MasterCraft Boat Holdings, Inc. (MCFT) shares rallied 13.9% in the last trading session to close at $16.75. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.8% loss over the past four weeks.Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, MasterCraft Boat shares soared, reflecting renewed investor optimism. This sport boats maker is expected to post quarterly e ...

VONORE, Tenn., April 07, 2025 (GLOBE NEWSWIRE) -- MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) (the "Company"), today announced that Tim Oxley, Chief Financial Officer, has decided to retire from the Company, effective December 31, 2025. Scott Kent, Vice President of Finance, will succeed Mr. Oxley as Chief Financial Officer, effective July 1, 2025. Mr. Oxley will transition to serve as a special advisor to the executive team/Board from July 1, 2025 until December 31, 2025, to ensure a smooth transition of ...

Core Insights - MasterCraft Boat Company is launching the Rule the Water Demo Tour to showcase its new XStar lineup, which has received the NMMA Innovation Award [1][2] - The 2025 XStar lineup features advanced audio systems and design elements, enhancing the overall boating experience [2] - The tour will cover 57 stops across key markets, allowing potential customers to test drive the new models and explore the full range of MasterCraft boats [3] Company Overview - MasterCraft is recognized as a leading innovator in the premium performance sport boat industry, with a history of over five decades in manufacturing [5] - MasterCraft Boat Holdings, Inc. operates under three brands: MasterCraft, Crest, and Balise, and is headquartered in Vonore, TN [6]

Core Insights - MasterCraft Boat Company is launching the fifth annual 'Let Her Rip' campaign to empower women and girls in watersports [1][2] - The campaign will feature seven stops across the U.S., including new locations, and aims to foster inclusivity in the sport [2][4] - The initiative is supported by Progressive Insurance and Chevrolet, highlighting a commitment to female-focused programs [4][3] Company Overview - MasterCraft is a leading innovator and manufacturer of premium performance sport boats, established in 1968 [5][7] - The company focuses on building high-quality ski, wakeboard, wake surf, and luxury performance powerboats [5][7] Campaign Details - The 'Let Her Rip' campaign will take place from May through July 2025, with clinics led by professional female athletes [4][6] - The seven-stop tour includes locations such as Hot Springs, AR, Denver, CO, and Lake Tahoe, CA [6][4] - The program aims to provide hands-on instruction in boat driving and watersports techniques, catering to all skill levels [3][4]

Core Viewpoint - MasterCraft Boat Holdings, Inc. has appointed Mike O'Connell as the President of the Company's Pontoon Segment, effective immediately, succeeding George Steinbarger who has left the company [1][3]. Group 1: Leadership Changes - Mike O'Connell, a nearly 40-year veteran of the marine industry, is well-prepared to lead the Pontoon segment, having previously served as President of Aviara Boats and held leadership roles at Godfrey pontoons and Hurricane deck boats [2]. - The CEO of MasterCraft, Brad Nelson, expressed confidence in O'Connell's leadership abilities and highlighted the importance of his role in navigating a challenging retail environment [3]. Group 2: Strategic Focus - The company aims to position its Crest and Balise brands to capitalize on consumer interest as it approaches the critical summer selling season [3]. - O'Connell emphasized the potential of the newly launched Balise product line and the leadership position of Crest in the pontoon industry, indicating a focus on long-term growth and success [3]. Group 3: Company Overview - MasterCraft Boat Holdings, Inc. is headquartered in Vonore, TN, and is a leading innovator, designer, manufacturer, and marketer of premium recreational powerboats through its brands: MasterCraft, Crest, and Balise [4]. - The company holds leading market share positions in two of the fastest-growing segments of the powerboat industry: performance sport boats and pontoon boats [4].

Core Viewpoint - MasterCraft Boat Holdings, Inc. has appointed Mike O'Connell as President of the Company's Pontoon Segment, effective immediately, succeeding George Steinbarger who has left the company [1][3]. Company Leadership - Mike O'Connell brings nearly 40 years of experience in the marine industry and has previously held leadership roles at various boat companies, including President of Godfrey pontoons and Hurricane deck boats [2]. - O'Connell joined MasterCraft in 2023 as President of Aviara Boats and is recognized as a proven leader in the industry [2]. Strategic Focus - The CEO of MasterCraft, Brad Nelson, emphasized the importance of O'Connell's leadership in navigating a challenging retail environment and positioning the Crest and Balise brands for growth during the upcoming summer selling season [3]. - O'Connell expressed enthusiasm for leading the Pontoon segment and highlighted the potential of the newly launched Balise product line, indicating a focus on long-term growth and success [3]. Company Overview - MasterCraft Boat Holdings, Inc. is headquartered in Vonore, TN, and is a leading innovator in the design, manufacturing, and marketing of premium recreational powerboats through its brands: MasterCraft, Crest, and Balise [4]. - The company holds significant market share in two rapidly growing segments of the powerboat industry: performance sport boats and pontoon boats [4].

Core Insights - MasterCraft Boat Company has partnered with Action Water Sports to expand its dealer network in the Dallas-Fort Worth market, the largest towboat market in the U.S. [1][4] - This partnership aims to provide local boating enthusiasts with access to MasterCraft's high-performance boats and exceptional customer service [2][3] Company Overview - MasterCraft is a leading innovator and manufacturer of premium performance sport boats, with a history of over 50 years in the industry [6] - The company operates under MasterCraft Boat Holdings, Inc., which also includes brands like Crest and Balise, holding significant market shares in performance sport boats and pontoon boats [7] Partnership Details - Action Water Sports will offer the full lineup of MasterCraft boats, including on-water demonstrations and comprehensive service [2][4] - The partnership is expected to enhance customer experiences and solidify MasterCraft's position as the leading towboat brand [4][3] Market Impact - The collaboration is seen as a strategic move to strengthen MasterCraft's presence in key markets, ensuring customers have access to high-quality boats and superior service [4][3] - The partnership aligns with MasterCraft's commitment to innovation and customer satisfaction, aiming to create lasting memories for families on the water [3][4]

Financial Data and Key Metrics Changes - For Q2 2025, net sales were $63.4 million, a decrease of $26.4 million or 29% compared to the prior year period, primarily due to planned lower volume and unfavorable model mix [24] - Gross margin decreased to 17.2% from 23.3% in the prior year, attributed to lower cost absorption from the production decrease [24] - Adjusted net income for the quarter was $1.7 million, or $0.10 per diluted share, down from $9.5 million, or $0.55 per diluted share in the prior year [26] - Adjusted EBITDA was $3.5 million, compared to $12.9 million in the prior year, with an adjusted EBITDA margin of 5.6% compared to 14.4% [26] - The company ended the quarter with nearly $63 million in cash and short-term investments, with no debt [27] Business Line Data and Key Metrics Changes - The MasterCraft segment performed well at various boat shows, with strong demand for the newly launched XStar product line, which is expected to drive significant earnings and free cash flow in the second half [13][16] - The Pontoon segment faced softening retail due to higher interest rates, leading to elevated aged inventory levels, but pipeline management has been a key focus [19] - Early boat show results for the Crest brand were mixed, but there was encouraging performance at the Minneapolis and Chicago shows [20] Market Data and Key Metrics Changes - Dealer inventories were reduced by more than 30% year-over-year, reflecting aggressive inventory management [10] - The overall retail environment showed mixed economic conditions and geopolitical uncertainty, impacting typical second quarter seasonality [10] - The company expects retail to be down between 5% and 10% for the year, consistent with year-to-date performance [56] Company Strategy and Development Direction - The company is focused on destocking filled inventories and has narrowed its full-year guidance range due to strong second-quarter performance and the promising launch of the XStar product line [9][30] - The strategy includes investing in consumer-centric brands and maintaining a flexible operating model to mitigate risks [8] - The company aims to capitalize on market recovery by improving distribution and expanding geographic coverage [50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about retail trends despite ongoing macroeconomic uncertainty, noting improving dealer health as the summer selling season approaches [32] - The company is positioned well for sustained long-term success, with a strong balance sheet and robust cash flow generation [32] - Management highlighted the importance of monitoring trade dynamics and their potential impact on retail customer sentiment [12] Other Important Information - The sale of the Merritt Island facility closed as expected, generating over $26 million in net cash proceeds, enhancing financial flexibility [21] - The company has spent nearly $750,000 to repurchase approximately 40,000 shares of common stock during the quarter [28] Q&A Session Summary Question: Update on channel inventory progress - Management indicated modest channel increases in Q2, with expectations to end the year within the targeted range of 600 to 1,000 boats [35][36] Question: ASP decline for MasterCraft - Management noted a mixed issue with pricing adjustments on certain models to address affordability, expecting a better mix with the ramp-up of XStar production [37][39] Question: Strategic growth initiatives - Management emphasized a focus on executing within brands, improving distribution, and maintaining a strong balance sheet while returning capital to shareholders [42][46] Question: Industry retail assumptions and consumer sentiment - Management confirmed expectations of a 5% to 10% decline in retail, with positive demand for the XStar despite economic challenges [56][58] Question: Competitor performance and dealer inventories - Management believes they have had a more successful boat show season than competitors, with ongoing discounting in a tough market [65][66]

Financial Performance - Net sales decreased by $26.4 million (29.4%) in Q2 2025 and $55.3 million (30.1%) in the first half of fiscal 2025 compared to the same periods in fiscal 2024, primarily due to planned lower unit volumes and unfavorable model mix [81]. - Gross margin percentage declined by 610 basis points in Q2 2025 and 600 basis points in the first half of fiscal 2025 compared to the prior-year periods, attributed to unfavorable model mix and lower cost absorption from decreased production volume [82]. - MasterCraft segment net sales fell by $17.6 million (24.2%) in Q2 2025 and $37.9 million (25.5%) in the first half of fiscal 2025 compared to the same prior-year periods, driven by lower unit volume and unfavorable model mix [83]. - Consolidated unit sales volume decreased by 303 units (35.4%) in Q2 2025 and 608 units (35.5%) in the first half of fiscal 2025 compared to the same prior-year periods [81]. - Operating income for continuing operations dropped to $186,000 in Q2 2025, a decrease of 98.3%, and $1.19 million in the first half of fiscal 2025, down 94.4% compared to the prior-year periods [81]. - Operating income decreased by $6.9 million and $13.5 million during the second quarter and first half of fiscal 2025, respectively, primarily due to decreased net sales [84]. - Net sales decreased by $8.8 million and $17.4 million during the second quarter and first half of fiscal 2025, respectively, mainly due to lower unit volumes and increased dealer incentives [85]. - Operating loss for the second quarter and first half of fiscal 2025 was $3.2 million and $5.9 million, respectively, compared to operating income of $0.5 million and $0.7 million in the same prior year periods [86]. Production and Inventory Management - The company adjusted production levels at the beginning of fiscal 2025 to improve dealer inventory, resulting in decreased net sales and reduced gross margins compared to fiscal 2024 [80]. - The company remains committed to aligning production levels with market demand while maintaining operational flexibility despite economic and industry headwinds [80]. - The MasterCraft segment's unit sales volume decreased by 91 units (18.5%) in Q2 2025 and 211 units (21.4%) in the first half of fiscal 2025 compared to the same prior-year periods [83]. Cash Flow and Debt Management - Cash and cash equivalents totaled $34.3 million as of December 29, 2024, an increase of $26.9 million from $7.4 million as of June 30, 2024 [96]. - Total debt as of June 30, 2024, was $49.3 million, with no amounts outstanding as of December 29, 2024 [96]. - As of December 29, 2024, the company had no amounts outstanding under the Revolving Credit Facility, with $100.0 million of available borrowing capacity [97]. - For the six months ended December 29, 2024, net cash provided by operating activities was $13.4 million, a decrease from $22.4 million for the same period in 2023 [100][103]. - Net cash provided by investing activities for the six months ended December 29, 2024 was $46.3 million, significantly higher than $15.2 million for the same period in 2023 [101][104]. - Net cash used in financing activities was $54.2 million for the six months ended December 29, 2024, compared to $14.1 million for the same period in 2023 [102][104]. - The company reported a net change in cash and cash equivalents from continuing operations of $5.5 million for the six months ended December 29, 2024, down from $23.4 million in the prior year [99]. Shareholder Returns and Capital Expenditures - The company repurchased 223,222 shares of common stock for $4.2 million during the six months ended December 29, 2024 [98]. - The company’s capital expenditures for the six months ended December 29, 2024 amounted to $4.6 million, focused on tooling, information technology, and machinery [101]. Market and Risk Management - The company did not have any off-balance sheet financing arrangements as of December 29, 2024 [105]. - There were no significant changes in critical accounting estimates or policies as of December 29, 2024 [106]. - The company’s market risk profile remained unchanged from the previous disclosures in the 2024 Annual Report [107].

Core Viewpoint - MasterCraft Boat Holdings, Inc. reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, representing an earnings surprise of 1,100% [1] - The company has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - MasterCraft reported revenues of $63.37 million for the quarter ended December 2024, which is 3.37% above the Zacks Consensus Estimate, but down from $99.48 million year-over-year [2] - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $79.5 million, and for the current fiscal year, it is $0.69 on revenues of $288.45 million [7] Market Performance - Shares of MasterCraft have declined approximately 4.3% since the beginning of the year, contrasting with the S&P 500's gain of 3.1% [3] - The company's stock is currently rated Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Leisure and Recreation Products industry, to which MasterCraft belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of MasterCraft's stock may be influenced by the overall outlook for the industry [8]