Stock News in Focus: MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT)

On September 17 2019, shares of MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) oscillated between $14.21 and $14.86 before concluding trading period lower/higher +2.84% or +0.41 at $14.83. The stock recorded total trading quantity of 470,169 shares as compared to it’s an average volume of 294,815 shares.

MasterCraft Boat Holdings, Inc. (MCFT) recently reported financial results for its fiscal 2019 fourth quarter and full year ended June 30, 2019.

Fourth Quarter Highlights:

  • Net sales increased to $122.8M, up 28.7 percent from $95.4M in the prior-year period.
  • GAAP diluted earnings (loss) per share were $(0.54), including a $31.0M, or $(1.65) per share, goodwill and other intangible asset impairment charge related to NauticStar (the “NauticStar Charge”).
  • Fully diluted Adjusted Net Income per share, a non-GAAP measure, grew $0.17, or 25.0 percent, to $0.85, up from $0.68 in the prior-year period.
  • Adjusted EBITDA, a non-GAAP measure, rose 19.9 percent to $23.8M from $19.8M in the prior-year period.

Full Year Highlights:

  • Net sales increased to $466.4M, up 40.2 percent from $332.7M in the prior-year period.
  • GAAP diluted earnings (loss) per share reduced to $1.14, including the NauticStar Charge, or $(1.65) per share.
  • Fully diluted Adjusted Net Income per share, a non-GAAP measure, grew $0.66, or 30.7 percent, to $2.81, up from $2.15 in the prior-year period.
  • Adjusted EBITDA, a non-GAAP measure, grew 23.9 percent to $79.3M from $64.0M in the prior-year period.
  • Cash debt repayments totaled $41.3M, driven by the company’s strong cash generation.

Fourth Quarter Results
Net Sales for the fourth quarter were $122.8M, reflecting a raise of $27.4M, or 28.7 percent, contrast to $95.4M for the prior-year period. The increase was primarily Because of:

  • a raise at MasterCraft of $6.0M, or 8.1 percent, primarily Because of a raise in unit sales volume, favorable product mix and price increases;
  • the inclusion of Crest, which incrementally added net sales of $23.3M; and partially offset by
  • a decrease at NauticStar of $1.9M, or 8.8 percent, primarily Because of a reduction in volume as production was slowed to match wholesale shipments with retail demand, partially offset by favorable product mix and price increases.

Gross profit increased $3.6M, or 12.9 percent, to $31.5M contrast to $27.9M for the prior-year period. The increase was primarily Because of:

  • the increases in MasterCraft unit sales volumes, price increases, and favorable product mix, partially offset by a year-over-year increase in warranty expense resulting from the favorable one-time warranty adjustment taken in the fourth quarter of 2018;
  • the inclusion of Crest, which contributed $4.3M to gross profit; and partially offset by
  • a $1.1M decrease in gross profit for NauticStar, principally Because of the decrease in volume.

Given the above-mentioned factors, gross margin reduced to 25.6 percent for the fourth quarter contrast to 29.2 percent for the prior-year period.

Operating expenses increased $34.1M, or 381.0 percent, to $43.0M for the fourth quarter contrast to $8.9M for the prior-year period. This increase resulted mainly from the NauticStar Charge and the inclusion of Crest, which increased operating expenses by $1.8M.

The P/E ratio was recorded at 13.07.The volatility in the previous week has experienced by 7.13% and observed of 5.37% in the previous month.95.90% ownership is held by institutional investors while insiders hold ownership of 0.50%.

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