MasterCraft reported lower fourth-quarter net sales, but increases in profit and gross margin.
Gross margin rose to 26.3 percent for the quarter that ended June 30, which the company said was a 300-basis-point improvement from the prior year.
Net income for the quarter was $4.8 million, up from $2.5 million the previous year, and diluted earnings per share grew 23.8 percent, to 26 cents.
Net sales for the quarter were down $1.5 million, or 2.7 percent, at $53.4 million, from $54.9 million in the prior-year period.
MasterCraft-only net sales for the quarter, which exclude the terminated Hydra-Sports manufacturing contract from the prior year, increased $2.6 million, or 5.2 percent, to $53.4 million from $50.8 million in the prior-year period. The company said the increase was primarily attributable to a rise in unit volume of 37 units, or 5.9 percent.”
“We ended the year with continued momentum, delivering strong top- and bottom-line results,” MasterCraft president and CEO Terry McNew said in a statement. “Our core MasterCraft business continues to perform and, with our relentless focus on operational excellence and continuous improvement, we’re driving further efficiency gains.”
“Moreover, we continue to innovate as a company,” McNew said. “Examples during the fourth quarter include the launch of our new Dockstar Handling System, which we believe is a revolutionary product feature, as well as the XT23, which we think is a category-defying crossover boat. We will continue MasterCraft’s innovation leadership in fiscal 2017 with the introduction of three additional new models and a number of exciting new product features.”
Net sales for the full fiscal year were up $7.2 million, or 3.4 percent, at $221.6 million, compared with $214.4 million in the prior fiscal year. MasterCraft-only net sales for the full year, which exclude the terminated Hydra-Sports manufacturing contract from the prior year, increased by $21.7 million, or 10.9 percent, to $221.6 million.
Gross profit for the year rose $9.9 million, or 19.3 percent, to $61.1 million, compared with $51.2 million in the prior year. Gross margin rose to 27.6 percent from 23.9 percent.
Full-year net income was $10.2 million, up from $5.5 million in the prior fiscal year. Full-year adjusted net income increased 58.1 percent, to $23.4 million, or $1.24 a share.