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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.
MasterCraft
MasterCraft
MasterCraft Revenue by Segment
Revenue by Segment
MasterCraft Revenue
CapyFin.com 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.