MasterCraft (NASDAQ: MCFT) reported Q4 EPS of $0.34, $0.01 better than the analyst estimate of $0.33. Revenue for the quarter came in at $58.3 million versus the consensus estimate of $57.22 million.

Outlook

Concluded McNew, “MasterCraft has delivered solid performance and we’re optimistic about prospects for our fiscal 2018. Equally important, we continue to deliver best-in-class working capital management, which provides opportunities to enhance shareholder return in a variety of ways.

“Looking ahead, we remain committed to our five-pronged growth strategy: developing new and innovative products; further penetrating the entry-level and mid-line segment of the performance sport boat category; capturing share from adjacent boating categories; strengthening our dealer network; and driving margin expansion through continuous operational excellence.”

For the fiscal year ending June 30, 2018, MasterCraft expects net sales growth in the mid- to high-single digits and Adjusted EBITDA margin in the low 19 percent range setting the stage for another year of continued growth. Net sales growth will result in continued growth in net income, EBITDA and Adjusted net income.

Highlights:

• Net sales for the fourth quarter increased to $58.3 million, up 9.3 percent from $53.4 million in the prior-year period. Net sales for the fiscal year rose to $228.6 million, up 3.2 percent from $221.6 million in the prior year.
• Gross margin in the fourth quarter increased 190 basis points to 28.2 percent, up from 26.3 percent in the prior-year period, and increased 20 basis points for the fiscal year to 27.8 percent from 27.6 percent in fiscal 2016.
• Net income for the fourth quarter totaled $6.3 million, up from $4.8 million in the prior-year period. Net income totaled $19.6 million for the fiscal year, almost double from $10.2 million in the prior year.
• Diluted earnings per share increased to $0.34 for the fourth quarter, from $0.26 in the prior-year period. Diluted earnings per share were $1.05 for the fiscal year compared to $0.56 in the prior year.
• Adjusted EBITDA, a non-GAAP measure, increased for the fourth quarter to $11.5 million from $9.9 million in the prior-year period and rose for the fiscal year to $43.5 million from $41.2 million in the prior year.
• Fully diluted pro forma Adjusted net income per share, a non-GAAP measure, increased to $0.35 for the fourth quarter, versus $0.30 in the prior-year period and grew for the fiscal year to $1.30 per share compared to $1.24 in the prior year.
• Fourth-quarter working capital management continued to be outstanding as evidenced by a cash conversion cycle of 6.5 days.
• The company paid down total debt by $17.7 million during the fiscal year — reducing the balance from $52.2 million at the start of the fiscal year to $34.5 million at the end.

For earnings history and earnings-related data on MasterCraft (MCFT) click here.