MasterCraft reports 4Q, year-end results - Trade Only Today

MasterCraft reports 4Q, year-end results

MasterCraft reported lower fourth-quarter net sales, but increases in profit and gross margin.
Author:
Publish date:

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.

Related

E-nnovation Lab to expand at 2018 Metstrade show

The growing demand for hybrid and electric engines is becoming more apparent within the leisure marine market, prompting Metstrade to introduce the E-nnovation Lab platform for electric propulsion technology.

Aluminum, tow boats lead moderate growth in May

Boat registrations were up 2.1 percent in May in the main powerboat categories, and rose 3.2 percent in all categories, according to preliminary data from Statistical Surveys Inc., a Michigan company that tracks new boat registrations.

Retaliatory tariffs on boats to EU start today

The 25 percent tariff the EU announced Wednesday on U.S.-built boats kicks in today, and a 10 percent tariff on boats sold to Canada will start July 1, prompting boatbuilders to worry they will lose sales to those countries.