MasterCraft (NASDAQ: MCFT) reported Q1 EPS of $0.55, $0.04 better than the analyst estimate of $0.51. Revenue for the quarter came in at $93.6 million versus the consensus estimate of $91.15 million.

• Net sales for the first quarter increased to $93.6 million, up 44.0 percent from $65.0 million in the prior-year period due to continued strong performance at MasterCraft and the inclusion of NauticStar.
• Gross profit for the first quarter increased to $23.2 million, up 27.7 percent from $18.2 million in the prior-year period.
• First quarter gross margin decreased 310 basis points to 24.8 percent, from 27.9 percent in the prior-year period, principally due to the inclusion of NauticStar as well as headwinds associated with import tariffs and a timing impact from the new revenue recognition accounting change.
• Net income totaled $8.5 million for the 2019 first quarter, a gain of $1.4 million, or 20.1 percent, from the prior-year period.
• First quarter diluted earnings per share increased by $0.07, or 18.4 percent to $0.45, up from $0.38 in the prior-year period.
• Adjusted EBITDA, a non-GAAP measure, increased 16.0 percent to $15.0 million from $13.0 million in the prior-year period.
• Fully diluted Adjusted Net Income per share, a non-GAAP measure, grew $0.10, a 22.7 percent increase, to $0.54, up from $0.44 in the prior-year period.

Terry McNew, President and Chief Executive Officer, commented, “During our fiscal first quarter, we continued our track-record of delivering record-setting levels of net sales, gross profit, adjusted net income and adjusted EBITDA, driven by continued retail and wholesale demand in our core MasterCraft brand, and the inclusion of NauticStar, which just recently celebrated its one-year anniversary as part of MasterCraft Boat Holdings. As we exit the prime boat selling season, our retail inventory turns for both MasterCraft and NauticStar are at their strongest levels in years, which sets the stage for continuing healthy dealer inventory levels and activity for the balance of fiscal 2019 and beyond.”

Mr. McNew continued, “The strong retail demand for our products and execution of our team drove growth across our brand portfolio, and we recently expanded our portfolio with the acquisition of Crest, a manufacturer of premium pontoon boats. The acquisition of Crest provides MasterCraft Boat Holdings with additional product diversification, access to the large and growing pontoon segment, and provides further penetration in the large outboard propulsion category. MasterCraft Boat Holdings now has dedicated brands serving three of the fastest growing segments of the overall powerboat industry – performance sport boats, outboard saltwater fishing boats and outboard pontoon boats. As we look to integrate Crest, our focus will be on leveraging our industry-leading strengths in operational excellence and financial management to further improve output, quality, margins and cash flow as we continue its rapid growth.”

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