MasterCraft approves stock-buyback program

The board has authorized a stock repurchase program of as much as $15 million.
Author:
Updated:
Original:

MCBC Holdings, the parent of MasterCraft Boat Co., said today that its board authorized share repurchase activities using a portion of the company’s growing cash balance.

“The board and senior management strongly believe that MasterCraft’s free cash flow, growth prospects and long-term strategy are not reflected by the company’s current stock price,” MasterCraft board chairman Frederick Brightbill said in a statement.

The board has authorized a stock repurchase program of as much as $15 million under which the company can repurchase common shares from time to time in open-market purchases, accelerated share repurchase transactions or privately negotiated transactions, in each case subject to market conditions and other factors.

The company said the program is effective immediately and can be utilized through the end of fiscal 2017.

“MasterCraft has delivered a solid fiscal 2016 first half, and we expect to continue to drive profitable organic growth and generate free cash flow for the remainder of fiscal 2016,” Brightbill said.

“Furthermore, we have a strong balance sheet with no outstanding debt and significant liquidity. Therefore, the board has concluded that a share repurchase program is a prudent use of cash at this time.”

As part of the stock repurchase program, the board said it has authorized the company to purchase 362,094 shares of common stock for an aggregate purchase price of $4.1 million from certain members of the company’s senior management, who are selling the shares to satisfy tax liabilities related to the vesting of restricted stock.

As disclosed in the company’s registration statement related to its July 2015 IPO, prior to the IPO certain members of senior management were awarded shares of restricted stock, which vested in January.

Related

NMMA Confirms Industry Growth

NMMA president Frank Hugelmeyer said the boating business grew 12 percent last year during yesterday’s virtual State of the Boating Industry address.

Newport Show Dates Announced

Organizers are planning for an in-person Golden Anniversary edition of the show Sept. 16-19.

Quick Hits: March 5, 2021

The National Association of Manufacturers names Brunswick Corp. CFO Ryan Gwillim to its Board of Directors.

Caught Red-Handed

Two commercial fishermen were jailed for possessing an illegal haul that included 100 undersized lobster tails, which is a felony. Also, fisheries management gets new funding.

Bennington Expands Operations

The pontoon builder plans to add jobs at its new facility in Elkhart County, Ind., and increase manufacturing output.

KVH Industries Names CFO

Longtime telecom financial executive Roger A. Kuebel assumes the position that COO Brent Bruun had held in an interim capacity.