MasterCraft Boat (MCFT) - 2025 Q2 - Quarterly Results

Financial Performance - Consolidated net sales for Q2 fiscal 2025 were $63.4 million, a decrease of $26.4 million or 29.4% compared to Q2 fiscal 2024[4] - Income from continuing operations was $0.4 million, or $0.03 per diluted share, down from $8.7 million, or $0.51 per diluted share in the prior-year period[6] - Adjusted EBITDA for Q2 fiscal 2025 was $3.5 million, down $9.4 million from $12.9 million in the prior-year period, with an adjusted EBITDA margin of 5.6% compared to 14.4%[7] - Full year fiscal 2025 consolidated net sales guidance is now expected to be between $275 million and $295 million, with Adjusted EBITDA between $19 million and $24 million[10] - For Q3 fiscal 2025, consolidated net sales are expected to be approximately $75 million, with Adjusted EBITDA of approximately $5 million[10] - Net sales for MasterCraft decreased by 24.2% to $55,097 million compared to $72,699 million in the same period last year[22] - Adjusted EBITDA for the three months ended December 29, 2024, was $3,526 million, representing a margin of 5.6%[30] - Adjusted Net Income for the three months ended December 29, 2024, was $1,687 million, down from $9,469 million in the prior year[30] - Income from continuing operations per diluted share for Q4 2024 was $0.03, a decrease of 94% compared to $0.51 in Q4 2023[31] - Adjusted Net Income per diluted share for Q4 2024 was $0.10, down 81.8% from $0.55 in Q4 2023[31] - For the six months ended December 29, 2024, income from continuing operations per diluted share was $0.09, a decline of 91% from $1.00 in the same period of 2023[31] - Adjusted Net Income per diluted share for the six months ended December 29, 2024 was $0.22, a decrease of 80.9% compared to $1.15 in the prior year[31] Cash Flow and Assets - The company generated $13.9 million in cash flow from continuing operations despite low cycle production volumes, maintaining a strong balance sheet with $62.9 million in cash and investments[3] - Cash and cash equivalents increased significantly from $7,394 million to $34,314 million[21] - Total current assets decreased from $155,074 million to $111,729 million, a decline of 28%[21] - Total liabilities decreased from $134,105 million to $71,609 million, a reduction of 47%[21] Operational Changes - The company has completed the dispositions of the Aviara brand and facility assets, contributing to a more focused operational strategy[4] - The company plans to continue its share repurchase program while pursuing strategic growth initiatives[3] - The launch of the new ultra-premium XStar lineup has generated strong demand, providing positive momentum heading into the summer selling season[3] - Gross margin percentage declined by 610 basis points due to unfavorable model mix and lower cost absorption from decreased production volume[5] - Consolidated unit sales volume dropped by 35.4% year-over-year, from 856 units to 553 units for the three months ended December 29, 2024[22] - Gross margin fell from 23.3% to 17.2%, a decrease of 610 basis points[22] Tax and Compensation - The impact of income tax expense on adjusted net income per diluted share was $(0.03) for Q4 2024 and $(0.07) for the six months ended December 29, 2024[31] - Share-based compensation contributed $0.05 to adjusted net income per diluted share in Q4 2024[31] - The income tax rate for fiscal 2025 and 2024 was 20.0% for each period presented[32] Strategic Focus - The company is focused on strategic organizational realignment as part of its ongoing transition efforts[31] - The company does not provide forward-looking guidance for certain financial measures on a GAAP basis due to unpredictability of certain items[28] - The weighted average shares used for the computation of diluted earnings per share were consistent across all periods presented[32]