cents.

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 EPS of approximately 4 cents per share.

“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,” Nelson concluded. “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.”

Image courtesy Mastercraft