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Mar 29, 2020
MasterCraft Q3 2020 Earnings Report
MasterCraft's third quarter results were impacted by COVID-19 pandemic and proactive measures to reduce production, partially offset by the addition of Aviara brand.
Key Takeaways
MasterCraft Boat Holdings Inc. reported a decrease in net sales to $102.6 million, a GAAP diluted net loss of $(36.7) million or $(1.96) per share, and a diluted Adjusted Net Income per share of $0.46. The company pulled back production and suspended it in late March in response to the COVID-19 pandemic.
Net sales for the third quarter decreased to $102.6 million, down 20.1 percent from the prior-year period.
GAAP diluted net loss was $(36.7) million or $(1.96) per share, including $56.4 million of noncash goodwill and other intangible asset impairment charges.
Diluted Adjusted Net Income per share was $0.46 compared to $0.78 in the prior-year period.
Adjusted EBITDA declined 36.2 percent to $14.0 million from $21.9 million in the prior-year period.
Revenue by Segment
Forward Guidance
MasterCraft withdrew its fiscal 2020 guidance due to the economic uncertainty around the business impact of the COVID-19 pandemic. The company will revisit its decision to provide detailed sales and earnings guidance when visibility to accurately estimate its future results improves.
Positive Outlook
- Implemented a plan to manage through the near-term headwinds.
- Position the Company for success as the economy begins to re-open.
- Steps taken during the pandemic, including the enhanced financial flexibility gained from cost-cutting measures.
- Proposed amendment to credit facility will position MasterCraft for success throughout the transition and beyond.
- Anticipate that we will finalize the proposed credit amendment later this week, which will include temporary relief under our financial covenants.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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