MasterCraft Sets Profit Record
MasterCraft Boat Holdings Inc., the parent company of MasterCraft, Crest, NauticStar and Aviara boats reported record earnings in its 2021 first quarter financial results. It had net sales of $103.7 million for the quarter ending October 4, 2020, which represented a year-over-year decrease of 5.5% from the $108.9 million in net sales for the first quarter of financial year 2020. However, gross profit for the period was $26.2 million, a 2.7% year over year gain compared to last year. Gross margin of 25.3% represented an increase of 200 basis points.
Pandemic Challenges
In a call with analysts, MasterCraft Boat Holdings CEO Fred Brightbill said that supply-chain challenges encountered earlier in the year as a result of the COVID-19 pandemic have been overcome and that the company is focused on building output. “At each of our facilities, we are now running at production rates above pre-COVID levels, and plan to increase production throughout the year to meet the robust retail demand,” Brightbill said. “Across our brands, our wholesale production plan is fully committed.”
He added that the order book is at record levels and dealer inventories are still low and that he doesn’t expect them to return to optimum levels until 2022.
Investing to grow
Brightbill said that the company’s purchase of a former Sea Ray plant in Merritt Island, Fla., to build Aviara boats should help that brand and MasterCraft increase production. Additionally, MarineMax, which is Aviara’s only dealer, acquired a large dealer with multiple locations in the Midwest, which should give Aviara the opportunity to gain market share in the region.
“We continue to grow distribution in markets where demand for ski/wake boats is strong, as demonstrated by adding new dealers in California, Long Island, Charlotte and western Canada,” said Brightbill. These incremental distribution points provide a significant runway for MasterCraft to take additional market share this year and beyond.”