Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Apr. 01, 2018 | May 07, 2018 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 1, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,683,678 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2018 | Apr. 02, 2017 | Apr. 01, 2018 | Apr. 02, 2017 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
NET SALES | $ 93,811 | $ 58,486 | $ 237,295 | $ 170,309 |
COST OF SALES | 69,429 | 43,561 | 174,816 | 123,289 |
GROSS PROFIT | 24,382 | 14,925 | 62,479 | 47,020 |
OPERATING EXPENSES: | ||||
Selling and marketing | 3,560 | 2,678 | 9,969 | 7,176 |
General and administrative | 5,099 | 7,939 | 14,388 | 16,808 |
Amortization of intangible assets | 524 | 26 | 1,077 | 80 |
Total operating expenses | 9,183 | 10,643 | 25,434 | 24,064 |
OPERATING INCOME | 15,199 | 4,282 | 37,045 | 22,956 |
OTHER EXPENSE: | ||||
Interest expense | 897 | 561 | 2,527 | 1,684 |
INCOME BEFORE INCOME TAX EXPENSE | 14,302 | 3,721 | 34,518 | 21,272 |
INCOME TAX EXPENSE | 2,848 | 1,480 | 8,009 | 8,017 |
NET INCOME | $ 11,454 | $ 2,241 | $ 26,509 | $ 13,255 |
EARNINGS PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.62 | $ 0.12 | $ 1.42 | $ 0.71 |
Diluted (in dollars per share) | $ 0.61 | $ 0.12 | $ 1.42 | $ 0.71 |
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF: | ||||
Basic earnings per share (in shares) | 18,622,083 | 18,593,296 | 18,619,006 | 18,592,680 |
Diluted earnings per share (in shares) | 18,728,424 | 18,625,904 | 18,705,801 | 18,607,862 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 01, 2018 | Jun. 30, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 8,500 | $ 4,038 |
Accounts receivable — net of allowances of $71 and $82, respectively | 5,975 | 3,500 |
Income tax receivable | 61 | |
Inventories, net | 20,290 | 11,676 |
Prepaid expenses and other current assets | 3,596 | 2,438 |
Total current assets | 38,422 | 21,652 |
Property, plant and equipment - net | 19,728 | 14,827 |
Intangible assets - net | 51,566 | 16,643 |
Goodwill | 66,713 | 29,593 |
Deferred debt issuance costs — net | 406 | 481 |
Other | 297 | 125 |
Total assets | 177,132 | 83,321 |
CURRENT LIABILITIES | ||
Accounts payable | 18,082 | 11,008 |
Income tax payable | 1,280 | 780 |
Accrued expenses and other current liabilities | 30,343 | 21,410 |
Current portion of long term debt, net of unamortized debt issuance costs | 5,101 | 3,687 |
Total current liabilities | 54,806 | 36,885 |
Long-term debt, net of unamortized debt issuance costs ( Note 8) | 80,946 | 30,790 |
Deferred income taxes | 172 | 953 |
Unrecognized tax positions | 2,134 | 2,932 |
Total liabilities | 138,058 | 71,560 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 18,683,678 shares at April 1, 2018 and 18,637,445 shares at June 30, 2017 | 187 | 186 |
Additional paid-in capital | 113,748 | 112,945 |
Accumulated deficit | (74,861) | (101,370) |
Total stockholders' equity | 39,074 | 11,761 |
Total liabilities and stockholders' equity | $ 177,132 | $ 83,321 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2018 | Jun. 30, 2017 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts | $ 71 | $ 82 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 18,683,678 | 18,637,445 |
Common stock, outstanding shares | 18,683,678 | 18,637,445 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - 9 months ended Apr. 01, 2018 - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance, beginning at Jun. 30, 2017 | $ 186 | $ 112,945 | $ (101,370) | $ 11,761 |
Balance, beginning (in shares) at Jun. 30, 2017 | 18,637,445 | |||
Increase (decrease) in stockholders' equity | ||||
Equity-based compensation activity | $ 1 | 803 | 804 | |
Equity-based compensation activity (shares) | 46,233 | |||
Net income | 26,509 | 26,509 | ||
Balance, ending at Apr. 01, 2018 | $ 187 | $ 113,748 | $ (74,861) | $ 39,074 |
Balance, ending (in shares) at Apr. 01, 2018 | 18,683,678 |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 26,509 | $ 13,255 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,665 | 2,442 |
Inventory obsolescence reserve | (484) | 243 |
Deferred issuance costs | 369 | 274 |
Stock-based compensation | 882 | 520 |
Unrecognized tax benefits | (1,047) | 464 |
Accrued litigation costs | 3,111 | |
Deferred income taxes | (698) | 3,277 |
Net provision for doubtful accounts | (11) | 57 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (691) | (3,757) |
Inventories | (1,744) | 1,139 |
Prepaid expenses and other current assets | (1,064) | (497) |
Income tax receivable | (61) | (1,259) |
Other assets | (6) | |
Accounts payable | 4,433 | 659 |
Income tax payable | 500 | (696) |
Accrued expenses and other current liabilities | 5,736 | 1,990 |
Net cash provided by operating activities | 36,288 | 21,222 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Disposal of assets | 96 | |
Payment for acquisition, net of cash acquired | (80,511) | |
Purchases of property and equipment | (2,600) | (1,715) |
Net cash used in investing activities | (83,015) | (1,715) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of long-term debt | 80,832 | |
Payments of costs directly associated with offerings | (449) | |
Cash paid for withholding taxes on vested stock | (78) | |
Excess tax benefits | 312 | |
Principal payments on long-term debt | (28,325) | (3,750) |
Payments on revolving line of credit | (3,126) | |
Payments of deferred financing costs | (1,240) | |
Net cash used in financing activities | 51,189 | (7,013) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 4,462 | 12,494 |
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD | 4,038 | 73 |
CASH AND CASH EQUIVALENTS — END OF PERIOD | 8,500 | 12,567 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash payments for interest | 2,078 | 1,399 |
Cash payments for income taxes | $ 9,304 | $ 5,923 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 9 Months Ended |
Apr. 01, 2018 | |
ORGANIZATION AND NATURE OF BUSINESS | |
ORGANIZATION AND NATURE OF BUSINESS | 1. MCBC Holdings, Inc. (the “Company”) was formed on January 28, 2000, as a Delaware holding company and operates primarily through its wholly owned subsidiaries, MasterCraft Boat Company, LLC; Nautic Star, LLC; MasterCraft Services, Inc.; MasterCraft Parts, Ltd.; and MasterCraft International Sales Administration, Inc. The Company and its subsidiaries collectively are referred to herein as the “Company”. On October 2, 2017, the Company acquired all of the outstanding membership interests and other equity securities of Nautic Star, LLC, a Mississippi limited liability company (“NauticStar”) . As a result of the acquisition, the Company consolidated the financial results of NauticStar. See Note 3: Acquisition. The Company reports its results of operations under two reportable segments: MasterCraft and NauticStar, based on their boat manufacturing operations. The Company is a designer and manufacturer of premium inboard tournament ski boats and luxury performance V-drive runabouts under the MasterCraft brand and salt water fishing and general recreational boats under the NauticStar brand. The Company also leases a parts warehouse in the United Kingdom to expedite service, primarily to MasterCraft dealers and customers in Europe. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Apr. 01, 2018 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 2. 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, 2017 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, 2017. 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, 2017 and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company’s financial position as of April 1, 2018 and results of its operations, and its cash flows for the nine months ended April 1, 2018 and April 2, 2017 and statement of shareholders’ equity for the nine months ended April 1, 2018. All adjustments are of a normal recurring nature. Our interim operating results for the nine months ended April 1, 2018 and April 2, 2017 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 nine months ended April 1, 2018 as compared with the significant accounting policies described in the Company’s audited consolidated financial statements for the financial year ended June 30, 2017. New Accounting Pronouncements Issued But Not Yet Adopted —In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) . This guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact this new guidance is expected to have on its financial position or results of operations and related disclosures. In May 2014, the FASB and International Accounting Standards Board jointly issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) , which includes 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 July 2015, the FASB announced that the implementation date would be delayed by one year. During 2016, the FASB issued certain amendments to clarify and improve the implementation of the guidance in ASU 2014-09. The effective date and transition requirements for these amendments and ASU 2014-09 are now for annual and interim periods beginning after December 15, 2017. The Company will adopt this guidance for our fiscal year beginning July 1, 2018. The Company is continuing to assess the potential effects of ASU 2014-09 on its consolidated financial statements, business processes, systems and controls. The Company plans to use the modified retrospective approach in applying the new standard. Based on the Company’s progress, it expects an impact from the new standard for dealers who are offered retail promotions which are currently recorded at the later of when the program has been communicated to the dealer or at the time of sale. Under the new standard, the Company expects these retail promotions to be recognized at the time of sale to a dealer. As a result, the Company expects a change in the timing of recording retail promotions and rebates; however, it does not expect a change in the total amount of cumulative revenue recognized for each transaction. Any potential effect of adoption of this ASU has not yet been quantified primarily due to the continuing assessment of NauticStar, which was acquired on October 2, 2017. Additionally, the Company’s expectations may change as its implementation progresses. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The guidance clarifies the definition of a business that provides a two-step analysis in the determination of whether an acquisition or derecognition is a business or an asset. The update removes the evaluation of whether a market participant could replace any missing elements and provides a framework to assist entities in evaluating whether both an input and a substantive process are present. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods and early adoption is permitted for transactions that meet specified criteria. This guidance is to be applied on a prospective basis for transactions that occur after the effective date. In January 2017, the FASB issued ASU 2017-04 , Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This guidance eliminates Step 2 from the goodwill impairment test. Instead, an entity should recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019. The Company is currently evaluating the effect that the adoption of this new guidance is expected to have on our financial position or results of operations and related disclosures. In May 2017, the FASB issued ASU 2017-09 , Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This guidance provides clarity and reduces complexity when applying the guidance in Topic 718, Compensation—Stock Compensation to a change to the term or condition of a share-based payment. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. The Company is currently evaluating the effect that the adoption of this new guidance is expected to have on our financial position or results of operations and related disclosures. New Accounting Pronouncements Issued And Adopted — In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . This ASU changes the measurement principle for inventories valued under the 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 is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company adopted the provisions of ASU 2015-11 on a prospective basis during the first quarter of fiscal year 2018. The adoption of this ASU did not have an impact on our financial position or results of operations and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company adopted the provisions of ASU 2016-1 on a prospective basis during the first quarter of fiscal year 2018. The adoption of this ASU did not have an impact on our financial position or results of operations and related disclosures. There are no other recently issued accounting pronouncements that are expected to have a material impact on our financial position or results of operations and related disclosures. |
ACQUISITION
ACQUISITION | 9 Months Ended |
Apr. 01, 2018 | |
ACQUISITION | |
ACQUISITION | 3. On October 2, 2017, the Company completed its acquisition of NauticStar which unites two leading and complementary boat brands and adds to its product diversity. T he purchase price was $80,511 , including customary adjustments for the amount of working capital in the acquired business at the closing date. A portion of the purchase price was deposited into an escrow account in order to secure certain post-closing obligations of the former members of NauticStar. The Company accounted for the transaction using the acquisition method in accordance with ASC 805, Business Combinations . The total consideration has been allocated to the assets acquired and liabilities assumed based on preliminary estimates of their fair values as of the date of acquisition. Because of the complexities involved with performing the valuation, the Company has recorded the tangible and intangible assets acquired and liabilities assumed based on their preliminary fair values as of October 2, 2017. The preliminary measurements of fair value were based upon estimates utilizing the assistance of third party valuation specialists, and are subject to change within the measurement period. The Company expects the appraisal of tangible and intangible assets to be finalized during the fourth quarter of fiscal 2018. The following table summarizes the preliminary purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed of NauticStar at the acquisition date: Purchase Price: Cash paid, net of cash acquired $ 80,511 Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: Accounts receivable $ 1,773 Inventories 6,426 Other current assets 94 Indemnification asset 166 Deferred income taxes 83 Property, Plant and equipment 4,945 Identifiable intangible assets 36,000 Current liabilities (5,847) Unrecognized tax positions (249) Preliminary estimate of the fair value of assets acquired and liabilities assumed 43,391 Goodwill 37,120 $ 80,511 The preliminary fair value estimates for the Company’s identifiable intangible assets acquired as part of the acquisition are as follows: Estimates of Fair Value Estimated Useful Life (in years) Definite-lived intangible: Dealer network $ 20,000 Indefinite-lived intangible: Trade name 16,000 Total identifiable intangible assets $ 36,000 The value allocated to inventories reflects the estimated fair value of the acquired inventory based on the expected sales price of the inventory, less an estimated cost to complete and a reasonable profit margin. The value allocated to accounts receivable represents the estimated fair value of the acquired receivables based on the expected collection of those receivables, less an estimated allowance for bad debts. The fair value of the identifiable intangible assets were determined based on the following approaches: · Dealer Network - The value associated with NauticStar’s dealer network is attributed to its long standing dealer distribution network. The estimate of fair value assigned to this asset was determined using the 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 estimated remaining useful life of dealer network is approximately ten years. · Trade Name - The value attributed to NauticStar’s trade name was determined using the relief from royalty method, a variation of the income approach, which requires an estimate or forecast of the expected future cash flows. The trade name has an indefinite life. The fair value of the definite-lived intangible asset is being amortized using the straight-line method to amortization of intangible assets expense over the estimated useful life. Indefinite-lived intangible assets are not amortized, but instead are evaluated for potential impairment on an annual basis in accordance with the provisions of ASC Topic 350, Intangibles—Goodwill and Other . The weighted average useful life of identifiable definite-lived intangible assets acquired was 10.0 years. Goodwill of $37,120 arising from the acquisition consists of future growth prospects including dealer expansion into new geographic markets and capacity expansion as well as intangible assets that do not qualify for separate recognition. The indefinite-lived intangible asset and goodwill acquired are expected to be deductible for income tax purposes. Acquisition related costs of $1,486, which were incurred by the Company during the nine months ended April 1, 2018, were expensed in the period incurred, and are included in general and administrative expenses in the consolidated statement of operations. Pro Forma Financial Information: The following unaudited pro forma consolidated results of operations for the three and nine months ended April 1, 2018 and three and nine months ended April 2, 2017, assumes that the acquisition of NauticStar occurred as of July 1, 2016. The unaudited pro forma financial information combines historical results of MasterCraft and NauticStar, with adjustments for depreciation and amortization attributable to preliminary fair value estimates on acquired tangible and intangible assets for the respective periods. Non-recurring pro forma adjustments associated with the fair value step up of inventory were included in the reported pro forma cost of sales and earnings. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal year 2017 or the results that may occur in the future: Three Months Ended Nine Months Ended April 1, 2018 April 2, 2017 April 1, 2018 April 2, 2017 Net sales $ 93,811 $ 78,707 $ 255,364 $ 225,107 Net income $ 11,609 $ 3,060 $ 28,692 $ 13,727 Basic earnings per share $ 0.62 $ 0.16 $ 1.54 $ 0.74 Diluted earnings per share $ 0.62 $ 0.16 $ 1.53 $ 0.74 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Apr. 01, 2018 | |
INVENTORIES | |
INVENTORIES | 4. Inventories consisted of the following: April 1, 2018 June 30, 2017 Raw materials and supplies $ 11,178 $ 7,164 Work in process 2,636 1,772 Finished goods 7,647 3,427 Obsolescence reserve (1,171) (687) Total inventories $ 20,290 $ 11,676 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 Months Ended |
Apr. 01, 2018 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 5. Prepaid expenses and other current assets consisted of the following: April 1, 2018 June 30, 2017 Prepaid photo shoot $ 525 $ 497 Insurance 1,348 765 Trade show deposits — 73 Interest rate cap 481 90 Other 1,242 1,013 Total prepaid expenses and other current assets $ 3,596 $ 2,438 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Apr. 01, 2018 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6. Accrued expenses and other current liabilities consisted of the following: April 1, 2018 June 30, 2017 Warranty $ 15,605 $ 12,237 Self-insurance 729 763 Compensation and related accruals 3,411 1,691 Inventory repurchase contingent obligation 1,450 1,008 Interest 2,079 1,008 Dealer incentives 4,350 2,755 Other 2,719 1,948 Total accrued expenses and other current liabilities $ 30,343 $ 21,410 The following table provides a roll forward of the accrued warranty liability: Beginning balance - June 30, 2017 $ 12,237 Provisions 4,530 Additions for NauticStar acquisition 1,992 Payments made (2,919) Adjustments to preexisting warranties (235) Ending balance - April 1, 2018 $ 15,605 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Apr. 01, 2018 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. The changes in the carrying amount of goodwill for the nine months ended April 1, 2018, were as follows: Goodwill as of June 30, 2017 $ 29,593 Addition related to the acquisition of NauticStar 37,120 Goodwill as of April 1, 2018 $ 66,713 As of April 1, 2018, and June 30, 2017, details of the Company’s intangible assets other than goodwill were as follows: April 1, 2018 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Dealer network $ 21,590 $ (2,024) $ 19,566 Total amortizable intangible assets 21,590 (2,024) 19,566 Trade names 32,000 — 32,000 Total intangible assets $ 53,590 $ (2,024) $ 51,566 June 30, 2017 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Dealer network $ 1,590 $ (947) $ 643 Total amortizable intangible assets 1,590 (947) 643 Trade names 16,000 — 16,000 Total intangible assets $ 17,590 $ (947) $ 16,643 Amortization expense recognized on all amortizable intangibles was $1,077 and $80 for the nine months ended April 1, 2018 and April 2, 2017, respectively. The estimated future amortization of definite-lived intangible assets is as follows: Fiscal years ending June 30, Remainder of 2018 $ 527 2019 2,107 2020 2,107 2021 2,107 2022 2,107 and thereafter 10,611 Total $ 19,566 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Apr. 01, 2018 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 8. 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: April 1, 2018 Level 1 Level 2 Level 3 Asset — interest rate cap $ — $ 481 $ — June 30, 2017 Level 1 Level 2 Level 3 Asset — interest rate cap $ — $ 90 $ — The interest rate cap is valued utilizing pricing models taking into account inputs such as interest rates and notional amounts. In November 2017, the Company entered into an interest rate cap agreement with its existing lender to cap its London Interbank Offered Rate (“LIBOR”) rate at 2% for $34,594 of outstanding principal on its long-term debt. Fair value measurements for the Company’s interest rate cap are classified under Level 2 because such measurements are based on significant other observable inputs. There were no transfers of assets or liabilities between Level 1 and Level 2 during the nine months ended April 1, 2018. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Apr. 01, 2018 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 9. Long-term debt outstanding is as follows: April 1, 2018 June 30, 2017 Revolving credit facility $ — $ — Senior secured term loan 87,651 35,135 Debt issuance costs on term loan (1,604) (658) Total debt 86,047 34,477 Less current portion of long-term debt 5,512 3,904 Less current portion of debt issuance costs on term loan (411) (217) Long-term debt — less current portion $ 80,946 $ 30,790 On October 2, 2017, the Company entered into a Third Amended and Restated Credit and Guaranty Agreement with Fifth Third Bank, as the agent and letter of credit issuer, and the lenders party thereto (the “Third Amended Credit Agreement”). The Third Amended Credit Agreement replaced and paid off the Company’s Second Amended and Restated Credit Agreement, dated May 27, 2016. The Third Amended Credit Agreement provides the Company with a $145,000 senior secured credit facility, consisting of a $115,000 term loan (the “Third Term Loan”) and a $30,000 revolving credit facility (the “Revolving Credit Facility”). The Third Amended Credit Agreement bears interest, at the Company’s option, at either the prime rate plus an applicable margin ranging from 0.75% to 1.75% or at an adjusted LIBOR plus an applicable margin ranging from 1.75% to 2.75%, in each case based on the Company’s senior leverage ratio. Based on the Company’s current senior leverage ratio, the applicable margin for loans accruing interest at the prime rate is 1.25% and the applicable margin for loans accruing interest at LIBOR is 2.25%. In connection with the Third Amended Credit Agreement, the Company paid $1,322 of financing costs. The Third Term Loan will mature and all remaining amounts outstanding thereunder will be due and payable on October 2, 2022. On October 17, 2017, December 1, 2017 and February 28, 2018, the Company made voluntary payments on the Third Term Loan of $10,000, $7,000 and $8,000 respectively, out of excess cash. As of April 1, 2018 and June 30, 2017, the Company’s unamortized deferred financing costs were $2,010 and $1,139, respectively. These costs are being amortized over the term of the Third Amended Credit Agreement. The Company was in compliance with all of its debt covenants under its Third Amended Credit Agreement. As of April 1, 2018 and June 30, 2017, the Company had no borrowings outstanding on its Revolving Credit Facility. Availability under the Revolving Credit Facility is reduced by letters of credit. There were no specified letters of credit outstanding at April 1, 2018. There were specified letters of credit outstanding of $250 at June 30, 2017. As of April 1, 2018 and June 30, 2017, availability under the Revolving Credit Facility was $30,000 and $29,750, respectively, and unamortized deferred financing costs were $406 and $481, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Apr. 01, 2018 | |
INCOME TAXES | |
INCOME TAXES | 10. The Company’s results for the three and nine months ended April 1, 2018, reflect the impact of the enactment of the Tax Cuts and Jobs Act (“Tax Reform Act”), which was signed into law on December 22, 2017. The Tax Reform Act reduced federal corporate income tax rates and changed numerous other provisions. As we have a June 30 fiscal year-end, the lower corporate federal income tax rate will be phased in, resulting in a U.S. federal statutory tax rate of 28.1% for our fiscal year ending June 30, 2018, and 21.0% for subsequent fiscal years. The nine months ended April 1, 2018 included a year-to-date provisional expense of approximately $348 to reflect federal deferred taxes at the lower blended effective tax rate. This adjustment to the provision was more than offset by a one-time discrete provisional benefit of approximately $674 as a result of applying the new lower federal income tax rates to the Company’s net deferred tax liabilities. The changes included in the Tax Reform Act are broad and complex. The final transition impacts may differ from the above estimate due to, among other things, changes in interpretations, any legislative action to address questions that arise because of the Tax Reform Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Reform Act, or any updates or changes to estimates we have utilized to calculate the transition impacts. The SEC issued guidance in Staff Accounting Bulletin 118 which allows the Company to record provisional amounts during a one-year measurement period. The Company has determined a reasonable estimate for the measurement and accounting for certain effects of the Tax Reform Act, including the re-measurement of the Company’s net deferred tax assets and liabilities, which have been reflected as provisional amounts in the April 1, 2018 financial statements. The amounts represent the Company’s best estimates based on records, information, and current guidance. Additional information and analysis is required to finalize the impact that the Tax Reform Act will have on the Company’s full year financial results. Although the Company does not anticipate material adjustments to the provisional amounts, final results could vary from these provisional amounts. The Company currently anticipates finalizing and recording any resulting adjustments by the end of the fiscal year ending June 30, 2018. The Company’s 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 nine months ended April 1, 2018, the Company’s effective tax rate was 23.2%. The rate was lower than the 28.1% statutory rate primarily due to the impact of Tax Reform, and a permanent benefit associated with the domestic production activities deduction, which was partially offset by the inclusion of the state tax rate in the overall effective rate. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Apr. 01, 2018 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 11. The following table sets forth the computation of the Company’s earnings per share: Three Months Ended Nine Months Ended April 1, 2018 April 2, 2017 April 1, 2018 April 2, 2017 Net income $ 11,454 $ 2,241 $ 26,509 $ 13,255 Weighted average common shares — basic 18,622,083 18,593,296 18,619,006 18,592,680 Dilutive effect of assumed exercises of stock options 41,372 — 35,770 — Dilutive effect of assumed restricted share awards\units 64,970 32,608 51,026 15,182 Weighted average outstanding shares — diluted 18,728,424 18,625,904 18,705,801 18,607,862 Basic earnings per share $ 0.62 $ 0.12 $ 1.42 $ 0.71 Diluted earnings per share $ 0.61 $ 0.12 $ 1.42 $ 0.71 For the three months ended April 1, 2018, the weighted average shares that were anti-dilutive, and therefore excluded from the computation of diluted earnings per share included 1,039 restricted stock awards . For the three months ended April 2, 2017, the weighted average shares that were anti-dilutive, and therefore excluded from the computation of diluted earnings per share included options to purchase 122,640 shares of common stock . For the nine months ended April 1, 2018, the weighted average shares that were anti-dilutive, and therefore excluded from the computation of diluted earnings per share included 34,948 restricted stock awards . For the nine months ended April 2, 2017, the weighted average shares that were anti-dilutive, and therefore excluded from the computation of diluted earnings per share included 11,023 restricted stock awards and options to purchase 122,640 shares of common stock. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Apr. 01, 2018 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 12. During fiscal year ended June 30, 2015 the Company adopted the Amended and Restated MCBC Holdings, Inc. 2015 Incentive Award Plan (“2015 Plan”) in order to facilitate the grant of cash and equity incentives to non-employee directors, employees, and consultants of the Company and certain of its affiliates and to enable the Company and certain of its affiliates to obtain and retain the services of these individuals, which is essential to our long-term success. In July 2015, the Board amended and restated the Company’s 2015 Plan which became effective just prior to the closing of the Company’s initial public offering to increase the shares available for issuance under the 2015 Plan. During the nine months ended April 1, 2018 and April 2, 2017, the Company recognized $882 and $520, respectively in stock-based compensation expense. In July 2017, the Company granted to certain employees 23,932 shares of restricted stock awards (“RSAs”) under the 2015 Plan at a per share fair value of $19.34, which is the market value of the Company’s common stock on the grant date. The RSAs will vest in three equal annual installments. In addition, the Company granted 17,064 RSAs under the 2015 Plan to certain non-employee directors for their annual equity award at a per share fair value of $19.34. In November 2017, the Company granted 5,578 of RSAs to certain employees under the 2015 Plan at a per share fair value of $22.31. In July 2017, the Company granted 23,929 performance stock units (“PSUs”) under its 2015 Plan to certain employees at an estimated per share fair value of $20.33. In November 2017, the Company granted 2,487 PSUs under its 2015 Plan, at an estimated per share fair value of $23.45. The awards will be earned based upon the Company’s attainment of certain performance criteria over a three-year period. The performance period for the awards are a three-year period commencing July 1, 2017 and ending June 30, 2020. 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 upon the application of a total shareholder return (“TSR”) modifier. In July 2015, the Company granted 137,786 non-qualified stock options (“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. In June 2016, the Company reduced the exercise price of these options by $4.30 per share, which was the amount of the special cash dividend paid in June 2016. Therefore, the exercise price of the options is $10.70 per share. The other terms of the options remained unchanged. 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%. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Apr. 01, 2018 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 13. The Company designs, manufactures, and markets recreational sport boats and has two operating and reportable segments: MasterCraft and NauticStar. The Company’s segments are defined by management’s reporting structure, product brands, and distribution channels. The MasterCraft product brand consists of recreational performance boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. The Company distributes the MasterCraft product brand through its dealer network. The NauticStar product brand consists of recreational boats primarily used for salt water fishing, and general recreational boating. The Company distributes the NauticStar product brand through its dealer network. The Company’s chief operating decision maker (“CODM”) regularly reviews the operating performance of each product brand including measures of performance based on income from operations. The Company considers each of the product brands to be an operating segment and has further concluded that presenting disaggregated information of these two operating segments provides meaningful information as certain economic characteristics are dissimilar as well as the characteristics of the customer base served. Management evaluates performance based on business segment operating income. The Company files a consolidated income tax return and does not allocate income taxes and other corporate level expenses including interest to operating segments. The following tables present financial information for the Company’s reportable segments for the three and nine months ended April 1, 2018 and April 2, 2017, respectively, and the Company’s financial position at April 1, 2018 and June 30, 2017, respectively. Three Months Ended April 1, 2018 MasterCraft NauticStar Consolidated Net sales $ 69,257 $ 24,554 $ 93,811 Cost of sales 49,823 19,606 69,429 Operating income 12,446 2,753 15,199 Depreciation and amortization 840 616 1,456 Three Months Ended April 2, 2017 MasterCraft NauticStar Consolidated Net sales $ 58,486 $ — $ 58,486 Cost of sales 43,561 — 43,561 Operating income 4,282 — 4,282 Depreciation and amortization 820 — 820 Nine Months Ended April 1, 2018 MasterCraft NauticStar Consolidated Net sales $ 192,545 $ 44,750 $ 237,295 Cost of sales 138,565 36,251 174,816 Operating income 32,623 4,422 37,045 Depreciation and amortization 2,447 1,218 3,665 Nine Months Ended April 2, 2017 MasterCraft NauticStar Consolidated Net sales $ 170,309 $ — $ 170,309 Cost of sales 123,289 — 123,289 Operating income 22,956 — 22,956 Depreciation and amortization 2,442 — 2,442 As of April 1, 2018 As of June 30, 2017 Assets MasterCraft $ 88,869 $ 83,321 NauticStar 88,263 — Total Assets (a) $ 177,132 $ 83,321 (a) Total assets as of April 1, 2018 includes goodwill of $29,593 and $37,120 related to MasterCraft and NauticStar, respectively. Total assets as of June 30, 2017 includes goodwill of $29,593 related to MasterCraft. |
BASIS OF PRESENTATION AND SIG20
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Apr. 01, 2018 | |
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, 2017 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, 2017. |
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, 2017 and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company’s financial position as of April 1, 2018 and results of its operations, and its cash flows for the nine months ended April 1, 2018 and April 2, 2017 and statement of shareholders’ equity for the nine months ended April 1, 2018. All adjustments are of a normal recurring nature. Our interim operating results for the nine months ended April 1, 2018 and April 2, 2017 are not necessarily indicative of the results to be expected in future operating quarters. |
New Accounting Pronouncements Issued, Adopted and Not Yet Adopted | New Accounting Pronouncements Issued But Not Yet Adopted —In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) . This guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact this new guidance is expected to have on its financial position or results of operations and related disclosures. In May 2014, the FASB and International Accounting Standards Board jointly issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) , which includes 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 July 2015, the FASB announced that the implementation date would be delayed by one year. During 2016, the FASB issued certain amendments to clarify and improve the implementation of the guidance in ASU 2014-09. The effective date and transition requirements for these amendments and ASU 2014-09 are now for annual and interim periods beginning after December 15, 2017. The Company will adopt this guidance for our fiscal year beginning July 1, 2018. The Company is continuing to assess the potential effects of ASU 2014-09 on its consolidated financial statements, business processes, systems and controls. The Company plans to use the modified retrospective approach in applying the new standard. Based on the Company’s progress, it expects an impact from the new standard for dealers who are offered retail promotions which are currently recorded at the later of when the program has been communicated to the dealer or at the time of sale. Under the new standard, the Company expects these retail promotions to be recognized at the time of sale to a dealer. As a result, the Company expects a change in the timing of recording retail promotions and rebates; however, it does not expect a change in the total amount of cumulative revenue recognized for each transaction. Any potential effect of adoption of this ASU has not yet been quantified primarily due to the continuing assessment of NauticStar, which was acquired on October 2, 2017. Additionally, the Company’s expectations may change as its implementation progresses. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The guidance clarifies the definition of a business that provides a two-step analysis in the determination of whether an acquisition or derecognition is a business or an asset. The update removes the evaluation of whether a market participant could replace any missing elements and provides a framework to assist entities in evaluating whether both an input and a substantive process are present. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods and early adoption is permitted for transactions that meet specified criteria. This guidance is to be applied on a prospective basis for transactions that occur after the effective date. In January 2017, the FASB issued ASU 2017-04 , Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This guidance eliminates Step 2 from the goodwill impairment test. Instead, an entity should recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019. The Company is currently evaluating the effect that the adoption of this new guidance is expected to have on our financial position or results of operations and related disclosures. In May 2017, the FASB issued ASU 2017-09 , Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This guidance provides clarity and reduces complexity when applying the guidance in Topic 718, Compensation—Stock Compensation to a change to the term or condition of a share-based payment. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. The Company is currently evaluating the effect that the adoption of this new guidance is expected to have on our financial position or results of operations and related disclosures. New Accounting Pronouncements Issued And Adopted — In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . This ASU changes the measurement principle for inventories valued under the 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 is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company adopted the provisions of ASU 2015-11 on a prospective basis during the first quarter of fiscal year 2018. The adoption of this ASU did not have an impact on our financial position or results of operations and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company adopted the provisions of ASU 2016-1 on a prospective basis during the first quarter of fiscal year 2018. The adoption of this ASU did not have an impact on our financial position or results of operations and related disclosures. There are no other recently issued accounting pronouncements that are expected to have a material impact on our financial position or results of operations and related disclosures. |
ACQUISITION (Tables)
ACQUISITION (Tables) | 9 Months Ended |
Apr. 01, 2018 | |
ACQUISITION | |
Schedule of preliminary purchase price allocation based on the estimated fair values of assets acquired and liabilities assumed as of the acquisition date | Purchase Price: Cash paid, net of cash acquired $ 80,511 Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: Accounts receivable $ 1,773 Inventories 6,426 Other current assets 94 Indemnification asset 166 Deferred income taxes 83 Property, Plant and equipment 4,945 Identifiable intangible assets 36,000 Current liabilities (5,847) Unrecognized tax positions (249) Preliminary estimate of the fair value of assets acquired and liabilities assumed 43,391 Goodwill 37,120 $ 80,511 |
Schedule of preliminary fair value estimates of identifiable intangible assets acquired | Estimates of Fair Value Estimated Useful Life (in years) Definite-lived intangible: Dealer network $ 20,000 Indefinite-lived intangible: Trade name 16,000 Total identifiable intangible assets $ 36,000 |
Schedule of pro forma financial information | Three Months Ended Nine Months Ended April 1, 2018 April 2, 2017 April 1, 2018 April 2, 2017 Net sales $ 93,811 $ 78,707 $ 255,364 $ 225,107 Net income $ 11,609 $ 3,060 $ 28,692 $ 13,727 Basic earnings per share $ 0.62 $ 0.16 $ 1.54 $ 0.74 Diluted earnings per share $ 0.62 $ 0.16 $ 1.53 $ 0.74 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Apr. 01, 2018 | |
INVENTORIES | |
Schedule of inventories | April 1, 2018 June 30, 2017 Raw materials and supplies $ 11,178 $ 7,164 Work in process 2,636 1,772 Finished goods 7,647 3,427 Obsolescence reserve (1,171) (687) Total inventories $ 20,290 $ 11,676 |
PREPAID EXPENSES AND OTHER CU23
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Apr. 01, 2018 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | April 1, 2018 June 30, 2017 Prepaid photo shoot $ 525 $ 497 Insurance 1,348 765 Trade show deposits — 73 Interest rate cap 481 90 Other 1,242 1,013 Total prepaid expenses and other current assets $ 3,596 $ 2,438 |
ACCRUED EXPENSES AND OTHER CU24
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Apr. 01, 2018 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | April 1, 2018 June 30, 2017 Warranty $ 15,605 $ 12,237 Self-insurance 729 763 Compensation and related accruals 3,411 1,691 Inventory repurchase contingent obligation 1,450 1,008 Interest 2,079 1,008 Dealer incentives 4,350 2,755 Other 2,719 1,948 Total accrued expenses and other current liabilities $ 30,343 $ 21,410 |
Schedule of roll forward of the accrued warranty liability | Beginning balance - June 30, 2017 $ 12,237 Provisions 4,530 Additions for NauticStar acquisition 1,992 Payments made (2,919) Adjustments to preexisting warranties (235) Ending balance - April 1, 2018 $ 15,605 |
GOODWILL AND OTHER INTANGIBLE25
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Apr. 01, 2018 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of changes in the carrying amount of goodwill | Goodwill as of June 30, 2017 $ 29,593 Addition related to the acquisition of NauticStar 37,120 Goodwill as of April 1, 2018 $ 66,713 |
Schedule of intangible assets other than goodwill | April 1, 2018 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Dealer network $ 21,590 $ (2,024) $ 19,566 Total amortizable intangible assets 21,590 (2,024) 19,566 Trade names 32,000 — 32,000 Total intangible assets $ 53,590 $ (2,024) $ 51,566 June 30, 2017 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Dealer network $ 1,590 $ (947) $ 643 Total amortizable intangible assets 1,590 (947) 643 Trade names 16,000 — 16,000 Total intangible assets $ 17,590 $ (947) $ 16,643 |
Schedule of estimated amortization expense | Fiscal years ending June 30, Remainder of 2018 $ 527 2019 2,107 2020 2,107 2021 2,107 2022 2,107 and thereafter 10,611 Total $ 19,566 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Apr. 01, 2018 | |
FAIR VALUE MEASUREMENTS | |
Assets measured at fair value on a recurring basis | April 1, 2018 Level 1 Level 2 Level 3 Asset — interest rate cap $ — $ 481 $ — June 30, 2017 Level 1 Level 2 Level 3 Asset — interest rate cap $ — $ 90 $ — |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Apr. 01, 2018 | |
LONG-TERM DEBT | |
Schedule of long-term debt outstanding | April 1, 2018 June 30, 2017 Revolving credit facility $ — $ — Senior secured term loan 87,651 35,135 Debt issuance costs on term loan (1,604) (658) Total debt 86,047 34,477 Less current portion of long-term debt 5,512 3,904 Less current portion of debt issuance costs on term loan (411) (217) Long-term debt — less current portion $ 80,946 $ 30,790 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Apr. 01, 2018 | |
EARNINGS PER SHARE | |
Factors used in the earnings per share computation | Three Months Ended Nine Months Ended April 1, 2018 April 2, 2017 April 1, 2018 April 2, 2017 Net income $ 11,454 $ 2,241 $ 26,509 $ 13,255 Weighted average common shares — basic 18,622,083 18,593,296 18,619,006 18,592,680 Dilutive effect of assumed exercises of stock options 41,372 — 35,770 — Dilutive effect of assumed restricted share awards\units 64,970 32,608 51,026 15,182 Weighted average outstanding shares — diluted 18,728,424 18,625,904 18,705,801 18,607,862 Basic earnings per share $ 0.62 $ 0.12 $ 1.42 $ 0.71 Diluted earnings per share $ 0.61 $ 0.12 $ 1.42 $ 0.71 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Apr. 01, 2018 | |
SEGMENT INFORMATION | |
Schedule of operating information for reportable segments | Three Months Ended April 1, 2018 MasterCraft NauticStar Consolidated Net sales $ 69,257 $ 24,554 $ 93,811 Cost of sales 49,823 19,606 69,429 Operating income 12,446 2,753 15,199 Depreciation and amortization 840 616 1,456 Three Months Ended April 2, 2017 MasterCraft NauticStar Consolidated Net sales $ 58,486 $ — $ 58,486 Cost of sales 43,561 — 43,561 Operating income 4,282 — 4,282 Depreciation and amortization 820 — 820 Nine Months Ended April 1, 2018 MasterCraft NauticStar Consolidated Net sales $ 192,545 $ 44,750 $ 237,295 Cost of sales 138,565 36,251 174,816 Operating income 32,623 4,422 37,045 Depreciation and amortization 2,447 1,218 3,665 Nine Months Ended April 2, 2017 MasterCraft NauticStar Consolidated Net sales $ 170,309 $ — $ 170,309 Cost of sales 123,289 — 123,289 Operating income 22,956 — 22,956 Depreciation and amortization 2,442 — 2,442 As of April 1, 2018 As of June 30, 2017 Assets MasterCraft $ 88,869 $ 83,321 NauticStar 88,263 — Total Assets (a) $ 177,132 $ 83,321 Total assets as of April 1, 2018 includes goodwill of $29,593 and $37,120 related to MasterCraft and NauticStar, respectively. Total assets as of June 30, 2017 includes goodwill of $29,593 related to MasterCraft. |
ORGANIZATION AND NATURE OF BU30
ORGANIZATION AND NATURE OF BUSINESS (Details) | 9 Months Ended |
Apr. 01, 2018segment | |
ORGANIZATION AND NATURE OF BUSINESS | |
Number of reportable segments | 2 |
BASIS OF PRESENTATION AND SIG31
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Interim Quarterly Reporting Periods (Details) | 9 Months Ended |
Apr. 01, 2018 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Interim quarterly reporting periods | 91 days |
ACQUISITION - Purchase Price Al
ACQUISITION - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Oct. 02, 2017 | Apr. 01, 2018 | Jun. 30, 2017 |
Purchase Price: | |||
Cash paid, net of cash acquired | $ 80,511 | ||
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: | |||
Goodwill | $ 66,713 | $ 29,593 | |
NauticStar | |||
Purchase Price: | |||
Cash paid, net of cash acquired | $ 80,511 | ||
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: | |||
Accounts receivable | 1,773 | ||
Inventories | 6,426 | ||
Other current assets | 94 | ||
Indemnification asset | 166 | ||
Deferred income taxes | 83 | ||
Property, plant and equipment | 4,945 | ||
Identifiable intangible assets | 36,000 | ||
Current liabilities | (5,847) | ||
Unrecognized tax positions | (249) | ||
Preliminary estimate of the fair value of assets acquired and liabilities assumed | 43,391 | ||
Goodwill | 37,120 | ||
Total purchase price allocation | $ 80,511 |
ACQUISITION - Identifiable Inta
ACQUISITION - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 02, 2017 | Apr. 01, 2018 | Jun. 30, 2017 |
Acquisition | |||
Goodwill | $ 66,713 | $ 29,593 | |
NauticStar | |||
Acquisition | |||
Total identifiable intangible assets | $ 36,000 | ||
Goodwill | 37,120 | ||
Acquisition related costs | $ 1,486 | ||
NauticStar | Trade names | |||
Acquisition | |||
Indefinite-lived intangible | 16,000 | ||
NauticStar | Dealer network | |||
Acquisition | |||
Definite-lived intangible | $ 20,000 | ||
Estimated useful life | 10 years |
ACQUISITION - Pro forma Informa
ACQUISITION - Pro forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2018 | Apr. 02, 2017 | Apr. 01, 2018 | Apr. 02, 2017 | |
Pro Forma financial information | ||||
Net sales | $ 93,811 | $ 78,707 | $ 255,364 | $ 225,107 |
Net income | $ 11,609 | $ 3,060 | $ 28,692 | $ 13,727 |
Basic earnings per share | $ 0.62 | $ 0.16 | $ 1.54 | $ 0.74 |
Diluted earnings per share | $ 0.62 | $ 0.16 | $ 1.53 | $ 0.74 |
INVENTORIES - Components (Detai
INVENTORIES - Components (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Jun. 30, 2017 |
INVENTORIES | ||
Raw materials and supplies | $ 11,178 | $ 7,164 |
Work in process | 2,636 | 1,772 |
Finished goods | 7,647 | 3,427 |
Obsolescence reserve | (1,171) | (687) |
Total inventories | $ 20,290 | $ 11,676 |
PREPAID EXPENSES AND OTHER CU36
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Components (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Jun. 30, 2017 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Prepaid photo shoot | $ 525 | $ 497 |
Insurance | 1,348 | 765 |
Trade show deposits | 73 | |
Interest rate cap | 481 | 90 |
Other | 1,242 | 1,013 |
Total prepaid expenses and other current assets | $ 3,596 | $ 2,438 |
ACCRUED EXPENSES AND OTHER CU37
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Jun. 30, 2017 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Warranty | $ 15,605 | $ 12,237 |
Self-insurance | 729 | 763 |
Compensation and related accruals | 3,411 | 1,691 |
Inventory repurchase contingent obligation | 1,450 | 1,008 |
Interest | 2,079 | 1,008 |
Dealer incentives | 4,350 | 2,755 |
Other | 2,719 | 1,948 |
Total accrued expenses and other current liabilities | $ 30,343 | $ 21,410 |
ACCRUED EXPENSES AND OTHER CU38
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Warranty Liability (Details) $ in Thousands | 9 Months Ended |
Apr. 01, 2018USD ($) | |
Roll forward of the accrued warranty liability | |
Beginning balance | $ 12,237 |
Provisions | 4,530 |
Additions for NauticStar acquisition | 1,992 |
Payments made | (2,919) |
Adjustments to preexisting warranties | (235) |
Ending balance | $ 15,605 |
GOODWILL AND OTHER INTANGIBLE39
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) $ in Thousands | 9 Months Ended |
Apr. 01, 2018USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 29,593 |
Addition related to the acquisition of NauticStar | 37,120 |
Goodwill, ending balance | $ 66,713 |
GOODWILL AND OTHER INTANGIBLE40
GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Jun. 30, 2017 |
Amortizable intangible assets | ||
Gross Carrying Amount | $ 21,590 | $ 1,590 |
Accumulated Amortization | (2,024) | (947) |
Total | 19,566 | 643 |
Indefinite-lived intangible assets | ||
Trade names | 32,000 | 16,000 |
Total intangible assets | ||
Gross Carrying Amount | 53,590 | 17,590 |
Net Carrying Amount | 51,566 | 16,643 |
Dealer network | ||
Amortizable intangible assets | ||
Gross Carrying Amount | 21,590 | 1,590 |
Accumulated Amortization | (2,024) | (947) |
Total | $ 19,566 | $ 643 |
GOODWILL AND OTHER INTANGIBLE41
GOODWILL AND OTHER INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2018 | Apr. 02, 2017 | Apr. 01, 2018 | Apr. 02, 2017 | Jun. 30, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |||||
Amortization of intangible assets | $ 524 | $ 26 | $ 1,077 | $ 80 | |
Estimated amortization expense | |||||
Remainder of 2018 | 527 | 527 | |||
2,019 | 2,107 | 2,107 | |||
2,020 | 2,107 | 2,107 | |||
2,021 | 2,107 | 2,107 | |||
2,022 | 2,107 | 2,107 | |||
and thereafter | 10,611 | 10,611 | |||
Total | $ 19,566 | $ 19,566 | $ 643 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Nov. 26, 2017 | Jun. 30, 2017 |
Assets and liabilities measured at fair value | |||
Asset | $ 481 | $ 90 | |
Recurring | |||
Assets and liabilities measured at fair value | |||
Transfers of assets between Level 1 and Level 2 | 0 | ||
Transfers of liabilities between Level 1 and Level 2 | 0 | ||
Interest rate cap | |||
Assets and liabilities measured at fair value | |||
Outstanding principal of long-term debt | $ 34,594 | ||
Interest rate cap | LIBOR | |||
Assets and liabilities measured at fair value | |||
Interest rate cap | 2.00% | ||
Level 2 | Interest rate cap | Recurring | |||
Assets and liabilities measured at fair value | |||
Asset | $ 481 | $ 90 |
LONG-TERM DEBT - Components (De
LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Jun. 30, 2017 |
Long-term debt | ||
Long-term debt, net of unamortized debt issuance costs | $ 86,047 | $ 34,477 |
Less current portion of long term debt | 5,512 | 3,904 |
Long-term Debt - less current portion | 80,946 | 30,790 |
Senior secured term loan | ||
Long-term debt | ||
Long-term debt | 87,651 | 35,135 |
Debt issuance costs on term loan | (1,604) | (658) |
Less current portion of debt issuance costs on term loan | $ (411) | $ (217) |
LONG-TERM DEBT - Senior Secured
LONG-TERM DEBT - Senior Secured Credit Facility (Details) - USD ($) $ in Thousands | Feb. 28, 2018 | Dec. 01, 2017 | Oct. 17, 2017 | Oct. 02, 2017 | Apr. 01, 2018 | Jun. 30, 2017 |
Long-term debt | ||||||
Unamortized deferred financing costs | $ 406 | $ 481 | ||||
Third Amended Credit Agreement | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 145,000 | |||||
Financing costs | 1,322 | |||||
Total unamortized deferred financing costs | 2,010 | 1,139 | ||||
Senior secured term loan | ||||||
Long-term debt | ||||||
Loan commitment | 115,000 | |||||
Voluntary payments | $ 8,000 | $ 7,000 | $ 10,000 | |||
Revolving credit facility | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 30,000 | |||||
Outstanding borrowings | 0 | 0 | ||||
Letters of credit outstanding | 0 | 250 | ||||
Net availability under facility | 30,000 | 29,750 | ||||
Unamortized deferred financing costs | $ 406 | $ 481 | ||||
Prime Rate | Third Amended Credit Agreement | ||||||
Long-term debt | ||||||
Effective interest rate | 1.25% | |||||
Prime Rate | Third Amended Credit Agreement | Minimum | ||||||
Long-term debt | ||||||
Variable margin rate | 0.75% | |||||
Prime Rate | Third Amended Credit Agreement | Maximum | ||||||
Long-term debt | ||||||
Variable margin rate | 1.75% | |||||
LIBOR | Third Amended Credit Agreement | ||||||
Long-term debt | ||||||
Effective interest rate | 2.25% | |||||
LIBOR | Third Amended Credit Agreement | Minimum | ||||||
Long-term debt | ||||||
Variable margin rate | 1.75% | |||||
LIBOR | Third Amended Credit Agreement | Maximum | ||||||
Long-term debt | ||||||
Variable margin rate | 2.75% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Apr. 01, 2018 | Apr. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Effective tax rate | 23.20% | |||
Effect of Tax Cuts and Jobs Act of 2017, Accounting Incomplete, Provisional | ||||
Provisional expense to reflect deferred tax assets at blended effective rate | $ 348 | $ 348 | ||
Provisional benefit as a result of applying new lower federal income tax rates to net deferred tax liabilities | $ 674 | $ 674 | ||
Forecast | ||||
Statutory income tax rate | 21.00% | 28.10% |
EARNINGS PER SHARE - Factors (D
EARNINGS PER SHARE - Factors (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2018 | Apr. 02, 2017 | Apr. 01, 2018 | Apr. 02, 2017 | |
Factors used in the earnings per share computation | ||||
Net income | $ 11,454 | $ 2,241 | $ 26,509 | $ 13,255 |
Weighted average common shares - basic | 18,622,083 | 18,593,296 | 18,619,006 | 18,592,680 |
Weighted average outstanding shares - diluted | 18,728,424 | 18,625,904 | 18,705,801 | 18,607,862 |
Basic earnings per share (in dollars per share) | $ 0.62 | $ 0.12 | $ 1.42 | $ 0.71 |
Diluted earnings per share (in dollars per share) | $ 0.61 | $ 0.12 | $ 1.42 | $ 0.71 |
Stock options | ||||
Factors used in the earnings per share computation | ||||
Dilutive effect of assumed exercises of stock options and restricted share awards\units | 41,372 | 35,770 | ||
Restricted stock awards | ||||
Factors used in the earnings per share computation | ||||
Dilutive effect of assumed exercises of stock options and restricted share awards\units | 64,970 | 32,608 | 51,026 | 15,182 |
EARNINGS PER SHARE - Anti-dilut
EARNINGS PER SHARE - Anti-dilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2018 | Apr. 02, 2017 | Apr. 01, 2018 | Apr. 02, 2017 | |
Restricted stock awards | ||||
Other disclosures | ||||
Anti-dilutive securities excluded from computation of earning per share | 1,039 | 34,948 | 11,023 | |
Stock options | ||||
Other disclosures | ||||
Anti-dilutive securities excluded from computation of earning per share | 122,640 | 122,640 |
STOCK-BASED COMPENSATION - Perf
STOCK-BASED COMPENSATION - Performance Stock Awards (Details) - 2015 Plan - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Nov. 26, 2017 | Jul. 30, 2017 | Apr. 01, 2018 | Apr. 02, 2017 | |
Performance stock units | ||||
Stock-Based Compensation | ||||
Stock-based compensation | $ 882 | $ 520 | ||
Certain employees | Restricted stock awards | ||||
Stock-Based Compensation | ||||
Granted | 5,578 | 23,932 | ||
Grant date market price | $ 22.31 | $ 19.34 | ||
Vesting period (in years) | 3 years | |||
Certain employees | Performance stock units | ||||
Stock-Based Compensation | ||||
Granted | 2,487 | 23,929 | ||
Grant date market price | $ 23.45 | $ 20.33 | ||
Vesting period (in years) | 3 years | |||
Non-employee directors | Restricted stock awards | ||||
Stock-Based Compensation | ||||
Granted | 17,064 | |||
Grant date market price | $ 19.34 |
STOCK-BASED COMPENSATION - Nonq
STOCK-BASED COMPENSATION - Nonqualified Options (Details) - Stock options - 2015 Plan - $ / shares | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2016 | Jul. 28, 2015 | Apr. 01, 2018 | |
Stock-Based Compensation | |||
Reduction in exercise price | $ 4.30 | ||
Adjusted exercise option price | $ 10.70 | ||
Black-Scholes Pricing Model fair value assumptions | |||
Risk-free interest rate (as a percent) | 1.93% | ||
Expected term (in years) | 6 years 3 months | ||
Dividend yield (as a percent) | 0.00% | ||
Volatility rate (as a percent) | 56.70% | ||
Certain employees | |||
Stock-Based Compensation | |||
Granted | 137,786 | ||
Option price at grant date | $ 15 | ||
Certain employees | 1st Anniversary | |||
Stock-Based Compensation | |||
Annual vesting percentage | 25.00% | ||
Certain employees | 2nd Anniversary | |||
Stock-Based Compensation | |||
Annual vesting percentage | 25.00% | ||
Certain employees | 3rd Anniversary | |||
Stock-Based Compensation | |||
Annual vesting percentage | 25.00% | ||
Certain employees | 4th Anniversary | |||
Stock-Based Compensation | |||
Annual vesting percentage | 25.00% |
SEGMENT INFORMATION - Operating
SEGMENT INFORMATION - Operating Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2018USD ($) | Apr. 02, 2017USD ($) | Apr. 01, 2018USD ($)segment | Apr. 02, 2017USD ($) | Jun. 30, 2017USD ($) | |
Segment reporting information | |||||
Number of operating segments | segment | 2 | ||||
Number of reportable segments | segment | 2 | ||||
Net sales | $ 93,811 | $ 58,486 | $ 237,295 | $ 170,309 | |
Cost of sales | 69,429 | 43,561 | 174,816 | 123,289 | |
Operating income | 15,199 | 4,282 | 37,045 | 22,956 | |
Depreciation and amortization | 1,456 | 820 | 3,665 | 2,442 | |
Assets | 177,132 | 177,132 | $ 83,321 | ||
Goodwill | 66,713 | 66,713 | 29,593 | ||
MasterCraft | |||||
Segment reporting information | |||||
Net sales | 69,257 | 58,486 | 192,545 | 170,309 | |
Cost of sales | 49,823 | 43,561 | 138,565 | 123,289 | |
Operating income | 12,446 | 4,282 | 32,623 | 22,956 | |
Depreciation and amortization | 840 | $ 820 | 2,447 | $ 2,442 | |
Assets | 88,869 | 88,869 | 83,321 | ||
Goodwill | 29,593 | 29,593 | $ 29,593 | ||
NauticStar | |||||
Segment reporting information | |||||
Net sales | 24,554 | 44,750 | |||
Cost of sales | 19,606 | 36,251 | |||
Operating income | 2,753 | 4,422 | |||
Depreciation and amortization | 616 | 1,218 | |||
Assets | 88,263 | 88,263 | |||
Goodwill | $ 37,120 | $ 37,120 |