Core Insights - The company reported Q1 net sales of $69 million, an increase of $3.6 million or 5.6% year over year, driven by pricing, favorable option sales, and lower dealer incentives [12][14] - Adjusted EBITDA rose to $6.7 million, with a margin improvement of 380 basis points to 9.7% [14] - The company maintains a strong financial position with $67.3 million in cash and no debt, allowing for continued capital return to shareholders through share repurchases [14][15] Operational Performance - The company improved pipeline inventory levels by 27% year over year, aligning dealer inventory with expectations and maintaining inventory turns at pre-COVID levels [5][6] - The launch of the new X24 model has generated strong initial dealer and consumer response, reinforcing the company's commitment to innovation and category leadership [7][8] - The pontoon segment showed operational improvements, with a refreshed product lineup well-received at dealer meetings, including the introduction of the Conquest SE model [9][10] Market Outlook - The company anticipates a retail decline of 5-10% for the MasterCraft segment due to ongoing macroeconomic challenges, including elevated interest rates [6][23] - Despite near-term uncertainties, the company is positioned to capitalize on future market stabilization and growth opportunities [19][31] - The company plans to ramp up production in the second half of the fiscal year to meet seasonal demand and support new product initiatives [16][31] Financial Guidance - For fiscal 2026, consolidated net sales are projected between $295 million and $310 million, with adjusted EBITDA expected between $30 million and $35 million [15] - Adjusted earnings per share are forecasted to be between $1.18 and $1.43, reflecting confidence in the company's long-term outlook [15] - The company continues to prioritize returning capital to shareholders, with expectations for total repurchases to exceed prior year levels by the end of the fiscal year [15]

Financial Data and Key Metrics Changes - Net sales for Q1 increased by $3.6 million, or 5.6% year-over-year, reaching $69 million [10] - Adjusted EBITDA rose to $6.7 million compared to $3.8 million in the prior year, with an adjusted EBITDA margin improvement of 380 basis points to 9.7% [12] - Adjusted net income for the quarter was $4.5 million, or $0.28 per diluted share, compared to $1.9 million, or $0.12 per share in the prior year [11] - Gross margin improved by 420 basis points to 22.3% due to strong cost management and favorable mix [10] Business Line Data and Key Metrics Changes - The MasterCraft segment is expected to see a retail decline of 5% to 10% for the year, with early indicators showing the company gaining market share [6][19] - The pontoon segment showed operational improvements despite market challenges, with a refreshed product lineup well received [8] Market Data and Key Metrics Changes - Retail variability continues, with early industry indicators suggesting a slight decline, but the company remains cautiously optimistic about future demand [6][20] - The company is focused on maintaining dealer health and managing inventory levels, which improved by 27% year-over-year [4] Company Strategy and Development Direction - The company is committed to differentiated innovation and category leadership, as evidenced by the launch of the new X24 model [7] - Strategic partnerships and industry involvement are being strengthened to enhance brand presence and consumer experience [8] - The company plans to ramp up production in the second half of the fiscal year to align with seasonal demand and new product initiatives [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding interest rate cuts and their potential positive impact on consumer behavior [6][26] - The company is managing for long-term growth despite near-term uncertainties, with a focus on capital allocation and shareholder returns [15] Other Important Information - The company ended the quarter with $67.3 million in cash and short-term investments, no debt, and expects to generate positive free cash flow for the year [12] - Over 100,000 shares were repurchased in Q1, totaling $2.3 million, reflecting confidence in the long-term outlook [13] Q&A Session Summary Question: Current marine consumer and retail trends - Management noted that while the industry is slightly down, the company performed well in Q1 and is gaining market share [18][19] Question: Dealer network and retail outlook - Changes to the dealer network are expected to help the company outperform the industry, which is included in the anticipated 5%-10% decline [21] Question: Retail progression through the fiscal year - Management expects a ramp in retail demand in the second half of the fiscal year, driven by new product launches [28] Question: M&A opportunities and leverage comfort level - The company maintains a flexible balance sheet and is open to evaluating M&A opportunities while continuing share repurchases [30]

Financial Data and Key Metrics Changes - Q1 net sales increased by $3.6 million, or 5.6% year-over-year, reaching $69 million [11] - Adjusted EBITDA rose to $6.7 million, compared to $3.8 million in the prior year, with an adjusted EBITDA margin of 9.7%, a 380 basis point improvement [12] - Adjusted net income for the quarter was $4.5 million, or $0.28 per diluted share, compared to $1.9 million, or $0.12 per share in the prior year [12] - Gross margin improved by 420 basis points to 22.3% due to strong cost management and favorable mix [11] Business Line Data and Key Metrics Changes - The MasterCraft segment is expected to see a retail decline of 5% to 10% for the year, despite Q1 performance exceeding expectations [5][21] - The pontoon segment showed operational improvements, with a well-received 2026 lineup and new product introductions [8][9] Market Data and Key Metrics Changes - Pipeline inventory levels improved by 27% year-over-year, indicating a balanced approach to dealer health [4] - Dealer inventory levels are aligned with expectations, and inventory turns are consistent with pre-COVID levels [5] Company Strategy and Development Direction - The company is focused on differentiated innovation and category leadership, highlighted by the launch of the new X family model, the X24 [7] - Strategic partnerships, such as with the World Wake Association, are aimed at enhancing brand presence and community engagement [8] - The company plans to ramp up production in the second half of the fiscal year to meet seasonal demand and support new product initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding interest rate cuts and their potential positive impact on the industry [5][30] - The company remains focused on long-term growth despite near-term uncertainties, with underlying trends moving in their favor [17] Other Important Information - The company ended the quarter with $67.3 million in cash and short-term investments, with no debt [12] - Over 100,000 shares were repurchased in Q1, totaling $2.3 million, reflecting confidence in the long-term outlook [13] Q&A Session Summary Question: Current marine consumer and retail trends - Management noted that while the industry is slightly down, they believe they are gaining market share due to new products and dealer growth [21][24] Question: Impact of dealer network changes on retail outlook - Management confirmed that changes to the dealer network are expected to help gain market share, which is included in the anticipated retail decline [25] Question: Retail cadence and interest rate impacts - Management indicated that they only embed already occurred rate cuts in their forecasts, with a positive outlook on the psychological benefits of lower rates for consumers [30] Question: M&A opportunities and leverage comfort level - Management emphasized maintaining a flexible balance sheet for capital allocation, including share buybacks and evaluating M&A opportunities [34]

Financial Performance - Net sales reached $69 million, a 5.6% increase compared to Q1 FY25[21, 23] - Adjusted EBITDA was $6.7 million, up $2.9 million from $3.8 million in Q1 FY25[21, 23] - Adjusted diluted net income per share was $0.28, an increase of $0.16 from $0.12 in Q1 FY25[21, 24] Balance Sheet and Capital Allocation - The company maintains a strong financial position with approximately $67 million in cash and investments and no debt[21] - The company returned $2.3 million of capital through a share repurchase program[21] - Capital expenditures (TTM) were $10.1 million[27] - Share repurchases (TTM) amounted to $8.4 million[27] Operational Highlights - Wholesale units totaled 565, a 2.5% increase from 551 in Q1 FY25[23] - Dealer inventories decreased by approximately 26% year-over-year and approximately 40% from FY19[21] FY26 Guidance - The company expects Q2 FY26 net sales to be approximately $69 million[30] - The company expects Q2 FY26 adjusted EBITDA to be approximately $5 million[30] - The company expects Q2 FY26 adjusted DEPS to be approximately $0.16[30] - The company anticipates FY26 net sales to be between $295 million and $310 million[30] - The company anticipates FY26 adjusted EBITDA to be between $30 million and $35 million[30] - The company anticipates FY26 adjusted DEPS to be between $1.18 and $1.43[30] - The company anticipates FY26 capital expenditures to be approximately $9 million[30]