Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
Market Information
Our common stock has been publicly traded on the NASDAQ Global Market under the symbol “MCFT” since July 17, 2015. Prior to that time, there was no public market for our common stock. On September 10, 2020, the last reported sale price on the NASDAQ Global Market of our common stock was $17.91 per share. As of September 4, 2020, we had approximately 6,700 holders of record of our common stock.
Capital Allocation Policy
We presently intend to retain our earnings, if any, to finance the development and growth of our business and operations and do not anticipate declaring or paying cash dividends on our common stock, or repurchasing stock, in the foreseeable future. Any future determination as to the declaration and payment of dividends, or the repurchase of stock, if any, will be at the discretion of our board of directors and will depend on then-existing conditions, including our operating results, financial condition, contractual restrictions, capital requirements, business prospects, and other factors our board of directors may deem relevant. See Item 1A “Risk Factors” — Risks Relating to Ownership of Our Common Stock.
Stock Performance Graph
This performance graph shall not be deemed “soliciting material” or to be “filed” with the SEC for purposes of Section 18 of the Exchange Act of 1934, or otherwise subject to the liabilities under that section, and shall not be deemed to be incorporated by reference into any filing of ours under the Securities Act or the Exchange Act.
The following stock performance graph illustrates the cumulative total shareholder return on our common stock for the period from July 17, 2015 (the first day of trading for our common stock) to June 30, 2020, as compared to the Russell 2000 Index and the Dow Jones US Recreational Products Index.
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The comparison assumes (i) a hypothetical investment of $100 in our common stock and the two above mentioned indices on July 17, 2015 and (ii) the full reinvestme nt of all dividends. The comparisons in the graph are not intended to be indicative of possible future performance of our common stock.
Securities Authorized for Issuance Under Equity Compensation Plans
For information regarding securities authorized for issuance under our equity compensation plans, see Note 10—Share-Based Compensation in Item 8 and Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
ITEM 6. SELECTED FINANCIAL DATA
The selected historical consolidated financial data and other data of MasterCraft Boat Holdings, Inc. set forth below should be read together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes, each of which is included elsewhere in this Form 10-K. In particular, certain matters may significantly impact comparability between the years presented, including certain of those matters discussed in the footnotes to the table below.
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We derived the consolidated statement of operations for the fiscal years ended June 30, 2020 , 2019 and 2018 and our consolidated balance sheet data as of June 30, 2020 and 2019 from our audited consolidated financial statements and related notes included elsewhere in this Form 10-K. We derived the consolidated statement of operations for the fiscal years ended June 30, 201 7 and June 30, 201 6 and our consolidated balance sheet data as of June 30, 2018 , June 30, 201 7 and June 30, 201 6 from audited consolidated financial statements, which are not included in this Form 10-K. Our historical results are not necessarily indicative of the results that may be expected in the future.
As of and for the Fiscal Years Ended June 30,
(Dollars in thousands, except for per share amounts)
2020
2019
2018
2017
2016
Consolidated statements of operations:
NET SALES
$
363,073
$
466,381
$
332,725
$
228,634
$
221,600
COST OF SALES
287,717
353,254
242,361
165,158
160,521
GROSS PROFIT
75,356
113,127
90,364
63,476
61,079
OPERATING EXPENSES:
Selling and marketing
15,981
17,670
13,011
9,380
9,685
General and administrative
25,557
27,706
19,773
20,474
29,162
Amortization of intangible assets
3,948
3,492
1,597
107
221
Goodwill and other intangible asset impairment (1)
56,437
31,000
—
—
—
Total operating expenses
101,923
79,868
34,381
29,961
39,068
OPERATING INCOME (LOSS)
(26,567
)
33,259
55,983
33,515
22,011
OTHER EXPENSE:
Interest expense
5,045
6,513
3,474
2,222
1,280
Change in common stock warrant fair value
—
—
—
—
3,425
Other income
—
—
—
—
(1,212
)
INCOME (LOSS) BEFORE INCOME TAX EXPENSE
(31,612
)
26,746
52,509
31,293
18,518
INCOME TAX EXPENSE (BENEFIT)
(7,565
)
5,392
12,856
11,723
8,308
NET INCOME (LOSS)
$
(24,047
)
$
21,354
$
39,653
$
19,570
$
10,210
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF:
Basic
18,734,482
18,653,892
18,619,793
18,592,885
17,849,319
Diluted
18,734,482
18,768,207
18,714,531
18,620,708
18,257,007
Net income (loss) per common share:
Basic
$
(1.28
)
$
1.14
$
2.13
$
1.05
$
0.57
Diluted
(1.28
)
1.14
2.12
1.05
0.56
Cash dividends declared per common share
$
—
$
—
$
—
$
—
$
4.30
Consolidated balance sheet data:
Total assets
$
207,923
$
248,773
$
176,924
$
83,321
$
82,533
Total liabilities
159,053
176,457
124,402
71,560
90,912
Current portion of long-term debt
8,932
8,725
5,069
3,687
7,885
Long-term debt
99,666
105,016
70,087
30,790
44,342
Total debt
108,598
113,741
75,156
34,477
52,227
Total stockholders’ equity (deficit)
48,870
72,316
52,522
11,761
(8,379
)
Additional financial and other data (unaudited):
Unit sales volume:
MasterCraft
2,478
3,435
3,068
2,790
2,742
NauticStar (2)
1,191
1,831
1,687
—
—
Crest (2)
1,623
2,078
—
—
—
Consolidated unit sales volume
5,292
7,344
4,755
2,790
2,742
Net sales:
MasterCraft
$
246,455
$
311,830
$
266,319
$
228,634
$
221,600
NauticStar (2)
54,930
77,995
66,406
—
—
Crest (2)
61,688
76,556
—
—
—
Consolidated net sales
$
363,073
$
466,381
$
332,725
$
228,634
$
221,600
Net sales per unit:
MasterCraft
$
99
$
91
$
87
$
82
$
81
NauticStar (2)
46
43
39
—
—
Crest (2)
38
37
—
—
—
Consolidated net sales per unit
69
64
70
82
81
Gross margin
20.8
%
24.3
%
27.2
%
27.8
%
27.6
%
Adjusted EBITDA (3)
$
44,298
$
79,323
$
64,028
$
43,476
$
41,227
Adjusted Net Income (3)
$
25,077
$
53,016
$
40,440
$
24,335
$
23,362
Adjusted EBITDA margin (3)
12.2
%
17.0
%
19.2
%
19.0
%
18.6
%
(1)
During fiscal 2020, we recognized goodwill and other intangible asset impairment charges in our NauticStar and Crest segments. During fiscal 2019, we recognized goodwill and other intangible asset impairment charges in our NauticStar segment. See Note 6 in Notes to Consolidated Financial Statements.
( 2 )
During fiscal 2019 and 2018, the Company acquired Crest and NauticStar, respectively, as described in Note 3 in Notes to Consolidated Financial Statements.
( 3 )
Adjusted EBITDA, Adjusted Net Income and Adjusted EBITDA margin are non-GAAP financial measures. For definitions of our non-GAAP measures and a reconciliation of each to net income, see Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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