MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) today announced
financial results for its fiscal 2023 fourth quarter and year ended
June 30, 2023.
Unless otherwise indicated, the highlights and
commentary provided herein relate to our continuing operations,
which exclude the NauticStar segment results reported as
discontinued operations.
Fourth Quarter Highlights:
- Net sales for the fourth quarter
were $166.6 million, down 15.5% from the prior-year period
- Net income from continuing
operations was $23.1 million, or $1.32 per diluted share, down
31.2% and 28.6%, respectively, from the prior-year period
- Diluted Adjusted Net Income per
share, a non-GAAP measure, was $1.37, down 28.6% from the
prior-year period
- Adjusted EBITDA, a non-GAAP
measure, was $32.7 million, down 31.3% from the prior-year
period
- Share repurchases of $7.0 million
during the quarter
Full Year Highlights:
- The most profitable fiscal year in
the Company's history
- Net sales increased to $662.0
million, up 3.2% from the prior-year period
- Net income from continuing
operations was $90.5 million, or $5.09 per diluted share, up 2.9%
and 7.8%, respectively, from the prior-year period
- Diluted Adjusted Net Income per
share, a non-GAAP measure, was $5.35, up 6.8% from the prior-year
period
- Adjusted EBITDA, a non-GAAP
measure, was $131.5 million, up 0.7% from the prior-year
period
- Record operating cash flow due to
strong earnings and diligent working capital management
- Share repurchases of $22.9 million
during the fiscal year
Fred Brightbill, Chief Executive Officer and
Chairman, commented, “Our business performed extremely well during
fiscal 2023, delivering a third consecutive record-setting year for
net sales and earnings. Our strong operating performance resulted
in the highest cash flow for any year in the Company’s history as
we generated nearly $134 million of operating cash flow, driven by
strong earnings and diligent working capital management. We are
proud of our team and their outstanding work.”
Brightbill continued, “As our fiscal fourth
quarter progressed, retail sales slowed significantly and fell
short of our expectations. Although we reduced production plans in
response, dealer inventories ended fiscal 2023 at levels higher
than we would now consider optimal. Despite cyclical headwinds
facing the industry, our fortress balance sheet is a significant
competitive advantage and provides us with abundant financial
flexibility to pursue our capital allocation priorities, first and
foremost of which is investment in growth. We have been laying the
foundation for long-term growth by actively investing in targeted
initiatives that will take advantage of the industry’s positive,
underlying secular trends. These investments will continue into
fiscal 2024 as we prioritize long-term growth and value creation
through product line expansion, relentless innovation, and an
unyielding focus on the consumer.”
Fourth Quarter Results
Unless otherwise indicated, the financial
results provided herein relate to our continuing operations, which
exclude the NauticStar segment results reported as discontinued
operations.
For the fourth quarter of fiscal 2023,
MasterCraft Boat Holdings, Inc. reported consolidated net sales of
$166.6 million, down $30.7 million from the fourth quarter of
fiscal 2022. The net sales decrease reflects decreased sales
volumes, less favorable model mix, and increased dealer incentives,
partially offset by higher prices. Dealer incentives include higher
floor plan financing costs as a result of increased dealer
inventories and interest rates, and increased other incentives as
the retail environment becomes more competitive.
Gross profit decreased $14.3 million and gross
profit margin decreased 320 basis points in the fourth quarter of
fiscal 2023 from the fourth quarter of fiscal 2022. The decreased
margin was mainly due to higher dealer incentives, higher costs
from inflationary pressures, lower cost absorption due to decreased
sales volumes, and less favorable model mix, partially offset by
higher prices.
Operating expenses increased $1.1 million for
the fourth quarter of fiscal 2023, compared to the prior-year
period primarily as a result of increased product development
expenses in the quarter.
Net income from continuing operations was $23.1
million for the fourth quarter of fiscal 2023, compared to $33.5
million in the prior-year period. Diluted net income from
continuing operations per share was $1.32, compared to $1.85 for
the fourth quarter of fiscal 2022.
Adjusted Net Income was $23.9 million for the
fourth quarter of fiscal 2023, or $1.37 per diluted share, compared
to $34.8 million, or $1.92 per diluted share, in the prior-year
period.
Adjusted EBITDA was $32.7 million for the fourth
quarter of fiscal 2023, compared to $47.6 million in the prior-year
period. Adjusted EBITDA margin was 19.6 percent for the fourth
quarter, down from 24.1 percent for the prior-year period.
See “Non-GAAP Measures” below for a
reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
Net Income, and Adjusted Net Income per share to the most directly
comparable financial measures presented in accordance with
GAAP.
Fiscal 2023 Results
Unless otherwise indicated, the financial
results provided herein relate to our continuing operations, which
exclude the NauticStar segment results reported as discontinued
operations.
For fiscal 2023, MasterCraft Boat Holdings, Inc.
reported consolidated net sales of $662.0 million, up $20.4 million
from fiscal 2022. The net sales increase reflects higher prices,
partially offset by decreased sales volumes, increased dealer
incentives, and less favorable model mix. Dealer incentives include
higher floor plan financing costs as a result of increased dealer
inventories and interest rates, and other incentives as the retail
environment becomes more competitive.
Gross profit increased $1.5 million and gross
profit margin decreased 60 basis points in fiscal 2023 from fiscal
2022. The decreased margin was mainly due to higher costs from
inflationary pressures, higher dealer incentives, lower cost
absorption due to decreased sales volumes, less favorable model
mix, and increased warranty costs, partially offset by higher
prices and improved production efficiencies.
Operating expenses increased $0.8 million for
fiscal 2023 compared to the prior-year period. Selling, general and
administrative expenses as a percentage of net sales remained
relatively flat.
Net income from continuing operations was $90.5
million for fiscal 2023, compared to $87.9 million in the
prior-year period. Diluted net income from continuing operations
per share was $5.09, compared to $4.72 for fiscal 2022.
Adjusted Net Income was $95.0 million for fiscal
2023, or $5.35 per diluted share, compared to $93.3 million, or
$5.01 per diluted share, in the prior-year period.
Adjusted EBITDA was $131.5 million for fiscal
2023, compared to $130.5 million in the prior-year period. Adjusted
EBITDA margin was 19.9 percent for fiscal 2023, down from 20.3
percent for the prior-year period.
See “Non-GAAP Measures” below for a
reconciliation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
Net Income, and Adjusted Net Income per share to the most directly
comparable financial measures presented in accordance with
GAAP.
Outlook
Concluded Brightbill, “Macroeconomic factors,
including elevated interest rates as well as tightening credit
standards and availability, are creating significant uncertainty
which is limiting our retail demand visibility. In addition, the
general expectation for an economic downturn during fiscal 2024
will likely be a headwind for the industry. This backdrop of
economic uncertainty has caused us to approach our wholesale
production plan for fiscal 2024 with a prudent level of
conservatism, and we have developed plans for a range of potential
retail demand scenarios. Because of the lower-than-expected retail
sales results in our fiscal fourth quarter of 2023, and the
uncertain outlook for retail sales, wholesale unit sales for fiscal
2024 will be lower than projected retail sales. Our production
plans will allow us to rebalance dealer inventories with
anticipated retail demand and keep our pipeline healthy.”
The Company’s outlook is as follows:
- For full year fiscal 2024, we
expect consolidated net sales to be between $390 million and $420
million, with Adjusted EBITDA of between $42 million and $52
million, and Adjusted Earnings per share of between $1.46 and
$1.88. We expect capital expenditures to be approximately $22
million for the full year.
- For fiscal first quarter 2024,
consolidated net sales are expected to be approximately $98
million, with Adjusted EBITDA of approximately $11 million, and
Adjusted Earnings per share of approximately $0.41.
Importantly, this guidance reflects our view
that industry retail unit sales could be down as much as mid-teens
percent for fiscal year 2024. Although our guidance reflects a
significant decline in earnings from fiscal 2023, we expect to
generate positive free cash flow, which is a testament to our
flexible, highly-variable cost structure and proactive cost control
efforts.
Conference Call and Webcast
Information
MasterCraft Boat Holdings, Inc. will host a live
conference call and webcast to discuss fiscal fourth quarter and
full year 2023 results today, August 30, 2023, at 8:30 a.m. EDT.
Participants may access the conference call live via webcast on the
investor section of the Company’s website,
Investors.MasterCraft.com, by clicking on the webcast icon. To
participate via telephone, please register in advance at this link.
Upon registration, all telephone participants will receive a
confirmation email detailing how to join the conference call,
including the dial-in number along with a unique passcode and
registrant ID that can be used to access the call. A replay of the
conference call and webcast will be archived on the Company's
website.
About MasterCraft Boat Holdings,
Inc.
Headquartered in Vonore, Tenn., MasterCraft Boat
Holdings, Inc. (NASDAQ: MCFT) is a leading innovator, designer,
manufacturer and marketer of recreational powerboats through its
three brands, MasterCraft, Crest, and Aviara. Through these three
brands, MasterCraft Boat Holdings has leading market share
positions in two of the fastest growing segments of the powerboat
industry – performance sport boats and pontoon boats – while
entering the large, growing luxury day boat segment. For more
information about MasterCraft Boat Holdings, and its three brands,
visit: Investors.MasterCraft.com, www.MasterCraft.com,
www.CrestPontoons.com, and www.AviaraBoats.com.
Forward-Looking Statements
This press release includes forward-looking
statements (as such term is defined in the Private Securities
Litigation Reform Act of 1995). Forward-looking statements can
often be identified by such words and phrases as “believes,”
“anticipates,” “expects,” “intends,” “estimates,” “may,” “will,”
“should,” “continue” and similar expressions, comparable
terminology or the negative thereof, and include statements in this
press release concerning our ability to capitalize on the summer
selling season, our capital allocation priorities, including our
intention to drive value and accelerate growth, and our full year
financial outlook.
Forward-looking statements are subject to risks,
uncertainties and other important factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements, including, but not limited to: changes
in interest rates, the potential effects of supply chain
disruptions and production inefficiencies, general economic
conditions, demand for our products, inflation, changes in consumer
preferences, competition within our industry, our reliance on our
network of independent dealers, our ability to manage our
manufacturing levels and our fixed cost base, the successful
introduction of our new products, geopolitical conflicts and
financial institution disruptions. These and other important
factors discussed under the caption “Risk Factors” in our Annual
Report on Form 10-K for the fiscal year ended June 30, 2022, filed
with the Securities and Exchange Commission (the “SEC”) on
September 9, 2022 and our Quarterly Report on Form 10-Q for the
fiscal quarter ended January 1, 2023, filed with the SEC on
February 8, 2023, could cause actual results to differ materially
from those indicated by the forward-looking statements. The
discussion of these risks is specifically incorporated by reference
into this press release.
Any such forward-looking statements represent
management's estimates as of the date of this press release. These
forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release. We undertake no obligation (and we expressly
disclaim any obligation) to update or supplement any
forward-looking statements that may become untrue or cause our
views to change, whether because of new information, future events,
changes in assumptions or otherwise. Comparison of results for
current and prior periods are not intended to express any future
trends or indications of future performance, unless expressed as
such, and should only be viewed as historical data.
Use of Non-GAAP Financial
Measures
To supplement the Company’s consolidated
financial statements prepared in accordance with U.S. generally
accepted accounting principles (“GAAP”), the Company uses certain
non-GAAP financial measures in this release. Reconciliations of the
non-GAAP financial measures used in this release to the most
comparable GAAP measures for the respective periods can be found in
tables immediately following the consolidated statements of
operations. Non-GAAP financial measures have limitations as
analytical tools and should not be considered in isolation or as a
substitute for the Company’s financial results prepared in
accordance with GAAP.
|
|
Results of Operations for the Twelve Months Ended June 30,
2023 |
|
MASTERCRAFT BOAT HOLDINGS, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(Dollars in thousands, except per share data) |
|
|
|
Three Months Ended |
|
|
For the Years Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
166,566 |
|
|
$ |
197,216 |
|
|
$ |
662,046 |
|
|
$ |
641,609 |
|
Cost of sales |
|
|
123,651 |
|
|
|
140,043 |
|
|
|
492,333 |
|
|
|
473,419 |
|
Gross profit |
|
|
42,915 |
|
|
|
57,173 |
|
|
|
169,713 |
|
|
|
168,190 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
3,060 |
|
|
|
2,903 |
|
|
|
13,808 |
|
|
|
12,869 |
|
General and administrative |
|
|
10,160 |
|
|
|
9,189 |
|
|
|
37,034 |
|
|
|
36,070 |
|
Amortization of other intangible assets |
|
|
489 |
|
|
|
489 |
|
|
|
1,956 |
|
|
|
1,956 |
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,100 |
|
Total operating expenses |
|
|
13,709 |
|
|
|
12,581 |
|
|
|
52,798 |
|
|
|
51,995 |
|
Operating income |
|
|
29,206 |
|
|
|
44,592 |
|
|
|
116,915 |
|
|
|
116,195 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(756 |
) |
|
|
(392 |
) |
|
|
(2,679 |
) |
|
|
(1,471 |
) |
Interest income |
|
|
1,384 |
|
|
|
— |
|
|
|
3,351 |
|
|
|
— |
|
Income before income tax
expense |
|
|
29,834 |
|
|
|
44,200 |
|
|
|
117,587 |
|
|
|
114,724 |
|
Income tax expense |
|
|
6,782 |
|
|
|
10,652 |
|
|
|
27,135 |
|
|
|
26,779 |
|
Net income from continuing
operations |
|
|
23,052 |
|
|
|
33,548 |
|
|
|
90,452 |
|
|
|
87,945 |
|
Loss from discontinued
operations, net of tax |
|
|
(376 |
) |
|
|
(22,057 |
) |
|
|
(21,515 |
) |
|
|
(29,731 |
) |
Net income |
|
$ |
22,676 |
|
|
$ |
11,491 |
|
|
$ |
68,937 |
|
|
$ |
58,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
1.33 |
|
|
$ |
1.87 |
|
|
$ |
5.13 |
|
|
$ |
4.77 |
|
Discontinued operations |
|
|
(0.02 |
) |
|
|
(1.23 |
) |
|
|
(1.22 |
) |
|
|
(1.62 |
) |
Net income |
|
$ |
1.31 |
|
|
$ |
0.64 |
|
|
$ |
3.91 |
|
|
$ |
3.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
1.32 |
|
|
$ |
1.85 |
|
|
$ |
5.09 |
|
|
$ |
4.72 |
|
Discontinued operations |
|
|
(0.02 |
) |
|
|
(1.22 |
) |
|
|
(1.21 |
) |
|
|
(1.60 |
) |
Net income |
|
$ |
1.30 |
|
|
$ |
0.63 |
|
|
$ |
3.88 |
|
|
$ |
3.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used
for computation of: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
17,299,562 |
|
|
|
17,952,267 |
|
|
|
17,618,797 |
|
|
|
18,455,226 |
|
Diluted earnings per share |
|
|
17,505,504 |
|
|
|
18,155,449 |
|
|
|
17,765,117 |
|
|
|
18,636,512 |
|
|
MASTERCRAFT BOAT HOLDINGS, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
|
(Dollars in thousands, except per share data) |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
19,817 |
|
|
$ |
34,203 |
|
Held-to-maturity
securities |
|
|
91,560 |
|
|
|
— |
|
Accounts receivable, net of
allowances of $122 and $214, respectively |
|
|
15,741 |
|
|
|
22,472 |
|
Inventories, net |
|
|
58,298 |
|
|
|
58,595 |
|
Prepaid expenses and other
current assets |
|
|
10,083 |
|
|
|
7,232 |
|
Current assets associated with
discontinued operations |
|
|
— |
|
|
|
23,608 |
|
Total current assets |
|
|
195,499 |
|
|
|
146,110 |
|
Property, plant and equipment,
net |
|
|
77,921 |
|
|
|
55,823 |
|
Goodwill |
|
|
28,493 |
|
|
|
28,493 |
|
Other intangible assets,
net |
|
|
35,462 |
|
|
|
37,418 |
|
Deferred income taxes |
|
|
12,428 |
|
|
|
21,525 |
|
Deferred debt issuance costs,
net |
|
|
304 |
|
|
|
406 |
|
Other long-term assets |
|
|
3,869 |
|
|
|
1,290 |
|
Non-current assets associated
with discontinued operations |
|
|
— |
|
|
|
5,987 |
|
Total assets |
|
$ |
353,976 |
|
|
$ |
297,052 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
Accounts payable |
|
$ |
20,391 |
|
|
$ |
23,375 |
|
Income tax payable |
|
|
5,272 |
|
|
|
4,600 |
|
Accrued expenses and other
current liabilities |
|
|
72,496 |
|
|
|
54,437 |
|
Current portion of long-term
debt, net of unamortized debt issuance costs |
|
|
4,381 |
|
|
|
2,873 |
|
Current liabilities associated
with discontinued operations |
|
|
— |
|
|
|
7,887 |
|
Total current liabilities |
|
|
102,540 |
|
|
|
93,172 |
|
Long-term debt, net of
unamortized debt issuance costs |
|
|
49,295 |
|
|
|
53,676 |
|
Unrecognized tax
positions |
|
|
7,350 |
|
|
|
6,358 |
|
Operating lease
liabilities |
|
|
2,702 |
|
|
|
198 |
|
Total liabilities |
|
|
161,887 |
|
|
|
153,404 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
Common stock, $.01 par value
per share — authorized, 100,000,000 shares; issued and
outstanding, 17,312,850 shares at June 30, 2023 and 18,061,437
shares at June 30, 2022 |
|
|
173 |
|
|
|
181 |
|
Additional paid-in
capital |
|
|
75,976 |
|
|
|
96,584 |
|
Retained earnings |
|
|
115,820 |
|
|
|
46,883 |
|
MasterCraft Boat Holdings, Inc. equity |
|
|
191,969 |
|
|
|
143,648 |
|
Noncontrolling interest |
|
|
120 |
|
|
|
— |
|
Total equity |
|
|
192,089 |
|
|
|
143,648 |
|
Total liabilities and
equity |
|
$ |
353,976 |
|
|
$ |
297,052 |
|
|
|
Supplemental Operating Data
The following table presents certain
supplemental operating data for the periods indicated:
|
|
Three Months Ended |
|
For the Years Ended |
|
|
June 30, |
|
|
June 30, |
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Change |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
(Dollars in thousands) |
|
|
|
|
|
|
Unit sales volume: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCraft |
|
|
950 |
|
|
|
1,027 |
|
|
|
(7.5 |
)% |
|
|
3,407 |
|
|
|
3,596 |
|
|
|
(5.3 |
)% |
Crest |
|
|
492 |
|
|
|
895 |
|
|
|
(45.0 |
)% |
|
|
2,836 |
|
|
|
3,156 |
|
|
|
(10.1 |
)% |
Aviara |
|
|
34 |
|
|
|
29 |
|
|
|
17.2 |
% |
|
|
134 |
|
|
|
100 |
|
|
|
34.0 |
% |
Consolidated |
|
|
1,476 |
|
|
|
1,951 |
|
|
|
(24.3 |
)% |
|
|
6,377 |
|
|
|
6,852 |
|
|
|
(6.9 |
)% |
Net Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCraft |
|
$ |
129,341 |
|
|
$ |
147,282 |
|
|
|
(12.2 |
)% |
|
$ |
468,656 |
|
|
$ |
466,027 |
|
|
|
0.6 |
% |
Crest |
|
|
24,652 |
|
|
|
39,403 |
|
|
|
(37.4 |
)% |
|
|
141,247 |
|
|
|
140,859 |
|
|
|
0.3 |
% |
Aviara |
|
|
12,573 |
|
|
|
10,531 |
|
|
|
19.4 |
% |
|
|
52,143 |
|
|
|
34,723 |
|
|
|
50.2 |
% |
Consolidated |
|
$ |
166,566 |
|
|
$ |
197,216 |
|
|
|
(15.5 |
)% |
|
$ |
662,046 |
|
|
$ |
641,609 |
|
|
|
3.2 |
% |
Net sales per unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCraft |
|
$ |
136 |
|
|
$ |
143 |
|
|
|
(4.9 |
)% |
|
$ |
138 |
|
|
$ |
130 |
|
|
|
6.2 |
% |
Crest |
|
|
50 |
|
|
|
44 |
|
|
|
13.6 |
% |
|
|
50 |
|
|
|
45 |
|
|
|
11.1 |
% |
Aviara |
|
|
370 |
|
|
|
363 |
|
|
|
1.9 |
% |
|
|
389 |
|
|
|
347 |
|
|
|
12.1 |
% |
Consolidated |
|
|
113 |
|
|
|
101 |
|
|
|
11.9 |
% |
|
|
104 |
|
|
|
94 |
|
|
|
10.6 |
% |
Gross margin |
|
|
25.8 |
% |
|
|
29.0 |
% |
|
|
(320) bps |
|
|
|
25.6 |
% |
|
|
26.2 |
% |
|
|
(60) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
EBITDA, Adjusted EBITDA, EBITDA Margin, and
Adjusted EBITDA Margin
We define EBITDA as net income from continuing
operations, before interest, income taxes, depreciation and
amortization. We define Adjusted EBITDA as EBITDA further adjusted
to eliminate certain non-cash charges or other items that we do not
consider to be indicative of our core and/or ongoing operations.
For the periods presented herein, these adjustments include
share-based compensation, business development consulting costs,
and goodwill impairment, as described in more detail below. We
define EBITDA margin and Adjusted EBITDA margin as EBITDA and
Adjusted EBITDA, respectively, each expressed as a percentage of
net sales.
Adjusted Net Income and Adjusted Net Income per
share
We define Adjusted Net Income and Adjusted Net
Income per share as net income from continuing operations, adjusted
to eliminate certain non-cash charges or other items that we do not
consider to be indicative of our core and/or ongoing operations and
reflecting income tax expense on adjusted net income before income
taxes at our estimated annual effective tax rate. For the periods
presented herein, these adjustments include other intangible asset
amortization, share-based compensation, business development
consulting costs, and goodwill impairment.
EBITDA, Adjusted EBITDA, EBITDA margin, Adjusted
EBITDA margin, Adjusted Net Income, and Adjusted Net Income per
share, which we refer to collectively as the Non-GAAP Measures, are
not measures of net income or operating income as determined under
accounting principles generally accepted in the United States, or
U.S. GAAP. The Non-GAAP Measures are not measures of performance in
accordance with U.S. GAAP and should not be considered as an
alternative to net income, net income per share, or operating cash
flows determined in accordance with U.S. GAAP. Additionally,
Adjusted EBITDA is not intended to be a measure of cash flow. We
believe that the inclusion of the Non-GAAP Measures is appropriate
to provide additional information to investors because securities
analysts and investors use the Non-GAAP Measures to assess our
operating performance across periods on a consistent basis and to
evaluate the relative risk of an investment in our securities. We
use Adjusted Net Income and Adjusted Net Income per share to
facilitate a comparison of our operating performance on a
consistent basis from period to period that, when viewed in
combination with our results prepared in accordance with U.S. GAAP,
provides a more complete understanding of factors and trends
affecting our business than does U.S. GAAP measures alone. We
believe Adjusted Net Income and Adjusted Net Income per share
assists our board of directors, management, investors, and other
users of the financial statements in comparing our net income on a
consistent basis from period to period because it removes certain
non-cash items and other items that we do not consider to be
indicative of our core and/or ongoing operations and reflecting
income tax expense on adjusted net income before income taxes at
our estimated annual effective tax rate. The Non-GAAP Measures have
limitations as an analytical tool and should not be considered in
isolation or as a substitute for analysis of our results as
reported under U.S. GAAP. Some of these limitations are:
- Although depreciation and
amortization are non-cash charges, the assets being depreciated and
amortized will often have to be replaced in the future and the
Non-GAAP Measures do not reflect any cash requirements for such
replacements;
- The Non-GAAP Measures do not
reflect our cash expenditures, or future requirements for capital
expenditures or contractual commitments;
- The Non-GAAP Measures do not
reflect changes in, or cash requirements for, our working capital
needs;
- The Non-GAAP Measures do not
reflect our tax expense or any cash requirements to pay income
taxes;
- The Non-GAAP Measures do not
reflect interest expense, or the cash requirements necessary to
service interest payments on our indebtedness; and
- The Non-GAAP Measures do not
reflect the impact of earnings or charges resulting from matters we
do not consider to be indicative of our core and/or ongoing
operations, but may nonetheless have a material impact on our
results of operations.
In addition, because not all companies use
identical calculations, our presentation of the Non-GAAP Measures
may not be comparable to similarly titled measures of other
companies, including companies in our industry.
Beginning in the first quarter of fiscal 2023,
due to the effects of discontinued operations, as discussed above,
the Company's non-GAAP financial measures are presented on a
continuing operations basis, for all periods presented.
We do not provide forward-looking guidance for
certain financial measures on a U.S. GAAP basis because we are
unable to predict certain items contained in the U.S. GAAP measures
without unreasonable efforts. These items may include
acquisition-related costs, litigation charges or settlements,
impairment charges, and certain other unusual adjustments.
The following table presents a reconciliation of net income from
continuing operations as determined in accordance with U.S. GAAP to
EBITDA and Adjusted EBITDA, and net income from continuing
operations margin to EBITDA margin and Adjusted EBITDA margin (each
expressed as a percentage of net sales) for the periods
indicated:
|
(Dollars in thousands, except
per share data) |
|
Three Months Ended |
|
For the Years Ended |
|
|
June 30, |
|
|
% of Net |
|
June 30, |
|
|
% of Net |
|
June 30, |
|
|
% of Net |
|
June 30, |
|
|
% of Net |
|
|
2023 |
|
|
sales |
|
2022 |
|
|
sales |
|
2023 |
|
|
sales |
|
2022 |
|
|
sales |
Net income from continuing operations |
|
$ |
23,052 |
|
|
13.8 |
% |
|
$ |
33,548 |
|
|
17.0 |
% |
|
$ |
90,452 |
|
|
13.7 |
% |
|
$ |
87,945 |
|
|
13.7 |
% |
Income tax expense |
|
|
6,782 |
|
|
|
|
|
10,652 |
|
|
|
|
|
27,135 |
|
|
|
|
|
26,779 |
|
|
|
Interest expense |
|
|
756 |
|
|
|
|
|
392 |
|
|
|
|
|
2,679 |
|
|
|
|
|
1,471 |
|
|
|
Interest income |
|
|
(1,384 |
) |
|
|
|
|
— |
|
|
|
|
|
(3,351 |
) |
|
|
|
|
— |
|
|
|
Depreciation and
amortization |
|
|
2,736 |
|
|
|
|
|
2,402 |
|
|
|
|
|
10,569 |
|
|
|
|
|
9,731 |
|
|
|
EBITDA |
|
|
31,942 |
|
|
19.2 |
% |
|
|
46,994 |
|
|
23.8 |
% |
|
|
127,484 |
|
|
19.3 |
% |
|
|
125,926 |
|
|
19.6 |
% |
Share-based compensation |
|
|
765 |
|
|
|
|
|
582 |
|
|
|
|
|
3,656 |
|
|
|
|
|
3,510 |
|
|
|
Business development
consulting costs(a) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
312 |
|
|
|
|
|
— |
|
|
|
Goodwill impairment(b) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,100 |
|
|
|
Adjusted
EBITDA |
|
$ |
32,707 |
|
|
19.6 |
% |
|
$ |
47,576 |
|
|
24.1 |
% |
|
$ |
131,452 |
|
|
19.9 |
% |
|
$ |
130,536 |
|
|
20.3 |
% |
|
The following table sets forth a reconciliation of net income
from continuing operations as determined in accordance with U.S.
GAAP to Adjusted Net Income for the periods indicated:
|
|
Three Months Ended |
|
|
For the Years Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(Dollars in thousands) |
|
|
(Dollars in thousands) |
|
Net income from continuing operations |
|
$ |
23,052 |
|
|
$ |
33,548 |
|
|
$ |
90,452 |
|
|
$ |
87,945 |
|
Income tax expense |
|
|
6,782 |
|
|
|
10,652 |
|
|
|
27,135 |
|
|
|
26,779 |
|
Amortization of acquisition
intangibles |
|
|
462 |
|
|
|
462 |
|
|
|
1,849 |
|
|
|
1,849 |
|
Share-based compensation |
|
|
765 |
|
|
|
582 |
|
|
|
3,656 |
|
|
|
3,510 |
|
Business development
consulting costs(a) |
|
|
— |
|
|
|
— |
|
|
|
312 |
|
|
|
— |
|
Goodwill impairment(b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,100 |
|
Adjusted Net Income before
income taxes |
|
|
31,061 |
|
|
|
45,244 |
|
|
|
123,404 |
|
|
|
121,183 |
|
Adjusted income tax
expense(c) |
|
|
7,144 |
|
|
|
10,406 |
|
|
|
28,383 |
|
|
|
27,872 |
|
Adjusted Net
Income |
|
$ |
23,917 |
|
|
$ |
34,838 |
|
|
$ |
95,021 |
|
|
$ |
93,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.38 |
|
|
$ |
1.94 |
|
|
$ |
5.39 |
|
|
$ |
5.06 |
|
Diluted |
|
$ |
1.37 |
|
|
$ |
1.92 |
|
|
$ |
5.35 |
|
|
$ |
5.01 |
|
Weighted average shares used
for the computation of (d): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic Adjusted net income per share |
|
|
17,299,562 |
|
|
|
17,952,267 |
|
|
|
17,618,797 |
|
|
|
18,455,226 |
|
Diluted Adjusted net income per share |
|
|
17,505,504 |
|
|
|
18,155,449 |
|
|
|
17,765,117 |
|
|
|
18,636,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the reconciliation of net income
from continuing operations per diluted share to Adjusted Net Income
per diluted share for the periods presented:
|
|
Three Months Ended |
|
|
For the Years Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income from continuing operations per diluted
share |
|
$ |
1.32 |
|
|
$ |
1.85 |
|
|
$ |
5.09 |
|
|
$ |
4.72 |
|
Impact of adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
0.39 |
|
|
|
0.59 |
|
|
|
1.53 |
|
|
|
1.44 |
|
Amortization of acquisition intangibles |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.10 |
|
|
|
0.10 |
|
Share-based compensation |
|
|
0.04 |
|
|
|
0.03 |
|
|
|
0.21 |
|
|
|
0.19 |
|
Business development consulting costs(a) |
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Goodwill impairment(b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
Adjusted Net Income per diluted share before income taxes |
|
|
1.78 |
|
|
|
2.50 |
|
|
|
6.95 |
|
|
|
6.51 |
|
Impact of adjusted income tax expense on net income per diluted
share before income taxes(c) |
|
|
(0.41 |
) |
|
|
(0.58 |
) |
|
|
(1.60 |
) |
|
|
(1.50 |
) |
Adjusted Net Income
per diluted share |
|
$ |
1.37 |
|
|
$ |
1.92 |
|
|
$ |
5.35 |
|
|
$ |
5.01 |
|
(a) |
|
Represents non-recurring third-party costs associated with business
development activities, primarily relating to consulting costs for
evaluation and execution of internal growth and other strategic
initiatives. The evaluation and execution of the internal growth
and other strategic initiatives is a bespoke initiative, and the
costs associated therewith do not constitute normal reoccurring
cash operating expenses necessary to operate the Company's
business. |
(b) |
|
Represents a non-cash charge recorded in the Aviara segment for
impairment of goodwill. |
(c) |
|
Reflects income tax expense at an income tax rate of 23.0% for each
period presented. |
(d) |
|
Represents the Weighted Average Shares used for the computation of
Basic and Diluted earnings per share as presented on the
Consolidated Statements of Operations to calculate Adjusted Net
Income per diluted share for all periods presented herein. |
|
|
|
Investor Contact:MasterCraft Boat Holdings,
Inc.Bobby Potter Vice President of Strategy and Investor Relations
Email: investorrelations@mastercraft.com
Grafico Azioni MasterCraft Boat (NASDAQ:MCFT)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni MasterCraft Boat (NASDAQ:MCFT)
Storico
Da Mag 2023 a Mag 2024