Financial Data and Key Metrics Changes - Net sales for Q2 2026 were $188.6 million, a decrease of 5.8% compared to the previous year, with unit volume down 9.5% to 1,106 units [12][14] - Adjusted EBITDA decreased 52.5% to $8 million, with an adjusted EBITDA margin of 4.3%, down from 8.4% in the prior year [15][18] - GAAP net loss for the quarter was $2.5 million, compared to a net income of $2.4 million in the prior year [15] - Consolidated net sales per unit increased 4.1% to $170,544 per unit [13] Business Line Data and Key Metrics Changes - Malibu and Axis brands accounted for approximately 46.4% of unit sales, while saltwater fishing represented 25.5%, and Cobalt made up 28.1% [13] - Gross profit decreased 32.9% to $25.1 million, with a gross margin of 13.3%, down 540 basis points from the prior year [14] Market Data and Key Metrics Changes - The broader marine industry is experiencing a modest overhang on non-current inventory, but the company maintains a healthy inventory position for its model year 2026 boats [9][11] - The company expects the market to decline in the range of mid to high single digits for the fiscal year [17] Company Strategy and Development Direction - The company is focused on a "Build, Innovate, and Grow" framework, emphasizing customer-driven innovation and operational excellence [8][11] - Plans to introduce new models at the Miami International Boat Show, showcasing differentiated products [7] - The company is expanding its marine components business and enhancing dealer partnerships to capture market share [10] Management's Comments on Operating Environment and Future Outlook - Management noted a competitive promotional environment but expressed optimism about customer response to new models and the overall retail environment [6][11] - The company anticipates flat to mid-single digit sales declines for the full fiscal year, with Q3 net sales expected between $198 million and $202 million [17][18] Other Important Information - The company generated $8.4 million of free cash flow during Q2, with $4.4 million in capital expenditures [16] - A share repurchase program was expanded to $70 million, with $20.8 million completed during the quarter [16] Q&A Session Summary Question: Impact of higher boat show expenses on EBITDA margin - Management indicated about 50 basis points of cost pressure from promotional activities related to year-end sales events [23] Question: Inventory levels compared to the industry - Management stated that the industry is generally in a healthy position, with the company feeling good about its inventory levels [24] Question: MBI Acceptance program's impact on sales - Early feedback from dealers was positive, indicating higher take rates at boat shows, although it is still early to determine overall trends [30] Question: Centralized sourcing cost savings - Management expects significant benefits from centralized sourcing efforts to impact margins positively in the latter part of the fiscal year [32] Question: Dealer sentiment and inventory management - Feedback from dealers has been mixed, with some positive trends leading to additional orders, but a level of destocking is expected due to market conditions [36] Question: Outlook for labor costs - Management anticipates improvements in labor costs as operational effectiveness and centralized sourcing efforts take effect [41] Question: Competitive landscape in the ski and wake category - Management noted ongoing efforts to stimulate growth in the ski/wake segment, with collaboration among competitors [43] Question: Confidence in EBITDA margin expansion - Management outlined expectations for sequential growth, fixed-cost leverage, and reduced promotional spending as drivers for margin growth [47] Question: Update on M&A pipeline - Management is actively looking for opportunities and conducting due diligence on potential deals [57]

Financial Data and Key Metrics Changes - Q2 net sales increased by $8.4 million or 13% year-over-year, reaching $71.8 million [7][13] - Adjusted EBITDA rose by nearly $4 million, with an adjusted EBITDA margin improvement of approximately 480 basis points to 10.4% [7][15] - Adjusted net income for the quarter was $4.7 million, or $0.29 per diluted share, compared to $1.7 million, or $0.10 per share in the prior year [14] - Full-year guidance for consolidated net sales is now expected to be between $300 million and $310 million, with adjusted EBITDA between $36 million and $39 million [15][16] Business Line Data and Key Metrics Changes - Within the MasterCraft segment, there is growing momentum with the introduction of new premium products, including the redesigned X24 and XStar, which are generating strong demand signals [9][10] - The pontoon segment is executing operational improvements and enhancing margin performance, with the luxury brand Balise launching the new Halo model [11][12] Market Data and Key Metrics Changes - Retail demand is expected to be down 5%-10%, but recent trends are tracking toward the better end of that range for the MasterCraft segment [8] - Early boat show results have been encouraging, with strong engagement reported at several key shows [10] Company Strategy and Development Direction - The company announced a definitive agreement to combine with Marine Products Corporation, aiming to strengthen its marine platform through complementary brands and an expanded dealer network [6][18] - The combination is expected to unlock growth opportunities and enhance product development and manufacturing capabilities [18][20] - The focus remains on maintaining brand identities while expanding the product lineup across various price points and boat lengths [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current momentum and the ability to navigate the dynamic market environment through disciplined inventory and production management [19] - The company is confident that the combination with Marine Products Corporation will create significant value and growth opportunities [18][28] Other Important Information - The transaction is expected to close in Q2 2026, subject to regulatory approvals and shareholder approval [26] - The combined company will maintain a strong balance sheet with no debt and significant liquidity post-transaction [27] Q&A Session Summary Question: Can you elaborate on the additional synergies from the transaction? - Management highlighted opportunities in innovation platforms, manufacturing best practices, and expanded distribution as key areas for synergies [31][34] Question: What is the current state of inventory management? - Management indicated that restocking is largely over, and both companies are in good shape regarding inventory levels [35][36] Question: How did the acquisition price compare to Marine Products' closing price? - Management explained that the mix of cash and stock was appealing to Marine Products, allowing them to participate in the upside of the combined entity [39][41] Question: What are the expectations for shifts in Marine Products' model mix post-integration? - Management noted that there are plans to enhance the model mix and accelerate innovation, leveraging the strengths of both companies [49][50] Question: How will the combined dealer network expand distribution? - Management acknowledged that while there are opportunities for cross-synergy, it will be market-specific and will require careful planning [51][82] Question: What is the outlook for the Balise brand post-acquisition? - Management confirmed that the Balise brand will continue to expand, with strong consumer interest and dealer feedback [84][86]

Financial Data and Key Metrics Changes - Net sales for Q2 2026 were $188.6 million, a decrease of 5.8% compared to the previous year, with unit volume down 9.5% to 1,106 units [12][15] - Adjusted EBITDA decreased 52.5% to $8 million, with adjusted EBITDA margin dropping to 4.3% from 8.4% in the prior year [15][17] - GAAP net loss for the quarter was $2.5 million, compared to a net income of $2.4 million in the prior year [15] Business Line Data and Key Metrics Changes - Malibu and Axis brands accounted for approximately 46.4% of unit sales, while saltwater fishing represented 25.5% and Cobalt made up 28.1% [13] - Consolidated net sales per unit increased by 4.1% to $170,544 per unit, driven by favorable model mix in Cobalt and saltwater fishing segments [13][14] Market Data and Key Metrics Changes - The broader marine industry is experiencing a modest overhang on non-current inventory, but the company maintains a healthy inventory position for its model year 2026 boats [9][11] - The company expects the market to decline in the range of mid to high single digits for the fiscal year [17] Company Strategy and Development Direction - The company is focused on a "Build, Innovate, and Grow" framework, emphasizing customer-driven innovation and operational excellence [8][11] - Plans to debut new models at the Miami International Boat Show, showcasing differentiated products [7] - The company is expanding its marine components business and enhancing dealer partnerships to strengthen its market position [10] Management's Comments on Operating Environment and Future Outlook - Management noted a competitive retail environment but expressed optimism about customer response to new models and the success of promotional events [5][6] - The company is closely monitoring market conditions and is prepared to scale production if demand improves [18] Other Important Information - The company generated $8.4 million of free cash flow during Q2, with $4.4 million in capital expenditures [16] - A share repurchase program was expanded to $70 million, with $20.8 million completed during the quarter [16] Q&A Session Summary Question: Impact of higher boat show expenses on EBITDA margin - Management indicated that higher promotional costs related to year-end sales events contributed about 50 basis points of cost pressure for the quarter [22][23] Question: Inventory levels compared to the industry - Management stated that the industry is generally in a healthy position, with the company feeling good about its inventory levels [24] Question: MBI Acceptance program rollout and its impact - Early feedback from dealers was positive, indicating a higher take rate on financing options, although it is still early to determine overall trends [30] Question: Dealer sentiment and inventory management - Feedback from dealers has been mixed, with some positive trends observed at boat shows, leading to additional orders [35] Question: Outlook for labor costs - Management expects to see benefits from operational effectiveness and centralized sourcing efforts, which should help manage labor costs moving forward [39][41] Question: Competitive landscape in the ski and wake category - Management noted ongoing efforts to stimulate growth in the ski/wake segment, collaborating with industry peers [42][43] Question: Q3 EBITDA margin guidance and operating leverage - Management expects sequential growth in top line and benefits from centralized sourcing to drive margin growth in the latter part of the year [46][47]

Financial Data and Key Metrics Changes - Net sales decreased 5.8% to $188.6 million, with unit volume decreasing 9.5% to 1,106 units, primarily due to lower wholesale shipments and unfavorable segment and model mix [12][15] - Consolidated net sales per unit increased 4.1% to $170,544 per unit, driven by favorable model mix in Cobalt and saltwater fishing segments and inflation-driven price increases [12][13] - Gross profit decreased 32.9% to $25.1 million, with gross margin at 13.3%, a decrease of 540 basis points compared to the prior year [13][14] - Adjusted EBITDA decreased 52.5% to $8 million, with adjusted EBITDA margin decreasing to 4.3% from 8.4% in the prior year [15] Business Line Data and Key Metrics Changes - Malibu and Axis represented approximately 46.4% of unit sales, saltwater fishing represented 25.5%, and Cobalt made up the remaining 28.1% [12] - The decrease in net sales was driven by decreased unit volumes across all segments, with Malibu segment facing unfavorable model mix [12][15] Market Data and Key Metrics Changes - The broader industry is experiencing a modest overhang on non-current inventory, but the company maintains a healthy inventory position for model year 2026 boats [9][11] - The company expects the market to decline in the range of mid to high single digits for the fiscal year, with sales expected to be flat to down mid-single digits year-over-year [17] Company Strategy and Development Direction - The company is focused on customer-driven innovation, operational excellence, and disciplined capital allocation to drive long-term growth [6][8] - The introduction of new models and partnerships is central to the company's strategy, with plans to showcase new products at the Miami International Boat Show [6][8] - The company is also expanding its marine components business and centralized sourcing initiatives to improve efficiency and reduce costs [10][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the retail environment, noting a successful year-end sales event and strong customer response to new models [5][11] - The company is closely monitoring market conditions and is prepared to scale production in line with retail demand if necessary [18] - Management expects to see benefits from centralized sourcing and operational improvements in the latter part of the fiscal year [44] Other Important Information - The company generated $8.4 million of free cash flow during Q2, with $20.8 million of share repurchases completed during the quarter [16] - The company anticipates Adjusted EBITDA margins of approximately 8.5% for Q3 and expects to maintain operational discipline despite market challenges [17][18] Q&A Session Summary Question: Impact of higher boat show expenses on EBITDA margin - Management indicated that higher boat show expenses contributed about 50 basis points of cost pressure for the quarter [21][22] Question: Inventory levels compared to the industry - Management noted that while the industry has pockets of elevated inventory, their inventory position is healthy and well-managed [23] Question: MBI Acceptance program rollout and its impact - Early feedback from dealers on the MBI Acceptance program has been positive, with some increase in traffic and sales at boat shows [27] Question: Centralized sourcing initiatives and cost savings - Management expects significant benefits from centralized sourcing efforts to impact margins positively in the latter part of the fiscal year [28] Question: Dealer sentiment and inventory management - Dealer feedback has been mixed but generally positive, with additional orders resulting from successful boat shows [32] Question: Outlook for labor costs - Management anticipates that operational effectiveness and centralized sourcing will help manage labor costs moving forward [36] Question: Competitive landscape in the ski and wake category - Management acknowledged ongoing efforts to stimulate growth in the ski/wake segment, collaborating with industry peers [39][40] Question: Confidence in EBITDA margin guidance for Q3 - Management outlined expectations for sequential growth, fixed-cost leverage, and reduced promotional spending as key drivers for margin growth [43][44]

FISCAL SECOND QUARTER 2026 RESULTS MASTERCRAFT + MARINE PRODUCTS TO COMBINE F E B R U A R Y 5 , 2 0 2 6 1 DISCLAIMER Forward Looking Statements This presentation includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements can often be identified by such words and phrases as "believes," "anticipates," "expects," "intends," "estimates," "may," "will," "should," "continue," and similar expressions and comparable terminology, ...

Use & Definition of Non-GAAP Financial Measures This presentations includes the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission: Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net (Loss) Income, Adjusted Net (Loss) Income per Share and Free Cash Flow. These measures have limitations as analytical tools and should not be considered as an alternative to, or more meaningful than, net (loss) income as determined in accordance with U.S. generally a ...

MASTERCRAFT + MARINE PRODUCTS TO COMBINE F E B R U A R Y 5 , 2 0 2 6 1 DISCLAIMER Forward Looking Statements This presentation includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements can often be identified by such words and phrases as "believes," "anticipates," "expects," "intends," "estimates," "may," "will," "should," "continue," and similar expressions and comparable terminology, or the negative thereof. Forward-lo ...

Core Insights - Malibu Boats, Inc. reported second-quarter financial results for fiscal 2026, showing a decline in net sales and profitability compared to the same quarter in fiscal 2025, but expressed optimism about future demand and operational efficiency [3][5]. Financial Performance - Net sales for the three months ended December 31, 2025, decreased by $11.7 million, or 5.8%, to $188.6 million compared to the same period in 2024 [4][5]. - Gross profit fell by 32.9% to $25.1 million, with a gross profit margin of 13.3%, down from 18.7% in the prior year [4][12]. - The company reported a net loss of $2.5 million, compared to a net income of $2.4 million in the same quarter of the previous year [5][28]. - Adjusted EBITDA decreased by 52.5% to $8.0 million, with an adjusted EBITDA margin of 4.3% [5][34]. Segment Performance - Net sales in the Malibu segment decreased by $3.5 million, or 4.7%, to $70.6 million, with unit volumes down by 12 units [7]. - The Saltwater Fishing segment saw a decrease in net sales of $4.8 million, or 6.8%, to $65.3 million, with unit volumes down by 35 units [8]. - Cobalt segment net sales decreased by $3.4 million, or 6.0%, to $52.6 million, with unit volumes down by 69 units [9]. Cost and Expense Management - Cost of sales increased by $0.6 million, or 0.4%, to $163.5 million, driven by higher per unit material and labor costs [11]. - Selling and marketing expenses rose by 1.4% to $6.1 million, while general and administrative expenses decreased by 21.5% to $20.8 million [13][14]. Future Outlook - For the full fiscal year 2026, Malibu anticipates net sales to be flat to down mid-single digits year-over-year, with an adjusted EBITDA margin ranging from 8% to 9% [15].

Core Viewpoint Marine Products Corporation reported its unaudited financial results for the fourth quarter and full year ended December 31, 2025, highlighting significant growth in net sales but a decline in net income and earnings per share due to increased expenses and tax provisions related to the liquidation of company-owned life insurance policies. Fourth Quarter 2025 Results - Net sales reached $64.6 million, representing a 35% increase year-over-year, driven by a 12% price/mix increase and a 22% rise in the number of boats sold [5][10] - Gross profit was $12.7 million, up 39%, with a gross margin of 19.6%, an increase of 40 basis points compared to the prior year [5] - Selling, general and administrative expenses rose to $8.9 million, a 61% increase, accounting for 13.9% of net sales, up 230 basis points from 4Q:24 [6] - Net income was $2.4 million, down 45% year-over-year, with diluted EPS at $0.07, a decrease from $0.12 in 4Q:24 [7][10] - EBITDA was $4.5 million, a slight increase of 3% year-over-year, with an EBITDA margin of 7.0%, down 220 basis points from the previous year [8][10] Full Year 2025 Results - Total net sales for the year were $244.4 million, a 3% increase from $236.6 million in 2024 [10] - Net income for the year was $11.4 million, down 36% from $17.9 million in 2024, with diluted EPS at $0.32, down from $0.50 [10] - Adjusted net income was $12.4 million, with adjusted diluted EPS at $0.35 [10] - EBITDA for the year was $17.2 million, down 18% year-over-year, with an EBITDA margin of 7.0%, a decrease of 190 basis points [10] Balance Sheet, Cash Flow and Capital Allocation - Cash and cash equivalents at the end of 4Q:25 were approximately $43.5 million, with no outstanding debt [11] - Net cash provided by operating activities was $16.5 million, and free cash flow was $14.9 million year-to-date through 4Q:25 [11] - Total liabilities decreased to $22.3 million from $42.2 million in the previous year, while total stockholders' equity was $125.0 million, down from $129.0 million [18]

Core Insights - MasterCraft Boat Holdings, Inc. reported strong financial results for the second quarter of fiscal 2026, exceeding expectations and raising full-year guidance [3][10]. Financial Performance - Consolidated net sales for the second quarter reached $71.8 million, an increase of $8.4 million or 13.2% compared to the same period in fiscal 2025 [4][10]. - Gross margin percentage improved by 440 basis points to 21.6% due to higher net sales and effective cost controls [5][28]. - Income from continuing operations was $2.5 million, or $0.15 per diluted share, compared to $0.4 million, or $0.03 per diluted share, in the prior-year period [7][10]. - Adjusted net income was $4.7 million, or $0.29 per diluted share, up from $1.7 million, or $0.10 per diluted share, in the prior-year period [7][10]. - Adjusted EBITDA for the quarter was $7.5 million, compared to $3.5 million in the prior-year period, with an adjusted EBITDA margin of 10.4% [8][10]. Operational Highlights - The increase in net sales was attributed to favorable model mix, higher unit volumes, and increased prices [4][10]. - The company reported a unit sales volume of 583 for the quarter, a 5.4% increase from the previous year [28]. - MasterCraft's segment saw a 12.1% increase in net sales, while the Pontoon segment experienced a 21.2% increase [28]. Strategic Developments - The company announced a definitive agreement to acquire Marine Products Corporation, expected to close in the second calendar quarter of 2026 [11]. - A $75 million revolving credit facility was amended and extended, maturing on February 5, 2031 [12]. Future Outlook - For the full fiscal year 2026, consolidated net sales are expected to be between $300 million and $310 million, with adjusted EBITDA between $36 million and $39 million [18]. - The company anticipates third-quarter consolidated net sales of approximately $75 million and adjusted EBITDA of approximately $9 million [18].