MasterCraft (MCFT) Tops Q3 EPS by 9c, Beats on Revenues

MasterCraft (NASDAQ: MCFT) reported Q3 EPS of $0.56, $0.09 better than the analyst estimate of $0.47. Revenue for the quarter came in at $93.8 million versus the consensus estimate of $88.76 million.

Highlights:

• Net sales for the third quarter increased to $93.8 million, up 60.4 percent from $58.5 million in the prior-year period from improvements in MasterCraft’s core business and the inclusion of NauticStar. Net sales year-to-date rose to $237.3 million, up from $170.3 million.
• Gross profit for the third quarter increased to $24.4 million, up 63.4 percent from $14.9 million in the prior-year period. Gross profit year-to-date rose to $62.5 million, up from $47.0 million.
• Third-quarter gross margin increased 50 basis points to 26.0 percent, from 25.5 percent in the prior-year period. MasterCraft’s standalone margin increase, mainly from reduced retail rebate activity, was partially offset by the inclusion of NauticStar. Year-to-date gross margin decreased 130 basis points.
• Net income totaled $11.5 million for the 2018 third quarter, an increase of $9.3 million, or 411.1 percent, from the prior-year period. Year-to-date net income increased $13.3 million to $26.5 million.
• Third-quarter diluted earnings per share increased by $0.49, to $0.61, up from $0.12 in the prior-year period. Year-to-date diluted earnings per share increased to $1.42, versus $0.71 in fiscal 2017.
• Adjusted EBITDA, a non-GAAP measure, increased 79.4 percent to $17.3 million from $9.6 million in the prior-year third quarter. Year-to-date Adjusted EBITDA rose to $43.8 million from $31.9 million.
• Adjusted EBITDA margin, a non-GAAP measure, increased 200 basis points to 18.4 percent, from 16.4 percent in the prior-year third quarter period. Adjusted EBITDA margin year-to-date decreased 20 basis points to 18.5 percent, from 18.7 percent.
• Third-quarter fully diluted, pro forma Adjusted net income per share, a non-GAAP measure, increased by $0.28, a 100 percent increase, to $0.56, up from $0.28 in the prior-year period, and year-to-date was up $0.47, to $1.42, versus $0.95.
• Year-to-date the company made debt payments of $28.3 million enabled by its strong cash generation capability.

Terry McNew, MCBC Holdings, Inc. President and Chief Executive Officer, commented, “We continue to deliver strong top- and bottom-line performance, driven by double-digit gains from MasterCraft, the addition of NauticStar and our commitment to operational excellence across both organizations.”

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

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