23 unchanged sentences
Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many important factors could affect our actual operating and financial performance and cause our performance to differ materially from the performance anticipated in the forward-looking statements, including but not limited to the following:
−Removed: the potential effects of the coronavirus (“COVID-19”) pandemic on the Company, general economic conditions, demand for our products, changes in consumer preferences, competition within our industry, our reliance on our network of independent dealers, our ability to manage our manufacturing levels and our fixed cost base, the successful introduction of our new products and the other important factors described under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019, filed with the Securities and Exchange Commission (the “SEC”) on September 13, 2019 (our “2019 Annual Report”), our Quarterly Report on Form 10-Q for the fiscal quarter ended December 29, 2019, filed with the SEC on February 5, 2020 (our “Fiscal Second Quarter Quarterly Report”), and this Quarterly Report on Form 10-Q (this “Quarterly Report”).
+Added: the potential effects of the coronavirus (“COVID-19”) pandemic on the Company, general economic conditions, demand for our products, changes in consumer preferences, competition within our industry, our reliance on our network of independent dealers, our ability to manage our manufacturing levels and our fixed cost base, the successful introduction of our new products and the other important factors described under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020, filed with the Securities and Exchange Commission (“SEC”) on September 11, 2020 (our “2020 Annual Report”).
Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect, our actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements.
4 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
−Removed: (Dollars in thousands, except share and per share data)
+Added: (Dollars in thousands, except per share amounts)
Three Months Ended
−Removed: Nine Months Ended
+Added: September 29,
COST OF SALES
3 unchanged sentences
Amortization of other intangible assets
−Removed: Goodwill and other intangible asset impairment
Total operating expenses
−Removed: OPERATING INCOME (LOSS)
+Added: OPERATING INCOME
OTHER EXPENSE:
Interest expense
−Removed: INCOME (LOSS) BEFORE INCOME TAX EXPENSE
−Removed: INCOME TAX EXPENSE (BENEFIT)
−Removed: NET INCOME (LOSS)
−Removed: NET INCOME (LOSS) PER SHARE:
+Added: INCOME BEFORE INCOME TAX EXPENSE
+Added: INCOME TAX EXPENSE
+Added: EARNINGS PER SHARE:
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF:
5 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
−Removed: (Dollars in thousands, except share and per share data)
+Added: (Dollars in thousands, except per share amounts)
CURRENT ASSETS:
10 unchanged sentences
Deferred debt issuance costs, net
−Removed: Operating lease assets (Note 8)
Other long-term assets
2 unchanged sentences
Accounts payable
−Removed: Income tax payable
Accrued expenses and other current liabilities (Note 5)
2 unchanged sentences
Long-term debt, net of unamortized debt issuance costs (Note 6)
−Removed: Operating lease liabilities (Note 8)
Unrecognized tax positions
+Added: Other long-term liabilities
Total liabilities
2 unchanged sentences
Common stock, $ .01 par value per share — authorized, 100,000,000 shares;
−Removed: issued and outstanding, 18,872,119 shares at March 29, 2020 and 18,764,037 shares at June 30, 2019
+Added: issued and outstanding, 18,952,338 shares at October 4, 2020 and 18,871,637 shares at June 30, 2020
Additional paid-in capital
6 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
−Removed: (Dollars in thousands, except share data)
+Added: (Dollars in thousands)
Balance at June 30, 2020
Share-based compensation activity
−Removed: Balance at September 29, 2019
−Removed: Share-based compensation activity
−Removed: Balance at December 29, 2019
−Removed: Share-based compensation activity
−Removed: Balance at March 29, 2020
+Added: Balance at October 4, 2020
Balance at June 30, 2019
−Removed: Adoption of accounting standards
Share-based compensation activity
Balance at September 29, 2019
−Removed: Share-based compensation activity
−Removed: Balance at December 30, 2018
−Removed: Share-based compensation activity
−Removed: Balance at March 31, 2019
Notes to Unaudited Condensed Consolidated Financial Statements form an integral part of the condensed consolidated financial statements.
3 unchanged sentences
(Dollars in thousands)
−Removed: Nine Months Ended
+Added: Three Months Ended
+Added: September 29,
CASH FLOWS FROM OPERATING ACTIVITIES:
−Removed: Net income (loss)
−Removed: Adjustments to reconcile net income (loss) to net cash provided by operating activities:
+Added: Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
Share-based compensation
−Removed: Deferred income taxes
Unrecognized tax benefits
Amortization of debt issuance costs
−Removed: Goodwill and other intangible asset impairment
Changes in certain operating assets and liabilities
1 unchanged sentence
CASH FLOWS FROM INVESTING ACTIVITIES:
−Removed: Payments for acquisitions, net of cash acquired
Purchases of property, plant and equipment
2 unchanged sentences
CASH FLOWS FROM FINANCING ACTIVITIES:
−Removed: Proceeds from issuance of long-term debt
+Added: Principal payments on revolving credit facility
Principal payments on long-term debt
−Removed: Borrowings on revolving credit facility
−Removed: Proceeds from insurance premium financing
Principal payments on insurance premium financing
−Removed: Payments of debt issuance costs
Cash paid for withholding taxes on vested stock
12 unchanged sentences
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (Unless stated otherwise dollars in thousands, except share and per share data)
−Removed: ORGANIZAT ION, BASIS OF PRESENTATION , AND SIGNIFICANT ACCOUNTING POLICIES
+Added: (Unless stated otherwise dollars in thousands, except per share data)
+Added: ORGANIZATION, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES
Organization — MasterCraft Boat Holdings, Inc.
−Removed: (“Holdings”) was formed on January 28, 2000, as a Delaware holding company and operates primarily through its wholly owned subsidiaries, MasterCraft Boat Company, LLC, MasterCraft Services, LLC, MasterCraft Parts, Ltd., and MasterCraft International Sales Administration, Inc.
+Added: (“Holdings”) was formed on January 28, 2000, as a Delaware holding company and operates primarily through its wholly owned subsidiaries, MasterCraft Boat Company, LLC;
+Added: MasterCraft Services, LLC;
+Added: MasterCraft Parts, Ltd.;
+Added: and MasterCraft International Sales Administration, Inc.
(collectively “MasterCraft”);
2 unchanged sentences
Holdings and its subsidiaries collectively are referred to herein as the “Company.”
−Removed: The Company is a leading innovator, designer, manufacturer, and marketer of recreational powerboats that operates in three reportable segments:
−Removed: MasterCraft, NauticStar and Crest.
−Removed: See Note 12 for information regarding the Company’s reportable segments.
Basis of Presentation — The Company’s fiscal year begins July 1 and ends June 30, with the interim quarterly reporting periods consisting of 13 weeks.
Therefore, the fiscal quarter end will not always coincide with the date of the end of a calendar month.
−Removed: The unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements for the year ended June 30, 2019 and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company’s financial position as of March 29, 2020, its results of operations for the three and nine months ended March 29, 2020 and March 31, 2019, its cash flows for the nine months ended March 29, 2020 and March 31, 2019, and its statements of stockholders’ equity for the three and nine months ended March 29, 2020 and March 31, 2019.
+Added: The unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements for the year ended June 30, 2020 and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company’s financial position as of October 4, 2020, its results of operations for the three months ended October 4, 2020 and September 29, 2019, its cash flows for the three months ended October 4, 2020 and September 29, 2019, and its statements of stockholders’ equity for the three months ended October 4, 2020 and September 29, 2019.
All adjustments are of a normal, recurring nature.
Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
−Removed: GAAP”) and the applicable rules and regulations of the U.S.
−Removed: Securities and Exchange Commission (“SEC”) for financial information have been condensed or omitted pursuant to such rules and regulations.
+Added: GAAP”) and the applicable rules and regulations of the SEC for financial information have been condensed or omitted pursuant to such rules and regulations.
The June 30, 2020 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by U.S.
1 unchanged sentence
However, management believes that the disclosures in these condensed consolidated financial statements are adequate to make the information presented not misleading.
−Removed: These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019, filed with the SEC on September 13, 2019 (our “2019 Annual Report”).
+Added: These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K.
Due to the seasonality of the Company’s business, the interim results are not necessarily indicative of the results that may be expected for the remainder of the fiscal year.
−Removed: COVID-19 Pandemic — The outbreak of a novel coronavirus throughout the world, including the United States, during early calendar year 2020 has caused widespread business and economic disruption through mandated and voluntary business closings and restrictions on the movement and activities of people (“COVID-19 Pandemic”).
−Removed: We are subject to risks and uncertainties as a result of the COVID-19 Pandemic.
−Removed: The extent of the impact of the COVID-19 Pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the COVID-19 Pandemic is rapidly evolving in many countries, including the United States and other markets where the Company operates.
−Removed: It is expected that many of the Company's customers, dealers, and suppliers could be impacted by these closings and restrictions which could materially and adversely affect demand for our products, our ability to obtain or deliver inventory, and our ability to collect accounts receivables as customers face higher liquidity and solvency risk.
−Removed: Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 Pandemic, and it is possible that it could cause an economic downturn, recession, or depression.
−Removed: Such economic disruption could have a material adverse effect on our business as retail demand for our products could decline which would in-turn reduce wholesale demand from our dealers.
−Removed: Policymakers around the world have responded with fiscal and monetary policy actions to support the economy.
−Removed: The magnitude and overall effectiveness of these actions remains uncertain.
−Removed: To protect the health of its manufac turing employees and to balance wholesale production with retail demand, the Company suspended operations at its manufacturing facilities for all of its brands in lat e March 2020.
−Removed: As a result of this action, the Company temporarily laid off nearly all of i ts hourly workforce.
−Removed: After further evaluation, the Company intends to resume operations at its Owosso, Michigan facility (Crest Marine boats) on May 11, 2020 , its Amory, Mississippi facility (NauticStar boats) on May 11, 2020 , and its Vonore, Tennessee fac ility (MasterCraft and Aviara boats) on May 12, 2020.
−Removed: As the Company resumes its operations, it will continue to evaluate and monitor the health and safety of its employees and will adhere to federal and local government mandates and guidelines.
−Removed: The severity of the impact of the COVID-19 Pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration, spread, severity, and impact of the pandemic, the remedial actions and stimulus measures adopted by local and federal governments, the effects of the pandemic on the Company's customers, dealers and suppliers, and to the extent normal economic and operating conditions can resume, all of which are uncertain and cannot be predicted.
−Removed: The Company's future results of operations, cash flows, and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions and uncertain demand, additional goodwill and intangible impairment charges (see Note 6), and the impact of any initiatives that the Company may undertake to address financial and operational challenges faced by it and its customers, dealers, and suppliers.
−Removed: As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 Pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain.
−Removed: With the exception of Accounting Standards Codification (“ASC”) 842 discussed below, there were no significant changes in or changes in the application of the Company’s significant or critical accounting policies or estimation procedures for the nine months ended March 29, 2020 as compared with the significant accounting policies described in the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2019.
+Added: COVID-19 Pandemic — To balance wholesale production with the then anticipated impacts to retail demand caused by the economic impacts of the COVID-19 pandemic, the Company reduced production in February 2020 and, in late March 2020, temporarily suspended manufacturing operations at all of the Company’s facilities to protect the health of employees and to comply with governmental mandates.
+Added: The Company resumed operations at reduced production levels at our manufacturing facilities by mid-May 2020 and the Company continues to ramp up production.
+Added: The Company remains subject to risks and uncertainties as a result of the COVID-19 pandemic (including the possibility of a second wave of infections).
+Added: The extent of the impact of the COVID-19 pandemic on the Company’s business is highly uncertain and difficult to predict, as the response to the COVID-19 pandemic continues to evolve in many countries, including the United States and other markets where the Company operates.
+Added: Capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it has caused economic downturns or recessions in the U.S.
+Added: and other markets where the Company operates.
+Added: Such economic disruption could have a material adverse effect on the Company’s business as retail demand for our products could decline which would in-turn reduce wholesale demand from the Company’s dealers.
+Added: Policymakers around the world have responded and may continue to respond with fiscal and monetary policy actions to support the economy.
+Added: The magnitude and overall effectiveness of these actions remain uncertain.
+Added: The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration, spread, severity, and impact of the pandemic, the remedial actions and stimulus measures adopted by local and federal governments, the effects of the pandemic on the Company's consumers, dealers, suppliers and workforce, and to the extent
+Added: normal economic and operating conditions can resume, all of which are uncertain and cannot be predicted.
+Added: The Company's future results of operations, cash flows, and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain or workforce disruptions and uncertain demand, impairment charge s , and the impact of any initiatives that the Company may undertake to address financial and operational challenges faced by it and its consumers, dealers, and suppliers.
+Added: As of the date of issuance of these consolidated financial statements, the extent to which the COVID-19 p andemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain.
+Added: There were no significant changes in or changes in the application of the Company’s significant or critical accounting policies or estimation procedures for the three months ended October 4, 2020 as compared with the significant accounting policies described in the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2020.
+Added: New Accounting Pronouncements Issued But Not Yet Adopted
+Added: Income Taxes — In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740).
+Added: This ASU simplifies the accounting for income taxes by, among other things, eliminating certain existing exceptions related to the general approach in ASC 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for transactions outside of business combination that result in a step-up in the tax basis of goodwill.
+Added: The transition requirements are primarily prospective, and the effective date is for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted.
+Added: We are currently evaluating the impact of the new guidance on our consolidated financial statements.
Recently Adopted Accounting Standards
−Removed: In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases, (“ASC 842”) which requires lessees to recognize assets and liabilities on the balance sheet for all leases with terms greater than twelve months.
−Removed: On July 1, 2019, the Company adopted ASC 842 and all related amendments.
−Removed: The Company elected the optional transition method provided by the FASB in ASU 2018-11, Leases (Topic 842):
−Removed: Targeted Improvements , and as a result, has not restated its condensed consolidated financial statements for prior periods presented.
−Removed: The Company has elected the package of practical expedients upon transition which allowed the Company to retain the lease classification for any leases that existed prior to adoption, to not reassess whether any contracts entered into prior to adoption are leases, and to not reassess initial direct costs for any leases that existed prior to adoption.
−Removed: ASC 842 did not have a material impact on the Company's condensed consolidated statements of operations.
−Removed: The cumulative effect of the changes made to the Company's consolidated balance sheet as of July 1, 2019 for the adoption of ASC 842 was as follows:
−Removed: Balance as of
−Removed: Balance as of
−Removed: June 30, 2019
−Removed: Due to ASC 842
−Removed: Operating lease assets
−Removed: Current liabilities
−Removed: Accrued expenses and other current liabilities
−Removed: Long-term liabilities
−Removed: Operating lease liabilities
−Removed: 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: As the Company's lease contracts generally do not include an implicit rate, the Company uses its incremental
−Removed: borrowing rate based on information available at commencement date in determining the present value of future payments.
−Removed: The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar t erms and payments, and in economic environments where the leased asset is located.
−Removed: The operating lease ROU asset also includes any initial direct costs and lease payments made prior to lease commencement and excludes lease incentives incurred.
−Removed: The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.
−Removed: Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
−Removed: The Company may enter into lease agreements that contain both lease and non-lease components, which it has elected to account for as a single lease component for all asset classes.
−Removed: See Note 8 for information regarding the Company’s leases.
−Removed: Share-Based Compensation
−Removed: In June 2018, the Financial Accounting Standards Board issued ASU 2018-07 , Compensation—Stock Compensation (Topic 718):
−Removed: Improvements to Nonemployee Share-Based Payment Accounting .
−Removed: This guidance provides clarity and reduces complexity when applying the guidance in Topic 718, Compensation—Stock Compensation to the term or condition of share-based payments to nonemployees.
−Removed: ASU 2018-07 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018.
−Removed: The Company adopted this guidance for its fiscal year beginning July 1, 2019.
−Removed: The adoption of this standard did not have a material impact on its financial statements.
−Removed: Recently Issued Accounting Standards
−Removed: Fair Value Measurements
−Removed: In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820):
+Added: Fair Value Measurements — In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820):
Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.
This guidance modifies the disclosure requirements on fair value measurements in Topic 820 by removing disclosures regarding transfers between Level 1 and Level 2 of the fair value hierarchy, by modifying the measurement uncertainty disclosure, and by requiring additional disclosures for Level 3 fair value measurements, among others.
−Removed: The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.
−Removed: The Company does not expect the adoption of this new guidance to have a material impact on its financial statements.
+Added: The Company adopted this guidance for its fiscal year beginning July 1, 2020 .
+Added: The adoption of this standard did not have an impact on the consolidated financial statements.
+Added: Current Expected Credit Loss — In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326):
+Added: Measurement of Credit Losses on Financial Instruments , which updated the ASC to use an impairment model that is based on expected losses rather than incurred losses.
+Added: The Company adopted this guidance for its fiscal year beginning July 1, 2020 .
+Added: The adoption of this standard did not have an impact on the consolidated financial statements .
REVENUE RECOGNITION
−Removed: The following tables present the Company’s revenue from contracts with customers by major product category and reportable segment.
−Removed: Three Months Ended March 29, 2020
−Removed: Major Product Categories:
−Removed: Boats and trailers
−Removed: Other revenue
−Removed: Nine Months Ended March 29, 2020
−Removed: Major Product Categories:
−Removed: Boats and trailers
−Removed: Other revenue
−Removed: Three Months Ended March 31, 2019
−Removed: Major Product Categories:
−Removed: Boats and trailers
−Removed: Other revenue
−Removed: Nine Months Ended March 31, 2019
+Added: The following table presents the Company’s revenue by major product category for each reportable segment.
+Added: Three Months Ended October 4, 2020
+Added: Three Months Ended September 29, 2019
Major Product Categories:
1 unchanged sentence
Other revenue
−Removed: Crest was acquired on October 1, 2018.
Contract Liabilities
As of June 30, 2020, the Company had $ 0.6 million of contract liabilities associated with customer deposits.
−Removed: During the nine months ended March 29, 2020, all of this amount was recognized as revenue.
−Removed: As of March 29, 2020, total contract liabilities associated with customer deposits were $0.4 million, were reported in Accrued expenses and other current liabilities on the condensed consolidated balance sheet, and are expected to be recognized as revenue during the remainder of the year ended June 30, 2020.
−Removed: RELATED PARTY TRANSACTIONS
−Removed: Crest Facility Lease
−Removed: In connection with the operations of Crest, the Company made rental payments to Crest Marine Real Estate LLC (“Real Estate”) for a manufacturing facility, storage and office building (the “Crest Facility”).
−Removed: One of the minority owners of Real Estate is a member of the Crest management team.
−Removed: The lease was to expire on September 30, 2028, and was subject to four consecutive, five-year renewal periods.
−Removed: The lease terms included an option for the Company to purchase the Crest Facility for an amount equal to its fair market value, as determined by appraisals and negotiation between the Company and Real Estate (the “Purchase Option”).
−Removed: The annual rent under the lease was $0.3 million for the first five years of the lease term, and was to increase to $0.4 million for the remaining five years.
−Removed: Additionally, at the beginning of each of the optional renewal terms the rent was to be adjusted based on the change in the Consumer Price Index.
−Removed: In accordance with the Purchase Option, on October 24, 2019 the Company purchased the Crest Facility for $4.1 million.
−Removed: See Note 8 for additional information regarding the purchase.
−Removed: Crest Supplier Relationship
−Removed: Crest purchases fiberglass component parts from a supplier whose minority owner was the same member of the Crest management team that has a minority ownership interest in Real Estate.
−Removed: On January 31, 2020 this minority ownership interest was divested and this supplier ceased being a related party.
−Removed: During the period beginning July 1, 2019 and ending January 31, 2020, the Company purchased $1.8 million of products from the supplier.
+Added: During the three months ended October 4, 2020, all of this amount was recognized as revenue.
+Added: As of October 4, 2020, total contract liabilities associated with customer deposits were $ 1.1 million, were reported in Accrued expenses and other current liabilities on the condensed consolidated balance sheet, and are expected to be recognized as revenue during the remainder of the year ended June 30, 2021.
Inventories consisted of the following:
4 unchanged sentences
Total inventories
+Added: GOODWILL AND OTHER INTANGIBLE ASSETS
+Added: The carrying amounts of goodwill as of October 4, 2020 and June 30, 2019, attributable to each of the Company’s reportable segments, were as follows:
+Added: Accumulated Impairment Losses
+Added: The following table presents the carrying amount of Other intangible assets, net:
+Added: Accumulated Amortization / Impairment
+Added: Other intangible assets, net
+Added: Accumulated Amortization / Impairment
+Added: Other intangible assets, net
+Added: Amortized intangible assets
+Added: Dealer networks
+Added: Unamortized intangible assets
+Added: Total other intangible assets
+Added: Amortization expense related to Other intangible assets, net for each of the three months ended October 4, 2020 and September 29, 2019 was $ 1.0 million.
+Added: Estimated amortization expense for the fiscal year ended June 30, 2021 is $ 4.0 million.
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
7 unchanged sentences
Debt interest
−Removed: Current operating lease liabilities
Total accrued expenses and other current liabilities
−Removed: The following activity related to warranty liabilities was recorded in Accrued expenses and other current liabilities during the nine months ended March 29, 2020 and March 31, 2019:
−Removed: Nine Months Ended
+Added: Accrued warranty liability activity was as follows for the three months ending:
+Added: September 29,
Balance at the beginning of the period
−Removed: Additions for Crest acquisition
Payments made
1 unchanged sentence
Balance at the end of the period
−Removed: GOODWILL AND OTHER INTANGIBLE ASSETS
−Removed: The current economic environment, including the significant declines in share price, market volatility and the disruption to the Company’s supply chain resulting from the COVID-19 Pandemic, triggered an interim impairment analysis for the Company’s intangible assets including goodwill.
−Removed: Holistically, the Company evaluated the events and changes in circumstances since the most recent quantitative impairment test performed as of June 30, 2019 and determined that is more likely than not that our trade names and goodwill at certain reporting units were impaired.
−Removed: Determining the fair value of trade names and goodwill required the use of significant judgement, including estimation of cash flows, which are dependent on internal forecasts, estimation of long-term growth rate for each reporting unit, and determination of the weighted average cost of capital.
−Removed: A number of significant assumptions and estimates are involved in the application of the discounted cash flow model to forecast operating cash flows, including market growth and market share, sales volumes and prices, production costs, discount rate, and estimated capital needs.
−Removed: Management considers historical experience and all available information at the time that the fair values of the Company’s reporting units are estimated.
−Removed: Inputs used to estimate these fair values included significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, the fair value assessments are classified within Level 3 of the fair value hierarchy.
−Removed: If the carrying amount of trade names or goodwill exceed their fair value, then they are 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 trade name or goodwill allocated to that reporting unit.
−Removed: As a result of this analysis, the Company recorded impairment charges totaling $56.4 million during the three months ended March 29, 2020 related to the NauticStar and Crest segments.
−Removed: The charges recorded to each segment are detailed below, and are included in Goodwill and other intangible asset impairment on the condensed consolidated statements of operations.
−Removed: The impairment was principally a result of a decline, in the fiscal third quarter, in market conditions, including our share price, and the outlook for sales and operating performance relative to the Company’s acquisition plans and impairment test performed as of June 30, 2019.
−Removed: Goodwill and other intangible asset impairment for the three and nine months ended March 29, 2020 was as follows:
−Removed: While the extent and duration of the economic impact from the COVID-19 pandemic remain unclear, changes in assumptions and estimates may affect the fair value of goodwill and other intangibles and could result in additional impairment charges in future periods.
−Removed: The carrying amounts of goodwill as of March 29, 2020 and June 30, 2019, attributable to each of the Company’s reportable segments, were as follows:
−Removed: Balance as of March 29, 2020
−Removed: Accumulated Impairment Losses
−Removed: Balance as of June 30, 2019
−Removed: Accumulated Impairment Losses
−Removed: The following table presents the carrying amount of Other intangible assets, net as of March 29, 2020 and June 30, 2019.
−Removed: Accumulated Amortization / Impairment
−Removed: Other intangible assets, net
−Removed: Accumulated Amortization / Impairment
−Removed: Other intangible assets, net
−Removed: Amortized intangible assets
−Removed: Dealer networks
−Removed: Unamortized intangible assets
−Removed: Total other intangible assets
−Removed: Amortization expense related to Other intangible assets, net for the three and nine months ended March 29, 2020 was $1.0 and $3.0 million, respectively.
−Removed: Amortization expense related to Other intangible assets, net for the three and nine months ended March 31, 2019 was $1.0 and $2.5, respectively.
−Removed: Estimated amortization expense for the fiscal year ended June 30, 2020 is $4.0 million.
+Added: Insurance Premium Financing
+Added: On March 27, 2020, the Company executed an insurance premium financing agreement of $ 1.1 million with a premium finance company in order to finance certain of its annual insurance premiums.
+Added: Beginning on April 1, 2020, the financing agreement is payable in eleven monthly installments of principal and interest of approximately $ 0.1 million.
+Added: The agreement bears interest at 3.6 %.
+Added: The balance of the insurance premium financing as of October 4, 2020 was $ 0.4 million and is recorded in Accrued expenses and other current liabilities.
LONG-TERM DEBT
Long-term debt is as follows:
−Removed: Senior secured term loans
+Added: Revolving credit facility
Debt issuance costs on term loans
2 unchanged sentences
Long-term debt, net of current portion
−Removed: On October 1, 2018, the Company entered into the Fourth Amended and Restated Credit and Guaranty Agreement with a syndicate of certain financial institutions (the “Fourth Amended Credit Agreement”).
−Removed: The Fourth Amended Credit Agreement replaced the Company’s Third Amended and Restated Credit Agreement, dated October 2, 2017.
−Removed: The Fourth Amended Credit Agreement provides the Company with a $190.0 million senior secured credit facility, consisting of a $75.0 million term loan, and an $80.0 million term loan (together, the “Term Loans”), and a $35.0 million revolving credit facility (the “Revolving Credit Facility”).
−Removed: The Fourth Amended Credit Agreement bears interest, at the Company’s option, at either the prime rate plus an applicable margin ranging from 0.5% to 1.5% or at an adjusted LIBOR rate plus an applicable margin ranging from 1.5% to 2.5%, in each case based on
−Removed: the Company’s Total Net Leverage Ratio, as defined under the Fourth Amended Credit Agreement .
−Removed: Based on the Company’s Total Net Leverage Ratio as of March 29, 2020 , the applicable margin for loans accruing interest at the prime rate is 0.75% and the appl icable margin for loans accruing interest at LIBOR is 1.75% .
−Removed: As of March 19, 2020, the Company drew $35.0 million on its revolving credit agreement as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of uncertainty in the global markets resulting from the COVID-19 Pandemic.
−Removed: As of March 29, 2020, the Company had $35.0 million of borrowings outstanding on its Revolving Credit Facility.
−Removed: The Company’s unamortized debt issuance costs related to the Revolving Credit Facility were $0.4 million and $0.5 million as of March 29, 2020 and June 30, 2019, respectively.
−Removed: All amounts outstanding under the Fourth Amended Credit Agreement mature in October 2023.
−Removed: As of March 29, 2020, the Company was in compliance with its financial covenants under the Fourth Amended Credit Agreement.
+Added: On October 1, 2018, the Company entered into a Fourth Amended and Restated Credit and Guaranty Agreement with a syndicate of certain financial institutions (the “Fourth Amended Credit Agreement”).
+Added: The Fourth Amended Credit Agreement provides the Company with a $ 190.0 million senior secured credit facility, consisting of a $ 75.0 million term loan, and an $ 80.0 million term loan (together,
+Added: the “Term Loans”), and a $ 35.0 million revolving credit facility (the “Revolving Credit Facility”).
+Added: The Fourth Amended Credit Agreement is secured by substantially all the assets of the Company.
+Added: Holdings is a guarantor on the Fourth Amended Credit Agreement and the Fourth Amended Credit Agreement contains covenants that restrict the ability of Holdings’ subsidiaries to make distributions to Holdings.
+Added: The Term Loans will mature and all remaining amounts outstanding thereunder will be due and payable on October 1, 2023.
Amendment to Fourth Amended Credit Agreement
4 unchanged sentences
(i) an Interest Coverage Ratio, (ii) a Minimum Liquidity threshold, and (iii) a Maximum Unfinanced Capital Expenditures limitation (the “Package of Financial Covenants”).
−Removed: The Package of Financial Covenants are in place through the quarter ended March 31, 2021, at which time the Total Net Leverage Ratio covenant and Fixed Charge Coverage Ratio covenant will be reinstated and the Package of Financial Covenants will sunset, and with the minimum liquidity covenant being tested on the last day of each fiscal month through May 31, 2021.
+Added: The Package of Financial Covenants are in place through the quarter ended March 31, 2021, after which time the Total Net Leverage Ratio covenant and Fixed Charge Coverage Ratio covenant will be reinstated and the Package of Financial Covenants will sunset, and with the minimum liquidity covenant being tested on the last day of each fiscal month through May 31, 2021.
In addition, the Total Net Leverage Ratio calculation was temporarily revised to include all unrestricted cash balances, without limitation, until June 30, 2021.
−Removed: Pursuant to the Amendment, the applicable interest, at the Company’s option, is at either the prime rate plus an applicable margin ranging from 0.5% to 2.25% or at an adjusted LIBOR rate plus an applicable margin ranging from 1.5% to 3.25%, in each case based on the Company’s Total Net Leverage Ratio.
−Removed: Insurance Premium Financing
−Removed: On March 27, 2020, the Company executed an insurance premium financing agreement of $1.1 million with a premium finance company in order to finance certain of its annual insurance premiums.
−Removed: Beginning on April 1, 2020, the financing agreement is payable in eleven monthly installments of principal and interest of approximately $0.1 million.
−Removed: The agreement bears interest at 3.6%.
−Removed: The balance of the insurance premium financing as of March 29, 2020 was $0.9 million and is recorded in Accrued expenses and other current liabilities.
−Removed: The Company has lease agreements for certain personal and real property.
−Removed: Leases with an initial lease term of 12 months or less are not recorded on the balance sheet.
−Removed: Our lease agreements do not include any significant renewal options.
−Removed: Our lease agreements do not contain any material residual value guarantees or material restrictive covenants .
−Removed: Upon adoption of ASC 842 on July 1, 2019, the Company’s most significant lease was for the Crest Facility, which was classified as an operating lease.
−Removed: This lease included the Purchase Option for the Company to acquire the premises.
−Removed: During the three months ended September 29, 2019, the decision was made to exercise the Purchase Option which resulted in $2.8 million of operating lease assets and liabilities being reclassified to finance lease assets and liabilities on the September 29, 2019 condensed consolidated balance sheet.
−Removed: In addition, the decision to exercise the Purchase Option resulted in the remeasurement of the related lease balances which added $1.3 million of additional finance lease assets and finance lease liabilities to the September 29, 2019 condensed consolidated balance sheet.
−Removed: In accordance with the Purchase Option, on Oct ober 24, 2019 the Company completed the purchase of the Crest Facility for $4.1 million.
−Removed: Upon completion of this purchase, t he Company recognized approximately $4.
−Removed: 1 million in Property, plant and equipment, net and derecognized approximately $4.1 million o f both Finance lease assets and Accrued expenses and other current liabilities on the condensed consolidated balance sheet.
−Removed: The purchase price of the Crest Facility was determined by appraisal and negotiation between the Company and Real Estate.
−Removed: The Company funded the purchase by utilizing cash from operations.
−Removed: A summary of the Company's lease assets and lease liabilities as of March 29, 2020 is as follows:
−Removed: Classification
−Removed: Operating lease assets
−Removed: Operating lease assets
−Removed: Lease Liabilities
−Removed: Current operating lease liabilities
−Removed: Accrued expenses and other current liabilities
−Removed: Non-current operating lease liabilities
−Removed: Operating lease liabilities
−Removed: Total lease liabilities
−Removed: A summary of the Company's total lease cost for the three and nine months ended March 29, 2020 is as follows:
−Removed: Classification
−Removed: Three Months Ended
−Removed: Nine Months Ended
−Removed: Operating lease cost
−Removed: Cost of sales
−Removed: General and administrative
−Removed: Total lease cost (a)
−Removed: Includes total variable lease cost and total short-term lease cost, both of which were immaterial.
−Removed: The Company's maturity analysis of its operating lease liabilities as of March 29, 2020 is as follows:
−Removed: Remainder of 2020
−Removed: Total lease payments
−Removed: Present value of lease payments
−Removed: The total weighted-average discount rate and remaining lease term for the Company's operating leases were 4.73% and 2.36 years, respectively, as of March 29, 2020.
−Removed: For the nine months ended March 29, 2020, total operating cash flows related to operating leases were $0.4 million.
−Removed: Future minimum rental payments under all non-cancelable operating leases with remaining lease terms in excess of one year at June 30, 2019, were as foll ows:
−Removed: On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (H.R.
−Removed: 748) (the “CARES Act”).
−Removed: Among the changes to the U.S.
−Removed: federal income tax rules, the CARES Act restored net operating loss carryback rules that were eliminated by the Tax Cuts and Jobs Act (the “Tax Reform Act”), modified the limit on the deduction for net interest expense and accelerated the timeframe for refunds of AMT credits.
−Removed: The Company has evaluated the impact of the CARES Act and has not identified any material effect on its results of operations, financial condition, or cash flows.
+Added: As of October 4, 2020, the Company was in compliance with its financial covenants under the Amendment to the Fourth Amended Credit Agreement.
+Added: Pursuant to the Amendment, the applicable interest, at the Company’s option, is at either the prime rate plus an applicable margin ranging from 0.5 % to 2.25 % or at a LIBOR rate, subject to a 50 basis point floor, plus an applicable margin ranging from 1.5 % to 3.25 %, in each case based on the Company’s Total Net Leverage Ratio.
+Added: During the quarter, the applicable margin for loans accruing interest at the prime rate was 1.25 % and the applicable margin for loans accruing interest at LIBOR was 2.25 %.
+Added: Revolving Credit Facility
+Added: During the three months ended October 4, 2020, the Company repaid $ 10.0 million on its $ 35.0 million Revolving Credit Facility and the availability under the Revolving Credit Facility as of October 4, 2020 was $ 35.0 million.
The Company’s consolidated interim effective tax rate is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items.
−Removed: The differences between the Company’s effective tax rates and the statutory federal tax rate of 21.0% primarily relate to the inclusion of the state tax rate in the overall effective rate offset by a permanent benefit associated with the foreign derived intangible income deduction.
−Removed: During the three months ended March 29, 2020 and March 31, 2019, the Company’s effective tax rates were 23.9% and 23.1%, respectively.
−Removed: During the nine months ended March 29, 2020 and March 31, 2019, the Company’s effective tax rates were 23.7% and 21.4%, respectively.
−Removed: The Company’s effective tax rates for the three and nine months ended March 29, 2020 are higher compared to the effective tax rates for the three and nine months ended March 31, 2019, primarily due to favorable discrete adjustments which reduced the effective tax rates for the three and nine months ended March 31, 2019.
−Removed: NET INCOME (LOSS) PER SHARE
−Removed: The following table sets forth the computation of the Company’s net income (loss) per share:
+Added: The differences between the Company’s effective tax rates and the statutory federal tax rate of 21.0 % primarily relate to the inclusion of the state tax rate in the overall effective rate, the benefit of federal and state credits, and a permanent benefit associated with the foreign derived intangible income deduction, partially offset by a permanent add-back for Section 162(m) limitations.
+Added: During the three months ended October 4, 2020 and September 29, 2019, the Company’s effective tax rates were 22.8 % and 24.0 %, respectively.
+Added: The Company’s effective tax rate for the three months ended October 4, 2020 is lower compared to the effective tax rate for the three months ended September 29, 2019, primarily due to an increase in the benefit of federal and state tax credits, partially offset by a decrease in the Company’s net permanent benefits, largely driven by changes in the foreign derived intangible income deduction, and add-back for Section 162(m) limitations.
+Added: EARNINGS PER SHARE
+Added: The following table sets forth the computation of the Company’s earnings per share:
Three Months Ended
−Removed: Nine Months Ended
−Removed: Net income (loss)
+Added: September 29,
Weighted average shares — basic
2 unchanged sentences
Weighted average outstanding shares — diluted
−Removed: Basic net income per share
−Removed: Diluted net income (loss) per share
−Removed: For the three and nine months ended March 29, 2020 and March 31, 2019, the weighted average shares that were anti-dilutive, and therefore excluded from the computation of diluted net income (loss) per share, included:
−Removed: Three Months Ended
−Removed: Nine Months Ended
−Removed: Restricted stock awards
−Removed: Performance stock units
+Added: Basic earnings per share
+Added: Diluted earnings per share
+Added: For the three months ended October 4, 2020 and September 29, 2019, an immaterial number of shares were excluded from the computation of diluted earnings per share as the effect would have been anti-dilutive.
SHARE-BASED COMPENSATION
1 unchanged sentence
Three Months Ended
−Removed: Nine Months Ended
+Added: September 29,
Restricted stock awards
2 unchanged sentences
Share-based compensation expense
−Removed: Adjustment to Share-Based Compensation
−Removed: Based upon current economic trends, the probability of attaining the performance criteria of the Performance Stock Units (PSUs”) has been lowered.
−Removed: As a result, the amount of share-based compensation expense has been lowered by approximately $0.4 million on a cumulative basis from original estimates during the three months ended March 29, 2020.
Restricted Stock Awards
−Removed: During the nine months ended March 29, 2020, the Company granted 138,457 RSAs to the Company’s non-executive directors, officers and certain other key employees.
−Removed: Generally, the shares of restricted stock granted during the nine months ended March 29, 2020, vest pro-rata over three years for officers and certain other key employees and over one year for non-executive directors.
+Added: During the three months ended October 4, 2020, the Company granted 87,047 restricted stock awards (“RSAs”) to the Company’s non-executive directors, officers and certain other key employees.
+Added: Generally, the shares of restricted stock granted during the three months ended October 4, 2020, vest pro-rata over three years for officers and certain other key employees and over one year for non-executive directors.
The Company determined the fair value of the shares awarded by using the close price of our common stock as of the date of grant.
−Removed: The weighted average grant date fair value of RSAs granted in the nine months ended March 29, 2020, was $17.41 per share.
−Removed: The following table summarizes the status of nonvested RSAs as of March 29, 2020, and changes during the nine months then ended.
+Added: The weighted average grant date fair value of RSAs granted in the three months ended October 4, 2020, was $ 19.96 per share.
+Added: The following table summarizes the status of nonvested RSAs as of October 4, 2020, and changes during the three months then ended.
Nonvested at June 30, 2020
−Removed: Nonvested at March 29, 2020
−Removed: As of March 29, 2020, there was $1.6 million of total unrecognized compensation expense related to nonvested RSAs.
+Added: Nonvested at October 4, 2020
+Added: As of October 4 , 2020 , there was $ 2.3 million of total unrecognized compensation expense related to nonvested RSAs.
The Company expects this expense to be recognized over a weighted average period of 2.0 years .
Performance Stock Units
−Removed: PSUs are a form of long-term incentive compensation awarded to executive officers and certain other key employees designed to directly align the interests of employees to the interests of the Company’s stockholders, and to create long-term stockholder value.
+Added: Performance stock units (“PSUs”) are a form of long-term incentive compensation awarded to executive officers and certain other key employees designed to directly align the interests of employees to the interests of the Company’s stockholders, and to create long-term stockholder value.
The awards will be earned based on the Company’s achievement of certain performance criteria over a three-year performance period.
2 unchanged sentences
Following the determination of the Company’s achievement with respect to the performance criteria, the number of shares awarded is subject to further adjustment based on the application of a total shareholder return (“TSR”) modifier.
−Removed: The grant date fair value is determined based
−Removed: on both the probability assessment of the Company achieving the performance criteria and an estim ate of the expected TSR modifier.
+Added: The grant date fair value is determined based on both the probability assessment of the Company achieving the performance criteria and an estimate of the expected TSR modifier.
The TSR modifier estimate is determined using a Monte Carlo Simulation model, which considers the likelihood of numerous possible outcomes of long-term market performance.
Compensation expense related to nonvested PSUs is recognized ratably over the performance period.
−Removed: The following table summarizes the status of nonvested PSUs as of March 29, 2020, and changes during the nine months then ended.
+Added: Supplemental PSUs
+Added: On July 16, 2020, after consulting with outside compensation advisors and outside legal counsel, reviewing market data and benchmarking expected relative compensation to the market data, the Company’s Compensation Committee made the decision to grant additional PSUs under the Long-term Incentive Plan (“LTIP Program”) to certain of the Company’s officers, (the “Supplemental PSUs”).
+Added: The “Performance Period” for the Supplemental PSUs is a two-year period commencing July 1, 2020 and ending June 30, 2022.
+Added: The Supplemental PSUs were granted to attract and motivate key employees whose existing fiscal 2019 and fiscal 2020 PSU grants (the “Existing PSUs”) were unlikely to achieve minimum performance goals due to the unprecedented effects of the COVID-19 pandemic.
+Added: The number of Supplemental PSUs that a grantee earns for the performance period will be determined by multiplying the target award by the product of (i) the Composite Payout Percentage and (ii) the Relative TSR Modifier.
+Added: The “Composite Payout Percentage” is calculated based on the Company’s Total Market Share Percentage, Total Consumer Satisfaction Index Percentage and Total Dealer Inventory Turnover Percentage (each as defined in the Supplemental PSU Award Agreement).
+Added: Following the determination of the Company’s achievement with respect to the Composite Payout Percentage over the Performance Period, the vesting of each award will be subject to adjustment based upon the application of a Relative TSR Modifier.
+Added: The Supplemental PSUs are capped at 90 % of the Existing PSUs’ original fair value and would be reduced for any shares issuable upon satisfaction of the performance criteria pursuant to the Existing PSUs.
+Added: The following table summarizes the status of nonvested PSUs as of October 4, 2020, and changes during the three months then ended.
Nonvested at June 30, 2020
−Removed: Nonvested at March 29, 2020
−Removed: As of March 29, 2020, there was $0.3 million of total unrecognized compensation expense related to nonvested PSUs.
+Added: Nonvested at October 4, 2020
+Added: As of October 4, 2020, there was $ 2.2 million of total unrecognized compensation expense related to nonvested PSUs.
The Company expects this expense to be recognized over a weighted average period of 2.24 years.
3 unchanged sentences
The Company’s segments are defined by the Company’s operational and reporting structures.
−Removed: MasterCraft Segment
The MasterCraft segment produces boats under two product brands, MasterCraft and Aviara, at its Vonore, Tennessee facility.
2 unchanged sentences
Production of Aviara boats began during the year ended June 30, 2019 and the Company began selling these boats in July 2019.
−Removed: NauticStar Segment
The NauticStar segment produces boats at its Amory, Mississippi facility.
NauticStar’s boats are primarily used for saltwater fishing and general recreational boating.
−Removed: Crest Segment
The Crest segment produces pontoon boats at its Owosso, Michigan facility.
Crest’s boats are primarily used for general recreational boating.
−Removed: The following tables present financial information for the Company’s reportable segments for the three and nine months ended March 29, 2020 and March 31, 2019 and total assets at March 29, 2020 and June 30, 2019.
−Removed: Three Months Ended March 29, 2020
−Removed: Operating income (loss)
−Removed: Depreciation and amortization
−Removed: Purchases of property, plant and equipment
−Removed: Nine Months Ended March 29, 2020
+Added: Each segment distributes its products through its own dealer network.
+Added: The CODM regularly reviews the operating performance of each segment including measures of performance based on operating income.
+Added: Each segment has its own management structure which is responsible for the operations of the segment and which is directly accountable to the CODM.
+Added: The Company files a consolidated income tax return and does not allocate income taxes and other corporate-level expenses, including interest, to operating segments.
+Added: All material corporate costs are included in the MasterCraft segment.
+Added: Selected financial information for the Company’s reportable segments was as follows:
+Added: For the Three Months Ended October 4, 2020
Operating income (loss)
1 unchanged sentence
Purchases of property, plant and equipment
−Removed: Three Months Ended March 31, 2019
−Removed: Operating income
−Removed: Depreciation and amortization
−Removed: Purchases of property, plant and equipment
−Removed: Nine Months Ended March 31, 2019
+Added: For the Three Months Ended September 29, 2019
Operating income
1 unchanged sentence
Purchases of property, plant and equipment
−Removed: Crest was acquired on October 1, 2018.
−Removed: March 29, 2020
−Removed: On October 1, 2018, we acquired Crest, a manufacturer of pontoon boats.
−Removed: For accounting purposes, Crest meets the definition of a business and has been accounted for as a business combination.
−Removed: We finalized the purchase price allocation and recorded measurement period adjustments to the initial allocation as disclosed in the notes to our consolidated financial statements included in our 2019 Annual Report.
−Removed: Beginning October 1, 2018, our consolidated results of operations include the results of Crest.
−Removed: The unaudited pro forma financial results shown in the table below for the three and nine months ended March 31, 2019, combine the consolidated results of the Company and Crest giving effect to the Crest acquisition as if it had been completed on July 1, 2017.
−Removed: The unaudited pro forma financial results do not give effect to any of our other acquisition activity that occurred after July 1, 2017, and do not include any anticipated synergies or other assumed benefits of the Crest acquisition.
−Removed: This unaudited pro forma financial information is presented for informational purposes only and is not indicative of future operations or results had the Crest acquisition been completed as of July 1, 2017.
−Removed: The unaudited pro forma financial results include certain adjustments for acquisition-related costs, debt service costs
−Removed: and additional amortization expense based upon definite-life amortizable assets acquired.
−Removed: The provision for income taxes has also been adjusted for all periods, based upon the foregoing adjustments to historica l results.
−Removed: Three Months Ended
−Removed: Nine Months Ended
−Removed: Basic earnings per share
−Removed: Diluted earnings per share
+Added: The following table presents total assets for the Company’s reportable segments.
+Added: October 4, 2020
+Added: Eliminations (a)
+Added: Represents the Company’s initial investment in NauticStar and Crest, which is included in total assets attributed to the MasterCraft segment.
+Added: SUBSEQUENT EVENT
+Added: On August 13, 2020 , the Company entered into an agreement to purchase certain real property located in Merritt Island, Florida, including an approximately 140,000 sq.
+Added: boat manufacturing facility.
+Added: During October 2020, the Company completed this purchase for a total cost of $ 14.2 million.
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.