For the third consecutive quarter, MasterCraft Boat Holdings reported record results, with its fiscal Q3 delivering the most profitable quarter in company history.
Net sales were up 44 percent to an all-time high of $147.9 million, from $102.6 million for the quarter in the previous year.
Driven by robust sales volumes, higher prices and a relative lack of dealer incentives due to strong demand, MasterCraft said gross profit for the quarter surged 75 percent to $37.2 million, compared with $21.3 million for third quarter a year prior.
MasterCraft also reported a 122 percent jump in adjusted net income to $19.1 million ($1.01 per diluted share), up from $8.6 million ($0.46 per diluted share) in the prior-year period.
“We are pleased by the progress we made during the first three quarters of fiscal 2021 to accelerate production, efficiently manage our supply chain to meet increased consumer demand, and to generate record earnings in each of our first three quarters of fiscal 2021,” chairman and CEO Fred Brightbill said during a conference call to discuss the results.
Brightbill cited concerns with labor and the supply chain that MasterCraft was mostly able to avoid, and he expects these issues to ease through the summer and into next year.
“We did not have to shut down any of our facilities as a result of the resin shortage that has impacted the boating industry,” Brightbill said. “At each of our facilities, we are running at record production rates and will continue to increase production to meet the robust retail demand.”
MasterCraft said the costs associated with moving its Aviara brand to a new Merritt Island facility did impact gross margin for the quarter. However, Brightbill said, “Aviara’s retail performance continues to exceed expectations,” with an order book that’s sold out for the remainder of the year.
The company raised its outlook for the full fiscal year, forecasting robust sales to push its consolidated net sales growth to near 40 percent, with strong increases in adjusted earnings per share and EBITDA margins.
“Strong retail demand across all our brands continued in our fiscal third quarter, resulting in a record wholesale backlog that provides us with great confidence in our outlook and ability to create long-term shareholder value,” Brightbill said.