MasterCraft Boat Holdings reported net sales of $99.5 million for the second quarter of fiscal 2024, down 37.5% compared with the year-prior quarter. Net income was $5.9 million, and diluted adjusted net income per share was 37 cents, down 69.2% year-over-year.
“Our business performed well during the second quarter by exceeding previously issued guidance, despite continuing macroeconomic uncertainty and a highly competitive retail environment,” CEO and chairman Fred Brightbill said in a statement. “Near term, we remain focused on rebalancing dealer inventories with anticipated retail demand. As we anticipated moving beyond inventory rebalancing, we are prudently investing in targeted initiatives that will take advantage of the industry’s positive, underlying secular tends and accelerate our growth.”
Brightbill added that MasterCraft has generated $19.2 million in cash flow from operations and that the company will launch a new pontoon brand built at its Crest facility.
Second-quarter earnings were down $59.7 million from the year-prior second quarter, due to lower unit volume and an increase in dealer incentives, partially offset by higher prices and favorable mix and options.
Gross margin percentage declined 520 basis points year-over-year.
The company said it is narrowing its guidance for the full year. Consolidated net sales are expected to be between $400 million and $412 million, with adjusted EBITDA between $42 million and $47 million, and adjusted earnings per share between $1.53 and $1.78. Capital expenditures are expected to be approximately $20 million.
