5 unchanged sentences
Based on this evaluation, our chief executive officer and chief financial officer have concluded that our disclosure controls and procedures were effective as of June 30, 2024.
−Removed: Management’s Report on Internal Control over Financial Reporting
+Added: Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act.
40 unchanged sentences
Common stock certificate of MasterCraft Boat Holdings, Inc.
−Removed: Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934
+Added: Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934
MCBC Holdings, Inc.
7 unchanged sentences
Non-Employee Director Compensation Policy
−Removed: Employment Agreement Between Crest Marine, LLC and Patrick May
Form of Indemnification Agreement for directors and officers
5 unchanged sentences
Offer Letter, dated December 2, 2019
+Added: Offer Letter, dated March 1, 2024
+Added: Retirement and Consulting Agreement, dated March 1, 2024
Form of PSU Award Agreement
4 unchanged sentences
Second Amendment to Credit Agreement
+Added: Third Amendment to Credit Agreement
+Added: Insider Trading Compliance Policy
List of subsidiaries of MasterCraft Boat Holdings, Inc.
4 unchanged sentences
Section 1350 Certification of Chief Financial Officer
+Added: Amended and Restated Clawback Policy
Inline XBRL Instance Document
13 unchanged sentences
MASTERCRAFT BOAT HOLDINGS, INC.
−Removed: /s/ FREDERICK A.
−Removed: Chief Executive Officer (Principal Executive Officer) and Chairman of the Board
+Added: /s/ BRADLEY M.
+Added: Chief Executive Officer (Principal Executive Officer) and Director
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
−Removed: /s/ FREDERICK A.
−Removed: Chief Executive Officer (Principal Executive Officer) and Chairman of the Board
+Added: /s/ BRADLEY M.
+Added: Chief Executive Officer (Principal Executive Officer) and Director
August 29, 2024
2 unchanged sentences
August 29, 2024
+Added: /s/ ROCH LAMBERT
+Added: Chairman of the Board
+Added: August 29, 2024
PATRICK BATTLE
9 unchanged sentences
August 29, 2024
−Removed: /s/ ROCH LAMBERT
August 29, 2024
−Removed: August 30, 2023
/s/ KAMILAH MITCHELL-THOMAS
2 unchanged sentences
R EPO RT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
−Removed: To the stockholders and the Board of Directors of MasterCraft Boat Holdings, Inc.
+Added: To the shareholders and the Board of Directors of MasterCraft Boat Holdings, Inc.
Opinion on the Financial Statements
2 unchanged sentences
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2024, in conformity with accounting principles generally accepted in the United States of America.
−Removed: We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of June 30, 2023, based on criteria established in Internal Control —
−Removed: Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated August 30, 2023, expressed an unqualified opinion on the Company's internal control over financial reporting.
+Added: We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of June 30, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated August 29, 2024 , expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
12 unchanged sentences
The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Product Warranties —
−Removed: Refer to Notes 1 and 8 to the financial statements
+Added: Product Warranties — Refer to Notes 1 and 8 to the financial statements
Critical Audit Matter Description
2 unchanged sentences
These estimated costs are based upon the number of units sold, historical and anticipated rates of warranty claims, and the cost per claim.
−Removed: We identified the accrued warranty liability of $24.6 million for the MasterCraft brand as a critical audit matter because of the significant judgments made by management to estimate the anticipated rates of warranty claims and cost per claim related to product warranties at the time the product revenue is recognized.
−Removed: This required a high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate the reasonableness of management’s estimates of the rates and costs of future warranty claims.
+Added: We identified the accrued warranty liability related to the MasterCraft and Aviara brands as a critical audit matter because of the significant judgments made by management to estimate the anticipated rates of warranty claims and cost per claim related to product warranties at the time the product revenue is recognized.
+Added: This required a high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate the reasonableness of management’s estimates of the rates and costs of future warranty claims.
How the Critical Audit Matter Was Addressed in the Audit
−Removed: Our audit procedures related to the accrued warranty liability for the MasterCraft brand included the following, among others:
−Removed: We evaluated the design and operating effectiveness of controls over management’s estimation of the accrued warranty liability, including those over historical product warranty claim data and projected future product warranty claims.
−Removed: We evaluated the accuracy and completeness of the historical product warranty claims as an input to management’s accrued warranty liability calculation.
−Removed: We evaluated management’s ability to accurately estimate the accrued warranty liability by comparing the accrued warranty liability in the prior year to the actual product warranty claims paid in the current year.
+Added: Our audit procedures related to the accrued warranty liability for the MasterCraft and Aviara brands included the following, among others:
+Added: • We evaluated the design and operating effectiveness of controls over management’s estimation of the accrued warranty liability, including those over historical product warranty claim data and projected future product warranty claims.
+Added: • We evaluated the accuracy and completeness of the historical product warranty claims as an input to management’s accrued warranty liability calculation.
+Added: • We evaluated management’s ability to accurately estimate the accrued warranty liability by comparing the accrued warranty liability in the prior year to the actual product warranty claims paid in the current year.
• We evaluated the completeness of the accrued warranty liability through inquiries of operational and executive management regarding knowledge of known product warranty claims or product issues and evaluated whether they were appropriately considered in the determination of the accrued warranty liability.
−Removed: We assessed management’s methodology and tested the valuation of the accrued warranty liability by developing an independent expectation for the accrual based on historical and current year warranty claims activity and any known trends in warranty claims or specific product issues, and compared our expectation to the amount recorded by management.
+Added: • We assessed management’s methodology and tested the valuation of the accrued warranty liability by developing an independent expectation for the accrual based on historical and current year warranty claims activity and any known trends in warranty claims or specific product issues, and compared our expectation to the amount recorded by management.
/s/ Deloitte & Touche LLP
3 unchanged sentences
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
−Removed: To the stockholders and the Board of Directors of MasterCraft Boat Holdings, Inc.
+Added: To the shareholders and the Board of Directors of MasterCraft Boat Holdings, Inc.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of MasterCraft Boat Holdings Inc.
−Removed: and subsidiaries (the “Company”) as of June 30, 2023, based on criteria established in Internal Control —
−Removed: Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
−Removed: In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2023, based on criteria established in Internal Control —
−Removed: Integrated Framework (2013) issued by COSO.
+Added: and subsidiaries (the “Company”) as of June 30, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
+Added: In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended June 30, 2024, of the Company and our report dated August 29, 2024, expressed an unqualified opinion on those financial statements.
Basis for Opinion
−Removed: The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting.
−Removed: Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
+Added: The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting.
+Added: Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
5 unchanged sentences
Definition and Limitations of Internal Control over Financial Reporting
−Removed: A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
−Removed: A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
+Added: A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
+Added: A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
−Removed: and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
+Added: and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
11 unchanged sentences
Accounts receivable, net of allowance of $ 101 and $ 122 , respectively
+Added: Income tax receivable
Inventories, net (Note 5)
Prepaid expenses and other current assets
−Removed: Current assets associated with discontinued operations (Note 3)
Total current assets
5 unchanged sentences
Other long-term assets
−Removed: Non-current assets associated with discontinued operations (Note 3)
LIABILITIES AND EQUITY
4 unchanged sentences
Current portion of long-term debt, net of unamortized debt issuance costs (Note 9)
−Removed: Current liabilities associated with discontinued operations (Note 3)
Total current liabilities
4 unchanged sentences
COMMITMENTS AND CONTINGENCIES (Note 12)
−Removed: Common stock, $ .01 par value per share —
−Removed: authorized, 100,000,000 shares;
+Added: Common stock, $ .01 par value per share — authorized, 100,000,000 shares;
issued and outstanding, 16,759,109 shares at June 30, 2024 and 17,312,850 shares at June 30, 2023
15 unchanged sentences
Amortization of other intangible assets
−Removed: Goodwill impairment
+Added: Impairments (Notes 5, 6, and 7)
Total operating expenses
3 unchanged sentences
Interest income
−Removed: Loss on extinguishment of debt
INCOME BEFORE INCOME TAX EXPENSE
14 unchanged sentences
CONSOLIDATED STATEMENTS OF EQUITY
−Removed: Retained Earnings
−Removed: MasterCraft Boat
−Removed: Holdings, Inc.
Noncontrolling
−Removed: (Dollar amounts in thousands, except share data)
+Added: (Dollar amounts in thousands)
Balance at June 30, 2021
Share-based compensation activity
+Added: Repurchase and retirement of common stock
Balance at June 30, 2022
1 unchanged sentence
Repurchase and retirement of common stock
+Added: Capital contribution from noncontrolling interest
Balance at June 30, 2023
17 unchanged sentences
Deferred income taxes
−Removed: Goodwill impairment
Changes in certain operating assets and liabilities
16 unchanged sentences
Repurchase and retirement of common stock
−Removed: Proceeds from issuance of long-term debt
Borrowings on revolving credit facility
2 unchanged sentences
NET CHANGE IN CASH AND CASH EQUIVALENTS
−Removed: CASH AND CASH EQUIVALENTS —
−Removed: BEGINNING OF PERIOD
−Removed: CASH AND CASH EQUIVALENTS —
−Removed: END OF PERIOD
+Added: CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD
+Added: CASH AND CASH EQUIVALENTS — END OF PERIOD
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
−Removed: Cash payments for interest
+Added: Cash payments for interest, net of amounts capitalized
Cash payments for income taxes
NON-CASH INVESTING AND FINANCING ACTIVITIES:
+Added: Activity related to sales-type lease
Capital expenditures in accounts payable and accrued expenses
5 unchanged sentences
SIGNIFICANT ACCOUNTING POLICIES
−Removed: Basis of Presentation and Principles of Consolidation —
−Removed: The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
−Removed: GAAP”).
+Added: Basis of Presentation and Principles of Consolidation — The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
The consolidated financial statements include the accounts of MasterCraft Boat Holdings, Inc.
−Removed: (“Holdings”) and its wholly owned subsidiaries from the dates of their acquisitions.
−Removed: Holdings and its subsidiaries collectively are referred to herein as the “Company.”
−Removed: All significant intercompany accounts and transactions have been eliminated in consolidation.
+Added: (“Holdings”) and its wholly owned subsidiaries from the dates of their acquisitions.
+Added: Holdings and its subsidiaries collectively are referred to herein as the “Company.” All significant intercompany accounts and transactions have been eliminated in consolidation.
Holdings has no independent operations and no material assets, other than its wholly owned equity interests in its subsidiaries, as of June 30, 2024 and 2023, and no material liabilities.
−Removed: As of June 30, 2023 and 2022 , Holdings had no material contingencies, long-term obligations, or guarantees other than a guarantee of its subsidiaries’
−Removed: long-term debt (see Note 9).
−Removed: Discontinued Operations —
−Removed: On September 2, 2022, the Company sold substantially all of the assets and liabilities of its NauticStar segment.
+Added: As of June 30, 2024 and 2023 , Holdings had no material contingencies, long-term obligations, or guarantees other than a guarantee of its subsidiaries’ long-term debt (see Note 9).
+Added: 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 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.
2 unchanged sentences
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.
−Removed: Reclassifications —
−Removed: Certain historical amounts have been reclassified in these consolidated financial statements and the accompanying notes herewith to conform to current presentation.
−Removed: Use of Estimates —
−Removed: The preparation of the Company’s consolidated financial statements in conformity with U.S.
+Added: Reclassifications — Certain historical amounts have been reclassified in these consolidated financial statements and the accompanying notes herewith to conform to current presentation.
+Added: Use of Estimates — The preparation of the Company’s consolidated financial statements in conformity with U.S.
GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and related disclosures.
The Company bases these estimates on historical results and various other assumptions believed to be reasonable.
−Removed: The Company’s most significant financial statement estimates include impairment of goodwill and indefinite-lived intangible assets, warranty liability, unrecognized tax positions, inventory repurchase contingent obligations, and impairment of long-lived assets and intangible assets subject to amortization.
+Added: The Company’s most significant financial statement estimates include impairment of goodwill and indefinite-lived intangible assets, warranty liability, unrecognized tax positions, inventory repurchase contingent obligations, and impairment of long-lived assets and intangible assets subject to amortization.
Actual results could differ from those estimates.
−Removed: Revenue Recognition —
−Removed: The Company’s revenue is derived primarily from the sale of boats and trailers, marine parts, and accessories to its independent dealers.
+Added: Revenue Recognition — The Company’s revenue is derived primarily from the sale of boats and trailers, marine parts, and accessories to its independent dealers.
The Company recognizes revenue when obligations under the terms of a contract are satisfied and control over promised goods is transferred to a customer.
18 unchanged sentences
Contract Liabilities
−Removed: A contract liability is created when customers prepay for goods or services prior to the Company transferring control of those goods or services to the customer.
−Removed: The contract liability is reduced once control of the goods is transferred to the customer.
−Removed: The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the point at which it receives pre-payment from the customer.
+Added: A contract liability is created when amounts are collected prior to having completed performance obligations related to goods and services.
+Added: The contract liability is reduced once the associated performance obligation has been satisfied.
+Added: The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the point at which it receives advanced payment from the customer.
Other Revenue Recognition Matters
Dealers generally have no right to return unsold boats.
−Removed: Occasionally, the Company may accept returns in limited circumstances and at the Company’s discretion under its warranty policy.
+Added: Occasionally, the Company may accept returns in limited circumstances and at the Company’s discretion under its warranty policy.
The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase commitment to floor financing providers, who are able to obtain such boats through foreclosure.
3 unchanged sentences
The Company accrues the estimated fair value of this obligation based on the age of inventory currently under floor plan financing and estimated credit quality of dealers holding the inventory.
−Removed: Inputs used to estimate this fair value include significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, this liability is classified within Level 3 of the fair value hierarchy.
+Added: Inputs used to estimate this fair value include significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, this liability is classified within Level 3 of the fair value hierarchy.
The Company has excluded sales and other taxes assessed by a governmental authority in connection with revenue-producing activities from the determination of the transaction price for all contracts.
The Company has not adjusted net sales for the effects of a significant financing component because the period between the transfer of the promised goods and the customer’s payment is expected to be one year or less.
−Removed: Accounts Receivable —
−Removed: Accounts receivable represents amounts billed to customers under credit terms customary in its industry.
+Added: Accounts Receivable — Accounts receivable represents amounts billed to customers under credit terms customary in its industry.
The Company normally does not charge interest on its accounts receivable.
3 unchanged sentences
Amounts recorded as bad debt expense, write-offs, and recoveries were not material for the years ended June 30, 2024, 2023, and 2022 .
−Removed: Cash and Cash Equivalents —
−Removed: The Company considers all highly-liquid investments with an original maturity of three months or less to be cash and cash equivalents.
+Added: Cash and Cash Equivalents — The Company considers all highly-liquid investments with an original maturity of three months or less to be cash and cash equivalents.
The Company's cash and cash equivalents include cash deposits and money market funds.
−Removed: The Company’s cash deposits may at times exceed federally insured amounts.
−Removed: Held-to-Maturity Securities —
−Removed: The Company invests excess cash balances in short-term debt securities, such as government-sponsored securities, and/or corporate bonds.
−Removed: The Company accounts for its investments in debt securities in accordance with Accounting Standard Codification ("ASC") 320, Investments —
−Removed: Debt and Equity Securities .
+Added: The Company’s cash deposits may at times exceed federally insured amounts.
+Added: Held-to-Maturity Securities — The Company invests excess cash balances in short-term debt securities, such as investment-grade corporate bonds.
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.
−Removed: As of June 30, 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).
+Added: As of June 30, 2024 and 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).
Inputs used to estimate the fair value of our investments include significant other observable inputs and, therefore, are classified within Level 2 of the fair value hierarchy .
−Removed: Concentrations of Credit and Business Risk —
−Removed: Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of trade receivables.
−Removed: Credit risk on trade receivables is mitigated as a result of the Company’s use of trade letters of credit, dealer floor plan financing arrangements, and the geographically diversified nature of the Company’s customer base.
+Added: Concentrations of Credit and Business Risk — Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of trade receivables.
+Added: Credit risk on trade receivables is mitigated as a result of the Company’s use of trade letters of credit, dealer floor plan financing arrangements, and the geographically diversified nature of the Company’s customer base.
Supplier Concentrations
5 unchanged sentences
Total purchases for all segments from this vendor were $ 27.2 million, $ 47.6 million, and $ 45.0 million for the years ended June 30, 2024, 2023, and 2022, respectively.
−Removed: During the years ended June 30, 2023, 2022, and 2021 , the Company purchased outboard engines for its Aviara boats and a majority of the engines for its Crest boats under a supply agreement with a single vendor.
+Added: During the years ended June 30, 2024, 2023, and 2022 , the Company purchased outboard engines for its Aviara boats, a majority of the engines for its Crest boats, and all of the engines for its Balise boats under a supply agreement with a single vendor.
Total purchases from this vendor were $ 13.8 million, $ 31.0 million, and $ 34.0 million for the years ended June 30, 2024, 2023, and 2022 , respectively.
−Removed: Inventories —
−Removed: Inventories are valued at the lower of cost or net realizable value and are shown net of an inventory allowance in the consolidated balance sheet.
+Added: Inventories — Inventories are valued at the lower of cost or net realizable value and are shown net of an inventory allowance in the consolidated balance sheet.
Inventory cost includes material, labor, and manufacturing overhead and is determined based on the first-in, first-out (FIFO) method.
Provisions are made as necessary to reduce inventory amounts to their net realizable value or to provide for obsolete inventory.
−Removed: Property, Plant, and Equipment —
−Removed: Property, plant, and equipment are recorded at historical cost less accumulated depreciation and are depreciated on a straight-line basis over the estimated useful lives.
−Removed: Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that increase the asset’s useful life are capitalized.
+Added: Property, Plant, and Equipment — Property, plant, and equipment are recorded at historical cost less accumulated depreciation and are depreciated on a straight-line basis over the estimated useful lives.
+Added: Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that increase the asset’s useful life are capitalized.
For the years ended June 30, 2024, 2023, and 2022, ranges of asset lives used for depreciation purposes are:
2 unchanged sentences
Furniture and fixtures
−Removed: Goodwill and Other Intangible Assets —
−Removed: The Company does not amortize goodwill and other purchased intangible assets with indefinite lives, which are primarily related to trade names.
−Removed: The Company’s intangible assets with finite lives consist primarily of dealer networks and are carried at their estimated fair values at the time of acquisition, less accumulated amortization.
+Added: Goodwill and Other Intangible Assets — The Company does not amortize goodwill and other purchased intangible assets with indefinite lives, which are primarily related to trade names.
+Added: The Company’s intangible assets with finite lives consist primarily of dealer networks and are carried at their estimated fair values at the time of acquisition, less accumulated amortization.
Amortization is recognized on a straight-line basis over the estimated useful lives of the respective assets (see Note 7).
Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below.
−Removed: The Company has three reporting units, MasterCraft, Crest, and Aviara, which each relate to an operating segment as described in Note 14.
−Removed: As of June 30, 2023, all of the Company’s goodwill relates to the MasterCraft reporting unit and all of the Company’s other intangible assets relate to the MasterCraft and Crest reporting units.
+Added: The Company has three reporting units, MasterCraft, Pontoon, and Aviara, which each relate to an operating segment as described in Note 14.
+Added: As of June 30, 2024, all of the Company’s goodwill relates to the MasterCraft reporting unit and all of the Company’s other intangible assets relate to the MasterCraft and Pontoon reporting units.
Goodwill results from the excess of purchase price over the net identifiable assets of businesses acquired.
The Company reviews goodwill for impairment annually, at its fiscal year-end annual impairment testing date, and whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value.
−Removed: As part of the impairment tests, the Company may perform a qualitative, rather than quantitative, assessment to determine whether the fair values of its reporting units are “more likely than not”
−Removed: to be greater than their carrying values.
+Added: As part of the impairment tests, the Company may perform a qualitative, rather than quantitative, assessment to determine whether the fair values of its reporting units are “more likely than not” to be greater than their carrying values.
In performing this qualitative analysis, the Company considers various factors, including the effect of market or industry changes and the reporting units’ actual results compared to projected results.
2 unchanged sentences
If the fair value exceeds the carrying value, goodwill is not considered impaired.
−Removed: If the carrying amount exceeds the fair value then the goodwill is considered impaired and an impairment loss is recognized in an amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit.
+Added: If the carrying amount exceeds the fair value then the goodwill is considered impaired and an impairment loss is recognized in an amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit.
The Company calculates the fair value of its reporting units by considering both the income approach and market approach.
The income approach calculates the fair value of the reporting unit using a discounted cash flow method.
−Removed: Internally forecasted future cash flows, which the Company believes reasonably approximate market participant assumptions, are discounted using a weighted average cost of capital (“Discount Rate”) developed for each reporting unit.
−Removed: The Discount Rate is developed using observable market inputs, as well as
−Removed: considering whether or not there is a measure of risk related to the specific reporting unit’s forecasted performance.
−Removed: Fair value under the market approach is determined for each unit by applying market multiples for comparable public companies to the unit’s financial results.
−Removed: The key judgements in these calculations are the assumptions used in determining the reporting unit’s forecasted future performance, including revenue growth and operating margins, as well as the perceived risk associated with those forecasts in determining the Discount Rate, along with selecting representative market multiples.
−Removed: The Company recognized a $ 1.1 million goodwill impairment charge within the Aviara segment during the year ended June 30, 2022 (see Note 7).
+Added: Internally forecasted future cash flows, which the Company believes reasonably approximate market participant assumptions, are discounted using a weighted average cost of capital (“Discount Rate”) developed for each reporting unit.
+Added: The Discount Rate is developed using observable market inputs, as well as considering whether or not there is a measure of risk related to the specific reporting unit’s forecasted performance.
+Added: Fair value under the market approach is determined for each unit by applying market multiples for comparable public companies to the unit’s financial results.
+Added: The key judgements in these calculations are the assumptions used in determining the reporting unit’s forecasted future performance, including revenue growth and operating margins, as well as the perceived risk associated with those forecasts in determining the Discount Rate, along with selecting representative market multiples.
+Added: During the year ended June 30, 2022, the Company recognized a $ 1.1 million goodwill impairment charge within the Aviara segment (see Note 7).
Other Intangible Assets
9 unchanged sentences
The costs of amortizable intangible assets, including dealer networks, are recognized over their expected useful lives, approximately ten years for the dealer networks, using the straight-line method.
−Removed: Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below.
−Removed: Intangible assets not subject to amortization are assessed for impairment at least annually and whenever events or changes in circumstances indicate that it is more likely than not that an asset may be impaired.
−Removed: As part of the annual test, the Company may perform a qualitative, rather than quantitative, assessment to determine whether each trade name intangible asset is “more likely than not”
+Added: The dealer network intangible asset within our MasterCraft reporting unit is fully amortized.
+Added: The dealer network intangible asset within our Pontoon reporting unit that is subject to amortization is evaluated for impairment if events or changes in circumstances suggest that it may be impaired.
+Added: As part of the impairment test, the Company may perform a quantitative assessment to determine whether the dealer network intangible asset is impaired.
+Added: If the carrying value exceeds the fair value of the asset, an impairment loss is recognized for the amount by which the carrying value exceeds the fair value of.
+Added: Intangible assets not subject to amortization, including trade names, are assessed for impairment at least annually and whenever events or changes in circumstances indicate that it is more likely than not that an asset may be impaired.
+Added: As part of the annual test, the Company may perform a qualitative, rather than quantitative, assessment to determine whether each trade name intangible asset is “more likely than not” impaired.
In performing this qualitative analysis, the Company considers various factors, including macroeconomic events, industry and market events and cost related events.
−Removed: If the “more likely than not”
−Removed: criteria is not met, the impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount.
+Added: If the “more likely than not” criteria is not met, the impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount.
An impairment loss is recognized for the amount by which the carrying value exceeds the fair value of the asset.
−Removed: The Company recognized $ 18.5 million in other intangible asset impairment charges related to the NauticStar reporting unit during the year ended June 30, 2022.
+Added: During the year ended June 30, 2022, the Company recognized $ 18.5 million in other intangible asset impairment charges related to the NauticStar reporting unit.
These charges are included in the loss from discontinued operations (see Note 3).
−Removed: Long-Lived Assets Other than Intangible Assets —
−Removed: The Company assesses the potential for impairment of its long-lived assets if facts and circumstances, such as declines in sales, earnings, or cash flows or adverse changes in the business climate, suggest that they may be impaired.
+Added: Long-Lived Assets Other than Intangible Assets — The Company assesses the potential for impairment of its long-lived assets if facts and circumstances, such as declines in sales, earnings, or cash flows or adverse changes in the business climate, suggest that they may be impaired.
A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life will also trigger a review for impairment.
1 unchanged sentence
If any impairment in the carrying value of its long-lived assets is indicated, the assets would be adjusted to an estimate of fair value.
−Removed: The Company recognized $ 5.3 million in long-lived asset impairment charges related to the NauticStar reporting unit during the year ended June 30, 2022.
+Added: The Company recognized $ 6.9 million in long-lived asset impairment charges related to the Aviara reporting unit during the year ended June 30, 2024 (see Note 6).
+Added: During the year ended June 30, 2022, the Company recognized $ 5.3 million in long-lived asset impairment charges related to the NauticStar reporting unit.
These charges are included in the loss from discontinued operations (see Note 3).
−Removed: Product Warranties —
−Removed: The Company offers warranties on the sale of certain products for periods of between one and five years .
+Added: Product Warranties — The Company offers warranties on the sale of certain products for periods of between one and five years .
These warranties require us or our dealers to repair or replace defective products during the warranty period at no cost to the consumer.
3 unchanged sentences
We also adjust our liability for specific warranty matters when they become known, and the exposure can be estimated.
−Removed: Future warranty claims may differ from our estimate of the warranty liability, which could lead to changes in the Company’s warranty liability in future periods.
−Removed: Income Taxes —
−Removed: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities.
+Added: Future warranty claims may differ from our estimate of the warranty liability, which could lead to changes in the Company’s warranty liability in future periods.
+Added: Income Taxes — Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities.
The Company records its global tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates.
3 unchanged sentences
The realization of these assets is dependent on generating future taxable income.
−Removed: A tax position is recognized as a benefit only if it is “more likely than not”
−Removed: that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur.
+Added: A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur.
The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination.
−Removed: For tax positions not meeting the “more likely than not”
−Removed: test, no tax benefit is recorded.
+Added: For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.
The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
4 unchanged sentences
such changes to tax liabilities will have an impact on tax expense in the period that such a determination is made .
−Removed: Research and Development —
−Removed: Research and development expenditures are expensed as incurred.
+Added: Investment in Sales-Type Lease — On July 1, 2023, the Company became a lessor in a sales-type lease arrangement consisting of land valued at $ 3.9 million.
+Added: The underlying land was derecognized as property, plant and equipment and a sales-type lease was recognized as a net investment in a lease.
+Added: The net investment balances are represented as lease receivable and unguaranteed residual asset amounts on the consolidated balance sheet within other current assets and other long-term assets.
+Added: Interest earned on the net investment is recognized as interest income.
+Added: The initial term of the lease is ten years and interest income and annual cash flows under the arrangement are not significant to any year during the term.
+Added: Research and Development — Research and development expenditures are expensed as incurred.
Research and development expense for the years ended June 30, 2024, 2023, and 2022 was $ 8.6 million , $ 8.3 million , and $ 7.2 million , respectively, and is included in Operating expenses in the consolidated statements of operations.
−Removed: Self-Insurance —
−Removed: The Company is self-insured for certain losses relating to product liability claims and employee medical claims.
+Added: Self-Insurance — The Company is self-insured for certain losses relating to product liability claims and employee medical claims.
The Company has purchased stop-loss coverage in order to limit its exposure to any significant levels for these matters.
−Removed: Losses are accrued based on the Company’s estimates of the aggregate liability for self-insured claims incurred using certain actuarial assumptions followed in the insurance industry and the Company’s historical experience.
−Removed: Deferred Debt Issuance Costs —
−Removed: Certain costs incurred to obtain financing are capitalized and amortized over the term of the related debt using the effective interest method.
−Removed: For the year ended June 30, 2021, the Company incurred deferred financing costs of $ 0.6 million.
+Added: Losses are accrued based on the Company’s estimates of the aggregate liability for self-insured claims incurred using certain actuarial assumptions followed in the insurance industry and the Company’s historical experience.
+Added: Deferred Debt Issuance Costs — Certain costs incurred to obtain financing are capitalized and amortized over the term of the related debt using the effective interest method.
For the years ended June 30, 2024, 2023, and 2022 , the Company recorded related amortization expense of $ 0.3 million, $ 0.2 million, and $ 0.2 million, respectively.
−Removed: Additionally, for the year ended June 30, 2021, the Company recognized a loss on early extinguishment of debt of $ 0.7 million related to the debt refinancing in fiscal 2021.
−Removed: See Note 9 –
−Removed: Long-Term Debt for a discussion on debt issuance costs.
−Removed: Share-Based Compensation —
−Removed: The Company records amounts for all share-based compensation, including grants of restricted stock awards and performance stock units over the vesting period in the consolidated statements of operations based on their fair values at the date of the grant.
+Added: Share-Based Compensation — The Company records amounts for all share-based compensation, including grants of restricted stock awards and performance stock units over the vesting period in the consolidated statements of operations based on their fair values at the date of the grant.
Forfeitures of share-based compensation, if any, are recognized as they occur.
Share-based compensation costs are included in Selling and marketing and General and administrative expense in the consolidated statements of operations.
−Removed: See Note 11 –
−Removed: Share-Based Compensation for a description of the Company's accounting for share-based compensation plans.
−Removed: Advertising —
−Removed: Advertising costs are expensed when the advertising first takes place.
+Added: See Note 11 – Share-Based Compensation for a description of the Company’s accounting for share-based compensation plans.
+Added: Advertising — Advertising costs are expensed when the advertising first takes place.
Advertising expense recognized during the years ended June 30, 2024, 2023, and 2022, was $ 5.8 million , $ 5.7 million , and $ 4.4 million , respectively, and is included in Selling and marketing expenses in the consolidated statements of operations.
−Removed: Fair Value Measurements —
−Removed: The Company measures certain of its financial assets and liabilities at fair value and utilizes the established framework for measuring fair value and disclosing information about fair value measurements.
+Added: Fair Value Measurements — The Company measures certain of its financial assets and liabilities at fair value and utilizes the established framework for measuring fair value and disclosing information about fair value measurements.
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
There are three levels of inputs that may be used to measure fair values:
−Removed: Level 1 —
−Removed: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
−Removed: Level 2 —
−Removed: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities;
+Added: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
+Added: Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active;
or other inputs that are observable or can be corroborated by observable market data.
−Removed: Level 3 —
−Removed: Significant unobservable inputs that reflect a company’s own assumptions about the inputs that market participants would use in pricing an asset or liability.
+Added: Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the inputs that market participants would use in pricing an asset or liability.
When measuring fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability.
1 unchanged sentence
When identical assets are not traded in active markets, the Company looks to market observable data for similar assets.
−Removed: The Company’s most significant financial asset or liability measured at fair value on a recurring basis is its inventory repurchase contingent obligation (see “Revenue Recognition - Other Revenue Recognition Matters”
−Removed: and Note 12).
+Added: The Company’s most significant financial asset or liability measured at fair value on a recurring basis is its inventory repurchase contingent obligation (see “Revenue Recognition - Other Revenue Recognition Matters” and Note 12).
The non-recurring fair value measurement related to the impairment of goodwill recorded in fiscal 2022 is a level 3 measurement.
−Removed: Fair Value of Financial Instruments —
−Removed: The carrying amounts of the Company’s financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable and other liabilities, approximate their estimated fair values due to the relative short-term nature of the amounts.
+Added: Fair Value of Financial Instruments — The carrying amounts of the Company’s financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable and other liabilities, approximate their estimated fair values due to the relative short-term nature of the amounts.
The carrying amount of debt approximates fair value due to variable interest rates at customary terms and rates the Company could obtain in current financing.
−Removed: Earnings Per Common Share —
−Removed: Basic earnings per common share reflects reported earnings divided by the weighted average number of common shares outstanding during the reporting period.
+Added: Earnings Per Common Share — Basic earnings per common share reflects reported earnings divided by the weighted average number of common shares outstanding during the reporting period.
Diluted earnings per common share include the effect of dilutive stock options, restricted stock awards, and performance stock units unless inclusion would not be dilutive.
−Removed: Postretirement Benefits —
−Removed: The Company has a defined contribution plan and makes contributions including matching and discretionary contributions which are based on various percentages of compensation, and in some instances are based on the amount of the employees' contributions to the plans.
+Added: Postretirement Benefits — The Company has a defined contribution plan and makes contributions including matching and discretionary contributions which are based on various percentages of compensation, and in some instances are based on the amount of the employees' contributions to the plans.
The expense related to the defined contribution plan was $ 1.6 million, $ 1.9 million, and $ 1.7 million for the years ended June 30, 2024, 2023, and 2022 , respectively.
−Removed: New Accounting Pronouncements Issued And Adopted
−Removed: Income Taxes —
−Removed: In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, Income Taxes (Topic 740):
−Removed: Simplifying the Accounting for Income Taxes.
−Removed: ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to general principles in Income Taxes (Topic 740).
−Removed: It also clarifies and amends existing guidance to improve consistent application.
−Removed: The guidance is effective for fiscal years beginning after December 15, 2020.
−Removed: The adoption of this standard did not have an impact on the Company’s consolidated financial statements.
−Removed: Reference Rate Reform —
−Removed: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848):
−Removed: Facilitation of the Effects of Reference Rate Reform on Financial Reporting.
−Removed: ASU 2020-04 provides optional expedients and exceptions for applying U.S.
−Removed: GAAP to contracts, hedging relationships, and other transactions, subject to meeting certain criteria, that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform.
−Removed: An entity may apply ASU 2020-04 as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022.
−Removed: The adoption of this standard did not have an impact on the Company’s consolidated financial statements.
+Added: New Accounting Pronouncements Issued But Not Yet Adopted
+Added: Segment Reporting — Accounting Standard Update (“ASU”) No.
+Added: 2023-07, Improvements to Reportable Segment Disclosures, requires incremental disclosures about an entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments.
+Added: The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker (“CODM”) and (2) included in the reported measure of segment profit or loss.
+Added: The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources.
+Added: This update is effective for fiscal years beginning after December 31, 2023, or fiscal 2025 for the Company, and should be adopted retrospectively unless impracticable.
+Added: The Company is currently evaluating the impact, if any, that the adoption of this standard will have on financial disclosures.
+Added: Income Taxes — ASU No.
+Added: 2023-09, Improvements to Income Tax Disclosures, requires entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and provide more details about the reconciling items in some categories if items meet a quantitative threshold.
+Added: Entities would have to provide qualitative disclosures about the new categories.
+Added: The guidance will require all entities to disclose income taxes paid, net of refunds, disaggregated by federal (national), state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold.
+Added: The guidance makes several other changes to the disclosure requirements.
+Added: Entities are required to apply the guidance prospectively, with the option to apply it retrospectively.
+Added: The guidance is effective for annual periods beginning after December 15, 2024, or fiscal 2026 for the Company.
+Added: The Company is currently evaluating the impact, if any, that the adoption of this standard will have on financial disclosures.
REVENUE RECOGNITION
−Removed: The following tables present the Company’s net sales by major product category for each reportable segment.
+Added: The following tables present the Company’s net sales by major product category for each reportable segment.
Year Ended June 30, 2024
10 unchanged sentences
Other revenue
−Removed: For fiscal 2023 , the Company’s top ten dealers accounted for approximately 40 % of our net sales and one of our dealers individually accounted for 14.9 %, or approximately $ 98.6 million.
−Removed: For fiscal 2022 and 2021, the Company's top ten dealers accounted for approximately 30 % of our net sales and none of our dealers individually accounted for more than 10 % of our total net sales.
−Removed: On a consolidated basis, sales outside of North America accounted for 4.6 %, 5.5 %, and 5.1 % of the Company’s net sales for the years ended June 30, 2023, 2022, and 2021, respectively.
+Added: For fiscal 2024 , the Company’s top ten dealers accounted for approximately 40 % of our net sales and one of our dealers individually accounted for 15.1 %, or approximately $ 55.5 million.
+Added: For fiscal 2023, the Company’s top ten dealers accounted for approximately 40 % of our net sales and one of our dealers individually accounted for 14.9 % or approximately $ 98.6 million.
+Added: For fiscal 2022, the Company’s top ten dealers accounted for approximately 30 % of our net sales and none of our dealers individually accounted for more than 10 % of our total net sales.
+Added: On a consolidated basis, sales outside of North America accounted for 5.9 %, 4.6 %, and 5.5 % of the Company’s net sales for the years ended June 30, 2024, 2023, and 2022, respectively.
The Company had no significant concentrations of sales to individual dealers or in countries outside of North America during the years ended June 30, 2024, 2023, and 2022.
Contract Liabilities
−Removed: As of June 30, 2023 , the Company had $ 3.3 million of contract liabilities associated with customer deposits and services reported in Accrued expenses and other current liabilities and Other long-term liabilities on the consolidated balance sheet.
+Added: As of June 30, 2024 , the Company had $ 4.1 million of contract liabilities associated with customer deposits and telematic services reported in Accrued expenses and other current liabilities and Other long-term liabilities on the consolidated balance sheet.
The Company expects to recognize $ 2.0 million of this amount during the year ending June 30, 2025, and $ 2.1 million thereafter.
As of June 30, 2023 , total contract liabilities were $ 3.3 million.
−Removed: During the year ended June 30, 2023, all of this amount was recognized as revenue.
−Removed: See Note 1 for a description of the Company’s significant revenue recognition policies and Note 14 for a description of the Company’s segments.
+Added: During the year ended June 30, 2024 , $ 1.5 million of this amount was recognized as revenue.
+Added: See Note 1 for a description of the Company’s significant revenue recognition policies and Note 14 for a description of the Company’s segments.
DISCONTINUED OPERATIONS
5 unchanged sentences
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.
−Removed: During the year ended June 30, 2023 , the Company recognized a $ 22.5 million loss on sale, subject to further changes based upon a customary working capital adjustment which is currently undergoing arbitration.
−Removed: The outcome of this matter is uncertain at this time.
−Removed: 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.
+Added: During the year ended June 30, 2023, the Company recognized a $ 22.5 million loss on sale.
+Added: The final settlement of the purchase price was subject to customary working capital adjustments that had been in arbitration as of June 30, 2023, but were settled in October 2023 without a significant impact to the loss on sale previously recorded.
+Added: Under the terms of the settlement, the agreed upon amounts will be paid in installments through July 2025.
+Added: The value of the assets and liabilities that were retained at the time of sale, which were primarily related to certain claims, are subject to change.
+Added: Certain of these claims have been settled or are expected to settle for higher amounts than previously estimated, with the related activity being recorded as discontinued operations.
The following table summarizes the results of discontinued operations for the following periods:
−Removed: Years Ended June 30,
+Added: Fiscal Year Ended
COST OF SALES
4 unchanged sentences
OPERATING LOSS
−Removed: Loss on sale of discontinued operations
+Added: Gain (loss) on sale of discontinued operations
LOSS BEFORE INCOME TAX BENEFIT
1 unchanged sentence
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
−Removed: The following table summarizes the assets and liabilities associated with discontinued operations:
−Removed: CURRENT ASSETS:
−Removed: Accounts receivable, net of allowance
−Removed: Inventories, net
−Removed: Other current assets
−Removed: Total current assets classified as discontinued operations
−Removed: NON-CURRENT ASSETS:
−Removed: Property, plant and equipment, net
−Removed: Other long-term assets
−Removed: Total non-current assets classified as discontinued operations
−Removed: CURRENT LIABILITIES:
−Removed: Accounts payable
−Removed: Accrued expenses and other current liabilities
−Removed: Total current liabilities classified as discontinued operations
NauticStar Impairment Activity
In the fourth quarter of fiscal year 2022, the NauticStar reporting unit recorded unplanned negative operating results despite ongoing efforts to improve sales volumes and yield more favorable margins, including the engagement of third-party consulting resources.
−Removed: These results, combined with the outlook for further supply chain disruptions, labor challenges, and higher costs from inflationary pressures, resulted in an impairment trigger in the fourth quarter related to the NauticStar reporting unit’s intangible and other long-lived assets.
+Added: These results, combined with the outlook for further supply chain disruptions, labor challenges, and higher costs from inflationary pressures, resulted in an impairment trigger in the fourth quarter related to the NauticStar reporting unit’s intangible and other long-lived assets.
Based on our evaluation of projected future cash flows, we concluded that the trade name intangible asset of $ 8.0 million was fully impaired as of June 30, 2022.
1 unchanged sentence
The fair value of the finite-lived dealer network intangible asset was estimated using these cash flows, resulting in a full impairment of $ 10.5 million.
−Removed: The fair value of the fixed assets, which primarily comprised of machinery and equipment, such as tooling, was estimated using liquidation values, resulting in an impairment charge of $ 5.3 million against the asset group’s fixed assets.
−Removed: As a result of our impairment analyses, we recorded total impairment charges of $ 23.8 million related to the NauticStar reporting unit’s intangible and fixed assets during the year ended June 30, 2022, which are included in Impairments in the results of discontinued operations above.
+Added: The fair value of the fixed assets, which primarily comprised of machinery and equipment, such as tooling, was estimated using liquidation values, resulting in an impairment charge of $ 5.3 million against the asset group’s fixed assets.
+Added: As a result of our impairment analyses, we recorded total impairment charges of $ 23.8 million related to the NauticStar reporting unit’s intangible and fixed assets during the year ended June 30, 2022, which are included in Impairments in the results of discontinued operations above.
HELD-TO-MATURITY SECURITIES
−Removed: During the year ended June 30, 2023, we invested a portion of our cash and cash equivalents in short-term investments, which primarily consist of investment grade corporate bonds and U.S.
−Removed: treasury bills.
−Removed: 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”
−Removed: on our consolidated balance sheet as of June 30, 2023.
+Added: We invest a portion of our cash and cash equivalents in short-term investments, which primarily consist of investment grade corporate bonds.
+Added: 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 consolidated balance sheets
+Added: as of June 30, 2024, and 2023.
The income recognized for these investments is recorded within interest income on the consolidated statements of operations.
−Removed: As of June 30, 2022, there were no outstanding held-to-maturity investments.
−Removed: The following is a summary of investments as of June 30, 2023:
−Removed: Carrying Amount
+Added: The following tables summarize investments held by the Company as of:
+Added: June 30, 2024
Held-to-maturity securities:
1 unchanged sentence
Corporate bonds
+Added: Total held-to-maturity securities
+Added: June 30, 2023
+Added: Held-to-maturity securities:
+Added: Fixed income securities:
+Added: Corporate bonds
treasury bills
6 unchanged sentences
Total inventories
+Added: During the fourth quarter of fiscal 2024, the Company identified an indication of impairment related to its Aviara segment.
+Added: In analyzing future cash flows used in the impairment analysis, the Company identified excess inventory not expected to be used in future production.
+Added: As a result, the Company recognized a $ 2.4 million write-off to reduce inventory amounts to their net realizable value.
+Added: See Note 6 for further information related to the impairment analysis.
PROPERTY, PLANT, AND EQUIPMENT
7 unchanged sentences
Less accumulated depreciation
−Removed: Property, plant, and equipment —
+Added: Property, plant, and equipment — net
Depreciation expense for the years ended June 30, 2024, 2023, and 2022 was $ 9.4 million, $ 8.6 million, and $ 7.7 million, respectively.
−Removed: Property, plant, and equipment, net increased mainly due to capital spending focused on tooling, capacity expansion, strategic initiatives, and information technology.
+Added: Our Aviara segment experienced a material reduction in expected future orders near the end of the fourth quarter of fiscal 2024.
+Added: This reduced outlook for future demand, and related cost inefficiencies of lower production levels, resulted in an impairment trigger related to the Aviara reporting unit.
+Added: Accordingly, we then performed an undiscounted cash flow analysis for the asset group related to the Aviara reporting unit that considered projected cash flows from continuing to operate the assets through their remaining estimated useful lives, a potential sale, and a potential exit of the business other than through a sale and concluded that the carrying value of the asset group was not recoverable.
+Added: The fair value of the fixed assets, which primarily are comprised of land, building, machinery and equipment, was estimated using fair value techniques, resulting in an impairment charge of $ 6.9 million against the asset group’s fixed assets.
+Added: As a result of our impairment analyses, we recorded total impairment charges of $ 9.8 million related to the Aviara reporting unit’s property, plant, equipment, inventory, and other assets.
GOODWILL AND OTHER INTANGIBLE ASSETS
26 unchanged sentences
Total other intangible assets
−Removed: As of June 30, 2023, our annual impairment test date, the Company performed a qualitative assessment and identified no events or circumstances that indicated that there existed a more likely than not probability of impairment of other intangible assets within our MasterCraft and Crest segments.
−Removed: Amortization expense related to Other intangible assets, net for each of the years ended June 30, 2023, 2022 and 2021 was $ 2.0 million.
+Added: As of June 30, 2024, our annual impairment test date, the Company performed a qualitative assessment on our indefinite-lived intangible assets and identified no events or circumstances that indicated that there existed a more likely than not probability of impairment of trade names within our MasterCraft and Pontoon segments.
+Added: Additionally, the Company performed a quantitative assessment on our definite-lived intangible asset that is not fully amortized and concluded the fair value of the dealer network exceeded the carrying value.
+Added: Amortization expense related to Other intangible assets, net for the year ended June 30, 2024 was $ 1.8 million and for each of the years ended June 30, 2023 and June 30, 2022 was $ 2.0 million.
The following table presents estimated future amortization expense for the next five fiscal years and thereafter.
Fiscal years ending June 30,
−Removed: and thereafter
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
2 unchanged sentences
Compensation and related accruals
−Removed: Self-insurance
−Removed: Inventory repurchase contingent obligation
Contract liabilities
+Added: Inventory repurchase contingent obligation
+Added: Self-insurance
Liabilities retained associated with discontinued operations
3 unchanged sentences
Payments made
−Removed: Aggregate changes for preexisting warranties
+Added: Changes for pre-existing warranties
Balance at the end of the period
5 unchanged sentences
Long-term debt, net of current portion
−Removed: On June 28, 2021, the Company entered into a credit agreement with a syndicate of certain financial institutions (the “Credit Agreement”).
−Removed: 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”).
−Removed: The Credit Agreement refinanced and replaced the Fourth Amended Credit Agreement, which had been in place prior to the Credit Agreement and
−Removed: provided the Company with a $ 190.0 million senior secured credit facility, consisting of a $ 75.0 million term loan, and $ 80.0 million term loan, and a $ 35.0 million revolving credit facility.
−Removed: The Credit Agreement is secured by a first priority security interest in substantially all of the Company’s assets.
−Removed: 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;
+Added: On June 28, 2021, the Company entered into a credit agreement with a syndicate of certain financial institutions (the “Credit Agreement”).
+Added: 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”).
+Added: The Credit Agreement refinanced and replaced the Fourth Amended Credit Agreement, which had been in place prior to the Credit Agreement.
+Added: 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;
7 unchanged sentences
and make investments.
−Removed: The Company is also required to maintain a minimum fixed charge coverage ratio and a maximum net leverage ratio.
−Removed: As a result of entering into the Credit Agreement, the Company recognized a $ 0.7 million loss on early extinguishment of debt during the year ended June 30, 2021 related to unamortized debt issuance costs of the previously existing credit facility.
+Added: The Company is also required to maintain a minimum fixed charge coverage ratio and a maximum net leverage ratio (the “covenant ratios”).
+Added: Adherence to covenant ratios applies to both the Term Loan and availability to draw under the Revolving Credit Facility.
On August 31, 2022, the Company entered into the Second Amendment to the Credit Agreement to obtain the necessary consents and waivers to the restrictions described above in the covenants of the Credit Agreement, as related to the sale of the NauticStar business on September 2, 2022, as discussed in Note 3.
−Removed: 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 benchmark rate plus an applicable margin ranging from 1.25 % to 2.00 %, in each case based on the Company’s net leverage ratio.
−Removed: 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.
+Added: On October 4, 2023, the Company entered into the Third Amendment to the Credit Agreement to exclude certain amounts of stock repurchases during the fiscal year ended June 30, 2024 from the calculation of the minimum fixed charge coverage ratio.
+Added: 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 benchmark rate plus an applicable margin ranging from 1.25 % to 2.00 %, in each case based on the Company’s net leverage ratio.
+Added: 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.
As of June 30, 2024 and 2023 , the effective interest rate on borrowings outstanding was 6.69 % and 6.50 %, respectively.
2 unchanged sentences
Revolving Credit Facility
−Removed: In conjunction with the Credit Agreement entered into on June 28, 2021, the Company drew $ 33.7 million on its Revolving Credit Facility.
−Removed: Drawn amounts were used to repay a same amount of outstanding borrowings under the term loans under the Fourth Amended Credit Agreement.
−Removed: As of June 30, 2022 , the Company had repaid all outstanding borrowings under the Revolving Credit Facility and had remaining availability of $ 100.0 million.
−Removed: The Company has not utilized the revolver as of June 30, 2023, and still holds availability of $ 100.0 million.
+Added: As of June 30, 2024, and 2023, the Company had no amounts outstanding on its Revolving Credit Facility and had remaining availability of $ 100.0 million.
Maturities for the Term Loan subsequent to June 30, 2024 are as follows:
+Added: Subsequent to June 30, 2024, and prior to the issuance of these audited financials on Form 10-K, the Company was in discussions with its bank group regarding an amendment to the Credit Agreement.
+Added: The anticipated amendment entails obtaining the necessary consents and waivers to the restrictions described above in the covenants of the Credit Agreement, as related to the Aviara asset exchange and plans to sell certain facility assets, in addition to a waiver to the covenant ratios for certain future periods as a result of anticipated decreases in earnings.
+Added: The Company currently expects to complete the amendment process in the first quarter of fiscal 2025.
+Added: The amendment process remains subject to completion of final documentation and credit approval by the bank group and, accordingly, the Company cannot be certain that it will be able to complete the amendment process.
+Added: If the Company does not complete the amendment process, the Company has cash and held-to-maturity securities in excess of total debt and thus believes that it will have sufficient liquidity on hand to continue to fund operations and repay the borrowings outstanding under the Credit Agreement.
The Company’s sources of earnings before income taxes are primarily derived in the U.S.
4 unchanged sentences
Total current tax expense
−Removed: Deferred tax (benefit) expense:
−Removed: Total deferred tax expense (benefit)
−Removed: Income tax expense (benefit)
+Added: Deferred tax benefit:
+Added: Total deferred tax benefit
+Added: Income tax expense
The difference between the statutory and the effective federal tax rate related to continuing operations for the periods below is attributable to the following:
1 unchanged sentence
State taxes (net of federal income tax benefit and valuation allowance)
−Removed: Change in valuation allowance
−Removed: Permanent differences
Uncertain tax positions
+Added: Permanent differences
+Added: Change in valuation allowance
+Added: Return to provision true-ups and rate changes
Effective income tax rate
−Removed: As of June 30, 2023, and 2022, a summary of the significant components of the Company’s deferred tax assets and liabilities was as follows:
+Added: As of June 30, 2024, and 2023, a summary of the significant components of the Company’s deferred tax assets and liabilities was as follows:
Deferred tax assets:
−Removed: Intangible asset basis difference
+Added: Capitalized research costs
Warranty reserves
Accrued selling
−Removed: Capitalized research costs
−Removed: Stock compensation
+Added: Intangible asset basis difference
Unrecognized tax benefits
Net operating loss
+Added: Stock compensation
Total deferred tax assets
14 unchanged sentences
Of this total, $ 5.9 million and $ 5.4 million as of June 30, 2024 and 2023, respectively, represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods.
−Removed: The total amount of interest and penalties recorded in the consolidated statements of operations for the years ended June 30, 2023, 2022, and 2021 was an expense of $ 0.2 million, an expense of $ 0.2 million, and a benefit of $ 0.2 million, respectively.
−Removed: The amounts accrued for interest and penalties at June 30, 2023 and 2022 were $ 1.1 million and $ 0.8 million, respectively, and is presented in unrecognized tax positions on the accompanying consolidated balance sheets.
+Added: The total amount of interest and penalties recorded in the consolidated statements of operations for the years ended June 30, 2024, 2023, and 2022 was an expense of $ 0.5 million, $ 0.2 million, and $ 0.2 million, respectively.
+Added: The amounts accrued for interest and penalties at June 30, 2024 and 2023 were $ 1.7 million and $ 1.1 million, respectively, and are presented in unrecognized tax positions on the accompanying consolidated balance sheets.
In general, it is the practice and intention of the Company to reinvest the earnings of its non-U.S.
1 unchanged sentence
As of June 30, 2024, the Company has not made a current provision for U.S.
−Removed: or additional foreign withholding taxes on investments in foreign
−Removed: subsidiaries that are indefinitely reinvested.
+Added: or additional foreign withholding taxes on investments in foreign subsidiaries that are indefinitely reinvested.
Generally, such amounts become subject to U.S.
10 unchanged sentences
SHARE-BASED COMPENSATION
−Removed: The 2015 Incentive Award Plan (“2015 Plan”) provides for the grant of stock options, including incentive stock options, and nonqualified stock options (“NSOs”), restricted stock, dividend equivalents, stock payments, restricted stock units, restricted stock awards (“RSAs”), deferred stock, deferred stock units, performance awards, stock appreciation rights, performance stock units (“PSUs”), and cash awards.
+Added: The 2015 Incentive Award Plan (“2015 Plan”) provides for the grant of stock options, including incentive stock options, and nonqualified stock options (“NSOs”), restricted stock, dividend equivalents, stock payments, restricted stock units, restricted stock awards (“RSAs”), deferred stock, deferred stock units, performance awards, stock appreciation rights, performance stock units (“PSUs”), and cash awards.
As of June 30, 2024 , there were 848,175 shares available for issuance under the 2015 Plan.
2 unchanged sentences
Performance stock units
−Removed: Share-based compensation expense
−Removed: The amount of compensation cost the Company recognizes over the requisite service period is based on the Company’s best estimate of the achievement of the performance conditions and can fluctuate over time.
−Removed: The following table presents the income tax benefit related to share-based compensation expense within continuing operations recognized by award type.
+Added: Share-based compensation expense (benefit)
+Added: The amount of compensation cost the Company recognizes over the requisite service period is based on the Company’s best estimate of the achievement of the performance conditions and can fluctuate over time.
+Added: The following table presents the income tax benefit (expense) related to share-based compensation expense within continuing operations recognized by award type for the years ended June 30, 2024, 2023, and 2022.
Restricted stock awards
Performance stock units
−Removed: Share-based compensation expense
+Added: Share-based compensation expense (benefit)
Restricted Stock Awards
1 unchanged sentence
Generally, non-vested RSAs are forfeited if employment is terminated prior to vesting.
−Removed: RSAs are granted at a per share fair value equal to the market value of the Company’s common stock on the grant date.
+Added: RSAs are granted at a per share fair value equal to the market value of the Company’s common stock on the grant date.
The Company recognizes the cost of non-vested RSAs ratably over the requisite service period.
11 unchanged sentences
During the years ended June 30, 2024, 2023, and 2022, the Company granted performance shares to certain employees.
−Removed: The awards will be earned based on the Company’s achievement of certain performance criteria over a three-year performance period.
+Added: 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 continues for a three-year period, ending on June 30 of the applicable year.
The probability of achieving the performance criteria is assessed quarterly.
−Removed: Following the determination of the Company’s achievement with respect to the performance criteria, the amount of shares awarded will be subject to adjustment based on the application of a total shareholder return (“TSR”) modifier.
−Removed: The grant date fair value is determined based on both the assessment of the probability of the Company’s achieving the performance criteria and an estimate of the expected TSR modifier.
+Added: Following the determination of the Company’s achievement with respect to the performance criteria, the amount of shares awarded will be subject to adjustment based on the application of a total shareholder return (“TSR”) modifier.
+Added: The grant date fair value is determined based on both the assessment of the probability of the Company’s achieving the performance criteria and an estimate of the expected TSR modifier.
The TSR modifier estimate is determined by using a Monte Carlo Simulation model, which considers the likelihood of all possible outcomes of long-term market performance.
−Removed: The amount of compensation cost the Company recognizes over the requisite service period is based on management’s best estimate of the achievement of the performance criteria.
+Added: The amount of compensation cost the Company recognizes over the requisite service period is based on management’s best estimate of the achievement of the performance criteria.
The fair value of PSUs vested during the years ended June 30, 2024, 2023, and 2022 was $ 0.7 million, $ 1.7 million, and $ 2.1 million, respectively.
6 unchanged sentences
Total Non-vested Performance Stock Units at June 30, 2024
−Removed: As of June 30, 2023 , there was $ 1.5 million of total unrecognized compensation expense related to non-vested PSUs.
−Removed: The Company expects this expense to be recognized over a weighted average period of 1.9 years.
+Added: As of June 30, 2024 , there was no unrecognized compensation expense related to non-vested PSUs.
Nonqualified Stock Options
1 unchanged sentence
As of July 2019, all outstanding options were fully vested and exercisable.
−Removed: All outstanding options as of June 30, 2022, were exercised during the year ended June 30, 2023.
+Added: All outstanding options were exercised as of June 30, 2023.
A summary of NSO activity within continuing operations for these years is as follows:
4 unchanged sentences
Outstanding at June 30, 2023
−Removed: Forfeited or expired
−Removed: Outstanding at June 30, 2023
COMMITMENTS AND CONTINGENCIES
Repurchase Obligations
−Removed: Under certain conditions, the Company is obligated to repurchase new inventory repossessed from dealerships by financial institutions that provide credit to the Company’s dealers.
+Added: Under certain conditions, the Company is obligated to repurchase new inventory repossessed from dealerships by financial institutions that provide credit to the Company’s dealers.
See Note 1 for more information regarding the terms and accounting policies related to this obligation.
14 unchanged sentences
The Company determines if an arrangement is a lease at lease inception.
−Removed: Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date.
−Removed: Because the rates implicit in the Company's lease contracts are not readily determinable, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of future
+Added: Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date.
+Added: Because the rates implicit in the Company's lease contracts are not readily determinable, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments.
The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.
7 unchanged sentences
The Company accrues for litigation, claims and proceedings when a liability is both probable and the amount can be reasonably estimated.
−Removed: As of June 30, 2023 , the Company’s accruals for litigation matters are not material.
−Removed: While these matters are subject to inherent uncertainties, management believes that current litigation, claims and proceedings, individually and in aggregate, and after considering expected insurance reimbursements, are not likely to have a material adverse impact on the Company’s financial position, results of operations or cash flows.
+Added: As of June 30, 2024 , the Company’s accruals for litigation matters are not material.
+Added: While these matters are subject to inherent uncertainties, management believes that current litigation, claims and proceedings, individually and in aggregate, and after considering expected insurance reimbursements, are not likely to have a material adverse impact on the Company’s financial position, results of operations or cash flows.
EARNINGS PER SHARE AND COMMON STOCK
2 unchanged sentences
Loss from discontinued operations, net of tax
−Removed: Weighted average shares —
+Added: Weighted average shares — basic
Dilutive effect of assumed exercises of stock options
Dilutive effect of assumed restricted share awards/units
−Removed: Weighted average outstanding shares —
+Added: Weighted average outstanding shares — diluted
Basic net income (loss) per share
6 unchanged sentences
Stock Repurchase Program
−Removed: 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.
−Removed: During the fiscal years ended June 30, 2023 and 2022 , the Company repurchased 872,055 shares and 975,161 shares of common stock for $ 22.9 million and $ 25.5 million in cash, including related fees and expenses.
−Removed: We did no t repurchase any common stock during fiscal 2021.
−Removed: As of June 30, 2023 , $ 1.6 million remained available under the current authorization.
+Added: 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 ended June 24, 2024.
+Added: As of June 30, 2023, $ 1.6 million remained available under this program, all of which was fully utilized during the fiscal 2024 first quarter ended October 1, 2023.
On July 24, 2023, the board of directors of the Company authorized a new share repurchase program under which the Company may repurchase up to $ 50 million of its outstanding shares of common stock.
−Removed: The new authorization will become effective upon the expiration of the Company's existing $ 50 million share repurchase authorization.
+Added: The new authorization became effective upon the completion of the Company’s existing $ 50 million share repurchase authorization.
+Added: As of June 30, 2024, $ 35.4 million remained available under the new authorization.
+Added: During the fiscal years ended June 30, 2024, 2023 and 2022 , the Company repurchased 750,943 shares, 872,055 shares and 975,161 shares of common stock for $ 16.3 million, $ 22.9 million and $ 25.5 million in cash, including related fees and expenses.
SEGMENT INFORMATION
−Removed: Reportable Segments
+Added: During the fourth quarter of fiscal 2024, the Company changed the name of its “Crest” operating segment to “Pontoon.” The segment name change had no impact on the composition of the Company's segments or on previously reported financial position, results of operations, cash flows or segment operating results.
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.
−Removed: For the year ended June 30, 2023, the Company’s CODM regularly assessed the operating performance of the Company’s boat brands under three operating and reportable segments:
+Added: For the year ended June 30, 2024 , 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.
−Removed: The Crest segment produces pontoon boats at its Owosso, Michigan facility.
−Removed: Crest’s boats are primarily used for general recreational boating.
+Added: • The Pontoon segment produces pontoon boats at its Owosso, Michigan facility.
+Added: Pontoon boats are primarily used for general recreational boating.
• The Aviara segment produces luxury day boats at its Merritt Island, Florida facility.
4 unchanged sentences
All material corporate costs are included in the MasterCraft segment.
−Removed: Selected financial information for the Company’s reportable segments was as follows:
+Added: Selected financial information for the Company’s reportable segments was as follows:
For the Year Ended June 30, 2024
5 unchanged sentences
Depreciation and amortization
−Removed: Goodwill impairment
Purchases of property, plant and equipment
3 unchanged sentences
Purchases of property, plant and equipment
−Removed: The following table presents total assets for the Company’s reportable segments as of June 30, 2023, and 2022.
+Added: The following table presents total assets for the Company’s reportable segments as of June 30, 2024 and 2023.
June 30, 2024
June 30, 2023
−Removed: Discontinued operations
−Removed: QUARTERLY FINANCIAL REPORTING (UNAUDITED)
−Removed: The Company maintains its financial records on the basis of a fiscal year ending on June 30, with the fiscal quarters equaling thirteen weeks.
−Removed: The following tables set forth summary quarterly financial information for the years ended June 30, 2023 and 2022, and reflects the retrospective presentation of discontinued operations as discussed in Note 3.
−Removed: Due to the effects of rounding, the quarterly results presented may not sum to the fiscal year results presented.
−Removed: Fiscal Quarter Ended
−Removed: Fiscal Year Ended
−Removed: Operating income
−Removed: Net income from continuing operations
−Removed: Loss from discontinued operations
−Removed: Basic net income (loss) per common share
−Removed: Continuing operations
−Removed: Discontinued operations
−Removed: Diluted net income (loss) per common share
−Removed: Continuing operations
−Removed: Discontinued operations
−Removed: Weighted average shares used for computation of:
−Removed: Basic earnings per common share
−Removed: Diluted earnings per common share
−Removed: Fiscal Quarter Ended
−Removed: Fiscal Year Ended
−Removed: Operating income
−Removed: Net income from continuing operations
−Removed: Loss from discontinued operations
−Removed: Basic net income (loss) per common share
−Removed: Continuing operations
−Removed: Discontinued operations
−Removed: Diluted net income (loss) per common share
−Removed: Continuing operations
−Removed: Discontinued operations
−Removed: Weighted average shares used for computation of:
−Removed: Basic earnings per common share
−Removed: Diluted earnings per common share
+Added: SUBSEQUENT EVENT
+Added: On August 8, 2024, the Company announced that it had entered into an asset exchange agreement, pursuant to which it will transfer rights to its Aviara brand of luxury dayboats and certain related assets to a subsidiary of MarineMax (the “Aviara Transaction”).
+Added: The Aviara Transaction is subject to customary closing conditions, and is expected to close in the first quarter of fiscal 2025.
+Added: Following consummation of the Aviara Transaction, we intend to close the Merritt Island facility and offer the property for open market sale.
+Added: The Company intends to classify Aviara as discontinued operations beginning in the first quarter of fiscal 2025.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.