MCBC to launch new boat brand next year

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MCBC Holdings, parent of MasterCraft and NauticStar, reported sales of $95.4 million for its fourth quarter ended June 30, 2018. That represents a 63.6 percent sales gain compared to the same period a year ago. Net income was up 108.1 percent to $13.1 million for the quarter.

The company said in a statement that the increase in sales was due to improvements in its core business and the inclusion of NauticStar, which it acquired last year. NauticStar represented $21.7 million, or 37.1 percent, of the increase while MasterCraft grew $15.4 million, or 26.5 percent.

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MCBC also cited start-up costs for a new boat brand that is not in MasterCraft’s or NauticStar’s segments. Executives said later on an earnings call that they would launch three models next year and have already begun to hire staff for the new brand. It expects to spend $2.5 million for startup costs for fiscal 2019.

Terry McNew, president and CEO of MCBC Holdings, said the company finished the year with record sales and profits. Sales for its fiscal year rose to $332.7 million compared to $228.6 million a year ago. Fiscal year net income rose $20.1 million to $39.7 million. NauticStar represented $66.4 million, or 29.0 percent, of the increase while MasterCraft grew $37.7 million, or 16.5 percent.

“Retail activity with regard to MasterCraft strengthened throughout fiscal 2018, resulting in improved dealer inventory turns and the largest June retail sales in MasterCraft’s history,” said McNew in the statement.

MCBC Holdings expects net sales percentage growth for fiscal 2019 to be up in the low-teens. Adjusted EBITDA margins are expected to be in the mid-18 percent range.

The guidance above was adjusted for startup costs of $2.5 million next year for its new boat brand. The company spent $561,000 in fiscal 2018 on startup costs.

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