MasterCraft Boat (US:MCFT)2025-11-06 17:48Financial Performance - The company reported net sales of $69,002,000 for the three months ended September 28, 2025, an increase of $3,643,000 or 5.6% compared to the same period in 2024[68] - Gross profit increased to $15,396,000, reflecting a 30.5% increase year-over-year, driven by higher prices, increased unit volumes, and effective cost controls[68] - Operating income surged to $3,778,000, a significant increase of 276.3% compared to the prior year[68] - The MasterCraft segment achieved net sales of $58,145,000, up 4.7% from $55,533,000 in the previous year, with operating income rising by 48.1% to $5,468,000[70] - The Pontoon segment's net sales increased by 10.5% to $10,857,000, with a reduction in operating loss by 37.2% to $1,690,000[72] - Consolidated gross margin improved by 420 basis points to 22.3% compared to 18.1% in the prior year[69] - Income from continuing operations for the three months ended September 28, 2025, was $3.656 million, representing a margin of 5.3%, compared to $1.016 million and 1.6% for the same period in 2024[80] - Adjusted EBITDA for the three months ended September 28, 2025, was $6.705 million, or 9.7% of net sales, up from $3.842 million and 5.9% in the prior year[80] - Adjusted Net Income for the three months ended September 28, 2025, was $4.532 million, compared to $1.938 million in the same period of 2024[81] Cash Flow and Financial Position - Free cash flow for the three months ended September 28, 2025, was $(10.127) million, a decrease from $(2.707) million in the prior year[81] - Cash and cash equivalents increased to $31.8 million as of September 28, 2025, up by $2.9 million from $28.9 million as of June 30, 2025[84] - Net cash used in operating activities for the three months ended September 28, 2025, was $(7.047) million, primarily due to working capital usage[87] - Net cash provided by investing activities was $12.012 million for the three months ended September 28, 2025, including $15.1 million from available-for-sale securities[88] - The company had no long-term debt outstanding as of September 28, 2025, with $100.0 million available under the Revolving Credit Facility[84] Shareholder Actions - The company repurchased 116,370 shares of common stock for $2.3 million during the three months ended September 28, 2025, as part of a $50 million share repurchase program[85] Taxation - The income tax expense for fiscal 2026 was at a rate of 23.0%, compared to 20.0% for fiscal 2025[82] Operational Insights - Unit sales volume for MasterCraft was 377, a slight increase of 0.8%, while Pontoon unit sales rose by 6.2% to 188[70][72] - Operating expenses increased by $824,000, primarily due to senior leadership transition costs and timing of commercial activities[69] - The company emphasized the importance of non-GAAP financial measures to provide a clearer view of ongoing business performance, excluding certain non-cash charges[65][77]