Five-Stop Nationwide Tour Delivers World-Class Wakes and Waves Behind MasterCraft X24, Alongside Youth Rider Development, and Unforgettable On-Water Experiences VONORE, Tenn., Feb. 17, 2026 (GLOBE NEWSWIRE) -- MasterCraft Boat Company, a subsidiary of MasterCraft Boat Holdings and the best-selling towboat brand, in partnership with the World Wake Association (WWA), today announced the official dates, locations, and event details for the five-stop 2026 MasterCraft WWA Rider Experience. Building on the relaun ...

Group 1 - The proposed sale of Marine Products Corporation (NYSE: MPX) to MasterCraft Boat Holdings, Inc. (NasdaqGM: MCFT) is under investigation by former Attorney General of Louisiana Charles C. Foti, Jr. and the law firm Kahn Swick & Foti, LLC [1] - Shareholders of Marine Products will receive $2.43 in cash and 0.232 shares of MasterCraft common stock for each share of Marine Products they own as part of the transaction [1]

Core Insights - MasterCraft Boat reported fiscal second-quarter 2026 results that exceeded internal expectations, with consolidated net sales of $71.8 million, up 13.2% year-over-year, and a gross margin improvement to 21.6% [4][7][8] Financial Performance - Operating expenses increased to $12.8 million, up $2.1 million from the prior year, due to costs associated with a new ERP system, business development, and higher selling and marketing costs [1] - Adjusted net income was $4.7 million, or $0.29 per diluted share, compared to $1.7 million, or $0.10 per share, a year earlier [8] - Adjusted EBITDA rose to $7.5 million, up from $3.5 million last year, with an adjusted EBITDA margin improvement to 10.4% from 5.6% [8] Inventory and Demand - Pipeline inventory levels improved by approximately 25% year-over-year, with management maintaining a full-year assumption of a 5% to 10% decline in retail demand [9][10] - The company is entering the spring selling season with "right-sized" dealer inventories and a focus on innovation and cost efficiencies [3] Strategic Initiatives - MasterCraft announced a definitive agreement to combine with Marine Products Corporation, which is expected to broaden its brand portfolio and dealer footprint [4][6] - The transaction is valued at $232.2 million, with Marine Products shareholders receiving 0.232 shares of MasterCraft stock plus $2.43 in cash per share [6][18] - The combined company is expected to achieve approximately $6 million in annual cost savings and be accretive to adjusted EPS in fiscal 2027 [21] Future Guidance - Management raised full-year guidance for fiscal 2026 to $300–$310 million in sales, $36–$39 million in adjusted EBITDA, and $1.45–$1.60 in adjusted EPS, excluding the Marine Products deal [7][15] - For the fiscal third quarter of 2026, net sales are expected to be approximately $75 million, with adjusted EBITDA around $9 million and adjusted EPS of approximately $0.35 [15] Brand and Product Development - The MasterCraft brand is supported by premium products with higher margins, with new models like the X24, XStar, and the all-new X22 enhancing the product mix [12] - In the pontoon segment, operational improvements and new product introductions, such as the Halo model from the luxury brand Balise, are being emphasized [13][14]

Financial Performance - The company reported a net sales increase of $8.4 million (13.2%) for the second quarter of fiscal 2026 compared to the same period last year, driven by favorable model mix, higher unit volumes, and increased prices [72]. - Gross margin improved by 440 basis points to 21.6% in the second quarter of fiscal 2026, attributed to increased net sales and effective cost controls [74]. - Operating income surged by $2.5 million (1361.8%) in the second quarter of fiscal 2026, reaching $2.7 million, primarily due to increased net sales despite rising operating expenses [73]. - The MasterCraft segment achieved net sales of $61.7 million, a 12.1% increase, and operating income of $5.1 million, up 50.6% compared to the prior year [76]. - The Pontoon segment's net sales rose by $1.8 million (21.2%) in the second quarter, with unit sales volume increasing by 13.7% [78]. - Operating loss for Q2 and the first half of fiscal 2026 decreased by $0.8 million and $1.8 million, respectively, compared to the same periods last year, driven by increased net sales and effective cost controls [79]. - Adjusted Net Income for the first half of fiscal 2026 was $9.439 million, up from $3.626 million in the same period last year, with Adjusted Net Income per share increasing to $0.58 from $0.22 [86]. Cash Flow and Investments - Free Cash Flow for the first half of fiscal 2026 was $3.873 million, a decrease from $8.843 million in the same period last year [87]. - Cash and cash equivalents increased to $56.2 million as of December 28, 2025, up by $27.3 million from $28.9 million as of June 30, 2025 [91]. - Short-term investments decreased to $25.2 million as of December 28, 2025, down from $50.5 million as of June 30, 2025 [91]. - Net cash provided by operating activities for the six months ended December 28, 2025 was $8.6 million, a decrease from $13.4 million for the same period in 2024 [93][95]. - Net cash provided by investing activities was $20.9 million, down from $46.3 million in the prior year, with capital expenditures of $4.7 million focused on tooling and IT [94][96]. - Net cash used in financing activities was $2.3 million, primarily due to share repurchases, compared to $54.2 million in the previous year, which included $49.5 million for loan repayments [94][97]. - The Company experienced a net change in cash and cash equivalents from continuing operations of $27.1 million for the six months ended December 28, 2025, compared to $5.5 million in the prior year [92]. Debt and Financing - The company executed a Fifth Amendment to its Credit Agreement, reducing revolving commitments from $100 million to $75 million, maturing on February 5, 2031 [71]. - The Company had no long-term debt outstanding as of December 28, 2025, and maintained a borrowing capacity of $100.0 million under the Revolving Credit Facility [91]. - The Company authorized a share repurchase program of up to $50 million, repurchasing 116,370 shares for $2.3 million during the six months ended December 28, 2025 [92]. Tax and Accounting - The effective income tax rate for fiscal 2026 was 23.0%, compared to 20.0% for fiscal 2025 [88]. - There were no significant changes in critical accounting estimates or policies as of December 28, 2025 [99]. - The Company reported no material changes in market risk from those disclosed in the 2025 Annual Report [100]. Future Outlook - The company anticipates continued growth in net sales and operating income for the remainder of fiscal 2026, supported by effective cost management and market expansion strategies [72].

Group 1: Jobless Claims Data - Initial Jobless Claims reached 231K, exceeding expectations of 212K and the previous week's 209K, marking the highest level of 2026 so far [2] - Continuing Claims increased to 1.844 million from a revised 1.819 million the prior week, still favorable compared to the past six months where it ranged between 1.93 and 1.97 million [3] Group 2: Earnings Reports - Bristol Myers-Squibb (BMY) reported earnings of $1.26 per share, beating the Zacks consensus of $1.15, resulting in a 9.57% earnings beat, with shares up 1.7% [4] - ConocoPhillips (COP) missed earnings estimates by 6 cents, reporting $1.02 per share, leading to a 5.6% earnings miss and a 3.3% drop in shares [5] - Ralph Lauren (RL) posted earnings of $6.22 per share, surpassing expectations of $5.80 with a 7.2% positive surprise, although shares fell 6.5% due to declining annualized revenue growth [6] - Tapestry (TPR) reported earnings of $2.69 per share, exceeding the Zacks consensus of $2.20, with shares up 5.9% [7] - Other notable earnings beats included Hershey's (HSY) at +21.28% and ArcelorMittal (MT) at +53.57%, while MasterCraft Boat (MCFT) had the largest beat at +81.25%, despite a revenue miss leading to a 1.2% drop in shares [8]

Core Insights - MasterCraft Boat Holdings, Inc. reported revenue of $71.76 million for the quarter ended December 2025, marking a year-over-year increase of 13.2% and exceeding the Zacks Consensus Estimate of $69.87 million by 2.71% [1] - The company achieved an EPS of $0.29, significantly higher than the $0.10 reported a year ago, resulting in an EPS surprise of 77.59% compared to the consensus estimate of $0.16 [1] Financial Performance Metrics - MasterCraft's unit sales volume reached 409, slightly above the average estimate of 408, while the consolidated unit sales volume was 583, exceeding the average estimate of 563 [4] - The net sales per unit for MasterCraft was reported at $151.00, matching the average estimate, while the consolidated net sales per unit was $123.00, slightly below the average estimate of $125.05 [4] - Net sales for MasterCraft amounted to $61.74 million, surpassing the average estimate of $61.55 million, reflecting a year-over-year change of 12.1%, while net sales for Pontoon reached $10.02 million, exceeding the average estimate of $8.75 million with a year-over-year increase of 21.2% [4] Stock Performance - Over the past month, shares of MasterCraft Boat Holdings, Inc. have returned 12.2%, significantly outperforming the Zacks S&P 500 composite, which saw a change of 0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - The law firm Halper Sadeh LLC is investigating the fairness of the merger between MasterCraft Boat Holdings, Inc. and Marine Products Corporation for MasterCraft shareholders [1] - Upon completion of the merger, MasterCraft shareholders will own 66.5% of the combined company [1]

Core Viewpoint - MasterCraft Boat Holdings, Inc. has announced a definitive agreement to combine with Marine Products Corporation, enhancing its marine platform through complementary brands and an expanded dealer network [1][14][20] Financial Performance - In Q2, net sales increased by $8.4 million or 13% year-over-year, reaching $71.8 million, driven by favorable model mix, higher volumes, and pricing [4][10] - Adjusted EBITDA rose to $7.5 million, compared to $3.5 million in the prior year, with an adjusted EBITDA margin improvement of 480 basis points to 10.4% [11][12] - The company raised its full-year guidance for net sales, earnings, and adjusted earnings per share, expecting consolidated net sales between $300 million and $310 million for fiscal 2026 [5][12] Product Development and Innovation - MasterCraft is focusing on innovation with new product launches, including the redesigned X24 and Xstar, which have generated strong demand signals [6][7] - The combination with Marine Products is expected to enhance product development capabilities and accelerate the launch of new models [14][17] Strategic Benefits of the Combination - The merger will create a stronger, diversified marine platform with a combined dealer network of over 500 dealers globally, improving market entry efficiency [16][20] - The transaction is expected to deliver approximately $6 million in annual cost savings by eliminating Marine Products' public company costs and corporate overhead [24] - The combined company will maintain distinct brand identities while expanding product offerings across various price points and boat lengths [15][18] Market Opportunities - The merger allows MasterCraft to access a broader market, including recreational and sport fishing segments, with an estimated addressable market of $12 billion [50][58] - The integration is projected to unlock additional revenue and cost synergies through shared innovation platforms and operational efficiencies [25][29] Transaction Details - Marine Products Corporation shareholders will receive 0.232 shares of MasterCraft stock and $2.43 in cash per share, totaling $86 million in cash consideration [20][21] - The transaction has been unanimously approved by the boards of both companies and is expected to close in calendar 2026, subject to regulatory approvals [21][22]

Financial Data and Key Metrics Changes - Q2 net sales increased by $8.4 million or 13% year-over-year, reaching $71.8 million [7][13] - Adjusted EBITDA rose nearly $4 million, with an adjusted EBITDA margin improvement of approximately 480 basis points to 10.4% [7][15] - Adjusted net income for the quarter was $4.7 million, or $0.29 per diluted share, compared to $1.7 million, or $0.10 per share in the prior year [14] - Full-year guidance for consolidated net sales is now expected to be between $300 million and $310 million, with adjusted EBITDA between $36 million and $39 million [15][16] Business Line Data and Key Metrics Changes - The MasterCraft segment is experiencing momentum with new premium products and strong demand signals from boat shows [9][10] - The pontoon segment is focused on operational improvements and enhancing margin performance, with the luxury brand Balise launching the new Halo model [11][12] Market Data and Key Metrics Changes - Retail demand is expected to be down 5%-10%, but recent trends are tracking toward the better end of that range for the MasterCraft segment [8] - Early boat show results have shown strong engagement, particularly in several key cities [10] Company Strategy and Development Direction - The company announced a definitive agreement to combine with Marine Products Corporation, aiming to strengthen its marine platform through complementary brands and expanded dealer networks [6][18] - The combination is expected to unlock growth opportunities and enhance operational efficiencies, with a focus on maintaining brand identities and quality [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current momentum and the ability to navigate the dynamic market environment [19] - The company is committed to disciplined production management and capital allocation strategies focused on value creation [19][28] Other Important Information - The transaction with Marine Products Corporation is expected to close in Q2 2026, subject to regulatory approvals [26] - The combined company will maintain a strong balance sheet with no debt and significant liquidity post-transaction [27] Q&A Session Summary Question: Can you elaborate on the additional synergies from the transaction? - Management highlighted opportunities in innovation platforms, manufacturing best practices, and expanded distribution as key areas for synergies [31][34] Question: What is the current state of inventory management? - Management indicated that restocking is largely over, and both companies are in good shape regarding inventory levels [35][36] Question: How did the pricing for the transaction come about? - Management explained that the mix of cash and stock was appealing to Marine Products, allowing them to participate in the upside of the combined entity [39][41] Question: What are the expectations for shifts in Marine Products' model mix post-integration? - Management noted that there are plans to enhance the model mix and accelerate innovation, leveraging the strengths of both companies [49][50] Question: How will the combined dealer network expand distribution? - Management acknowledged that while there are opportunities for cross-synergy, it will be market-specific and will require careful planning [51][82] Question: What is the outlook for the Balise brand post-transaction? - Management confirmed that the Balise brand will continue to expand, with strong consumer interest and dealer feedback [84][86]

Financial Data and Key Metrics Changes - Q2 net sales increased by $8.4 million or 13% year-over-year, reaching $71.8 million [7][13] - Adjusted EBITDA rose by nearly $4 million, with an adjusted EBITDA margin improvement of approximately 480 basis points to 10.4% [7][15] - Adjusted net income for the quarter was $4.7 million, or $0.29 per diluted share, compared to $1.7 million, or $0.10 per share in the prior year [14] - Full-year guidance for consolidated net sales is now expected to be between $300 million and $310 million, with adjusted EBITDA between $36 million and $39 million [15][16] Business Line Data and Key Metrics Changes - Within the MasterCraft segment, there is growing momentum with the introduction of new premium products, including the redesigned X24 and XStar, which are generating strong demand signals [9][10] - The pontoon segment is executing operational improvements and enhancing margin performance, with the luxury brand Balise launching the new Halo model [11][12] Market Data and Key Metrics Changes - Retail demand is expected to be down 5%-10%, but recent trends are tracking toward the better end of that range for the MasterCraft segment [8] - Early boat show results have been encouraging, with strong engagement reported at several key shows [10] Company Strategy and Development Direction - The company announced a definitive agreement to combine with Marine Products Corporation, aiming to strengthen its marine platform through complementary brands and an expanded dealer network [6][18] - The combination is expected to unlock growth opportunities and enhance product development and manufacturing capabilities [18][20] - The focus remains on maintaining brand identities while expanding the product lineup across various price points and boat lengths [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current momentum and the ability to navigate the dynamic market environment through disciplined inventory and production management [19] - The company is confident that the combination with Marine Products Corporation will create significant value and growth opportunities [18][28] Other Important Information - The transaction is expected to close in Q2 2026, subject to regulatory approvals and shareholder approval [26] - The combined company will maintain a strong balance sheet with no debt and significant liquidity post-transaction [27] Q&A Session Summary Question: Can you elaborate on the additional synergies from the transaction? - Management highlighted opportunities in innovation platforms, manufacturing best practices, and expanded distribution as key areas for synergies [31][34] Question: What is the current state of inventory management? - Management indicated that restocking is largely over, and both companies are in good shape regarding inventory levels [35][36] Question: How did the acquisition price compare to Marine Products' closing price? - Management explained that the mix of cash and stock was appealing to Marine Products, allowing them to participate in the upside of the combined entity [39][41] Question: What are the expectations for shifts in Marine Products' model mix post-integration? - Management noted that there are plans to enhance the model mix and accelerate innovation, leveraging the strengths of both companies [49][50] Question: How will the combined dealer network expand distribution? - Management acknowledged that while there are opportunities for cross-synergy, it will be market-specific and will require careful planning [51][82] Question: What is the outlook for the Balise brand post-acquisition? - Management confirmed that the Balise brand will continue to expand, with strong consumer interest and dealer feedback [84][86]