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

Overview - MasterCraft Boat Holdings, Inc. reported financial results for the third quarter of fiscal 2025, ending March 30, 2025, with a focus on continuing operations excluding the former Aviara segment [1][4]. Financial Performance - Consolidated net sales for the third quarter were $76.0 million, a decrease of $8.0 million or 9.5% from the same period in fiscal 2024, primarily due to planned lower unit volumes to align dealer inventories with retail demand [4][10]. - Gross margin percentage declined by 250 basis points compared to the prior-year period, attributed to changes in sales price, material and overhead inflation, and lower cost absorption due to decreased production volume [5][24]. - 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 [6][10]. - Adjusted net income 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 [6][10]. - Adjusted EBITDA was $7.5 million, down from $11.7 million in the prior-year period, with an adjusted EBITDA margin of 9.9%, down from 13.9% [7][10]. Operational Insights - The company maintained a disciplined approach to capital allocation, achieving operating cash flow of $18.5 million year-to-date despite low cycle production volumes [3][10]. - Cash and investments totaled $66.5 million, with $100 million available on the revolving credit facility and no outstanding debt, indicating a robust, debt-free balance sheet [10][11]. Outlook - The company revised its full-year guidance, now expecting consolidated net sales of approximately $275 million, adjusted EBITDA of approximately $20 million, and adjusted earnings per share of approximately $0.71 for fiscal 2025 [11][10]. - Capital expenditures are expected to be approximately $9 million for the year [11].