MasterCraft Boat Holdings Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results
Intellectia.AI2024-08-29
MasterCraft Boat Holdings Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results
VONORE, Tenn., Aug. 29, 2024 (GLOBE NEWSWIRE) -- MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) announced its financial results for the fiscal 2024 fourth quarter and year ended June 30, 2024. The company's results denote continuing operations, following an agreed transfer of rights to the Aviara brand.
Key Financial Metrics:
| Metric | Q4 FY24 | Q4 FY23 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Revenue | $67.2M | $166.6M | -59.7% | $63.08M |
| EPS (GAAP) | -$0.49 | $1.32 | -137.1% | -$0.22 |
| Adjusted EPS (non-GAAP) | -$0.04 | $1.37 | -102.9% | |
| Adjusted EBITDA | $0.8M | $32.7M | -97.4% | |
| Adjusted EBITDA Margin | 1.3% | 19.6% | -18.3 pp |
MasterCraft Boat Holdings reported a significant decline in revenue and earnings per share (EPS) year-over-year, attributed primarily to lower unit volumes and unfavorable model mix, albeit positively offset by higher prices. The reported earnings exceeded Wall Street expectations for revenue but fell short in terms of EPS, exhibiting the challenges endured in the current economic landscape.
Revenue Performance by Segment:
| Segment | Q4 FY24 Revenue | Q4 FY23 Revenue | YoY Change |
|---|---|---|---|
| MasterCraft | $50.0M | $124.4M | -59.8% |
| Crest | $11.2M | $28.4M | -60.6% |
| Balise | $6.0M | $13.8M | -56.5% |
The revenue decline across the segments uncovers the strain faced by the luxury dayboats (MasterCraft), pontoon boats (Crest), and Balise lines. This broad decline aligns with an overarching decrease in unit volume and unfavorable model mix despite implemented higher pricing strategies.
Key Developments and Operational Highlights:
-
Planned Sale of Aviara Brand
:
- MasterCraft has agreed to transfer the rights to its Aviara brand to a third party, effective in the first quarter of fiscal 2025.
-
Share Repurchases
:
- $4.5 million in share repurchases during the fourth quarter.
- Total share repurchases of $16.3 million for the full year.
-
Cash and Debt Position
:
- $86.2 million in cash and investments.
- Total debt of $49.3 million at the fiscal year-end.
-
Non-cash Impairment Charges
:
- $9.8 million related to the Aviara segment led to an increase in operating expenses.
Executive Commentary:
CEO Brad Nelson remarked, "MasterCraft delivered results ahead of our latest expectations amidst a challenging economic environment and highly competitive retail landscape. We optimized profitability and cash flow through effective execution against our strategic priorities, including destocking field inventory, advancing consumer-centric initiatives, and returning substantial capital to shareholders."
Nelson further noted, "We prioritize dealer health and judiciously manage inventory levels, despite the elevated interest rates and market uncertainties. Our strong financial position provides flexibility for continued investment in innovation and strategic initiatives."
Dividends & Share Repurchase Programs:
No specific dividend announcements were made, but the company engaged in active share repurchase programs, totaling $16.3 million for the fiscal year.
Forward Guidance:
-
Full Year 2025
:
- Expected net sales between $265 million and $300 million.
- Adjusted EBITDA projected between $15 million and $26 million.
- Adjusted EPS outlook of $0.36 to $0.87.
- Capital expenditures are estimated at approximately $12 million.
-
Q1 2025
:
- Consolidated net sales forecasted at approximately $61 million.
- Adjusted EBITDA projected at $2 million.
- Adjusted EPS anticipated at $0.04.
Stock Price Movement:
Following the earnings release, MasterCraft Boat Holdings' stock experienced a notable decline, falling by 7.38%.
This comprehensive overview reflects the challenging economic landscape and operational decisions faced by MasterCraft Boat Holdings in fiscal 2024, providing a clear picture of its financial health and strategic outlook.
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