MasterCraft (NASDAQ: MCFT) reported Q4 EPS of $0.66, $0.15 better than the analyst estimate of $0.51. Revenue for the quarter came in at $95.4 million versus the consensus estimate of $89.3 million.

• Net sales for the fourth quarter increased to $95.4 million, up 63.6 percent from $58.3 million in the prior-year period due to improvements in MasterCraft’s core business and the inclusion of NauticStar. Net sales for the fiscal year rose to $332.7 million, up from $228.6 million.
• Gross profit for the fourth quarter increased to $27.9 million, a 69.5 percent gain from $16.5 million in the prior-year period. Gross profit for the fiscal year rose to $90.4 million, up from $63.5 million.
• Fourth quarter gross margin grew 100 basis points to 29.2 percent, from 28.2 percent in the prior-year period. MasterCraft’s standalone margin increase, mainly from a favorable product mix, was partially offset by the inclusion of NauticStar. Fiscal year gross margin decreased 60 basis points, primarily due to the impact of NauticStar.
• Net income totaled $13.1 million for the 2018 fourth quarter, a gain of $6.8 million, or 108.1 percent, from the prior-year period. Fiscal year net income rose $20.1 million to $39.7 million.
• Fourth quarter diluted earnings per share increased by $0.36, or 105.9 percent to $0.70, up from $0.34 in the prior-year period. Fiscal year diluted earnings per share grew to $2.12, versus $1.05 in fiscal 2017.
• Adjusted EBITDA, a non-GAAP measure, increased 71.9 percent to $19.8 million from $11.5 million in the prior-year fourth quarter. Fiscal year Adjusted EBITDA rose to $64.0 million from $43.5 million.
• Adjusted EBITDA margin, a non-GAAP measure, rose 100 basis points to 20.8 percent, from 19.8 percent in the prior-year fourth quarter. Adjusted EBITDA margin for the fiscal year increased 20 basis points to 19.2 percent, from 19.0 percent.
• Fourth quarter fully diluted Adjusted Net Income per share, a non-GAAP measure, grew $0.31, an 88.6 percent increase, to $0.66, up from $0.35 in the prior-year period. Fiscal year 2018 fully diluted Adjusted Net Income per share increased $0.79, to $2.09, versus $1.30 in fiscal 2017.
• During the year, the company’s strong cash flow enabled debt repayments of $39.3 million, which represents almost half of the $80 million borrowed for the purchase of NauticStar.

Terry McNew, MCBC Holdings, Inc. President and Chief Executive Officer, commented, “We ended fiscal 2018 delivering record sales and net income for both the fourth quarter and fiscal year. Continued growth in retail demand and our unwavering focus on operational efficiency drove results. Moreover, our strong cash management practices enabled us to significantly reduce our total debt.”

OutlookSaid McNew, “Financially, operationally and on the new product development front, we delivered strong performance in fiscal 2018, which gives us confidence in our ability to execute again in fiscal 2019. Looking ahead, we remain steadfast in our strategy of driving sustainable, profitable growth through the development of new and innovative products, strengthening our dealer network, driving margin expansion through operational excellence and capturing additional market share from adjacent boating categories, both organically and through acquisitions.”

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