MasterCraft Boat (MCFT) - 2025 Q3 - Quarterly Results

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]