Core Insights - MasterCraft Boat Company has expanded its dealer network by partnering with Rinker's Boat World in Houston, Texas, enhancing customer access to its premium towboats [1][4] - Rinker's Boat World, established in 1978, aligns with MasterCraft's commitment to quality and customer experience, offering a full-service dealership with on-water demos and support [2][4] - The partnership aims to strengthen MasterCraft's presence in high-demand regions, providing local customers with superior service and access to top-tier towboats [4] Company Overview - MasterCraft is recognized as a leading innovator in the design and manufacturing of premium performance sport boats, with a history of over 50 years in the industry [6] - MasterCraft Boat Holdings, Inc. operates under three brands: MasterCraft, Crest, and Balise, and is headquartered in Vonore, TN [7]

Core Insights - MasterCraft Boat Company has announced a new partnership with Rinker's Boat World, which will serve as an authorized dealer in the Houston area, enhancing customer access to MasterCraft's premium boats [1][4] - Rinker's Boat World is committed to providing a full-service experience, including on-water demonstrations and comprehensive support for MasterCraft's complete line of towboats [2][4] - The partnership aims to expand MasterCraft's dealer network in high-demand regions, ensuring more customers can access top-tier towboats and superior service [4] Company Overview - MasterCraft is recognized as a leading innovator and manufacturer of premium performance sport boats, with a history of over 50 years in the industry [6] - The company operates under MasterCraft Boat Holdings, Inc., which also includes the brands Crest and Balise, and is headquartered in Vonore, TN [7]

Core Insights - MasterCraft Boat Company is returning as an official sponsor of the 2025 American Century Championship (ACC) in Lake Tahoe, showcasing its premium towboat lineup and engaging in various high-impact activations [1][2] Sponsorship and Activations - The company has been a sponsor for six years and will feature flagship models XStar 23 and XStar 25 during the event [1] - Key activations include a $300,000 hole-in-one prize, a national sweepstakes in collaboration with Travis Mathew, Ogio, and Callaway, and the philanthropic initiative "Surf to Save Lives" supporting St. Jude Children's Research Hospital [1][6] Prize and Promotions - The hole-in-one challenge at Hole 12 offers a fully loaded 2024 MasterCraft X24, valued at over $300,000 [3] - The X24 features advanced technology and luxury amenities, emphasizing its performance and design [4] Philanthropic Initiatives - "Surf to Save Lives" will track minutes logged by celebrities and athletes riding behind MasterCraft boats, contributing to a $75,000 donation commitment [6] - Childhood cancer survivor and MasterCraft athlete Alexa Score will lead demonstrations and support fundraising efforts [7] Product Display and Partnerships - MasterCraft will display the XStar 23 and XStar 25 at Hole 17, alongside a Chevrolet Silverado, highlighting the partnership with General Motors [8][9] - The XStar models include innovative features such as the Z100 tower and MAAX Audio for enhanced performance [9] Post-Event Activities - Following the ACC, MasterCraft will host two on-water activations in Tahoe, allowing attendees to experience the latest boat lineup [10][13] Company Background - MasterCraft Boat Holdings, Inc. is a leading innovator in premium recreational powerboats, with a history of industry-leading innovation since its founding in 1968 [11][12]

Group 1 - The individual has nearly two decades of experience in the logistics sector and a decade in stock investing and macroeconomic analysis, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] - Since 2014, the individual has been trading on the Philippine stock market, initially investing in blue-chip companies and later diversifying across various industries and market capitalizations [1] - In 2020, the individual entered the US market after gaining experience through a relative's trading account, leading to the decision to open a personal account and write for Seeking Alpha to share knowledge [1] Group 2 - The individual has holdings in US banks, hotels, shipping, and logistics companies, and has been using analyses from Seeking Alpha to compare with those conducted in the Philippine market [1]

Group 1 - MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) is currently facing a weak sales environment due to persistent high interest rates and declining consumer confidence, which adds to market uncertainty [1] - Despite the challenging conditions, the company has made significant progress in improving dealer inventory health [1] Group 2 - The investment philosophy highlighted focuses on identifying mispriced securities by understanding the underlying drivers of a company's financials, often revealed through a DCF model valuation [1]

Core Points - MasterCraft Boat Company has launched its third year of the Surf to Save Lives campaign, aiming to raise funds for St. Jude Children's Research Hospital, with a pledge of $75,000 in 2025, bringing the total raised since 2023 to $225,000 [1][2] - The campaign allows boaters nationwide to log their on-water activities through the MasterCraft Connect app, with MasterCraft donating $1 for every minute logged, up to a maximum of $75,000 [3] - The initiative is open to all boaters, not just MasterCraft owners, encouraging widespread participation in support of St. Jude's mission [3] Company Overview - MasterCraft is a leading innovator, designer, manufacturer, and marketer of premium performance sport boats, with a history of industry-leading innovation since its founding in 1968 [8][9] - The company is headquartered in Vonore, TN, and operates under three brands: MasterCraft, Crest, and Balise [9][10] Philanthropic Efforts - Over the past two years, MasterCraft has donated a total of $150,000 to St. Jude, reaching the maximum annual donation of $75,000 each year [2] - The campaign is supported by Alexa Score, a childhood cancer survivor and professional wakeboarder, who serves as the official spokesperson [5][6] - MasterCraft employees also have the opportunity to contribute through a dedicated Employee Giving Program [6]

Sales Performance - Net sales decreased by $8.0 million (9.5%) in Q3 fiscal 2025 compared to the same period last year, primarily due to planned lower unit volumes[86]. - For the first nine months of fiscal 2025, net sales decreased by $63.3 million (23.6%) compared to the prior year, driven by planned lower unit volumes and unfavorable model mix[87]. - Net sales for the MasterCraft segment decreased by $5.6 million (8.0%) in Q3 2025 compared to Q3 2024, and by $43.5 million (19.9%) in the first nine months of 2025 compared to the same period in 2024[90][91]. - The Pontoon segment reported a net sales decrease of $2.5 million (17.3%) in Q3 2025 and $19.9 million (40.0%) in the first nine months of 2025 compared to the same prior-year periods, driven by lower unit volumes and increased dealer incentives[93][94]. Unit Sales Volume - Consolidated unit sales volume decreased by 147 units (19.2%) in Q3 and 755 units (30.5%) in the first nine months of fiscal 2025 compared to the prior year[85]. - MasterCraft unit sales volume decreased by 46 units (9.8%) in Q3 and 257 units (17.7%) in the first nine months of fiscal 2025[85]. - Pontoon unit sales volume decreased by 101 units (33.9%) in Q3 and 498 units (48.6%) in the first nine months of fiscal 2025[85]. Financial Metrics - Gross margin percentage declined by 250 basis points in Q3 and 470 basis points in the first nine months of fiscal 2025, attributed to changes in sales price, material and overhead inflation, and lower cost absorption due to decreased production volume[88]. - Adjusted EBITDA for Q3 2025 was $7.5 million (9.9% margin), down from $11.7 million (13.9% margin) in Q3 2024, while for the first nine months of 2025, it was $14.9 million (7.3% margin) compared to $38.6 million (14.4% margin) in the same period of 2024[99]. - Adjusted Net Income for Q3 2025 was $5.0 million, or $0.31 per share, compared to $8.5 million, or $0.51 per share, in Q3 2024[99]. - Income from continuing operations per diluted share for the three months ended March 30, 2025, was $0.23, a decrease of 32.4% from $0.34 for the same period in 2024[100]. - Adjusted Net Income per diluted share for the nine months ended March 30, 2025, was $0.53, compared to $1.65 for the same period in 2024, reflecting a decrease of 67.8%[100]. Operating Expenses - Operating expenses decreased by $1.2 million (9.3%) in Q3 and $1.8 million (5.1%) in the first nine months of fiscal 2025, compared to the prior year, as previous costs were elevated due to CEO transition and related share-based compensation[89]. Segment Performance - Operating income for the MasterCraft segment fell by $1.8 million (23.9%) in Q3 2025 and by $15.3 million (54.4%) in the first nine months of 2025 compared to the prior-year periods, primarily due to decreased net sales and increased materials and overhead inflation[92]. - The operating loss for the Pontoon segment increased by $0.8 million (94.2%) in Q3 2025 and by $7.4 million (5584.2%) in the first nine months of 2025 compared to the prior-year periods, attributed to decreased net sales and increased labor and materials costs[94]. Cash Flow and Debt - Cash and cash equivalents increased to $28.5 million as of March 30, 2025, up by $21.1 million from $7.4 million as of June 30, 2024[103]. - Total debt as of June 30, 2024, was $49.3 million, with no amounts outstanding as of March 30, 2025[103]. - Net cash provided by operating activities for the nine months ended March 30, 2025, was $18.5 million, down from $23.6 million for the same period in 2024[106][110]. - Net cash provided by investing activities was $35.0 million for the nine months ended March 30, 2025, compared to $1.8 million for the same period in 2024[108][111]. - Net cash used in financing activities was $55.0 million for the nine months ended March 30, 2025, which included $49.5 million used to repay outstanding borrowings of the Term Loan[109]. - As of March 30, 2025, the company had $100.0 million of available borrowing capacity under the Revolving Credit Facility[104]. - The company did not have any off-balance sheet financing arrangements as of March 30, 2025[112]. Leadership Changes - A leadership transition is scheduled with Timothy M. Oxley retiring as CFO effective December 31, 2025, and Scott Kent succeeding him on July 1, 2025[82]. Tariff Impact - The company anticipates a modest impact from recently imposed U.S. tariffs on fiscal 2025 costs, while closely monitoring the evolving tariff landscape[83]. Strategic Adjustments - The company continues to adjust its strategies in response to market conditions, including changes in dealer incentives and model mix[91][93]. - The company completed the Aviara Transaction and Aviara Facility Sale in October and December 2024, respectively, with results from these units reported as discontinued operations[81].

Core Insights - MasterCraft Boat Holdings, Inc. reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, but down from $0.37 per share a year ago, indicating an earnings surprise of 66.67% [1] - The company achieved revenues of $75.96 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.46%, but down from $95.71 million year-over-year [2] - MasterCraft has consistently surpassed consensus EPS estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $80.63 million, and for the current fiscal year, it is $0.75 on revenues of $284.3 million [7] - The estimate revisions trend for MasterCraft is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Leisure and Recreation Products industry, to which MasterCraft belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact MasterCraft's stock performance [5]

MasterCraft Boat (MCFT) Q3 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Scott Kent - VP - Finance & Incoming CFOBrad Nelson - CEO & DirectorTim Oxley - Vice President, Chief Financial Officer, Treasurer and SecretaryMartin Mitela - Senior Equity Research AssociateAdam Fox - Equity Research AssociateEric Wold - Executive Director, Equity Research Conference Call Participants Craig Kennison - Director of Research Operations & Senior Research AnalystAnna Glaessgen - Senior Research Analyst ...

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $76 million, a decrease of $8 million or 10% from the prior year, primarily due to lower unit sales volume, partially offset by a favorable mix [16][17] - Gross margin was 20.8%, down from 23.3% in the prior year, attributed to lower cost absorption from production decreases [17] - Adjusted net income for the quarter was $5 million or $0.30 per diluted share, compared to $8.5 million or $0.50 per diluted share in the prior year [18] - Adjusted EBITDA was $7.5 million, down from $11.7 million in the prior year, with an adjusted EBITDA margin of 9.9% compared to 13.9% [19] Business Line Data and Key Metrics Changes - Within the MasterCraft segment, production of the premium X Star model ramped up, contributing positively to brand momentum [8][13] - The pontoon segment, including Crest and Valise brands, faced challenges with dealer inventories, leading to a 40% year-over-year unit reduction [15] Market Data and Key Metrics Changes - Dealer inventories across brands decreased by 30% over the last year, and more than 45% compared to pre-pandemic levels in fiscal 2019 [9] - The company anticipates a modest impact from tariffs on fiscal 2025 costs, while closely monitoring demand implications [10] Company Strategy and Development Direction - The company is focused on disciplined cost, cash, and pipeline management, with a strong emphasis on product development and dealer support [8][12] - Capital allocation priorities remain disciplined, with a solid balance sheet and no debt, allowing for share repurchase programs to return capital to shareholders [11][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic headwinds and tariff uncertainty affecting the marine sector, leading to a revision of full-year guidance [9][21] - Despite challenges, management remains confident in achieving inventory reduction targets and is optimistic about the upcoming selling season [9][22] Other Important Information - Tim Oxley, the CFO, will retire in June, with Scott Kent set to succeed him, reflecting careful succession planning [5][6] - The X Star model received the National Marine Manufacturers Association Innovation Award, highlighting the company's focus on quality and innovation [12] Q&A Session Summary Question: Can we quantify the tariff impacts and potential price increases for model year '26? - Management indicated that the impact of tariffs is evolving and has not yet determined specific pricing effects, but expects some inflationary impact [26] Question: How is retail performing, and does the previous down 5% to 10% estimate change? - Management expects retail to trend closer to 10% down, with more clarity expected in June [28] Question: What is the direct and indirect exposure to tariffs? - Management has discussions with suppliers to understand costs and expects a modest impact in Q4, with ongoing monitoring [33][34] Question: What is the status of dealer network expansion? - Management reported progress in expanding the dealer network, particularly in Texas and Utah, which are key markets [36] Question: How is the dealer network's balance sheet performing? - Management expressed satisfaction with dealer health, noting no significant dealer failures despite the challenging environment [38] Question: What is the early response to the Belize product? - Management anticipates net sales around $10 million for fiscal '25, with positive dealer interest and response [42][45] Question: Any trends observed at retail in April and May? - Management noted that while retail momentum is not yet vibrant, there are signs of improvement, particularly with premium buyers [51][52]