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. As of August 30, 2021, we had approximately 7,500 holders of record of our common stock.
Dividends
We presently do not anticipate declaring or paying cash dividends on our common stock in the foreseeable future. Any future determination as to the declaration and payment of dividends, 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 Repurchase Plan
On June 24, 2021, the board of directors authorized a stock repurchase plan that allows for the repurchase of up to $50.0 million of our common stock during the three-year period ending June 24, 2024. The timing and amount of any stock repurchases will be determined by management at its discretion based on ongoing assessments of the capital needs of the business, the market price of our common stock and general market conditions. Stock repurchases under the program may be made through a variety of methods, which may include open market purchases, accelerated share repurchases, tender offers, privately negotiated transactions or otherwise The repurchase plan may be reviewed, modified, suspended or terminated by our board of directors at any time as it deems necessary in its sole discretion. We did not repurchase any common stock during fiscal 2021.
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 June 30, 2016 to June 30, 2021, as compared to the Russell 2000 Index and the Dow Jones US Recreational Products Index.
The comparison assumes (i) a hypothetical investment of $100 in our common stock and the two above mentioned indices on June 30, 2016 and (ii) the full reinvestment of all dividends. The comparisons in the graph are not intended to be indicative of possible future performance of our common stock.
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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.
We derived the consolidated statement of operations for the fiscal years ended June 30, 2021, 2020 and 2019 and our consolidated balance sheet data as of June 30, 2021 and 2020 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, 2018 and June 30, 2017 and our consolidated balance sheet data as of June 30, 2019, June 30, 2018 and June 30, 2017 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.
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As of and for the Fiscal Years Ended June 30,
(Dollars in thousands, except for per share amounts)
2021
2020
2019
2018
2017
Consolidated statements of operations:
NET SALES
$
525,808
$
363,073
$
466,381
$
332,725
$
228,634
COST OF SALES
395,837
287,717
353,254
242,361
165,158
GROSS PROFIT
129,971
75,356
113,127
90,364
63,476
OPERATING EXPENSES:
Selling and marketing
13,021
15,981
17,670
13,011
9,380
General and administrative
37,049
25,557
27,706
19,773
20,474
Amortization of intangible assets
3,948
3,948
3,492
1,597
107
Goodwill and other intangible asset impairment (1)
-
56,437
31,000
—
—
Total operating expenses
54,018
101,923
79,868
34,381
29,961
OPERATING INCOME (LOSS)
75,953
(26,567
)
33,259
55,983
33,515
OTHER EXPENSE:
Interest expense
3,392
5,045
6,513
3,474
2,222
Loss on extinguishment of debt
733
—
—
—
—
INCOME (LOSS) BEFORE INCOME TAX EXPENSE
71,828
(31,612
)
26,746
52,509
31,293
INCOME TAX EXPENSE (BENEFIT)
15,658
(7,565
)
5,392
12,856
11,723
NET INCOME (LOSS)
$
56,170
$
(24,047
)
$
21,354
$
39,653
$
19,570
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF:
Basic
18,805,464
18,734,482
18,653,892
18,619,793
18,592,885
Diluted
18,951,521
18,734,482
18,768,207
18,714,531
18,620,708
Net income (loss) per common share:
Basic
$
2.99
$
(1.28
)
$
1.14
$
2.13
$
1.05
Diluted
2.96
(1.28
)
1.14
2.12
1.05
Consolidated balance sheet data:
Total assets
$
276,460
$
207,923
$
248,773
$
176,924
$
83,321
Total liabilities
168,672
159,053
176,457
124,402
71,560
Current portion of long-term debt
2,866
8,932
8,725
5,069
3,687
Long-term debt
90,277
99,666
105,016
70,087
30,790
Total debt
93,143
108,598
113,741
75,156
34,477
Total stockholders’ equity
107,788
48,870
72,316
52,522
11,761
Additional financial and other data (unaudited):
Unit sales volume:
MasterCraft
3,343
2,478
3,435
3,068
2,790
NauticStar (2)
1,387
1,191
1,831
1,687
—
Crest (2)
2,467
1,623
2,078
—
—
Consolidated unit sales volume
7,197
5,292
7,344
4,755
2,790
Net sales:
MasterCraft
$
363,274
$
246,455
$
311,830
$
266,319
$
228,634
NauticStar (2)
59,846
54,930
77,995
66,406
—
Crest (2)
102,688
61,688
76,556
—
—
Consolidated net sales
$
525,808
$
363,073
$
466,381
$
332,725
$
228,634
Net sales per unit:
MasterCraft
$
109
$
99
$
91
$
87
$
82
NauticStar (2)
43
46
43
39
—
Crest (2)
42
38
37
—
—
Consolidated net sales per unit
73
69
64
70
82
Gross margin
24.7
%
20.8
%
24.3
%
27.2
%
27.8
%
Net income margin
10.7
%
(6.6
%)
4.6
%
11.9
%
8.6
%
Adjusted EBITDA (3)
$
92,753
$
44,298
$
79,323
$
64,028
$
43,476
Adjusted Net Income (3)
$
62,811
$
25,077
$
53,016
$
40,440
$
24,335
Adjusted EBITDA margin (3)
17.6
%
12.2
%
17.0
%
19.2
%
19.0
%
(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 the Company acquired Crest, as described in Note 3 in Notes to Consolidated Financial Statements. During fiscal 2018, the Company acquired NauticStar.
( 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 (loss) for the years ended June 30, 2021, 2020 and 2019, see Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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