MasterCraft today reported sales of US$65.0m for its first fiscal quarter ended October 1, 2017, up 7.2% compared to the same period a year ago. Net income was US$.7.0m, flat with last year.
“Top-line sales grew nicely in the first quarter, driven by demand for performance sports boats,” said Terry McNew, CEO of MCBC Holdings, in a statement. An increase in sales of 57 units, or 7.9% of total unit sales, as well as “favourable pricing” helped increase sales, though the company also experienced an “unfavourable product mix” that slightly depressed Q1 sales.
The company acquired NauticStar and its production facility on October 3. “NauticStar provides us with a presence in two of the boating industry’s fastest growing segments: saltwater fishing and outboard propulsion,” said McNew. “Additionally, NauticStar’s year-over-year unit growth is among the strongest in the 18ft-28ft category and demand domestically currently exceeds supply.” MCBC’s financial results for its first quarter only reflect MasterCraft. Going forward, the company’s financial results will reflect the consolidated sales of both brands.
“We continue to see solid retail activity and are comfortable with our current inventory levels. We remain optimistic about fiscal 2018,” said McNew.
The company projects fiscal year sales gains of about 35%. For its second quarter, it forecasts sales gains of 45%, with Adjusted EBITDA margins above 15%. “Both MasterCraft and NauticStar’s top lines are growing in the mid to high single digit range compared to the prior year,” said McNew.