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

Overview - MasterCraft Boat Holdings, Inc. reported financial results for the second quarter of fiscal 2025, ending December 29, 2024, with a focus on continuing operations excluding the former Aviara segment [1][3] Financial Performance - Consolidated net sales for the second quarter were $63.4 million, a decrease of $26.4 million or 29.4% from the same period in fiscal 2024, primarily due to planned lower unit volumes and unfavorable model mix [4][8] - Gross margin percentage declined by 610 basis points to 17.2% compared to the prior-year period, attributed to unfavorable model mix and lower cost absorption from decreased production volume [5][22] - 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 [5][31] - Adjusted net income was $1.7 million, or $0.10 per diluted share, compared to $9.5 million, or $0.55 per diluted share, in the prior-year period [6][31] - Adjusted EBITDA was $3.5 million, down from $12.9 million in the prior-year period, with an adjusted EBITDA margin of 5.6%, down from 14.4% [6][22] Operational Highlights - 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][8] - The early boat show season results indicated strong demand for the new ultra-premium XStar lineup, contributing to positive momentum as the summer selling season approaches [3][8] Outlook - The company is narrowing its full-year guidance for fiscal 2025, expecting consolidated net sales between $275 million and $295 million, with adjusted EBITDA between $19 million and $24 million [13][8] - For the fiscal third quarter of 2025, consolidated net sales are anticipated to be approximately $75 million, with adjusted EBITDA of around $5 million [13][8]