MasterCraft Boat Holdings this week reported net sales of $154.1 million for the first three months of its transition period, which ended Oct. 4, up $85.1 million, or 123.4%, from the prior-year period. The increase is mainly from the Recreation and Sport Fishing segment, added through the company’s May 15 merger with Marine Products Corp., along with higher unit volumes, a more favorable model mix, and higher prices in its performance and wake and leisure segments.
Excluding Marine Products (Chaparral and Robalo), net sales rose $25.8 million, or 37.4%, year-over-year. Adjusted EBITDA, a non-GAAP measure, was $20.1 million, up $13.1 million from the same period a year earlier. The company said its results reflect deliberate product, commercial and operational actions aimed at driving premium mix, clean channels and lower costs.
CEO Brad Nelson said the quarter exceeded expectations and pointed to the next-generation X-Series as a driver. “The success of the next-generation X-Series is a clear example of the strength of our product and portfolio strategy and our ability to translate a deep understanding of our consumers into products that resonate in the market,” Nelson said in a press release. “Combined with our ongoing cost, productivity and quality initiatives, those actions are driving stronger earnings and margin performance.”
As a result of the merger, MasterCraft changed its fiscal year-end from June 30 to Dec. 31 to match the Marine Products calendar. It will report on the six-month transition period running July 1 through Dec. 31, and issued an outlook for that period.
The company expects consolidated net sales of $293 million to $297 million, with adjusted EBITDA between $32 million and $34 million. Capital expenditures of approximately $9 million are expected.
