MasterCraft Boat Holdings posted net sales of $95.7 million in its fiscal third quarter, down 42.6% year-over-year. Net income from continuing operations was $3.8 million, and adjusted EBITDA was $9.7 million.
The company said in a statement that it ended the quarter with cash and investments of $105.7 million and total debt of $50.4 million.
“We delivered results ahead of our expectations in what remains a dynamic and challenging environment for the marine industry,” CEO Brad Nelson said in the statement. “My first six weeks with our team has been energizing, and it is clear to me that our capabilities and opportunities are even greater than I anticipated.”
Gross margin percentage declined 630 basis points in the quarter. The lower margins were the result of lower cost absorption due to planned decreased unit volume and higher dealer incentives, partially offset by higher prices and a favorable model mix and options.
Operating expenses increased $0.8 million in the quarter compared with the previous year. The increase was the result of a CEO transition and related share-based compensation costs, which were $1.9 million.
MasterCraft added that it recently launched the Balise brand of pontoons.
“The Balise product will be built by our experienced team at Crest’s manufacturing facility in Owosso, Mich., which is a capital-efficient use of existing capacity. Balise production has already commenced, and product will be available to consumers for model year 2025.”
