Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 25, 2023 | Jan. 01, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MASTERCRAFT BOAT HOLDINGS, INC. | ||
Entity Central Index Key | 0001638290 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | MCFT | ||
Security Exchange Name | NASDAQ | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 447,000,000 | ||
Entity Common Stock, Shares Outstanding | 17,202,716 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-37502 | ||
Entity Tax Identification Number | 06-1571747 | ||
Entity Address, Address Line One | 100 Cherokee Cove Drive | ||
Entity Address, City or Town | Vonore | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37885 | ||
City Area Code | 423 | ||
Local Phone Number | 884-2221 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Nashville, Tennessee | ||
Auditor Firm ID | 34 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the 2023 annual meeting of stockholders, which will be filed no later than 120 days after the close of the registrant’s fiscal year ended June 30, 2023 , are incorporated by reference into Part III of this report. | ||
Document Financial Statement Error Correction [Flag] | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 19,817 | $ 34,203 |
Held-to-maturity securities (Note 4) | 91,560 | 0 |
Accounts receivable, net of allowance of $122 and $214, respectively | 15,741 | 22,472 |
Inventories, net (Note 5) | 58,298 | 58,595 |
Prepaid expenses and other current assets | 10,083 | 7,232 |
Current assets associated with discontinued operations (Note 3) | 0 | 23,608 |
Total current assets | 195,499 | 146,110 |
Property, plant and equipment, net (Note 6) | 77,921 | 55,823 |
Goodwill (Note 7) | 28,493 | 28,493 |
Other intangible assets, net (Note 7) | 35,462 | 37,418 |
Deferred income taxes | 12,428 | 21,525 |
Deferred debt issuance costs, net | 304 | 406 |
Other long-term assets | 3,869 | 1,290 |
Non-current assets associated with discontinued operations (Note 3) | 0 | 5,987 |
Total assets | 353,976 | 297,052 |
CURRENT LIABILITIES: | ||
Accounts payable | 20,391 | 23,375 |
Income tax payable | 5,272 | 4,600 |
Accrued expenses and other current liabilities (Note 8) | 72,496 | 54,437 |
Current portion of long-term debt, net of unamortized debt issuance costs (Note 9) | 4,381 | 2,873 |
Current liabilities associated with discontinued operations (Note 3) | 0 | 7,887 |
Total current liabilities | 102,540 | 93,172 |
Long-term debt, net of unamortized debt issuance costs (Note 9) | 49,295 | 53,676 |
Unrecognized tax positions | 7,350 | 6,358 |
Other long-term liabilities | 2,702 | 198 |
Total liabilities | 161,887 | 153,404 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $.01 par value per share - authorized, 100,000,000 shares; issued and outstanding, 17,312,850 shares at June 30, 2023 and 18,061,437 shares at June 30, 2022 | 173 | 181 |
Additional paid-in capital | 75,976 | 96,584 |
Retained earnings | 115,820 | 46,883 |
MasterCraft Boat Holdings, Inc. stockholders' equity | 191,969 | 143,648 |
Noncontrolling interest | 120 | 0 |
Total equity | 192,089 | 143,648 |
Total liabilities and stockholders' equity | $ 353,976 | $ 297,052 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 122 | $ 214 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 17,312,850 | 18,061,437 |
Common stock, outstanding shares | 17,312,850 | 18,061,437 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 662,046 | $ 641,609 | $ 465,962 |
COST OF SALES | 492,333 | 473,419 | 340,831 |
GROSS PROFIT | 169,713 | 168,190 | 125,131 |
OPERATING EXPENSES: | |||
Selling and marketing | 13,808 | 12,869 | 11,576 |
General and administrative | 37,034 | 36,070 | 32,956 |
Amortization of other intangible assets | 1,956 | 1,956 | 1,956 |
Goodwill impairment | 0 | 1,100 | 0 |
Total operating expenses | 52,798 | 51,995 | 46,488 |
OPERATING INCOME | 116,915 | 116,195 | 78,643 |
OTHER INCOME (EXPENSE): | |||
Interest expense | (2,679) | (1,471) | (3,392) |
Interest income | 3,351 | 0 | 0 |
Loss on extinguish of debt | 0 | 0 | (733) |
INCOME BEFORE INCOME TAX EXPENSE | 117,587 | 114,724 | 74,518 |
INCOME TAX EXPENSE | 27,135 | 26,779 | 16,080 |
Net income from continuing operations | 90,452 | 87,945 | 58,438 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (Note 3) | (21,515) | (29,731) | (2,268) |
NET INCOME | $ 68,937 | $ 58,214 | $ 56,170 |
Basic | |||
Continuing operations | $ 5.13 | $ 4.77 | $ 3.11 |
Discontinued operations | (1.22) | (1.62) | (0.12) |
Net income | 3.91 | 3.15 | 2.99 |
Diluted | |||
Continuing operations | 5.09 | 4.72 | 3.08 |
Discontinued operations | (1.21) | (1.6) | (0.12) |
Net income | $ 3.88 | $ 3.12 | $ 2.96 |
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF: | |||
Weighted average shares - basic | 17,618,797 | 18,455,226 | 18,805,464 |
Diluted earnings per share | 17,765,117 | 18,636,512 | 18,951,521 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings/(Accumulated Deficit) | Noncontrolling Interest |
Balance, beginning at Jun. 30, 2020 | $ 48,870 | $ 189 | $ 116,182 | $ (67,501) | |
Balance, beginning (in shares) at Jun. 30, 2020 | 18,871,637 | ||||
Balance Beginning Total equity at Jun. 30, 2020 | 48,870 | ||||
Share-based compensation activity | 2,748 | 2,748 | |||
Share-based compensation activity (shares) | 85,082 | ||||
Repurchase and retirement of common stock (shares) | 0 | ||||
Net Income (Loss) | 56,170 | 56,170 | |||
Total Equity, Ending Balance at Jun. 30, 2021 | 107,788 | ||||
Balance, ending at Jun. 30, 2021 | 107,788 | $ 189 | 118,930 | (11,331) | |
Balance, ending (in shares) at Jun. 30, 2021 | 18,956,719 | ||||
Share-based compensation activity | 3,100 | $ 1 | 3,099 | ||
Share-based compensation activity (shares) | 79,879 | ||||
Repurchase and retirement of common stock | (25,454) | $ (9) | (25,445) | ||
Repurchase and retirement of common stock (shares) | (975,161) | ||||
Net Income (Loss) | 58,214 | 58,214 | |||
Total Equity, Ending Balance at Jun. 30, 2022 | 143,648 | ||||
Balance, ending at Jun. 30, 2022 | 143,648 | $ 181 | 96,584 | 46,883 | |
Balance, ending (in shares) at Jun. 30, 2022 | 18,061,437 | ||||
Share-based compensation activity | 2,453 | $ 1 | 2,452 | ||
Share-based compensation activity (shares) | 123,468 | ||||
Repurchase and retirement of common stock | (23,069) | $ (9) | (23,060) | ||
Repurchase and retirement of common stock (shares) | (872,055) | ||||
Capital contribution | 120 | $ 120 | |||
Net Income (Loss) | 68,937 | 68,937 | |||
Total Equity, Ending Balance at Jun. 30, 2023 | 192,089 | ||||
Balance, ending at Jun. 30, 2023 | $ 191,969 | $ 173 | $ 75,976 | $ 115,820 | $ 120 |
Balance, ending (in shares) at Jun. 30, 2023 | 17,312,850 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income (Loss) | $ 68,937 | $ 58,214 | $ 56,170 |
Loss from discontinued operations, net of tax | 21,515 | 29,731 | 2,268 |
Net income from continuing operations | 90,452 | 87,945 | 58,438 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 10,569 | 9,731 | 8,368 |
Share-based compensation | 3,656 | 3,510 | 2,932 |
Unrecognized tax benefits | 992 | 2,528 | 147 |
Deferred income taxes | 9,097 | (6,390) | 839 |
Goodwill impairment | 0 | 1,100 | 0 |
Changes in certain operating assets and liabilities | |||
Accounts receivable | 10,332 | (13,010) | (3,835) |
Inventories | 868 | (18,105) | (20,751) |
Prepaid expenses and other current assets | (2,851) | (2,208) | (1,358) |
Income taxes | 672 | 4,224 | 5,406 |
Accounts payable | (3,258) | 3,253 | 9,888 |
Accrued expenses and other current liabilities | 16,155 | 10,189 | 12,272 |
Other, net | 140 | (389) | 1,615 |
Net cash provided by operating activities of continuing operations | 136,824 | 82,378 | 73,961 |
Net cash used in operating activities of discontinued operations | (2,628) | (9,067) | (5,423) |
Net cash provided by operating activities | 134,196 | 73,311 | 68,538 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (30,323) | (12,296) | (25,219) |
Purchases of investments | (123,360) | 0 | 0 |
Maturities of investments | 32,750 | 0 | 0 |
Net cash used in investing activities of continuing operations | (120,933) | (12,296) | (25,219) |
Net cash used in investing activities of discontinued operations | (501) | (3,524) | (2,613) |
Net cash used in investing activities | (121,434) | (15,820) | (27,832) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Principal payments on long-term debt | (3,000) | (3,000) | (99,993) |
Repurchase and retirement of common stock | (22,949) | (25,454) | 0 |
Proceeds from issuance of long-term debt | 0 | 0 | 60,000 |
Borrowings on revolving credit facility | 0 | 12,000 | 56,228 |
Principal payments on revolving credit facility | (45,728) | (32,500) | |
Other, net | (1,199) | (358) | (1,508) |
Net cash used in financing activities of continuing operations | (27,148) | (62,540) | (17,773) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (14,386) | (5,049) | 22,933 |
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD | 34,203 | 39,252 | 16,319 |
CASH AND CASH EQUIVALENTS — END OF PERIOD | 19,817 | 34,203 | 39,252 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash payments for interest | 2,425 | 1,190 | 2,852 |
Cash payments for income taxes | 10,053 | 18,833 | 9,170 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Capital expenditures in accounts payable and accrued expenses | $ 980 | $ 706 | $ 265 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jun. 30, 2022 | Apr. 03, 2022 | Jan. 02, 2022 | Oct. 03, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net Income (Loss) | $ 22,676 | $ 22,510 | $ 19,683 | $ 4,068 | $ 11,491 | $ 20,935 | $ 15,402 | $ 10,386 | $ 68,937 | $ 58,214 | $ 56,170 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 1 . SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation — The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of MasterCraft Boat Holdings, Inc. (“Holdings”) and its wholly owned subsidiaries from the dates of their acquisitions. Holdings and its subsidiaries collectively are referred to herein as the “Company.” All significant intercompany accounts and transactions have been eliminated in consolidation. Holdings has no independent operations and no material assets, other than its wholly owned equity interests in its subsidiaries, as of June 30, 2023 and 2022, and no material liabilities. As of June 30, 2023 and 2022 , Holdings had no material contingencies, long-term obligations, or guarantees other than a guarantee of its subsidiaries’ long-term debt (see Note 9). Discontinued Operations — On September 2, 2022, the Company sold substantially all of the assets and liabilities of its NauticStar segment. The disposal represented the Company's exit from the saltwater and deck boat category, a strategic shift that has a significant effect on the Company's operations and financial results, and as such, qualifies for reporting as discontinued operations. The NauticStar segment results, for the periods presented, are reflected in our consolidated statements of operations and consolidated statements of cash flows as discontinued operations. Additionally, the related assets and liabilities associated with the discontinued operations are classified as discontinued operations in our consolidated balance sheet for the prior period presented (see Note 3). Unless otherwise indicated, the financial disclosures and related information provided herein relate to our continuing operations and we have recast prior period amounts to reflect discontinued operations. Reclassifications — Certain historical amounts have been reclassified in these consolidated financial statements and the accompanying notes herewith to conform to current presentation. Use of Estimates — The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and related disclosures. The Company bases these estimates on historical results and various other assumptions believed to be reasonable. The Company’s most significant financial statement estimates include impairment of goodwill and indefinite-lived intangible assets, warranty liability, unrecognized tax positions, inventory repurchase contingent obligations, and impairment of long-lived assets and intangible assets subject to amortization. Actual results could differ from those estimates. Revenue Recognition — The Company’s revenue is derived primarily from the sale of boats and trailers, marine parts, and accessories to its independent dealers. The Company recognizes revenue when obligations under the terms of a contract are satisfied and control over promised goods is transferred to a customer. For substantially all sales, this occurs when the product is released to the carrier responsible for transporting it to a customer. The Company typically receives payment from the floor plan financing providers within 5 business days of shipment. Revenue is measured as the amount of consideration it expects to receive in exchange for a product. The Company offers dealer incentives that include wholesale rebates, retail rebates and promotions, floor plan reimbursement or cash discounts, and other allowances that are recorded as reductions of revenues in Net sales in the consolidated statements of operations. The consideration recognized represents the amount specified in a contract with a customer, net of estimated incentives the Company reasonably expects to pay. The estimated liability and reduction in revenue for dealer incentives is recorded at the time of sale. Subsequent adjustments to incentive estimates are possible because actual results may differ from these estimates if conditions dictate the need to enhance or reduce sales promotion and incentive programs or if dealer achievement or other items vary from historical trends. Accrued dealer incentives are included in Accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Rebates and Discounts Dealers earn wholesale rebates based on purchase volume commitments and achievement of certain performance metrics. The Company estimates the amount of wholesale rebates based on historical achievement, forecasted volume, and assumptions regarding dealer behavior. Rebates that apply to boats already in dealer inventory are referred to as retail rebates. The Company estimates the amount of retail rebates based on historical data for specific boat models adjusted for forecasted sales volume, product mix, dealer and consumer behavior, and assumptions concerning market conditions. The Company also utilizes various programs whereby it offers cash discounts or agrees to reimburse its dealers for certain floor plan interest costs incurred by dealers for limited periods of time, generally ranging up to nine months . Shipping and Handling Costs Shipping and handling costs includes those costs incurred to transport product to customers and internal handling costs, which relate to activities to prepare goods for shipment. The Company has elected to account for shipping and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost. The Company includes shipping and handling costs, including costs billed to customers, in Cost of sales in the consolidated statements of operations. Contract Liabilities A contract liability is created when customers prepay for goods or services prior to the Company transferring control of those goods or services to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the point at which it receives pre-payment from the customer. Other Revenue Recognition Matters Dealers generally have no right to return unsold boats. Occasionally, the Company may accept returns in limited circumstances and at the Company’s discretion under its warranty policy. The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase commitment to floor financing providers, who are able to obtain such boats through foreclosure. The repurchase commitment is on an individual unit basis with a term from the date it is financed by the lending institution through the payment date by the dealer, generally not exceeding 30 months. The Company accounts for these arrangements as guarantees and recognizes a liability based on the estimated fair value of the repurchase obligation. The estimated fair value takes into account our estimate of the loss we will incur upon resale of any repurchases. The Company accrues the estimated fair value of this obligation based on the age of inventory currently under floor plan financing and estimated credit quality of dealers holding the inventory. Inputs used to estimate this fair value include significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, this liability is classified within Level 3 of the fair value hierarchy. The Company has excluded sales and other taxes assessed by a governmental authority in connection with revenue-producing activities from the determination of the transaction price for all contracts. The Company has not adjusted net sales for the effects of a significant financing component because the period between the transfer of the promised goods and the customer's payment is expected to be one year or less. Accounts Receivable — Accounts receivable represents amounts billed to customers under credit terms customary in its industry. The Company normally does not charge interest on its accounts receivable. The Company carries its accounts receivable at face value, net of an allowance for doubtful accounts, which the Company records on a regular basis based upon known bad debt risks and past loss history, customer payment practices and economic conditions. Actual collection experience may differ from the current estimate of net receivables. A change to the allowance for doubtful accounts may be required if a future event or other change in circumstances results in a change in the estimate of the ultimate collectability of a specific account. Amounts recorded as bad debt expense, write-offs, and recoveries were not material for the years ended June 30, 2023, 2022, and 2021 . Cash and Cash Equivalents — The Company considers all highly-liquid investments with an original maturity of three months or less to be cash and cash equivalents. The Company's cash and cash equivalents include cash deposits and money market funds. The Company’s cash deposits may at times exceed federally insured amounts. Held-to-Maturity Securities — The Company invests excess cash balances in short-term debt securities, such as government-sponsored securities, and/or corporate bonds. The Company accounts for its investments in debt securities in accordance with Accounting Standard Codification ("ASC") 320, Investments — Debt and Equity Securities . We classify our investments in debt securities based on the facts and circumstances present at the time of purchase of the securities. We subsequently reassess the appropriateness of that classification at each reporting date. As of June 30, 2023, all of our investments in debt securities were classified as held-to-maturity and are due to mature within one year (see Note 4). Inputs used to estimate the fair value of our investments include significant other observable inputs and, therefore, are classified within Level 2 of the fair value hierarchy . Concentrations of Credit and Business Risk — Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of trade receivables. Credit risk on trade receivables is mitigated as a result of the Company’s use of trade letters of credit, dealer floor plan financing arrangements, and the geographically diversified nature of the Company’s customer base. Supplier Concentrations The Company is dependent on the ability of its suppliers to provide products on a timely basis and on favorable pricing terms. The loss of certain principal suppliers or a significant reduction in product availability from principal suppliers could have a material adverse effect on the Company. Business risk insurance is in place to mitigate the business risk associated with sole suppliers for sudden disruptions such as those caused by natural disasters. The Company is dependent on third-party equipment manufacturers, distributors, and dealers for certain parts and materials utilized in the manufacturing process. During the years ended June 30, 2023, 2022, and 2021 , the Company purchased all engines for its MasterCraft performance sport boats under a supply agreement with a single vendor. Total purchases for all segments from this vendor were $ 47.6 million, $ 45.0 million, and $ 40.6 million for the years ended June 30, 2023, 2022, and 2021, respectively. During the years ended June 30, 2023, 2022, and 2021 , the Company purchased outboard engines for its Aviara boats and a majority of the engines for its Crest boats under a supply agreement with a single vendor. Total purchases from this vendor were $ 31.0 million, $ 34.0 million, and $ 22.7 million for the years ended June 30, 2023, 2022, and 2021 , respectively. Inventories — Inventories are valued at the lower of cost or net realizable value and are shown net of an inventory allowance in the consolidated balance sheet. Inventory cost includes material, labor, and manufacturing overhead and is determined based on the first-in, first-out (FIFO) method. Provisions are made as necessary to reduce inventory amounts to their net realizable value or to provide for obsolete inventory. Property, Plant, and Equipment — Property, plant, and equipment are recorded at historical cost less accumulated depreciation and are depreciated on a straight-line basis over the estimated useful lives. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that increase the asset’s useful life are capitalized. For the years ended June 30, 2023, 2022, and 2021, ranges of asset lives used for depreciation purposes are: Buildings and improvements 7 - 40 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years Goodwill and Other Intangible Assets — The Company does not amortize goodwill and other purchased intangible assets with indefinite lives, which are primarily related to trade names. The Company’s intangible assets with finite lives consist primarily of dealer networks and are carried at their estimated fair values at the time of acquisition, less accumulated amortization. Amortization is recognized on a straight-line basis over the estimated useful lives of the respective assets (see Note 7). Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. The Company has three reporting units, MasterCraft, Crest, and Aviara, which each relate to an operating segment as described in Note 14. As of June 30, 2023, all of the Company’s goodwill relates to the MasterCraft reporting unit and all of the Company’s other intangible assets relate to the MasterCraft and Crest reporting units. Goodwill Goodwill results from the excess of purchase price over the net identifiable assets of businesses acquired. The Company reviews goodwill for impairment annually, at its fiscal year-end annual impairment testing date, and whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. As part of the impairment tests, the Company may perform a qualitative, rather than quantitative, assessment to determine whether the fair values of its reporting units are “more likely than not” to be greater than their carrying values. In performing this qualitative analysis, the Company considers various factors, including the effect of market or industry changes and the reporting units' actual results compared to projected results. If the fair value of a reporting unit does not meet the "more likely than not" criteria discussed above, the impairment test for goodwill is a quantitative test. This test involves comparing the fair value of the reporting unit with its carrying value. If the fair value exceeds the carrying value, goodwill is not considered impaired. If the carrying amount exceeds the fair value then the goodwill is 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 goodwill allocated to that reporting unit. The Company calculates the fair value of its reporting units by considering both the income approach and market approach. The income approach calculates the fair value of the reporting unit using a discounted cash flow method. Internally forecasted future cash flows, which the Company believes reasonably approximate market participant assumptions, are discounted using a weighted average cost of capital (“Discount Rate”) developed for each reporting unit. The Discount Rate is developed using observable market inputs, as well as considering whether or not there is a measure of risk related to the specific reporting unit’s forecasted performance. Fair value under the market approach is determined for each unit by applying market multiples for comparable public companies to the unit’s financial results. The key judgements in these calculations are the assumptions used in determining the reporting unit’s forecasted future performance, including revenue growth and operating margins, as well as the perceived risk associated with those forecasts in determining the Discount Rate, along with selecting representative market multiples. The Company recognized a $ 1.1 million goodwill impairment charge within the Aviara segment during the year ended June 30, 2022 (see Note 7). Other Intangible Assets The Company's primary intangible assets other than goodwill are dealer networks and trade names acquired in business combinations. These intangible assets are initially valued using a methodology commensurate with the intended use of the asset. The dealer networks were valued using an income approach, which requires an estimate or forecast of the expected future cash flows from the dealer network through the application of the multi-period excess earnings approach. The fair value of trade names is measured using a relief-from-royalty approach, a variation of the income approach, which requires an estimate or forecast of the expected future cash flows. This method assumes the value of the trade name is the discounted cash flows of the amount that would be paid to third parties had the Company not owned the trade name and instead licensed the trade name from another company. The basis for future sales projections for these methods are internal revenue forecasts by reporting unit, which the Company believes represent reasonable market participant assumptions. The future cash flows are discounted using an applicable Discount Rate as well as any potential risk premium to reflect the inherent risk of holding a standalone intangible asset. The key judgements in these fair value calculations, as applicable, are: assumptions used in developing internal revenue growth and dealer expense forecasts, assumed dealer attrition rates, the selection of an appropriate royalty rate, as well as the perceived risk associated with those forecasts in determining the Discount Rate. The costs of amortizable intangible assets, including dealer networks, are recognized over their expected useful lives, approximately ten years for the dealer networks, using the straight-line method. Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. Intangible assets not subject to amortization are assessed for impairment at least annually and whenever events or changes in circumstances indicate that it is more likely than not that an asset may be impaired. As part of the annual test, the Company may perform a qualitative, rather than quantitative, assessment to determine whether each trade name intangible asset is “more likely than not” impaired. In performing this qualitative analysis, the Company considers various factors, including macroeconomic events, industry and market events and cost related events. If the “more likely than not” criteria is not met, the impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized for the amount by which the carrying value exceeds the fair value of the asset. The Company recognized $ 18.5 million in other intangible asset impairment charges related to the NauticStar reporting unit during the year ended June 30, 2022. These charges are included in the loss from discontinued operations (see Note 3). Long-Lived Assets Other than Intangible Assets — The Company assesses the potential for impairment of its long-lived assets if facts and circumstances, such as declines in sales, earnings, or cash flows or adverse changes in the business climate, suggest that they may be impaired. A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life will also trigger a review for impairment. The Company performs its assessment by comparing the book value of the asset groups to the estimated future undiscounted cash flows associated with the asset groups. If any impairment in the carrying value of its long-lived assets is indicated, the assets would be adjusted to an estimate of fair value. The Company recognized $ 5.3 million in long-lived asset impairment charges related to the NauticStar reporting unit during the year ended June 30, 2022. These charges are included in the loss from discontinued operations (see Note 3). Product Warranties — The Company offers warranties on the sale of certain products for periods of between one and five years . These warranties require us or our dealers to repair or replace defective products during the warranty period at no cost to the consumer. We estimate the costs that may be incurred under our basic limited warranty and record as a liability the amount of such costs at the time the product revenue is recognized. Factors that affect our warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. We periodically assess the adequacy of the recorded warranty liabilities and adjust the amounts as actual claims are determined or as changes in the obligations become reasonably estimable. We also adjust our liability for specific warranty matters when they become known, and the exposure can be estimated. Future warranty claims may differ from our estimate of the warranty liability, which could lead to changes in the Company’s warranty liability in future periods. Income Taxes — Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. The Company records its global tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Significant judgment is required in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. The realization of these assets is dependent on generating future taxable income. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. In determining the amount of current and deferred tax the Company takes into account the impact of uncertain tax positions and whether additional taxes, interest and penalties may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Company to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will have an impact on tax expense in the period that such a determination is made. Research and Development — Research and development expenditures are expensed as incurred. Research and development expense for the years ended June 30, 2023, 2022, and 2021 was $ 8.3 million , $ 7.2 million , and $ 5.8 million , respectively, and is included in Operating expenses in the consolidated statements of operations. Self-Insurance — The Company is self-insured for certain losses relating to product liability claims and employee medical claims. The Company has purchased stop-loss coverage in order to limit its exposure to any significant levels for these matters. Losses are accrued based on the Company’s estimates of the aggregate liability for self-insured claims incurred using certain actuarial assumptions followed in the insurance industry and the Company’s historical experience. Deferred Debt Issuance Costs — Certain costs incurred to obtain financing are capitalized and amortized over the term of the related debt using the effective interest method. For the year ended June 30, 2021, the Company incurred deferred financing costs of $ 0.6 million. For the years ended June 30, 2023, 2022, and 2021 , the Company recorded related amortization expense of $ 0.2 million, $ 0.2 million, and $ 0.6 million, respectively. Additionally, for the year ended June 30, 2021, the Company recognized a loss on early extinguishment of debt of $ 0.7 million related to the debt refinancing in fiscal 2021. See Note 9 – Long-Term Debt for a discussion on debt issuance costs. Share-Based Compensation — The Company records amounts for all share-based compensation, including grants of restricted stock awards and performance stock units over the vesting period in the consolidated statements of operations based on their fair values at the date of the grant. Forfeitures of share-based compensation, if any, are recognized as they occur. Share-based compensation costs are included in Selling and marketing and General and administrative expense in the consolidated statements of Operations. See Note 11 – Share-Based Compensation for a description of the Company's accounting for share-based compensation plans. Advertising — Advertising costs are expensed when the advertising first takes place. Advertising expense recognized during the years ended June 30, 2023, 2022, and 2021, was $ 5.7 million , $ 4.4 million , and $ 4.4 million , respectively, and is included in Selling and marketing expenses in the consolidated statements of operations. Fair Value Measurements — The Company measures certain of its financial assets and liabilities at fair value and utilizes the established framework for measuring fair value and disclosing information about fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the inputs that market participants would use in pricing an asset or liability. When measuring fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Company looks to market observable data for similar assets. The Company’s most significant financial asset or liability measured at fair value on a recurring basis is its inventory repurchase contingent obligation (see “Revenue Recognition - Other Revenue Recognition Matters” and Note 12). The non-recurring fair value measurement related to the impairment of goodwill recorded in fiscal 2022 is a level 3 measurement. Fair Value of Financial Instruments — The carrying amounts of the Company’s financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable and other liabilities, approximate their estimated fair values due to the relative short-term nature of the amounts. The carrying amount of debt approximates fair value due to variable interest rates at customary terms and rates the Company could obtain in current financing. Earnings Per Common Share — Basic earnings per common share reflects reported earnings divided by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share include the effect of dilutive stock options, restricted stock awards, and performance stock units unless inclusion would not be dilutive. Postretirement Benefits — The Company has a defined contribution plan and makes contributions including matching and discretionary contributions which are based on various percentages of compensation, and in some instances are based on the amount of the employees' contributions to the plans. The expense related to the defined contribution plan was $ 1.9 million, $ 1.7 million, and $ 1.4 million for the years ended June 30, 2023, 2022, and 2021 , respectively. New Accounting Pronouncements Issued And Adopted Income Taxes — In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to general principles in Income Taxes (Topic 740). It also clarifies and amends existing guidance to improve consistent application. The guidance is effective for fiscal years beginning after December 15, 2020. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. Reference Rate Reform — In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions, subject to meeting certain criteria, that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. An entity may apply ASU 2020-04 as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 2. REVENUE RECOGNITION The following tables present the Company’s net sales by major product category for each reportable segment. Year Ended June 30, 2023 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 452,903 $ 139,654 $ 52,143 $ 644,700 Parts 13,922 1,070 — 14,992 Other revenue 1,831 523 — 2,354 Total $ 468,656 $ 141,247 $ 52,143 $ 662,046 Year Ended June 30, 2022 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 450,734 $ 138,841 $ 34,723 $ 624,298 Parts 13,170 962 — 14,132 Other revenue 2,123 1,056 — 3,179 Total $ 466,027 $ 140,859 $ 34,723 $ 641,609 For Year Ended June 30, 2021 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 336,785 $ 101,208 $ 12,462 $ 450,455 Parts 12,934 1,091 — 14,025 Other revenue 1,093 389 — 1,482 Total $ 350,812 $ 102,688 $ 12,462 $ 465,962 For fiscal 2023 , the Company’s top ten dealers accounted for approximately 40 % of our net sales and one of our dealers individually accounted for 14.9 %, or approximately $ 98.6 million. For fiscal 2022 and 2021, the Company's top ten dealers accounted for approximately 30 % of our net sales and none of our dealers individually accounted for more than 10 % of our total net sales. On a consolidated basis, sales outside of North America accounted for 4.6 %, 5.5 %, and 5.1 % of the Company’s net sales for the years ended June 30, 2023, 2022, and 2021, respectively. The Company had no significant concentrations of sales to individual dealers or in countries outside of North America during the years ended June 30, 2023, 2022, and 2021. Contract Liabilities As of June 30, 2023 , the Company had $ 3.3 million of contract liabilities associated with customer deposits and services reported in Accrued expenses and other current liabilities and Other long-term liabilities on the consolidated balance sheet. The Company expects to recognize $ 1.5 million of this amount during the year ending June 30, 2024, and $ 1.8 million thereafter. As of June 30, 2022 , total contract liabilities were $ 1.4 million. During the year ended June 30, 2023, all of this amount was recognized as revenue. See Note 1 for a description of the Company’s significant revenue recognition policies and Note 14 for a description of the Company’s segments. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS On September 2, 2022, the Company sold its NauticStar business to certain affiliates of Iconic Marine Group, LLC ("Purchaser"). Pursuant to the terms of the purchase agreement, substantially all of the assets of NauticStar were sold, including, among other things, all of the issued and outstanding membership interests in its wholly-owned subsidiary NS Transport, LLC, all owned real property, equipment, inventory, intellectual property and accounts receivable, and the Purchaser assumed substantially all of the liabilities of NauticStar, including, among other things, product liability and warranty claims. In conjunction with the purchase agreement, the Company entered into a joint employer services agreement and a transition services agreement, which provided certain services to the Purchaser for various periods of time after the sale. Both agreements ended during the second quarter of fiscal 2023. These agreements did not a have a material impact on expenditures, earnings, nor cash flows during the year ended June 30, 2023. Further, the Company entered into the Second Amendment to the Credit Agreement as described further in Note 9 related to waivers of restrictions within the Credit Agreement, as amended, on the sale of assets. During the year ended June 30, 2023 , the Company recognized a $ 22.5 million loss on sale, subject to further changes based upon a customary working capital adjustment which is currently undergoing arbitration. The outcome of this matter is uncertain at this time. Furthermore, assets and liabilities retained, primarily related to certain claims, are subject to change, with activity after the date of sale being recorded as discontinued operations. The following table summarizes the results of discontinued operations for the following periods: Years Ended June 30, 2023 2022 2021 NET SALES $ 7,766 $ 66,253 $ 59,846 COST OF SALES 10,253 72,081 55,006 GROSS LOSS ( 2,487 ) ( 5,828 ) 4,840 OPERATING EXPENSES: Selling, general and administrative 2,859 6,645 5,538 Amortization of other intangible assets - 2,032 1,992 Impairments - 23,833 - Total operating expenses 2,859 32,510 7,530 OPERATING LOSS ( 5,346 ) ( 38,338 ) ( 2,690 ) Loss on sale of discontinued operations ( 22,487 ) — — LOSS BEFORE INCOME TAX BENEFIT ( 27,833 ) ( 38,338 ) ( 2,690 ) INCOME TAX BENEFIT 6,318 8,607 422 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX $ ( 21,515 ) $ ( 29,731 ) $ ( 2,268 ) The following table summarizes the assets and liabilities associated with discontinued operations: June 30, 2022 CURRENT ASSETS: Accounts receivable, net of allowance $ 3,130 Inventories, net 20,044 Other current assets 434 Total current assets classified as discontinued operations $ 23,608 NON-CURRENT ASSETS: Property, plant and equipment, net $ 5,924 Other long-term assets 63 Total non-current assets classified as discontinued operations $ 5,987 CURRENT LIABILITIES: Accounts payable $ 4,675 Accrued expenses and other current liabilities 3,212 Total current liabilities classified as discontinued operations $ 7,887 NauticStar Impairment Activity In the fourth quarter of fiscal year 2022, the NauticStar reporting unit recorded unplanned negative operating results despite ongoing efforts to improve sales volumes and yield more favorable margins, including the engagement of third-party consulting resources. These results, combined with the outlook for further supply chain disruptions, labor challenges, and higher costs from inflationary pressures, resulted in an impairment trigger in the fourth quarter related to the NauticStar reporting unit’s intangible and other long-lived assets. Based on our evaluation of projected future cash flows, we concluded that the trade name intangible asset of $ 8.0 million was fully impaired as of June 30, 2022. We then performed a probability-weighted undiscounted cash flow analysis for the asset group related to the NauticStar reporting unit that considered projected cash flows from continuing to operate the assets through their remaining estimated useful lives, a potential sale, and a potential exit of the business other than through a sale and concluded that the carrying value of the asset group was not recoverable. The fair value of the finite-lived dealer network intangible asset was estimated using these cash flows, resulting in a full impairment of $ 10.5 million. The fair value of the fixed assets, which primarily comprised of machinery and equipment, such as tooling, was estimated using liquidation values, resulting in an impairment charge of $ 5.3 million against the asset group’s fixed assets. As a result of our impairment analyses, we recorded total impairment charges of $ 23.8 million related to the NauticStar reporting unit’s intangible and fixed assets during the year ended June 30, 2022, which are included in Impairments in the results of discontinued operations above. |
HELD-TO-MATURITY SECURITIES
HELD-TO-MATURITY SECURITIES | 12 Months Ended |
Jun. 30, 2023 | |
Investments Disclosure [Abstract] | |
HELD-TO-MATURITY SECURITIES | 4. HELD-TO-MATURITY SECURITIES During the year ended June 30, 2023, we invested a portion of our cash and cash equivalents in short-term investments, which primarily consist of investment grade corporate bonds and U.S. treasury bills. We have the ability and intention to hold these investments until maturity and therefore have classified these investments as held-to-maturity and recorded them at amortized cost and presented them in “Held-to-maturity securities” on our consolidated balance sheet as of June 30, 2023. The income recognized for these investments is recorded within Interest income on the Consolidated Statements of Operations. As of June 30, 2022, there were no outstanding held-to-maturity investments. The following is a summary of investments as of June 30, 2023: Amortized Gross Gross Estimated Cost / Net Unrealized Unrealized Fair Carrying Amount Gains Losses Value Held-to-maturity securities: Fixed income securities: Corporate bonds $ 81,743 $ 1 $ ( 160 ) $ 81,584 U.S. treasury bills 9,817 31 ( 1 ) 9,847 Total held-to-maturity securities $ 91,560 $ 32 $ ( 161 ) $ 91,431 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES Inventories consisted of the following: June 30, June 30, 2023 2022 Raw materials and supplies $ 40,201 $ 45,021 Work in process 9,465 7,634 Finished goods 10,335 7,710 Obsolescence reserve ( 1,703 ) ( 1,770 ) Total inventories $ 58,298 $ 58,595 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | 6. PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment, net consisted of the following: June 30, June 30, 2023 2022 Land and improvements $ 10,456 $ 6,367 Buildings and improvements 46,759 35,379 Machinery and equipment 40,632 39,457 Furniture and fixtures 5,284 3,394 Construction in progress 10,180 6,315 Total property, plant, and equipment 113,311 90,912 Less accumulated depreciation ( 35,390 ) ( 35,089 ) Property, plant, and equipment — net $ 77,921 $ 55,823 Depreciation expense for the years ended June 30, 2023, 2022, and 2021 was $ 8.6 million, $ 7.7 million, and $ 6.4 million, respectively. Property, plant, and equipment, net increased mainly due to capital spending focused on tooling, capacity expansion, strategic initiatives, and information technology. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Other Intangible Asset Impairment See Note 1 for a discussion of the methods used to determine the fair value of goodwill and other intangible assets. In assessing the need for goodwill and intangible impairment, management utilizes a number of estimates, including operating results, business plans, economic projections, anticipated future cash flows, transactions and marketplace data. Accordingly, these fair value measurements fall in Level 3 of the fair value hierarchy. Fiscal 2022 Goodwill Impairment In fiscal 2022, the Company realigned its reportable segments. As a result of the change in segments, the Company reallocated the goodwill recorded in the MasterCraft reporting unit to the two separate MasterCraft and Aviara reporting units. In conjunction with the reallocation of goodwill, the Company tested goodwill at our MasterCraft and Aviara segments and determined the carrying value of the Aviara reporting unit to be in excess of the fair value. Consequently, a $ 1.1 million impairment charge was recognized for our Aviara reporting unit in fiscal 2022. Goodwill Goodwill reallocation and impairment charge for the year ended June 30, 2022, were as follows: MasterCraft Aviara Total Goodwill, net at June 30, 2021 $ 29,593 $ — $ 29,593 Goodwill reallocation ( 1,100 ) 1,100 — Impairment loss — ( 1,100 ) ( 1,100 ) Goodwill, net at June 30, 2022 $ 28,493 $ — $ 28,493 As of June 30, 2023, our annual impairment test date, the Company performed a qualitative assessment and identified no events or circumstances that indicated that there existed a more likely than not probability of impairment of goodwill within our MasterCraft segment. The following table presents the carrying amounts of goodwill as of June 30, 2023 and 2022 for each of the Company's reportable segments. Gross Amount Accumulated Impairment Losses Total MasterCraft $ 28,493 $ - $ 28,493 Crest 36,238 ( 36,238 ) - Aviara 1,100 ( 1,100 ) - Total $ 65,831 $ ( 37,338 ) $ 28,493 Other Intangible Assets The following table presents the carrying amount of Other intangible assets, net as of June 30, 2023 and 2022. June 30, June 30, 2023 2022 Gross Amount Accumulated Amortization / Impairment Other intangible assets, net Gross Amount Accumulated Amortization / Impairment Other intangible assets, net Amortized intangible assets Dealer networks $ 19,500 $ ( 10,050 ) $ 9,450 $ 19,500 $ ( 8,143 ) $ 11,357 Software 245 ( 233 ) 12 245 ( 184 ) 61 19,745 ( 10,283 ) 9,462 19,745 ( 8,327 ) 11,418 Unamortized intangible assets Trade names 33,000 ( 7,000 ) 26,000 33,000 ( 7,000 ) 26,000 Total other intangible assets $ 52,745 $ ( 17,283 ) $ 35,462 $ 52,745 $ ( 15,327 ) $ 37,418 As of June 30, 2023, our annual impairment test date, the Company performed a qualitative assessment and identified no events or circumstances that indicated that there existed a more likely than not probability of impairment of other intangible assets within our MasterCraft and Crest segments. Amortization expense related to Other intangible assets, net for each of the years ended June 30, 2023, 2022 and 2021 was $ 2.0 million. The following table presents estimated future amortization expense for the next five fiscal years and thereafter. Fiscal years ending June 30, 2024 $ 1,812 2025 1,800 2026 1,800 2027 1,800 2028 1,800 and thereafter 450 Total $ 9,462 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: June 30, June 30, 2023 2022 Warranty $ 31,780 $ 25,824 Dealer incentives 24,987 15,508 Compensation and related accruals 5,838 4,908 Self-insurance 1,586 1,171 Inventory repurchase contingent obligation 1,515 661 Contract liabilities 1,477 1,447 Liabilities retained associated with discontinued operations 690 — Other 4,623 4,918 Total accrued expenses and other current liabilities $ 72,496 $ 54,437 Accrued warranty liability activity was as follows: June 30, June 30, 2023 2022 Balance at the beginning of the period $ 25,824 $ 20,655 Provisions 15,302 12,520 Payments made ( 12,899 ) ( 9,057 ) Aggregate changes for preexisting warranties 3,553 1,706 Balance at the end of the period $ 31,780 $ 25,824 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 9. LONG-TERM DEBT Long-term debt outstanding was as follows: June 30, June 30, 2023 2022 Term loan $ 54,000 $ 57,000 Debt issuance costs on term loan ( 324 ) ( 451 ) Total debt 53,676 56,549 Less current portion of long-term debt 4,500 3,000 Less current portion of debt issuance costs on term loan ( 119 ) ( 127 ) Long-term debt, net of current portion $ 49,295 $ 53,676 On June 28, 2021, the Company entered into a credit agreement with a syndicate of certain financial institutions (the “Credit Agreement”). The Credit Agreement provides the Company with a $ 160.0 million senior secured credit facility, consisting of a $ 60.0 million term loan (the “Term Loan”) and a $ 100.0 million revolving credit facility (the “Revolving Credit Facility”). The Credit Agreement refinanced and replaced the Fourth Amended Credit Agreement, which had been in place prior to the Credit Agreement and provided the Company with a $ 190.0 million senior secured credit facility, consisting of a $ 75.0 million term loan, and $ 80.0 million term loan, and a $ 35.0 million revolving credit facility. The Credit Agreement is secured by a first priority security interest in substantially all of the Company’s assets. The Credit Agreement contains a number of covenants that, among other things, restrict the Company’s ability to, subject to specified exceptions, incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve; engage in businesses that are not in a related line of business; make loans, advances or guarantees; pay dividends or make other distributions; engage in transactions with affiliates; and make investments. The Company is also required to maintain a minimum fixed charge coverage ratio and a maximum net leverage ratio. As a result of entering into the Credit Agreement, the Company recognized a $ 0.7 million loss on early extinguishment of debt during the year ended June 30, 2021 related to unamortized debt issuance costs of the previously existing credit facility. On August 31, 2022, the Company entered into the Second Amendment to the Credit Agreement to obtain the necessary consents and waivers to the restrictions described above in the covenants of the Credit Agreement, as related to the sale of the NauticStar business on September 2, 2022, as discussed in Note 3. The Credit Agreement, as amended, bears interest, at the Company’s option, at either the prime rate plus an applicable margin ranging from 0.25 % to 1.00 % or at an adjusted benchmark rate plus an applicable margin ranging from 1.25 % to 2.00 %, in each case based on the Company’s net leverage ratio. The Company is also required to pay a commitment fee for any unused portion of the revolving credit facility ranging from 0.15 % to 0.30 % based on the Company’s net leverage ratio. As of June 30, 2023 and 2022 , the effective interest rate on borrowings outstanding was 6.50 % and 2.94 %, respectively. The Credit Agreement will mature and all remaining amounts outstanding thereunder will be due and payable on June 28, 2026. As of June 30, 2023, the Company was in compliance with its financial covenants under the Credit Agreement. Revolving Credit Facility In conjunction with the Credit Agreement entered into on June 28, 2021, the Company drew $ 33.7 million on its Revolving Credit Facility. Drawn amounts were used to repay a same amount of outstanding borrowings under the term loans under the Fourth Amended Credit Agreement. As of June 30, 2022 , the Company had repaid all outstanding borrowings under the Revolving Credit Facility and had remaining availability of $ 100.0 million. The Company has not utilized the revolver as of June 30, 2023, and still holds availability of $ 100.0 million. Maturities for the Term Loan subsequent to June 30, 2023 are as follows: 2024 $ 4,500 2025 4,500 2026 45,000 Total $ 54,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES The Company's sources of earnings before income taxes are primarily derived in the U.S. Earnings in jurisdictions outside of the U.S. were not significant during each of the years ended June 30, 2023, 2022 and 2021. For the years ended June 30, the components of the provision for income taxes for continuing operations are as follows: 2023 2022 2021 Current income tax expense: Federal $ 25,115 $ 22,563 $ 12,795 State 5,728 5,680 3,276 Total current tax expense $ 30,843 $ 28,243 $ 16,071 Deferred tax (benefit) expense: Federal $ ( 3,739 ) $ ( 1,044 ) $ 858 State 31 ( 413 ) ( 849 ) Foreign - ( 7 ) - Total deferred tax expense (benefit) ( 3,708 ) ( 1,464 ) 9 Income tax expense (benefit) $ 27,135 $ 26,779 $ 16,080 The difference between the statutory and the effective federal tax rate related to continuing operations for the periods below is attributable to the following: 2023 2022 2021 Statutory income tax rate 21.00 % 21.00 % 21.00 % State taxes (net of federal income tax benefit and valuation allowance) 2.20 % 1.76 % 1.21 % Tax credits ( 0.93 %) ( 0.66 %) ( 0.77 %) Change in valuation allowance — ( 0.03 %) 0.19 % Permanent differences ( 0.90 %) ( 0.69 %) ( 0.74 %) Uncertain tax positions 1.90 % 1.99 % 0.74 % Other ( 0.19 %) ( 0.03 %) ( 0.05 %) Effective income tax rate 23.08 % 23.34 % 21.58 % As of June 30, 2023, and 2022, a summary of the significant components of the Company’s deferred tax assets and liabilities was as follows: 2023 2022 Deferred tax assets: Intangible asset basis difference $ 3,224 $ 15,886 Warranty reserves 7,448 6,515 Accrued selling 2,177 390 Capitalized research costs 1,835 — Stock compensation 1,463 1,183 Unrecognized tax benefits 1,328 1,145 Inventory 504 1,142 Net operating loss 750 705 Other 1,463 943 Total deferred tax assets 20,192 27,909 Valuation allowance ( 2 ) ( 2 ) Total deferred tax assets, net of the valuation allowance 20,190 27,907 Deferred tax liabilities: Depreciation ( 6,201 ) ( 5,404 ) Other ( 1,561 ) ( 978 ) Total deferred tax liabilities ( 7,762 ) ( 6,382 ) Net deferred tax assets $ 12,428 $ 21,525 As of June 30, 2023 , the Company has state net operating loss (NOL) carryforwards of $ 16.7 million. Of this amount, $ 1.0 million expire in varying years ranging from June 30, 2025 to June 30, 2038, while the remainder can be carried forward indefinitely. Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued amounts for interest and penalties, is as follows: 2023 2022 Balance at July 1 $ 5,513 $ 3,304 Additions based on tax positions related to the current year 1,289 2,004 Additions for tax positions of prior years 30 296 Reductions for tax positions of prior years ( 600 ) ( 91 ) Balance at June 30 $ 6,232 $ 5,513 Of this total, $ 5.4 million and $ 4.7 million as of June 30, 2023 and 2022, respectively, represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. The total amount of interest and penalties recorded in the consolidated statements of operations for the years ended June 30, 2023, 2022, and 2021 was an expense of $ 0.2 million, an expense of $ 0.2 million, and a benefit of $ 0.2 million, respectively. The amounts accrued for interest and penalties at June 30, 2023 and 2022 were $ 1.1 million and $ 0.8 million, respectively, and is presented in unrecognized tax positions on the accompanying consolidated balance sheets. In general, it is the practice and intention of the Company to reinvest the earnings of its non-U.S. subsidiaries in those operations. As of June 30, 2023, the Company has not made a current provision for U.S. or additional foreign withholding taxes on investments in foreign subsidiaries that are indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. The Company and its subsidiaries are subject to U.S. federal income tax, as well as various other state income taxes and foreign income taxes. The federal income tax returns for the years ended June 30, 2020 through 2022 are subject to examination by the Internal Revenue Service. For state purposes, the statutes of limitation vary by jurisdiction. With few exceptions, the Company is no longer subject to examination by taxing authorities for years before June 30, 2020. The Company expects the total amount of unrecognized benefits to increase by approximately $ 0.8 million in the next twelve months. The Company records unrecognized tax benefits as liabilities and adjusts these liabilities when its judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION The 2015 Incentive Award Plan (“2015 Plan”) provides for the grant of stock options, including incentive stock options, and nonqualified stock options (“NSOs”), restricted stock, dividend equivalents, stock payments, restricted stock units, restricted stock awards (“RSAs”), deferred stock, deferred stock units, performance awards, stock appreciation rights, performance stock units (“PSUs”), and cash awards. As of June 30, 2023 , there were 1,045,380 shares available for issuance under the 2015 Plan. The following table presents the components of share-based compensation expense within continuing operations by award type for the years ended June 30, 2023, 2022, and 2021. 2023 2022 2021 Restricted stock awards $ 2,283 $ 1,684 $ 1,541 Performance stock units 1,373 1,826 1,391 Share-based compensation expense $ 3,656 $ 3,510 $ 2,932 The amount of compensation cost the Company recognizes over the requisite service period is based on the Company’s best estimate of the achievement of the performance conditions and can fluctuate over time. The following table presents the income tax benefit related to share-based compensation expense within continuing operations recognized by award type. 2023 2022 2021 Restricted stock awards $ 530 $ 383 $ 342 Performance stock units 319 416 309 Share-based compensation expense $ 849 $ 799 $ 651 Restricted Stock Awards All RSAs granted to non-employee directors vest over the remainder of that fiscal year, and all RSAs granted to employees vest over a period of between one to three years . Generally, non-vested RSAs are forfeited if employment is terminated prior to vesting. RSAs are granted at a per share fair value equal to the market value of the Company’s common stock on the grant date. The Company recognizes the cost of non-vested RSAs ratably over the requisite service period. The fair value of RSAs vested during the years ended June 30, 2023, 2022, and 2021 was $ 3.2 million, $ 2.4 million, and $ 1.6 million, respectively. A summary of RSA activity within continuing operations for these years is as follows: Number of Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Total Non-vested Restricted Stock Awards at June 30, 2020 106,894 $ 18.01 Granted 93,357 20.34 Vested ( 73,385 ) 18.54 Forfeited ( 8,673 ) 19.29 Total Non-vested Restricted Stock Awards at June 30, 2021 118,193 19.42 Granted 95,753 25.04 Vested ( 99,004 ) 22.01 Forfeited ( 8,534 ) 24.65 Total Non-vested Restricted Stock Awards at June 30, 2022 106,408 21.65 Granted 104,657 23.91 Vested ( 112,789 ) 22.10 Forfeited ( 6,369 ) 21.83 Total Non-vested Restricted Stock Awards at June 30, 2023 91,907 23.66 As of June 30, 2023 , there was $ 1.8 million of total unrecognized compensation expense related to non-vested RSAs. The Company expects this expense to be recognized over a weighted average period of 1.5 years. Performance Stock Units During the years ended June 30, 2023, 2022, and 2021, the Company granted performance shares to certain employees. The awards will be earned based on the Company’s achievement of certain performance criteria over a three-year performance period. The performance period for the awards commences on July 1 of the fiscal year in which they were granted and continues for a three-year period, ending on June 30 of the applicable year. The probability of achieving the performance criteria is assessed quarterly. Following the determination of the Company’s achievement with respect to the performance criteria, the amount of shares awarded will be subject to adjustment based on the application of a total shareholder return (“TSR”) modifier. The grant date fair value is determined based on both the assessment of the probability of the Company’s achieving the performance criteria and an estimate of the expected TSR modifier. The TSR modifier estimate is determined by using a Monte Carlo Simulation model, which considers the likelihood of all possible outcomes of long-term market performance. The amount of compensation cost the Company recognizes over the requisite service period is based on management’s best estimate of the achievement of the performance criteria. The fair value of PSUs vested during the years ended June 30, 2023, 2022, and 2021 was $ 1.7 million, $ 2.1 million, and $ 0.4 million, respectively. A summary of PSU activity within continuing operations for these years is as follows: Number of Performance Stock Units Weighted Average Grant Date Fair Value Total Non-vested Performance Stock Units at June 30, 2020 67,404 $ 20.02 Granted 123,096 22.11 Vested ( 14,627 ) 26.29 Forfeited ( 15,588 ) 20.25 Total Non-vested Performance Stock Units at June 30, 2021 160,285 21.03 Granted 53,842 28.73 Vested ( 99,860 ) 20.16 Forfeited ( 9,077 ) 26.71 Total Non-vested Performance Stock Units at June 30, 2022 105,190 25.30 Granted 76,567 26.08 Vested ( 56,790 ) 22.38 Forfeited ( 1,996 ) 26.15 Total Non-vested Performance Stock Units at June 30, 2023 122,971 27.12 As of June 30, 2023 , there was $ 1.5 million of total unrecognized compensation expense related to non-vested PSUs. The Company expects this expense to be recognized over a weighted average period of 1.9 years. Nonqualified Stock Options In July 2015, the Company granted 137,786 NSOs to certain employees. As of July 2019, all outstanding options were fully vested and exercisable. All outstanding options as of June 30, 2022, were exercised during the year ended June 30, 2023. A summary of NSO activity within continuing operations for these years is as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (Yrs.) Value Outstanding at June 30, 2020 32,392 $ 10.70 5.1 $ 270 Granted — Exercised ( 7,952 ) 10.70 Forfeited or expired — Outstanding at June 30, 2021 24,440 10.70 4.1 381 Granted — Exercised ( 9,294 ) 10.70 Forfeited or expired — Outstanding at June 30, 2022 15,146 10.70 3.1 157 Granted — Exercised ( 15,146 ) 10.70 Forfeited or expired — Outstanding at June 30, 2023 — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Repurchase Obligations Under certain conditions, the Company is obligated to repurchase new inventory repossessed from dealerships by financial institutions that provide credit to the Company’s dealers. See Note 1 for more information regarding the terms and accounting policies related to this obligation. The Company's obligations under such floor plan agreements are subject to various calculations and caps based on amounts currently owed by dealers to these financial institutions and, based on such terms, totaled approximately $ 53.1 million and $ 46.0 million as of June 30, 2023 and June 30, 2022, respectively. We incurred no material impact from repurchase events during the years ended June 30, 2023, 2022, and 2021 . The Company recorded a repurchase liability of $ 1.6 million and $ 0.7 million as of June 30, 2023 and 2022, respectively. Purchase Commitments The Company is engaged in an exclusive contract with a single vendor to provide engines for its MasterCraft performance sport boats. This contract makes this vendor the only supplier to MasterCraft for in-board engines and expires June 30, 2025 . The Company is obligated to purchase a minimum number of engines for each model year under this contract. The Company could also be required to pay a penalty to this vendor in order to maintain exclusivity if annual purchases under the agreement fail to meet a certain volume threshold. We incurred no penalties related to purchase commitments during the years ended June 30, 2023, 2022, and 2021. Operating Leases The Company has lease agreements for certain personal and real property. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. Our lease agreements do not include any significant renewal options. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is a lease at lease inception. 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. Because the rates implicit in the Company's lease contracts are not readily determinable, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The operating lease ROU asset also includes any initial direct costs and lease payments made prior to lease commencement and excludes lease incentives incurred. 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. Operating lease expense is recognized on a straight-line basis over the lease term. 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. The lease-related balances as of June 30, 2023 and 2022, and activity and costs during the periods presented are not material. Legal Proceedings The Company is subject to various litigation, claims and proceedings, which have arisen in the ordinary course of business. The Company accrues for litigation, claims and proceedings when a liability is both probable and the amount can be reasonably estimated. As of June 30, 2023 , the Company’s accruals for litigation matters are not material. While these matters are subject to inherent uncertainties, management believes that current litigation, claims and proceedings, individually and in aggregate, and after considering expected insurance reimbursements, are not likely to have a material adverse impact on the Company’s financial position, results of operations or cash flows. |
EARNINGS PER SHARE AND COMMON S
EARNINGS PER SHARE AND COMMON STOCK | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE AND COMMON STOCK | 13. EARNINGS PER SHARE AND COMMON STOCK The factors used in the earnings per share computation are as follows: 2023 2022 2021 Net income from continuing operations $ 90,452 $ 87,945 $ 58,438 Loss from discontinued operations, net of tax ( 21,515 ) ( 29,731 ) ( 2,268 ) Net income $ 68,937 $ 58,214 $ 56,170 Weighted average shares — basic 17,618,797 18,455,226 18,805,464 Dilutive effect of assumed exercises of stock options 5,270 11,110 14,814 Dilutive effect of assumed restricted share awards/units 141,050 170,176 131,243 Weighted average outstanding shares — diluted 17,765,117 18,636,512 18,951,521 Basic net income (loss) per share Continuing operations $ 5.13 $ 4.77 $ 3.11 Discontinued operations ( 1.22 ) ( 1.62 ) ( 0.12 ) Net income $ 3.91 $ 3.15 $ 2.99 Diluted net income (loss) per share Continuing operations $ 5.09 $ 4.72 $ 3.08 Discontinued operations ( 1.21 ) ( 1.60 ) ( 0.12 ) Net income $ 3.88 $ 3.12 $ 2.96 For the years ended June 30, 2023, 2022, and 2021, an immaterial number of shares were excluded from the computation of diluted earnings per share as the effect would have been anti-dilutive. Stock Repurchase Program On June 24, 2021, the board of directors of the Company authorized a stock repurchase program that allows for the repurchase of up to $ 50.0 million of the Company’s common stock during the three-year period ending June 24, 2024. During the fiscal years ended June 30, 2023 and 2022 , the Company repurchased 872,055 shares and 975,161 shares of common stock for $ 22.9 million and $ 25.5 million in cash, including related fees and expenses. We did no t repurchase any common stock during fiscal 2021. As of June 30, 2023 , $ 1.6 million remained available under the current authorization. On July 24, 2023, the board of directors of the Company authorized a new share repurchase program under which the Company may repurchase up to $ 50 million of its outstanding shares of common stock. The new authorization will become effective upon the expiration of the Company's existing $ 50 million share repurchase authorization. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 14. SEGMENT INFORMATION Reportable Segments Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the CODM in making decisions on how to allocate resources and assess performance. For the year ended June 30, 2023, the Company’s CODM regularly assessed the operating performance of the Company’s boat brands under three operating and reportable segments: • The MasterCraft segment produces boats at its Vonore, Tennessee facility. These are premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. • The Crest segment produces pontoon boats at its Owosso, Michigan facility. Crest’s boats are primarily used for general recreational boating. • The Aviara segment produces luxury day boats at its Merritt Island, Florida facility. Aviara boats are primarily used for general recreational boating. Each segment distributes its products through its own independent dealer network. Each segment also has its own management structure which is responsible for the operations of the segment and is directly accountable to the CODM for the operating performance of the segment, which is regularly assessed by the CODM who allocates resources based on that performance. The Company files a consolidated income tax return and does not allocate income taxes and other corporate-level expenses, including interest, to operating segments. All material corporate costs are included in the MasterCraft segment. Selected financial information for the Company’s reportable segments was as follows: For the Year Ended June 30, 2023 MasterCraft Crest Aviara Consolidated Net sales $ 468,656 $ 141,247 $ 52,143 $ 662,046 Operating income (loss) 101,324 20,106 ( 4,515 ) 116,915 Depreciation and amortization 5,555 2,841 2,173 10,569 Purchases of property, plant and equipment 17,414 7,149 5,760 30,323 For the Year Ended June 30, 2022 MasterCraft Crest Aviara Consolidated Net sales $ 466,027 $ 140,859 $ 34,723 $ 641,609 Operating income (loss) 105,341 19,892 ( 9,038 ) 116,195 Depreciation and amortization 4,968 2,665 2,098 9,731 Goodwill impairment — — 1,100 1,100 Purchases of property, plant and equipment 6,642 4,193 1,461 12,296 For the Year Ended June 30, 2021 MasterCraft Crest Aviara Consolidated Net sales $ 350,812 $ 102,688 $ 12,462 $ 465,962 Operating income (loss) 73,354 13,605 ( 8,316 ) 78,643 Depreciation and amortization 4,479 2,503 1,386 8,368 Purchases of property, plant and equipment 5,273 892 19,054 25,219 The following table presents total assets for the Company’s reportable segments as of June 30, 2023, and 2022. June 30, 2023 June 30, 2022 Assets: MasterCraft $ 259,201 $ 178,386 Crest 53,435 53,956 Aviara 41,340 35,115 Discontinued operations — 29,595 Total assets $ 353,976 $ 297,052 |
QUARTERLY FINANCIAL REPORTING
QUARTERLY FINANCIAL REPORTING | 12 Months Ended |
Jun. 30, 2023 | |
Statement of Financial Position [Abstract] | |
QUARTERLY FINANCIAL REPORTING | 15. QUARTERLY FINANCIAL REPORTING (UNAUDITED) The Company maintains its financial records on the basis of a fiscal year ending on June 30, with the fiscal quarters equaling thirteen weeks. The following tables set forth summary quarterly financial information for the years ended June 30, 2023 and 2022, and reflects the retrospective presentation of discontinued operations as discussed in Note 3. Due to the effects of rounding, the quarterly results presented may not sum to the fiscal year results presented. Fiscal Quarter Ended Fiscal Year Ended June 30, April 2, January 1, October 2, June 30, 2023 2023 2023 2022 2023 Net sales $ 166,566 $ 166,776 $ 159,188 $ 169,516 $ 662,046 Gross profit 42,915 42,598 38,227 45,973 169,713 Operating income 29,206 29,026 26,461 32,222 116,915 Net income from continuing operations 23,052 22,782 19,983 24,635 90,452 Loss from discontinued operations ( 376 ) ( 272 ) ( 300 ) ( 20,567 ) ( 21,515 ) Net income $ 22,676 $ 22,510 $ 19,683 $ 4,068 $ 68,937 Basic net income (loss) per common share Continuing operations $ 1.33 $ 1.30 $ 1.13 $ 1.38 $ 5.13 Discontinued operations ( 0.02 ) ( 0.02 ) ( 0.02 ) ( 1.15 ) ( 1.22 ) Net income $ 1.31 $ 1.28 $ 1.11 $ 0.23 $ 3.91 Diluted net income (loss) per common share Continuing operations $ 1.32 $ 1.28 $ 1.12 $ 1.37 $ 5.09 Discontinued operations ( 0.02 ) ( 0.01 ) ( 0.01 ) ( 1.14 ) ( 1.21 ) Net income $ 1.30 $ 1.27 $ 1.11 $ 0.23 $ 3.88 Weighted average shares used for computation of: Basic earnings per common share 17,299,562 17,559,920 17,669,645 17,946,061 17,618,797 Diluted earnings per common share 17,505,504 17,748,910 17,774,329 18,031,725 17,765,117 Fiscal Quarter Ended Fiscal Year Ended June 30, April 3, January 2, October 3, June 30, 2022 2022 2022 2021 2022 Net sales $ 197,216 $ 169,343 $ 144,400 $ 130,650 $ 641,609 Gross profit 57,173 44,074 36,361 30,582 168,190 Operating income 44,592 31,604 23,619 16,380 116,195 Net income from continuing operations 33,548 24,306 17,859 12,232 87,945 Loss from discontinued operations ( 22,057 ) ( 3,371 ) ( 2,457 ) ( 1,846 ) ( 29,731 ) Net income $ 11,491 $ 20,935 $ 15,402 $ 10,386 $ 58,214 Basic net income (loss) per common share Continuing operations $ 1.87 $ 1.33 $ 0.95 $ 0.65 $ 4.77 Discontinued operations ( 1.23 ) ( 0.19 ) ( 0.13 ) ( 0.10 ) ( 1.62 ) Net income $ 0.64 $ 1.14 $ 0.82 $ 0.55 $ 3.15 Diluted net income (loss) per common share Continuing operations $ 1.85 $ 1.31 $ 0.94 $ 0.65 $ 4.72 Discontinued operations ( 1.22 ) ( 0.18 ) ( 0.13 ) ( 0.10 ) ( 1.60 ) Net income $ 0.63 $ 1.13 $ 0.81 $ 0.55 $ 3.12 Weighted average shares used for computation of: Basic earnings per common share 17,952,267 18,295,949 18,722,386 18,850,301 18,455,226 Diluted earnings per common share 18,155,449 18,487,346 18,899,136 19,004,119 18,636,512 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation — The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of MasterCraft Boat Holdings, Inc. (“Holdings”) and its wholly owned subsidiaries from the dates of their acquisitions. Holdings and its subsidiaries collectively are referred to herein as the “Company.” All significant intercompany accounts and transactions have been eliminated in consolidation. Holdings has no independent operations and no material assets, other than its wholly owned equity interests in its subsidiaries, as of June 30, 2023 and 2022, and no material liabilities. As of June 30, 2023 and 2022 , Holdings had no material contingencies, long-term obligations, or guarantees other than a guarantee of its subsidiaries’ long-term debt (see Note 9). |
Discontinued Operations | Discontinued Operations — On September 2, 2022, the Company sold substantially all of the assets and liabilities of its NauticStar segment. The disposal represented the Company's exit from the saltwater and deck boat category, a strategic shift that has a significant effect on the Company's operations and financial results, and as such, qualifies for reporting as discontinued operations. The NauticStar segment results, for the periods presented, are reflected in our consolidated statements of operations and consolidated statements of cash flows as discontinued operations. Additionally, the related assets and liabilities associated with the discontinued operations are classified as discontinued operations in our consolidated balance sheet for the prior period presented (see Note 3). Unless otherwise indicated, the financial disclosures and related information provided herein relate to our continuing operations and we have recast prior period amounts to reflect discontinued operations. |
Reclassifications | Reclassifications — Certain historical amounts have been reclassified in these consolidated financial statements and the accompanying notes herewith to conform to current presentation. |
Use of Estimates | Use of Estimates — The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and related disclosures. The Company bases these estimates on historical results and various other assumptions believed to be reasonable. The Company’s most significant financial statement estimates include impairment of goodwill and indefinite-lived intangible assets, warranty liability, unrecognized tax positions, inventory repurchase contingent obligations, and impairment of long-lived assets and intangible assets subject to amortization. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition — The Company’s revenue is derived primarily from the sale of boats and trailers, marine parts, and accessories to its independent dealers. The Company recognizes revenue when obligations under the terms of a contract are satisfied and control over promised goods is transferred to a customer. For substantially all sales, this occurs when the product is released to the carrier responsible for transporting it to a customer. The Company typically receives payment from the floor plan financing providers within 5 business days of shipment. Revenue is measured as the amount of consideration it expects to receive in exchange for a product. The Company offers dealer incentives that include wholesale rebates, retail rebates and promotions, floor plan reimbursement or cash discounts, and other allowances that are recorded as reductions of revenues in Net sales in the consolidated statements of operations. The consideration recognized represents the amount specified in a contract with a customer, net of estimated incentives the Company reasonably expects to pay. The estimated liability and reduction in revenue for dealer incentives is recorded at the time of sale. Subsequent adjustments to incentive estimates are possible because actual results may differ from these estimates if conditions dictate the need to enhance or reduce sales promotion and incentive programs or if dealer achievement or other items vary from historical trends. Accrued dealer incentives are included in Accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Rebates and Discounts Dealers earn wholesale rebates based on purchase volume commitments and achievement of certain performance metrics. The Company estimates the amount of wholesale rebates based on historical achievement, forecasted volume, and assumptions regarding dealer behavior. Rebates that apply to boats already in dealer inventory are referred to as retail rebates. The Company estimates the amount of retail rebates based on historical data for specific boat models adjusted for forecasted sales volume, product mix, dealer and consumer behavior, and assumptions concerning market conditions. The Company also utilizes various programs whereby it offers cash discounts or agrees to reimburse its dealers for certain floor plan interest costs incurred by dealers for limited periods of time, generally ranging up to nine months . Shipping and Handling Costs Shipping and handling costs includes those costs incurred to transport product to customers and internal handling costs, which relate to activities to prepare goods for shipment. The Company has elected to account for shipping and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost. The Company includes shipping and handling costs, including costs billed to customers, in Cost of sales in the consolidated statements of operations. Contract Liabilities A contract liability is created when customers prepay for goods or services prior to the Company transferring control of those goods or services to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the point at which it receives pre-payment from the customer. Other Revenue Recognition Matters Dealers generally have no right to return unsold boats. Occasionally, the Company may accept returns in limited circumstances and at the Company’s discretion under its warranty policy. The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase commitment to floor financing providers, who are able to obtain such boats through foreclosure. The repurchase commitment is on an individual unit basis with a term from the date it is financed by the lending institution through the payment date by the dealer, generally not exceeding 30 months. The Company accounts for these arrangements as guarantees and recognizes a liability based on the estimated fair value of the repurchase obligation. The estimated fair value takes into account our estimate of the loss we will incur upon resale of any repurchases. The Company accrues the estimated fair value of this obligation based on the age of inventory currently under floor plan financing and estimated credit quality of dealers holding the inventory. Inputs used to estimate this fair value include significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, this liability is classified within Level 3 of the fair value hierarchy. The Company has excluded sales and other taxes assessed by a governmental authority in connection with revenue-producing activities from the determination of the transaction price for all contracts. The Company has not adjusted net sales for the effects of a significant financing component because the period between the transfer of the promised goods and the customer's payment is expected to be one year or less. |
Accounts Receivable | Accounts Receivable — Accounts receivable represents amounts billed to customers under credit terms customary in its industry. The Company normally does not charge interest on its accounts receivable. The Company carries its accounts receivable at face value, net of an allowance for doubtful accounts, which the Company records on a regular basis based upon known bad debt risks and past loss history, customer payment practices and economic conditions. Actual collection experience may differ from the current estimate of net receivables. A change to the allowance for doubtful accounts may be required if a future event or other change in circumstances results in a change in the estimate of the ultimate collectability of a specific account. Amounts recorded as bad debt expense, write-offs, and recoveries were not material for the years ended June 30, 2023, 2022, and 2021 . |
Cash and Cash Equivalents | Cash and Cash Equivalents — The Company considers all highly-liquid investments with an original maturity of three months or less to be cash and cash equivalents. The Company's cash and cash equivalents include cash deposits and money market funds. The Company’s cash deposits may at times exceed federally insured amounts. |
Held-to-Maturity Securities | Held-to-Maturity Securities — The Company invests excess cash balances in short-term debt securities, such as government-sponsored securities, and/or corporate bonds. The Company accounts for its investments in debt securities in accordance with Accounting Standard Codification ("ASC") 320, Investments — Debt and Equity Securities . We classify our investments in debt securities based on the facts and circumstances present at the time of purchase of the securities. We subsequently reassess the appropriateness of that classification at each reporting date. As of June 30, 2023, all of our investments in debt securities were classified as held-to-maturity and are due to mature within one year (see Note 4). Inputs used to estimate the fair value of our investments include significant other observable inputs and, therefore, are classified within Level 2 of the fair value hierarchy |
Concentrations of Credit and Business Risk | Concentrations of Credit and Business Risk — Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of trade receivables. Credit risk on trade receivables is mitigated as a result of the Company’s use of trade letters of credit, dealer floor plan financing arrangements, and the geographically diversified nature of the Company’s customer base. Supplier Concentrations The Company is dependent on the ability of its suppliers to provide products on a timely basis and on favorable pricing terms. The loss of certain principal suppliers or a significant reduction in product availability from principal suppliers could have a material adverse effect on the Company. Business risk insurance is in place to mitigate the business risk associated with sole suppliers for sudden disruptions such as those caused by natural disasters. The Company is dependent on third-party equipment manufacturers, distributors, and dealers for certain parts and materials utilized in the manufacturing process. During the years ended June 30, 2023, 2022, and 2021 , the Company purchased all engines for its MasterCraft performance sport boats under a supply agreement with a single vendor. Total purchases for all segments from this vendor were $ 47.6 million, $ 45.0 million, and $ 40.6 million for the years ended June 30, 2023, 2022, and 2021, respectively. During the years ended June 30, 2023, 2022, and 2021 , the Company purchased outboard engines for its Aviara boats and a majority of the engines for its Crest boats under a supply agreement with a single vendor. Total purchases from this vendor were $ 31.0 million, $ 34.0 million, and $ 22.7 million for the years ended June 30, 2023, 2022, and 2021 , respectively. |
Inventories | Inventories — Inventories are valued at the lower of cost or net realizable value and are shown net of an inventory allowance in the consolidated balance sheet. Inventory cost includes material, labor, and manufacturing overhead and is determined based on the first-in, first-out (FIFO) method. Provisions are made as necessary to reduce inventory amounts to their net realizable value or to provide for obsolete inventory. |
Property, Plant, and Equipment | Property, Plant, and Equipment — Property, plant, and equipment are recorded at historical cost less accumulated depreciation and are depreciated on a straight-line basis over the estimated useful lives. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that increase the asset’s useful life are capitalized. For the years ended June 30, 2023, 2022, and 2021, ranges of asset lives used for depreciation purposes are: Buildings and improvements 7 - 40 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets — The Company does not amortize goodwill and other purchased intangible assets with indefinite lives, which are primarily related to trade names. The Company’s intangible assets with finite lives consist primarily of dealer networks and are carried at their estimated fair values at the time of acquisition, less accumulated amortization. Amortization is recognized on a straight-line basis over the estimated useful lives of the respective assets (see Note 7). Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. The Company has three reporting units, MasterCraft, Crest, and Aviara, which each relate to an operating segment as described in Note 14. As of June 30, 2023, all of the Company’s goodwill relates to the MasterCraft reporting unit and all of the Company’s other intangible assets relate to the MasterCraft and Crest reporting units. Goodwill Goodwill results from the excess of purchase price over the net identifiable assets of businesses acquired. The Company reviews goodwill for impairment annually, at its fiscal year-end annual impairment testing date, and whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. As part of the impairment tests, the Company may perform a qualitative, rather than quantitative, assessment to determine whether the fair values of its reporting units are “more likely than not” to be greater than their carrying values. In performing this qualitative analysis, the Company considers various factors, including the effect of market or industry changes and the reporting units' actual results compared to projected results. If the fair value of a reporting unit does not meet the "more likely than not" criteria discussed above, the impairment test for goodwill is a quantitative test. This test involves comparing the fair value of the reporting unit with its carrying value. If the fair value exceeds the carrying value, goodwill is not considered impaired. If the carrying amount exceeds the fair value then the goodwill is 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 goodwill allocated to that reporting unit. The Company calculates the fair value of its reporting units by considering both the income approach and market approach. The income approach calculates the fair value of the reporting unit using a discounted cash flow method. Internally forecasted future cash flows, which the Company believes reasonably approximate market participant assumptions, are discounted using a weighted average cost of capital (“Discount Rate”) developed for each reporting unit. The Discount Rate is developed using observable market inputs, as well as considering whether or not there is a measure of risk related to the specific reporting unit’s forecasted performance. Fair value under the market approach is determined for each unit by applying market multiples for comparable public companies to the unit’s financial results. The key judgements in these calculations are the assumptions used in determining the reporting unit’s forecasted future performance, including revenue growth and operating margins, as well as the perceived risk associated with those forecasts in determining the Discount Rate, along with selecting representative market multiples. The Company recognized a $ 1.1 million goodwill impairment charge within the Aviara segment during the year ended June 30, 2022 (see Note 7). Other Intangible Assets The Company's primary intangible assets other than goodwill are dealer networks and trade names acquired in business combinations. These intangible assets are initially valued using a methodology commensurate with the intended use of the asset. The dealer networks were valued using an income approach, which requires an estimate or forecast of the expected future cash flows from the dealer network through the application of the multi-period excess earnings approach. The fair value of trade names is measured using a relief-from-royalty approach, a variation of the income approach, which requires an estimate or forecast of the expected future cash flows. This method assumes the value of the trade name is the discounted cash flows of the amount that would be paid to third parties had the Company not owned the trade name and instead licensed the trade name from another company. The basis for future sales projections for these methods are internal revenue forecasts by reporting unit, which the Company believes represent reasonable market participant assumptions. The future cash flows are discounted using an applicable Discount Rate as well as any potential risk premium to reflect the inherent risk of holding a standalone intangible asset. The key judgements in these fair value calculations, as applicable, are: assumptions used in developing internal revenue growth and dealer expense forecasts, assumed dealer attrition rates, the selection of an appropriate royalty rate, as well as the perceived risk associated with those forecasts in determining the Discount Rate. The costs of amortizable intangible assets, including dealer networks, are recognized over their expected useful lives, approximately ten years for the dealer networks, using the straight-line method. Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. Intangible assets not subject to amortization are assessed for impairment at least annually and whenever events or changes in circumstances indicate that it is more likely than not that an asset may be impaired. As part of the annual test, the Company may perform a qualitative, rather than quantitative, assessment to determine whether each trade name intangible asset is “more likely than not” impaired. In performing this qualitative analysis, the Company considers various factors, including macroeconomic events, industry and market events and cost related events. If the “more likely than not” criteria is not met, the impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized for the amount by which the carrying value exceeds the fair value of the asset. The Company recognized $ 18.5 million in other intangible asset impairment charges related to the NauticStar reporting unit during the year ended June 30, 2022. These charges are included in the loss from discontinued operations (see Note 3). |
Long-Lived Assets Other than Intangible Assets | Long-Lived Assets Other than Intangible Assets — The Company assesses the potential for impairment of its long-lived assets if facts and circumstances, such as declines in sales, earnings, or cash flows or adverse changes in the business climate, suggest that they may be impaired. A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life will also trigger a review for impairment. The Company performs its assessment by comparing the book value of the asset groups to the estimated future undiscounted cash flows associated with the asset groups. If any impairment in the carrying value of its long-lived assets is indicated, the assets would be adjusted to an estimate of fair value. The Company recognized $ 5.3 million in long-lived asset impairment charges related to the NauticStar reporting unit during the year ended June 30, 2022. These charges are included in the loss from discontinued operations (see Note 3). |
Product Warranties | Product Warranties — The Company offers warranties on the sale of certain products for periods of between one and five years . These warranties require us or our dealers to repair or replace defective products during the warranty period at no cost to the consumer. We estimate the costs that may be incurred under our basic limited warranty and record as a liability the amount of such costs at the time the product revenue is recognized. Factors that affect our warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. We periodically assess the adequacy of the recorded warranty liabilities and adjust the amounts as actual claims are determined or as changes in the obligations become reasonably estimable. We also adjust our liability for specific warranty matters when they become known, and the exposure can be estimated. Future warranty claims may differ from our estimate of the warranty liability, which could lead to changes in the Company’s warranty liability in future periods. |
Income Taxes | Income Taxes — Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. The Company records its global tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Significant judgment is required in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. The realization of these assets is dependent on generating future taxable income. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. In determining the amount of current and deferred tax the Company takes into account the impact of uncertain tax positions and whether additional taxes, interest and penalties may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Company to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will have an impact on tax expense in the period that such a determination is made. |
Research and Development | Research and Development — Research and development expenditures are expensed as incurred. Research and development expense for the years ended June 30, 2023, 2022, and 2021 was $ 8.3 million , $ 7.2 million , and $ 5.8 million , respectively, and is included in Operating expenses in the consolidated statements of operations. |
Self-Insurance | Self-Insurance — The Company is self-insured for certain losses relating to product liability claims and employee medical claims. The Company has purchased stop-loss coverage in order to limit its exposure to any significant levels for these matters. Losses are accrued based on the Company’s estimates of the aggregate liability for self-insured claims incurred using certain actuarial assumptions followed in the insurance industry and the Company’s historical experience. |
Deferred Debt Issuance Costs | Deferred Debt Issuance Costs — Certain costs incurred to obtain financing are capitalized and amortized over the term of the related debt using the effective interest method. For the year ended June 30, 2021, the Company incurred deferred financing costs of $ 0.6 million. For the years ended June 30, 2023, 2022, and 2021 , the Company recorded related amortization expense of $ 0.2 million, $ 0.2 million, and $ 0.6 million, respectively. Additionally, for the year ended June 30, 2021, the Company recognized a loss on early extinguishment of debt of $ 0.7 million related to the debt refinancing in fiscal 2021. See Note 9 – Long-Term Debt for a discussion on debt issuance costs. |
Share-Based Compensation | Share-Based Compensation — The Company records amounts for all share-based compensation, including grants of restricted stock awards and performance stock units over the vesting period in the consolidated statements of operations based on their fair values at the date of the grant. Forfeitures of share-based compensation, if any, are recognized as they occur. Share-based compensation costs are included in Selling and marketing and General and administrative expense in the consolidated statements of Operations. See Note 11 – Share-Based Compensation for a description of the Company's accounting for share-based compensation plans. |
Advertising | Advertising — Advertising costs are expensed when the advertising first takes place. Advertising expense recognized during the years ended June 30, 2023, 2022, and 2021, was $ 5.7 million , $ 4.4 million , and $ 4.4 million , respectively, and is included in Selling and marketing expenses in the consolidated statements of operations. |
Fair Value Measurements | Fair Value Measurements — The Company measures certain of its financial assets and liabilities at fair value and utilizes the established framework for measuring fair value and disclosing information about fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the inputs that market participants would use in pricing an asset or liability. When measuring fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Company looks to market observable data for similar assets. The Company’s most significant financial asset or liability measured at fair value on a recurring basis is its inventory repurchase contingent obligation (see “Revenue Recognition - Other Revenue Recognition Matters” and Note 12). The non-recurring fair value measurement related to the impairment of goodwill recorded in fiscal 2022 is a level 3 measurement. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The carrying amounts of the Company’s financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable and other liabilities, approximate their estimated fair values due to the relative short-term nature of the amounts. The carrying amount of debt approximates fair value due to variable interest rates at customary terms and rates the Company could obtain in current financing. |
Earnings Per Common Share | Earnings Per Common Share — Basic earnings per common share reflects reported earnings divided by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share include the effect of dilutive stock options, restricted stock awards, and performance stock units unless inclusion would not be dilutive. |
Postretirement Benefits | Postretirement Benefits — The Company has a defined contribution plan and makes contributions including matching and discretionary contributions which are based on various percentages of compensation, and in some instances are based on the amount of the employees' contributions to the plans. The expense related to the defined contribution plan was $ 1.9 million, $ 1.7 million, and $ 1.4 million for the years ended June 30, 2023, 2022, and 2021 , respectively. |
New Accounting Pronouncements Issued And Adopted | New Accounting Pronouncements Issued And Adopted Income Taxes — In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to general principles in Income Taxes (Topic 740). It also clarifies and amends existing guidance to improve consistent application. The guidance is effective for fiscal years beginning after December 15, 2020. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. Reference Rate Reform — In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions, subject to meeting certain criteria, that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. An entity may apply ASU 2020-04 as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. The adoption of this standard did not have an impact on the Company’s consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Ranges of Asset Lives Used for Depreciation Purposes | For the years ended June 30, 2023, 2022, and 2021, ranges of asset lives used for depreciation purposes are: Buildings and improvements 7 - 40 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenues from Contracts with Customers by Major Product Category and Reportable Segment | The following tables present the Company’s net sales by major product category for each reportable segment. Year Ended June 30, 2023 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 452,903 $ 139,654 $ 52,143 $ 644,700 Parts 13,922 1,070 — 14,992 Other revenue 1,831 523 — 2,354 Total $ 468,656 $ 141,247 $ 52,143 $ 662,046 Year Ended June 30, 2022 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 450,734 $ 138,841 $ 34,723 $ 624,298 Parts 13,170 962 — 14,132 Other revenue 2,123 1,056 — 3,179 Total $ 466,027 $ 140,859 $ 34,723 $ 641,609 For Year Ended June 30, 2021 MasterCraft Crest Aviara Total Major Product Categories: Boats and trailers $ 336,785 $ 101,208 $ 12,462 $ 450,455 Parts 12,934 1,091 — 14,025 Other revenue 1,093 389 — 1,482 Total $ 350,812 $ 102,688 $ 12,462 $ 465,962 For fiscal 2023 , the Company’s top ten dealers accounted for approximately 40 % of our net sales and one of our dealers individually accounted for 14.9 %, or approximately $ 98.6 million. For fiscal 2022 and 2021, the Company's top ten dealers accounted for approximately 30 % of our net sales and none of our dealers individually accounted for more than 10 % of our total net sales. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Operating Results and Balance Sheet Data for Discontinued Operations and Disposals | The following table summarizes the results of discontinued operations for the following periods: Years Ended June 30, 2023 2022 2021 NET SALES $ 7,766 $ 66,253 $ 59,846 COST OF SALES 10,253 72,081 55,006 GROSS LOSS ( 2,487 ) ( 5,828 ) 4,840 OPERATING EXPENSES: Selling, general and administrative 2,859 6,645 5,538 Amortization of other intangible assets - 2,032 1,992 Impairments - 23,833 - Total operating expenses 2,859 32,510 7,530 OPERATING LOSS ( 5,346 ) ( 38,338 ) ( 2,690 ) Loss on sale of discontinued operations ( 22,487 ) — — LOSS BEFORE INCOME TAX BENEFIT ( 27,833 ) ( 38,338 ) ( 2,690 ) INCOME TAX BENEFIT 6,318 8,607 422 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX $ ( 21,515 ) $ ( 29,731 ) $ ( 2,268 ) The following table summarizes the assets and liabilities associated with discontinued operations: June 30, 2022 CURRENT ASSETS: Accounts receivable, net of allowance $ 3,130 Inventories, net 20,044 Other current assets 434 Total current assets classified as discontinued operations $ 23,608 NON-CURRENT ASSETS: Property, plant and equipment, net $ 5,924 Other long-term assets 63 Total non-current assets classified as discontinued operations $ 5,987 CURRENT LIABILITIES: Accounts payable $ 4,675 Accrued expenses and other current liabilities 3,212 Total current liabilities classified as discontinued operations $ 7,887 |
HELD-TO-MATURITY SECURITIES (Ta
HELD-TO-MATURITY SECURITIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Investments Disclosure [Abstract] | |
Summary of Investments | The following is a summary of investments as of June 30, 2023: Amortized Gross Gross Estimated Cost / Net Unrealized Unrealized Fair Carrying Amount Gains Losses Value Held-to-maturity securities: Fixed income securities: Corporate bonds $ 81,743 $ 1 $ ( 160 ) $ 81,584 U.S. treasury bills 9,817 31 ( 1 ) 9,847 Total held-to-maturity securities $ 91,560 $ 32 $ ( 161 ) $ 91,431 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: June 30, June 30, 2023 2022 Raw materials and supplies $ 40,201 $ 45,021 Work in process 9,465 7,634 Finished goods 10,335 7,710 Obsolescence reserve ( 1,703 ) ( 1,770 ) Total inventories $ 58,298 $ 58,595 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant, and equipment, net consisted of the following: June 30, June 30, 2023 2022 Land and improvements $ 10,456 $ 6,367 Buildings and improvements 46,759 35,379 Machinery and equipment 40,632 39,457 Furniture and fixtures 5,284 3,394 Construction in progress 10,180 6,315 Total property, plant, and equipment 113,311 90,912 Less accumulated depreciation ( 35,390 ) ( 35,089 ) Property, plant, and equipment — net $ 77,921 $ 55,823 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Reallocation and Impairment Charges | Goodwill reallocation and impairment charge for the year ended June 30, 2022, were as follows: MasterCraft Aviara Total Goodwill, net at June 30, 2021 $ 29,593 $ — $ 29,593 Goodwill reallocation ( 1,100 ) 1,100 — Impairment loss — ( 1,100 ) ( 1,100 ) Goodwill, net at June 30, 2022 $ 28,493 $ — $ 28,493 |
Schedule of Carrying Amounts of Goodwill | The following table presents the carrying amounts of goodwill as of June 30, 2023 and 2022 for each of the Company's reportable segments. Gross Amount Accumulated Impairment Losses Total MasterCraft $ 28,493 $ - $ 28,493 Crest 36,238 ( 36,238 ) - Aviara 1,100 ( 1,100 ) - Total $ 65,831 $ ( 37,338 ) $ 28,493 |
Schedule of Carrying Amount of Other Intangible Assets, Net | The following table presents the carrying amount of Other intangible assets, net as of June 30, 2023 and 2022. June 30, June 30, 2023 2022 Gross Amount Accumulated Amortization / Impairment Other intangible assets, net Gross Amount Accumulated Amortization / Impairment Other intangible assets, net Amortized intangible assets Dealer networks $ 19,500 $ ( 10,050 ) $ 9,450 $ 19,500 $ ( 8,143 ) $ 11,357 Software 245 ( 233 ) 12 245 ( 184 ) 61 19,745 ( 10,283 ) 9,462 19,745 ( 8,327 ) 11,418 Unamortized intangible assets Trade names 33,000 ( 7,000 ) 26,000 33,000 ( 7,000 ) 26,000 Total other intangible assets $ 52,745 $ ( 17,283 ) $ 35,462 $ 52,745 $ ( 15,327 ) $ 37,418 |
Schedule of Estimated Future Amortization Expense | The following table presents estimated future amortization expense for the next five fiscal years and thereafter. Fiscal years ending June 30, 2024 $ 1,812 2025 1,800 2026 1,800 2027 1,800 2028 1,800 and thereafter 450 Total $ 9,462 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: June 30, June 30, 2023 2022 Warranty $ 31,780 $ 25,824 Dealer incentives 24,987 15,508 Compensation and related accruals 5,838 4,908 Self-insurance 1,586 1,171 Inventory repurchase contingent obligation 1,515 661 Contract liabilities 1,477 1,447 Liabilities retained associated with discontinued operations 690 — Other 4,623 4,918 Total accrued expenses and other current liabilities $ 72,496 $ 54,437 |
Summary of Accrued Warranty Liability Activity | Accrued warranty liability activity was as follows: June 30, June 30, 2023 2022 Balance at the beginning of the period $ 25,824 $ 20,655 Provisions 15,302 12,520 Payments made ( 12,899 ) ( 9,057 ) Aggregate changes for preexisting warranties 3,553 1,706 Balance at the end of the period $ 31,780 $ 25,824 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Outstanding | Long-term debt outstanding was as follows: June 30, June 30, 2023 2022 Term loan $ 54,000 $ 57,000 Debt issuance costs on term loan ( 324 ) ( 451 ) Total debt 53,676 56,549 Less current portion of long-term debt 4,500 3,000 Less current portion of debt issuance costs on term loan ( 119 ) ( 127 ) Long-term debt, net of current portion $ 49,295 $ 53,676 |
Schedule of Maturities of Long-Term Debt | Maturities for the Term Loan subsequent to June 30, 2023 are as follows: 2024 $ 4,500 2025 4,500 2026 45,000 Total $ 54,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | For the years ended June 30, the components of the provision for income taxes for continuing operations are as follows: 2023 2022 2021 Current income tax expense: Federal $ 25,115 $ 22,563 $ 12,795 State 5,728 5,680 3,276 Total current tax expense $ 30,843 $ 28,243 $ 16,071 Deferred tax (benefit) expense: Federal $ ( 3,739 ) $ ( 1,044 ) $ 858 State 31 ( 413 ) ( 849 ) Foreign - ( 7 ) - Total deferred tax expense (benefit) ( 3,708 ) ( 1,464 ) 9 Income tax expense (benefit) $ 27,135 $ 26,779 $ 16,080 |
Schedule of Difference Between Statutory and Effective Federal Tax Rate | The difference between the statutory and the effective federal tax rate related to continuing operations for the periods below is attributable to the following: 2023 2022 2021 Statutory income tax rate 21.00 % 21.00 % 21.00 % State taxes (net of federal income tax benefit and valuation allowance) 2.20 % 1.76 % 1.21 % Tax credits ( 0.93 %) ( 0.66 %) ( 0.77 %) Change in valuation allowance — ( 0.03 %) 0.19 % Permanent differences ( 0.90 %) ( 0.69 %) ( 0.74 %) Uncertain tax positions 1.90 % 1.99 % 0.74 % Other ( 0.19 %) ( 0.03 %) ( 0.05 %) Effective income tax rate 23.08 % 23.34 % 21.58 % |
Summary of Significant Components of Company's Deferred Tax Assets and Liabilities | As of June 30, 2023, and 2022, a summary of the significant components of the Company’s deferred tax assets and liabilities was as follows: 2023 2022 Deferred tax assets: Intangible asset basis difference $ 3,224 $ 15,886 Warranty reserves 7,448 6,515 Accrued selling 2,177 390 Capitalized research costs 1,835 — Stock compensation 1,463 1,183 Unrecognized tax benefits 1,328 1,145 Inventory 504 1,142 Net operating loss 750 705 Other 1,463 943 Total deferred tax assets 20,192 27,909 Valuation allowance ( 2 ) ( 2 ) Total deferred tax assets, net of the valuation allowance 20,190 27,907 Deferred tax liabilities: Depreciation ( 6,201 ) ( 5,404 ) Other ( 1,561 ) ( 978 ) Total deferred tax liabilities ( 7,762 ) ( 6,382 ) Net deferred tax assets $ 12,428 $ 21,525 |
Schedule of Reconciliation of Unrecognized Tax Benefits Excluding Accrued Amounts for Interest and Penalties | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued amounts for interest and penalties, is as follows: 2023 2022 Balance at July 1 $ 5,513 $ 3,304 Additions based on tax positions related to the current year 1,289 2,004 Additions for tax positions of prior years 30 296 Reductions for tax positions of prior years ( 600 ) ( 91 ) Balance at June 30 $ 6,232 $ 5,513 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Components of Share-based Compensation Expense by Award Type | The following table presents the components of share-based compensation expense within continuing operations by award type for the years ended June 30, 2023, 2022, and 2021. 2023 2022 2021 Restricted stock awards $ 2,283 $ 1,684 $ 1,541 Performance stock units 1,373 1,826 1,391 Share-based compensation expense $ 3,656 $ 3,510 $ 2,932 |
Schedule of Income Tax Benefit Related to Share-based Compensation Expense by Award Type | The following table presents the income tax benefit related to share-based compensation expense within continuing operations recognized by award type. 2023 2022 2021 Restricted stock awards $ 530 $ 383 $ 342 Performance stock units 319 416 309 Share-based compensation expense $ 849 $ 799 $ 651 |
Summary of Restricted Stock Awards Activity | Number of Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Total Non-vested Restricted Stock Awards at June 30, 2020 106,894 $ 18.01 Granted 93,357 20.34 Vested ( 73,385 ) 18.54 Forfeited ( 8,673 ) 19.29 Total Non-vested Restricted Stock Awards at June 30, 2021 118,193 19.42 Granted 95,753 25.04 Vested ( 99,004 ) 22.01 Forfeited ( 8,534 ) 24.65 Total Non-vested Restricted Stock Awards at June 30, 2022 106,408 21.65 Granted 104,657 23.91 Vested ( 112,789 ) 22.10 Forfeited ( 6,369 ) 21.83 Total Non-vested Restricted Stock Awards at June 30, 2023 91,907 23.66 |
Summary of Performance Stock Units Activity | Number of Performance Stock Units Weighted Average Grant Date Fair Value Total Non-vested Performance Stock Units at June 30, 2020 67,404 $ 20.02 Granted 123,096 22.11 Vested ( 14,627 ) 26.29 Forfeited ( 15,588 ) 20.25 Total Non-vested Performance Stock Units at June 30, 2021 160,285 21.03 Granted 53,842 28.73 Vested ( 99,860 ) 20.16 Forfeited ( 9,077 ) 26.71 Total Non-vested Performance Stock Units at June 30, 2022 105,190 25.30 Granted 76,567 26.08 Vested ( 56,790 ) 22.38 Forfeited ( 1,996 ) 26.15 Total Non-vested Performance Stock Units at June 30, 2023 122,971 27.12 |
Summary of Nonqualified Stock Options Activity | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (Yrs.) Value Outstanding at June 30, 2020 32,392 $ 10.70 5.1 $ 270 Granted — Exercised ( 7,952 ) 10.70 Forfeited or expired — Outstanding at June 30, 2021 24,440 10.70 4.1 381 Granted — Exercised ( 9,294 ) 10.70 Forfeited or expired — Outstanding at June 30, 2022 15,146 10.70 3.1 157 Granted — Exercised ( 15,146 ) 10.70 Forfeited or expired — Outstanding at June 30, 2023 — |
EARNINGS PER SHARE AND COMMON_2
EARNINGS PER SHARE AND COMMON STOCK (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Factors Used in Earnings Per Share Computation | The factors used in the earnings per share computation are as follows: 2023 2022 2021 Net income from continuing operations $ 90,452 $ 87,945 $ 58,438 Loss from discontinued operations, net of tax ( 21,515 ) ( 29,731 ) ( 2,268 ) Net income $ 68,937 $ 58,214 $ 56,170 Weighted average shares — basic 17,618,797 18,455,226 18,805,464 Dilutive effect of assumed exercises of stock options 5,270 11,110 14,814 Dilutive effect of assumed restricted share awards/units 141,050 170,176 131,243 Weighted average outstanding shares — diluted 17,765,117 18,636,512 18,951,521 Basic net income (loss) per share Continuing operations $ 5.13 $ 4.77 $ 3.11 Discontinued operations ( 1.22 ) ( 1.62 ) ( 0.12 ) Net income $ 3.91 $ 3.15 $ 2.99 Diluted net income (loss) per share Continuing operations $ 5.09 $ 4.72 $ 3.08 Discontinued operations ( 1.21 ) ( 1.60 ) ( 0.12 ) Net income $ 3.88 $ 3.12 $ 2.96 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Information for Reportable Segments | Selected financial information for the Company’s reportable segments was as follows: For the Year Ended June 30, 2023 MasterCraft Crest Aviara Consolidated Net sales $ 468,656 $ 141,247 $ 52,143 $ 662,046 Operating income (loss) 101,324 20,106 ( 4,515 ) 116,915 Depreciation and amortization 5,555 2,841 2,173 10,569 Purchases of property, plant and equipment 17,414 7,149 5,760 30,323 For the Year Ended June 30, 2022 MasterCraft Crest Aviara Consolidated Net sales $ 466,027 $ 140,859 $ 34,723 $ 641,609 Operating income (loss) 105,341 19,892 ( 9,038 ) 116,195 Depreciation and amortization 4,968 2,665 2,098 9,731 Goodwill impairment — — 1,100 1,100 Purchases of property, plant and equipment 6,642 4,193 1,461 12,296 For the Year Ended June 30, 2021 MasterCraft Crest Aviara Consolidated Net sales $ 350,812 $ 102,688 $ 12,462 $ 465,962 Operating income (loss) 73,354 13,605 ( 8,316 ) 78,643 Depreciation and amortization 4,479 2,503 1,386 8,368 Purchases of property, plant and equipment 5,273 892 19,054 25,219 The following table presents total assets for the Company’s reportable segments as of June 30, 2023, and 2022. June 30, 2023 June 30, 2022 Assets: MasterCraft $ 259,201 $ 178,386 Crest 53,435 53,956 Aviara 41,340 35,115 Discontinued operations — 29,595 Total assets $ 353,976 $ 297,052 |
QUARTERLY FINANCIAL REPORTING (
QUARTERLY FINANCIAL REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Statement of Financial Position [Abstract] | |
Schedule of Quarterly financial reporting | The following tables set forth summary quarterly financial information for the years ended June 30, 2023 and 2022, and reflects the retrospective presentation of discontinued operations as discussed in Note 3. Due to the effects of rounding, the quarterly results presented may not sum to the fiscal year results presented. Fiscal Quarter Ended Fiscal Year Ended June 30, April 2, January 1, October 2, June 30, 2023 2023 2023 2022 2023 Net sales $ 166,566 $ 166,776 $ 159,188 $ 169,516 $ 662,046 Gross profit 42,915 42,598 38,227 45,973 169,713 Operating income 29,206 29,026 26,461 32,222 116,915 Net income from continuing operations 23,052 22,782 19,983 24,635 90,452 Loss from discontinued operations ( 376 ) ( 272 ) ( 300 ) ( 20,567 ) ( 21,515 ) Net income $ 22,676 $ 22,510 $ 19,683 $ 4,068 $ 68,937 Basic net income (loss) per common share Continuing operations $ 1.33 $ 1.30 $ 1.13 $ 1.38 $ 5.13 Discontinued operations ( 0.02 ) ( 0.02 ) ( 0.02 ) ( 1.15 ) ( 1.22 ) Net income $ 1.31 $ 1.28 $ 1.11 $ 0.23 $ 3.91 Diluted net income (loss) per common share Continuing operations $ 1.32 $ 1.28 $ 1.12 $ 1.37 $ 5.09 Discontinued operations ( 0.02 ) ( 0.01 ) ( 0.01 ) ( 1.14 ) ( 1.21 ) Net income $ 1.30 $ 1.27 $ 1.11 $ 0.23 $ 3.88 Weighted average shares used for computation of: Basic earnings per common share 17,299,562 17,559,920 17,669,645 17,946,061 17,618,797 Diluted earnings per common share 17,505,504 17,748,910 17,774,329 18,031,725 17,765,117 Fiscal Quarter Ended Fiscal Year Ended June 30, April 3, January 2, October 3, June 30, 2022 2022 2022 2021 2022 Net sales $ 197,216 $ 169,343 $ 144,400 $ 130,650 $ 641,609 Gross profit 57,173 44,074 36,361 30,582 168,190 Operating income 44,592 31,604 23,619 16,380 116,195 Net income from continuing operations 33,548 24,306 17,859 12,232 87,945 Loss from discontinued operations ( 22,057 ) ( 3,371 ) ( 2,457 ) ( 1,846 ) ( 29,731 ) Net income $ 11,491 $ 20,935 $ 15,402 $ 10,386 $ 58,214 Basic net income (loss) per common share Continuing operations $ 1.87 $ 1.33 $ 0.95 $ 0.65 $ 4.77 Discontinued operations ( 1.23 ) ( 0.19 ) ( 0.13 ) ( 0.10 ) ( 1.62 ) Net income $ 0.64 $ 1.14 $ 0.82 $ 0.55 $ 3.15 Diluted net income (loss) per common share Continuing operations $ 1.85 $ 1.31 $ 0.94 $ 0.65 $ 4.72 Discontinued operations ( 1.22 ) ( 0.18 ) ( 0.13 ) ( 0.10 ) ( 1.60 ) Net income $ 0.63 $ 1.13 $ 0.81 $ 0.55 $ 3.12 Weighted average shares used for computation of: Basic earnings per common share 17,952,267 18,295,949 18,722,386 18,850,301 18,455,226 Diluted earnings per common share 18,155,449 18,487,346 18,899,136 19,004,119 18,636,512 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Shipping and Handling Costs - Additional Information (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition | |
Maximum term of repurchase commitments | 30 months |
Maximum | |
Revenue Recognition | |
Term of reimbursement program | 9 months |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Concentrations of Credit and Business Risk - Additional Information (Details) - Supplier Concentration Risk - Cost of Goods - Engine Supplier $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 USD ($) Item | Jun. 30, 2022 USD ($) Item | Jun. 30, 2021 USD ($) Item | |
MasterCraft | |||
Concentrations of Credit and Business Risk | |||
Number of vendors | Item | 1 | 1 | 1 |
Total Purchase of all segments during period | $ | $ 47.6 | $ 45 | $ 40.6 |
Crest | |||
Concentrations of Credit and Business Risk | |||
Number of vendors | Item | 1 | 1 | 1 |
Total Purchase of all segments during period | $ | $ 31 | $ 34 | $ 22.7 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Ranges of Asset Lives Used for Depreciation Purposes (Details) | Jun. 30, 2023 |
Buildings and improvements | Minimum | |
Property, plant, and equipment | |
Asset lives | 7 years |
Buildings and improvements | Maximum | |
Property, plant, and equipment | |
Asset lives | 40 years |
Machinery and equipment | Minimum | |
Property, plant, and equipment | |
Asset lives | 3 years |
Machinery and equipment | Maximum | |
Property, plant, and equipment | |
Asset lives | 7 years |
Furniture and fixtures | Minimum | |
Property, plant, and equipment | |
Asset lives | 3 years |
Furniture and fixtures | Maximum | |
Property, plant, and equipment | |
Asset lives | 7 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Intangible Assets - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 USD ($) Segment | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Goodwill and Other Intangible Assets | |||
Number of operating segments | Segment | 3 | ||
Goodwill impairment | $ 0 | $ 1,100 | $ 0 |
Impairment of other intangible assets | 18,500 | ||
Impairment of long lived assets | $ 5,300 | ||
Dealer network | |||
Goodwill and Other Intangible Assets | |||
Expected useful lives of intangible assets | 10 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Warranties, Research and Development, Deferred Debt Issuance Costs, and Other - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Research and Development | |||
Research and development expenditures | $ 8,300 | $ 7,200 | $ 5,800 |
Deferred Debt Issuance Costs | |||
Deferred financing costs incurred | 600 | ||
Amortization of deferred financing costs | 200 | 200 | 600 |
Loss on extinguishment of debt | 0 | 0 | 733 |
Advertising | |||
Advertising costs | 5,700 | 4,400 | 4,400 |
Postretirement Benefits | |||
Defined contribution plan expense | $ 1,900 | $ 1,700 | $ 1,400 |
Minimum | |||
Product Warranties | |||
Product warranty term | 1 year | ||
Maximum | |||
Product Warranties | |||
Product warranty term | 5 years |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Revenues from Contracts with Customers by Major Product Category and Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jun. 30, 2022 | Apr. 03, 2022 | Jan. 02, 2022 | Oct. 03, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue by Categories | |||||||||||
Revenue | $ 166,566 | $ 166,776 | $ 159,188 | $ 169,516 | $ 197,216 | $ 169,343 | $ 144,400 | $ 130,650 | $ 662,046 | $ 641,609 | $ 465,962 |
MasterCraft | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 468,656 | 466,027 | 350,812 | ||||||||
Crest | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 141,247 | 140,859 | 102,688 | ||||||||
Aviara | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 52,143 | 34,723 | 12,462 | ||||||||
Boats and trailers | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 644,700 | 624,298 | 450,455 | ||||||||
Boats and trailers | MasterCraft | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 452,903 | 450,734 | 336,785 | ||||||||
Boats and trailers | Crest | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 139,654 | 138,841 | 101,208 | ||||||||
Boats and trailers | Aviara | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 52,143 | 34,723 | 12,462 | ||||||||
Parts | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 14,992 | 14,132 | 14,025 | ||||||||
Parts | MasterCraft | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 13,922 | 13,170 | 12,934 | ||||||||
Parts | Crest | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 1,070 | 962 | 1,091 | ||||||||
Other | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 2,354 | 3,179 | 1,482 | ||||||||
Other | MasterCraft | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 1,831 | 2,123 | 1,093 | ||||||||
Other | Crest | |||||||||||
Revenue by Categories | |||||||||||
Revenue | $ 523 | $ 1,056 | $ 389 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Contract liabilities | |||
Contract liabilities | $ 1,477 | $ 1,447 | |
Contract liabilities with customer, revenue recognized during the period | $ 1,400 | ||
Accrued Expenses and Other Current Liabilities | |||
Contract liabilities | |||
Contract liabilities | 3,300 | ||
June thirty Two Thousand Twenty Four [Member] | |||
Contract liabilities | |||
Expected revenue to recognize | 1,500 | ||
Thereafter | |||
Contract liabilities | |||
Expected revenue to recognize | 1,800 | ||
MasterCraft | Net Sales | Geographical concentration | |||
Revenue by Categories | |||
Net sales | $ 98,600 | ||
MasterCraft | Net Sales | Geographical concentration | Outside of North America | |||
Revenue by Categories | |||
Net sales, percentage | 4.60% | 5.50% | 5.10% |
MasterCraft | Net Sales | Geographical concentration | Company's Top ten dealers | |||
Revenue by Categories | |||
Net sales, percentage | 40% | 30% | 30% |
MasterCraft | Net Sales | Geographical concentration | Comapny's One individual dealers individual | |||
Revenue by Categories | |||
Net sales, percentage | 14.90% | 10% | 10% |
DISCONTINUED OPERATIONS (Additi
DISCONTINUED OPERATIONS (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Non-cash pretax loss | $ 22,500 | ||
Discontinued Operation Gain Loss On Disposal Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed | false | ||
Impairment of Intangible Asset Indefinite Lived Excluding Goodwill Statement of Income or Comprehensive Income Extensible Enumeration Not Disclosed | false | ||
Impairment of Intangible Asset Finite Lived Statement of Income or Comprehensive Income Extensible Enumeration Not Disclosed | false | ||
Impairment of long lived assets | $ 5,300 | ||
Impairment Long Lived Asset Held for Use Statement of Income or Comprehensive Income Extensible Enumeration Not Disclosed | false | ||
Trade Names [Member] | |||
Impairment of other indefinite-lived intangible assets | $ 7,000 | 7,000 | |
Nauticstar [Member] | |||
Non-cash pretax loss | 22,487 | 0 | $ 0 |
Impairment of long lived assets | 5,300 | ||
Impairments | $ 0 | 23,833 | $ 0 |
Nauticstar [Member] | Trade Names [Member] | |||
Impairment of other indefinite-lived intangible assets | 8,000 | ||
Nauticstar [Member] | Dealer Network Intangible Asset [Member] | |||
Finite-lived intangible asset impairment charges | $ 10,500 |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary of Operating Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING EXPENSES: | |||
Loss on sale of discontinued operations | $ 22,500 | ||
Nauticstar [Member] | |||
Discontinued Operations | |||
NET SALES | 7,766 | $ 66,253 | $ 59,846 |
COST OF SALES | 10,253 | 72,081 | 55,006 |
GROSS LOSS | (2,487) | (5,828) | 4,840 |
OPERATING EXPENSES: | |||
Selling, general and administrative | 2,859 | 6,645 | 5,538 |
Amortization of other intangible assets | 0 | 2,032 | 1,992 |
Impairments | 0 | 23,833 | 0 |
Total operating expenses | 2,859 | 32,510 | 7,530 |
OPERATING LOSS | (5,346) | (38,338) | (2,690) |
Loss on sale of discontinued operations | 22,487 | 0 | 0 |
LOSS BEFORE INCOME TAX BENEFIT | (27,833) | (38,338) | (2,690) |
INCOME TAX BENEFIT | 6,318 | 8,607 | 422 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | $ (21,515) | $ (29,731) | $ (2,268) |
DISCONTINUED OPERATIONS - Sum_2
DISCONTINUED OPERATIONS - Summary of Assets and Liabilities Associated with Discontinued Operations (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
CURRENT ASSETS: | ||
Total current assets classified as discontinued operations | $ 0 | $ 23,608 |
NON-CURRENT ASSETS: | ||
Total non-current assets classified as discontinued operations | 0 | 5,987 |
CURRENT LIABILITIES: | ||
Total current liabilities classified as discontinued operations | $ 0 | 7,887 |
Nauticstar [Member] | ||
CURRENT ASSETS: | ||
Accounts receivable, net of allowance | 3,130 | |
Inventories, net | 20,044 | |
Other current assets | 434 | |
Total current assets classified as discontinued operations | 23,608 | |
NON-CURRENT ASSETS: | ||
Property, plant and equipment, net | 5,924 | |
Other long-term assets | 63 | |
Total non-current assets classified as discontinued operations | 5,987 | |
CURRENT LIABILITIES: | ||
Accounts payable | 4,675 | |
Accrued expenses and other current liabilities | 3,212 | |
Total current liabilities classified as discontinued operations | $ 7,887 |
HELD-TO-MATURITY SECURITIES - S
HELD-TO-MATURITY SECURITIES - Summary of investments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Schedule of Investments [Line Items] | |
Amortized Cost/Net Carrying Amount | $ 91,560 |
Gross Unrealized Gains | 32 |
Gross Unrealized Losses | (161) |
Estimated Fair Value | 91,431 |
Corporate bonds | |
Schedule of Investments [Line Items] | |
Amortized Cost/Net Carrying Amount | 81,743 |
Gross Unrealized Gains | 1 |
Gross Unrealized Losses | (160) |
Estimated Fair Value | 81,584 |
U.S. treasury bills | |
Schedule of Investments [Line Items] | |
Amortized Cost/Net Carrying Amount | 9,817 |
Gross Unrealized Gains | 31 |
Gross Unrealized Losses | (1) |
Estimated Fair Value | $ 9,847 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 40,201 | $ 45,021 |
Work in process | 9,465 | 7,634 |
Finished goods | 10,335 | 7,710 |
Obsolescence reserve | (1,703) | (1,770) |
Total inventories | $ 58,298 | $ 58,595 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT - Schedule of Property, Plant, and Equipment - Net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Property, plant, and equipment | ||
Total property, plant, and equipment | $ 113,311 | $ 90,912 |
Less accumulated depreciation | (35,390) | (35,089) |
Property, plant, and equipment — net | 77,921 | 55,823 |
Land and improvements | ||
Property, plant, and equipment | ||
Total property, plant, and equipment | 10,456 | 6,367 |
Buildings and improvements | ||
Property, plant, and equipment | ||
Total property, plant, and equipment | 46,759 | 35,379 |
Machinery and equipment | ||
Property, plant, and equipment | ||
Total property, plant, and equipment | 40,632 | 39,457 |
Furniture and fixtures | ||
Property, plant, and equipment | ||
Total property, plant, and equipment | 5,284 | 3,394 |
Construction in progress | ||
Property, plant, and equipment | ||
Total property, plant, and equipment | $ 10,180 | $ 6,315 |
PROPERTY, PLANT, AND EQUIPMEN_3
PROPERTY, PLANT, AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, plant, and equipment | |||
Depreciation | $ 8.6 | $ 7.7 | $ 6.4 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | $ 1,100 | $ 0 |
Aviara | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 1,100 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill Reallocation and Impairment Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill [Line Items] | |||
Goodwill, net at June 30 ,2021 | $ 28,493 | $ 29,593 | |
Goodwill reallocation | 0 | ||
Impairment loss | 0 | (1,100) | $ 0 |
Goodwill, net at June 30,2022 | 28,493 | 28,493 | 29,593 |
MasterCraft | |||
Goodwill [Line Items] | |||
Goodwill, net at June 30 ,2021 | 28,493 | 29,593 | |
Goodwill reallocation | (1,100) | ||
Impairment loss | 0 | ||
Goodwill, net at June 30,2022 | 28,493 | 28,493 | 29,593 |
Aviara | |||
Goodwill [Line Items] | |||
Goodwill, net at June 30 ,2021 | $ 0 | 0 | |
Goodwill reallocation | 1,100 | ||
Impairment loss | (1,100) | ||
Goodwill, net at June 30,2022 | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Carrying Amounts of Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Goodwill [Line Items] | |||
Gross Amount | $ 65,831 | $ 65,831 | |
Accumulated impairment losses | (37,338) | (37,338) | |
Total | 28,493 | 28,493 | $ 29,593 |
MasterCraft | |||
Goodwill [Line Items] | |||
Gross Amount | 28,493 | 28,493 | |
Accumulated impairment losses | 0 | 0 | |
Total | 28,493 | 28,493 | 29,593 |
Crest | |||
Goodwill [Line Items] | |||
Gross Amount | 36,238 | 36,238 | |
Accumulated impairment losses | 36,238 | 36,238 | |
Aviara | |||
Goodwill [Line Items] | |||
Gross Amount | 1,100 | 1,100 | |
Accumulated impairment losses | $ 1,100 | 1,100 | |
Total | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Carrying Amount of Other Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Amortized intangible assets, Gross Amount | $ 19,745 | $ 19,745 |
Accumulated Amortization / Impairment | (10,283) | (8,327) |
Amortized intangible assets, Other intangible assets, net | 9,462 | 11,418 |
Gross Amount | 52,745 | 52,745 |
Accumulated Amortization / Impairment | (17,283) | (15,327) |
Other intangible assets, net | 35,462 | 37,418 |
Dealer network | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Amortized intangible assets, Gross Amount | 19,500 | 19,500 |
Accumulated Amortization / Impairment | (10,050) | (8,143) |
Amortized intangible assets, Other intangible assets, net | 9,450 | 11,357 |
Software | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Amortized intangible assets, Gross Amount | 245 | 245 |
Accumulated Amortization / Impairment | (233) | (184) |
Amortized intangible assets, Other intangible assets, net | 12 | 61 |
Trade names | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Unamortized intangible assets, Gross Amount | 33,000 | 33,000 |
Unamortized intangible assets, Accumulated Amortization / Impairment | (7,000) | (7,000) |
Unamortized intangible assets, Other intangible assets, net | $ 26,000 | $ 26,000 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other intangible assets | $ 1,956 | $ 1,956 | $ 1,956 |
GOODWILL AND OTHER INTANGIBLE_8
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Estimated amortization expense | ||
2024 | $ 1,812 | |
2025 | 1,800 | |
2026 | 1,800 | |
2027 | 1,800 | |
2028 | 1,800 | |
and thereafter | 450 | |
Amortized intangible assets, Other intangible assets, net | $ 9,462 | $ 11,418 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Warranty | $ 31,780 | $ 25,824 |
Dealer incentives | 24,987 | 15,508 |
Compensation and related accruals | 5,838 | 4,908 |
Contract liabilities | 1,477 | 1,447 |
Self-insurance | 1,586 | 1,171 |
Inventory repurchase contingent obligation | 1,515 | 661 |
Liabilities retained associated with discontinued operations | 690 | 0 |
Other | 4,623 | 4,918 |
Total accrued expenses and other current liabilities | $ 72,496 | $ 54,437 |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Summary of Accrued Warranty Liability Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Roll forward of the accrued warranty liability | ||
Balance at the beginning of the period | $ 25,824 | $ 20,655 |
Provisions | 15,302 | 12,520 |
Payments made | (12,899) | (9,057) |
Aggregate changes for preexisting warranties | 3,553 | 1,706 |
Balance at the end of the period | $ 31,780 | $ 25,824 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Long-term debt | ||
Total debt | $ 53,676 | $ 56,549 |
Less current portion of long-term debt | 4,500 | 3,000 |
Long-term debt, net of current portion | 49,295 | 53,676 |
Term Loans | ||
Long-term debt | ||
Long-term debt | 54,000 | 57,000 |
Debt issuance costs on term loans | (324) | (451) |
Less current portion of debt issuance costs on term loans | $ (119) | $ (127) |
LONG-TERM DEBT - Senior Secured
LONG-TERM DEBT - Senior Secured Credit Facility - Additional Information (Details) - USD ($) $ in Thousands | Jun. 28, 2021 | Jun. 30, 2023 | Jun. 30, 2022 |
Fourth Amended Credit Agreement | |||
Long-term debt | |||
Maximum borrowing capacity | $ 190,000 | ||
Term Loans | |||
Long-term debt | |||
Long-term debt | $ 54,000 | $ 57,000 | |
Revolving Credit Facility | Fourth Amended Credit Agreement | |||
Long-term debt | |||
Maximum borrowing capacity | 35,000 | ||
Term Loan One | Fourth Amended Credit Agreement | |||
Long-term debt | |||
Loan commitment | 75,000 | ||
Term Loan Two | Fourth Amended Credit Agreement | |||
Long-term debt | |||
Loan commitment | 80,000 | ||
Senior Secured Credit Facility | |||
Long-term debt | |||
Maximum borrowing capacity | $ 160,000 | ||
Effective interest rate | 6.50% | 2.94% | |
Senior Secured Credit Facility | Prime Rate | Minimum | |||
Long-term debt | |||
Variable margin rate | 0.25% | ||
Senior Secured Credit Facility | Prime Rate | Maximum | |||
Long-term debt | |||
Variable margin rate | 1% | ||
Senior Secured Credit Facility | London Interba Rate LIBOR Member | Minimum | |||
Long-term debt | |||
Variable margin rate | 1.25% | ||
Senior Secured Credit Facility | London Interba Rate LIBOR Member | Maximum | |||
Long-term debt | |||
Variable margin rate | 2% | ||
Senior Secured Credit Facility | Term Loans | |||
Long-term debt | |||
Long-term debt | $ 60,000 | ||
Senior Secured Credit Facility | Revolving Credit Facility | |||
Long-term debt | |||
Maximum borrowing capacity | $ 100,000 | ||
Senior Secured Credit Facility | Revolving Credit Facility | Minimum | |||
Long-term debt | |||
Commitment fee percentage | 0.15% | ||
Senior Secured Credit Facility | Revolving Credit Facility | Maximum | |||
Long-term debt | |||
Commitment fee percentage | 0.30% |
LONG-TERM DEBT - Current Credit
LONG-TERM DEBT - Current Credit Facility - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
Loss on extinguish of debt | $ 0 | $ 0 | $ (733) |
Senior Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Loss on extinguish of debt | $ 700 |
LONG-TERM DEBT - Revolving Cred
LONG-TERM DEBT - Revolving Credit Facility - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 28, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Borrowings on revolving credit facility | $ 0 | $ 12,000 | $ 56,228 | |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowings on revolving credit facility | $ 33,700 | |||
Remaining borrowing capacity | $ 100,000 | $ 100,000 |
LONG-TERM DEBT - Schedule of Ma
LONG-TERM DEBT - Schedule of Maturities of Long-Term Debt (Details) - Senior Secured Term Loan and Revolving Credit Facility $ in Thousands | Jun. 30, 2023 USD ($) |
Long-term debt maturities | |
2024 | $ 4,500 |
2025 | 4,500 |
2026 | 45,000 |
Total | $ 54,000 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Loss Carryforwards | |||
Operating loss carry forwards expires | $ 1 | ||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Unrecognized tax benefits that would impact effective tax rate | 5.4 | $ 4.7 | |
Benefit and expense from interest and penalties recorded | 0.2 | 0.2 | $ 0.2 |
Amount of unrecognized benefits expected to increase over the next twelve months | 0.8 | ||
Unrecognized tax positions | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Accrued for interest and penalties | 1.1 | $ 0.8 | |
State | |||
Operating Loss Carryforwards | |||
Net operating loss carryforwards | $ 16.7 |
INCOME TAXES - Components of Pr
INCOME TAXES - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current income tax expense: | |||
Federal | $ 25,115 | $ 22,563 | $ 12,795 |
State | 5,728 | 5,680 | 3,276 |
Total current tax expense | 30,843 | 28,243 | 16,071 |
Deferred tax (benefit) expense | |||
Federal | (3,739) | (1,044) | 858 |
State | 31 | (413) | (849) |
Foreign | (7) | ||
Total deferred tax expense (benefit) | (3,708) | (1,464) | 9 |
Income tax expense (benefit) | $ 27,135 | $ 26,779 | $ 16,080 |
INCOME TAXES - Schedule of Diff
INCOME TAXES - Schedule of Difference Between Statutory and Effective Federal Tax Rate (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Difference between the statutory and the effective federal tax rate | |||
Statutory income tax rate | 21% | 21% | 21% |
State taxes (net of federal income tax benefit and valuation allowance) | 2.20% | 1.76% | 1.21% |
Tax credits | (0.93%) | (0.66%) | (0.77%) |
Change in valuation allowance | (0.03%) | 0.19% | |
Permanent differences | (0.90%) | (0.69%) | (0.74%) |
Uncertain tax positions | 1.90% | 1.99% | 0.74% |
Other | (0.19%) | (0.03%) | (0.05%) |
Effective income tax rate | 23.08% | 23.34% | 21.58% |
INCOME TAXES - Summary of Signi
INCOME TAXES - Summary of Significant Components of Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Intangible asset basis difference | $ 3,224 | $ 15,886 |
Warranty reserves | 7,448 | 6,515 |
Accrued selling | 2,177 | 390 |
Capitalized research costs | 1,835 | 0 |
Stock compensation | 1,463 | 1,183 |
Unrecognized tax benefits | 1,328 | 1,145 |
Inventory | 504 | 1,142 |
Net operating loss | 750 | 705 |
Other | 1,463 | 943 |
Total deferred tax assets | 20,192 | 27,909 |
Valuation allowance | (2) | (2) |
Total deferred tax assets, net of the valuation allowance | 20,190 | 27,907 |
Deferred tax liabilities: | ||
Depreciation | (6,201) | (5,404) |
Other | (1,561) | (978) |
Total deferred tax liabilities | (7,762) | (6,382) |
Net deferred tax assets | $ 12,428 | $ 21,525 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Unrecognized Tax Benefits Excluding Accrued Amounts for Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||
Balance at beginning of period | $ 5,513 | $ 3,304 |
Additions based on tax positions related to the current year | 1,289 | 2,004 |
Additions for tax positions of prior years | 30 | 296 |
Reductions for tax positions of prior years | (600) | (91) |
Balance at end of period | $ 6,232 | $ 5,513 |
SHARE-BASED COMPENSATION - 2015
SHARE-BASED COMPENSATION - 2015 Equity Incentive Plan - Additional Information (Details) | Jun. 30, 2023 shares |
2015 Plan | |
Stock-Based Compensation | |
Shares available for grant | 1,045,380 |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Components of Share-based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-Based Compensation | |||
Share-based compensation expense | $ 3,656 | $ 3,510 | $ 2,932 |
Restricted stock awards | |||
Stock-Based Compensation | |||
Share-based compensation expense | 2,283 | 1,684 | 1,541 |
Performance stock units | |||
Stock-Based Compensation | |||
Share-based compensation expense | $ 1,373 | $ 1,826 | $ 1,391 |
SHARE-BASED COMPENSATION - Sche
SHARE-BASED COMPENSATION - Schedule of Income Tax Benefit Related to Share-based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-Based Compensation | |||
Share-based compensation expense | $ 849 | $ 799 | $ 651 |
Restricted stock awards | |||
Stock-Based Compensation | |||
Share-based compensation expense | 530 | 383 | 342 |
Performance stock units | |||
Stock-Based Compensation | |||
Share-based compensation expense | $ 319 | $ 416 | $ 309 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Awards - Additional Information (Details) - Restricted stock awards - 2015 Plan - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-Based Compensation | |||
Fair value of vested shares | $ 3.2 | $ 2.4 | $ 1.6 |
Unrecognized compensation expense | $ 1.8 | ||
Weighted average period | 1 year 6 months | ||
Minimum | Employees | |||
Stock-Based Compensation | |||
Vesting period (in years) | 1 year | ||
Maximum | Employees | |||
Stock-Based Compensation | |||
Vesting period (in years) | 3 years |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Restricted Stock Awards Activity (Details) - 2015 Plan - Restricted stock awards - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Number of Stock Units | |||
Total Non-vested Stock Awards/Units at beginning of year | 106,408 | 118,193 | 106,894 |
Granted | 104,657 | 95,753 | 93,357 |
Vested | (112,789) | (99,004) | (73,385) |
Forfeited | (6,369) | (8,534) | (8,673) |
Total Non-vested Stock Awards/Units at end of year | 91,907 | 106,408 | 118,193 |
Weighted Average Grant Date Fair Value | |||
Total Non-vested Stock Awards/Units at beginning of year | $ 21.65 | $ 19.42 | $ 18.01 |
Granted | 23.91 | 25.04 | 20.34 |
Vested | 22.1 | 22.01 | 18.54 |
Forfeited | 21.83 | 24.65 | 19.29 |
Total Non-vested Stock Awards/Units at end of year | $ 23.66 | $ 21.65 | $ 19.42 |
SHARE-BASED COMPENSATION - Perf
SHARE-BASED COMPENSATION - Performance Stock Units - Additional Information (Details) - Performance stock units - 2015 Plan - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-Based Compensation | |||
Fair value of vested shares | $ 1.7 | $ 2.1 | $ 0.4 |
Unrecognized compensation expense | $ 1.5 | ||
Weighted average period | 1 year 10 months 24 days |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of Performance Stock Units Activity (Details) - 2015 Plan - Performance stock units - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Number of Stock Units | |||
Total Non-vested Stock Awards/Units at beginning of year | 105,190 | 160,285 | 67,404 |
Granted | 76,567 | 53,842 | 123,096 |
Vested | (56,790) | (99,860) | (14,627) |
Forfeited | (1,996) | (9,077) | (15,588) |
Total Non-vested Stock Awards/Units at end of year | 122,971 | 105,190 | 160,285 |
Weighted Average Grant Date Fair Value | |||
Total Non-vested Stock Awards/Units at beginning of year | $ 25.3 | $ 21.03 | $ 20.02 |
Granted | 26.08 | 28.73 | 22.11 |
Vested | 22.38 | 20.16 | 26.29 |
Forfeited | 26.15 | 26.71 | 20.25 |
Total Non-vested Stock Awards/Units at end of year | $ 27.12 | $ 25.3 | $ 21.03 |
SHARE-BASED COMPENSATION - Nonq
SHARE-BASED COMPENSATION - Nonqualified Stock Option Awards - Additional Information (Details) | 1 Months Ended |
Jul. 31, 2015 shares | |
2015 Plan | Nonqualified stock options | Certain employees | |
Stock-Based Compensation | |
Options granted | 137,786 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary of Nonqualified Stock Options Activity (Details) - 2015 Plan - Nonqualified stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Shares | ||||
Outstanding at beginning of year | 15,146 | 24,440 | 32,392 | |
Exercised | (15,146) | (9,294) | (7,952) | |
Outstanding at end of year | 0 | 15,146 | 24,440 | 32,392 |
Weighted Average Exercise Price | ||||
Outstanding at beginning of year | $ 10.7 | $ 10.7 | $ 10.7 | |
Exercised | $ 10.7 | 10.7 | 10.7 | |
Outstanding at end of year | $ 10.7 | $ 10.7 | $ 10.7 | |
Weighted Average Remaining Contractual Term | ||||
Outstanding | 3 years 1 month 6 days | 4 years 1 month 6 days | 5 years 1 month 6 days | |
Aggregate Intrinsic Value | ||||
Outstanding at beginning of year | $ 157 | $ 381 | $ 270 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Repurchase Agreements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Repurchase Obligations | ||
Inventory repurchase contingent obligation | $ 1,515 | $ 661 |
Obligation to Repurchase Inventory | ||
Repurchase Obligations | ||
Maximum repurchase obligation under floor plan agreements | 53,100 | 46,000 |
Inventory repurchase contingent obligation | $ 1,600 | $ 700 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Purchase Commitments - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Purchase commitments penalties incurred | $ 0 | $ 0 | $ 0 |
Purchase agreement expiration date | Jun. 30, 2025 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Operating Leases - Additional Information (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
Lessee, operating lease, option to extend [true false] | true |
Lessee, operating lease, option to terminate [true false] | true |
EARNINGS PER SHARE AND COMMON_3
EARNINGS PER SHARE AND COMMON STOCK - Factors Used in Earnings Per Share Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jun. 30, 2022 | Apr. 03, 2022 | Jan. 02, 2022 | Oct. 03, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share Basic [Line Items] | |||||||||||
Net income from continuing operations | $ 23,052 | $ 22,782 | $ 19,983 | $ 24,635 | $ 33,548 | $ 24,306 | $ 17,859 | $ 12,232 | $ 90,452 | $ 87,945 | $ 58,438 |
Loss from discontinued operations, net of tax | $ (376) | $ (272) | $ (300) | $ (20,567) | $ (22,057) | $ (3,371) | $ (2,457) | $ (1,846) | (21,515) | (29,731) | (2,268) |
Net income | $ 68,937 | $ 58,214 | $ 56,170 | ||||||||
Weighted average shares - basic | 17,299,562 | 17,559,920 | 17,669,645 | 17,946,061 | 17,952,267 | 18,295,949 | 18,722,386 | 18,850,301 | 17,618,797 | 18,455,226 | 18,805,464 |
Weighted average outstanding shares — diluted | 17,505,504 | 17,748,910 | 17,774,329 | 18,031,725 | 18,155,449 | 18,487,346 | 18,899,136 | 19,004,119 | 17,765,117 | 18,636,512 | 18,951,521 |
Basic net income (loss) per share | |||||||||||
Continuing operations | $ 1.33 | $ 1.3 | $ 1.13 | $ 1.38 | $ 1.87 | $ 1.33 | $ 0.95 | $ 0.65 | $ 5.13 | $ 4.77 | $ 3.11 |
Discontinued operations | (0.02) | (0.02) | (0.02) | (1.15) | (1.23) | (0.19) | (0.13) | (0.1) | (1.22) | (1.62) | (0.12) |
Net income | 1.31 | 1.28 | 1.11 | 0.23 | 0.64 | 1.14 | 0.82 | 0.55 | 3.91 | 3.15 | 2.99 |
Diluted net income (loss) per share | |||||||||||
Continuing operations | 1.32 | 1.28 | 1.12 | 1.37 | 1.85 | 1.31 | 0.94 | 0.65 | 5.09 | 4.72 | 3.08 |
Discontinued operations | (0.02) | (0.01) | (0.01) | (1.14) | (1.22) | (0.18) | (0.13) | (0.1) | (1.21) | (1.6) | (0.12) |
Net income | $ 1.3 | $ 1.27 | $ 1.11 | $ 0.23 | $ 0.63 | $ 1.13 | $ 0.81 | $ 0.55 | $ 3.88 | $ 3.12 | $ 2.96 |
Stock options | |||||||||||
Earnings Per Share Basic [Line Items] | |||||||||||
Dilutive effect of assumed exercises of stock options and restricted share awards/units | 5,270 | 11,110 | 14,814 | ||||||||
Restricted stock awards | |||||||||||
Earnings Per Share Basic [Line Items] | |||||||||||
Dilutive effect of assumed exercises of stock options and restricted share awards/units | 141,050 | 170,176 | 131,243 |
EARNINGS PER SHARE AND COMMON_4
EARNINGS PER SHARE AND COMMON STOCK - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 24, 2023 | Jun. 24, 2021 | |
Class Of Stock [Line Items] | |||||
Repurchase of shares in cash, including related fees and expenses | $ 22,949,000 | $ 25,454,000 | $ 0 | ||
Stock repurchase program, remained available under the program | $ 1,600,000 | ||||
Common Stock | |||||
Class Of Stock [Line Items] | |||||
Stock repurchase program, number of shares authorized | $ 50,000,000 | ||||
Number of shares repurchased | 872,055 | 975,161 | 0 | ||
Subsequent Event [Member] | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Stock repurchase program, number of shares authorized | $ 50,000,000 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Operating Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jun. 30, 2022 | Apr. 03, 2022 | Jan. 02, 2022 | Oct. 03, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 166,566 | $ 166,776 | $ 159,188 | $ 169,516 | $ 197,216 | $ 169,343 | $ 144,400 | $ 130,650 | $ 662,046 | $ 641,609 | $ 465,962 |
Operating income (loss) | 29,206 | $ 29,026 | $ 26,461 | $ 32,222 | 44,592 | $ 31,604 | $ 23,619 | $ 16,380 | 116,915 | 116,195 | 78,643 |
Depreciation and amortization | 10,569 | 9,731 | 8,368 | ||||||||
Goodwill impairment | 0 | 1,100 | 0 | ||||||||
Purchases of property, plant and equipment | 30,323 | 12,296 | 25,219 | ||||||||
Total assets | 353,976 | 297,052 | 353,976 | 297,052 | |||||||
MasterCraft | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 468,656 | 466,027 | 350,812 | ||||||||
Operating income (loss) | 101,324 | 105,341 | 73,354 | ||||||||
Depreciation and amortization | 5,555 | 4,968 | 4,479 | ||||||||
Goodwill impairment | 0 | ||||||||||
Purchases of property, plant and equipment | 17,414 | 6,642 | 5,273 | ||||||||
MasterCraft | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 259,201 | 178,386 | 259,201 | 178,386 | |||||||
Crest | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 141,247 | 140,859 | 102,688 | ||||||||
Operating income (loss) | 20,106 | 19,892 | 13,605 | ||||||||
Depreciation and amortization | 2,841 | 2,665 | 2,503 | ||||||||
Goodwill impairment | 0 | ||||||||||
Purchases of property, plant and equipment | 7,149 | 4,193 | 892 | ||||||||
Crest | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 53,435 | 53,956 | 53,435 | 53,956 | |||||||
Aviara | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 52,143 | 34,723 | 12,462 | ||||||||
Operating income (loss) | (4,515) | (9,038) | (8,316) | ||||||||
Depreciation and amortization | 2,173 | 2,098 | 1,386 | ||||||||
Goodwill impairment | 1,100 | ||||||||||
Purchases of property, plant and equipment | 5,760 | 1,461 | $ 19,054 | ||||||||
Aviara | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 41,340 | 35,115 | 41,340 | 35,115 | |||||||
Discontinued operations | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | $ 0 | $ 29,595 | $ 0 | $ 29,595 |
QUARTERLY FINANCIAL REPORTING -
QUARTERLY FINANCIAL REPORTING - Schedule of retrospective presentation of discontinued operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jun. 30, 2022 | Apr. 03, 2022 | Jan. 02, 2022 | Oct. 03, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net sales | $ 166,566 | $ 166,776 | $ 159,188 | $ 169,516 | $ 197,216 | $ 169,343 | $ 144,400 | $ 130,650 | $ 662,046 | $ 641,609 | $ 465,962 |
Gross Profit | 42,915 | 42,598 | 38,227 | 45,973 | 57,173 | 44,074 | 36,361 | 30,582 | 169,713 | 168,190 | 125,131 |
Operating income | 29,206 | 29,026 | 26,461 | 32,222 | 44,592 | 31,604 | 23,619 | 16,380 | 116,915 | 116,195 | 78,643 |
Net income from continuing operations | 23,052 | 22,782 | 19,983 | 24,635 | 33,548 | 24,306 | 17,859 | 12,232 | 90,452 | 87,945 | 58,438 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (Note 3) | (376) | (272) | (300) | (20,567) | (22,057) | (3,371) | (2,457) | (1,846) | (21,515) | (29,731) | (2,268) |
Net Income (Loss) | $ 22,676 | $ 22,510 | $ 19,683 | $ 4,068 | $ 11,491 | $ 20,935 | $ 15,402 | $ 10,386 | $ 68,937 | $ 58,214 | $ 56,170 |
Basic net income (loss) per share | |||||||||||
Continuing operations | $ 1.33 | $ 1.3 | $ 1.13 | $ 1.38 | $ 1.87 | $ 1.33 | $ 0.95 | $ 0.65 | $ 5.13 | $ 4.77 | $ 3.11 |
Discontinued operations | (0.02) | (0.02) | (0.02) | (1.15) | (1.23) | (0.19) | (0.13) | (0.1) | (1.22) | (1.62) | (0.12) |
Net income | 1.31 | 1.28 | 1.11 | 0.23 | 0.64 | 1.14 | 0.82 | 0.55 | 3.91 | 3.15 | 2.99 |
Diluted net income (loss) per share | |||||||||||
Continuing operations | 1.32 | 1.28 | 1.12 | 1.37 | 1.85 | 1.31 | 0.94 | 0.65 | 5.09 | 4.72 | 3.08 |
Discontinued operations | (0.02) | (0.01) | (0.01) | (1.14) | (1.22) | (0.18) | (0.13) | (0.1) | (1.21) | (1.6) | (0.12) |
Net income | $ 1.3 | $ 1.27 | $ 1.11 | $ 0.23 | $ 0.63 | $ 1.13 | $ 0.81 | $ 0.55 | $ 3.88 | $ 3.12 | $ 2.96 |
Basic earnings per common share | 17,299,562 | 17,559,920 | 17,669,645 | 17,946,061 | 17,952,267 | 18,295,949 | 18,722,386 | 18,850,301 | 17,618,797 | 18,455,226 | 18,805,464 |
Diluted earnings per common share | 17,505,504 | 17,748,910 | 17,774,329 | 18,031,725 | 18,155,449 | 18,487,346 | 18,899,136 | 19,004,119 | 17,765,117 | 18,636,512 | 18,951,521 |