MasterCraft Boat Holdings, Inc. Reports Fiscal 2025 First Quarter Results

Overview - MasterCraft Boat Holdings, Inc. reported net sales of $65.4 million for the first quarter of fiscal 2025, a decrease of $28.9 million or 30.7% compared to the prior year [2][4] - Income from continuing operations was $1.0 million, or $0.06 per diluted share, down from $8.5 million or $0.50 per diluted share in the prior year [6][7] - Adjusted Net Income was $1.9 million, or $0.12 per diluted share, compared to $10.3 million, or $0.60 per diluted share, in the prior year [7][27] - Adjusted EBITDA was $3.8 million, down from $14.0 million in the prior year, with an adjusted EBITDA margin of 5.9% compared to 14.9% [7][21] Financial Performance - The decrease in net sales was primarily attributed to lower unit volumes and an unfavorable model mix [4] - Gross margin percentage declined by 570 basis points to 18.1% due to lower cost absorption from decreased production volume and higher dealer incentives [5][20] - Operating expenses decreased by $1.1 million, driven by lower share-based compensation and professional fees [6] Strategic Actions - The company completed the sale of its Aviara brand and related assets to MarineMax, Inc. on October 18, 2024, and is in the process of selling its Aviara manufacturing facility for $26.5 million [2][3] - A Fourth Amendment to the Credit Agreement was executed to obtain necessary consents and waivers related to the Aviara transaction, with a draw of $49.5 million on the Revolving Credit Facility [3] Outlook - The company raised the lower end of its full-year guidance, expecting consolidated net sales between $270 million and $300 million, with Adjusted EBITDA between $17 million and $26 million [9] - For the fiscal second quarter of 2025, consolidated net sales are projected to be approximately $60 million, with Adjusted EBITDA of around $1 million [9]