MasterCraft Boat (MCFT) 10-Q 5 Feb 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 27, 2015	Feb. 02, 2016
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 27, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Registrant Name	MCBC Holdings, Inc.
Entity Central Index Key	1,638,290
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		18,887,971

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2015	Dec. 28, 2014	Dec. 27, 2015	Dec. 28, 2014
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
NET SALES	$ 55,203	$ 52,827	$ 111,184	$ 105,251
COST OF SALES	39,838	40,131	79,980	79,774
GROSS PROFIT	15,365	12,696	31,204	25,477
OPERATING EXPENSES:
Selling and marketing	2,882	1,982	5,359	4,122
General and administrative	9,647	2,644	18,934	5,203
Amortization of intangible assets	56	57	111	112
Total operating expenses	12,585	4,683	24,404	9,437
OPERATING INCOME	2,780	8,013	6,800	16,040
OTHER EXPENSE:
Interest expense	44	1,111	1,008	2,398
Change in common stock warrant fair value	55	2,882	3,401	5,765
INCOME BEFORE INCOME TAX EXPENSE	2,681	4,020	2,391	7,877
INCOME TAX EXPENSE	811	2,546	1,844	4,985
NET INCOME	$ 1,870	$ 1,474	$ 547	$ 2,892
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.10	$ 0.13	$ 0.03	$ 0.26
Diluted (in dollars per share)	$ 0.10	$ 0.13	$ 0.03	$ 0.25
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF:
Basic earnings per share (in shares)	17,998,796	11,139,000	17,131,295	11,139,000
Diluted earnings per share (in shares)	18,606,884	11,642,716	17,824,985	11,568,898

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 27, 2015	Jun. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 15,641	$ 1,167
Accounts receivable — net of allowances of $74 and $92, respectively	1,753	2,653
Income tax receivable	474
Inventories, net	11,286	11,541
Prepaid expenses and other current assets	5,480	7,235
Deferred income taxes	8,331	6,733
Total current assets	42,965	29,329
Property, plant and equipment - net	13,188	13,233
Intangible assets - net	16,860	16,971
Goodwill	29,593	29,593
Deferred debt issuance costs - net	371	425
Other	125	125
Total assets	103,102	89,676
CURRENT LIABILITIES
Accounts payable	9,509	14,808
Income tax payable		224
Accrued expenses and other current liabilities	20,580	21,313
Common stock warrant liability (in dollars)	258	9,147
Current portion of long term debt		18,275
Total current liabilities	30,347	63,767
OTHER LIABILITIES:
Long-term debt		60,487
Unrecognized tax positions	1,519	519
Deferred income taxes	6,661	7,156
Total liabilities	$ 38,527	$ 131,929
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 17,999,244 shares at December 27, 2015 and 11,139,000 shares at June 30, 2015	$ 180	$ 111
Additional paid-in capital	115,053	8,841
Accumulated deficit	(50,658)	(51,205)
Total stockholders' equity (deficit)	64,575	(42,253)
Total liabilities and stockholders' equity (deficit)	$ 103,102	$ 89,676

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 27, 2015	Jun. 30, 2015
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 74	$ 92
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	100,000,000
Common stock, issued shares	17,999,244	11,139,000
Common stock, outstanding shares	17,999,244	11,139,000

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) - 6 months ended Dec. 27, 2015 - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance, beginning at Jun. 30, 2015	$ 111	$ 8,841	$ (51,205)	$ (42,253)
Balance, beginning (in shares) at Jun. 30, 2015	11,139,000
Increase (decrease) in stockholders' equity
Sale of common stock in IPO, net of $9,309 in underwriter discounts, commissions and offering expenses	$ 61	81,701		81,762
Sale of common stock in IPO, net of $9,309 in underwriter discounts, commissions and offering expenses (in shares)	6,071,429
Issuance of shares in exchange of common stock warrants	$ 8	12,282		12,290
Issuance of shares in exchange of common stock warrants (in shares)	788,815
Equity-based compensation		12,229		12,229
Net income			547	547
Balance, ending at Dec. 27, 2015	$ 180	$ 115,053	$ (50,658)	$ 64,575
Balance, ending (in shares) at Dec. 27, 2015	17,999,244

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY (Parenthetical) $ in Thousands	6 Months Ended
	Dec. 27, 2015USD ($)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)
Underwriter discounts, commission and offering expenses	$ 9,309

UNAUDITED CONDENSED CONSOLIDAT7

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 27, 2015	Dec. 28, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 547	$ 2,892
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,667	1,536
Inventory obsolescence reserve	151	685
Non-cash interest expenses:
Paid in kind interest		1,034
Amortization of deferred financing costs	15	61
Stock-based compensation	12,229
Loss on extinguishment of debt	716	137
Change in common stock warrant fair value	3,401	5,765
Unrecognized tax benefits	1,000	(157)
Deferred income tax benefit	(2,093)	4,811
Net provision for doubtful accounts	(17)	(240)
Changes in operating assets and liabilities:
Accounts receivable	917	3,334
Inventories	104	(387)
Prepaid expenses and other current assets	(351)	(2,721)
Accounts payable	(5,300)	(3,432)
Income taxes	(698)	(101)
Accrued expenses and other current liabilities	(733)	3,220
Net cash provided by operating activities	11,555	16,437
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(1,511)	(1,657)
Net cash used in investing activities	(1,511)	(1,657)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	91,071
Proceeds from issuance of long-term debt		50,000
Payment of costs directly associated with the issuance of common stock	(7,202)
Principal payments on long-term debt	(71,250)	(67,014)
Debt discount		(717)
Payments on revolving line of credit	(8,189)
Net cash provided by (used in) financing activities	4,430	(17,731)
NET CHANGE IN CASH AND CASH EQUIVALENTS	14,474	(2,951)
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD	1,167	12,539
CASH AND CASH EQUIVALENTS — END OF PERIOD	15,641	9,588
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for interest	321	1,078
Cash payments for income taxes	3,634	$ 506
Common stock warrant
SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of shares in exchange of common stock warrants	$ 12,290

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	6 Months Ended
	Dec. 27, 2015
ORGANIZATION AND NATURE OF BUSINESS
ORGANIZATION AND NATURE OF BUSINESS	1 . OR GANIZATION AND NATURE OF BUSINESS MCBC Holdings, Inc. (“MCBC” or the “Company”) was formed on January 28, 2000, as a Delaware holding company that operates primarily through its wholly owned subsidiaries, MasterCraft Boat Company, LLC and MCBC Hydra Boats, LLC. MCBC and its subsidiaries collectively are referred to herein as the “Company”. The Company is a designer and manufacturer of premium inboard tournament ski boats and luxury performance V-drive runabouts under the MasterCraft brand. The Company also leases a parts warehouse in the United Kingdom to expedite service, primarily to dealers and customers in the European Union.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 27, 2015
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	2 . BASIS OF PRESENTATION A ND SIGNIFICANT ACCOUNTING POLICIES The Company's fiscal year begins July 1 and ends June 30, with the interim quarterly reporting periods consisting of 13 weeks. Therefore, the quarter end will not always coincide with the date of the end of the calendar month. The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for financial information have been condensed or omitted pursuant to such rules and regulations. The June 30, 2015 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by U.S. GAAP for complete financial statements. However, management believes that the disclosures in these condensed consolidated financial statements are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015 . The unaudited condensed consolidated financial statements have been prepared on the same basis as the Company's audited consolidated financial statements for the year ended June 30, 2015 and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company's financial position as of December 27, 2015 and results of its operations, and its cash flows for the six months ended December 27, 2015 and December 28, 2014 and statement of shareholders' equity for the six months ended December 27, 2015 . All adjustments are of a normal recurring nature. Our interim operating results for the six months ended December 27, 2015 and December 28, 2014 are not necessarily indicative of the results to be expected in future operating quarters. There have been no changes in the Company's significant accounting policies or critical accounting estimates for the six months ended December 27, 2015 as compared with the significant accounting policies described in the Company's audited consolidated financial statements for the financial year ended June 30, 2015 . Initial Public Offering — On July 22, 2015, the Company completed the initial public offering of its common stock, in which it issued and sold 6,071,429 shares of common stock (exclusive of 910,714 shares of common stock sold by the selling stockholders pursuant to the exercise of an overallotment option granted to the underwriters in connection with the offering) at a public offering price of $15.00 per share after giving effect to the 11.139 -for-1 stock split consummated on July 22, 2015. The aggregate net proceeds received by the Company from our initial public offering were $81,762 , after deducting $6,375 for underwriting discounts and commissions and $2,934 for offering expenses paid by the Company of which $827 were incurred during the six months ended December 27, 2015. These condensed consolidated financial statements give effect retrospectively to the stock split consummated on July 22, 2015. Reclassifications — Certain amounts in prior periods have been reclassified to conform with the presentation adopted in the current period. Recently Issued Accounting Standards — In July 2015, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2015-11, Simplifying the Measurement of Inventory. This ASU changes the measurement principle for inventories valued under the First-In, First-Out ("FIFO") or weighted-average methods from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined by the FASB as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU does not change the measurement principles for inventories valued under the Last-In, First-Out ("LIFO") method. The Company is currently evaluating the impact of adopting this ASC amendment. In May 2014, the FASB and International Accounting Standards Board jointly issued new principles-based accounting guidance for revenue recognition that will supersede virtually all existing revenue guidance. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve the core principle, the guidance establishes the following five steps: 1) identify the contract(s) with a customer, 2) identify the performance obligation in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also details the accounting treatment for costs to obtain or fulfill a contract. Lastly, disclosure requirements have been enhanced to provide sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB announced that the implementation date would be delayed by one year. It will now be effective for annual and interim periods beginning after December 15, 2017. Early adoption is now permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this new guidance is expected to have on our financial position or results of operations and related disclosures.

INVENTORIES

INVENTORIES	6 Months Ended
	Dec. 27, 2015
INVENTORIES
INVENTORIES	3 . INVENTORIES Inventories at December 27, 2015 and June 30, 2015 consisted of the following: December 27, 2015 June 30, 2015 Raw materials and supplies $ $ Work in process Finished goods Obsolescence reserve Total inventories $ $

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	6 Months Ended
	Dec. 27, 2015
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS	4 . PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets at December 27, 2015 and June 30, 2015 , consisted of the following: December 27, 2015 June 30, 2015 Prepaid photo shoot $ $ Insurance Trade show deposits Warranty Insurance Deferred IPO costs — Other Total prepaid expenses and other current assets $ $

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	6 Months Ended
	Dec. 27, 2015
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities at December 27, 2015 and June 30, 2015 , consisted of the following: December 27, 2015 June 30, 2015 Warranty $ $ Self-insurance Compensation and related accruals Inventory repurchase contingent obligation Interest Dealer incentives Other Total accrued expenses and other current liabilities $ $

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Dec. 27, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	6 . 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 assumptions that market participants would use in pricing an asset or liability. When determining the fair value measurements for assets or liabilities required or permitted to be recorded at and/or marked to 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 following tables summarize the basis used to measure certain financial assets and liabilities at fair value on a recurring basis in the consolidated balance sheets: The Company classifies the common stock warrant within Level 3 because it was valued using valuation techniques using certain inputs that are unobservable in the market. Liabilities, measured at fair value on a recurring basis include the following as of December 27, 2015 and June 30, 2015: December 27, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Liability — common stock warrant $ — $ — $ June 30, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Liability — common stock warrant $ — $ — $ The Company had previously issued a common stock warrant for the purchase of 1,113,900 shares of common stock. The strike price is $4.27 per share and is subject to adjustment based on stock splits, stock dividends and certain other events or transactions. The warrant will expire in June 2019 if not exercised. As of June 30, 2015, the Company used an option pricing model to estimate the fair value of the warrant. Key inputs used in valuing the Company’s warrant include the Company’s common stock price (estimated using a combination of the income and market approach), the Company’s common stock price volatility, risk-free interest rate, and exercise price of the warrant. The estimated expected volatility was based on the volatility of common stock of a group of comparable, publicly traded companies. As of December 27, 2015 , the Company estimated the common stock warrant assuming a hypothetical net exchange based on the Company’s closing common stock price on that date. The decrease in the amount of the warrant liability was primarily due to holders exchanging their warrants for common stock, as over 97% of warrants that were outstanding as of June 30, 2015 were exchanged during the six months ended December 27, 2015. As of December 27, 2015 , there have been 788,815 shares of common stock issued in exchange of common stock warrants and there were 26,143 common stock warrants that remained outstanding for the purchase of shares of common stock. The Company classifies the warrant as a liability and records the liability at the estimated fair value at each reporting date. At December 27, 2015 and June 30, 2015, the common stock warrant liability was $258 and $9,147 , respectively. The following table shows the reconciliation from the beginning to the ending balance for the Company’s common stock warrant liability measured at fair value on a recurring basis using significant unobservable inputs (i.e. Level 3): December 27, 2015 December 28, 2014 Beginning balance $ $ Issuance of shares in exchange for common stock warrant — Change in common stock warrant fair value Ending balance $ $ At December 27, 2015 the Company estimated the common stock warrant assuming a hypothetical cashless net exchange based on the Company’s closing common stock price on December 24, 2015. The Company estimated the common stock warrant using an option pricing model with the following assumptions at June 30, 2015: June 30, 2015 Expected term (in years) Risk-free rate % Expected volatility % Dividend rate — %

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Dec. 27, 2015
LONG-TERM DEBT
LONG-TERM DEBT	7 . LONG-TERM DEBT On July 22, 2015, the Company repaid all outstanding borrowings under its $75,000 term loan facility and its outstanding borrowings under its $30,000 revolving line of credit with the proceeds received from the IPO. As a result, the Company had no borrowings outstanding on the revolving line of credit as of December 27, 2015 . As of June 30, 2015 , the Company had borrowings of $8,189 outstanding on the revolving line of credit. Availability under the revolving line of credit is reduced by letters of credit. There were specified letters of credit outstanding of $1,175 at December 27, 2015 and June 30, 2015 , respectively. The net revolving line of credit availability as of December 27, 2015 and June 30, 2015 was $28,825 and $20,636 , respectively. As of December 27, 2015 the Company was in compliance with all of its debt covenants under its line of credit. As of December 27, 2015 and June 30, 2015 , the Company's unamortized deferred financing costs were $371 and $425 , respectively. These costs are being amortized over the term of its revolving line of credit. In connection with the repayment of the $75,000 term loan facility, the Company recorded a loss on debt extinguishment of $716 , consisting of a charge of $676 to extinguish the debt discount and $40 in unamortized deferred financing costs.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 27, 2015
INCOME TAXES
INCOME TAXES	8 . INCOME TAXES The Company’s provision for incom e taxes as a percentage of pretax earnings ("effective tax rate") is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items. During the six months ended December 27, 2015 the effective tax rate was 77.1 percent. The rate was higher than the federal statutory rate primarily due to the permanent differences relating to the change in fair value of the common stock warrant. During the six months ended December 28, 2014 the effective tax rate was 63.3 percent. The rate was higher than the federal statutory rate primarily due to the permanent differences relating to the change in fair value of the common stock warrant.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 27, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	9 . COMMITMENTS AND CONTINGENCIES On June 29, 2015, Malibu Boats, LLC (“Malibu”) filed a complaint in the United States District Court for the Eastern District of Tennessee alleging that each of our Gen 2 Surf System and NXT Surf System infringe a Malibu patent relating to Malibu’s wake surf technology. The complaint seeks trebled damages in an unspecified amount, attorneys’ fees and an injunction against future infringement. On August 13, 2015, the Company filed a motion with the court for summary judgment. The court has not yet ruled on this motion. The Company does not believe that Malibu’s claims have merit and we intend to defend against these claims vigorously.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Dec. 27, 2015
EARNINGS PER SHARE
EARNINGS PER SHARE	10. EARNINGS PER SHARE The following table sets forth the computation of the Company’s earnings per share: Three Months Ended Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Net income $ $ $ $ Weighted average common shares — basic Dilutive effect of assumed exercises of stock options Dilutive effect of assumed restricted share awards — — Dilutive effect of assumed exercises of common stock warrant Weighted average outstanding shares — diluted Basic earnings per share $ $ $ $ Diluted earnings per share $ $ $ $ For the three and six months ended December 27, 2015 , the weighted average shares that were anti-dilutive, and therefore excluded from the computation of diluted earnings per share included options to purchase 137,786 and 125,401 shares of common stock, respectively. There were no anti-dilutive shares excluded from the dilutive shares outstanding for the three and six months ended December 28, 2014 .

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Dec. 27, 2015
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	11. STOCK-BASED COMPENSATION On July 16, 2015, the Company's board of directors amended and restated the Company's 2015 Equity Incentive Plan ("2015 Plan"), which became effective just prior to the closing of the Company's IPO, to among other things, increase the shares available for issuance under the 2015 Plan from 1,518,958 shares to 2,458,633 shares. The Plan provides for the grant of stock options, including incentive stock options, or ISOs, and nonqualified stock options, or NSOs, restricted stock, dividend equivalents, stock payments, restricted stock units, or RSUs, deferred stock, deferred stock units, performance awards, SARs, and cash awards. On May 29, 2015, the Company granted to certain employees 841,585 shares of restricted stock under the 2015 Plan at a per share fair value of $15.00 , which was the initial public offering price. The award included performance conditions that were based on either an initial public offering or a change in control and until consummation of the event it was not considered probable for accounting purposes. On July 24, 2015, the Company granted 47,146 shares of restricted stock under the 2015 Plan to certain non-employee directors at a per share fair value of $15.66 , which was the closing price of the stock on July 24, 2015. For these restricted stock awards, the Company will recognize stock-based compensation on a straight-line basis through 181 days from the Company’s initial public offering date. During the three and six months ended December 27, 2015, the Company recognized $6,733 and $12,102 , respectively in stock-based compensation from these restricted stock awards. On July 16, 2015, the Company granted 137,786 NSOs to certain employees at an option price equal to the $15.00 per share of the Company’s common stock, which was the initial public offering price, which will vest in 25% increments annually on each of the first four anniversaries of the grant date. During the three and six months ended December 27, 2015, the Company recognized $71 and $127 , respectively in stock-based compensation from these NSOs. We estimated the grant date fair value of stock options using the Black-Scholes pricing model assuming a risk-free interest rate of 1.93% , an expected term of 6.25 years, no dividend yield and a volatility rate of 56.7% . There was no stock-based compensation recognized for the three and six months ended December 28, 2014.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Dec. 27, 2015
SEGMENT INFORMATION
SEGMENT INFORMATION	12. SEGMENT INFORMATION The Company previously reported two operating and reportable segments: MasterCraft and Hydra-Sports. However, the manufacturing agreement with Hydra-Sports expired on June 30, 2015 and the Company did not renew it. The MasterCraft product brand consists of recreational performance boats primarily used for water skiing, wakeboarding and wake surfing, and general recreational boating. The Company distributes the MasterCraft product brand through its dealer network. Net sales outside of North America accounted for 8.1% and 8.0% of net sales for the three and six months ended December 27, 2015, respectively. Net sales outside of North America accounted for 9.3% and 9.2% for the three and six months ended December 28, 2014 , respectively. For the three months ended December 27, 2015 , the operating information for the reportable segments is shown as follows: Three Months Ended December 27, 2015 MasterCraft Hydra-Sports Consolidated Net sales $ $ — $ Cost of sales — Operating income — Depreciation and amortization — For the three months ended December 28, 2014 , the operating information for the reportable segments is shown as follows: Three Months Ended December 28, 2014 MasterCraft Hydra-Sports Consolidated Net sales $ $ $ Cost of sales Operating income Depreciation and amortization For the six months ended December 27, 2015 , the operating information for the reportable segments is shown as follows: Six Months Ended December 27, 2015 MasterCraft Hydra-Sports Consolidated Net sales $ $ — $ Cost of sales — Operating income — Depreciation and amortization — For the six months ended December 28, 2014 , the operating information for the reportable segments is shown as follows: Six Months Ended December 28, 2014 MasterCraft Hydra-Sports Consolidated Net sales $ $ $ Cost of sales Operating income Depreciation and amortization

BASIS OF PRESENTATION AND SIG20

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 27, 2015
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Fiscal Period	The Company's fiscal year begins July 1 and ends June 30, with the interim quarterly reporting periods consisting of 13 weeks. Therefore, the quarter end will not always coincide with the date of the end of the calendar month.
Principles of Consolidation	The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of the results of operations and statements of financial position for the interim periods presented. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for financial information have been condensed or omitted pursuant to such rules and regulations. The June 30, 2015 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by U.S. GAAP for complete financial statements. However, management believes that the disclosures in these condensed consolidated financial statements are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015 .
Basis of Accounting	The unaudited condensed consolidated financial statements have been prepared on the same basis as the Company's audited consolidated financial statements for the year ended June 30, 2015 and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company's financial position as of December 27, 2015 and results of its operations, and its cash flows for the six months ended December 27, 2015 and December 28, 2014 and statement of shareholders' equity for the six months ended December 27, 2015 . All adjustments are of a normal recurring nature. Our interim operating results for the six months ended December 27, 2015 and December 28, 2014 are not necessarily indicative of the results to be expected in future operating quarters.
Reclassifications	Reclassifications — Certain amounts in prior periods have been reclassified to conform with the presentation adopted in the current period.
Recently Issued Accounting Standards	Recently Issued Accounting Standards — In July 2015, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2015-11, Simplifying the Measurement of Inventory. This ASU changes the measurement principle for inventories valued under the First-In, First-Out ("FIFO") or weighted-average methods from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined by the FASB as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU does not change the measurement principles for inventories valued under the Last-In, First-Out ("LIFO") method. The Company is currently evaluating the impact of adopting this ASC amendment. In May 2014, the FASB and International Accounting Standards Board jointly issued new principles-based accounting guidance for revenue recognition that will supersede virtually all existing revenue guidance. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve the core principle, the guidance establishes the following five steps: 1) identify the contract(s) with a customer, 2) identify the performance obligation in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also details the accounting treatment for costs to obtain or fulfill a contract. Lastly, disclosure requirements have been enhanced to provide sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB announced that the implementation date would be delayed by one year. It will now be effective for annual and interim periods beginning after December 15, 2017. Early adoption is now permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this new guidance is expected to have on our financial position or results of operations and related disclosures.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Dec. 27, 2015
INVENTORIES
INVENTORIES	December 27, 2015 June 30, 2015 Raw materials and supplies $ $ Work in process Finished goods Obsolescence reserve Total inventories $ $

PREPAID EXPENSES AND OTHER CU22

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Dec. 27, 2015
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS	December 27, 2015 June 30, 2015 Prepaid photo shoot $ $ Insurance Trade show deposits Warranty Insurance Deferred IPO costs — Other Total prepaid expenses and other current assets $ $

ACCRUED EXPENSES AND OTHER CU23

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Dec. 27, 2015
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	December 27, 2015 June 30, 2015 Warranty $ $ Self-insurance Compensation and related accruals Inventory repurchase contingent obligation Interest Dealer incentives Other Total accrued expenses and other current liabilities $ $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Dec. 27, 2015
FAIR VALUE MEASUREMENTS
Liabilities measured at fair value on a recurring basis	December 27, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Liability — common stock warrant $ — $ — $ June 30, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Liability — common stock warrant $ — $ — $
Reconciliation from the beginning to the ending balance for the Company's common stock warrant liability measured at fair value on a recurring basis using Level 3 inputs	December 27, 2015 December 28, 2014 Beginning balance $ $ Issuance of shares in exchange for common stock warrant — Change in common stock warrant fair value Ending balance $ $
Assumptions used for option pricing model of common stock warrant	June 30, 2015 Expected term (in years) Risk-free rate % Expected volatility % Dividend rate — %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Dec. 27, 2015
EARNINGS PER SHARE
Factors used in the earnings per share computation	Three Months Ended Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Net income $ $ $ $ Weighted average common shares — basic Dilutive effect of assumed exercises of stock options Dilutive effect of assumed restricted share awards — — Dilutive effect of assumed exercises of common stock warrant Weighted average outstanding shares — diluted Basic earnings per share $ $ $ $ Diluted earnings per share $ $ $ $

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Dec. 27, 2015
SEGMENT INFORMATION
SEGMENT INFORMATION	For the three months ended December 27, 2015 , the operating information for the reportable segments is shown as follows: Three Months Ended December 27, 2015 MasterCraft Hydra-Sports Consolidated Net sales $ $ — $ Cost of sales — Operating income — Depreciation and amortization — For the three months ended December 28, 2014 , the operating information for the reportable segments is shown as follows: Three Months Ended December 28, 2014 MasterCraft Hydra-Sports Consolidated Net sales $ $ $ Cost of sales Operating income Depreciation and amortization For the six months ended December 27, 2015 , the operating information for the reportable segments is shown as follows: Six Months Ended December 27, 2015 MasterCraft Hydra-Sports Consolidated Net sales $ $ — $ Cost of sales — Operating income — Depreciation and amortization — For the six months ended December 28, 2014 , the operating information for the reportable segments is shown as follows: Six Months Ended December 28, 2014 MasterCraft Hydra-Sports Consolidated Net sales $ $ $ Cost of sales Operating income Depreciation and amortization

BASIS OF PRESENTATION AND SIG27

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Dec. 27, 2015
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Interim quarterly reporting periods	91 days

BASIS OF PRESENTATION AND SIG28

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Initial Public Offering (Details) - Common shares $ / shares in Units, $ in Thousands	Jul. 22, 2015$ / sharesshares	Dec. 27, 2015USD ($)
Initial Public Offering
Stock split, conversion ratio	11.139
IPO
Initial Public Offering
Public offering price per share | $ / shares	$ 15
Proceeds from issuance of common stock, net		$ 81,762
Underwriting discounts and commissions		6,375
Offering expenses of IPO		2,934
Offering expenses		$ 827
IPO, excluding over-allotment options
Initial Public Offering
Shares sold | shares	6,071,429
Over-Allotment Option
Initial Public Offering
Shares sold | shares	910,714

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 27, 2015	Jun. 30, 2015
INVENTORIES
Raw materials and supplies	$ 4,610	$ 4,709
Work in process	2,002	1,783
Finished goods	5,126	5,529
Obsolescence reserve	(452)	(480)
Total inventories	$ 11,286	$ 11,541

PREPAID EXPENSES AND OTHER CU30

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 27, 2015	Jun. 30, 2015
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid photo shoot	$ 644	$ 624
Insurance	278	513
Trade show deposits	332	107
Warranty insurance	3,811	3,012
Deferred IPO costs		2,107
Other	415	872
Total prepaid expenses and other current assets	$ 5,480	$ 7,235

ACCRUED EXPENSES AND OTHER CU31

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 27, 2015	Jun. 30, 2015
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Warranty	$ 10,808	$ 10,228
Self-insurance	662	894
Compensation and related accruals	1,769	2,320
Inventory repurchase contingent obligation	1,068	923
Interest	1,106	790
Dealer incentives	2,784	3,568
Other	2,383	2,590
Total accrued expenses and other current liabilities	$ 20,580	$ 21,313

FAIR VALUE MEASUREMENTS - Recur

FAIR VALUE MEASUREMENTS - Recurring (Details) - USD ($) $ in Thousands	Dec. 27, 2015	Jun. 30, 2015
Level 3 | Recurring
Liabilities measured at fair value on a recurring basis
Liability - common stock warrant	$ 258	$ 9,147

FAIR VALUE MEASUREMENTS - Excha

FAIR VALUE MEASUREMENTS - Exchange of Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Dec. 27, 2015	Jun. 30, 2015
Common stock warrants
Common stock warrant liability (in dollars)	$ 258	$ 9,147
Common stock warrant
Common stock warrants
Number of shares that may be purchased under terms of warrant (in shares)	1,113,900
Strike price per share (in dollars per share)	$ 4.27
Percentage of warrants exchanged for common stock	97.00%
Issuance of shares in exchange of common stock warrants (in shares)	788,815
Common stock warrants outstanding (in shares)	26,143
Warrant liability | Common stock warrant
Common stock warrants
Common stock warrant liability (in dollars)	$ 258	$ 9,147

FAIR VALUE MEASUREMENTS - Level

FAIR VALUE MEASUREMENTS - Level 3 Reconciliation (Details) - Warrant liability - USD ($) $ in Thousands	6 Months Ended
	Dec. 27, 2015	Dec. 28, 2014
Level 3 Reconciliation
Beginning balance	$ 9,147	$ 2,526
Issuance of shares in exchange for common stock warrant	(12,290)
Change in common stock warrant fair value	3,401	5,765
Ending balance	$ 258	$ 8,291

FAIR VALUE MEASUREMENTS - Prici

FAIR VALUE MEASUREMENTS - Pricing Assumptions (Details) - Recurring - Warrant liability - Level 3	12 Months Ended
	Jun. 30, 2015
Fair value assumptions
Expected term	6 months
Risk-free rate	0.11%
Expected volatility	52.95%
Dividend rate	0.00%

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	6 Months Ended
	Dec. 27, 2015	Dec. 28, 2014	Jul. 22, 2015	Jun. 30, 2015
Long-term debt
Long-term debt				$ 60,487,000
Extinguishment of debt
Loss on extinguishment of debt	$ 716,000	$ 137,000
Term loan facility
Long-term debt
Line of Credit Facility, Maximum Borrowing Capacity			$ 75,000,000
Extinguishment of debt
Loss on extinguishment of debt	716,000
Write-off of debt discount	676,000
Deferred financing costs amortized	40,000
Revolving line of credit
Long-term debt
Line of Credit Facility, Maximum Borrowing Capacity			$ 30,000,000
Long-term debt	0			8,189,000
Letters of credit outstanding	1,175,000			1,175,000
Net availability under facility	28,825,000			20,636,000
Unamortized deferred finance costs	$ 371,000			$ 425,000

INCOME TAXES (Details)

INCOME TAXES (Details)	6 Months Ended
	Dec. 27, 2015	Dec. 28, 2014
INCOME TAXES
Effective tax rate	77.10%	63.30%

EARNINGS PER SHARE - Factors (D

EARNINGS PER SHARE - Factors (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2015	Dec. 28, 2014	Dec. 27, 2015	Dec. 28, 2014
Factors used in the earnings per share computation
Net income	$ 1,870	$ 1,474	$ 547	$ 2,892
Weighted average common shares - basic	17,998,796	11,139,000	17,131,295	11,139,000
Dilutive effect of assumed exercises of common stock warrant	17,966	445,437	161,446	369,144
Weighted average common shares - diluted	18,606,884	11,642,716	17,824,985	11,568,898
Basic earnings per share (in dollars per share)	$ 0.10	$ 0.13	$ 0.03	$ 0.26
Diluted earnings per share (in dollars per share)	$ 0.10	$ 0.13	$ 0.03	$ 0.25
Stock options
Factors used in the earnings per share computation
Dilutive effect of assumed exercises of stock options and restricted share awards	60,358	58,279	60,075	60,754
Restricted stock
Factors used in the earnings per share computation
Dilutive effect of assumed exercises of stock options and restricted share awards	529,764		472,169

EARNINGS PER SHARE - Antidiluti

EARNINGS PER SHARE - Antidilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 27, 2015	Dec. 28, 2014	Dec. 27, 2015	Dec. 28, 2014
Other disclosures
Antidilutive securities excluded from computation of earning per share		0		0
Stock options
Other disclosures
Antidilutive securities excluded from computation of earning per share	137,786		125,401

STOCK-BASED COMPENSATION - 2015

STOCK-BASED COMPENSATION - 2015 Equity Incentive Plan - General and Restricted Stock Disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 24, 2015	May. 29, 2015	Dec. 27, 2015	Dec. 27, 2015	Jul. 16, 2015	Jul. 15, 2015
2015 Plan
Stock-Based Compensation
Shares authorized under plan					2,458,633	1,518,958
Restricted stock | Non-employee directors | July 24, 2015 Awards
Stock-Based Compensation
Compensation recognition period (in days)	181 days
Restricted stock | 2015 Plan
Stock-Based Compensation
Stock-based compensation			$ 6,733	$ 12,102
Restricted stock | 2015 Plan | Certain employees | May 29, 2015 Awards
Stock-Based Compensation
Shares granted, other than options		841,585
Shares granted, other than options, grant date fair value per share (in dollars per share)		$ 15
Restricted stock | 2015 Plan | Non-employee directors | July 24, 2015 Awards
Stock-Based Compensation
Shares granted, other than options	47,146
Shares granted, other than options, grant date fair value per share (in dollars per share)	$ 15.66

STOCK-BASED COMPENSATION - 2041

STOCK-BASED COMPENSATION - 2015 Equity Incentive Plan - Nonqualified Options (Details) - Stock options - 2015 Plan - Certain employees - USD ($) $ / shares in Units, $ in Thousands	Jul. 16, 2015	Dec. 27, 2015	Dec. 28, 2014	Dec. 27, 2015	Dec. 28, 2014
Stock-Based Compensation
Shares granted, nonqualified options	137,786
Shares granted, options, grant date fair value per share (in dollars per share)	$ 15
Vesting period (in years)	4 years
Stock-based compensation		$ 71	$ 0	$ 127	$ 0
Black-Scholes Pricing Model fair value assumptions
Risk-free interest rate (as a percent)		1.93%		1.93%
Expected term (in years)		6 years 3 months		6 years 3 months
Dividend yield (as a percent)		0.00%		0.00%
Volatility rate (as a percent)		56.70%		56.70%
1rst Anniversary
Stock-Based Compensation
Annual vesting percentage	25.00%
2nd Anniversary
Stock-Based Compensation
Annual vesting percentage	25.00%
3rd Anniversary
Stock-Based Compensation
Annual vesting percentage	25.00%
4th Anniversary
Stock-Based Compensation
Annual vesting percentage	25.00%

SEGMENT INFORMATION - Geographi

SEGMENT INFORMATION - Geographic Concentration (Details) - segment	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 27, 2015	Dec. 28, 2014	Dec. 27, 2015	Dec. 28, 2014	Jun. 30, 2015
SEGMENT INFORMATION
Number of operating segments					2
Number of reportable segments					2
MasterCraft | Net sales | Geographic concentration | Outside of North America
SEGMENT INFORMATION
Net sales, percentage	8.10%	9.30%	8.00%	9.20%

SEGMENT INFORMATION - Operating

SEGMENT INFORMATION - Operating Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2015	Dec. 28, 2014	Dec. 27, 2015	Dec. 28, 2014
Segment reporting information
Net sales	$ 55,203	$ 52,827	$ 111,184	$ 105,251
Cost of sales	39,838	40,131	79,980	79,774
Operating income	2,780	8,013	6,800	16,040
Depreciation and amortization	842	787	1,667	1,536
MasterCraft
Segment reporting information
Net sales	55,203	49,208	111,184	98,059
Cost of sales	39,838	36,917	79,980	73,397
Operating income	2,780	7,509	6,800	15,039
Depreciation and amortization	$ 842	755	$ 1,667	1,470
Hydra-Sports
Segment reporting information
Net sales		3,619		7,192
Cost of sales		3,214		6,377
Operating income		504		1,001
Depreciation and amortization		$ 32		$ 66