MasterCraft Boat (MCFT) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 net sales declined 44.6% year-over-year to $366.6 million, with Q4 net sales down 59.7% to $67.2 million compared to the same quarter last year, amid a challenging economic and competitive environment.

• Adjusted EBITDA for fiscal 2024 was $32.9 million, a 74.9% decrease year-over-year; Q4 Adjusted EBITDA was $0.8 million, down 97.4%.

• Adjusted net income for fiscal 2024 was $20.9 million, or $1.22 per diluted share, compared to $95 million, or $5.35 per share, last year.

• Strategic focus included proactive inventory management, cost controls, destocking dealer inventory, launching new brands, and returning capital to shareholders.

• Aviara business is being divested and will be reported as discontinued operations starting Q1 2025.

Financial highlights

• Fiscal 2024 net sales were $366.6 million, down 45% year-over-year, mainly due to lower unit sales and increased dealer incentives.

• Gross margin declined to 18.3% from 25.6% year-over-year; Q4 gross margin was 6.2%, down from 25.8%.

• Adjusted EBITDA margin for fiscal 2024 was 9.0%, compared to 19.9% in the prior year.

• Adjusted net income per share for Q4 FY24 was $(0.04), compared to $1.37 in Q4 FY23.

• Ended the year with $86.2 million in cash and investments and $49.3 million in total debt.

Outlook and guidance

• Fiscal 2025 guidance: net sales of $265–$300 million, adjusted EBITDA of $15–$26 million, and adjusted EPS of $0.36–$0.87.

• Q1 2025 guidance: net sales of ~$61 million, adjusted EBITDA of ~$2 million, and adjusted EPS of ~$0.04.

• Retail unit sales expected to decline 5–15% year-over-year, with continued dealer destocking and cautious ordering.

• Capital expenditures expected to be ~$12 million, weighted toward the second half of the year.