MasterCraft Boat Holdings, Inc. Reports Record Fourth Quarter and Fiscal 2022 Results

Sep 8th, 2022 7:30 EST

VONORE, Tenn., Sept. 08, 2022 (GLOBE NEWSWIRE) -- MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) today announced financial results for its fiscal 2022 fourth quarter and year ended June 30, 2022.

Fourth Quarter Highlights:

  • Seventh consecutive record-setting quarter.
  • Net sales for the fourth quarter increased to $217.7 million, up 39.9% from the prior-year period.
  • Net income was $11.5 million, or $0.63 per diluted share.
  • Diluted Adjusted Net Income per share, a non-GAAP measure, was $1.77, up 80.6%.
  • Adjusted EBITDA, a non-GAAP measure, increased to $44.6 million, up 65.6%.
  • Share repurchases of $4.0 million during the quarter.
  • Non-cash impairment charges of $23.8 million related to our NauticStar segment.

Full Year Highlights:

  • The most profitable fiscal year in the Company’s history.
  • Net sales increased to $707.9 million, up 34.6% from the prior-year period.
  • Net income was $58.2 million, or $3.12 per diluted share.
  • Diluted Adjusted Net Income per share, a non-GAAP measure, was $4.54, up 37.2%.
  • Adjusted EBITDA, a non-GAAP measure, increased to $121.1 million, up 30.5%.
  • Share repurchases of $25.5 million during the fiscal year.

Fred Brightbill, Chief Executive Officer and Chairman, commented, “For the second consecutive year we achieved record-setting results, introduced an array of new and innovative products across our brands, produced industry-leading organic sales growth, and gained market share, all while navigating arguably one of the most challenging business environments in recent history. These results would not have been possible without the hard work and dedication of our team who continue to execute against our strategic priorities.”

Brightbill continued, “We delivered record-setting performances for each quarter, which culminated in record net sales and adjusted earnings for the full year. We grew our net sales by nearly 35 percent and our diluted adjusted earnings per share by more than 37 percent year-over-year, all on an organic basis. This exceptional performance was enabled by a year-over-year unit increase of more than 14 percent for the full year, resulting in the most wholesale units ever sold by the Company.”

Fourth Quarter Results

For the fourth quarter of 2022, MasterCraft Boat Holdings, Inc. reported consolidated net sales of $217.7 million, up $62.1 million from the fourth quarter of 2021. The increase was primarily due to increased sales volumes and higher prices. Higher option and content sales and favorable model mix also contributed to higher net sales.

Gross margin increased 140 basis points to 25.3 percent in the fourth quarter 2022 from 23.9 percent in the fourth quarter 2021. The increase was mainly due to increased sales volumes and higher prices, partially offset by inflationary pressures that drove material costs higher.

Operating expenses increased $25.0 million for the fourth quarter of fiscal 2022, compared to the prior-year period primarily as a result of intangible and fixed asset impairment charges of $23.8 million related to our NauticStar segment. Additionally, non-recurring third-party consulting fees were recognized at our NauticStar segment related to an effort to improve operational efficiency and increase throughput.

Net income was $11.5 million for the fourth quarter, compared to $16.5 million in the prior-year period. Diluted net income per share was $0.63, compared to $0.87 for the fourth quarter of fiscal 2021. Adjusted Net Income increased to $32.1 million for the fourth quarter, or $1.77 per diluted share, compared to $18.5 million, or $0.98 per diluted share, in the prior-year period.

Adjusted EBITDA was $44.6 million for the fourth quarter of fiscal 2022, compared to $27.0 million in the prior-year period.   Adjusted EBITDA margin was 20.5 percent for the fourth quarter, up from 17.3 percent for the prior-year period, primarily due to higher net sales.

See “Non-GAAP Measures” below for a reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Net Income per share to the most directly comparable financial measures presented in accordance with GAAP.

Fiscal 2022 Results

For fiscal 2022, MasterCraft Boat Holdings, Inc. reported consolidated net sales of $707.9 million, up $182.1 million from fiscal 2021. The increase was primarily due to increased sales volume and higher prices. Higher option and content sales and favorable model mix also contributed to higher net sales.

Gross margin declined 180 basis points to 22.9 percent for fiscal 2022 from 24.7 percent in fiscal 2021. Lower margins were the result of supply chain disruptions, inflationary pressures, and operational challenges that drove material and overhead costs higher and were most pronounced at our NauticStar segment.

Operating expenses increased to $84.5 million for fiscal 2022, up $30.5 million compared to the prior-year period. During fiscal 2022, a $1.1 million goodwill impairment charge was recorded in the Aviara segment and $23.8 million was recorded in the NauticStar segment for impairment of other intangible assets and fixed assets. Additionally, despite our increased costs, selling, general, and administrative expenses as a percentage of sales have decreased compared to the prior-year period. Selling and marketing expense increased due to timing of prior-year expenses being impacted by the COVID-19 pandemic. General and administrative expense increased as a result of continued investments in information technology and product development, as well as non-recurring third-party consulting fees recognized at our NauticStar segment related to an effort to improve operational efficiency and improve throughput.

Net income was $58.2 million for fiscal 2022, compared to $56.2 million in the prior-year period. Diluted net income per share was $3.12, compared to $2.96 for fiscal 2021. Adjusted Net Income increased to $84.6 million for fiscal 2022, or $4.54 per diluted share, compared to $62.8 million, or $3.31 per diluted share, in the prior-year period.

Adjusted EBITDA was $121.1 million for fiscal 2022, compared to $92.8 million in the prior-year period. Adjusted EBITDA margins were higher year-over-year for each of our segments, except NauticStar, which was heavily impacted by supply chain disruption, inflationary pressures, and other operational challenges. The dilutive impact on margins from NauticStar more than offset the margin improvements at MasterCraft, Crest, and Aviara. As a result, our consolidated Adjusted EBITDA margin was 17.1 percent for fiscal 2022, down from 17.6 percent for the prior-year period.

See “Non-GAAP Measures” below for a reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Net Income per share to the most directly comparable financial measures presented in accordance with GAAP.

Outlook

Concluded Brightbill, “Looking forward, the potential for a weakening economy has caused us to approach our wholesale production plan for fiscal 2023 with a prudent level of conservatism. Even so, if our business performs to the lower end of our guidance range, we will deliver the second-best year in the history of our Company in terms of both revenue and earnings. Furthermore, as we clearly demonstrated during the past two years, our highly flexible business model will allow us to adjust our production plan and generate outstanding financial results should retail demand outpace our initial expectations.”

For fiscal year 2022, the Company had consolidated net sales of $707.9 million, including $66.3 million attributable to the NauticStar segment. Beginning with our fiscal first quarter of 2023, we will report the financial results of the NauticStar segment as discontinued operations, separate from the results of our continuing operations. As such, the following outlook represents expectations for our continuing operations only.

The Company’s outlook is as follows:

  • For full year fiscal 2023, consolidated net sales are expected to be between $580 million and $615 million, with Adjusted EBITDA between $105 million and $115 million, and Adjusted Earnings per share of between $3.89 and $4.31. We expect capital expenditures to be approximately $30 million for the full year.
  • For fiscal first quarter 2023, consolidated net sales are expected to be approximately $165 million, with Adjusted EBITDA of approximately $33.5 million, and Adjusted Earnings per share of approximately $1.30.

Conference Call and Webcast Information

MasterCraft Boat Holdings, Inc. will host a live conference call and webcast to discuss fiscal fourth quarter and full year 2022 results today, September 8, 2022, at 8:30 a.m. EDT. Participants may access the conference call live via webcast on the investor section of the Company’s website, Investors.MasterCraft.com, by clicking on the webcast icon. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the conference call and webcast will be archived on the Company's website.

About MasterCraft Boat Holdings, Inc.

Headquartered in Vonore, Tenn., MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) is a leading innovator, designer, manufacturer and marketer of recreational powerboats through its three brands, MasterCraft, Crest and Aviara. Through these three brands, MasterCraft Boat Holdings has leading market share positions in two of the fastest growing segments of the powerboat industry – performance sport boats and pontoon boats – while entering the large, growing luxury day boat segment. For more information about MasterCraft Boat Holdings, and its three brands, visit: Investors.MasterCraft.com, www.MasterCraft.com, www.CrestPontoonBoats.com, and www.AviaraBoats.com.

Forward-Looking Statements

This press release 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, comparable terminology or the negative thereof, and include statements in this press release concerning the resilience of our business model; and our intention to drive value and accelerate growth.

Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to: the potential effects of the COVID-19 pandemic on the Company, supply chain disruptions, inflationary pressures, general economic conditions, demand for our products, changes in consumer preferences, competition within our industry, our reliance on our network of independent dealers, our ability to manage our manufacturing levels and our large fixed cost base, changes to U.S. federal income tax law, the overall impact and interpretation of which remain uncertain, the successful introduction of our new products and geopolitical conflicts. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021, filed with the Securities and Exchange Commission (the “SEC”) on September 2, 2021, could cause actual results to differ materially from those indicated by the forward-looking statements. The discussion of these risks is specifically incorporated by reference into this press release.

Any such forward-looking statements represent management's estimates as of the date of this press release. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. We undertake no obligation (and we expressly disclaim any obligation) to update or supplement any forward-looking statements that may become untrue or cause our views to change, whether because of new information, future events, changes in assumptions or otherwise. Comparison of results for current and prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

Use of Non-GAAP Financial Measures

To supplement the Company’s consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures in this release. Reconciliations of the non-GAAP financial measures used in this release to the most comparable GAAP measures for the respective periods can be found in tables immediately following the consolidated statements of operations. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with GAAP.

  
Results of Operations for the Three Months and Fiscal Year Ended June 30, 2022 
  
MASTERCRAFT BOAT HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS 
  
(Dollars in thousands, except per share data) 
  
  Three Months Ended  Year Months Ended 
  June 30,  June 30,  June 30,  June 30, 
  2022  2021  2022  2021 
            
Net sales $217,652  $155,532  $707,862  $525,808 
Cost of sales  162,643   118,291   545,500   395,837 
Gross profit  55,009   37,241   162,362   129,971 
Operating expenses:                
Selling and marketing  3,336   3,432   14,624   13,021 
General and administrative  11,079   9,781   40,960   37,049 
Amortization of other intangible assets  988   987   3,988   3,948 
Impairments  23,833      24,933    
Total operating expenses  39,236   14,200   84,505   54,018 
Operating income  15,773   23,041   77,857   75,953 
Other expense:                
Interest expense  391   748   1,471   3,392 
Loss on extinguishment of debt     733      733 
Income before income tax expense  15,382   21,560   76,386   71,828 
Income tax expense  3,891   5,026   18,172   15,658 
Net income $11,491  $16,534  $58,214  $56,170 
                 
Earnings per share:                
Basic $0.64  $0.88  $3.15  $2.99 
Diluted $0.63  $0.87  $3.12  $2.96 
Weighted average shares used for computation of:                
Basic earnings per share  17,952,267   18,822,231   18,455,226   18,805,464 
Diluted earnings per share  18,155,449   19,021,220   18,636,512   18,951,521 
                 

MASTERCRAFT BOAT HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
 
(Dollars in thousands, except per share data)
  June 30,  June 30, 
  2022  2021 
ASSETS        
CURRENT ASSETS:        
Cash and cash equivalents $34,203  $39,252 
Accounts receivable, net of allowances of $274 and $115, respectively  25,602   12,080 
Income tax receivable     355 
Inventories, net  78,639   53,481 
Prepaid expenses and other current assets  7,666   5,059 
Total current assets  146,110   110,227 
Property, plant and equipment, net  61,747   60,495 
Goodwill  28,493   29,593 
Other intangible assets, net  37,418   59,899 
Deferred income taxes  21,525   15,130 
Deferred debt issuance costs, net  406   507 
Other long-term assets  1,353   609 
Total assets $297,052  $276,460 
LIABILITIES AND STOCKHOLDERS' EQUITY        
CURRENT LIABILITIES:        
Accounts payable $28,050  $23,861 
Income tax payable  4,600   726 
Accrued expenses and other current liabilities  57,649   46,836 
Current portion of long-term debt, net of unamortized debt issuance costs  2,873   2,866 
Total current liabilities  93,172   74,289 
Long-term debt, net of unamortized debt issuance costs  53,676   90,277 
Unrecognized tax positions  6,358   3,830 
Operating lease liabilities  198   276 
Total liabilities  153,404   168,672 
COMMITMENTS AND CONTINGENCIES        
STOCKHOLDERS' EQUITY:        
Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 18,061,437 shares at June 30, 2022 and 18,956,719 shares at June 30, 2021  181   189 
Additional paid-in capital  96,584   118,930 
Retained earnings (accumulated deficit)  46,883   (11,331)
Total stockholders' equity  143,648   107,788 
Total liabilities and stockholders' equity $297,052  $276,460 
         

Supplemental Operating Data

The following table presents certain supplemental operating data for the periods indicated:

  Three Months Ended For Years Ended
  June 30,  June 30,     June 30,  June 30,     
  2022  2021 Change 2022  2021 Change
                        
                        
  (Dollars in thousands)
                        
                        
Unit sales volume:                       
MasterCraft  1,027   955 7.5 %  3,596   3,301  8.9 %
Crest  895   708 26.4 %  3,156   2,467  27.9 %
NauticStar  416   320 30.0 %  1,365   1,387  (1.6)%
Aviara(a)  29   10 190.0 %  100   42  138.1 %
Consolidated  2,367   1,993 18.8 %  8,217   7,197  14.2 %
Net sales:                       
MasterCraft $147,283  $104,687 40.7 % $466,027  $350,812  32.8 %
Crest  39,402   33,318 18.3 %  140,859   102,688  37.2 %
NauticStar  20,436   14,510 40.8 %  66,253   59,846  10.7 %
Aviara(a)  10,531   3,017 249.1 %  34,723   12,462  178.6 %
Consolidated $217,652  $155,532 39.9 % $707,862  $525,808  34.6 %
Net sales per unit:                       
MasterCraft $143  $110 30.0 % $130  $106  22.6 %
Crest  44   47 (6.4)%  45   42  7.1 %
NauticStar  49   45 8.9 %  49   43  14.0 %
Aviara(a)  363   302 20.2 %  347   297  16.8 %
Consolidated  92   78 17.9 %  86   73  17.8 %
Gross margin  25.3%  23.9%140 bps  22.9%  24.7%(180) bps

(a) Beginning with the first quarter of fiscal 2022, our chief operating decision maker began to manage our business, allocate resources, and evaluate performance based on the changes that were made in the Company’s management structure in connection with the transition of Aviara production to our Merritt Island facility. As a result, the Company realigned its reportable segments to MasterCraft, Crest, NauticStar, and Aviara.

Non-GAAP Measures

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin

We define EBITDA as earnings before interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations. For the periods presented herein, these adjustments include impairment charges, share-based compensation, operational improvement initiative costs, Aviara transition costs, and debt refinancing charges. We define Adjusted EBITDA margin as Adjusted EBITDA expressed as a percentage of Net sales.

Adjusted Net Income and Adjusted Net Income per share

We define Adjusted Net Income and Adjusted Net Income per share as net income adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense on adjusted net income before income taxes at our estimated annual effective tax rate. For the periods presented herein, these adjustments include impairment charges, income tax expense, amortization of acquisition intangibles, share-based compensation, operational improvement initiative costs, Aviara transition costs, and debt refinancing charges. 

EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Net Income per share, which we refer to collectively as the Non-GAAP Measures, are not measures of net income or operating income as determined under accounting principles generally accepted in the United States, or U.S. GAAP. The Non-GAAP Measures are not measures of performance in accordance with U.S. GAAP and should not be considered as an alternative to net income, net income per share, or operating cash flows determined in accordance with U.S. GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of cash flow. We believe that the inclusion of the Non-GAAP Measures is appropriate to provide additional information to investors because securities analysts and investors use the Non-GAAP Measures to assess our operating performance across periods on a consistent basis and to evaluate the relative risk of an investment in our securities. We use Adjusted Net Income and Adjusted Net Income per share to facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results prepared in accordance with U.S. GAAP, provides a more complete understanding of factors and trends affecting our business than does U.S. GAAP measures alone.  We believe Adjusted Net Income and Adjusted Net Income per share assists our board of directors, management, investors, and other users of the financial statements in comparing our net income on a consistent basis from period to period because it removes certain non-cash items and other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense on adjusted net income before income taxes at our estimated annual effective tax rate. The Non-GAAP Measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and the Non-GAAP Measures do not reflect any cash requirements for such replacements;
  • The Non-GAAP Measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
  • The Non-GAAP Measures do not reflect changes in, or cash requirements for, our working capital needs;
  • The Non-GAAP Measures do not reflect our tax expense or any cash requirements to pay income taxes;
  • The Non-GAAP Measures do not reflect interest expense, or the cash requirements necessary to service interest payments on our indebtedness; and
  • The Non-GAAP Measures do not reflect the impact of earnings or charges resulting from matters we do not consider to be indicative of our core and/or ongoing operations, but may nonetheless have a material impact on our results of operations.

In addition, because not all companies use identical calculations, our presentation of the Non-GAAP Measures may not be comparable to similarly titled measures of other companies, including companies in our industry.

We do not provide forward-looking guidance for certain financial measures on a U.S. GAAP basis because we are unable to predict certain items contained in the U.S. GAAP measures without unreasonable efforts. These items may include acquisition-related costs, litigation charges or settlements, impairment charges, and certain other unusual adjustments.

The following table presents a reconciliation of net income as determined in accordance with U.S. GAAP to EBITDA and Adjusted EBITDA, and net income margin (expressed as a percentage of net sales) to Adjusted EBITDA margin (expressed as a percentage of net sales) for the periods indicated:

  Three Months Ended For the Years Ended
  June 30, % of Net June 30, % of Net June 30,  % of Net June 30, % of Net
  2022 sales 2021 sales 2022  sales 2021 sales
                              
  (Dollars in thousands) (Dollars in thousands)
Net income $11,491 5.3% $16,534 10.6% $58,214  8.2% $56,170 10.7%
Income tax expense  3,891     5,026     18,172      15,658   
Interest expense  391     748     1,471      3,392   
Depreciation and amortization  3,460     3,082     13,614      11,630   
EBITDA  19,233 8.8%  25,390 16.3%  91,471  12.9%  86,850 16.5%
Impairments(a)  23,833          24,933         
Share-based compensation  583     800     3,458      2,984   
Operational improvement initiative(b)  984          1,216         
Aviara transition costs(c)                  2,150   
Debt refinancing charges(d)       769           769   
Adjusted EBITDA $44,633 20.5% $26,959 17.3% $121,078  17.1% $92,753 17.6%

(a) Represents non-cash charges of $1.1 million recorded in the Aviara segment for impairment of goodwill and $23.8 million recorded in our NauticStar segment for impairment of other intangible assets and fixed assets.

(b) Represents third-party consulting fees associated with the operational improvement initiative at our NauticStar segment.

(c) Represents costs to transition production of the Aviara brand from Vonore, Tennessee to Merritt Island, Florida. Costs include duplicative overhead costs and costs not indicative of ongoing operations (such as training and facility preparation).

(d) Represents loss recognized upon refinancing the Company’s debt in fiscal 2021. The loss is comprised of unamortized debt issuance costs related to the previously existing credit facility and third-party legal costs associated with the refinancing.

The following table sets forth a reconciliation of net income as determined in accordance with U.S. GAAP to Adjusted Net Income for the periods indicated:

 Three Months Ended  For the Years Ended 
 June 30,  June 30,  June 30,  June 30, 
 2022  2021  2022  2021 
           
 (Dollars in thousands, except per share data)  (Dollars in thousands) 
Net income$11,491  $16,534  $58,214  $56,170 
Income tax expense 3,891   5,026   18,172   15,658 
Impairments(a) 23,833      24,933    
Amortization of acquisition intangibles 961   961   3,881   3,842 
Share-based compensation 583   800   3,458   2,984 
Operational improvement initiative(b) 984      1,216    
Aviara transition costs(c)          2,150 
Debt refinancing charges(d)    769      769 
Adjusted Net Income before income taxes 41,743   24,090   109,874   81,573 
Adjusted income tax expense(e) 9,602   5,541   25,271   18,762 
Adjusted Net Income$32,141  $18,549  $84,603  $62,811 
                
Adjusted net income per common share               
Basic$1.79  $0.99  $4.58  $3.34 
Diluted$1.77  $0.98  $4.54  $3.31 
Weighted average shares used for the computation of (f):               
Basic Adjusted net income per share 17,952,267   18,822,231   18,455,226   18,805,464 
Diluted Adjusted net income per share 18,155,449   19,021,220   18,636,512   18,951,521 

(a) Represents non-cash charges of $1.1 million recorded in the Aviara segment for impairment of goodwill and $23.8 million recorded in our NauticStar segment for impairment of other intangible assets and fixed assets.

(b) Represents third-party consulting fees associated with the operational improvement initiative at our NauticStar segment.

(c) Represents costs to transition production of the Aviara brand from Vonore, Tennessee to Merritt Island, Florida. Costs include duplicative overhead costs and costs not indicative of ongoing operations (such as training and facility preparation).

(d) Represents loss recognized upon refinancing the Company’s debt in fiscal 2021. The loss is comprised of unamortized debt issuance costs related to the previously existing credit facility and third-party legal costs associated with the refinancing.

(e) Reflects income tax expense at an income tax rate of 23.0% for each period presented.

(f) Represents the Weighted Average Shares Used for the Computation of Basic and Diluted earnings per share as presented on the Consolidated Statements of Operations to calculate Adjusted Net Income per diluted share for all periods presented herein.

The following table presents the reconciliation of net income per diluted share to Adjusted Net Income per diluted share for the periods presented:

 Three Months Ended  For the Years Ended 
 June 30,  June 30,  June 30,  June 30, 
 2022  2021  2022  2021 
Net income per diluted share$0.63  $0.87  $3.12  $2.96 
Impact of adjustments:               
Income tax expense 0.22   0.27   0.98   0.83 
Impairments(a) 1.31      1.34    
Amortization of acquisition intangibles 0.05   0.05   0.21   0.20 
Share-based compensation 0.03   0.04   0.19   0.16 
Operational improvement initiative(b) 0.05      0.07    
Aviara transition costs(c)          0.11 
Debt refinancing charges(d)    0.04      0.04 
Adjusted Net Income per diluted share before income taxes 2.29   1.27   5.91   4.30 
Impact of adjusted income tax expense on net income per diluted share before income taxes(e) (0.52)  (0.29)  (1.37)  (0.99)
Adjusted Net Income per diluted share$1.77  $0.98  $4.54  $3.31 

(a) Represents non-cash charges of $1.1 million recorded in the Aviara segment for impairment of goodwill and $23.8 million recorded in our NauticStar segment for impairment of other intangible assets and fixed assets.

(b) Represents third-party consulting fees associated with the operational improvement initiative at our NauticStar segment.

(c) Represents costs to transition production of the Aviara brand from Vonore, Tennessee to Merritt Island, Florida. Costs include duplicative overhead costs and costs not indicative of ongoing operations (such as training and facility preparation).

(d) Represents loss recognized upon refinancing the Company’s debt in fiscal 2021. The loss is comprised of unamortized debt issuance costs related to the previously existing credit facility and third-party legal costs associated with the refinancing.

(e) Reflects income tax expense at an income tax rate of 23.0% for each period presented.

Investor Contact:MasterCraft Boat Holdings, Inc.George Steinbarger Chief Revenue OfficerEmail: [email protected] 

SHARE

You must be logged in to post a comment.

Related Recent Publications

You must be logged in to post a comment.

Email newsletter

Receive the latest stock news and signals