MasterCraft hits record sales, buys pontoon builder
US boat builder boosts annual sales and buys Crest Marine pontoons.
MCBC Holdings Inc., the parent company of the MasterCraft and NauticStar boat brands, achieved record sales for the year ending 30 June, 2018, and announced that it is adding to its stable of brands with the acquisition of a US pontoon builder.
The company recorded an increase in net sales for the fiscal year of 45.5% or US$104.1 million to US$332.7 million, up from US$228.6 million in the prior year. Gross profit also increased 42.4% or US$26.9 million to US$90.4 million compared to US$63.5 million for fiscal 2017.
The record figures were partly boosted by the inclusion of NauticStar which the company acquired in October last year. NauticStar contributed US$66.4 million of the increase in net sales while MasterCraft itself grew its sales by US$37.7 million, up 16.5%.
“We ended fiscal 2018 delivering record sales and net income for both the fourth quarter and fiscal year,” said Terry McNew, MCBC Holdings, Inc. president and CEO. “Continued growth in retail demand and our unwavering focus on operational efficiency drove results. Moreover, our strong cash management practices enabled us to significantly reduce our total debt.”
During the year, the company made debt repayments of US$39.3 million which represents almost half of the $80 million it borrowed for the purchase of NauticStar.
“We’re nearing our one-year anniversary of welcoming NauticStar to the MasterCraft family. In that time, we’ve leveraged our industry-leading strengths in operational excellence and financial management to further improve NauticStar’s output, quality and margin. Daily production volume is up and we’ve made strides in improving both safety and quality,” said McNew.
“Retail activity with regard to MasterCraft strengthened throughout fiscal 2018, resulting in improved dealer inventory turns and the largest June retail sales in MasterCraft’s history. This sets the stage for continuing healthy dealer inventory levels and activity in fiscal 2019.
“At NauticStar we have added nearly 20 dealer locations since the beginning of calendar year 2018 and are excited about driving growth and looking forward to working with our strong dealer network to maximise their opportunities over the coming year.”
MCBC Holdings said it expects net sales percentage growth for the coming year to be in the “low-teens”.
Following the release of the results, MCBC Holdings announced that it had signed a definitive agreement to buy US pontoon builder, Crest Marine, for US$80 million.
“We are very excited to welcome Crest to the MasterCraft Family,” said McNew. “Crest is a well-respected, expertly built and uniquely positioned brand. The company’s pontoon boats provide us with additional product diversity and presence in the attractive pontoon segment, as well as further establishes MasterCraft in the outboard propulsion category, two of the fastest growing areas within the broader boating industry.”