MCBC Holdings Inc. (NASDAQ:MCFT) Q2 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET


MCBC Holdings Inc. (NASDAQ:MCFT) Q2 2019 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Q2 Fiscal 2019 MasterCraft Boat Holdings Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, today's conference is being recorded.

I would now like to turn the call over to Mr. Tim Oxley, Chief Financial Officer. Sir, please begin.

Timothy M. Oxley

Thank you operator and welcome everyone. Today's call is being webcast live and will also be archived on our website for future listening. Joining me on today's call is Terry McNew, MasterCraft Boat Holdings President and Chief Executive Officer. Our agenda includes a strategic overview by Terry, followed by my analysis of the financials. And Terry will discuss our updated expectations for fiscal 2019, followed by the Q&A session.

Before we begin, we'd like to remind participants that the information contained in this call is current only as of today, February 7, 2019. The Company assumes no obligation to update any statements including forward-looking statements. Statements that are not historical facts are forward-looking statements and subject to the Safe Harbor disclaimer in today's press release.

Additionally, on this conference call, we would discuss non-GAAP measures that include or exclude special or one-time items not indicative of our ongoing operations. For each non-GAAP measure, we will also provide the most directly comparable GAAP measure in our fiscal 2019 second quarter earnings release, which includes a reconciliation of these non-GAAP measures to our GAAP results.

Before turning the call over to Terry, I'd like to remind listeners that there is a slide deck summarizing our financial results in the Investors section of our website.

With that, I will turn the call over to Terry.

Terry D. McNew

Thanks, Tim. I'd also like to thank everyone for joining us today. As you saw from today's press release, during our fiscal second quarter, we continued our track record of delivering record setting levels of net sales, adjusted EBITDA, and adjusted net income, reflecting the successful execution of our growth strategy. For the quarter, net sales increased 55% to $121.5 million, adjusted EBITDA increased 35.6% to $18.6 million and fully diluted adjusted net income per share grew 45.5% to $0.64 per share.

We couldn't be more pleased with the performance of our employees during the quarter across all of our brands. We would like to especially welcome and congratulate Crest employees whose performance during the quarter exceeded our already lofty expectations for the brand in their first quarter under our ownership. At MasterCraft, we continue to see strong momentum in the Performance Sports Boats segment from a retail perspective with internal registrations up significantly year-over-year, which is driving our wholesale demand.

Our dealer inventory turns are at optimal levels entering the boat show season and we're already seeing growth in orders from some of the early shows. While still early, we are encouraged by what we are seeing on the retail front at MasterCraft heading into