Fri, Aug 30, 10:05 AM (137 days ago)
MasterCraft Boat Holdings, Inc. reported a significant decline in financial performance for the fiscal year ending June 30, 2024, with net sales dropping 44.6% to $366.6 million, primarily due to decreased unit sales and increased dealer incentives. Gross profit also fell sharply by 60.5%, leading to an operating income of $7.6 million, down 93.5% from the previous year. The company recognized a $9.8 million impairment charge related to its Aviara segment, which is set to be classified as discontinued operations following an asset exchange agreement with MarineMax expected to close in Q1 FY2025. Earnings per share fell to $0.46 from $3.91, reflecting the steep decline in profitability. The company’s liquidity remains stable, with $7.4 million in cash and no outstanding amounts on its revolving credit facility. However, it faces risks from market volatility, rising interest rates, and supply chain disruptions. The strategic shift to discontinue Aviara operations is aimed at reallocating resources more effectively, but the company must navigate a challenging economic landscape to regain stability and growth.