MasterCraft Boat Holdings, Inc. recently announced its financial results for its fourth quarter of fiscal 2021 and its fiscal year ended June 30, 2021.
Fourth quarter highlights include a 204% increase in net sales, while full year highlights include an increase in net sales to $ 525.8 million, up 45%.
“Our business has performed extremely well against our strategic priorities during fiscal 2021 in a very difficult and dynamic environment. Our record performance was driven by year-over-year unit increases in each of our segments, including the highest number of units wholesaled by the company in the fourth quarter, ”said Fred Brightbill , managing director and president. “To accelerate throughput and produce record-breaking units in arguably the most challenging supply chain environment we have ever experienced in the boating industry is a clear demonstration of our disciplined execution, operational excellence and the strength of our team. Credit goes to our more than 1,500 employees who have continued to execute our key strategic priorities in the face of adversity and the strength of our market-leading brands. ”
Fourth Quarter Results
Net sales hit a record $ 155.5 million for the fourth quarter, an increase of 204.4% from the period a year earlier, which was hit hard by the COVID-19 pandemic . This increase is mainly attributable to record sales volumes.
Gross profit increased $ 29.8 million, or 402.8%, to a record $ 37.2 million, from $ 7.4 million for the prior year period. Gross margin increased 940 basis points to 23.9% from 14.5% the previous year. The increase is primarily due to the absorption of general expenses resulting from increased sales volume, lower warranty costs and lower dealer incentives as a percentage of sales. The increase was partially offset by higher material costs, costs of transitioning production from the Aviara brand to the Merritt Island, Florida plant, and increased labor costs. .
Operating expenses increased $ 4.4 million, or 44.5%, to $ 14.2 million for the fourth quarter of 2021, from $ 9.8 million for the fourth quarter of 2020. This increase is mainly due to higher incentive compensation costs, additional investments related to product development and information technology, and higher selling and marketing costs in the fourth quarter of 2021 compared to the same period of the previous year.
A finance debt extinguishment loss totaling $ 0.7 million was recorded on the refinancing of the Company’s debt in June 2021. This non-cash loss includes unamortized debt issuance costs related to the facility. existing credit.
Net income was $ 16.5 million for the fourth quarter, compared to a net loss of $ 2.8 million for the prior year period. Diluted net income per share was $ 0.87, compared to a diluted net loss per share of ($ 0.15) for the fourth quarter of 2020. Adjusted net income increased to $ 18.6 million for the fourth. quarter, or $ 0.98 per diluted share, versus an adjusted net loss. of $ 1.8 million, or $ (0.10) per diluted share, during the prior year period.
Adjusted EBITDA was $ 27 million for the fourth quarter, compared to $ 0.9 million for the prior year period. The adjusted EBITDA margin was 17.3% for the fourth quarter, compared to 1.8% for the period of the previous year, mainly due to higher sales volume.
Results for fiscal year 2021
Net sales hit a record $ 525.8 million for fiscal 2021, an increase of 44.8% from fiscal 2020, which was heavily impacted by the COVID-19 pandemic. The increase was primarily the result of higher sales volumes, lower dealer incentives and higher prices, partially offset by the impact of segment makeup. Compared to fiscal 2019, which was our previous record, net sales increased $ 59.4 million or 12.7%.
Gross profit increased $ 54.6 million, or 72.5%, to a record $ 130 million, from $ 75.4 million the previous year. Gross margin increased 390 basis points to 24.7% in fiscal 2021, compared to 20.8% in fiscal 2020. This increase is mainly due to increased sales volume , lower dealer incentives and higher prices. The increase was partially offset by costs to transition the production of the Aviara brand to the Merritt Island, Florida plant, and higher labor and material costs.
Operating expenses decreased $ 47.9 million, or 47%, to $ 54 million for fiscal 2021, from $ 101.9 million for fiscal 2020. The decrease is attributable to goodwill and other intangible asset impairment charges of $ 56.4 million related to the NauticStar and Crest segments recognized in fiscal 2020 There was no impairment charge during the fiscal year 2021. Additionally, the Company recorded lower selling and marketing costs in fiscal 2021, primarily due to the lack of in-person boat shows and strong organic retail demand. The decrease was partially offset by higher general and administrative expenses resulting from higher incentive compensation costs and additional investments related to product development and information technology. Despite continued investments in product development and other areas of selling and administrative expenses, for the full year the percentage of selling and administrative expenses as a percentage of net sales has was the lowest on record since the company went public.
A loss on debt extinguishment totaling $ 0.7 million was recognized on the refinancing of the Company’s debt. The non-cash loss includes the costs of issuing unamortized debt securities related to the existing credit facility.
Net income reached a record $ 56.2 million for fiscal 2021, or $ 2.96 per share, compared with a net loss of $ 24 million, or ($ 1.28 per share, for fiscal 2020. Net loss for fiscal 2020 includes goodwill and other intangible asset impairment charges of $ 56.4). million, or ($ 3.01) per diluted share. Adjusted net income reached a record $ 62.8 million, or $ 3.31 per diluted share, from $ 25.1 million, or $ 1.34 per diluted share, during the period. prior year, or $ 2.82 per diluted share, in fiscal 2019.
Adjusted EBITDA reached a record $ 92.8 million for fiscal 2021, compared to $ 44.3 million for fiscal 2020. Adjusted EBITDA margin was 17.6% for fiscal 2021 , compared to 12.2% for fiscal 2020, mainly due to higher sales volume. Compared to fiscal 2019, Adjusted EBITDA increased by nearly 17% and Adjusted EBITDA margin increased by over 60 basis points.
“In fiscal 2021, we aggressively ramped up production while expertly managing our supply chain to drive sustainable and accelerated organic growth,” said Brightbill. strengthen our competitive position, develop our categories and deliver shareholder value guided by our long-term focus and strategic priorities.
Full fourth quarter and full year 2021 results are available here.