MasterCraft (NASDAQ: MCFT) reported Q1 EPS of $0.58, $0.25 better than the analyst estimate of $0.33. Revenue for the quarter came in at $103.7 million versus the consensus estimate of $96.17 million.

Highlights:

• Most profitable first quarter in the Company’s history
• Purchase of Merritt Island, Florida facility completed on October 26, 2020, increasing production capacity for the MasterCraft and Aviara brands
• Net sales for the first quarter decreased to $103.7 million, down 5.5 percent from $109.8 million in the prior-year period
• Net income was $9.6 million or $0.51 per diluted share, a 10.9 percent increase from $0.46 in the prior-year period
• Diluted Adjusted Net Income per share, a non-GAAP measure, was $0.58, a 7.4 percent increase from $0.54 in the prior-year period
• Adjusted EBITDA, a non-GAAP measure, grew 6.8 percent to $17.0 million from $15.9 million in the prior-year period
• Revolving credit facility was fully repaid, and the Company ended the quarter approaching $45.0 million of liquidity
• Current production rates exceed pre-COVID levels at all brands
• Guidance for full-year fiscal 2021 raised on strength of retail demand and wholesale production ramp up

Fred Brightbill, Chief Executive Officer and Chairman, commented, “MasterCraft delivered a strong performance highlighted by record profit and consistent execution on our key strategic priorities in what continues to be a challenging and dynamic operating environment. Our results reflect progress on scaling and accelerating production while efficiently managing our supply chain to meet increased demand. I am very proud of the hard work and disciplined execution of our team members as we have shifted from addressing the COVID-19 related shutdowns to restarting operations and aggressively ramping up production to deliver for our dealers and consumers.”

Brightbill continued, “While our results are a testament to the strong retail demand for our leading brands, they are also a function of our continued execution on our strategy to drive sustainable, accelerated growth. The strength of our order book and increased consumer interest in recreational boating give us confidence in our outlook and ability to create shareholder value.”

Outlook

The Company’s outlook is as follows:

• For full year fiscal 2021, consolidated net sales is expected to grow in the mid 30 percent range year-over-year, with Adjusted EBITDA margins approaching 15 percent, and Adjusted Earnings per share growth in the mid 80 percent range year-over-year.
• For the fiscal second quarter, consolidated net sales is expected to be up in the mid-teens percent range year-over-year, with Adjusted EBITDA margins in the mid 13 percent range, and Adjusted Earnings per share growth approaching 20 percent.

Concluded Brightbill, “Due to a continuation of strong retail demand trends, historically low dealer inventory, the strength of our order book across our brands, and the increasing production rates we delivered in each segment over the course of the quarter, we are raising our guidance for fiscal 2021. Importantly, our guidance assumes that we are able to operate all of our facilities throughout the year without any COVID-19 related shutdowns.”

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