Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Apr. 02, 2023 | May 05, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 02, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MASTERCRAFT BOAT HOLDINGS, INC. | |
Entity Central Index Key | 0001638290 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,495,267 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | MCFT | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-37502 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-1571747 | |
Entity Address, Address Line One | 100 Cherokee Cove Drive | |
Entity Address, City or Town | Vonore | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37885 | |
City Area Code | 423 | |
Local Phone Number | 884-2221 | |
Document Quarterly Report | true | |
Document Transition Report | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2023 | Apr. 03, 2022 | Apr. 02, 2023 | Apr. 03, 2022 | |
Income Statement [Abstract] | ||||
NET SALES | $ 166,776 | $ 169,343 | $ 495,480 | $ 444,393 |
COST OF SALES | 124,178 | 125,269 | 368,682 | 333,376 |
GROSS PROFIT | 42,598 | 44,074 | 126,798 | 111,017 |
OPERATING EXPENSES: | ||||
Selling and marketing | 3,927 | 3,017 | 10,748 | 9,966 |
General and administrative | 9,156 | 8,964 | 26,874 | 26,881 |
Amortization of other intangible assets | 489 | 489 | 1,467 | 1,467 |
Goodwill impairment | 0 | 0 | 0 | 1,100 |
Total operating expenses | 13,572 | 12,470 | 39,089 | 39,414 |
OPERATING INCOME | 29,026 | 31,604 | 87,709 | 71,603 |
OTHER INCOME (EXPENSE): | ||||
Interest expense | (695) | (341) | (1,923) | (1,080) |
Interest income | 1,195 | 0 | 1,967 | 0 |
INCOME BEFORE INCOME TAX EXPENSE | 29,526 | 31,263 | 87,753 | 70,523 |
INCOME TAX EXPENSE | 6,744 | 6,957 | 20,353 | 16,126 |
Net income from continuing operations | 22,782 | 24,306 | 67,400 | 54,397 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (Note 3) | (272) | (3,371) | (21,139) | (7,674) |
NET INCOME | $ 22,510 | $ 20,935 | $ 46,261 | $ 46,723 |
Basic | ||||
Continuing operations | $ 1.30 | $ 1.33 | $ 3.80 | $ 2.92 |
Discontinued operations | (0.02) | (0.19) | (1.19) | (0.41) |
Net income | 1.28 | 1.14 | 2.61 | 2.51 |
Diluted | ||||
Continuing operations | 1.28 | 1.31 | 3.78 | 2.89 |
Discontinued operations | (0.01) | (0.18) | (1.19) | (0.40) |
Net income | $ 1.27 | $ 1.13 | $ 2.59 | $ 2.49 |
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF: | ||||
Basic earnings per share | 17,559,920 | 18,295,949 | 17,725,208 | 18,622,878 |
Diluted earnings per share | 17,748,910 | 18,487,346 | 17,851,655 | 18,796,867 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 02, 2023 | Jun. 30, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 27,453 | $ 34,203 |
Held-to-maturity securities (Note 4) | 73,914 | 0 |
Accounts receivable, net of allowance of $36 and $214, respectively | 18,688 | 22,472 |
Inventories, net (Note 5) | 55,268 | 58,595 |
Prepaid expenses and other current assets | 10,673 | 7,232 |
Current assets associated with discontinued operations (Note 3) | 0 | 23,608 |
Total current assets | 185,996 | 146,110 |
Property, plant and equipment, net | 70,510 | 55,823 |
Goodwill (Note 6) | 28,493 | 28,493 |
Other intangible assets, net (Note 6) | 35,951 | 37,418 |
Deferred income taxes | 14,331 | 21,525 |
Deferred debt issuance costs, net | 330 | 406 |
Other long-term assets | 2,663 | 1,290 |
Non-current assets associated with discontinued operations (Note 3) | 0 | 5,987 |
Total assets | 338,274 | 297,052 |
CURRENT LIABILITIES: | ||
Accounts payable | 27,335 | 23,375 |
Income tax payable | 5,582 | 4,600 |
Accrued expenses and other current liabilities (Note 7) | 66,070 | 54,437 |
Current portion of long-term debt, net of unamortized debt issuance costs (Note 9) | 4,004 | 2,873 |
Current liabilities associated with discontinued operations (Note 3) | 0 | 7,887 |
Total current liabilities | 102,991 | 93,172 |
Long-term debt, net of unamortized debt issuance costs (Note 9) | 50,391 | 53,676 |
Unrecognized tax positions | 6,469 | 6,358 |
Other long-term liabilities | 2,276 | 198 |
Total liabilities | 162,127 | 153,404 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $.01 par value per share - authorized, 100,000,000 shares; issued and outstanding, 17,776,299 shares at January 1,2023 and 18,061,437 shares at June 30, 2022 | 176 | 181 |
Additional paid-in capital | 82,827 | 96,584 |
Retained earnings | 93,144 | 46,883 |
Total stockholders' equity | 176,147 | 143,648 |
Total liabilities and stockholders' equity | $ 338,274 | $ 297,052 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 02, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 155 | $ 214 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 17,571,882 | 18,061,437 |
Common stock, outstanding shares | 17,571,882 | 18,061,437 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained earning |
Balance, beginning at Jun. 30, 2021 | $ 107,788 | $ 189 | $ 118,930 | $ (11,331) |
Balance, beginning (in shares) at Jun. 30, 2021 | 18,956,719 | |||
Share-based compensation activity | 706 | $ 1 | 705 | |
Share-based compensation activity (shares) | 62,865 | |||
Repurchase and retirement of common stock | (1,487) | $ (1) | (1,486) | |
Repurchase and retirement of common stock (shares) | (58,379) | |||
Net income | 10,386 | 10,386 | ||
Balance, ending at Oct. 03, 2021 | 117,393 | $ 189 | 118,149 | (945) |
Balance, ending (in shares) at Oct. 03, 2021 | 18,961,205 | |||
Balance, beginning at Jun. 30, 2021 | 107,788 | $ 189 | 118,930 | (11,331) |
Balance, beginning (in shares) at Jun. 30, 2021 | 18,956,719 | |||
Repurchase and retirement of common stock (shares) | (810,623) | |||
Net income | 46,723 | |||
Balance, ending at Apr. 03, 2022 | 135,688 | $ 182 | 100,114 | 35,392 |
Balance, ending (in shares) at Apr. 03, 2022 | 18,208,788 | |||
Balance, beginning at Oct. 03, 2021 | 117,393 | $ 189 | 118,149 | (945) |
Balance, beginning (in shares) at Oct. 03, 2021 | 18,961,205 | |||
Share-based compensation activity | 1,159 | 1,159 | ||
Share-based compensation activity (shares) | 5,913 | |||
Repurchase and retirement of common stock | (9,888) | $ (3) | (9,885) | |
Repurchase and retirement of common stock (shares) | (356,296) | |||
Net income | 15,402 | 15,402 | ||
Balance, ending at Jan. 02, 2022 | 124,066 | $ 186 | 109,423 | 14,457 |
Balance, ending (in shares) at Jan. 02, 2022 | 18,610,822 | |||
Share-based compensation activity | 766 | 766 | ||
Share-based compensation activity (shares) | (6,086) | |||
Repurchase and retirement of common stock | (10,079) | $ (4) | (10,075) | |
Repurchase and retirement of common stock (shares) | (395,948) | |||
Net income | 20,935 | 20,935 | ||
Balance, ending at Apr. 03, 2022 | 135,688 | $ 182 | 100,114 | 35,392 |
Balance, ending (in shares) at Apr. 03, 2022 | 18,208,788 | |||
Balance, beginning at Jun. 30, 2022 | 143,648 | $ 181 | 96,584 | 46,883 |
Balance, beginning (in shares) at Jun. 30, 2022 | 18,061,437 | |||
Share-based compensation activity | 650 | $ 1 | 649 | |
Share-based compensation activity (shares) | 128,040 | |||
Repurchase and retirement of common stock | (4,178) | $ (2) | (4,176) | |
Repurchase and retirement of common stock (shares) | (191,360) | |||
Net income | 4,068 | 4,068 | ||
Balance, ending at Oct. 02, 2022 | 144,188 | $ 180 | 93,057 | 50,951 |
Balance, ending (in shares) at Oct. 02, 2022 | 17,998,117 | |||
Balance, beginning at Jun. 30, 2022 | 143,648 | $ 181 | 96,584 | 46,883 |
Balance, beginning (in shares) at Jun. 30, 2022 | 18,061,437 | |||
Repurchase and retirement of common stock (shares) | (625,794) | |||
Net income | 46,261 | |||
Balance, ending at Apr. 02, 2023 | 176,147 | $ 176 | 82,827 | 93,144 |
Balance, ending (in shares) at Apr. 02, 2023 | 17,571,882 | |||
Balance, beginning at Oct. 02, 2022 | 144,188 | $ 180 | 93,057 | 50,951 |
Balance, beginning (in shares) at Oct. 02, 2022 | 17,998,117 | |||
Share-based compensation activity | 745 | 745 | ||
Share-based compensation activity (shares) | 2,466 | |||
Repurchase and retirement of common stock | (4,794) | $ (2) | (4,792) | |
Repurchase and retirement of common stock (shares) | (224,284) | |||
Net income | 19,683 | 19,683 | ||
Balance, ending at Jan. 01, 2023 | 159,822 | $ 178 | 89,010 | 70,634 |
Balance, ending (in shares) at Jan. 01, 2023 | 17,776,299 | |||
Share-based compensation activity | 883 | 883 | ||
Share-based compensation activity (shares) | 5,733 | |||
Repurchase and retirement of common stock | (7,068) | $ (2) | (7,066) | |
Repurchase and retirement of common stock (shares) | (210,150) | |||
Net income | 22,510 | 22,510 | ||
Balance, ending at Apr. 02, 2023 | $ 176,147 | $ 176 | $ 82,827 | $ 93,144 |
Balance, ending (in shares) at Apr. 02, 2023 | 17,571,882 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 46,261 | $ 46,723 |
Loss from discontinued operations, net of tax | 21,139 | 7,674 |
Net income from continuing operations | 67,400 | 54,397 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,833 | 7,329 |
Share-based compensation | 2,892 | 2,927 |
Unrecognized tax benefits | 111 | 1,340 |
Deferred income taxes | 7,194 | (3) |
Amortization of debt issuance costs | 172 | 178 |
Goodwill impairment | 0 | 1,100 |
Changes in certain operating assets and liabilities | 21,610 | (15,946) |
Other, net | 153 | 541 |
Net cash provided by operating activities of continuing operations | 107,365 | 51,863 |
Net cash used in operating activities of discontinued operations | (2,403) | (16,561) |
Net cash provided by operating activities | 104,962 | 35,302 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (18,871) | (8,021) |
Purchases of investments | (83,509) | 0 |
Maturities of investments | 10,000 | 0 |
Net cash used in investing activities of continuing operations | (92,380) | (8,021) |
Net cash used in investing activities of discontinued operations | (501) | (2,818) |
Net cash used in investing activities | (92,881) | (10,839) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on revolving credit facility | 0 | (38,000) |
Borrowings on revolving credit facility | 0 | 12,000 |
Principal payments on long-term debt | (2,250) | (2,250) |
Repurchase and retirement of common stock | (15,972) | (21,454) |
Other, net | (609) | (245) |
Net cash used in financing activities of continuing operations | (18,831) | (49,949) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (6,750) | (25,486) |
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD | 34,203 | 39,252 |
CASH AND CASH EQUIVALENTS — END OF PERIOD | 27,453 | 13,766 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash payments for interest | 1,773 | 874 |
Cash payments for income taxes | 6,209 | 13,139 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Capital expenditures in accounts payable and accrued expenses | $ 2,855 | $ 421 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Apr. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation — The Company’s fiscal year begins July 1 and ends June 30, with the interim quarterly reporting periods consisting of 13 weeks. Therefore, the fiscal quarter end will not always coincide with the date of the end of a calendar month. The accompanying unaudited condensed consolidated financial statements include the accounts of MasterCraft Boat Holdings, Inc. ("Holdings") and its wholly owned subsidiaries. Holdings and its subsidiaries collectively are referred to herein as the "Company." The unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements for the year ended June 30, 2022, and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company’s financial position as of April 2, 2023, its results of operations for the three and nine months ended April 2, 2023 and April 3, 2022, its cash flows for the nine months ended April 2, 2023 and April 3, 2022, and its statements of stockholders’ equity for the three and nine months ended April 2, 2023 and April 3, 2022. All adjustments are of a normal, recurring nature. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the SEC for financial information have been condensed or omitted pursuant to such rules and regulations. The June 30, 2022 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by U.S. GAAP for complete financial statements. However, management believes that the disclosures in these condensed consolidated financial statements are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our 2022 Annual Report. Due to the seasonality of the Company’s business, the interim results are not necessarily indicative of the results that may be expected for the remainder of the fiscal year. There were no significant changes in or changes to the application of the Company’s significant or critical accounting policies or estimation procedures for the three and nine months ended April 2, 2023, as compared with those described in the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2022 . Investments — The Company has, and may continue to invest excess cash balances in short-term debt securities, such as money market funds, government-sponsored securities, corporate bonds, and/or certificates of deposit. The Company accounts for its investments in debt securities in accordance with ASC 320, Investments — Debt and Equity Securities . We classify our investments in debt securities based on the facts and circumstances present at the time of purchase of the securities. We subsequently reassess the appropriateness of that classification at each reporting date. As of April 2, 2023, all of our investments in debt securities were classified as held-to-maturity and are due to mature within one year (see Note 4). Estimated fair value measurements related to our debt securities are Level 2 measurements. See Part IV. Item 15, Note 1 — Significant Accounting Policies, Fair Value Measurements in Notes to Consolidated Financial Statements in our 2022 Annual Report for further fair value measurement details. Discontinued Operations — On September 2, 2022, the Company sold substantially all of the assets and liabilities of its NauticStar segment. The disposal represented the Company's exit from the saltwater fishing and deck boat category, a strategic shift that has a significant effect on the Company's operations and financial results, and as such, qualifies for reporting as discontinued operations. The NauticStar segment results, for the periods presented, are reflected in our condensed consolidated statements of operations and condensed consolidated statements of cash flows as discontinued operations. Additionally, the related assets and liabilities associated with the discontinued operations are classified as discontinued operations in our condensed consolidated balance sheet for the prior period presented (see Note 3). Unless otherwise indicated, the financial disclosures and related information provided herein relate to our continuing operations and we have recast prior period amounts to reflect discontinued operations. Reclassifications — Certain historical amounts have been reclassified in these condensed consolidated financial statements and the accompanying notes herewith to conform to the current presentation. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Apr. 02, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 2. REVENUE RECOGNITION The following tables present the Company's revenue by major product category for each reportable segment: Three Months Ended April 2, 2023 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 114,514 $ 35,936 $ 12,777 $ 163,227 Parts 2,798 285 — 3,083 Other revenue 318 148 — 466 Total $ 117,630 $ 36,369 $ 12,777 $ 166,776 Nine Months Ended April 2, 2023 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 328,254 $ 115,444 $ 39,570 $ 483,268 Parts 9,693 671 — 10,364 Other revenue 1,368 480 — 1,848 Total $ 339,315 $ 116,595 $ 39,570 $ 495,480 Three Months Ended April 3, 2022 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 116,964 $ 38,351 $ 10,428 $ 165,743 Parts 2,742 262 — 3,004 Other revenue 250 346 — 596 Total $ 119,956 $ 38,959 $ 10,428 $ 169,343 Nine Months Ended April 3, 2022 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 309,356 $ 100,088 $ 24,192 $ 433,636 Parts 8,625 649 — 9,274 Other revenue 763 720 — 1,483 Total $ 318,744 $ 101,457 $ 24,192 $ 444,393 Contract Liabilities As of June 30, 2022, the Company had $ 1.4 million of contract liabilities associated with customer deposits. During the nine months ended April 2, 2023, all of this amount was recognized as revenue. As of April 2, 2023 , total contract liabilities associated with customer deposits and services were $ 2.8 million, were reported in Accrued expenses and other current liabilities and Other long-term liabilities on the condensed consolidated balance sheet, and $ 1.1 million of the amounts are expected to be recognized as revenue during the remainder of the year ending June 30, 2023 . |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Apr. 02, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS On September 2, 2022, the Company sold its NauticStar business to certain affiliates of Iconic Marine Group, LLC ("Purchaser"). Pursuant to the terms of the purchase agreement, substantially all of the assets of NauticStar were sold, including, among other things, all of the issued and outstanding membership interests in its wholly-owned subsidiary NS Transport, LLC, all owned real property, equipment, inventory, intellectual property and accounts receivable, and the Purchaser assumed substantially all of the liabilities of NauticStar, including, among other things, product liability and warranty claims. In conjunction with the purchase agreement, the Company entered into a joint employer services agreement and a transition services agreement, which provide certain services to the Purchaser for various periods of time after the sale. Both agreements ended during the second quarter of fiscal 2023. These agreements did not a have a material impact on expenditures, earnings, nor cash flows during the three and nine months ended April 2, 2023. Further, the Company entered into the Second Amendment to the Credit Agreement as described further in Note 9 related to waivers of restrictions within the Credit Agreement, as amended, on the sale of assets. During the nine months ended April 2, 2023 , the Company recognized a $ 22.5 million loss on sale, subject to further changes based upon a customary working capital adjustment. Furthermore, assets and liabilities retained, primarily related to certain claims, are subject to change, with activity after the date of sale being recorded as discontinued operations. The following table summarizes the operating results of discontinued operations for the following periods: Three Months Ended Nine Months Ended April 3, April 2, April 3, 2022 2023 2022 NET SALES $ 17,392 $ 7,767 $ 45,817 COST OF SALES 19,433 9,732 49,481 GROSS LOSS ( 2,041 ) ( 1,965 ) ( 3,664 ) OPERATING EXPENSES: Selling, general and administrative 1,578 2,639 4,322 Amortization of other intangible assets 498 — 1,533 Total operating expenses 2,076 2,639 5,855 OPERATING LOSS ( 4,117 ) ( 4,604 ) ( 9,519 ) Loss on sale of discontinued operations — 22,487 — LOSS BEFORE INCOME TAX BENEFIT ( 4,117 ) ( 27,091 ) ( 9,519 ) INCOME TAX BENEFIT 746 5,952 1,845 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX $ ( 3,371 ) $ ( 21,139 ) $ ( 7,674 ) The operating results, and components thereof, of discontinued operations for the three months ended April 2, 2023 were not significant. The following table summarizes the assets and liabilities associated with discontinued operations: June 30, 2022 CURRENT ASSETS: Accounts receivable, net of allowance $ 3,130 Inventories, net 20,044 Other current assets 434 Total current assets classified as discontinued operations $ 23,608 NON-CURRENT ASSETS: Property, plant and equipment, net $ 5,924 Other long-term assets 63 Total non-current assets classified as discontinued operations $ 5,987 CURRENT LIABILITIES: Accounts payable $ 4,675 Accrued expenses and other current liabilities 3,212 Total current liabilities classified as discontinued operations $ 7,887 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Apr. 02, 2023 | |
Investments Disclosure [Abstract] | |
Investments | 4. INVESTMENTS During the three and nine months ended April 2, 2023, we invested a portion of our cash and cash equivalents in short-term investments, which primarily consist of investment grade corporate bonds. We have the ability and intention to hold these investments until maturity and therefore have classified these investments as held-to-maturity and recorded them at amortized cost and presented them in “Held-to-maturity securities” on our condensed consolidated balance sheet as of April 2, 2023. As of June 30, 2022, there were no outstanding held-to-maturity investments. The following is a summary of investments as of April 2, 2023: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Held-to-maturity securities: Fixed income securities: Corporate bonds $ 73,914 $ 22 $ ( 132 ) $ 73,804 Total held-to-maturity securities $ 73,914 $ 22 $ ( 132 ) $ 73,804 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Apr. 02, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES Inventories consisted of the following: April 2, June 30, 2023 2022 Raw materials and supplies $ 37,617 $ 45,021 Work in process 11,478 7,634 Finished goods 8,306 7,710 Obsolescence reserve ( 2,133 ) ( 1,770 ) Total inventories $ 55,268 $ 58,595 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 9 Months Ended |
Apr. 02, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | 6. PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment, net consisted of the following: April 2, June 30, 2023 2022 Land and improvements $ 6,457 $ 6,367 Buildings and improvements 36,437 35,379 Machinery and equipment 41,438 39,457 Furniture and fixtures 3,863 3,394 Construction in progress 21,062 6,315 Total property, plant, and equipment 109,257 90,912 Less accumulated depreciation ( 38,747 ) ( 35,089 ) Property, plant, and equipment — net $ 70,510 $ 55,823 Property, plant, and equipment, net increased mainly due to capital spending focused on maintenance capital, which includes tooling, capacity expansion, and information technology. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Apr. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. GOODWILL AND OTHER INTANGIBLE ASSETS The carrying amounts of goodwill as of April 2, 2023 and June 30, 2022, along with accumulated goodwill reallocations and accumulated impairment losses attributable to each of the Company’s reportable segments, were as follows: MasterCraft Crest Aviara Total Goodwill $ 29,593 $ 36,238 $ — $ 65,831 Goodwill reallocation ( 1,100 ) — 1,100 — Accumulated impairment losses — ( 36,238 ) ( 1,100 ) ( 37,338 ) Goodwill, net 28,493 — — 28,493 Fiscal 2022 Goodwill Impairment During the first quarter of fiscal 2022, a $ 1.1 million impairment charge was recognized for our Aviara reporting unit. See Part IV. Item 15, Note 5 — Goodwill and Other Intangible Assets in Notes to Consolidated Financial Statements in our 2022 Annual Report for further details. No goodwill impairment charges were recognized during the three and nine months ended April 2, 2023. The following table presents the carrying amount of Other intangible assets, net: April 2, June 30, 2023 2022 Gross Amount Accumulated Amortization / Impairment Other intangible assets, net Gross Amount Accumulated Amortization / Impairment Other intangible assets, net Amortized intangible assets Dealer networks $ 19,500 $ ( 9,573 ) $ 9,927 $ 19,500 $ ( 8,143 ) $ 11,357 Software 245 ( 221 ) 24 245 ( 184 ) 61 19,745 ( 9,794 ) 9,951 19,745 ( 8,327 ) 11,418 Unamortized intangible assets Trade names 33,000 ( 7,000 ) 26,000 33,000 ( 7,000 ) 26,000 Total other intangible assets $ 52,745 $ ( 16,794 ) $ 35,951 $ 52,745 $ ( 15,327 ) $ 37,418 Amortization expense related to Other intangible assets, net for the three and nine months ended April 2, 2023 and April 3, 2022 , was $ 0.5 million and $ 1.5 million, respectively. Estimated amortization expense for the fiscal year ending June 30, 2023 is $ 2.0 million. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Apr. 02, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: April 2, June 30, 2023 2022 Warranty $ 30,652 $ 25,824 Dealer incentives 20,914 15,508 Compensation and related accruals 5,151 4,908 Contract liabilities 1,465 1,447 Inventory repurchase contingent obligation 1,315 661 Self-insurance 1,179 1,171 Liabilities retained associated with discontinued operations 776 — Other 4,618 4,918 Total accrued expenses and other current liabilities $ 66,070 $ 54,437 Accrued warranty liability activity was as follows for the nine months ended: April 2, April 3, 2023 2022 Balance at the beginning of the period $ 25,824 $ 20,655 Provisions 10,766 8,453 Payments made ( 9,069 ) ( 6,192 ) Aggregate changes for preexisting warranties 3,131 1,266 Balance at the end of the period $ 30,652 $ 24,182 |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Apr. 02, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 9. LONG-TERM DEBT Long-term debt is as follows: April 2, June 30, 2023 2022 Term loan $ 54,750 $ 57,000 Debt issuance costs on term loan ( 355 ) ( 451 ) Total debt 54,395 56,549 Less current portion of long-term debt 4,125 3,000 Less current portion of debt issuance costs on term loan ( 121 ) ( 127 ) Long-term debt, net of current portion $ 50,391 $ 53,676 On June 28, 2021, the Company entered into a credit agreement with a syndicate of certain financial institutions (the “Credit Agreement”). The Credit Agreement provides the Company with a $ 160.0 million senior secured credit facility, consisting of a $ 60.0 million term loan (the “Term Loan”) and a $ 100.0 million revolving credit facility (the “Revolving Credit Facility”). The Credit Agreement refinanced and replaced the previously existing credit agreement. The Credit Agreement is secured by a first priority security interest in substantially all of the Company’s assets. The Credit Agreement contains a number of covenants that, among other things, restrict the Company’s ability to, subject to specified exceptions, incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve; engage in businesses that are not in a related line of business; make loans, advances or guarantees; pay dividends or make other distributions; engage in transactions with affiliates; and make investments. The Company is also required to maintain a minimum fixed charge coverage ratio and a maximum net leverage ratio. On August 31, 2022, the Company entered into the Second Amendment to the Credit Agreement to obtain the necessary consents and waivers related to the sale of the NauticStar segment on September 2, 2022, as discussed in Note 3. The Credit Agreement, as amended, bears interest, at the Company’s option, at either the prime rate plus an applicable margin ranging from 0.25 % to 1.00 % or at an adjusted term benchmark rate plus an applicable margin ranging from 1.25 % to 2.00 %, in each case based on the Company’s net leverage ratio. The Company is also required to pay a commitment fee for any unused portion of the revolving credit facility ranging from 0.15 % to 0.30 % based on the Company’s net leverage ratio. Effective during the three and nine months ended April 2, 2023 , the applicable margin for loans accruing at the prime rate was 0.25 % and the applicable margin for loans accruing interest at the benchmark rate was 1.25 %. As of April 2, 2023 , the interest rate on the Company’s term loan was 6.16 %. The Credit Agreement will mature and all remaining amounts outstanding thereunder will be due and payable on June 28, 2026. As of April 2, 2023, the Company was in compliance with its financial covenants under the Credit Agreement. Revolving Credit Facility As of April 2, 2023 , the Company had no amounts outstanding on its Revolving Credit Facility and had remaining availability of $ 100.0 million . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Apr. 02, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES The Company’s consolidated interim effective tax rate is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items. The differences between the Company’s effective tax rates and the statutory federal tax rate of 21.0 % primarily relate to the inclusion of the state tax rate in the overall effective rate, the benefit of federal and state credits, and a permanent benefit associated with the foreign derived intangible income deduction, partially offset by a permanent add-back for Section 162(m) limitations. During the three months ended April 2, 2023 and April 3, 2022, the Company's effective tax rate was 22.8 % and 22.3 % , respectively. During the nine months ended April 2, 2023 and April 3, 2022, the Company's effective tax rate was 23.2 % and 22.9 % , respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Apr. 02, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION The following table presents the components of share-based compensation expense by award type. Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, 2023 2022 2023 2022 Restricted stock awards $ 587 $ 441 $ 1,723 $ 1,399 Performance stock units 439 453 1,169 1,528 Share-based compensation expense $ 1,026 $ 894 $ 2,892 $ 2,927 Restricted Stock Awards During the nine months ended April 2, 2023 , the Company granted 97,525 restricted stock awards (“RSAs”) to the Company’s non-executive directors, officers and certain other key employees. Generally, the shares of restricted stock granted during the nine months ended April 2, 2023 , vest pro-rata over three years for officers and certain other key employees and over one year for non-executive directors. The Company determined the fair value of the shares awarded by using the close price of our common stock as of the date of grant. The weighted average grant date fair value of RSAs granted in the nine months ended April 2, 2023 , was $ 23.55 per share. The following table summarizes the status of nonvested RSAs as of April 2, 2023, and changes during the nine months then ended. Average Nonvested Grant-Date Restricted Fair Value Shares (per share) Nonvested at June 30, 2022 106,408 $ 21.65 Granted 97,525 23.55 Vested ( 34,418 ) 18.71 Forfeited ( 5,509 ) 21.96 Nonvested at April 2, 2023 164,006 23.39 As of April 2, 2023 , there was $ 2.2 million of total unrecognized compensation expense related to nonvested RSAs. The Company expects this expense to be recognized over a weighted average period of 1.7 years. Performance Stock Units Performance stock units (“PSUs”) are a form of long-term incentive compensation awarded to executive officers and certain other key employees designed to directly align the interests of employees to the interests of the Company’s stockholders, and to create long-term stockholder value. The awards will be earned based on the Company’s achievement of certain performance criteria over a three-year performance period. The performance period for the awards commences on July 1 of the fiscal year in which they were granted and continue for a three-year period, ending on June 30 of the applicable year. The probability of achieving the performance criteria is assessed quarterly. Following the determination of the Company’s achievement with respect to the performance criteria, the number of shares awarded is subject to further adjustment based on the application of a total shareholder return (“TSR”) modifier. The grant date fair value is determined based on both the probability assessment of the Company achieving the performance criteria and an estimate of the expected TSR modifier. The TSR modifier estimate is determined using a Monte Carlo Simulation model, which considers the likelihood of numerous possible outcomes of long-term market performance. Compensation expense related to nonvested PSUs is recognized ratably over the performance period. The following table summarizes the status of nonvested PSUs as of April 2, 2023, and changes during the nine months then ended. Average Nonvested Grant-Date Performance Fair Value Stock Units (per share) Nonvested at June 30, 2022 105,190 $ 25.30 Granted 76,567 26.08 Forfeited ( 1,996 ) 26.15 Nonvested at April 2, 2023 179,761 25.62 As of April 2, 2023 , there was $ 2.0 million of total unrecognized compensation expense related to nonvested PSUs. The Company expects this expense to be recognized over a weighted average period of 1.9 years. Nonqualified Stock Options In July 2015, the Company granted 137,786 nonqualified stock options ("NSOs") to certain employees. As of July 2019, all outstanding options were fully vested and exercisable. All outstanding options as of June 30, 2022, were exercised during the three months ended April 2, 2023. The following table summarizes the NSO activity for the nine months ended April 2, 2023. Weighted Average Exercise Shares Price Outstanding at June 30, 2022 15,146 $ 10.70 Granted — — Exercised ( 15,146 ) 10.70 Forfeited or expired — — Outstanding at April 2, 2023 — |
EARNINGS PER SHARE AND COMMON S
EARNINGS PER SHARE AND COMMON STOCK | 9 Months Ended |
Apr. 02, 2023 | |
Equity [Abstract] | |
EARNINGS PER SHARE AND COMMON STOCK | 12. EARNINGS PER SHARE AND COMMON STOCK The following table sets forth the computation of the Company’s net income per share: Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, 2023 2022 2023 2022 Net income from continuing operations $ 22,782 $ 24,306 $ 67,400 $ 54,397 Loss from discontinued operations, net of tax ( 272 ) ( 3,371 ) ( 21,139 ) ( 7,674 ) Net income $ 22,510 $ 20,935 $ 46,261 $ 46,723 Weighted average shares — basic 17,559,920 18,295,949 17,725,208 18,622,878 Dilutive effect of assumed exercises of stock options 4,816 9,044 7,028 12,093 Dilutive effect of assumed restricted share awards/units 184,174 182,353 119,419 161,896 Weighted average outstanding shares — diluted 17,748,910 18,487,346 17,851,655 18,796,867 Basic net income (loss) per share Continuing operations $ 1.30 $ 1.33 $ 3.80 $ 2.92 Discontinued operations ( 0.02 ) $ ( 0.19 ) ( 1.19 ) ( 0.41 ) Net income $ 1.28 $ 1.14 $ 2.61 $ 2.51 Diluted net income (loss) per share Continuing operations $ 1.28 $ 1.31 $ 3.78 $ 2.89 Discontinued operations ( 0.01 ) $ ( 0.18 ) ( 1.19 ) ( 0.40 ) Net income $ 1.27 $ 1.13 $ 2.59 $ 2.49 For the three and nine months ended April 2, 2023 and April 3, 2022, an immaterial number of shares were excluded from the computation of diluted earnings per share as the effect would have been anti-dilutive. Stock Repurchase Program On June 24, 2021, the board of directors of the Company authorized a stock repurchase program that allows for the repurchase of up to $ 50.0 million of the Company’s common stock during the three-year period ending June 24, 2024. During the three months ended April 2, 2023 and April 3, 2022 , the Company repurchased 210,150 shares and 395,948 shares of common stock for $ 7.0 million and $ 10.1 million, respectively, in cash, including related fees and expenses. During the nine months ended April 2, 2023 and April 3, 2022 , the Company repurchased 625,794 shares and 810,623 shares of common stock for $ 16.0 million and $ 21.5 million, respectively, in cash, including related fees and expenses. As of April 2, 2023 , $ 8.6 million remained available under the program. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Apr. 02, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 13. SEGMENT INFORMATION Reportable Segments Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the CODM in making decisions on how to allocate resources and assess performance. For the three and nine months ended April 2, 2023 , the Company’s CODM regularly assessed the operating performance of the Company’s boat brands under three operating and reportable segments: • The MasterCraft segment produces boats at its Vonore, Tennessee facility. These are premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. • The Crest segment produces pontoon boats at its Owosso, Michigan facility. Crest’s boats are primarily used for general recreational boating. • The Aviara segment produces luxury day boats at its Merritt Island, Florida facility. Aviara boats are primarily used for general recreational boating. Each segment distributes its products through its own independent dealer network. Each segment also has its own management structure which is responsible for the operations of the segment and is directly accountable to the CODM for the operating performance of the segment, which is regularly assessed by the CODM who allocates resources based on that performance. The Company files a consolidated income tax return and does not allocate income taxes and other corporate-level expenses, including interest, to operating segments. All material corporate costs are included in the MasterCraft segment. Selected financial information for the Company’s reportable segments was as follows: For the Three Months Ended April 2, 2023 MasterCraft Crest Aviara Consolidated Net sales $ 117,630 $ 36,369 $ 12,777 $ 166,776 Operating income (loss) 25,298 4,962 ( 1,234 ) 29,026 Depreciation and amortization 1,386 701 535 2,622 Purchases of property, plant and equipment 3,151 2,089 1,716 6,956 For the Nine Months Ended April 2, 2023 MasterCraft Crest Aviara Consolidated Net sales $ 339,315 $ 116,595 $ 39,570 $ 495,480 Operating income (loss) 72,269 17,576 ( 2,136 ) 87,709 Depreciation and amortization 4,132 2,104 1,597 7,833 Purchases of property, plant and equipment 8,434 6,292 4,145 18,871 For the Three Months Ended April 3, 2022 MasterCraft Crest Aviara Consolidated Net sales $ 119,956 $ 38,959 $ 10,428 $ 169,343 Operating income (loss) 28,051 5,568 ( 2,015 ) 31,604 Depreciation and amortization 1,248 657 602 2,507 Purchases of property, plant and equipment 1,434 1,146 496 3,076 For the Nine Months Ended April 3, 2022 MasterCraft Crest Aviara Consolidated Net sales $ 318,744 $ 101,457 $ 24,192 $ 444,393 Operating income (loss) 65,533 14,004 ( 7,934 ) 71,603 Depreciation and amortization 3,762 1,998 1,569 7,329 Goodwill impairment — — 1,100 1,100 Purchases of property, plant and equipment 4,966 2,190 865 8,021 The following table presents total assets for the Company’s reportable segments. April 2, 2023 June 30, 2022 Assets: MasterCraft $ 248,457 $ 178,386 Crest 52,075 53,956 Aviara 37,742 35,115 Discontinued operations — 29,595 Total assets $ 338,274 $ 297,052 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Apr. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation — The Company’s fiscal year begins July 1 and ends June 30, with the interim quarterly reporting periods consisting of 13 weeks. Therefore, the fiscal quarter end will not always coincide with the date of the end of a calendar month. The accompanying unaudited condensed consolidated financial statements include the accounts of MasterCraft Boat Holdings, Inc. ("Holdings") and its wholly owned subsidiaries. Holdings and its subsidiaries collectively are referred to herein as the "Company." The unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements for the year ended June 30, 2022, and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company’s financial position as of April 2, 2023, its results of operations for the three and nine months ended April 2, 2023 and April 3, 2022, its cash flows for the nine months ended April 2, 2023 and April 3, 2022, and its statements of stockholders’ equity for the three and nine months ended April 2, 2023 and April 3, 2022. All adjustments are of a normal, recurring nature. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the SEC for financial information have been condensed or omitted pursuant to such rules and regulations. The June 30, 2022 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by U.S. GAAP for complete financial statements. However, management believes that the disclosures in these condensed consolidated financial statements are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our 2022 Annual Report. Due to the seasonality of the Company’s business, the interim results are not necessarily indicative of the results that may be expected for the remainder of the fiscal year. There were no significant changes in or changes to the application of the Company’s significant or critical accounting policies or estimation procedures for the three and nine months ended April 2, 2023, as compared with those described in the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2022 . |
Investments | Investments — The Company has, and may continue to invest excess cash balances in short-term debt securities, such as money market funds, government-sponsored securities, corporate bonds, and/or certificates of deposit. The Company accounts for its investments in debt securities in accordance with ASC 320, Investments — Debt and Equity Securities . We classify our investments in debt securities based on the facts and circumstances present at the time of purchase of the securities. We subsequently reassess the appropriateness of that classification at each reporting date. As of April 2, 2023, all of our investments in debt securities were classified as held-to-maturity and are due to mature within one year (see Note 4). Estimated fair value measurements related to our debt securities are Level 2 measurements. See Part IV. Item 15, Note 1 — Significant Accounting Policies, Fair Value Measurements in Notes to Consolidated Financial Statements in our 2022 Annual Report for further fair value measurement details. |
Discontinued Operations | Discontinued Operations — On September 2, 2022, the Company sold substantially all of the assets and liabilities of its NauticStar segment. The disposal represented the Company's exit from the saltwater fishing and deck boat category, a strategic shift that has a significant effect on the Company's operations and financial results, and as such, qualifies for reporting as discontinued operations. The NauticStar segment results, for the periods presented, are reflected in our condensed consolidated statements of operations and condensed consolidated statements of cash flows as discontinued operations. Additionally, the related assets and liabilities associated with the discontinued operations are classified as discontinued operations in our condensed consolidated balance sheet for the prior period presented (see Note 3). Unless otherwise indicated, the financial disclosures and related information provided herein relate to our continuing operations and we have recast prior period amounts to reflect discontinued operations. |
Reclassifications | Reclassifications — Certain historical amounts have been reclassified in these condensed consolidated financial statements and the accompanying notes herewith to conform to the current presentation. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Apr. 03, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenues from Contracts with Customers by Major Product Category and Reportable Segment | The following tables present the Company's revenue by major product category for each reportable segment: Three Months Ended April 2, 2023 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 114,514 $ 35,936 $ 12,777 $ 163,227 Parts 2,798 285 — 3,083 Other revenue 318 148 — 466 Total $ 117,630 $ 36,369 $ 12,777 $ 166,776 Nine Months Ended April 2, 2023 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 328,254 $ 115,444 $ 39,570 $ 483,268 Parts 9,693 671 — 10,364 Other revenue 1,368 480 — 1,848 Total $ 339,315 $ 116,595 $ 39,570 $ 495,480 Three Months Ended April 3, 2022 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 116,964 $ 38,351 $ 10,428 $ 165,743 Parts 2,742 262 — 3,004 Other revenue 250 346 — 596 Total $ 119,956 $ 38,959 $ 10,428 $ 169,343 Nine Months Ended April 3, 2022 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 309,356 $ 100,088 $ 24,192 $ 433,636 Parts 8,625 649 — 9,274 Other revenue 763 720 — 1,483 Total $ 318,744 $ 101,457 $ 24,192 $ 444,393 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Operating Results and Balance Sheet Data for Discontinued Operations and Disposals | The following table summarizes the operating results of discontinued operations for the following periods: Three Months Ended Nine Months Ended April 3, April 2, April 3, 2022 2023 2022 NET SALES $ 17,392 $ 7,767 $ 45,817 COST OF SALES 19,433 9,732 49,481 GROSS LOSS ( 2,041 ) ( 1,965 ) ( 3,664 ) OPERATING EXPENSES: Selling, general and administrative 1,578 2,639 4,322 Amortization of other intangible assets 498 — 1,533 Total operating expenses 2,076 2,639 5,855 OPERATING LOSS ( 4,117 ) ( 4,604 ) ( 9,519 ) Loss on sale of discontinued operations — 22,487 — LOSS BEFORE INCOME TAX BENEFIT ( 4,117 ) ( 27,091 ) ( 9,519 ) INCOME TAX BENEFIT 746 5,952 1,845 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX $ ( 3,371 ) $ ( 21,139 ) $ ( 7,674 ) The operating results, and components thereof, of discontinued operations for the three months ended April 2, 2023 were not significant. The following table summarizes the assets and liabilities associated with discontinued operations: June 30, 2022 CURRENT ASSETS: Accounts receivable, net of allowance $ 3,130 Inventories, net 20,044 Other current assets 434 Total current assets classified as discontinued operations $ 23,608 NON-CURRENT ASSETS: Property, plant and equipment, net $ 5,924 Other long-term assets 63 Total non-current assets classified as discontinued operations $ 5,987 CURRENT LIABILITIES: Accounts payable $ 4,675 Accrued expenses and other current liabilities 3,212 Total current liabilities classified as discontinued operations $ 7,887 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Investments Disclosure [Abstract] | |
Summary of investments | The following is a summary of investments as of April 2, 2023: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Held-to-maturity securities: Fixed income securities: Corporate bonds $ 73,914 $ 22 $ ( 132 ) $ 73,804 Total held-to-maturity securities $ 73,914 $ 22 $ ( 132 ) $ 73,804 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: April 2, June 30, 2023 2022 Raw materials and supplies $ 37,617 $ 45,021 Work in process 11,478 7,634 Finished goods 8,306 7,710 Obsolescence reserve ( 2,133 ) ( 1,770 ) Total inventories $ 55,268 $ 58,595 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant, and equipment, net consisted of the following: April 2, June 30, 2023 2022 Land and improvements $ 6,457 $ 6,367 Buildings and improvements 36,437 35,379 Machinery and equipment 41,438 39,457 Furniture and fixtures 3,863 3,394 Construction in progress 21,062 6,315 Total property, plant, and equipment 109,257 90,912 Less accumulated depreciation ( 38,747 ) ( 35,089 ) Property, plant, and equipment — net $ 70,510 $ 55,823 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amounts of Goodwill | The carrying amounts of goodwill as of April 2, 2023 and June 30, 2022, along with accumulated goodwill reallocations and accumulated impairment losses attributable to each of the Company’s reportable segments, were as follows: MasterCraft Crest Aviara Total Goodwill $ 29,593 $ 36,238 $ — $ 65,831 Goodwill reallocation ( 1,100 ) — 1,100 — Accumulated impairment losses — ( 36,238 ) ( 1,100 ) ( 37,338 ) Goodwill, net 28,493 — — 28,493 |
Schedule of Carrying Amount of Other Intangible Assets, Net | The following table presents the carrying amount of Other intangible assets, net: April 2, June 30, 2023 2022 Gross Amount Accumulated Amortization / Impairment Other intangible assets, net Gross Amount Accumulated Amortization / Impairment Other intangible assets, net Amortized intangible assets Dealer networks $ 19,500 $ ( 9,573 ) $ 9,927 $ 19,500 $ ( 8,143 ) $ 11,357 Software 245 ( 221 ) 24 245 ( 184 ) 61 19,745 ( 9,794 ) 9,951 19,745 ( 8,327 ) 11,418 Unamortized intangible assets Trade names 33,000 ( 7,000 ) 26,000 33,000 ( 7,000 ) 26,000 Total other intangible assets $ 52,745 $ ( 16,794 ) $ 35,951 $ 52,745 $ ( 15,327 ) $ 37,418 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: April 2, June 30, 2023 2022 Warranty $ 30,652 $ 25,824 Dealer incentives 20,914 15,508 Compensation and related accruals 5,151 4,908 Contract liabilities 1,465 1,447 Inventory repurchase contingent obligation 1,315 661 Self-insurance 1,179 1,171 Liabilities retained associated with discontinued operations 776 — Other 4,618 4,918 Total accrued expenses and other current liabilities $ 66,070 $ 54,437 |
Summary of Accrued Warranty Liability Activity | Accrued warranty liability activity was as follows for the nine months ended: April 2, April 3, 2023 2022 Balance at the beginning of the period $ 25,824 $ 20,655 Provisions 10,766 8,453 Payments made ( 9,069 ) ( 6,192 ) Aggregate changes for preexisting warranties 3,131 1,266 Balance at the end of the period $ 30,652 $ 24,182 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt is as follows: April 2, June 30, 2023 2022 Term loan $ 54,750 $ 57,000 Debt issuance costs on term loan ( 355 ) ( 451 ) Total debt 54,395 56,549 Less current portion of long-term debt 4,125 3,000 Less current portion of debt issuance costs on term loan ( 121 ) ( 127 ) Long-term debt, net of current portion $ 50,391 $ 53,676 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Components of Share-based Compensation Expense by Award Type | The following table presents the components of share-based compensation expense by award type. Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, 2023 2022 2023 2022 Restricted stock awards $ 587 $ 441 $ 1,723 $ 1,399 Performance stock units 439 453 1,169 1,528 Share-based compensation expense $ 1,026 $ 894 $ 2,892 $ 2,927 |
Summary of Status of Nonvested Restricted Stock Awards and Changes | The following table summarizes the status of nonvested RSAs as of April 2, 2023, and changes during the nine months then ended. Average Nonvested Grant-Date Restricted Fair Value Shares (per share) Nonvested at June 30, 2022 106,408 $ 21.65 Granted 97,525 23.55 Vested ( 34,418 ) 18.71 Forfeited ( 5,509 ) 21.96 Nonvested at April 2, 2023 164,006 23.39 |
Summary of Status of Nonvested Performance Stock Units and Changes | The following table summarizes the status of nonvested PSUs as of April 2, 2023, and changes during the nine months then ended. Average Nonvested Grant-Date Performance Fair Value Stock Units (per share) Nonvested at June 30, 2022 105,190 $ 25.30 Granted 76,567 26.08 Forfeited ( 1,996 ) 26.15 Nonvested at April 2, 2023 179,761 25.62 |
Summary of Nonqualified Stock Options Activity | The following table summarizes the NSO activity for the nine months ended April 2, 2023. Weighted Average Exercise Shares Price Outstanding at June 30, 2022 15,146 $ 10.70 Granted — — Exercised ( 15,146 ) 10.70 Forfeited or expired — — Outstanding at April 2, 2023 — |
EARNINGS PER SHARE AND COMMON_2
EARNINGS PER SHARE AND COMMON STOCK (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Equity [Abstract] | |
Factors Used in Net Income Per Share Computation | The following table sets forth the computation of the Company’s net income per share: Three Months Ended Nine Months Ended April 2, April 3, April 2, April 3, 2023 2022 2023 2022 Net income from continuing operations $ 22,782 $ 24,306 $ 67,400 $ 54,397 Loss from discontinued operations, net of tax ( 272 ) ( 3,371 ) ( 21,139 ) ( 7,674 ) Net income $ 22,510 $ 20,935 $ 46,261 $ 46,723 Weighted average shares — basic 17,559,920 18,295,949 17,725,208 18,622,878 Dilutive effect of assumed exercises of stock options 4,816 9,044 7,028 12,093 Dilutive effect of assumed restricted share awards/units 184,174 182,353 119,419 161,896 Weighted average outstanding shares — diluted 17,748,910 18,487,346 17,851,655 18,796,867 Basic net income (loss) per share Continuing operations $ 1.30 $ 1.33 $ 3.80 $ 2.92 Discontinued operations ( 0.02 ) $ ( 0.19 ) ( 1.19 ) ( 0.41 ) Net income $ 1.28 $ 1.14 $ 2.61 $ 2.51 Diluted net income (loss) per share Continuing operations $ 1.28 $ 1.31 $ 3.78 $ 2.89 Discontinued operations ( 0.01 ) $ ( 0.18 ) ( 1.19 ) ( 0.40 ) Net income $ 1.27 $ 1.13 $ 2.59 $ 2.49 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Apr. 02, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Information for Reportable Segments | Selected financial information for the Company’s reportable segments was as follows: For the Three Months Ended April 2, 2023 MasterCraft Crest Aviara Consolidated Net sales $ 117,630 $ 36,369 $ 12,777 $ 166,776 Operating income (loss) 25,298 4,962 ( 1,234 ) 29,026 Depreciation and amortization 1,386 701 535 2,622 Purchases of property, plant and equipment 3,151 2,089 1,716 6,956 For the Nine Months Ended April 2, 2023 MasterCraft Crest Aviara Consolidated Net sales $ 339,315 $ 116,595 $ 39,570 $ 495,480 Operating income (loss) 72,269 17,576 ( 2,136 ) 87,709 Depreciation and amortization 4,132 2,104 1,597 7,833 Purchases of property, plant and equipment 8,434 6,292 4,145 18,871 For the Three Months Ended April 3, 2022 MasterCraft Crest Aviara Consolidated Net sales $ 119,956 $ 38,959 $ 10,428 $ 169,343 Operating income (loss) 28,051 5,568 ( 2,015 ) 31,604 Depreciation and amortization 1,248 657 602 2,507 Purchases of property, plant and equipment 1,434 1,146 496 3,076 For the Nine Months Ended April 3, 2022 MasterCraft Crest Aviara Consolidated Net sales $ 318,744 $ 101,457 $ 24,192 $ 444,393 Operating income (loss) 65,533 14,004 ( 7,934 ) 71,603 Depreciation and amortization 3,762 1,998 1,569 7,329 Goodwill impairment — — 1,100 1,100 Purchases of property, plant and equipment 4,966 2,190 865 8,021 The following table presents total assets for the Company’s reportable segments. April 2, 2023 June 30, 2022 Assets: MasterCraft $ 248,457 $ 178,386 Crest 52,075 53,956 Aviara 37,742 35,115 Discontinued operations — 29,595 Total assets $ 338,274 $ 297,052 |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Revenues From Contracts with Customers by Major Product Category and Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 02, 2023 | Apr. 03, 2022 | Apr. 03, 2022 | Apr. 02, 2023 | Apr. 03, 2022 | |
Revenue by Categories | |||||
Revenue | $ 166,776 | $ 169,343 | $ 169,343 | $ 495,480 | $ 444,393 |
MasterCraft | |||||
Revenue by Categories | |||||
Revenue | 117,630 | 119,956 | 119,956 | 339,315 | 318,744 |
Crest | |||||
Revenue by Categories | |||||
Revenue | 36,369 | 38,959 | 38,959 | 116,595 | 101,457 |
Aviara | |||||
Revenue by Categories | |||||
Revenue | 12,777 | $ 10,428 | 10,428 | 39,570 | 24,192 |
Boats and trailers | |||||
Revenue by Categories | |||||
Revenue | 163,227 | 165,743 | 483,268 | 433,636 | |
Boats and trailers | MasterCraft | |||||
Revenue by Categories | |||||
Revenue | 114,514 | 116,964 | 328,254 | 309,356 | |
Boats and trailers | Crest | |||||
Revenue by Categories | |||||
Revenue | 35,936 | 38,351 | 115,444 | 100,088 | |
Boats and trailers | Aviara | |||||
Revenue by Categories | |||||
Revenue | 12,777 | 10,428 | 39,570 | 24,192 | |
Parts | |||||
Revenue by Categories | |||||
Revenue | 3,083 | 3,004 | 10,364 | 9,274 | |
Parts | MasterCraft | |||||
Revenue by Categories | |||||
Revenue | 2,798 | 2,742 | 9,693 | 8,625 | |
Parts | Crest | |||||
Revenue by Categories | |||||
Revenue | 285 | 262 | 671 | 649 | |
Other | |||||
Revenue by Categories | |||||
Revenue | 466 | 596 | 1,848 | 1,483 | |
Other | MasterCraft | |||||
Revenue by Categories | |||||
Revenue | 318 | 250 | 1,368 | 763 | |
Other | Crest | |||||
Revenue by Categories | |||||
Revenue | $ 148 | $ 346 | $ 480 | $ 720 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Apr. 02, 2023 | Jun. 30, 2022 |
Contract liabilities | |||
Customer contract liabilities | $ 1,465 | $ 1,447 | |
Subsequent Event [Member] | |||
Contract liabilities | |||
Revenue, Remaining Performance Obligation, Amount | $ 1,100 | ||
Other Noncurrent Liabilities [Member] | |||
Contract liabilities | |||
Contract With Customer Liability Noncurrent And Liability Current | $ 2,800 |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Details) $ in Millions | 9 Months Ended |
Apr. 02, 2023 USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Non-cash pretax loss | $ 22.5 |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary of Operating Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Apr. 03, 2022 | Apr. 02, 2023 | Apr. 03, 2022 | |
OPERATING EXPENSES: | |||
Loss on sale of discontinued operations | $ 22,500 | ||
NauticStar | |||
Discontinued Operations | |||
NET SALES | $ 17,392 | 7,767 | $ 45,817 |
COST OF SALES | 19,433 | 9,732 | 49,481 |
GROSS LOSS | (2,041) | (1,965) | (3,664) |
OPERATING EXPENSES: | |||
Selling, general and administrative | 1,578 | 2,639 | 4,322 |
Amortization of other intangible assets | 498 | 1,533 | |
Total operating expenses | 2,076 | 2,639 | 5,855 |
OPERATING LOSS | (4,117) | (4,604) | (9,519) |
Loss on sale of discontinued operations | 0 | 22,487 | |
LOSS BEFORE INCOME TAX BENEFIT | (4,117) | (27,091) | (9,519) |
INCOME TAX BENEFIT | 746 | 5,952 | 1,845 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | $ (3,371) | $ (21,139) | $ (7,674) |
DISCONTINUED OPERATIONS - Sum_2
DISCONTINUED OPERATIONS - Summary of Assets and Liabilities Associated with Discontinued Operations (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Jun. 30, 2022 |
CURRENT ASSETS: | ||
Total current assets classified as discontinued operation | $ 0 | $ 23,608 |
NON-CURRENT ASSETS: | ||
Total non-current assets classified as discontinued operations | 0 | 5,987 |
CURRENT LIABILITIES: | ||
Total current liabilities classified as discontinued operations | $ 0 | 7,887 |
NauticStar | ||
CURRENT ASSETS: | ||
Accounts receivable, net of allowance | 3,130 | |
Inventories, net | 20,044 | |
Other current assets | 434 | |
Total current assets classified as discontinued operation | 23,608 | |
NON-CURRENT ASSETS: | ||
Property, plant and equipment, net | 5,924 | |
Other long-term assets | 63 | |
Total non-current assets classified as discontinued operations | 5,987 | |
CURRENT LIABILITIES: | ||
Accounts payable | 4,675 | |
Accrued expenses and other current liabilities | 3,212 | |
Total current liabilities classified as discontinued operations | $ 7,887 |
INVESTMENTS - Summary of invest
INVESTMENTS - Summary of investments (Details) $ in Thousands | Apr. 02, 2023 USD ($) |
Amortized Cost | $ 73,914 |
Gross Unrealized Gains | 22 |
Gross Unrealized Losses | (132) |
Estimated Fair Value | 73,804 |
Corporate Bond | |
Amortized Cost | 73,914 |
Gross Unrealized Gains | 22 |
Gross Unrealized Losses | (132) |
Estimated Fair Value | $ 73,804 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Jun. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 37,617 | $ 45,021 |
Work in process | 11,478 | 7,634 |
Finished goods | 8,306 | 7,710 |
Obsolescence reserve | (2,133) | (1,770) |
Total inventories | $ 55,268 | $ 58,595 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT - Schedule of Property Plant And Equipment Net Consisted (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 6,457 | $ 6,367 |
Buildings and improvements | 36,437 | 35,379 |
Machinery and equipment | 41,438 | 39,457 |
Furniture and fixtures | 3,863 | 3,394 |
Construction in progress | 21,062 | 6,315 |
Total property, plant, and equipment | 109,257 | 90,912 |
Less accumulated depreciation | (38,747) | (35,089) |
Property, plant and equipment, net | $ 70,510 | $ 55,823 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 02, 2023 | Apr. 03, 2022 | Apr. 02, 2023 | Apr. 03, 2022 | Jun. 30, 2023 | |
Indefinite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 1,100 | |
Amortization of other intangible assets | $ 489 | 489 | $ 1,467 | 1,467 | |
Aviara | |||||
Indefinite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment | $ 1,100 | $ 1,100 | |||
ScenarioForecastMember | |||||
Indefinite-Lived Intangible Assets [Line Items] | |||||
Estimated amortization expense June 30, 2023 | $ 2,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 02, 2023 | Apr. 03, 2022 | Apr. 02, 2023 | Apr. 03, 2022 | Jun. 30, 2022 | |
Goodwill [Line Items] | |||||
Goodwill | $ 65,831 | $ 65,831 | |||
Accumulated impairment losses | (37,338) | (37,338) | |||
Impairment | 0 | $ 0 | 0 | $ (1,100) | |
Goodwill, net | 28,493 | 28,493 | $ 28,493 | ||
MasterCraft | |||||
Goodwill [Line Items] | |||||
Goodwill | 29,593 | 29,593 | |||
Goodwill reallocation | (1,100) | ||||
Impairment | 0 | ||||
Goodwill, net | 28,493 | 28,493 | |||
Crest | |||||
Goodwill [Line Items] | |||||
Goodwill | 36,238 | 36,238 | |||
Accumulated impairment losses | (36,238) | (36,238) | |||
Impairment | 0 | ||||
Aviara | |||||
Goodwill [Line Items] | |||||
Goodwill reallocation | 1,100 | ||||
Accumulated impairment losses | $ (1,100) | $ (1,100) | |||
Impairment | $ (1,100) | $ (1,100) |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Carrying Amount of Other Intangible Assets, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Apr. 02, 2023 | Jun. 30, 2022 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Amortized intangible assets, Gross Amount | $ 19,745 | $ 19,745 |
Amortized intangible assets, Accumulated Amortization / Impairment | (9,794) | (8,327) |
Amortized intangible assets, Other intangible assets, net | 9,951 | 11,418 |
Gross Amount | 52,745 | 52,745 |
Accumulated Amortization / Impairment | (16,794) | (15,327) |
Other intangible assets, net | 35,951 | 37,418 |
Dealer network | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Amortized intangible assets, Gross Amount | 19,500 | 19,500 |
Amortized intangible assets, Accumulated Amortization / Impairment | (9,573) | (8,143) |
Amortized intangible assets, Other intangible assets, net | 9,927 | 11,357 |
Software | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Amortized intangible assets, Gross Amount | 245 | 245 |
Amortized intangible assets, Accumulated Amortization / Impairment | (221) | (184) |
Amortized intangible assets, Other intangible assets, net | 24 | 61 |
Trade names | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Unamortized intangible assets, Gross Amount | 33,000 | 33,000 |
Unamortized intangible assets, Accumulated Amortization / Impairment | (7,000) | (7,000) |
Unamortized intangible assets, Other intangible assets, net | $ 26,000 | $ 26,000 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Jun. 30, 2022 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Warranty | $ 30,652 | $ 25,824 |
Dealer incentives | 20,914 | 15,508 |
Compensation and related accruals | 5,151 | 4,908 |
Contract liabilities | 1,465 | 1,447 |
Self-insurance | 1,179 | 1,171 |
Inventory repurchase contingent obligation | 1,315 | 661 |
Liabilities retained associated with discontinued operations | 776 | 0 |
Other | 4,618 | 4,918 |
Total accrued expenses and other current liabilities | $ 66,070 | $ 54,437 |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Summary of Accrued Warranty Liability Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 02, 2023 | Apr. 03, 2022 | |
Roll forward of the accrued warranty liability | ||
Balance at the beginning of the period | $ 25,824 | $ 20,655 |
Provisions | 10,766 | 8,453 |
Payments made | (9,069) | (6,192) |
Aggregate changes for preexisting warranties | 3,131 | 1,266 |
Balance at the end of the period | $ 30,652 | $ 24,182 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Apr. 02, 2023 | Jun. 30, 2022 |
Long-term debt | ||
Total debt | $ 54,395 | $ 56,549 |
Less current portion of long-term debt | 4,125 | 3,000 |
Long-term debt, net of current portion | 50,391 | 53,676 |
Term Loan | ||
Long-term debt | ||
Long-term debt | 54,750 | 57,000 |
Debt issuance costs on term loans | (355) | (451) |
Less current portion of debt issuance costs on term loans | $ (121) | $ (127) |
LONG-TERM DEBT - Senior Secured
LONG-TERM DEBT - Senior Secured Credit Facility - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2023 | Apr. 02, 2023 | Jun. 30, 2022 | Jun. 28, 2021 | |
Term Loan | ||||
Long-term debt | ||||
Long-term debt | $ 54,750 | $ 54,750 | $ 57,000 | |
Interest rate | 6.16% | 6.16% | ||
Senior Secured Credit Facility | ||||
Long-term debt | ||||
Maximum borrowing capacity | $ 160,000 | |||
Senior Secured Credit Facility | Prime Rate | ||||
Long-term debt | ||||
Variable margin rate | 0.25% | 0.25% | ||
Senior Secured Credit Facility | Prime Rate | Minimum | ||||
Long-term debt | ||||
Variable margin rate | 0.25% | |||
Senior Secured Credit Facility | Prime Rate | Maximum | ||||
Long-term debt | ||||
Variable margin rate | 1% | |||
Senior Secured Credit Facility | term benchmark | ||||
Long-term debt | ||||
Variable margin rate | 1.25% | 1.25% | ||
Senior Secured Credit Facility | term benchmark | Minimum | ||||
Long-term debt | ||||
Variable margin rate | 1.25% | |||
Senior Secured Credit Facility | term benchmark | Maximum | ||||
Long-term debt | ||||
Variable margin rate | 2% | |||
Senior Secured Credit Facility | Term Loan | ||||
Long-term debt | ||||
Long-term debt | 60,000 | |||
Senior Secured Credit Facility | Revolving Credit Facility | ||||
Long-term debt | ||||
Maximum borrowing capacity | $ 100,000 | |||
Senior Secured Credit Facility | Revolving Credit Facility | Minimum | ||||
Long-term debt | ||||
Commitment fee percentage | 0.15% | |||
Senior Secured Credit Facility | Revolving Credit Facility | Maximum | ||||
Long-term debt | ||||
Commitment fee percentage | 0.30% |
LONG-TERM DEBT - Revolving Cred
LONG-TERM DEBT - Revolving Credit Facility - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Apr. 02, 2023 | Apr. 03, 2022 | Jan. 01, 2023 | |
Debt Instrument [Line Items] | |||
Repaid outstanding borrowings | $ 0 | $ 38,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 0 | ||
Remaining borrowing capacity | $ 100,000 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2023 | Apr. 03, 2022 | Apr. 02, 2023 | Apr. 03, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rates | 22.80% | 22.30% | 23.20% | 22.90% |
Statutory income tax rate | 21% |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Components of Share-based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2023 | Apr. 03, 2022 | Apr. 02, 2023 | Apr. 03, 2022 | |
Stock-Based Compensation | ||||
Share-based compensation expense | $ 1,026 | $ 894 | $ 2,892 | $ 2,927 |
Restricted stock awards | ||||
Stock-Based Compensation | ||||
Share-based compensation expense | 587 | 441 | 1,723 | 1,399 |
Performance stock units | ||||
Stock-Based Compensation | ||||
Share-based compensation expense | $ 439 | $ 453 | $ 1,169 | $ 1,528 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Awards - Additional Information (Details) - Restricted stock awards $ / shares in Units, $ in Millions | 9 Months Ended |
Apr. 02, 2023 USD ($) $ / shares shares | |
Stock-Based Compensation | |
Stock awards granted | 97,525 |
Weighted average grant date value | $ / shares | $ 23.55 |
Unrecognized compensation expense | $ | $ 2.2 |
Weighted average period | 1 year 8 months 12 days |
Non-executive directors, officers and certain other key employees | |
Stock-Based Compensation | |
Stock awards granted | 97,525 |
Officers and certain other key employees | |
Stock-Based Compensation | |
Vesting period (in years) | 3 years |
Non-executive directors | |
Stock-Based Compensation | |
Vesting period (in years) | 1 year |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Status of Nonvested Restricted Stock Awards and Changes (Details) - Restricted stock awards | 9 Months Ended |
Apr. 02, 2023 $ / shares shares | |
Nonvested Restricted Shares | |
Nonvested at beginning of period | shares | 106,408 |
Granted | shares | 97,525 |
Vested | shares | (34,418) |
Forfeited | shares | (5,509) |
Nonvested at end of period | shares | 164,006 |
Average Grant-Date Fair Value (Per share) | |
Nonvested at beginning of period | $ / shares | $ 21.65 |
Granted | $ / shares | 23.55 |
Vested | $ / shares | 18.71 |
Forfeited | $ / shares | 21.96 |
Nonvested at end of period | $ / shares | $ 23.39 |
SHARE-BASED COMPENSATION - Perf
SHARE-BASED COMPENSATION - Performance Stock Units - Additional Information (Details) - Performance stock units $ in Millions | 9 Months Ended |
Apr. 02, 2023 USD ($) | |
Stock-Based Compensation | |
Unrecognized compensation expense | $ 2 |
Weighted average period | 1 year 10 months 24 days |
Executive officers and certain other key employees | |
Stock-Based Compensation | |
Vesting period (in years) | 3 years |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of Status of Nonvested Performance Stock Units and Changes (Details) - Performance stock units | 9 Months Ended |
Apr. 02, 2023 $ / shares shares | |
Nonvested Performance Stock Units | |
Nonvested at beginning of period | shares | 105,190 |
Granted | shares | 76,567 |
Forfeited | shares | (1,996) |
Nonvested at end of period | shares | 179,761 |
Average Grant-Date Fair Value (Per share) | |
Nonvested at beginning of period | $ / shares | $ 25.30 |
Granted | $ / shares | 26.08 |
Forfeited | $ / shares | 26.15 |
Nonvested at end of period | $ / shares | $ 25.62 |
SHARE-BASED COMPENSATION-Nonqua
SHARE-BASED COMPENSATION-Nonqualified Stock Option (Details) | 9 Months Ended |
Apr. 02, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at June 30, 2022 | 15,146 |
Exercised | (15,146) |
Outstanding at April 2, 2023 | 0 |
Weighted Average Exercise Price | |
Outstanding at June 30, 2022 | $ / shares | $ 10.70 |
Exercised | $ / shares | $ 10.70 |
SHARE-BASED COMPENSATION-Nonq_2
SHARE-BASED COMPENSATION-Nonqualified Stock Options (Additional Information) (Details) | 1 Months Ended |
Jul. 31, 2015 shares | |
Equity Incentive Plan 2015 Member | Nonqualified stock options | Certain employees | |
Stock-Based Compensation | |
Options granted | 137,786 |
EARNINGS PER SHARE AND COMMON_3
EARNINGS PER SHARE AND COMMON STOCK - Factors Used in Earnings Per Share Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2023 | Apr. 03, 2022 | Apr. 02, 2023 | Apr. 03, 2022 | |
Earnings Per Share Basic [Line Items] | ||||
NET INCOME FROM CONTINUING OPERATIONS | $ 22,782 | $ 24,306 | $ 67,400 | $ 54,397 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (Note 3) | (272) | (3,371) | (21,139) | (7,674) |
Net Income | $ 22,510 | $ 20,935 | $ 46,261 | $ 46,723 |
Weighted average shares — basic | 17,559,920 | 18,295,949 | 17,725,208 | 18,622,878 |
Weighted average outstanding shares — diluted | 17,748,910 | 18,487,346 | 17,851,655 | 18,796,867 |
Basic net income (loss) per share | ||||
Continuing operations | $ 1.30 | $ 1.33 | $ 3.80 | $ 2.92 |
Discontinued operations | (0.02) | (0.19) | (1.19) | (0.41) |
Net income | 1.28 | 1.14 | 2.61 | 2.51 |
Diluted net income (loss) per share | ||||
Continuing operations | 1.28 | 1.31 | 3.78 | 2.89 |
Discontinued operations | (0.01) | (0.18) | (1.19) | (0.40) |
Net income | $ 1.27 | $ 1.13 | $ 2.59 | $ 2.49 |
Stock options | ||||
Earnings Per Share Basic [Line Items] | ||||
Dilutive effect of assumed exercises of stock options and restricted share awards\units | 4,816 | 9,044 | 7,028 | 12,093 |
Restricted stock awards | ||||
Earnings Per Share Basic [Line Items] | ||||
Dilutive effect of assumed exercises of stock options and restricted share awards\units | 184,174 | 182,353 | 119,419 | 161,896 |
EARNINGS PER SHARE AND COMMON_4
EARNINGS PER SHARE AND COMMON STOCK - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Apr. 03, 2022 | Jan. 02, 2022 | Oct. 03, 2021 | Apr. 02, 2023 | Apr. 03, 2022 | Jun. 24, 2021 | |
Class Of Stock [Line Items] | |||||||||
Repurchase of shares in cash, including related fees and expenses | $ 7,000 | $ 10,100 | $ 15,972 | $ 21,454 | |||||
Stock repurchase program, remained available under the program | $ 8,600 | $ 8,600 | |||||||
Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Stock repurchase program, number of shares authorized | $ 50,000 | ||||||||
Number of shares repurchased | 210,150 | 224,284 | 191,360 | 395,948 | 356,296 | 58,379 | 625,794 | 810,623 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 9 Months Ended |
Apr. 02, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Operating Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 02, 2023 | Apr. 03, 2022 | Apr. 03, 2022 | Apr. 02, 2023 | Apr. 03, 2022 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 166,776 | $ 169,343 | $ 169,343 | $ 495,480 | $ 444,393 | |
Operating income (loss) | 29,026 | 31,604 | 87,709 | 71,603 | ||
Depreciation and amortization | 2,622 | 2,507 | 7,833 | 7,329 | ||
Goodwill impairment | 0 | 0 | 0 | 1,100 | ||
Purchases of property, plant and equipment | 6,956 | 3,076 | 18,871 | 8,021 | ||
Total assets | 338,274 | 338,274 | $ 297,052 | |||
MasterCraft | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 117,630 | 119,956 | 119,956 | 339,315 | 318,744 | |
Operating income (loss) | 25,298 | 28,051 | 72,269 | 65,533 | ||
Depreciation and amortization | 1,386 | 1,248 | 4,132 | 3,762 | ||
Goodwill impairment | 0 | |||||
Purchases of property, plant and equipment | 3,151 | 1,434 | 8,434 | 4,966 | ||
MasterCraft | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 248,457 | 248,457 | 178,386 | |||
Crest | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 36,369 | 38,959 | 38,959 | 116,595 | 101,457 | |
Operating income (loss) | 4,962 | 5,568 | 17,576 | 14,004 | ||
Depreciation and amortization | 701 | 657 | 2,104 | 1,998 | ||
Goodwill impairment | 0 | |||||
Purchases of property, plant and equipment | 2,089 | 1,146 | 6,292 | 2,190 | ||
Crest | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 52,075 | 52,075 | 53,956 | |||
Aviara | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 12,777 | $ 10,428 | 10,428 | 39,570 | 24,192 | |
Operating income (loss) | (1,234) | (2,015) | (2,136) | (7,934) | ||
Depreciation and amortization | 535 | 602 | 1,597 | 1,569 | ||
Goodwill impairment | 1,100 | 1,100 | ||||
Purchases of property, plant and equipment | 1,716 | $ 496 | 4,145 | $ 865 | ||
Aviara | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 37,742 | 37,742 | 35,115 | |||
Discontinued operations | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | $ 0 | $ 0 | $ 29,595 |