Wed, May 7, 1:49 PM (6 days ago)
### MasterCraft Boat Holdings, Inc. (MCFT) Q1 2025 Financial Summary **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $75,960,000, down 9.5% from $83,977,000 in Q1 2024. This decline was due to planned lower unit volumes and changes in price, partially offset by favorable model mix and options sales. - **Profit Margins:** Gross margin declined by 250 basis points to 20.8% in Q1 2025 from 23.3% in Q1 2024. This was due to lower cost absorption driven by decreased production volume and increased material and overhead inflation. - **Operating Income:** Operating income decreased by 39.1% to $4,114,000 in Q1 2025 from $6,752,000 in Q1 2024. This decline was primarily due to lower net sales and increased materials and overhead inflation. - **Net Income:** Net income was $3,743,000 in Q1 2025, slightly down from $3,755,000 in Q1 2024. This was impacted by a $78,000 loss from discontinued operations. - **Cash Flow:** Net cash provided by operating activities was $15,149,000 in Q1 2025, down from $22,320,000 in Q1 2024. This decline was due to lower net income and changes in working capital. **Segment Performance:** - **MasterCraft Segment:** Revenue decreased by 8.0% to $64,227,000 in Q1 2025. Operating income decreased by 23.9% to $5,792,000. - **Pontoon Segment:** Revenue decreased by 17.3% to $11,733,000 in Q1 2025. Operating loss increased by 94.2% to $(1,678,000). **Trends and Uncertainties:** - **Market Uncertainty:** The company continued to navigate market and economic uncertainty, which is expected to persist through the end of the fiscal year. - **Tariffs and Trade:** The company is closely monitoring the evolving tariff landscape and working to mitigate risks. The impact of tariffs on the company's business is highly uncertain. - **Leadership Transition:** The CFO announced his retirement, effective December 31, 2025, with a transition planned for June 30, 2025. **Future Operations Impact:** - **Share Repurchase Program:** The company repurchased $5.0 million of its common stock during the first nine months of fiscal 2025, with $30.4 million remaining under the program. - **Debt Management:** The company had no amounts outstanding under the Revolving Credit Facility as of March 30, 2025, leaving $100.0 million of available borrowing capacity. **Conclusion:** MasterCraft Boat Holdings, Inc. faced challenges in Q1 2025 due to market uncertainty, tariffs, and increased costs. However, the company is taking steps to mitigate these issues and maintain liquidity. The upcoming leadership transition and share repurchase program are key factors to watch in the coming quarters.