MasterCraft (NASDAQ: MCFT) reported Q2 EPS of $0.75, $0.24 better than the analyst estimate of $0.51. Revenue for the quarter came in at $118.7 million versus the consensus estimate of $115.04 million.

Highlights:

• Most profitable second quarter in the Company’s history
• Net sales increased to $118.7 million, up 19 percent from $99.6 million in the prior-year period
• Gross margin expanded by 340 basis points to 24.7%
• Net income was $12.5 million or $0.66 per diluted share, a 78 percent increase from $0.37 in the prior-year period
• Diluted Adjusted Net Income per share, a non-GAAP measure, was $0.75, a 74 percent increase from $0.43 in the prior-year period
• Adjusted EBITDA, a non-GAAP measure, grew 57 percent to $21.3 million from $13.6 million in the prior-year period
• Adjusted EBITDA margin expanded by 430 basis points to 17.9%
• 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 once again delivered financial and operational performance that exceeded expectations, highlighted by our second consecutive quarter of record profits. This performance was a direct result of our team members’ consistent execution on our key strategic priorities and the strength of our brands. In what has continued to be a challenging and dynamic operating environment, we have been able to scale and accelerate production while efficiently managing our supply chain to deliver for our dealers and consumers.”

Brightbill continued, “Execution of our consumer-centric strategy remains our top focus as we look to drive sustainable, accelerated growth. Strong retail demand across all our brands continued in our fiscal second quarter, resulting in a record wholesale backlog that has provided us with tremendous confidence in our outlook and ability to create shareholder value.”

Outlook

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 disruptions.”

The Company’s outlook is as follows:

• For full year fiscal 2021, consolidated net sales is expected to grow in the mid to high 30 percent range year-over-year, with Adjusted EBITDA margins in the low 15 percent range, and Adjusted Earnings per share growth approaching 100 percent year-over-year.
• For the fiscal third quarter, consolidated net sales is expected to be up in the mid-30 percent range year-over-year, with Adjusted EBITDA margins approaching 15 percent, and Adjusted Earnings per share growth approaching 60 percent.

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