MasterCraft Boat (MCFT) 10-Q 8 Feb 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 30, 2018	Feb. 06, 2019
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 30, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2
Entity Registrant Name	Mastercraft Boat Holdings, Inc.
Entity Central Index Key	1,638,290
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,727,902

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net Sales	$ 121,541	$ 78,435	$ 215,182	$ 143,484
COST OF SALES	94,467	58,501	164,905	105,387
GROSS PROFIT	27,074	19,934	50,276	38,097
OPERATING EXPENSES:
Selling and marketing	4,257	3,672	8,547	6,409
General and administrative	7,108	4,955	13,880	9,290
Amortization of intangible assets	987	525	1,517	552
Total operating expenses	12,352	9,152	23,944	16,251
OPERATING INCOME	14,722	10,782	26,333	21,846
OTHER EXPENSE:
Interest expense, net	2,042	1,139	2,962	1,630
INCOME BEFORE INCOME TAX EXPENSE	12,680	9,643	23,370	20,216
INCOME TAX EXPENSE	2,492	1,634	4,718	5,161
NET INCOME	$ 10,188	$ 8,009	$ 18,652	$ 15,055
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.55	$ 0.43	$ 1	$ 0.81
Diluted (in dollars per share)	$ 0.54	$ 0.43	$ 0.99	$ 0.81
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF:
Basic earnings per share (in shares)	18,653,111	18,619,834	18,649,575	18,617,467
Diluted earnings per share (in shares)	18,772,322	18,702,352	18,770,543	18,694,489

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 30, 2018	Jun. 30, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 18,494	$ 7,909
Accounts receivable — net of allowances of $39 and $51, respectively	6,394	5,515
Income tax receivable	1,057
Inventories, net	27,685	20,467
Prepaid expenses and other current assets	3,505	3,295
Total current assets	57,135	37,186
Property, plant and equipment — net	27,540	22,265
Intangible assets — net	84,773	51,046
Goodwill	101,389	65,792
Deferred debt issuance costs — net	508	383
Other	252	252
Total assets	271,597	176,924
CURRENT LIABILITIES:
Accounts payable	13,945	17,266
Income tax payable		705
Accrued expenses and other current liabilities	39,491	27,866
Current portion of long term debt, net of unamortized debt issuance costs	10,645	5,069
Total current liabilities	64,081	50,906
Long term debt, net of unamortized debt issuance costs	135,520	70,087
Deferred income taxes	977	1,427
Unrecognized tax positions	2,294	1,982
Total liabilities	202,872	124,402
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 18,726,190 shares at December 30, 2018 and 18,682,338 shares at June 30, 2018	187	187
Additional paid-in capital	114,694	114,052
Accumulated deficit	(46,156)	(61,717)
Total stockholders' equity	68,725	52,522
Total liabilities and stockholders' equity	$ 271,597	$ 176,924

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 30, 2018	Jun. 30, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 164	$ 51
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	18,726,190	18,682,338
Common stock, outstanding shares	18,726,190	18,682,338

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Dec. 30, 2018 - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance, beginning at Jun. 30, 2018	$ 187	$ 114,052	$ (61,717)	$ 52,522
Balance, beginning (in shares) at Jun. 30, 2018	18,682,338
Increase (decrease) in stockholders' equity
Equity-based compensation activity		642		642
Equity-based compensation activity (shares)	43,852
Net income			18,652	18,652
Balance, ending at Dec. 30, 2018	$ 187	$ 114,694	(46,156)	68,725
Balance, ending (in shares) at Dec. 30, 2018	18,726,190
Increase (decrease) in stockholders' equity
Adoption of accounting standards (Note 2) | ASU 14-09			$ (3,091)	$ (3,091)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	6 Months Ended
	Dec. 30, 2018USD ($)	Dec. 31, 2017USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 18,652	$ 15,055
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,359	2,210
Inventory obsolescence reserve	164	(322)
Amortization of debt issuance costs	268	235
Stock-based compensation	788	528
Change in interest rate cap fair value	184
Unrecognized tax benefits	312	258
Deferred income taxes	488	(604)
Net provision for doubtful accounts	113	(21)
Loss on disposal of fixed assets	8
Changes in operating assets and liabilities:
Accounts receivable	4,280	3,377
Inventories	2,546	101
Prepaid expenses and other current assets	(210)	(489)
Income taxes	(1,762)	1,633
Other assets		(11)
Accounts payable	(6,512)	(849)
Accrued expenses and other current liabilities	5,183	1,351
Net cash provided by operating activities	27,861	22,452
CASH FLOWS FROM INVESTING ACTIVITIES:
Disposal of equipment	5	96
Payments for acquisitions, net of cash acquired	(81,729)	(79,128)
Purchases of property and equipment	(6,022)	(1,474)
Net cash used in investing activities	(87,746)	(80,506)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt	80,000	80,832
Cash paid for withholding taxes on vested stock	(146)	(43)
Principal payments on long-term debt	(8,656)	(19,201)
Payments of debt issuance costs	(728)	(1,322)
Net cash provided from financing activities	70,470	60,266
NET CHANGE IN CASH AND CASH EQUIVALENTS	10,585	2,212
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD	7,909	4,038
CASH AND CASH EQUIVALENTS — END OF PERIOD	18,494	6,250
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash payments for interest	1,146	1,383
Cash payments for income taxes	$ 5,679	3,872
SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued working capital adjustment - NauticStar acquisition		$ 1,383

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	6 Months Ended
	Dec. 30, 2018
ORGANIZATION AND NATURE OF BUSINESS
ORGANIZATION AND NATURE OF BUSINESS	1. MasterCraft Boat 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 (“MasterCraft”); Nautic Star, LLC (“NauticStar”); NS Transport, LLC; Crest Marine LLC (“Crest”); MasterCraft Services, LLC; 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 and its subsidiaries. On October 1, 2018, the Company acquired all of the outstanding membership interest of Crest Marine LLC, a Michigan limited liability company. As a result of the acquisitions, the Company consolidated the financial results of NauticStar and Crest. See Note 4. The Company is a leading innovator, designer, manufacturer and marketer of premium recreational powerboats that operates in three reportable segments: MasterCraft, NauticStar and Crest. 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	6 Months Ended
	Dec. 30, 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, 2018 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, 2018. 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, 2018 and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company’s financial position as of December 30, 2018, its results of its operations for the three and six months ended December 30, 2018 and December 31, 2017, its cash flows for the six months ended December 30, 2018 and December 31, 2017, and its statement of shareholders’ equity for the three and six months ended December 30, 2018. All adjustments are of a normal recurring nature. The Company’s interim operating results for the six months ended December 30, 2018 and December 31, 2017 are not necessarily indicative of the results to be expected in future operating quarters. With the exception of Accounting Standards Update (“ASU”) 2014-09 discussed below, there were no significant changes in or changes in the application of the Company’s critical accounting policies or estimation procedures for the six months ended December 30, 2018 as compared with the significant accounting policies described in the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2018. Recently Adopted Accounting Standards — In May 2014, the Financial Accounting Standards Board (the “FASB”) and International Accounting Standards Board jointly issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) , which provides a principle-based accounting guidance for revenue recognition. ASU 2014-09, as amended, became effective for public companies for annual and interim periods beginning after December 15, 2017. Effective July 1, 2018, the Company adopted the new revenue standard using the modified retrospective transition approach by recognizing a cumulative adjustment to the opening balance of retained earnings. Due to the implementation of ASU 2014-09, the Company has changed the timing of when it records retail promotions and rebates. The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheets as of July 1, 2018 for the adoption of the new revenue standard was as follows: Balance as of Adjustments Balance as of June 30, 2018 Due to ASC 606 July 1, 2018 Accrued expenses and other current liabilities $ 27,866 $ 4,029 $ 31,895 Deferred income taxes 1,427 (938) 489 Accumulated deficit (61,717) (3,091) (64,808) The following table summarizes the impact of ASU 2014-09 on the Company’s Condensed Consolidated Statement of Operations for the three and six months ended December 30, 2018, respectively: Three Months Ended December 30, 2018 Balances without Statement of Operations As Reported Effect of Change adoption of ASC 606 Net sales $ 121,541 $ 825 $ 122,366 Income before income tax expense 12,680 825 13,505 Income tax expense 2,492 167 2,659 Net income 10,188 658 10,846 Six Months Ended December 30, 2018 Balances without Statement of Operations As Reported Effect of Change adoption of ASC 606 Net sales $ 215,182 $ 1,342 $ 216,524 Income before income tax expense 23,370 1,342 24,712 Income tax expense 4,718 271 4,989 Net income 18,652 1,071 19,723 The following table summarizes the impact of ASU 2014-09 on the Company’s Condensed Consolidated Balance Sheet as of December 30, 2018: Balances without Balance Sheet As Reported Effect of Change adoption of ASC 606 Accrued expenses and other current liabilities $ 39,491 $ (5,210) $ 34,281 Income taxes 2,214 1,209 3,423 Accumulated deficit (46,156) 4,001 (42,155) Recently Issued Accounting Standards — In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This guidance modifies the disclosure requirements on fair value measurements in Topic 820 by removing disclosures regarding transfers between Level 1 and Level 2 of the fair value hierarchy, by modifying the measurement uncertainty disclosure, and by requiring additional disclosures for Level 3 fair value measurements, among others. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, 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 June 2018, the FASB issued ASU 2018-07 , Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This guidance provides clarity and reduces complexity when applying the guidance in Topic 718, Compensation—Stock Compensation to the term or condition of share-based payments to nonemployees. ASU 2018-07 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018. 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. This guidance will be adopted for the fiscal year beginning July 1, 2019. 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 its financial position or results of operations and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record an 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 statement of operations. 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. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements , providing for an additional transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company expects to adopt the new standard on July 1, 2019 and use the effective date as the date of initial application. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits it not to reassess under the new standard the Company’s prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The Company expects that this standard will have a material effect on our financial statements. However, the Company is still in the process of assessing the impact of the new standard, and, therefore, the full quantitative impact cannot be reasonably estimated at this time. While the Company continues to assess all of the effects of adoption, it currently believes the most significant effects relate to the recognition of the new ROU assets and lease liabilities on the Company’s balance sheet for its building and equipment operating leases and providing significant new disclosures about its leasing activities.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Dec. 30, 2018
REVENUE RECOGNITION
REVENUE RECOGNITION	3. The following table presents the Company’s revenue by major product categories for the three and six months ended December 30, 2018: Three Months Ended December 30, 2018 MasterCraft NauticStar Crest Total Major Product Categories Boats and trailers $ 74,976 $ 19,182 $ 25,754 $ 119,912 Parts 1,101 14 86 1,201 Other revenue 320 — 108 428 Total $ 76,397 $ 19,196 $ 25,948 $ 121,541 Six Months Ended December 30, 2018 MasterCraft NauticStar Crest Total Major Product Categories Boats and trailers $ 147,352 $ 36,305 $ 25,754 $ 209,411 Parts 4,682 294 86 5,062 Other revenue 597 4 108 709 Total $ 152,631 $ 36,603 $ 25,948 $ 215,182 The Company recognizes revenue when obligations under the terms of a contract are satisfied and control over promised goods is transferred to a customer. For the majority of sales, this occurs when the product is released to the carrier responsible for transporting it to a customer. The Company typically receives payment within 5 days of shipment. Revenue is measured as the amount of consideration it expects to receive in exchange for a product. The consideration recognized represents the amount specified in a contract with a customer, net of estimated dealer and retail sales incentives the Company reasonably expects to pay. The estimated liability and reduction in revenue for sales incentives is recorded at the time of sale. The Company estimates the amount of sales incentives based on historical data for specific boat models adjusted for forecasted sales volume, product mix, customer behavior and assumptions concerning market conditions. Subsequent adjustments to incentive estimates are possible as facts and circumstances change over time. A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the point at which it receives pre-payment from the customer. The Company’s contract liabilities were $956 and $2,194 as of December 30, 2018 and June 30, 2018, respectively and are classified as “Accrued expenses and other current liabilities” in its Condensed Consolidated Balance Sheets. The Company has excluded sales and other taxes assessed by a governmental authority in connection with revenue-producing activities from the determination of the transaction price for all contracts. The Company has elected to account for shipping and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost that are included in cost of sales. As contracts are fulfilled within one year from the date of the contract, revenue adjustments for a potential financing component or the costs to obtain the contract are not made. The Company applied the practical expedient in ASU 2014-09 and has not disclosed information about remaining performance obligations that have original expected durations of 12 months or less.

ACQUISITION

ACQUISITION	6 Months Ended
	Dec. 30, 2018
ACQUISITION
ACQUISITION	4. Crest Acquisition: On October 1, 2018, the Company completed its acquisition of Crest, a manufacturer of premium pontoon boats, providing the Company with additional product diversification. With the acquisition of Crest, the Company expanded its product portfolio and now operates in three segments of the powerboat industry – performance sport boats, outboard saltwater fishing boats and pontoon boats. T he purchase price was $81,729 , 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 Crest. 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 1, 2018. The preliminary measurements of fair value were based upon estimates utilizing the assistance of third-party valuation specialists and are subject to change. The Company expects the valuation of tangible and intangible assets and working capital adjustments to be finalized during the second half of fiscal 2019. The following table summarizes the preliminary purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed of Crest at the acquisition date: Purchase Price: Cash paid, net of cash acquired $ 81,729 Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: Accounts receivable $ 5,272 Inventories 9,928 Other current assets 185 Property, plant and equipment 1,840 Identifiable intangible assets 35,245 Current liabilities (6,338) Fair value of assets acquired and liabilities assumed 46,132 Goodwill 35,597 $ 81,729 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 $ 18,000 Software 245 Indefinite-lived intangible: Trade name 17,000 Total identifiable intangible assets $ 35,245 The value allocated to inventories reflect 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 Crest’s dealer network is attributed to its long-standing dealer relationships. 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. · Software – The value attributed to Crests’ software was determined using the replacement cost method, a variation of cost approach, which requires an estimate of the replacement cost and incorporates an obsolescence factor and a developer’s profit margin. · Trade Name – The value attributed to Crest’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 provision of ASC Topic 350, Intangibles—Goodwill and Other. The weighted average useful life of identifiable definite-lived intangible assets acquired was 9.9 years. Goodwill of $35,597 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 assets and goodwill acquired are expected to be deductible for income tax purposes. Acquisition related costs of $2,017, which were incurred by the Company during the first half of fiscal 2019, were expensed in the period incurred, and are included in general and administrative expenses in the consolidated statement of operations and comprehensive income for the three and six months ended December 30, 2018. NauticStar Acquisition: 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 estimates of their fair values as of the date of acquisition. The Company has recorded the tangible and intangible assets acquired and liabilities assumed based on their fair values as of October 2, 2017. The measurements of fair value were based upon estimates utilizing the assistance of third party valuation specialists. The following table summarizes the 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 amounts of identifiable assets acquired and (liabilities assumed), at fair value: Accounts receivable $ 1,773 Inventories 6,358 Other current assets 94 Indemnification asset 166 Deferred income taxes 83 Property, plant and equipment 4,945 Identifiable intangible assets 36,000 Current liabilities (4,858) Unrecognized tax positions (249) Fair value of assets acquired and liabilities assumed 44,312 Goodwill 36,199 $ 80,511 Pro Forma Financial Information: The following unaudited pro forma consolidated results of operations for the three and six months ended December 30, 2018 and three and six months ended December 31, 2017, assumes that the acquisitions of NauticStar and Crest occurred as of July 1, 2017, the beginning of the comparable prior annual reporting period presented. The unaudited pro forma financial information combines historical results of MasterCraft, NauticStar and Crest, with adjustments for depreciation and amortization expense based upon the fair value step-up and estimated useful lives of depreciable fixed assets and definite-life amortizable assets acquired. Adjustments also include an increase of interest expense as if the Company’s debt obtained in connection with the acquisitions had been outstanding since July 1, 2017. The unaudited pro forma financial results include non-recurring adjustments for transaction costs directly attributable to the acquisitions and costs associated with the fair value step-up of inventory. The provision for income taxes has also been adjusted for all periods, based upon the foregoing adjustments to historical results. 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 2018 or the results that may occur in the future: Three Months Ended Six Months Ended December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017 Net sales $ 121,541 $ 94,342 $ 236,175 $ 189,507 Net income $ 11,026 $ 8,773 $ 20,819 $ 13,398 Basic earnings per share $ 0.59 $ 0.47 $ 1.12 $ 0.72 Diluted earnings per share $ 0.59 $ 0.47 $ 1.11 $ 0.72 Effective October 1, 2018, in connection with the purchase of Crest, the Company entered into a lease agreement with Crest Marine Real Estate LLC (“Real Estate”) for a manufacturing facility, storage and office building. The ten-year lease expires September 30, 2028, subject to four consecutive five year extension periods. The annual rent is $330 for the first five years of the lease term and will increase to $425 for the remaining five years. Additionally, during the option terms the rent will be adjusted every five years based upon the increase in the Consumer Price Index. One of the minority owners of Real Estate is a member of the Crest management team. Crest purchases fiberglass component parts from a supplier whose minority owner is the same member of the Crest management team that has a minority ownership in Real Estate. During the three months ended December 30, 2018, the Company purchased $942 of products from the supplier. As of December 30, 2018, the outstanding balance due to the supplier is $120.

INVENTORIES

INVENTORIES	6 Months Ended
	Dec. 30, 2018
INVENTORIES
INVENTORIES	5. Inventories consisted of the following: December 30, 2018 June 30, 2018 Raw materials and supplies $ 19,404 $ 9,587 Work in process 3,276 2,822 Finished goods 6,137 9,026 Obsolescence reserve (1,132) (968) Total inventories $ 27,685 $ 20,467

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	6 Months Ended
	Dec. 30, 2018
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS	6. Prepaid expenses and other current assets consisted of the following: December 30, 2018 June 30, 2018 Prepaid photo shoot $ 1,027 $ 273 Insurance 515 974 Trade show deposits 429 111 Interest rate cap 341 525 Other 1,193 1,412 Total prepaid expenses and other current assets $ 3,505 $ 3,295

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	6 Months Ended
	Dec. 30, 2018
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	7. Accrued expenses and other current liabilities consisted of the following: December 30, 2018 June 30, 2018 Warranty $ 15,964 $ 13,077 Self-insurance 667 703 Compensation and related accruals 2,692 2,995 Inventory repurchase contingent obligation 2,139 1,274 Floor plan interest 3,376 1,228 Debt interest 1,714 244 Dealer incentives 9,842 4,628 Other 3,097 3,717 Total accrued expenses and other current liabilities $ 39,491 $ 27,866 The following table provides a roll forward of the accrued warranty liability: Beginning balance - June 30, 2018 $ 13,077 Provisions 3,621 Additions for Crest acquisition 681 Payments made (3,657) Adjustments to preexisting warranties 2,242 Ending balance - December 30, 2018 $ 15,964 During the second quarter of fiscal 2019, the Company identified errors in how accrued warranty was calculated that resulted in a net out-of-period adjustment that decreased earnings for the three months ended December 30, 2018 and increased accrued expenses and other current liabilities as of December 30, 2018 by $225. The Company determined that inaccurate data on the cost of parts was used to estimate the warranty liability. The impact of this adjustment resulted in a $1,125 increase in earnings for the three months ended December 30, 2018, with a corresponding decrease in accrued expenses and other current liabilities on the consolidated balance sheet as of December 30, 2018. The Company also determined that faulty assumptions were used when estimating costs for warranty periods impacted by the change to a five-year warranty. The adjustment resulted in a $1,350 decrease in earnings for the three months ended December 30, 2018, with a corresponding increase in accrued expenses and other current liabilities on the consolidated balance sheet as of December 30, 2018. Management evaluated the effect of the adjustments on the Company’s financial statements under the provision of ASC 250: Accounting Changes and Error Corrections and Staff Accounting Bulletin No. 108: Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements and concluded that the were immaterial to the current year and prior year’s annual and quarterly financial statements.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Dec. 30, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	8. The changes in the carrying amount of goodwill for the six months ended December 30, 2018, were as follows: Goodwill as of June 30, 2018 $ 65,792 Addition related to the acquisition of Crest 35,597 Goodwill as of December 30, 2018 $ 101,389 As of December 30, 2018, and June 30, 2018, details of the Company’s intangible assets other than goodwill were as follows: December 30, 2018 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Dealer network $ 39,500 $ (3,959) $ 35,541 Software 245 (13) 232 Total amortizable intangible assets 39,745 (3,972) 35,773 Trade names 49,000 — 49,000 Total intangible assets $ 88,745 $ (3,972) $ 84,773 June 30, 2018 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Dealer network $ 21,590 $ (2,544) $ 19,046 Total amortizable intangible assets 21,590 (2,544) 19,046 Trade names 32,000 — 32,000 Total intangible assets $ 53,590 $ (2,544) $ 51,046 Amortization expense recognized on all amortizable intangibles was $987 and $1,517 for the three months and six months ended December 30, 2018, respectively. Amortization expense recognized on all amortizable intangibles was $525 and $552 for the three months and the six months ended December 31, 2017, respectively. The estimated future amortization of definite-lived intangible assets is as follows: Fiscal years ending June 30, Remainder of 2019 $ 2,440 2020 3,956 2021 3,956 2022 3,956 2023 3,956 and thereafter 17,510 Total $ 35,773

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Dec. 30, 2018
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	9. 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: December 30, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Asset — interest rate cap $ — $ 341 $ — June 30, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Asset — interest rate cap $ — $ 525 $ — 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”) 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 six months ended December 30, 2018.

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Dec. 30, 2018
LONG-TERM DEBT
LONG-TERM DEBT	10. Long-term debt outstanding is as follows: December 30, 2018 June 30, 2018 Revolving credit facility $ — $ — Senior secured term loan 148,000 76,656 Debt issuance costs on term loan (1,835) (1,500) Total debt 146,165 75,156 Less current portion of long-term debt 11,100 5,475 Less current portion of debt issuance costs on term loan (455) (406) Long-term debt — less current portion $ 135,520 $ 70,087 On October 1, 2018, the Company entered into a Fourth 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 “Fourth Amended Credit Agreement”). The Fourth Amended Credit Agreement replaced the Company’s Third Amended and Restated Credit Agreement, dated October 2, 2017. The Fourth Amended Credit Agreement provides the Company with a $190,000 senior secured credit facility, consisting of a $75,000 term loan and an $80,000 term loan (together, the “Term Loans”) and a $35,000 revolving credit facility (the “Revolving Credit Facility”). Proceeds from the $80,000 term loan went to pay for the Crest acquisition. The Fourth Amended Credit Agreement bears interest, at the Company’s option, at either the prime rate plus an applicable margin ranging from 0.5% to 1.5% or at an adjusted LIBOR rate plus an applicable margin ranging from 1.5% to 2.5%, 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 1.00% and the applicable margin for loans accruing interest at LIBOR is 2.00%. The Term Loans will mature and all remaining amounts outstanding thereunder will be due and payable on October 1, 2023. During the three months ended December 30, 2018, the Company made voluntary payments on the Term Loans of $7,000 out of excess cash. As of December 30, 2018 and June 30, 2018, the Company’s unamortized debt issuance costs related to the Term Loans were $1,835 and $1,499, respectively. These costs are being amortized over the term of the Fourth Amended Credit Agreement. As of December 30, 2018, the Company was in compliance with all of its debt covenants under its Fourth Amended Credit Agreement. As of December 30, 2018, the Company had no borrowings outstanding on its Revolving Credit Facility. As of December 30, 2018 and June 30, 2018, availability under the Revolving Credit Facility was $35,000 and $30,000, respectively. The Company’s unamortized debt issuance costs on its Revolving Credit Facility were $508 and $383 as of December 30, 2018 and June 30, 2018, respectively.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 30, 2018
INCOME TAXES
INCOME TAXES	11. The Company’s consolidated interim 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 30, 2018, the Company’s effective tax rate was 20.2%. The differences in the Company’s effective tax rate in comparable historical periods presented and the statutory federal tax rate of 21% primarily relate to a permanent benefit associated with the foreign derived intangible income deduction and the inclusion of the state tax rate in the overall effective rate. The Company’s consolidated interim effective tax rate for the six months ended December 30, 2018 is lower compared to the 25.5% effective tax rate for the six months ended December 31, 2017, primarily due to the enactment of the Tax Cuts and Jobs Act.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Dec. 30, 2018
EARNINGS PER SHARE
EARNINGS PER SHARE	12. The following table sets forth the computation of the Company’s earnings per share: Three Months Ended Six Months Ended December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017 Net income $ 10,188 $ 8,009 $ 18,652 $ 15,055 Weighted average common shares — basic 18,653,111 18,619,834 18,649,575 18,617,467 Dilutive effect of assumed exercises of stock options 50,261 34,994 51,307 32,969 Dilutive effect of assumed restricted share awards/units 68,950 47,524 69,661 44,054 Weighted average outstanding shares — diluted 18,772,322 18,702,352 18,770,543 18,694,489 Basic earnings per share $ 0.55 $ 0.43 $ 1.00 $ 0.81 Diluted earnings per share $ 0.54 $ 0.43 $ 0.99 $ 0.81 For the three and six months ended December 30, 2018 and December 31, 2017, the weighted average shares that were anti-dilutive, and therefore excluded from the computation of diluted earnings per share, included 1,559 restricted stock awards and 2,925 performance stock units.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Dec. 30, 2018
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	13. During fiscal year ended June 30, 2015 the Company adopted the Amended and Restated MasterCraft Boat 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. In July 2018, the Company granted to certain employees 31,207 shares of restricted stock awards (“RSAs”) under the 2015 Plan at a per share fair value of $26.59. The RSAs will vest in three equal annual installments. In July 2018, the Company granted 12,414 RSAs under the 2015 Plan to certain non-employee directors for their annual equity award at a per share fair value of $26.59. The RSAs vest on June 30, 2019. In August 2018, the Company granted 262 of RSAs to certain employees under the 2015 Plan at a per share fair value of $25.27. The RSAs will vest in three equal installments. In October 2018, the Company granted to a certain employee 1,559 RSAs under the 2015 Plan at a per share fair value of $36.10. The RSAs will vest in three equal annual installments. In October 2018, the Company granted 1,801 RSAs under the 2015 Plan to a newly elected non-employee director at a per share fair value of $33.22. The RSAs vest on June 30, 2019. In November 2018, the Company granted to certain employees 1,072 RSAs under the 2015 Plan at a per share fair value of $27.66. The RSAs will vest on the first anniversary of the grant date. The per share value for each of the above RSA grants is equal to the market value of the Company’s common stock on the grant date. In August 2018, the Company granted to certain employees 33,082 performance stock units (“PSUs”) under its 2015 Plan at a per share fair value of $31.60. In October 2018, the Company granted 1,559 performance stock units (“PSUs”) under its 2015 Plan to a certain employee at a per share fair value of $31.60. The fair value was estimated based on long-term market performance targets using a Monte Carlo Simulation model, which considers the likelihood of all possible outcomes and determines the number of shares expected to vest under each simulation and the expected stock price at that level. 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 is a three-year period commencing July 1, 2018 and ending June 30, 2021. Following the determination of the Company’s achievement with respect to the performance criteria, the number of shares awarded will be subject to adjustment based upon the application of a total shareholder return (“TSR”) modifier. During the six months ended December 30, 2018 and December 31, 2017, the Company recognized $788 and $528, respectively in stock-based compensation expense.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Dec. 30, 2018
SEGMENT INFORMATION
SEGMENT INFORMATION	14. The Company designs, manufactures, and markets recreational premium performance sport boats and outboard boats under three operating and reportable segments: MasterCraft, NauticStar and Crest. The Company’s segments are defined by management’s reporting structure and distribution channels. The MasterCraft segment consists of recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. The NauticStar segment consists of outboard boats primarily used for salt water fishing, and general recreational boating. Crest manufactures premium outboard pontoon boats. The Company distributes the MasterCraft, NauticStar and Crest products through its dealer network. Company management regularly reviews the operating performance of each segment including measures of performance based on income from operations. The Company files a consolidated income tax return and does not allocate income taxes and certain 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 six months ended December 30, 2018 and December 31, 2017, respectively, and the Company’s financial position at December 30, 2018 and June 30, 2018, respectively. Three Months Ended December 30, 2018 MasterCraft NauticStar Crest Consolidated Net sales $ 76,397 $ 19,196 $ 25,948 $ 121,541 Cost of sales 56,852 16,187 21,428 94,467 Operating income 11,414 1,072 2,235 14,722 Depreciation and amortization 732 654 537 1,923 Three Months Ended December 31, 2017 MasterCraft NauticStar Crest Consolidated Net sales $ 58,239 $ 20,196 $ — $ 78,435 Cost of sales 41,856 16,645 — 58,501 Operating income 9,113 1,669 — 10,782 Depreciation and amortization 876 602 — 1,478 Six Months Ended December 30, 2018 MasterCraft NauticStar Crest Consolidated Net sales $ 152,631 $ 36,603 $ 25,948 $ 215,182 Cost of sales 111,875 31,602 21,428 164,905 Operating income 22,944 1,153 2,235 26,333 Depreciation and amortization 1,537 1,285 537 3,359 Six Months Ended December 31, 2017 MasterCraft NauticStar Crest Consolidated Net sales $ 123,288 $ 20,196 $ — $ 143,484 Cost of sales 88,742 16,645 — 105,387 Operating income 20,177 1,669 — 21,846 Depreciation and amortization 1,608 602 — 2,210 As of December 30, 2018 As of June 30, 2018 Assets MasterCraft $ 263,715 $ 170,218 NauticStar 83,168 87,866 Crest 87,727 — Eliminations (163,013) (81,160) Total Assets $ 271,597 $ 176,924 As of December 30, 2018 As of June 30, 2018 Goodwill MasterCraft $ 29,593 $ 29,593 NauticStar 36,199 36,199 Crest 35,597 — Total Goodwill $ 101,389 $ 65,792

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 30, 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, 2018 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, 2018.
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, 2018 and, in the opinion of management, reflect all adjustments considered necessary to present fairly the Company’s financial position as of December 30, 2018, its results of its operations for the three and six months ended December 30, 2018 and December 31, 2017, its cash flows for the six months ended December 30, 2018 and December 31, 2017, and its statement of shareholders’ equity for the three and six months ended December 30, 2018. All adjustments are of a normal recurring nature. The Company’s interim operating results for the six months ended December 30, 2018 and December 31, 2017 are not necessarily indicative of the results to be expected in future operating quarters.
New Accounting Pronouncements Issued, Adopted and Not Yet Adopted	Recently Adopted Accounting Standards — In May 2014, the Financial Accounting Standards Board (the “FASB”) and International Accounting Standards Board jointly issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) , which provides a principle-based accounting guidance for revenue recognition. ASU 2014-09, as amended, became effective for public companies for annual and interim periods beginning after December 15, 2017. Effective July 1, 2018, the Company adopted the new revenue standard using the modified retrospective transition approach by recognizing a cumulative adjustment to the opening balance of retained earnings. Due to the implementation of ASU 2014-09, the Company has changed the timing of when it records retail promotions and rebates. The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheets as of July 1, 2018 for the adoption of the new revenue standard was as follows: Balance as of Adjustments Balance as of June 30, 2018 Due to ASC 606 July 1, 2018 Accrued expenses and other current liabilities $ 27,866 $ 4,029 $ 31,895 Deferred income taxes 1,427 (938) 489 Accumulated deficit (61,717) (3,091) (64,808) The following table summarizes the impact of ASU 2014-09 on the Company’s Condensed Consolidated Statement of Operations for the three and six months ended December 30, 2018, respectively: Three Months Ended December 30, 2018 Balances without Statement of Operations As Reported Effect of Change adoption of ASC 606 Net sales $ 121,541 $ 825 $ 122,366 Income before income tax expense 12,680 825 13,505 Income tax expense 2,492 167 2,659 Net income 10,188 658 10,846 Six Months Ended December 30, 2018 Balances without Statement of Operations As Reported Effect of Change adoption of ASC 606 Net sales $ 215,182 $ 1,342 $ 216,524 Income before income tax expense 23,370 1,342 24,712 Income tax expense 4,718 271 4,989 Net income 18,652 1,071 19,723 The following table summarizes the impact of ASU 2014-09 on the Company’s Condensed Consolidated Balance Sheet as of December 30, 2018: Balances without Balance Sheet As Reported Effect of Change adoption of ASC 606 Accrued expenses and other current liabilities $ 39,491 $ (5,210) $ 34,281 Income taxes 2,214 1,209 3,423 Accumulated deficit (46,156) 4,001 (42,155) Recently Issued Accounting Standards — In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This guidance modifies the disclosure requirements on fair value measurements in Topic 820 by removing disclosures regarding transfers between Level 1 and Level 2 of the fair value hierarchy, by modifying the measurement uncertainty disclosure, and by requiring additional disclosures for Level 3 fair value measurements, among others. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, 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 June 2018, the FASB issued ASU 2018-07 , Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This guidance provides clarity and reduces complexity when applying the guidance in Topic 718, Compensation—Stock Compensation to the term or condition of share-based payments to nonemployees. ASU 2018-07 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018. 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. This guidance will be adopted for the fiscal year beginning July 1, 2019. 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 its financial position or results of operations and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record an 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 statement of operations. 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. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements , providing for an additional transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company expects to adopt the new standard on July 1, 2019 and use the effective date as the date of initial application. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits it not to reassess under the new standard the Company’s prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The Company expects that this standard will have a material effect on our financial statements. However, the Company is still in the process of assessing the impact of the new standard, and, therefore, the full quantitative impact cannot be reasonably estimated at this time. While the Company continues to assess all of the effects of adoption, it currently believes the most significant effects relate to the recognition of the new ROU assets and lease liabilities on the Company’s balance sheet for its building and equipment operating leases and providing significant new disclosures about its leasing activities.

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Dec. 30, 2018
ASU 14-09
Cumulative Effect of Adoption
Summary of cumulative effect of the changes made to the Company’s Consolidated Balance Sheets and Statement of Operations	The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheets as of July 1, 2018 for the adoption of the new revenue standard was as follows: Balance as of Adjustments Balance as of June 30, 2018 Due to ASC 606 July 1, 2018 Accrued expenses and other current liabilities $ 27,866 $ 4,029 $ 31,895 Deferred income taxes 1,427 (938) 489 Accumulated deficit (61,717) (3,091) (64,808) The following table summarizes the impact of ASU 2014-09 on the Company’s Condensed Consolidated Statement of Operations for the three and six months ended December 30, 2018, respectively: Three Months Ended December 30, 2018 Balances without Statement of Operations As Reported Effect of Change adoption of ASC 606 Net sales $ 121,541 $ 825 $ 122,366 Income before income tax expense 12,680 825 13,505 Income tax expense 2,492 167 2,659 Net income 10,188 658 10,846 Six Months Ended December 30, 2018 Balances without Statement of Operations As Reported Effect of Change adoption of ASC 606 Net sales $ 215,182 $ 1,342 $ 216,524 Income before income tax expense 23,370 1,342 24,712 Income tax expense 4,718 271 4,989 Net income 18,652 1,071 19,723 The following table summarizes the impact of ASU 2014-09 on the Company’s Condensed Consolidated Balance Sheet as of December 30, 2018: Balances without Balance Sheet As Reported Effect of Change adoption of ASC 606 Accrued expenses and other current liabilities $ 39,491 $ (5,210) $ 34,281 Income taxes 2,214 1,209 3,423 Accumulated deficit (46,156) 4,001 (42,155)

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Dec. 30, 2018
REVENUE RECOGNITION
Summary of revenues by categories	Three Months Ended December 30, 2018 MasterCraft NauticStar Crest Total Major Product Categories Boats and trailers $ 74,976 $ 19,182 $ 25,754 $ 119,912 Parts 1,101 14 86 1,201 Other revenue 320 — 108 428 Total $ 76,397 $ 19,196 $ 25,948 $ 121,541 Six Months Ended December 30, 2018 MasterCraft NauticStar Crest Total Major Product Categories Boats and trailers $ 147,352 $ 36,305 $ 25,754 $ 209,411 Parts 4,682 294 86 5,062 Other revenue 597 4 108 709 Total $ 152,631 $ 36,603 $ 25,948 $ 215,182

ACQUISITION (Tables)

ACQUISITION (Tables)	6 Months Ended
	Dec. 30, 2018
Schedule of pro forma financial information	Three Months Ended Six Months Ended December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017 Net sales $ 121,541 $ 94,342 $ 236,175 $ 189,507 Net income $ 11,026 $ 8,773 $ 20,819 $ 13,398 Basic earnings per share $ 0.59 $ 0.47 $ 1.12 $ 0.72 Diluted earnings per share $ 0.59 $ 0.47 $ 1.11 $ 0.72
Crest
Schedule of 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 $ 81,729 Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: Accounts receivable $ 5,272 Inventories 9,928 Other current assets 185 Property, plant and equipment 1,840 Identifiable intangible assets 35,245 Current liabilities (6,338) Fair value of assets acquired and liabilities assumed 46,132 Goodwill 35,597 $ 81,729
Schedule of fair value estimates of identifiable intangible assets acquired	Estimates of Fair Value Estimated Useful Life (in years) Definite-lived intangible: Dealer network $ 18,000 Software 245 Indefinite-lived intangible: Trade name 17,000 Total identifiable intangible assets $ 35,245
NauticStar
Schedule of 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 amounts of identifiable assets acquired and (liabilities assumed), at fair value: Accounts receivable $ 1,773 Inventories 6,358 Other current assets 94 Indemnification asset 166 Deferred income taxes 83 Property, plant and equipment 4,945 Identifiable intangible assets 36,000 Current liabilities (4,858) Unrecognized tax positions (249) Fair value of assets acquired and liabilities assumed 44,312 Goodwill 36,199 $ 80,511

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Dec. 30, 2018
INVENTORIES
Schedule of inventories	December 30, 2018 June 30, 2018 Raw materials and supplies $ 19,404 $ 9,587 Work in process 3,276 2,822 Finished goods 6,137 9,026 Obsolescence reserve (1,132) (968) Total inventories $ 27,685 $ 20,467

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Dec. 30, 2018
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Schedule of prepaid expenses and other current assets	December 30, 2018 June 30, 2018 Prepaid photo shoot $ 1,027 $ 273 Insurance 515 974 Trade show deposits 429 111 Interest rate cap 341 525 Other 1,193 1,412 Total prepaid expenses and other current assets $ 3,505 $ 3,295

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Dec. 30, 2018
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Schedule of accrued expenses and other current liabilities	December 30, 2018 June 30, 2018 Warranty $ 15,964 $ 13,077 Self-insurance 667 703 Compensation and related accruals 2,692 2,995 Inventory repurchase contingent obligation 2,139 1,274 Floor plan interest 3,376 1,228 Debt interest 1,714 244 Dealer incentives 9,842 4,628 Other 3,097 3,717 Total accrued expenses and other current liabilities $ 39,491 $ 27,866
Schedule of roll forward of the accrued warranty liability	Beginning balance - June 30, 2018 $ 13,077 Provisions 3,621 Additions for Crest acquisition 681 Payments made (3,657) Adjustments to preexisting warranties 2,242 Ending balance - December 30, 2018 $ 15,964

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Dec. 30, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of carrying amounts of goodwill	Goodwill as of June 30, 2018 $ 65,792 Addition related to the acquisition of Crest 35,597 Goodwill as of December 30, 2018 $ 101,389
Schedule of intangible assets other than goodwill	December 30, 2018 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Dealer network $ 39,500 $ (3,959) $ 35,541 Software 245 (13) 232 Total amortizable intangible assets 39,745 (3,972) 35,773 Trade names 49,000 — 49,000 Total intangible assets $ 88,745 $ (3,972) $ 84,773 June 30, 2018 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Dealer network $ 21,590 $ (2,544) $ 19,046 Total amortizable intangible assets 21,590 (2,544) 19,046 Trade names 32,000 — 32,000 Total intangible assets $ 53,590 $ (2,544) $ 51,046
Schedule of estimated amortization expense	Fiscal years ending June 30, Remainder of 2019 $ 2,440 2020 3,956 2021 3,956 2022 3,956 2023 3,956 and thereafter 17,510 Total $ 35,773

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Dec. 30, 2018
FAIR VALUE MEASUREMENTS
Assets measured at fair value on a recurring basis	December 30, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Asset — interest rate cap $ — $ 341 $ — June 30, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Asset — interest rate cap $ — $ 525 $ —

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Dec. 30, 2018
LONG-TERM DEBT
Schedule of long-term debt outstanding	December 30, 2018 June 30, 2018 Revolving credit facility $ — $ — Senior secured term loan 148,000 76,656 Debt issuance costs on term loan (1,835) (1,500) Total debt 146,165 75,156 Less current portion of long-term debt 11,100 5,475 Less current portion of debt issuance costs on term loan (455) (406) Long-term debt — less current portion $ 135,520 $ 70,087

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Dec. 30, 2018
EARNINGS PER SHARE
Factors used in the earnings per share computation	Three Months Ended Six Months Ended December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017 Net income $ 10,188 $ 8,009 $ 18,652 $ 15,055 Weighted average common shares — basic 18,653,111 18,619,834 18,649,575 18,617,467 Dilutive effect of assumed exercises of stock options 50,261 34,994 51,307 32,969 Dilutive effect of assumed restricted share awards/units 68,950 47,524 69,661 44,054 Weighted average outstanding shares — diluted 18,772,322 18,702,352 18,770,543 18,694,489 Basic earnings per share $ 0.55 $ 0.43 $ 1.00 $ 0.81 Diluted earnings per share $ 0.54 $ 0.43 $ 0.99 $ 0.81

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Dec. 30, 2018
SEGMENT INFORMATION
Schedule of operating information for reportable segments	Three Months Ended December 30, 2018 MasterCraft NauticStar Crest Consolidated Net sales $ 76,397 $ 19,196 $ 25,948 $ 121,541 Cost of sales 56,852 16,187 21,428 94,467 Operating income 11,414 1,072 2,235 14,722 Depreciation and amortization 732 654 537 1,923 Three Months Ended December 31, 2017 MasterCraft NauticStar Crest Consolidated Net sales $ 58,239 $ 20,196 $ — $ 78,435 Cost of sales 41,856 16,645 — 58,501 Operating income 9,113 1,669 — 10,782 Depreciation and amortization 876 602 — 1,478 Six Months Ended December 30, 2018 MasterCraft NauticStar Crest Consolidated Net sales $ 152,631 $ 36,603 $ 25,948 $ 215,182 Cost of sales 111,875 31,602 21,428 164,905 Operating income 22,944 1,153 2,235 26,333 Depreciation and amortization 1,537 1,285 537 3,359 Six Months Ended December 31, 2017 MasterCraft NauticStar Crest Consolidated Net sales $ 123,288 $ 20,196 $ — $ 143,484 Cost of sales 88,742 16,645 — 105,387 Operating income 20,177 1,669 — 21,846 Depreciation and amortization 1,608 602 — 2,210 As of December 30, 2018 As of June 30, 2018 Assets MasterCraft $ 263,715 $ 170,218 NauticStar 83,168 87,866 Crest 87,727 — Eliminations (163,013) (81,160) Total Assets $ 271,597 $ 176,924 As of December 30, 2018 As of June 30, 2018 Goodwill MasterCraft $ 29,593 $ 29,593 NauticStar 36,199 36,199 Crest 35,597 — Total Goodwill $ 101,389 $ 65,792

ORGANIZATION AND NATURE OF BU_2

ORGANIZATION AND NATURE OF BUSINESS (Details)	6 Months Ended
	Dec. 30, 2018segment
ORGANIZATION AND NATURE OF BUSINESS
Number of reportable segments	3

BASIS OF PRESENTATION AND SIG_4

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Interim Quarterly Reporting Periods (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 30, 2018	Jul. 02, 2018	Jul. 01, 2018	Jun. 30, 2018
Cumulative Effect of Adoption
Interim quarterly reporting periods	91 days
Cumulative effect of the changes
Accrued expenses and other current liabilities	$ 39,491	$ 31,895		$ 27,866
Deferred income taxes	977	489		1,427
Accumulated deficit	(46,156)	$ (64,808)		$ (61,717)
Adjustments Due to ASC 606
Cumulative effect of the changes
Accrued expenses and other current liabilities	(5,210)		$ 4,029
Deferred income taxes			(938)
Accumulated deficit	$ 4,001		$ (3,091)

BASIS OF PRESENTATION AND SIG_5

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Impact of ASU (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017	Jul. 02, 2018	Jul. 01, 2018	Jun. 30, 2018
Statement of Operations
Net Sales	$ 121,541	$ 78,435	$ 215,182	$ 143,484
Income before income tax expense	12,680	9,643	23,370	20,216
Income tax expense	2,492	1,634	4,718	5,161
Net income	10,188	$ 8,009	18,652	$ 15,055
Balance Sheet
Accrued expenses and other current liabilities	39,491		39,491		$ 31,895		$ 27,866
Income taxes	2,214		2,214
Accumulated deficit	(46,156)		(46,156)		$ (64,808)		$ (61,717)
Adjustments Due to ASC 606
Statement of Operations
Net Sales	825		1,342
Income before income tax expense	825		1,342
Income tax expense	167		271
Net income	658		1,071
Balance Sheet
Accrued expenses and other current liabilities	(5,210)		(5,210)			$ 4,029
Income taxes	1,209		1,209
Accumulated deficit	4,001		4,001			$ (3,091)
Balances without adoption of ASC 606
Statement of Operations
Net Sales	122,366		216,524
Income before income tax expense	13,505		24,712
Income tax expense	2,659		4,989
Net income	10,846		19,723
Balance Sheet
Accrued expenses and other current liabilities	34,281		34,281
Income taxes	3,423		3,423
Accumulated deficit	$ (42,155)		$ (42,155)

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017	Jun. 30, 2018
Revenue by Categories
Revenue	$ 121,541	$ 78,435	$ 215,182	$ 143,484
Revenue practical expedients
Revenue, Practical Expedient, Financing Component			true
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation			true
Accrued Expenses and Other Current Liabilities
Contract liabilities
Customer contract liabilities	956		$ 956		$ 2,194
MasterCraft
Revenue by Categories
Revenue	76,397	58,239	152,631	123,288
NauticStar
Revenue by Categories
Revenue	19,196	$ 20,196	36,603	$ 20,196
Crest
Revenue by Categories
Revenue	25,948		25,948
Boats and trailers
Revenue by Categories
Revenue	119,912		209,411
Boats and trailers | MasterCraft
Revenue by Categories
Revenue	74,976		147,352
Boats and trailers | NauticStar
Revenue by Categories
Revenue	19,182		36,305
Boats and trailers | Crest
Revenue by Categories
Revenue	25,754		25,754
Parts
Revenue by Categories
Revenue	1,201		5,062
Parts | MasterCraft
Revenue by Categories
Revenue	1,101		4,682
Parts | NauticStar
Revenue by Categories
Revenue	14		294
Parts | Crest
Revenue by Categories
Revenue	86		86
Other
Revenue by Categories
Revenue	428		709
Other | MasterCraft
Revenue by Categories
Revenue	320		597
Other | NauticStar
Revenue by Categories
Revenue			4
Other | Crest
Revenue by Categories
Revenue	$ 108		$ 108

ACQUISITION - Purchase Price Al

ACQUISITION - Purchase Price Allocation (Details) $ in Thousands	Oct. 01, 2018USD ($)item	Oct. 02, 2017USD ($)	Dec. 30, 2018USD ($)	Dec. 31, 2017USD ($)	Jun. 30, 2018USD ($)
Acquisition
Number of boat brands | item	3
Purchase Price:
Cash paid, net of cash acquired			$ 81,729	$ 79,128
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value:
Goodwill			$ 101,389		$ 65,792
Crest
Purchase Price:
Cash paid, net of cash acquired	$ 81,729
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value:
Accounts receivable	5,272
Inventories	9,928
Other current assets	185
Property, plant and equipment	1,840
Identifiable intangible assets	35,245
Current liabilities	(6,338)
Fair value of assets acquired and liabilities assumed	46,132
Goodwill	35,597
Total purchase price allocation	$ 81,729
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		6,358
Other current assets		94
Indemnification asset		166
Deferred income taxes		83
Property, plant and equipment		4,945
Identifiable intangible assets		36,000
Current liabilities		(4,858)
Unrecognized tax positions		(249)
Fair value of assets acquired and liabilities assumed		44,312
Goodwill		36,199
Total purchase price allocation		$ 80,511

ACQUISITION - Fair Value Estima

ACQUISITION - Fair Value Estimates of Intangible Assets Acquired (Details) - USD ($) $ in Thousands	Oct. 01, 2018	Dec. 30, 2018	Jun. 30, 2018
Identifiable intangible assets
Goodwill		$ 101,389	$ 65,792
Crest
Identifiable intangible assets
Total identifiable intangible assets	$ 35,245
Weighted average useful life	9 years 10 months 24 days
Goodwill	$ 35,597
Crest | General and Administrative Expense
Identifiable intangible assets
Acquisition related costs		$ 2,017
Crest | Trade names
Identifiable intangible assets
Indefinite-lived intangible	17,000
Crest | Dealer network
Identifiable intangible assets
Definite-lived intangible	$ 18,000
Estimated useful life	10 years
Crest | Software
Identifiable intangible assets
Definite-lived intangible	$ 245
Estimated useful life	5 years

ACQUISITION - Pro Forma Informa

ACQUISITION - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Pro Forma financial information
Net sales	$ 121,541	$ 94,342	$ 236,175	$ 189,507
Net income	$ 11,026	$ 8,773	$ 20,819	$ 13,398
Basic earnings per share	$ 0.59	$ 0.47	$ 1.12	$ 0.72
Diluted earnings per share	$ 0.59	$ 0.47	$ 1.11	$ 0.72

ACQUISITION - Related Party (De

ACQUISITION - Related Party (Details) $ in Thousands	Oct. 01, 2018USD ($)item	Dec. 30, 2018USD ($)
Lease Agreement
Lease term	10 years
Number of consecutive lease extensions available | item	4
Term of extension	5 years
Annual rent, first five years	$ 330
Annual rent, remaining five years	$ 425
Period of time, during option periods, after which rent will be adjusted	5 years
Parts Supplier
Lease Agreement
Product purchases		$ 942
Outstanding balance due		$ 120

INVENTORIES - Components (Detai

INVENTORIES - Components (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jun. 30, 2018
INVENTORIES
Raw materials and supplies	$ 19,404	$ 9,587
Work in process	3,276	2,822
Finished goods	6,137	9,026
Obsolescence reserve	(1,132)	(968)
Total inventories	$ 27,685	$ 20,467

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS - Components (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jun. 30, 2018
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid photo shoot	$ 1,027	$ 273
Insurance	515	974
Trade show deposits	429	111
Interest rate cap	341	525
Other	1,193	1,412
Total prepaid expenses and other current assets	$ 3,505	$ 3,295

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jul. 02, 2018	Jun. 30, 2018
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Warranty	$ 15,964		$ 13,077
Self-insurance	667		703
Compensation and related accruals	2,692		2,995
Inventory repurchase contingent obligation	2,139		1,274
Floor plan interest	3,376		1,228
Debt interest	1,714		244
Dealer incentives	9,842		4,628
Other	3,097		3,717
Total accrued expenses and other current liabilities	$ 39,491	$ 31,895	$ 27,866

ACCRUED EXPENSES AND OTHER CU_4

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Warranty Liability (Details) $ in Thousands	6 Months Ended
	Dec. 30, 2018USD ($)
Roll forward of the accrued warranty liability
Beginning balance	$ 13,077
Provisions	3,621
Additions for Crest acquisition	681
Payments made	(3,657)
Adjustments to preexisting warranties	2,242
Ending balance	$ 15,964

ACCRUED EXPENSES AND OTHER CU_5

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Correction of Errors to Accrued Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017	Jul. 02, 2018	Jun. 30, 2018
Out-of-period adjustments
Revenue	$ 121,541	$ 78,435	$ 215,182	$ 143,484
Accrued expenses and other current liabilities	$ 39,491		39,491		$ 31,895	$ 27,866
Product warranty term	5 years
Correction of Error in Accrued Warranty Calculation, Net
Out-of-period adjustments
Revenue	$ (225)
Accrued expenses and other current liabilities	225		225
Correction of Error in Accrued Warranty Calculation, Inaccurate Data on Cost of Parts
Out-of-period adjustments
Revenue	1,125
Accrued expenses and other current liabilities	(1,125)		(1,125)
Correction of Error in Accrued Warranty Calculation, Assumptions Used In Change in Warranty Period
Out-of-period adjustments
Revenue	(1,350)
Accrued expenses and other current liabilities	$ 1,350		$ 1,350

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) $ in Thousands	6 Months Ended
	Dec. 30, 2018USD ($)
Goodwill
Goodwill, beginning balance	$ 65,792
Addition related to the acquisition of Crest	35,597
Goodwill, ending balance	101,389
MasterCraft
Goodwill
Goodwill, beginning balance	29,593
Goodwill, ending balance	29,593
NauticStar
Goodwill
Goodwill, beginning balance	36,199
Goodwill, ending balance	$ 36,199

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jun. 30, 2018
Amortizable intangible assets
Gross Carrying Amount	$ 39,745	$ 21,590
Accumulated Amortization	(3,972)	(2,544)
Total	35,773	19,046
Indefinite-lived intangible assets
Trade names	49,000	32,000
Total intangible assets
Gross Carrying Amount	88,745	53,590
Net Carrying Amount	84,773	51,046
Dealer network
Amortizable intangible assets
Gross Carrying Amount	39,500	21,590
Accumulated Amortization	(3,959)	(2,544)
Total	35,541	$ 19,046
Software
Amortizable intangible assets
Gross Carrying Amount	245
Accumulated Amortization	(13)
Total	$ 232

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017	Jun. 30, 2018
Finite-lived intangible assets
Amortization of intangible assets	$ 987	$ 525	$ 1,517	$ 552
Estimated amortization expense
Remainder of 2019	2,440		2,440
2,020	3,956		3,956
2,021	3,956		3,956
2,022	3,956		3,956
2,023	3,956		3,956
and thereafter	17,510		17,510
Total	$ 35,773		$ 35,773		$ 19,046

FAIR VALUE MEASUREMENTS - Asset

FAIR VALUE MEASUREMENTS - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jun. 30, 2018	Nov. 26, 2017
Assets and liabilities measured at fair value
Asset	$ 341	$ 525
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	$ 341	$ 525

LONG-TERM DEBT - Components (De

LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jun. 30, 2018
Long-term debt
Long-term debt, net of unamortized debt issuance costs	$ 146,165	$ 75,156
Less current portion of long-term debt	11,100	5,475
Long-term debt - less current portion	135,520	70,087
Senior Secured Term Loans
Long-term debt
Long-term debt	148,000	76,656
Debt issuance costs on term loan	(1,835)	(1,500)
Less current portion of debt issuance costs on term loan	$ (455)	$ (406)

LONG-TERM DEBT - Senior Secured

LONG-TERM DEBT - Senior Secured Credit Facility (Details) - USD ($) $ in Thousands	Oct. 01, 2018	Dec. 30, 2018	Jun. 30, 2018
Long-term debt
Unamortized debt issuance costs		$ 508	$ 383
Senior Secured Term Loans
Long-term debt
Unamortized debt issuance costs		1,835	1,499
Revolving Credit Facility
Long-term debt
Outstanding borrowings		0
Net availability under facility		35,000	30,000
Unamortized debt issuance costs		508	$ 383
Fourth Amended Credit Agreement
Long-term debt
Maximum borrowing capacity	$ 190,000
Fourth Amended Credit Agreement | Senior Secured Term Loans
Long-term debt
Voluntary payments		$ 7,000
Fourth Amended Credit Agreement | Term Loan One
Long-term debt
Loan commitment	75,000
Fourth Amended Credit Agreement | Term Loan Two
Long-term debt
Loan commitment	80,000
Fourth Amended Credit Agreement | Revolving Credit Facility
Long-term debt
Maximum borrowing capacity	$ 35,000
Fourth Amended Credit Agreement | Prime Rate
Long-term debt
Effective interest rate		1.00%
Fourth Amended Credit Agreement | Prime Rate | Minimum
Long-term debt
Variable margin rate	0.50%
Fourth Amended Credit Agreement | Prime Rate | Maximum
Long-term debt
Variable margin rate	1.50%
Fourth Amended Credit Agreement | LIBOR
Long-term debt
Effective interest rate		2.00%
Fourth Amended Credit Agreement | LIBOR | Minimum
Long-term debt
Variable margin rate	1.50%
Fourth Amended Credit Agreement | LIBOR | Maximum
Long-term debt
Variable margin rate	2.50%

INCOME TAXES (Details)

INCOME TAXES (Details)	6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017
INCOME TAXES
Effective tax rate	20.20%	25.50%
Statutory income tax rate	21.00%

EARNINGS PER SHARE - Factors (D

EARNINGS PER SHARE - Factors (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Factors used in the earnings per share computation
Net income	$ 10,188	$ 8,009	$ 18,652	$ 15,055
Weighted average common shares - basic	18,653,111	18,619,834	18,649,575	18,617,467
Weighted average outstanding shares - diluted	18,772,322	18,702,352	18,770,543	18,694,489
Basic earnings per share (in dollars per share)	$ 0.55	$ 0.43	$ 1	$ 0.81
Diluted earnings per share (in dollars per share)	$ 0.54	$ 0.43	$ 0.99	$ 0.81
Stock options
Factors used in the earnings per share computation
Dilutive effect of assumed exercises of stock options and restricted share awards\units	50,261	34,994	51,307	32,969
Restricted stock awards
Factors used in the earnings per share computation
Dilutive effect of assumed exercises of stock options and restricted share awards\units	68,950	47,524	69,661	44,054

EARNINGS PER SHARE - Anti-dilut

EARNINGS PER SHARE - Anti-dilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Restricted stock awards
Other disclosures
Anti-dilutive securities excluded from computation of earning per share	1,559	1,559	1,559	1,559
Performance stock units
Other disclosures
Anti-dilutive securities excluded from computation of earning per share	2,925	2,925	2,925	2,925

STOCK-BASED COMPENSATION - RSAs

STOCK-BASED COMPENSATION - RSAs and PSUs (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended				6 Months Ended
	Nov. 25, 2018	Oct. 28, 2018	Aug. 26, 2018	Jul. 29, 2018	Dec. 30, 2018	Dec. 31, 2017
Stock-Based Compensation
Stock-based compensation					$ 788	$ 528
Certain employees | Restricted stock awards | 2015 Plan
Stock-Based Compensation
Granted	1,072	1,559	262	31,207
Grant date market price	$ 27.66	$ 36.10	$ 25.27	$ 26.59
Vesting period (in years)		3 years	3 years	3 years
Certain employees | Performance stock units | 2015 Plan
Stock-Based Compensation
Granted		1,559	33,082
Grant date market price		$ 31.60	$ 31.60
Vesting period (in years)					3 years
Non-employee directors | Restricted stock awards | 2015 Plan
Stock-Based Compensation
Granted		1,801		12,414
Grant date market price		$ 33.22		$ 26.59

SEGMENT INFORMATION - Operating

SEGMENT INFORMATION - Operating Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 30, 2018USD ($)segment	Dec. 31, 2017USD ($)	Jun. 30, 2018USD ($)
Segment reporting information
Number of operating segments | segment			3
Number of reportable segments | segment			3
Net Sales	$ 121,541	$ 78,435	$ 215,182	$ 143,484
Cost of sales	94,467	58,501	164,905	105,387
Operating income	14,722	10,782	26,333	21,846
Depreciation and amortization	1,923	1,478	3,359	2,210
Assets	271,597		271,597		$ 176,924
Goodwill	101,389		101,389		65,792
MasterCraft
Segment reporting information
Net Sales	76,397	58,239	152,631	123,288
Cost of sales	56,852	41,856	111,875	88,742
Operating income	11,414	9,113	22,944	20,177
Depreciation and amortization	732	876	1,537	1,608
Goodwill	29,593		29,593		29,593
NauticStar
Segment reporting information
Net Sales	19,196	20,196	36,603	20,196
Cost of sales	16,187	16,645	31,602	16,645
Operating income	1,072	1,669	1,153	1,669
Depreciation and amortization	654	$ 602	1,285	$ 602
Goodwill	36,199		36,199		36,199
Crest
Segment reporting information
Net Sales	25,948		25,948
Cost of sales	21,428		21,428
Operating income	2,235		2,235
Depreciation and amortization	537		537
Goodwill	35,597		35,597
Operating Segments | MasterCraft
Segment reporting information
Assets	263,715		263,715		170,218
Operating Segments | NauticStar
Segment reporting information
Assets	83,168		83,168		87,866
Operating Segments | Crest
Segment reporting information
Assets	87,727		87,727
Eliminations
Segment reporting information
Assets	$ (163,013)		$ (163,013)		$ (81,160)