PHOTO COURTESY MASTERCRAFT

MasterCraft Boat Holdings yesterday published the results of its fiscal fourth quarter ended June 30.

The boatbuilder had net sales of $366.6 million in the fiscal year, which was down 44.6% from the previous year. Fourth quarter net revenues were $67.2 million, a 59.7% decline from the same quarter in 2023.

Net income from continuing operations for the year was $8.7 million and the company ended the year with cash and investments of $86.2 million and total debt of $49.3 million.

“MasterCraft delivered results ahead of our latest expectations as we navigated a challenging economic environment and a highly competitive retail landscape during the fourth quarter and fiscal year,” Brad Nelson, MasterCraft Boat Holdings CEO, said in a statement. “We executed well against our strategic and operational priorities during the year as we destocked field inventory levels, advanced consumer-centric initiatives, and returned capital to shareholders, all while optimizing profitability and cash flow.”

For the fourth quarter, MasterCraft said the $99.4 million decrease in net sales was due to lower unit volume and unfavorable model mix and options. It was offset partially by higher prices.

Operating expenses increased $6.4 million for the quarter, which was the result of non-cash impairment charges of $9.8 million for the transfer of Aviara boats to MarineMax. The transaction is subject to customary closing conditions and is expected to close in the first quarter of fiscal year 2025.

For fiscal 2024, consolidated net sales were $366.6 million, which was a drop of $295.5 million from fiscal 2023. The decrease in net sales was attributed to lower unit volume, an increase in dealer incentives and unfavorable model mix and options, partially offset by higher prices.

Operating expenses increased $6.7 million in fiscal 2024, primarily because of the impairment charges related to Aviara and CEO transaction costs. Net income from continuing operations was $8.7 million for fiscal 2024, compared to $90.5 million in the previous year.

“Looking forward, although current market uncertainties have short-term implications for wholesale shipments, our destocking efforts are positive for dealer health and in the best long-term interest of our business,” Nelson said in the statement. “In fiscal 2025, we will continue to prioritize a healthy distribution network, and our production plan optimizes dealer inventory levels to position us well to capitalize on the next market upswing.”

For fiscal 2025, MasterCraft Boat Holdings expects consolidated net sales between $265 million and $300 million. Consolidated net sales for the first quarter of next year are expected to be approximately $61 million.