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Oct 01, 2023
MasterCraft Q1 2024 Earnings Report
Reported a decrease in net sales and earnings due to lower unit volume and increased dealer incentives, but performed better than expected amid macroeconomic uncertainty.
Key Takeaways
MasterCraft Boat Holdings, Inc. reported a decrease in net sales to $104.2 million, a 38.5% decrease from the prior-year period. Net income from continuing operations was $7.1 million, or $0.41 per diluted share. The company focused on rebalancing dealer inventories with anticipated retail demand and maintained a disciplined approach to capital allocation, including share repurchases of $5.8 million during the quarter.
Net sales decreased to $104.2 million, a 38.5% decrease from the prior-year period.
Net income from continuing operations was $7.1 million, or $0.41 per diluted share.
Diluted Adjusted Net Income per share was $0.47, a 67.1% decrease.
The company ended the quarter with cash and investments of $90.0 million.
Revenue by Segment
Forward Guidance
For the second quarter of fiscal 2024, consolidated net sales is expected to be approximately $96 million, with Adjusted EBITDA of approximately $7 million, and Adjusted Net Income per diluted share of approximately $0.22. For full year fiscal 2024, the company continues to expect consolidated net sales to be between $390 million and $420 million, with Adjusted EBITDA between $42 million and $52 million, and Adjusted Net Income per diluted share of between $1.46 and $1.88. We continue to expect capital expenditures to be approximately $22 million for the full year.
Challenges Ahead
- Macroeconomic factors, including interest rates which could remain elevated for some time, are adversely impacting the demand for recreational boats and other luxury consumer goods.
- The potential for a broader economic downturn during fiscal 2024 could worsen this headwind for the industry.
- Political and geopolitical risks are creating uncertainties that weigh on consumer confidence.
- Dynamic macroeconomic and geopolitical backdrop is limiting retail demand visibility.
- Planned for a range of potential retail demand scenarios.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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