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 [17] - Gross margin was 20.8%, down from 23.3% in the prior year, attributed to lower cost absorption from production decreases [18] - 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] - The company ended the quarter with nearly $167 million in total liquidity, including $67 million in cash and short-term investments, and $100 million available under its revolving credit facility, with no debt [19] Business Line Data and Key Metrics Changes - In the MasterCraft segment, production of the premium X Star model ramped up, contributing positively to brand momentum and dealer support [14] - The pontoon segment, including Crest and Valise brands, faced challenges with dealer inventories, leading to a 40% year-over-year unit reduction [16] Market Data and Key Metrics Changes - Dealer inventories across brands decreased by 30% over the past year, and more than 45% compared to the pre-pandemic period in fiscal 2019 [10] - The company anticipates a modest impact from tariffs on fiscal 2025 costs, while closely monitoring broader demand implications [11] Company Strategy and Development Direction - The company is focused on disciplined cost, cash, and pipeline management, with a renewed emphasis on product development and prudent destocking [9] - Capital allocation priorities remain disciplined, with a solid balance sheet and a focus on share repurchase programs to return capital to shareholders [12] - The company is exploring growth opportunities within its distribution network, particularly in key markets like Dallas and Southern Utah [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic headwinds and tariff uncertainty impacting the marine sector, leading to a revision of full-year guidance [10] - Despite challenges, management remains confident in achieving inventory reduction targets and maintaining dealer health [10] - The company is optimistic about retail momentum, particularly with premium buyers, and is preparing for the summer selling season [50] Other Important Information - Tim Oxley, the CFO, will retire in June, with Scott Kent set to succeed him [5][6] - The X Star model received the National Marine Manufacturers Association Innovation Award, highlighting the company's focus on quality and innovation [13] Q&A Session Summary Question: Can you 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 do you view retail trends and dealer health? - Management expects retail to trend closer to a 10% decline and is pleased with the health of dealers, noting no significant dealer failures [27][37] Question: What is the status of the Belize product and its revenue expectations? - The Belize product is in low-rate production, with anticipated net sales around $10 million for fiscal '25, and positive early responses from dealers [41][44] Question: How will you approach pricing in light of tariffs? - The company aims to balance volume, price, and cost, considering a variable pricing model due to tariff variability [62][64]

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]

Financial Performance - Q3 2025 - Net sales reached $76 million[18], a decrease of 10% compared to Q3 FY24[20] - Adjusted EBITDA amounted to $75 million[18], down from $117 million in Q3 FY24[20] - Adjusted diluted net income per share was $030[18], a decrease from $050 in Q3 FY24[20] Financial Performance - YTD Q3 2025 - YTD net sales totaled $2047 million[22], a 24% decrease from FY24[22] - YTD Adjusted EBITDA was $149 million[22], down from $386 million in FY24[22] - YTD Adjusted Diluted Net Income per Share was $053[22], down from $112 in FY24[22] Balance Sheet & Capital Allocation - The company maintains a strong financial position with approximately $67 million in cash and investments and no debt[18] - The company returned $5 million of capital YTD through a share repurchase program[18] - The company authorized a $50 million share repurchase program in July 2023, with approximately $30 million still available[26] Fiscal Year 2025 Guidance - The company refines fiscal 2025 guidance with net sales of approximately $275 million[18] - The company projects adjusted EBITDA of approximately $20 million[18] - The company anticipates adjusted earnings per share of approximately $071[18]

Financial Performance - Consolidated net sales for Q3 fiscal 2025 were $76.0 million, a decrease of $8.0 million or 9.5% compared to Q3 fiscal 2024[4] - Income from continuing operations was $3.8 million, or $0.23 per diluted share, down from $5.7 million, or $0.34 per diluted share in the prior-year period[7] - Adjusted EBITDA for Q3 fiscal 2025 was $7.5 million, down $4.2 million from $11.7 million in the prior-year period, with an adjusted EBITDA margin of 9.9% compared to 13.9%[8] - Adjusted Net Income for Q3 fiscal 2025 was $5.0 million, or $0.30 per diluted share, compared to $8.5 million, or $0.50 per diluted share in the prior-year period[7] - Adjusted Net Income per diluted share for Q1 2025 is $0.30, down from $0.50 in Q1 2024, representing a decrease of 40%[31] - Income from continuing operations per diluted share for Q1 2025 is $0.23, compared to $0.34 in Q1 2024, a decline of approximately 32.4%[31] - Adjusted Net Income per diluted share for the nine months ended March 30, 2025, is $1.65, compared to $2.07 for the same period in 2024, a decrease of 19.2%[31] - The company reported an adjusted net income per diluted share before income taxes of $0.37 for Q1 2025, compared to $0.63 for Q1 2024, a decrease of 41.3%[31] Cash Flow and Assets - Operating cash flow year-to-date was $18.5 million despite low cycle production volumes, with cash and investments totaling $66.5 million[3] - Total current assets decreased from $155,074 million in June 30, 2024 to $123,984 million in March 30, 2025, a decline of 20.0%[21] - The company maintains a debt-free balance sheet with $100 million available on the revolving credit facility[3] - The company reported a total liabilities decrease from $134,105 million in June 30, 2024 to $79,619 million in March 30, 2025, a reduction of 40.5%[21] - Retained earnings increased from $123,620 million in June 30, 2024 to $124,966 million in March 30, 2025, reflecting a growth of 1.1%[21] Sales and Production - Planned decrease in production contributed to approximately 30% lower dealer inventory levels compared to the prior-year[5] - Consolidated unit sales volume dropped by 19.2% year-over-year, from 766 units in March 31, 2024 to 619 units in March 30, 2025[22] - Consolidated net sales decreased by 9.5% from $83,977 million in March 31, 2024 to $75,960 million in March 30, 2025[22] - MasterCraft unit sales volume fell by 9.8% from 468 units in March 31, 2024 to 422 units in March 30, 2025[22] Margins and Expenses - Gross margin percentage declined by 250 basis points due to changes in sales price, material and overhead inflation, and lower cost absorption from decreased production volume[6] - Adjusted EBITDA for the three months ended March 30, 2025 was $7,488 million, down 35.0% from $11,662 million in the same period of 2024[30] - Gross margin declined from 23.3% in March 31, 2024 to 20.8% in March 30, 2025, a decrease of 250 basis points[22] - Operating expenses decreased by $1.2 million in Q3 fiscal 2025 compared to the prior-year period, primarily due to reduced costs from CEO transition and related share-based compensation[6] Guidance and Future Outlook - The company expects full-year fiscal 2025 consolidated net sales to be approximately $275 million, with Adjusted EBITDA of approximately $20 million and Adjusted Earnings per share of approximately $0.71[10] - The company did not provide forward-looking guidance for certain financial measures on a GAAP basis due to unpredictability of certain items[28] Tax and Transition Costs - The impact of income tax expense on adjusted net income per diluted share was $(0.07) for Q1 2025, compared to $(0.13) for Q1 2024[31] - The income tax expense reflects an income tax rate of 18.0% for fiscal 2025, down from 20.0% for fiscal 2024[32] - The company incurred $0.07 per diluted share in CEO transition and organizational realignment costs in Q1 2024[31] - Share-based compensation impacted adjusted net income by $0.05 per diluted share in Q1 2025, down from $0.09 in Q1 2024[31]

Overview - MasterCraft Boat Holdings, Inc. reported financial results for the third quarter of fiscal 2025, ending March 30, 2025, with a focus on continuing operations excluding the former Aviara segment [1][4]. Financial Performance - Consolidated net sales for the third quarter were $76.0 million, a decrease of $8.0 million or 9.5% from the same period in fiscal 2024, primarily due to planned lower unit volumes to align dealer inventories with retail demand [4][10]. - Gross margin percentage declined by 250 basis points compared to the prior-year period, attributed to changes in sales price, material and overhead inflation, and lower cost absorption due to decreased production volume [5][24]. - Income from continuing operations was $3.8 million, or $0.23 per diluted share, down from $5.7 million, or $0.34 per diluted share in the prior-year period [6][10]. - Adjusted net income was $5.0 million, or $0.30 per diluted share, compared to $8.5 million, or $0.50 per diluted share in the prior-year period [6][10]. - Adjusted EBITDA was $7.5 million, down from $11.7 million in the prior-year period, with an adjusted EBITDA margin of 9.9%, down from 13.9% [7][10]. Operational Insights - The company maintained a disciplined approach to capital allocation, achieving operating cash flow of $18.5 million year-to-date despite low cycle production volumes [3][10]. - Cash and investments totaled $66.5 million, with $100 million available on the revolving credit facility and no outstanding debt, indicating a robust, debt-free balance sheet [10][11]. Outlook - The company revised its full-year guidance, now expecting consolidated net sales of approximately $275 million, adjusted EBITDA of approximately $20 million, and adjusted earnings per share of approximately $0.71 for fiscal 2025 [11][10]. - Capital expenditures are expected to be approximately $9 million for the year [11].

Core Insights - MasterCraft Boat Company has announced a strategic partnership with Performance Marine Watersports to enhance customer experience and service capabilities in the Lake of the Ozarks region [1][2][3] Group 1: Partnership Details - The partnership positions MasterCraft as a leader in the towboat category and aims to deliver best-in-class experiences for current and future MasterCraft owners [1] - Performance Marine Watersports is the first dedicated watersports dealership at Lake of the Ozarks, expanding its offerings with MasterCraft models designed for various water conditions [2] Group 2: Customer Experience - MasterCraft emphasizes the importance of exceptional ownership experiences, aligning with Performance Marine Watersports' commitment to personalized, high-quality service [3] - The dealership provides white-glove service with every boat purchase and offers convenient on-water demonstrations [3] Group 3: Future Plans - Performance Marine Watersports plans to host more events and owner reunions, aiming to grow the MasterCraft family in the region [4]

Core Points - MasterCraft Boat Holdings, Inc. will host a live webcast for its fiscal third quarter 2025 earnings conference call on May 7, 2025, at 8:30 a.m. EDT [1] - The call will feature discussions by the CEO, CFO, and Vice President of Finance regarding the Company's financial results [1] - A pre-market earnings release will be issued prior to the call on the same day [1] Access Information - Participants can access the conference call live via the Company's investor website by clicking on the webcast icon [2] - Telephone participants must register in advance to receive a confirmation email with dial-in details, including a unique passcode and registrant ID [2] - A replay of the conference call and webcast will be archived on the Company's website [2] Company Overview - MasterCraft Boat Holdings, Inc. is headquartered in Vonore, Tennessee, and is a leading innovator, designer, manufacturer, and marketer of recreational powerboats [3] - The Company operates through three brands: MasterCraft, Crest, and Balise [3] - Additional information about the Company and its brands can be found on its investor and brand websites [3]

Core Viewpoint - MasterCraft Boat Company is expanding its operations by opening a new location in St. George, Utah, to enhance service accessibility for existing customers and attract new ones [1][2][5]. Group 1: Expansion Details - The new MasterCraft Boats of Utah location in St. George aims to provide a more convenient service option for customers, reducing travel time from Salt Lake City [1]. - St. George is identified as an ideal market due to its thriving boating community and favorable climate for year-round boating activities [2]. Group 2: Company Reputation and Experience - MasterCraft Boats of Utah has been a trusted dealer since 1999, recognized for its innovation and customer satisfaction, having received multiple awards over the years [3]. - The dealership's team has over 100 years of combined industry experience, emphasizing their commitment to expert guidance and premium service [3]. Group 3: Services Offered - The new location will provide a range of services including maintenance, repairs, a pro shop, on-water demonstrations, customer events, and boat storage [4]. - The staff will consist of industry leaders and MasterCraft experts, positioning the location as a premier destination for boaters in southern Utah [4]. Group 4: Marketing and Community Engagement - To introduce the brand to the local market, MasterCraft Boats of Utah plans grand opening celebrations, including demo days and community meet-and-greets [5]. - A comprehensive digital advertising campaign will be launched to increase awareness, alongside prominent signage to attract boating enthusiasts [5]. Group 5: Market Positioning - This expansion is part of MasterCraft's strategy to strengthen its market share in key regions, ensuring customers have access to high-quality boats and superior service [6]. - The company continues to focus on delivering an exceptional on-water experience, reinforcing its position as the leading towboat brand [6].

Core Viewpoint - MasterCraft Boat Company is expanding its dealership presence into St. George, Utah, to enhance service accessibility and cater to the growing boating community in the region [1][2][6] Group 1: Expansion Details - The new MasterCraft Boats of Utah location in St. George aims to provide a convenient service option for existing customers and attract new ones, reducing travel needs to Salt Lake City [1][2] - The dealership has been a trusted partner since 1999 and has received multiple awards for customer satisfaction and service excellence [3] - The St. George location will offer a range of services including maintenance, repairs, on-water demos, and boat storage, positioning it as a premier destination for boaters in southern Utah [4] Group 2: Market Strategy - MasterCraft Boats of Utah plans to host grand opening celebrations and community events to introduce the brand to the local market, supported by a comprehensive digital advertising campaign [5] - The expansion is expected to increase MasterCraft's market share in southern Utah, aligning with the growing boating community in the area [6] Group 3: Company Background - MasterCraft is recognized as a leading innovator in the premium performance sport boat industry, with a history of over five decades in manufacturing high-quality boats [8] - MasterCraft Boat Holdings, Inc. operates under three brands: MasterCraft, Crest, and Balise, and is headquartered in Vonore, TN [9]

Company Overview - MasterCraft Boat Holdings, Inc. (MCFT) shares increased by 13.9% to close at $16.75, following a notable trading volume and a previous loss of 14.8% over the past four weeks [1] - The surge in share price is linked to President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, which has renewed investor optimism [1] Earnings Expectations - MasterCraft is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year decline of 51.4% [2] - Revenue projections stand at $75.37 million, down 21.3% compared to the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for MasterCraft has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] - In comparison, Malibu Boats (MBUU), a competitor in the same industry, saw a 12.6% increase in its stock price, closing at $28.35, but has returned -19.6% over the past month [3] Competitor Analysis - Malibu Boats has a revised consensus EPS estimate of $0.66, which is a 4.8% increase from the previous year, but has seen a change of -6.2% over the past month [4] - Malibu currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to MasterCraft [4]