MasterCraft Boat Holdings reported net sales of $166.8 million in its third quarter, down 1.5% from the prior-year period. Net income from continuing operations was $22.8 million, or $1.28 per diluted share, down 6.3% from 2022.
Diluted adjusted net income per share was $1.36, and adjusted EBITDA was $33 million, down 5.8% from the same period in the previous year.
“Our business has performed extremely well through the fiscal third quarter, delivering financial results which have exceeded expectations,” chairman and CEO Fred Brightbill said in a statement. “Adjusted diluted income per share tied our record from last year for the best fiscal third quarter in the company’s history.”
Brightbill said that, during the quarter, the company achieved its goal of refilling dealer inventories to optimal levels ahead of the summer selling season.
“Despite near-term macroeconomic headwinds, retail activity has performed closer to the upper end of our range of expectations through our fiscal third quarter,” he said. “Additionally, our fortress balance sheet provides us with abundant financial flexibility to pursue our capital allocation priorities, first and foremost of which is investment in growth.”
Consolidated net sales of $166.8 million for the quarter were down $2.6 million from the prior-year quarter, reflecting changes in model mix, decreased sales volumes, increased dealer incentives, and decreased options and content sales, partially offset by higher prices, according to MasterCraft.
Gross profit decreased $1.5 million, and gross profit margin was down 50 basis points compared with the prior year.
Adjusted net income was $24.1 million for the quarter, or $1.36 per diluted share, compared with $25.1 million and $1.36 per diluted share a year ago.
For the full fiscal year, MasterCraft forecasts consolidated net sales of approximately $656 million, with adjusted EBITDA at around $125 million. The company expects capital expenditures of approximately $30 million.
“We are raising our guidance for the full year based on our strong performance and incremental retail demand visibility,” Brightbill said. “Based on retail sales results through our fiscal third quarter and the general expectation that the onset of a potential downturn has been pushed into fiscal 2024, we now expect retail demand to perform closer to the high end of our range of expectations.”
