MasterCraft (NASDAQ: MCFT) reported Q1 EPS of $0.53, $0.10 better than the analyst estimate of $0.43. Revenue for the quarter came in at $109.8 million versus the consensus estimate of $101.81 million.

First Quarter Highlights:

• Net sales increased to $109.8 million, up 17.2 percent from $93.6 million in the prior-year period.
• GAAP net income was $8.6 million, up slightly from $8.5 million in the prior-year period.
• GAAP diluted earnings per share increased in the first quarter by $0.01, up 2.2 percent to $0.46, from the prior year period.
• Diluted Adjusted Net Income per share, a non-GAAP measure, was $0.53 compared to $0.54 in the prior-year period.
• Adjusted EBITDA, a non-GAAP measure, rose 5.7 percent to $15.9 million from $15.0 million in the prior-year period.
• New luxury day boat brand, Aviara, began selling during the first quarter and is included in our MasterCraft segment results.

Fred Brightbill, interim Chief Executive Officer, commented, “MasterCraft Boat Holdings delivered strong operational results in the fiscal first quarter. The continued successful execution of our operational excellence and product development initiatives across all our brands led to record first-quarter results in net sales and adjusted earnings. Despite a challenging retail demand environment this past summer due principally to bad weather, the combined strength of our brands and improved retail activity in the fiscal first quarter of 2020 led to improved dealer inventory levels at the end of the quarter. We remain on course to drive continued dealer inventory improvements through the boat show season, allowing for healthy dealer pipelines ahead of the peak summer selling season and beyond.”

“As I assume the role of interim CEO, I look forward to working alongside the long-tenured, industry-veteran leadership team and seasoned and dedicated employees at MasterCraft, Aviara, NauticStar and Crest to support them in executing the strategic objectives currently underway,” Brightbill concluded.

Outlook

Said Brightbill, “We are bullish on the long-term prospects of both the markets we serve and the brands we own, despite any near-term fluctuations. The launch of our new Aviara brand is being extremely well received by our dealer partner, MarineMax, and consumers alike, and we’ve made significant improvements in our dealer pipeline inventory through our first fiscal quarter. As we continue to navigate the challenges ahead, including economic, trade and political uncertainty, we remain steadfast in our focus to prudently manage the company and position it for long-term success. We will use the transition to a new CEO as an opportunity to build on the company’s historical success and position it for the next stage of growth.”

Given the above-mentioned factors, the company’s consolidated fiscal 2020 outlook remains as follows:

• Net Sales – down low-single digit percent
• Adjusted EBITDA Margin – down 50 to 100 basis points
• Adjusted Earnings per Share – down high-single digit percent

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