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Jun 30, 2023
MasterCraft Q4 2023 Earnings Report
MasterCraft Boat Holdings reported a decrease in net sales and net income compared to the prior-year period, while facing headwinds from slowing retail sales and higher dealer inventories.
Key Takeaways
MasterCraft Boat Holdings reported a decrease in net sales and net income for the fourth quarter of fiscal year 2023. Net sales decreased by 15.5% to $166.6 million, and net income decreased by 31.2% to $23.1 million, or $1.32 per diluted share. The company faced challenges from slowing retail sales, higher dealer inventories, and macroeconomic uncertainties.
Net sales for the fourth quarter decreased by 15.5% year-over-year to $166.6 million.
Net income from continuing operations decreased by 31.2% year-over-year to $23.1 million, or $1.32 per diluted share.
Adjusted EBITDA decreased by 31.3% year-over-year to $32.7 million.
Dealer inventories ended fiscal 2023 at levels higher than optimal due to slowing retail sales.
MasterCraft
MasterCraft
MasterCraft Revenue by Segment
Revenue by Segment
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CapyFin.com Forward Guidance
MasterCraft anticipates lower wholesale unit sales for fiscal year 2024, driven by macroeconomic factors and an uncertain economic outlook. The company expects consolidated net sales to be between $390 million and $420 million, with Adjusted EBITDA between $42 million and $52 million, and Adjusted Earnings per share between $1.46 and $1.88.
Positive Outlook
- Flexible, highly-variable cost structure.
- Proactive cost control efforts.
- Plans for a range of potential retail demand scenarios.
- Production plans will allow us to rebalance dealer inventories with anticipated retail demand and keep our pipeline healthy.
- Expect to generate positive free cash flow
Challenges Ahead
- Macroeconomic factors, including elevated interest rates, are creating significant uncertainty.
- Tightening credit standards and availability are limiting retail demand visibility.
- General expectation for an economic downturn during fiscal 2024 will likely be a headwind for the industry.
- Wholesale unit sales for fiscal 2024 will be lower than projected retail sales.
- Industry retail unit sales could be down as much as mid-teens percent for fiscal year 2024.