Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Sep. 10, 2019 | Dec. 31, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Mastercraft Boat Holdings, Inc. | ||
Entity Central Index Key | 0001638290 | ||
Trading Symbol | MCFT | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 350,210,000 | ||
Entity Common Stock, Shares Outstanding | 18,782,558 | ||
Entity Shell Company | false | ||
Entity Incorporation, State or Country Name | Delaware | ||
Entity File Number | 001-37502 | ||
Entity Tax Identification Number | 061571747 | ||
Entity Address, Address Line One | 100 Cherokee Cove Drive | ||
Entity Address, City or Town | Vonore | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37885 | ||
City Area Code | 423 | ||
Local Phone Number | 884-2221 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5,826 | $ 7,909 |
Accounts receivable — net of allowances of $281 and $51, respectively | 12,463 | 5,515 |
Income tax receivable | 951 | |
Inventories — net (Note 6) | 30,660 | 20,467 |
Prepaid expenses and other current assets | 4,464 | 3,295 |
Total current assets | 54,364 | 37,186 |
Property, plant and equipment — net (Note 7) | 33,636 | 22,265 |
Goodwill (Note 8) | 74,030 | 65,792 |
Other intangible assets — net (Note 8) | 79,799 | 51,046 |
Deferred income taxes (Note 12) | 6,240 | |
Deferred debt issuance costs — net | 451 | 383 |
Other long-term assets | 253 | 252 |
Total assets | 248,773 | 176,924 |
CURRENT LIABILITIES: | ||
Accounts payable | 17,974 | 17,266 |
Income tax payable | 426 | 705 |
Accrued expenses and other current liabilities (Note 9) | 41,421 | 27,866 |
Current portion of long term debt, net of unamortized debt issuance costs (Note 11) | 8,725 | 5,069 |
Total current liabilities | 68,546 | 50,906 |
Long term debt, net of unamortized debt issuance costs (Note 11) | 105,016 | 70,087 |
Deferred income taxes (Note 12) | 1,427 | |
Unrecognized tax positions (Note 12) | 2,895 | 1,982 |
Total liabilities | 176,457 | 124,402 |
COMMITMENTS AND CONTINGENCIES (Note 14) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 18,764,037 shares at June 30, 2019 and 18,682,338 shares at June 30, 2018 | 188 | 187 |
Additional paid-in capital | 115,582 | 114,052 |
Accumulated deficit | (43,454) | (61,717) |
Total stockholders' equity | 72,316 | 52,522 |
Total liabilities and stockholders' equity | $ 248,773 | $ 176,924 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 281 | $ 51 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 18,764,037 | 18,682,338 |
Common stock, outstanding shares | 18,764,037 | 18,682,338 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | |||
NET SALES | $ 466,381 | $ 332,725 | $ 228,634 |
COST OF SALES | 353,254 | 242,361 | 165,158 |
GROSS PROFIT | 113,127 | 90,364 | 63,476 |
OPERATING EXPENSES: | |||
Selling and marketing | 17,670 | 13,011 | 9,380 |
General and administrative | 27,706 | 19,773 | 20,474 |
Amortization of intangible assets | 3,492 | 1,597 | 107 |
Goodwill and other intangible asset impairment | 31,000 | ||
Total operating expenses | 79,868 | 34,381 | 29,961 |
OPERATING INCOME | 33,259 | 55,983 | 33,515 |
OTHER EXPENSE: | |||
Interest expense | 6,513 | 3,474 | 2,222 |
INCOME BEFORE INCOME TAX EXPENSE | 26,746 | 52,509 | 31,293 |
INCOME TAX EXPENSE | 5,392 | 12,856 | 11,723 |
NET INCOME | $ 21,354 | $ 39,653 | $ 19,570 |
EARNINGS PER COMMON SHARE: | |||
Basic | $ 1.14 | $ 2.13 | $ 1.05 |
Diluted | $ 1.14 | $ 2.12 | $ 1.05 |
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF: | |||
Basic earnings per share | 18,653,892 | 18,619,793 | 18,592,885 |
Diluted earnings per share | 18,768,207 | 18,714,531 | 18,620,708 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance, beginning at Jun. 30, 2016 | $ (8,379) | $ 186 | $ 112,375 | $ (120,940) |
Balance, beginning (in shares) at Jun. 30, 2016 | 18,591,808 | |||
Increase (decrease) in stockholders' equity | ||||
Share-based compensation activity | 1,019 | 1,019 | ||
Share-based compensation activity (shares) | 45,637 | |||
Offering costs | (449) | (449) | ||
Net income | 19,570 | 19,570 | ||
Balance, ending at Jun. 30, 2017 | 11,761 | $ 186 | 112,945 | (101,370) |
Balance, ending (in shares) at Jun. 30, 2017 | 18,637,445 | |||
Increase (decrease) in stockholders' equity | ||||
Share-based compensation activity | 1,108 | $ 1 | 1,107 | |
Share-based compensation activity (shares) | 44,893 | |||
Net income | 39,653 | 39,653 | ||
Balance, ending at Jun. 30, 2018 | 52,522 | $ 187 | 114,052 | (61,717) |
Balance, ending (in shares) at Jun. 30, 2018 | 18,682,338 | |||
Increase (decrease) in stockholders' equity | ||||
Adoption of accounting standards (Note 3) | ASU 14-09 | (3,091) | (3,091) | ||
Share-based compensation activity | 1,531 | $ 1 | 1,530 | |
Share-based compensation activity (shares) | 81,699 | |||
Net income | 21,354 | 21,354 | ||
Balance, ending at Jun. 30, 2019 | $ 72,316 | $ 188 | $ 115,582 | $ (43,454) |
Balance, ending (in shares) at Jun. 30, 2019 | 18,764,037 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 21,354,000 | $ 39,653,000 | $ 19,570,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,787,000 | 5,086,000 | 3,231,000 |
Inventory obsolescence reserve | 109,000 | 281,000 | 399,000 |
Amortization of deferred debt issuance costs | 553,000 | 496,000 | 361,000 |
Share-based compensation | 1,678,000 | 1,186,000 | 711,000 |
Change in interest rate cap fair value | 474,000 | (435,000) | |
Unrecognized tax benefits | 913,000 | (1,199,000) | 743,000 |
Deferred income taxes | (6,734,000) | 557,000 | 4,454,000 |
Net provision of doubtful accounts | 102,000 | (31,000) | 17,000 |
Loss on disposal of fixed assets | 10,000 | 10,000 | |
Goodwill and other intangible asset impairment | 31,000,000 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,835,000) | (211,000) | (551,000) |
Inventories | (449,000) | (2,754,000) | 1,193,000 |
Prepaid expenses and other current assets | (1,464,000) | (763,000) | (658,000) |
Income tax receivable | (951,000) | 5,000 | |
Other assets | 4,000 | 39,000 | 45,000 |
Accounts payable | (2,995,000) | 2,847,000 | (2,104,000) |
Income tax payable | (279,000) | (75,000) | (328,000) |
Accrued expenses and other current liabilities | 6,609,000 | 4,720,000 | (866,000) |
Net cash provided by operating activities | 55,886,000 | 49,397,000 | 26,232,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Disposal of assets | 7,000 | 96,000 | |
Payment for acquisition, net of cash acquired | (81,729,000) | (80,511,000) | |
Purchases of property and equipment | (14,064,000) | (5,305,000) | (4,135,000) |
Net cash used in investing activities | (95,786,000) | (85,720,000) | (4,135,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of long-term debt | 80,000,000 | 80,832,000 | |
Payments of costs directly associated with offerings | (449,000) | ||
Cash paid for withholding taxes on vested stock | (148,000) | (78,000) | (4,000) |
Excess tax benefits | 312,000 | ||
Principal payments on long-term debt | (41,306,000) | (39,320,000) | (14,865,000) |
Payments on revolving line of credit | (3,126,000) | ||
Payments of deferred debt issuance costs | (729,000) | (1,240,000) | 0 |
Net cash provided by (used in) financing activities | 37,817,000 | 40,194,000 | (18,132,000) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (2,083,000) | 3,871,000 | 3,965,000 |
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD | 7,909,000 | 4,038,000 | 73,000 |
CASH AND CASH EQUIVALENTS — END OF PERIOD | 5,826,000 | 7,909,000 | 4,038,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash payments for interest | 5,526,000 | 2,976,000 | 2,006,000 |
Cash payments for income taxes | 12,437,000 | 13,549,000 | $ 6,541,000 |
SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Capital expenditures in accounts payable and accrued expenses | $ 908,000 | $ 733,000 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 12 Months Ended |
Jun. 30, 2019 | |
Organization And Nature Of Business [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | 1. ORGANIZATION AND NATURE OF BUSINESS MasterCraft Boat Holdings, Inc. (“Holdings”) was formed on January 28, 2000, as a Delaware holding company and operates primarily through its wholly owned subsidiaries, MasterCraft Boat Company, LLC; MasterCraft Services, LLC; MasterCraft Parts, Ltd.; and MasterCraft International Sales Administration, Inc. (collectively “MasterCraft”); Nautic Star, LLC and NS Transport, LLC (collectively “NauticStar”); and Crest Marine, LLC (“Crest”). Holdings 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 NauticStar, a Mississippi limited liability company and its subsidiaries. On October 1, 2018, the Company acquired all of the outstanding membership interest of Crest, a Michigan limited liability company. As a result of the acquisitions, the Company consolidated the financial results of NauticStar and Crest beginning on the respective dates acquired. The Company is a leading innovator, designer, manufacturer and marketer of recreational powerboats that operates in three reportable segments: MasterCraft, NauticStar and Crest. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Jun. 30, 2019 | |
Basis Of Presentation [Abstract] | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Holdings has no independent operations and no material assets, other than its wholly owned equity interests of MasterCraft, NauticStar, and Crest, which totaled $163,013 and $81,160 as of June 30, 2019 and 2018, respectively, and no material liabilities. As of June 30, 2019, Holdings had no material contingencies, long-term obligations, or guarantees other than a guarantee of the Company’s long-term debt (see Note 11). Immaterial Correction of Error — During the fourth quarter of fiscal 2018, the Company recorded an out of period adjustment that effected the Consolidated Statement of Operations for the year ended June 30, 2018. The adjustment related to improperly projecting warranty claims based on part sales rather than part costs. The impact of this adjustment resulted in an increase in net income of $1,033 for the fiscal year ended June 30, 2018, with a corresponding decrease in accrued expenses and other current liabilities on the consolidated balance sheet as of June 30, 2018. During the second quarter of fiscal 2019, the Company identified two 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 these adjustments on the Company’s financial statements under the provision of ASC 250: Accounting Changes and Error Corrections Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements Use of Estimates — The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and related disclosures. The Company bases these estimates on historical results and various other assumptions believed to be reasonable. The Company’s most significant financial statement estimates include allowances for bad debts, warranty liability, dealer incentives liability, self-insurance liability, fair value of share-based compensation, inventory repurchase contingent obligation, unrecognized tax positions, impairment of long-lived assets and intangible assets subject to amortization, impairment of goodwill and indefinite-lived intangibles, and potential litigation claims and settlements. Actual results could differ from those estimates. Revenue Recognition — The Company’s revenue is derived primarily from the sale of boats, marine parts, and accessories. 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 Company offers discounts and sales incentives that include retail promotions, rebates, and floor plan reimbursement costs that are recorded as reductions of revenues in Net sales in the consolidated statements of operations. The consideration recognized represents the amount specified in a contract with a customer, net of estimated 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 because actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if dealer achievement or other items vary from historical trends. Dealer Incentives Dealer incentives include seasonal discounts, volume commitment rebates and other allowances. Dealer rebate and sales promotion incentives recorded during the years ended June 30, 2019, 2018, and 2017, were $11,598, $6,361, and $5,660, respectively. Rebates that apply to boats already in dealer inventory are referred to as retail rebates. Retail rebates recorded during the years ended June 30, 2019, 2018, and 2017, were $4,220, $1,932, and $5,484, respectively. Accrued rebates are included in Accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Dealers generally have no rights to return unsold boats. Occasionally, the Company may accept returns in limited circumstances and at the Company’s discretion under its warranty policy (Note 9). The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase commitment to floor financing providers, who are able to obtain such boats through foreclosure. The Company accrues the estimated fair value of this obligation based on the age of inventory currently under floor plan financing and estimated credit quality of dealers holding the inventory. Floor Plan Reimbursement Costs The Company participates in various programs whereby it agrees to reimburse its dealers for certain floor plan interest costs incurred by such dealers for limited periods of time, generally ranging up to nine months. Such costs are included as a reduction in net sales in the consolidated statements of operations and totaled $7,452, $5,143, and $3,705 for the years ended June 30, 2019, 2018, and 2017, respectively. Shipping and Handling Costs Shipping and handling costs includes those costs incurred to transport product to customers and internal handling costs, which relate to activities to prepare goods for shipment . The Company has elected to account for shipping and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost. Contract Liabilities 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. Other Revenue Recognition Matters The Company has excluded sales and other taxes assessed by a governmental authority in connection with revenue-producing activities from the determination of the transaction price for all contracts. The Company has not adjusted Net sales for the effects of a significant financing component because the period between the transfer of the promised goods and the customer's payment is expected to be one year or less. Accounts Receivable — Accounts receivable represents amounts billed to customers under credit terms customary in its industry. The Company normally does not charge interest on its accounts receivable. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to bad debt recovery. Cash and Cash Equivalents — The Company considers all highly-liquid investments with an original maturity of three months or less to be cash and cash equivalents. The Company’s cash deposits may at times exceed federally insured amounts. The Company had no cash equivalents at June 30, 2019 and 2018. Concentrations of Credit and Business Risk — Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of trade receivables. Credit risk on trade receivables is mitigated as a result of the Company’s use of trade letters of credit, dealer floor plan financing arrangements, and the geographically diversified nature of the Company’s customer base. Supplier Concentrations The Company is dependent on the ability of its suppliers to provide products on a timely basis and on favorable pricing terms. The loss of certain principal suppliers or a significant reduction in product availability from principal suppliers could have a material adverse effect on the Company. Business risk insurance is in place to mitigate the business risk associated with sole suppliers for sudden disruptions such as those caused by natural disasters. The Company is dependent on third-party equipment manufacturers, distributors, and dealers for certain parts and materials utilized in the manufacturing process. In 2019, 2018, and 2017 the Company purchased all engines for its MasterCraft performance sport boats under a supply agreement with a single vendor. Total purchases to this vendor were $39,252, $34,734 and $31,075 for 2019, 2018, and 2017, respectively. In 2019 and 2018, the Company purchased a majority of engines for its NauticStar boats under a supply agreement with one vendor. Total purchases from this vendor were $23,718 and $19,668 for 2019 and 2018, respectively. In 2019, the Company purchased a majority of the engines for its Crest boats under a supply agreement with a single vendor. Total purchases from this vendor were $20,382 for 2019. Inventories — Inventories are valued at the lower of cost or net realizable value and are shown net of an inventory allowance in the balance sheet. Inventory cost includes material, labor, and manufacturing overhead and is determined based on the first-in, first-out (FIFO) method. Provisions are made as necessary to reduce inventory amounts to their net realizable value or to provide for obsolete inventory. Property, Plant, and Equipment — Property, plant, and equipment are recorded at historical cost less accumulated depreciation and are depreciated on a straight-line basis over the estimated useful lives. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that increase the asset’s useful life are capitalized. Ranges of asset lives used for depreciation purposes are: Buildings and improvements 7 - 40 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years Goodwill and Other Intangible Assets — The Company does not amortize goodwill and other purchased intangible assets with indefinite lives. All of the Company’s goodwill and intangible assets relate to either our MasterCraft, NauticStar, or Crest reporting units (see Note 16). The Company’s intangible assets with finite lives consist primarily of dealer networks and are carried at their estimated fair values at the time of acquisition, less accumulated amortization. Amortization is recognized on a straight-line basis over the estimated useful lives of the respective assets (see Note 8). Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. Goodwill Goodwill results from the excess of purchase price over the net identifiable assets of businesses acquired. All three of the Company's reporting units, which are also the Company's reportable segments, have a goodwill balance. The Company reviews goodwill for impairment annually, at fiscal yearend, and whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. As part of the annual test, the Company may perform a qualitative, rather than quantitative, assessment to determine whether the fair values of its reporting units are “more likely than not” to be greater than their carrying values. In performing this qualitative analysis, the Company considers various factors, including the effect of market or industry changes and the reporting units' actual results compared to projected results. If the fair value of a reporting unit does not meet the "more likely than not" criteria discussed above, the impairment test for goodwill is a quantitative test. This test involves comparing the fair value of the reporting unit with its carrying value. If the fair value exceeds the carrying value, goodwill is not considered impaired. If the carrying amount exceeds the fair value then the goodwill is considered impaired and an impairment loss is recognized in an amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit. The Company calculates the fair value of its reporting units by considering both the income approach and market approach. The income approach calculates the fair value of the reporting unit using a discounted cash flow method. Internally forecasted future cash flows, which the Company believes reasonably approximate market participant assumptions, are discounted using a weighted average cost of capital (“Discount Rate”) developed for each reporting unit. The Discount Rate is developed using observable market inputs, as well as considering whether or not there is a measure of risk related to the specific reporting unit’s forecasted performance. Fair value under the market approach is determined for each unit by applying market multiples for comparable public companies to the unit’s financial results. The key uncertainties in these calculations are the assumptions used in determining the reporting unit’s forecasted future performance, including revenue growth and operating margins, as well as the perceived risk associated with those forecasts in determining the Discount Rate, along with selecting representative market multiples. For the year ended June 30, 2019, the Company performed a quantitative test for all three reporting units and determined that the goodwill allocated to the NauticStar reporting unit was impaired. The Company recognized an associated goodwill impairment charge of $28,000 in its statement of operations for the year ended June 30, 2019 (see Note 8). The Company recognized no goodwill impairment for the years ended June 30, 2018 and 2017. Other Intangible Assets The Company's primary intangible assets are dealer networks and trade names acquired in business combinations. Intangible assets are initially valued using a methodology commensurate with the intended use of the asset. The dealer networks were valued using an income approach, which requires an estimate or forecast of the expected future cash flows from the dealer network through the application of the multi-period excess earnings approach. The fair value of trade names is measured using a relief-from-royalty approach, a variation of the income approach, which requires an estimate or forecast of the expected future cash flows. This method assumes the value of the trade name is the discounted cash flows of the amount that would be paid to third parties had the Company not owned the trade name and instead licensed the trade name from another company. The basis for future sales projections for these methods are based on internal revenue forecasts by reporting unit, which the Company believes represent reasonable market participant assumptions. The future cash flows are discounted using an applicable Discount Rate as well as any potential risk premium to reflect the inherent risk of holding a standalone intangible asset. The key uncertainties in these fair value calculations, as applicable, are: assumptions used in developing internal revenue growth and customer expense forecasts, assumed customer attrition rates, the selection of an appropriate royalty rate, as well as the perceived risk associated with those forecasts in determining the Discount Rate. The costs of amortizable intangible assets, including dealer networks, are recognized over their expected useful lives, approximately ten years for the dealer networks, using the straight-line method. Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. Intangible assets not subject to amortization are assessed for impairment at least annually and whenever events or changes in circumstances indicate that it is more likely than not that an asset may be impaired. The impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized for the amount by which the carrying value exceeds the fair value of the asset. For the year ended June 30, 2019, the Company recognized a $3,000 impairment charge related to the NauticStar trade name (see Note 8). The Company recognized no impairments related to other intangible assets for the years ended June 30, 2018 and 2017. Long-Lived Assets Other than Intangible Assets — The Company assesses the potential for impairment of its long-lived assets if facts and circumstances, such as declines in sales, earnings, or cash flows or adverse changes in the business climate, suggest that they may be impaired. The Company performs its review by comparing the book value of the assets to the estimated future undiscounted cash flows associated with the assets. If any impairment in the carrying value of its long-lived assets is indicated, the assets would be adjusted to an estimate of fair value. Income Taxes — Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. The Company records its global tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Significant judgment is required in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. The realization of these assets is dependent on generating future taxable income. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. In determining the amount of current and deferred tax the Company takes into account the impact of uncertain tax positions and whether additional taxes, interest and penalties may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Company to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will have an impact on tax expense in the period that such a determination is made. The income tax effects of the differences we identify are classified as long-term deferred tax assets and liabilities in our consolidated balance sheets. Product Warranties — The Company offers warranties on the sale of certain products for periods of between one and five years. These warranties require us or our dealers to repair or replace defective products during the warranty period at no cost to the consumer. We estimate the costs that may be incurred under our basic limited warranty and record as a liability the amount of such costs at the time the product revenue is recognized. Factors that affect our warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. We periodically assess the adequacy of the recorded warranty liabilities and adjust the amounts as actual claims are determined or as changes in the obligations become reasonably estimable. Research and Development — Research and development expenditures are expensed as incurred. Research and development expense for the years ended June 30, 2019, 2018, and 2017 was $5,566, $4,933, and $3,550, respectively, and is included in operating expenses in the consolidated statements of operations. Self-Insurance — The Company is self-insured for certain losses relating to product liability claims and employee medical claims. The Company has purchased stop-loss coverage in order to limit its exposure to any significant levels under these plans. Losses are accrued based on the Company’s estimates of the aggregate liability for self-insured claims incurred using certain actuarial assumptions followed in the insurance industry and the Company’s historical experience. Deferred Debt Issuance Costs — Certain costs incurred to obtain financing are capitalized and amortized over the term of the related debt using the effective interest method. For the years ended June 30, 2019 and 2018 the Company incurred deferred financing costs of $729 and $1,240, respectively. For the year ended June 30, 2017 the Company did not incur any deferred financing costs. For the years ended June 30, 2019, 2018, and 2017 the Company recorded amortization of $553, $496, and $361, respectively. Share-Based Compensation — The Company records amounts for all share-based compensation, including grants of restricted stock awards, performance stock units, and nonqualified stock options over the vesting period in the consolidated statements of operations based on their fair values at the date of the grant. Forfeitures of share-based compensation, if any, are recognized as they occur. Share-based compensation costs are included in Selling, general and administrative expense in the consolidated statements of Operations. See Note 13 – Share-Based Compensation for a description of the Company's accounting for share-based compensation plans. Advertising — Advertising costs are expensed as incurred. Advertising expense recognized during the years ended June 30, 2019, 2018, and 2017, was $9,347, $6,787, and $5,201, respectively, and is included in selling and marketing expenses in the consolidated statements of operations. Fair Value Measurements — The Company measures its financial assets and liabilities and utilizes the established framework for measuring fair value and disclosing information about fair value measurements. Fair value is the price expected to be received to transfer an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Measuring fair value involves a hierarchy of valuation inputs. This hierarchy prioritizes the inputs into three levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly; and, Level 3 inputs are unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own valuation assumptions. Fair Value of Financial Instruments — The carrying amounts of the Company’s financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable and other liabilities, approximate their estimated fair values due to the relative short-term nature of the amounts. The carrying amount of debt approximates fair value due to variable interest rates at customary terms and rates the Company could obtain in current financing. Repurchase Commitments — In connection with its dealers’ wholesale floor-plan financing of boats, the Company has entered into repurchase agreements with various lending institutions. The repurchase commitment is on an individual unit basis with a term from the date it is financed by the lending institution through the payment date by the dealer, generally not exceeding 30 months. The Company accounts for these arrangements as guarantees and recognizes a liability based on the estimated fair value of the repurchase obligation. The estimated fair value takes into account our estimate of the loss we will incur upon resale of any repurchases. The Company has applied these provisions to its floor plan repurchase agreements as disclosed in Notes 9 and 14. Earnings Per Common Share — Basic earnings per common share reflects reported earnings divided by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share include the effect of dilutive stock options and restricted share awards, unless inclusion would not be dilutive. Operating Leases — The Company leases its Crest production facility and various equipment under operating lease arrangements. Lease agreements may include rent holidays, rent escalation clauses, and tenant improvement allowances. The Company recognizes scheduled rent increases on a straight-line basis over the lease term beginning with the date the Company takes possession of the leased property. Postretirement Benefits – The Company has a defined contribution plan and makes contributions including matching and discretionary contributions which are based on various percentages of compensation, and in some instances are based on the amount of the employees' contributions to the plans. The expense related to the defined contribution plans was $1,208, $826, and $640 for the years ended June 30, 2019, 2018, and 2017, respectively. Comparability between these years has been affected, primarily, by the acquisition of Crest and NauticStar during the years ended June 30, 2019 and 2018, respectively (See Note 5). Segment Information — Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision maker in making decisions on how to allocate resources and assess performance. The Company views its operations in three operating segments based on its operation and management structure: MasterCraft, NauticStar, and Crest (see Note 16). New Accounting Pronouncements Issued But Not Yet Adopted In June 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-07 , Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Compensation—Stock Compensation In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Targeted Improvements 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 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. The Company anticipates the adoption of the standard will result in the recognition of approximately $4,000 in right-of-use assets and associated lease obligations on the consolidated balance sheets and will not materially impact results on the consolidated statements of operations. New Accounting Pronouncements Issued And Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) 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 consolidated balance sheet 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 consolidated statement of operations for the year ended June 30, 2019: Balances without Statement of Operations As Reported Effect of Change adoption of ASC 606 Net sales $ 466,381 $ 42 $ 466,423 Income before income tax expense 26,746 42 26,788 Income tax expense 5,392 8 5,400 Net income 21,354 34 21,388 The following table summarizes the impact of ASU 2014-09 on the Company’s consolidated balance sheet as of June 30, 2019: Balances without Balance Sheet As Reported Effect of Change adoption of ASC 606 Accrued expenses and other current liabilities $ 41,421 $ (4,071 ) $ 37,350 Income taxes 3,870 946 4,816 Accumulated deficit (43,454 ) 3,125 (40,329 ) In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments Statement of Cash Flow In January 2017, the FASB issued ASU 2017-04 , Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE RECOGNITION | 4. REVENUE RECOGNITION The following table presents the Company’s revenue by major product categories for the year ended June 30, 2019: MasterCraft NauticStar Crest Total Major Product Categories Boats and trailers $ 301,010 $ 77,896 $ 75,742 $ 454,648 Parts 9,471 85 498 10,054 Other revenue 1,349 14 316 1,679 Total $ 311,830 $ 77,995 $ 76,556 $ 466,381 As of July 1, 2018, the Company had $2,194 of contract liabilities associated with customer deposits. During the year ended June 30, 2019, all of this amount was recognized as revenue. As of June 30, 2019, total contract liabilities were $759 and were reported in Accrued expenses and other current liabilities on the consolidated balance sheet and are expected to be recognized as revenue during the year ended June 30, 2020. See Note 3 for a description of the Company’s significant revenue recognition policies. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | 5. ACQUISITIONS Crest Acquisition On October 1, 2018, the Company completed its acquisition of Crest, a manufacturer of pontoon boats. 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. The purchase price was $81,729, including customary adjustments for working capital in the acquired business at the closing date. For accounting purposes, Crest meets the definition of a business and has been accounted for as a business combination. Beginning October 1, 2018, our consolidated statement of operations include the results of Crest. Since the date of acquisition, net sales of $76,556 and operating income of $7,055 have been included in our consolidated statement of operations. The total consideration paid has been allocated to the assets acquired and liabilities assumed based on their fair values as of the date of acquisition. Amounts recorded for goodwill and intangible assets are disclosed in Note 8. The measurements of fair value were based on estimates utilizing the assistance of third-party valuation specialists. A combination of income, market and cost approaches were used for the valuation where appropriate, depending on the asset or liability being valued. Valuation inputs in these models and analyses considered market participant assumptions. Management finalized the valuation related to the assets acquired and liabilities assumed, and the following table summarizes the purchase price allocation for the Crest acquisition: Purchase Price: Cash paid, net of cash acquired $ 81,729 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: Accounts receivable $ 5,215 Inventories 9,853 Other current assets 179 Property, plant and equipment 1,840 Identifiable intangible assets 35,245 Current liabilities (6,841 ) Fair value of assets acquired and liabilities assumed 45,491 Goodwill 36,238 $ 81,729 The following table summarizes the intangible assets acquired as part of the acquisition: Estimates of Fair Value Estimated Useful Life (in years) Definite-lived intangible assets: Dealer network $ 18,000 10 Software 245 5 Indefinite-lived intangible asset: Trade name 17,000 Total identifiable intangible assets $ 35,245 The value allocated to inventories was 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 expected collection of those receivables. The fair value of the identifiable intangible assets was 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. • Software – The value attributed to Crest’s 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 assets are being amortized using the straight-line method to recognize the expense over the estimated useful life. Indefinite-lived intangible assets are not amortized, but instead are evaluated for potential impairment on an annual basis . The value allocated to property, plant and equipment reflects the fair value of the acquired property, plant and equipment using a combination of the income, cost, and market approaches, which are primarily based on significant Level 2 and Level 3 assumptions, such as estimates of absorption period, lease-up costs, market rent, operating expenses, and terminal capitalization and discount rates. Acquisition related costs of $1,510, which were incurred by the Company during the fiscal year-ended June 30, 2019, were expensed in the period incurred, and are included in general and administrative expenses in the consolidated statement of operations. Crest Related Party Transactions 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 on the increase in the Consumer Price Index. One of the minority owners of Real Estate is a member of the Crest management team. During the year ended June 30, 2019, the Company recognized related rent expense of $248. 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 year ended June 30, 2019, the Company purchased $2,830 of products from the supplier. As of June 30, 2019, the outstanding balance due to the supplier was $146. NauticStar Acquisition On October 2, 2017, the Company completed its acquisition of NauticStar which adds to its product diversity. The purchase price was $80,511, including customary adjustments for the amount of working capital in the acquired business at the closing date. The Company accounted for the transaction using the acquisition method. 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 goodwill and intangible assets acquired 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 The 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 10 Indefinite-lived intangible: Trade name 16,000 Total identifiable intangible assets $ 36,000 The value allocated to inventories reflects the fair value of the acquired inventory based on the sales price of the inventory, less cost to complete and a reasonable profit margin. The value allocated to accounts receivable represents the fair value of the acquired receivables based on the expected collection of those receivables. The fair value of the identifiable intangible assets was 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. • 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. The weighted average useful life of identifiable definite-lived intangible assets acquired was 10 years. Goodwill of $36,199 resulting 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 such as an assembled workforce. The indefinite-lived intangible asset and goodwill acquired are expected to be deductible for income tax purposes. The value allocated to property, plant and equipment reflects the fair value of the acquired property, plant and equipment using a combination of the income, cost, and market approaches, which are primarily based on significant Level 2 and Level 3 assumptions, such as estimates of absorption period, lease-up costs, market rent, operating expenses, and terminal capitalization and discount rates. Acquisition related costs of $1,486, which were incurred by the Company during the fiscal year ended June 30, 2018, were expensed during the period, 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 fiscal year ended June 30, 2019, June 30, 2018 and June 30, 2017, assumes that the acquisition of NauticStar occurred as of July 1, 2017, and the acquisition of Crest occurred as of July 1, 2018. The unaudited pro forma financial information combines historical results of MasterCraft, NauticStar, and Crest 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 acquisitions had taken place at the beginning of fiscal years 2018 and 2017, or the results that may occur in the future: Fiscal Years Ended 2019 2018 2017 Net sales $ 487,374 $ 423,630 $ 305,705 Net income $ 21,619 $ 38,269 $ 20,919 Basic earnings per common share $ 1.16 $ 2.06 $ 1.13 Diluted earnings per common share $ 1.15 $ 2.04 $ 1.12 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 6. INVENTORIES Inventories at June 30, 2019 and 2018 consisted of the following: 2019 2018 Raw materials and supplies $ 20,034 $ 9,587 Work in process 4,571 2,822 Finished goods 7,207 9,026 Obsolescence reserve (1,152 ) (968 ) Total inventories $ 30,660 $ 20,467 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | 7. PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment — net at June 30, 2019 and 2018, consisted of the following: 2019 2018 Land and improvements $ 1,901 $ 1,725 Buildings and improvements 15,652 11,960 Machinery and equipment 29,804 22,570 Furniture and fixtures 1,719 943 Construction in progress 4,866 3,564 Total property, plant, and equipment 53,942 40,762 Less accumulated depreciation (20,306 ) (18,497 ) Property, plant, and equipment — net $ 33,636 $ 22,265 Depreciation expense for the years ended June 30, 2019, 2018, and 2017 was $4,295, $3,489, and $3,124, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 8. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table summarizes changes in the carrying amount of goodwill for the fiscal years ended June 30, 2019 and 2018. MasterCraft NauticStar Crest Total Balance as of June 30, 2017 $ 29,593 $ — $ — $ 29,593 Goodwill acquired — 36,199 — 36,199 Balance as of June 30, 2018 29,593 36,199 — 65,792 Goodwill acquired — — 36,238 36,238 Impairment charges — (28,000 ) — (28,000 ) Balance as of June 30, 2019 $ 29,593 $ 8,199 $ 36,238 $ 74,030 Goodwill acquired during the years ended June 30, 2019 and 2018 are related to the acquisitions as described in Note 5 and are derived from the value of the businesses acquired. The acquisitions represented operating segments added to our reporting structure and the related goodwill was assigned accordingly. For the purpose of goodwill impairment testing, the operating segments (MasterCraft, NauticStar and Crest) are considered reporting units and are tested on a stand-alone basis. We performed our annual goodwill analysis as of June 30, 2019 and elected to early adopt ASU 2017-14 (See Note 3). The goodwill impairment analysis required significant judgements to calculate the fair value for each reporting unit, including estimation of future cash flows, which is dependent on internal forecasts, estimation of long-term growth rate for each reporting unit, and determination of the weighted average cost of capital. A number of significant assumptions and estimates are involved in the application of the discounted cash flow model to forecast operating cash flows, including market growth and market share, sales volumes and prices, costs to produce, discount rate, and estimated capital needs. Management considers historical experience and all available information at the time that the fair values of its reporting units are estimated. Assumptions in estimating future cash flows are subject to a high degree of judgment and complexity. Changes in assumptions and estimates may affect the fair value of goodwill and could result in impairment charges in future periods. As a result of our analysis, we recorded a goodwill impairment charge of $28,000 related to the NauticStar reporting unit. The impairment was principally a result of a decline, in the fiscal fourth quarter, in the outlook for sales and operating performance relative to our acquisition plan. This charge is included in Goodwill and other intangible asset impairment on the June 30, 2019 consolidated statement of operations. No goodwill impairment charges were recorded for the MasterCraft or Crest reporting units. It is possible that t NauticStar goodwill as of June 30, 2019 was $8,199. If our assessment of the relevant facts and circumstances change, or if the actual performance falls short of expected results, future impairment charges may be required. An impairment of goodwill may also lead us to record an impairment of other intangible assets. We completed our annual goodwill impairment review during the fiscal fourth quarters of 2018 and 2017 and concluded that there were no indicators of goodwill impairment during those periods. Other Intangible Assets We have identified intangible assets with definite and indefinite lives primarily representing dealer networks, software and trade names. In fiscal 2019 and 2018, the acquisition of Crest added $35,245 and the acquisition of NauticStar added $36,000 of intangible assets respectively. The intangible assets acquired primarily represent trade names and dealer networks with a weighted average estimated useful life of the acquired assets of 10 years. Refer to Note 5 for further discussion regarding the 2019 and 2018 acquisitions. The following table presents changes in the carrying amount of other intangible assets, net. MasterCraft NauticStar Crest Total Balance as of June 30, 2017 $ 16,643 $ — $ — $ 16,643 Amortization (107 ) (1,490 ) — (1,597 ) Intangible assets acquired — 36,000 — 36,000 Balance as of June 30, 2018 $ 16,536 $ 34,510 $ — $ 51,046 Amortization (107 ) (1,998 ) (1,387 ) (3,492 ) Intangible assets acquired — — 35,245 35,245 Impairment charges — (3,000 ) — (3,000 ) Total other intangible assets $ 16,429 $ 29,512 $ 33,858 $ 79,799 The following table presents the cost and accumulated amortization of our other intangible assets as of June 30, 2019 and 2018. June 30, 2019 Estimated Gross Useful Carrying Accumulated Net Carrying Life in Years Amount Amortization Impairment Value Dealer network 10 -14 $ 39,500 $ (5,909 ) $ — $ 33,591 Software 5 245 (37 ) — 208 Trade names Indefinite 49,000 — (3,000 ) 46,000 Total identified other intangible assets $ 88,745 $ (5,946 ) $ (3,000 ) $ 79,799 June 30, 2018 Estimated Gross Useful Carrying Accumulated Net Carrying Life in Years Amount Amortization Impairment Value Dealer network 10 -14 $ 21,500 $ (2,454 ) $ — $ 19,046 Trade names Indefinite 32,000 — — 32,000 Total identified other intangible assets $ 53,500 $ (2,454 ) $ — $ 51,046 Intangible assets that become fully amortized are removed from the accounts and are no longer represented in the gross carrying value or accumulated amortization. The trade names have been determined to have indefinite lives and are not being amortized, based on management’s expectation that trade names will generate cash flows for an indefinite period. Management expects to maintain usage of the trade names on existing products and introduce new products in the future under the trade names, thus extending their lives indefinitely. During our annual assessment of indefinite-lived intangibles, trade names, the Company recorded an impairment charge on trade names of $3,000 related to the NauticStar reporting unit. The impairment was principally a result of a decline, in the fiscal fourth quarter, in the outlook for sales and operating performance relative to our acquisition plan. This charge was included in Goodwill and other intangible asset impairment on the consolidated statement of operations. No other intangible asset impairment loss was recorded for the MasterCraft or Crest reporting units. Amortization expense for the fiscal years ended June 30, 2019, 2018, and 2017, was $3,492, $1,597 and $107, respectively. Estimated amortization expense for the five years subsequent to June 30, 2019, is presented in the following table: Fiscal years ending June 30, 2020 $ 3,956 2021 3,956 2022 3,956 2023 3,956 2024 3,815 and thereafter 14,160 Total $ 33,799 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities at June 30, 2019 and 2018, consisted of the following: 2019 2018 Warranty $ 17,205 $ 13,077 Dealer incentives 12,623 4,628 Compensation and related accruals 3,494 2,997 Floor plan interest 2,060 1,228 Inventory repurchase contingent obligation 1,936 1,265 Self-insurance 606 703 Debt interest 405 244 Other 3,092 3,724 Total accrued expenses and other current liabilities $ 41,421 $ 27,866 The following table summarizes the activity in the accrued warranty liability for the years ended June 30, 2019 and 2018: 2019 2018 Beginning balance $ 13,077 $ 12,237 Additions for business acquisitions 990 945 Provisions 8,056 6,523 Payments made (7,198 ) (4,427 ) Adjustments to preexisting warranties 2,280 (2,201 ) Ending balance $ 17,205 $ 13,077 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 10. FAIR VALUE MEASUREMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the inputs that market participants would use in pricing an asset or liability. When 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. Fair Value Measurements on a Recurring Basis The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and 2018: 2019 Fair Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset — interest rate cap $ — $ 50 $ — 2018 Fair Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset — interest rate cap $ — $ 525 $ — Interest Rate Cap In November 2017, the Company entered into an interest rate cap agreement (“Interest Rate Cap”) with a certain financial institution. The Interest Rate Cap provides for the Company to receive monthly payments based on (i) an amortizing notional amount and (ii) the amount by which the one-month London Inter-Bank Offered Rate exceeds 2.00%. The notional amount as of June 30, 2019 was $32,813. The Interest Rate Cap will terminate on December 31, 2020. The Interest Rate Cap is valued utilizing pricing models which use inputs such as interest rate forecasts and notional amounts. 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 fiscal year ended June 30, 2019. Fair Value Measurements on a Nonrecurring Basis NauticStar Goodwill — The Company performed its annual goodwill analysis as of June 30, 2019. As a result, the fair value of goodwill attributable to the NauticStar reporting unit was estimated to be $8,199 as of June 30, 2019. Inputs used to estimate this fair value include significant unobservable inputs that reflect the Company’s own assumptions about the inputs that market participants would use and, therefore, goodwill attributable to the NauticStar reporting unit is classified within Level 3 of the fair value hierarchy. NauticStar Trade Name — During the goodwill assessment noted above, the Company also analyzed indefinite-lived assets, or trade names. As a result, the fair value of the NauticStar trade name was estimated to be $13,000 as of June 30, 2019. Inputs used to estimate this fair value include significant unobservable inputs that reflect the Company’s own assumptions about the inputs that market participants would use and, therefore, the NauticStar trade name is classified within Level 3 of the fair value hierarchy. See Note 8 for a description of the valuation techniques and inputs used in the fair value measurement of goodwill attributable to the NauticStar reporting unit and the NauticStar trade name. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 11. LONG-TERM DEBT Long-term debt outstanding at June 30, 2019 and 2018 was as follows: 2019 2018 Revolving credit facility $ — $ — Senior secured term loans 115,349 76,656 Deferred debt issuance costs on term loans (1,608 ) (1,500 ) Total debt 113,741 75,156 Less current portion of long-term debt 9,167 5,475 Less current portion of deferred debt issuance costs on term loans (442 ) (406 ) Long-term debt — less current portion $ 105,016 $ 70,087 Previously Existing Credit Facilities In May 2016, the Company entered into a Second Amended and Restated Credit and Guaranty Agreement with a syndicate of certain financial institutions (the “Prior Credit Agreement”). The Prior Credit Agreement replaced the Company’s First Amended Credit Agreement, dated March 13, 2015 (as amended in February 2016). The Prior Credit Agreement provided the Company with an $80,000 senior secured credit facility, consisting of a $50,000 term loan and a $30,000 revolving credit facility. The Company used the proceeds to pay a $79,945 cash dividend to common stockholders in June 2016. The cash dividend payment per share was $4.30 based on shares outstanding as of June 6, 2016. On October 2, 2017, the Company entered into a Third Amended and Restated Credit and Guaranty Agreement with a syndicate of certain financial institutions (the “Third Amended Credit Agreement”). The Third Amended Credit Agreement replaced and paid off the Company’s Prior Credit Agreement, dated May 27, 2016. The Third Amended Credit Agreement provided 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. A portion of the proceeds from the Third Amended Credit Agreement were used for the Company’s acquisition of NauticStar. The Third Amended Credit Agreement bore 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 senior leverage ratio for the fiscal year ended June 30, 2018, the applicable margin for loans accruing interest at the prime rate was 1.0% and the applicable margin for loans accruing interest at LIBOR was 2.0%. In connection with the Third Amended Credit Agreement, the Company paid $1,240 of deferred debt issuance costs during the year ended June 30, 2018. Current Credit Facility On October 1, 2018, the Company entered into a Fourth Amended and Restated Credit and Guaranty Agreement with a syndicate of certain financial institutions (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 were used to fund the Crest acquisition. The Fourth Amended Credit Agreement is secured by substantially all the assets of the Company. Holdings is a guarantor on the Fourth Amended Credit Agreement and the Fourth Amended Credit Agreement contains covenants that restrict the ability of Holdings’ subsidiaries to make distributions to Holdings. The Term Loans will mature and all remaining amounts outstanding thereunder will be due and payable on October 1, 2023. In connection with the Fourth Amended Credit Agreement, the Company paid $729 of deferred debt issuance costs during the year ended June 30, 2019. Maturities for the Term Loans subsequent to June 30, 2019 are as follows: Fiscal years ending June 30, 2020 $ 9,167 2021 9,167 2022 11,459 2023 12,222 2024 73,334 Total $ 115,349 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 senior leverage ratio as of June 30, 2019, the applicable margin for loans accruing interest at the prime rate is 0.75% and the applicable margin for loans accruing interest at LIBOR is 1.75%. As of June 30, 2019 and 2018, the effective interest rate on borrowings outstanding was 4.48% and 4.28%, respectively. During the year ended June 30, 2019, the Company made voluntary prepayments on the Term Loans of $32,660, using cash generated from operations. As of June 30, 2019 and 2018, the Company’s unamortized debt issuance costs related to the Term Loans were $1,608 and $1,500, respectively. These costs are being amortized over the term of the Fourth Amended Credit Agreement. As of June 30, 2019, the Company had no borrowings outstanding on its Revolving Credit Facility and the availability under the Revolving Credit Facility was $35,000. The Company’s unamortized debt issuance costs related to the Revolving Credit Facility was $451 and $383 as of June 30, 2019 and 2018, respectively. As of June 30, 2019, the Company was in compliance with all of its debt covenants under its Fourth Amended Credit Agreement. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 12. INCOME TAXES Earnings from continuing operations before income taxes and equity by jurisdiction were all in the U.S. except for income of $70 and $112 and a loss of $53 in 2019, 2018 and 2017, respectively. For the years ended June 30, the components of the provision for income taxes are as follows: For the Years Ended June 30, 2019 2018 2017 Current income tax expense: Federal $ 10,405 $ 12,140 $ 5,803 State 1,892 276 1,584 Benefit of operating loss carryforwards (171 ) (117 ) (118 ) Total current tax expense 12,126 12,299 7,269 Deferred tax (benefit) expense: Federal (5,837 ) 525 4,154 State (897 ) 32 300 Total deferred tax (benefit) expense (6,734 ) 557 4,454 Income tax expense $ 5,392 $ 12,856 $ 11,723 The difference between the statutory and the effective federal tax rate for the periods below is attributable to the following: For the Years Ended June, 30 2019 2018 2017 Statutory income tax rate 21.00 % 28.06 % 35.00 % State taxes (net of federal income tax benefit and valuation allowance) 2.48 2.32 2.83 Change in valuation allowance (0.57 ) — — Tax credits (3.39 ) (0.44 ) (0.62 ) Revalue of deferred taxes for change in federal tax rate — (1.23 ) — Uncertain tax positions 3.10 (1.73 ) 1.93 Permanent differences (2.54 ) (2.41 ) (1.72 ) Other 0.08 (0.09 ) 0.04 Effective income tax rate 20.16 % 24.48 % 37.46 % As of June 30, 2019 and 2018, a summary of the significant components of the Company’s deferred tax assets and liabilities was as follows: 2019 2018 Deferred tax assets: Warranty reserves $ 3,848 $ 2,898 Intangible asset basis difference 2,306 — Repurchase agreements 427 247 Accrued selling 1,354 — Unrecognized tax benefits 520 357 Stock Compensation 704 467 State net operating loss 144 130 Foreign net operating loss 79 81 Valuation allowance (81 ) (211 ) Credits 48 — Total deferred tax assets 9,349 3,969 Deferred tax liabilities: Depreciation (3,037 ) (1,262 ) Intangible asset basis difference — (4,009 ) Other (72 ) (125 ) Total deferred tax liabilities (3,109 ) (5,396 ) Net deferred tax assets (liabilities) $ 6,240 $ (1,427 ) 2019 2018 Noncurrent deferred tax assets (liabilities) 6,240 (1,427 ) Net deferred tax assets (liabilities) $ 6,240 $ (1,427 ) The Tax Cuts and Jobs Act (“Tax Reform Act”), which became effective December 22, 2017, overhauls U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35% to 21% (blended rate in year one for fiscal year filers), implementing a territorial tax system, imposing a one time “deemed repatriation” tax on all untaxed offshore earnings, and adding/modifying/deleting several major tax deductions significant to the Company. The Company’s deferred tax liabilities decreased $647 in fiscal 2018 from the impact of the corporate tax rate change from the Tax Reform Act. The Company has state net operating loss (NOL) carryforwards of $2,785 that expire in varying years ranging from June 30, 2024 to June 30, 2029, and foreign NOL carryforwards of $376 that can be carried forward indefinitely. However, the Company determined that it is more likely than not that the benefit from certain state and foreign NOL carryforwards will not be realized. In recognition of this risk, the Company has provided a partial valuation allowance on the deferred tax assets relating to these state and foreign NOL carryforwards. Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued amounts for interest and penalties, is as follows: 2019 2018 Balance at July 1 $ 1,711 $ 2,442 Additions based on tax positions related to the current year 889 373 Additions for tax positions of prior years 473 180 Reductions for tax positions of prior years (25 ) (61 ) Settlements of tax positions from prior years (544 ) (1,223 ) Balance at June 30 $ 2,504 $ 1,711 Of this total, $1,934 and $1,308 as of June 30, 2019 and 2018, respectively represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. The total amount of interest and penalties recorded in the consolidated statements of operations for the years ended June 30, 2019, and 2018 was an expense of $120, and a benefit of $288, respectively. The amounts accrued for interest and penalties at June 30, 2019 and 2018 were $391 and $271 respectively and is presented in unrecognized tax positions on the accompanying consolidated balance sheets. In general, it is the practice and intention of the Company to reinvest the earnings of its non-U.S. subsidiaries in those operations. As of June 30, 2019, the Company has not made a provision for U.S. or additional foreign withholding taxes on investments in foreign subsidiaries that are indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. The Company and its subsidiaries are subject to U.S. federal income tax, as well as various other state income taxes and foreign income taxes. The Company is no longer subject to examination by taxing authorities for years before June 30, 2016. The Company expects the total amount of unrecognized benefits to increase by approximately $968 in the next twelve months. The Company records unrecognized tax benefits as liabilities and adjusts these liabilities when its judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | 13. SHARE-BASED COMPENSATION During the 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 its long-term success. On July 16, 2015 the Board amended and restated the 2015 Plan which provided that the aggregate number of shares available to be issued thereunder was 220,723. On July 22, 2015, the Company consummated an 11.139-for-1 stock split in connection with the Company’s initial public offering (“Stock Split”). In accordance with the terms of the 2015 Plan, the Stock Split increased the shares available for issuance commensurately, to 2,458,633 shares. The Plan provides for the grant of stock options, including incentive stock options, and nonqualified stock options (“NSOs”), restricted stock, dividend equivalents, stock payments, restricted stock units, restricted stock awards (“RSAs”), deferred stock, deferred stock units, performance awards, stock appreciation rights, performance stock units (“PSUs”), and cash awards. As of June 30, 2019, there were 1,613,864 shares available for issuance under the 2015 Plan. Restricted Stock Awards Beginning in fiscal year 2017, all RSAs granted to non-employees vest over the remainder of that fiscal year, and all RSAs granted to employees vest over a period of between one to three years. Generally, non-vested RSAs are forfeited if employment is terminated prior to vesting. RSAs are granted at a per share fair value equal to the market value of the Company’s common stock on the grant date. The Company recognizes the cost of non-vested RSAs ratably over the requisite service period. During the years ended June 30, 2019, 2018 and 2017, the Company recognized $913, $616, and $321, respectively, of compensation expense for non-vested RSAs. The related income tax benefit recognized during the years ended June 30, 2019, 2018 and 2017 was $217, $190, and $121, respectively. The fair value of RSAs vested during the years ended June 30, 2019, 2018, and 2017 was $713, $434, and $240, respectively. A summary of RSA activity for the years ended June 30, 2019, 2018 and 2017, is as follows: Number of Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Total Non-vested Restricted Stock Awards at June 30, 2016 — $ — Granted 47,131 12.22 Vested (18,740 ) 18.94 Forfeited (1,974 ) 19.55 Total Non-vested Restricted Stock Awards at June 30, 2017 26,417 12.22 Granted 47,651 19.88 Vested (25,870 ) 16.79 Forfeited (4,888 ) 15.89 Total Non-vested Restricted Stock Awards at June 30, 2018 43,310 17.28 Granted 51,995 26.79 Vested (33,093 ) 21.54 Forfeited (8,408 ) 23.08 Total Non-vested Restricted Stock Awards at June 30, 2019 53,804 22.94 As of June 30, 2019, there was $764 of total unrecognized compensation expense related to non-vested RSAs. The Company expects this expense to be recognized over a weighted average period of 1.75 years. Performance Stock Units During the years ended June 30, 2019, 2018, and 2017, the Company granted performance shares to certain employees. The awards will be earned based on the Company’s achievement of certain performance criteria over a three-year performance period. The performance period for the awards commence on July 1 of the fiscal year in which they were granted and continue for a three-year period, ending on June 30 of the applicable year. The probability of achieving the performance criteria is assessed quarterly. Following the determination of the Company’s achievement with respect to the performance criteria, the amount of shares awarded will be subject to adjustment based on the application of a total shareholder return (“TSR”) modifier. The grant date fair value is determined based on both the assessment of the probability of the Company’s achieving the performance criteria and an estimate of the expected TSR modifier. The TSR modifier estimate is determined by using a Monte Carlo Simulation model, which considers the likelihood of all possible outcomes of long-term market performance. Compensation expense related to non-vested PSUs is recognized ratably over the performance period. During the years ended June 30, 2019, 2018 and 2017, the Company recognized $563, $355, and $150, respectively, of compensation expense for non-vested PSUs. The related income tax benefit recognized during the years ended June 30, 2019, 2018 and 2017 was $134, $110, and $56, respectively. The fair value of PSUs vested during the year ended June 30, 2019 was $384. No PSUs vested during the years ended June 30, 2018 and 2017. A summary of PSU activity for the years ending June 30, 2019, 2018 and 2017, is as follows: Number of Performance Stock Units Outstanding Weighted Average Grant Date Fair Value Total Non-vested Performance Stock Units at June 30, 2016 — $ — Granted 42,586 11.85 Vested — — Forfeited (1,974 ) 11.85 Total Non-vested Performance Stock Units at June 30, 2017 40,612 11.85 Granted 26,416 19.62 Vested — — Forfeited (7,700 ) 14.42 Total Non-vested Performance Stock Units at June 30, 2018 59,328 14.98 Granted 35,122 25.70 Vested (32,373 ) 11.85 Forfeited (11,456 ) 19.73 Total Non-vested Performance Stock Units at June 30, 2019 50,621 23.34 As of June 30, 2019, there was $750 of total unrecognized compensation expense related to non-vested PSUs. The Company expects this expense to be recognized over a weighted average period of 1.8 years. Nonqualified Stock Options In July 2015, the Company granted 137,786 NSOs to certain employees at an option price equal to the $15.00 per share of the Company’s common stock, which was the initial public offering price. These NSOs vested in four equal annual installments on each of the first four grant date anniversaries. Pursuant to the terms of the 2015 Plan, the exercise price of options were reduced by $4.30, the amount of the special cash dividend paid on June 10, 2016, from an exercise price of $15.00 to an exercise price of $10.70. The other terms of the options remain unchanged. The Company 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%. The Company determined that it did not have sufficient information on which to base a reasonable and supportable estimate of expected volatility of its share price, because of limited or no active stock transactions with third parties. Therefore, the Company elected to use the calculated value method. Under this method, the Company used comparable public companies to estimate expected volatility. The Company used historical data to estimate option exercise and post-vesting termination behavior. The risk-free interest rate for the expected term of the option was based on the U.S. Treasury yield curve in effect at the time of the grant. During the years ended June 30, 2019, 2018 and 2017, the Company recognized $201, $215, and $240, respectively, of compensation expense for non-vested NSOs. The related income tax benefit recognized during the years ended June 30, 2019, 2018 and 2017 was $48, $66, and $91, respectively. The fair value of NSOs vested during the years ended June 30, 2019, 2018, and 2017 was $215, $215, and $253, respectively. A summary of NSO activity for the years ending June 30, 2019, 2018, and 2017 is as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (Yrs.) Value Outstanding at June 30, 2016 122,640 $ 10.70 9.1 $ 43 Granted — - — - Exercised (1,578 ) 10.70 — - Forfeited or expired (4,734 ) 10.70 — - Outstanding at June 30, 2017 116,328 10.70 8.1 1,030 Granted — - — - Exercised (10,905 ) 10.70 — - Forfeited or expired (12,298 ) 10.70 — - Outstanding at June 30, 2018 93,125 10.70 7.1 1,700 Granted — - — - Exercised (10,563 ) 10.70 — - Forfeited or expired (1,703 ) 10.70 — - Outstanding at June 30, 2019 80,859 10.70 6.1 719 Fully vested and exercisable at June 30, 2019 56,556 10.70 6.1 503 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases certain equipment as well as the Crest production facility in Owosso, Michigan under operating lease agreements expiring through 2029. Rental expense for the years ended June 30, 2019, 2018, and 2017 was $712, $666, and $603, respectively. Future minimum rental payments under all non-cancelable operating leases with remaining lease terms in excess of one year at June 30, 2019, are as follows: Fiscal years ending June 30, 2020 $ 703 2021 690 2022 628 2023 402 2024 402 and thereafter 1,806 Total $ 4,631 Repurchase Obligations Under certain conditions, the Company is obligated to repurchase new inventory repossessed from dealerships by financial institutions that provide credit to boat dealerships. Under the terms of these repurchase agreements, the Company is obligated to repurchase inventory repossessed by these financial institutions for a period ranging up to 30 months from the date of the original sale of the products to the respective dealers. Repossession of products by the financial institutions normally occurs when a dealer goes out of business or defaults with a lender. The maximum obligation of the Company under such floor plan agreements totaled approximately $229,744 as of June 30, 2019. Purchase Commitments The Company is engaged in an exclusive contract with a single vendor to provide engines for its MasterCraft performance sport boats. This contract makes this vendor the only supplier to MasterCraft for in-board engines and expires June 30, 2023. The Company is obligated to purchase a minimum number of engines for each model year under this contract. The Company could also be required to pay a penalty to this vendor in order to maintain exclusivity if annual purchases under the agreement fail to meet a certain threshold. Legal Proceedings The Company is involved in certain claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s financial condition or results of operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 15. EARNINGS PER SHARE The factors used in the earnings per share computation are as follows: 2019 2018 2017 Net income $ 21,354 $ 39,653 $ 19,570 Weighted average common shares — basic 18,653,892 18,619,793 18,592,885 Dilutive effect of assumed exercises of stock options 45,799 38,835 4,488 Dilutive effect of assumed restricted share awards/units 68,516 55,904 23,335 Weighted average outstanding shares — diluted 18,768,207 18,714,531 18,620,708 Basic earnings per share $ 1.14 $ 2.13 $ 1.05 Diluted earnings per share $ 1.14 $ 2.12 $ 1.05 The calculation of dilutive earnings per share for the years ended June 30, 2019, 2018, and 2017, exclude 10,681, 25,908, and 100,247 potentially dilutive stock options and restricted share awards/units which had the effect of being anti-dilutive. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 16. SEGMENT INFORMATION The Company designs, manufactures, and markets recreational performance sport boats, luxury day boats, and outboard boats under three operating and reportable segments: MasterCraft, NauticStar, and Crest. The Company’s segments are defined by the Company’s operational and reporting structures. MasterCraft Segment The MasterCraft segment produces boats under two product brands, MasterCraft and Aviara, at its Vonore, Tennessee facility. MasterCraft boats are premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Aviara boats are luxury day boats primarily used for general recreational boating. Production of Aviara boats began during the year ended June 30, 2019 and the Company began selling these boats in July 2019. NauticStar Segment The NauticStar segment produces boats at its Amory, Mississippi facility. NauticStar’s boats are primarily used for saltwater fishing and general recreational boating. Crest Segment The Crest segment produces pontoon boats at its Owosso, Michigan facility. Crest’s boats are primarily used for general recreational boating. Each segment distributes its products through its own dealer network. The Company’s chief operating decision maker (“CODM”) regularly reviews the operating performance of each segment including measures of performance based on operating income. Each segment has its own management structure which is responsible for the operations of the segment and which is directly accountable to the CODM. The Company files a consolidated income tax return and does not allocate income taxes and other corporate-level expenses, including interest, to operating segments. All material corporate costs are allocated to the MasterCraft segment. Sales outside of North America accounted for 5.2%, 7.5%, and 9.1% of the Company’s net sales for the years ended June 30, 2019, 2018, and 2017, respectively. The Company had no significant concentrations of sales to individual dealers or countries outside of North America during the years ended June 30, 2019 and 2018. The following tables present selected financial information for the Company’s reportable segments for the years ended June 30, 2019, and 2018. Year Ended June 30, 2019 MasterCraft NauticStar Crest Consolidated Net sales $ 311,830 $ 77,995 $ 76,556 $ 466,381 Operating income 53,989 (27,785 ) 7,055 33,259 Depreciation and amortization 3,481 2,684 1,622 7,787 Goodwill and other intangible asset impairment — 31,000 — 31,000 Purchases of property and equipment 11,730 2,069 265 14,064 Year Ended June 30, 2018 MasterCraft NauticStar Crest Consolidated Net sales $ 266,319 $ 66,406 $ — $ 332,725 Operating income 49,363 6,620 — 55,983 Depreciation and amortization 3,283 1,803 — 5,086 Purchases of property and equipment 4,234 1,071 — 5,305 As of June 30, 2019 As of June 30, 2018 Assets MasterCraft $ 273,046 $ 170,218 NauticStar 52,761 87,866 Crest 85,979 — Eliminations (163,013 ) (81,160 ) Total Assets $ 248,773 $ 176,924 |
QUARTERLY FINANCIAL REPORTING (
QUARTERLY FINANCIAL REPORTING (UNAUDITED) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL REPORTING (UNAUDITED) | 17. QUARTERLY FINANCIAL REPORTING (UNAUDITED) The Company maintains its financial records on the basis of a fiscal year ending on June 30, with the fiscal quarters equaling thirteen weeks. The following tables set forth summary quarterly financial information for the years ended June 30, 2019 and 2018. Due to effects of rounding, the quarterly results presented may not sum to the fiscal year results presented. Quarter Ended Fiscal Year Ended June 30, 2019 March 31, 2019 December 30, 2018 September 30, 2018 June 30, 2019 Net sales $ 122,809 $ 128,390 $ 121,541 $ 93,641 $ 466,381 Gross profit 31,493 31,357 27,074 23,203 113,127 Operating income (loss) (11,538 ) 18,464 14,722 11,611 33,259 Net income (loss) $ (10,062 ) $ 12,763 $ 10,188 $ 8,465 $ 21,354 Basic earnings per common share (loss) $ (0.54 ) $ 0.68 $ 0.55 $ 0.45 $ 1.14 Diluted earnings per common share (loss) $ (0.54 ) $ 0.68 $ 0.54 $ 0.45 $ 1.14 Weighted average shares used for computation of: Basic earnings (loss) per common share 18,658,701 18,657,719 18,653,111 18,646,039 18,653,892 Diluted earnings (loss) per common share 18,658,701 18,756,605 18,772,322 18,768,764 18,768,207 Quarter Ended Fiscal Year Ended June 30, 2018 April 1, 2018 December 31, 2017 October 1, 2017 June 30, 2018 Net sales $ 95,430 $ 93,811 $ 78,435 $ 65,049 $ 332,725 Gross profit 27,885 24,382 19,934 18,163 90,364 Operating income 18,938 15,199 10,782 11,064 55,983 Net income $ 13,144 $ 11,454 $ 8,009 $ 7,046 $ 39,653 Basic earnings per common share $ 0.71 $ 0.62 $ 0.43 $ 0.38 $ 2.13 Diluted earnings per common share $ 0.70 $ 0.61 $ 0.43 $ 0.38 $ 2.12 Weighted average shares used for computation of: Basic earnings per common share 18,619,834 18,622,083 18,619,834 18,615,100 18,619,793 Diluted earnings per common share 18,702,352 18,728,424 18,702,352 18,686,626 18,714,531 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Holdings has no independent operations and no material assets, other than its wholly owned equity interests of MasterCraft, NauticStar, and Crest, which totaled $163,013 and $81,160 as of June 30, 2019 and 2018, respectively, and no material liabilities. As of June 30, 2019, Holdings had no material contingencies, long-term obligations, or guarantees other than a guarantee of the Company’s long-term debt (see Note 11). |
Immaterial Correction of Error | Immaterial Correction of Error — During the fourth quarter of fiscal 2018, the Company recorded an out of period adjustment that effected the Consolidated Statement of Operations for the year ended June 30, 2018. The adjustment related to improperly projecting warranty claims based on part sales rather than part costs. The impact of this adjustment resulted in an increase in net income of $1,033 for the fiscal year ended June 30, 2018, with a corresponding decrease in accrued expenses and other current liabilities on the consolidated balance sheet as of June 30, 2018. During the second quarter of fiscal 2019, the Company identified two 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 these adjustments on the Company’s financial statements under the provision of ASC 250: Accounting Changes and Error Corrections Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements |
Use of Estimates | Use of Estimates — The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and related disclosures. The Company bases these estimates on historical results and various other assumptions believed to be reasonable. The Company’s most significant financial statement estimates include allowances for bad debts, warranty liability, dealer incentives liability, self-insurance liability, fair value of share-based compensation, inventory repurchase contingent obligation, unrecognized tax positions, impairment of long-lived assets and intangible assets subject to amortization, impairment of goodwill and indefinite-lived intangibles, and potential litigation claims and settlements. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition — The Company’s revenue is derived primarily from the sale of boats, marine parts, and accessories. 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 Company offers discounts and sales incentives that include retail promotions, rebates, and floor plan reimbursement costs that are recorded as reductions of revenues in Net sales in the consolidated statements of operations. The consideration recognized represents the amount specified in a contract with a customer, net of estimated 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 because actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if dealer achievement or other items vary from historical trends. Dealer Incentives Dealer incentives include seasonal discounts, volume commitment rebates and other allowances. Dealer rebate and sales promotion incentives recorded during the years ended June 30, 2019, 2018, and 2017, were $11,598, $6,361, and $5,660, respectively. Rebates that apply to boats already in dealer inventory are referred to as retail rebates. Retail rebates recorded during the years ended June 30, 2019, 2018, and 2017, were $4,220, $1,932, and $5,484, respectively. Accrued rebates are included in Accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Dealers generally have no rights to return unsold boats. Occasionally, the Company may accept returns in limited circumstances and at the Company’s discretion under its warranty policy (Note 9). The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase commitment to floor financing providers, who are able to obtain such boats through foreclosure. The Company accrues the estimated fair value of this obligation based on the age of inventory currently under floor plan financing and estimated credit quality of dealers holding the inventory. Floor Plan Reimbursement Costs The Company participates in various programs whereby it agrees to reimburse its dealers for certain floor plan interest costs incurred by such dealers for limited periods of time, generally ranging up to nine months. Such costs are included as a reduction in net sales in the consolidated statements of operations and totaled $7,452, $5,143, and $3,705 for the years ended June 30, 2019, 2018, and 2017, respectively. Shipping and Handling Costs Shipping and handling costs includes those costs incurred to transport product to customers and internal handling costs, which relate to activities to prepare goods for shipment . The Company has elected to account for shipping and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost. Contract Liabilities 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. Other Revenue Recognition Matters The Company has excluded sales and other taxes assessed by a governmental authority in connection with revenue-producing activities from the determination of the transaction price for all contracts. The Company has not adjusted Net sales for the effects of a significant financing component because the period between the transfer of the promised goods and the customer's payment is expected to be one year or less. |
Accounts Receivable | Accounts Receivable — Accounts receivable represents amounts billed to customers under credit terms customary in its industry. The Company normally does not charge interest on its accounts receivable. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to bad debt recovery. |
Cash and Cash Equivalents | Cash and Cash Equivalents — The Company considers all highly-liquid investments with an original maturity of three months or less to be cash and cash equivalents. The Company’s cash deposits may at times exceed federally insured amounts. The Company had no cash equivalents at June 30, 2019 and 2018. |
Concentrations of Credit and Business Risk | Concentrations of Credit and Business Risk — Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of trade receivables. Credit risk on trade receivables is mitigated as a result of the Company’s use of trade letters of credit, dealer floor plan financing arrangements, and the geographically diversified nature of the Company’s customer base. Supplier Concentrations The Company is dependent on the ability of its suppliers to provide products on a timely basis and on favorable pricing terms. The loss of certain principal suppliers or a significant reduction in product availability from principal suppliers could have a material adverse effect on the Company. Business risk insurance is in place to mitigate the business risk associated with sole suppliers for sudden disruptions such as those caused by natural disasters. The Company is dependent on third-party equipment manufacturers, distributors, and dealers for certain parts and materials utilized in the manufacturing process. In 2019, 2018, and 2017 the Company purchased all engines for its MasterCraft performance sport boats under a supply agreement with a single vendor. Total purchases to this vendor were $39,252, $34,734 and $31,075 for 2019, 2018, and 2017, respectively. In 2019 and 2018, the Company purchased a majority of engines for its NauticStar boats under a supply agreement with one vendor. Total purchases from this vendor were $23,718 and $19,668 for 2019 and 2018, respectively. In 2019, the Company purchased a majority of the engines for its Crest boats under a supply agreement with a single vendor. Total purchases from this vendor were $20,382 for 2019. |
Inventories | Inventories — Inventories are valued at the lower of cost or net realizable value and are shown net of an inventory allowance in the balance sheet. Inventory cost includes material, labor, and manufacturing overhead and is determined based on the first-in, first-out (FIFO) method. Provisions are made as necessary to reduce inventory amounts to their net realizable value or to provide for obsolete inventory. |
Property, Plant, and Equipment | Property, Plant, and Equipment — Property, plant, and equipment are recorded at historical cost less accumulated depreciation and are depreciated on a straight-line basis over the estimated useful lives. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that increase the asset’s useful life are capitalized. Ranges of asset lives used for depreciation purposes are: Buildings and improvements 7 - 40 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets — The Company does not amortize goodwill and other purchased intangible assets with indefinite lives. All of the Company’s goodwill and intangible assets relate to either our MasterCraft, NauticStar, or Crest reporting units (see Note 16). The Company’s intangible assets with finite lives consist primarily of dealer networks and are carried at their estimated fair values at the time of acquisition, less accumulated amortization. Amortization is recognized on a straight-line basis over the estimated useful lives of the respective assets (see Note 8). Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. Goodwill Goodwill results from the excess of purchase price over the net identifiable assets of businesses acquired. All three of the Company's reporting units, which are also the Company's reportable segments, have a goodwill balance. The Company reviews goodwill for impairment annually, at fiscal yearend, and whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. As part of the annual test, the Company may perform a qualitative, rather than quantitative, assessment to determine whether the fair values of its reporting units are “more likely than not” to be greater than their carrying values. In performing this qualitative analysis, the Company considers various factors, including the effect of market or industry changes and the reporting units' actual results compared to projected results. If the fair value of a reporting unit does not meet the "more likely than not" criteria discussed above, the impairment test for goodwill is a quantitative test. This test involves comparing the fair value of the reporting unit with its carrying value. If the fair value exceeds the carrying value, goodwill is not considered impaired. If the carrying amount exceeds the fair value then the goodwill is considered impaired and an impairment loss is recognized in an amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit. The Company calculates the fair value of its reporting units by considering both the income approach and market approach. The income approach calculates the fair value of the reporting unit using a discounted cash flow method. Internally forecasted future cash flows, which the Company believes reasonably approximate market participant assumptions, are discounted using a weighted average cost of capital (“Discount Rate”) developed for each reporting unit. The Discount Rate is developed using observable market inputs, as well as considering whether or not there is a measure of risk related to the specific reporting unit’s forecasted performance. Fair value under the market approach is determined for each unit by applying market multiples for comparable public companies to the unit’s financial results. The key uncertainties in these calculations are the assumptions used in determining the reporting unit’s forecasted future performance, including revenue growth and operating margins, as well as the perceived risk associated with those forecasts in determining the Discount Rate, along with selecting representative market multiples. For the year ended June 30, 2019, the Company performed a quantitative test for all three reporting units and determined that the goodwill allocated to the NauticStar reporting unit was impaired. The Company recognized an associated goodwill impairment charge of $28,000 in its statement of operations for the year ended June 30, 2019 (see Note 8). The Company recognized no goodwill impairment for the years ended June 30, 2018 and 2017. Other Intangible Assets The Company's primary intangible assets are dealer networks and trade names acquired in business combinations. Intangible assets are initially valued using a methodology commensurate with the intended use of the asset. The dealer networks were valued using an income approach, which requires an estimate or forecast of the expected future cash flows from the dealer network through the application of the multi-period excess earnings approach. The fair value of trade names is measured using a relief-from-royalty approach, a variation of the income approach, which requires an estimate or forecast of the expected future cash flows. This method assumes the value of the trade name is the discounted cash flows of the amount that would be paid to third parties had the Company not owned the trade name and instead licensed the trade name from another company. The basis for future sales projections for these methods are based on internal revenue forecasts by reporting unit, which the Company believes represent reasonable market participant assumptions. The future cash flows are discounted using an applicable Discount Rate as well as any potential risk premium to reflect the inherent risk of holding a standalone intangible asset. The key uncertainties in these fair value calculations, as applicable, are: assumptions used in developing internal revenue growth and customer expense forecasts, assumed customer attrition rates, the selection of an appropriate royalty rate, as well as the perceived risk associated with those forecasts in determining the Discount Rate. The costs of amortizable intangible assets, including dealer networks, are recognized over their expected useful lives, approximately ten years for the dealer networks, using the straight-line method. Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. Intangible assets not subject to amortization are assessed for impairment at least annually and whenever events or changes in circumstances indicate that it is more likely than not that an asset may be impaired. The impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized for the amount by which the carrying value exceeds the fair value of the asset. For the year ended June 30, 2019, the Company recognized a $3,000 impairment charge related to the NauticStar trade name (see Note 8). The Company recognized no impairments related to other intangible assets for the years ended June 30, 2018 and 2017. |
Long-Lived Assets Other than Intangible Assets | Long-Lived Assets Other than Intangible Assets — The Company assesses the potential for impairment of its long-lived assets if facts and circumstances, such as declines in sales, earnings, or cash flows or adverse changes in the business climate, suggest that they may be impaired. The Company performs its review by comparing the book value of the assets to the estimated future undiscounted cash flows associated with the assets. If any impairment in the carrying value of its long-lived assets is indicated, the assets would be adjusted to an estimate of fair value. |
Income Taxes | Income Taxes — Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. The Company records its global tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Significant judgment is required in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. The realization of these assets is dependent on generating future taxable income. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. In determining the amount of current and deferred tax the Company takes into account the impact of uncertain tax positions and whether additional taxes, interest and penalties may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Company to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will have an impact on tax expense in the period that such a determination is made. The income tax effects of the differences we identify are classified as long-term deferred tax assets and liabilities in our consolidated balance sheets. |
Product Warranties | Product Warranties — The Company offers warranties on the sale of certain products for periods of between one and five years. These warranties require us or our dealers to repair or replace defective products during the warranty period at no cost to the consumer. We estimate the costs that may be incurred under our basic limited warranty and record as a liability the amount of such costs at the time the product revenue is recognized. Factors that affect our warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. We periodically assess the adequacy of the recorded warranty liabilities and adjust the amounts as actual claims are determined or as changes in the obligations become reasonably estimable. |
Research and Development | Research and Development — Research and development expenditures are expensed as incurred. Research and development expense for the years ended June 30, 2019, 2018, and 2017 was $5,566, $4,933, and $3,550, respectively, and is included in operating expenses in the consolidated statements of operations. |
Self-Insurance | Self-Insurance — The Company is self-insured for certain losses relating to product liability claims and employee medical claims. The Company has purchased stop-loss coverage in order to limit its exposure to any significant levels under these plans. Losses are accrued based on the Company’s estimates of the aggregate liability for self-insured claims incurred using certain actuarial assumptions followed in the insurance industry and the Company’s historical experience. |
Deferred Debt Issuance Costs | Deferred Debt Issuance Costs — Certain costs incurred to obtain financing are capitalized and amortized over the term of the related debt using the effective interest method. For the years ended June 30, 2019 and 2018 the Company incurred deferred financing costs of $729 and $1,240, respectively. For the year ended June 30, 2017 the Company did not incur any deferred financing costs. For the years ended June 30, 2019, 2018, and 2017 the Company recorded amortization of $553, $496, and $361, respectively. |
Stock-Based Compensation | Share-Based Compensation — The Company records amounts for all share-based compensation, including grants of restricted stock awards, performance stock units, and nonqualified stock options over the vesting period in the consolidated statements of operations based on their fair values at the date of the grant. Forfeitures of share-based compensation, if any, are recognized as they occur. Share-based compensation costs are included in Selling, general and administrative expense in the consolidated statements of Operations. See Note 13 – Share-Based Compensation for a description of the Company's accounting for share-based compensation plans. |
Advertising | Advertising — Advertising costs are expensed as incurred. Advertising expense recognized during the years ended June 30, 2019, 2018, and 2017, was $9,347, $6,787, and $5,201, respectively, and is included in selling and marketing expenses in the consolidated statements of operations. |
Fair Value Measurements | Fair Value Measurements — The Company measures its financial assets and liabilities and utilizes the established framework for measuring fair value and disclosing information about fair value measurements. Fair value is the price expected to be received to transfer an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Measuring fair value involves a hierarchy of valuation inputs. This hierarchy prioritizes the inputs into three levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly; and, Level 3 inputs are unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own valuation assumptions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The carrying amounts of the Company’s financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable and other liabilities, approximate their estimated fair values due to the relative short-term nature of the amounts. The carrying amount of debt approximates fair value due to variable interest rates at customary terms and rates the Company could obtain in current financing. |
Repurchase Commitments | Repurchase Commitments — In connection with its dealers’ wholesale floor-plan financing of boats, the Company has entered into repurchase agreements with various lending institutions. The repurchase commitment is on an individual unit basis with a term from the date it is financed by the lending institution through the payment date by the dealer, generally not exceeding 30 months. The Company accounts for these arrangements as guarantees and recognizes a liability based on the estimated fair value of the repurchase obligation. The estimated fair value takes into account our estimate of the loss we will incur upon resale of any repurchases. The Company has applied these provisions to its floor plan repurchase agreements as disclosed in Notes 9 and 14. |
Earnings Per Common Share | Earnings Per Common Share — Basic earnings per common share reflects reported earnings divided by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share include the effect of dilutive stock options and restricted share awards, unless inclusion would not be dilutive. |
Operating Leases | Operating Leases — The Company leases its Crest production facility and various equipment under operating lease arrangements. Lease agreements may include rent holidays, rent escalation clauses, and tenant improvement allowances. The Company recognizes scheduled rent increases on a straight-line basis over the lease term beginning with the date the Company takes possession of the leased property. |
Postretirement Benefits | Postretirement Benefits – The Company has a defined contribution plan and makes contributions including matching and discretionary contributions which are based on various percentages of compensation, and in some instances are based on the amount of the employees' contributions to the plans. The expense related to the defined contribution plans was $1,208, $826, and $640 for the years ended June 30, 2019, 2018, and 2017, respectively. Comparability between these years has been affected, primarily, by the acquisition of Crest and NauticStar during the years ended June 30, 2019 and 2018, respectively (See Note 5). |
Segment Information | Segment Information — Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision maker in making decisions on how to allocate resources and assess performance. The Company views its operations in three operating segments based on its operation and management structure: MasterCraft, NauticStar, and Crest (see Note 16). |
New Accounting Pronouncements Issued, Adopted and Not Yet Adopted | New Accounting Pronouncements Issued But Not Yet Adopted In June 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-07 , Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Compensation—Stock Compensation In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Targeted Improvements 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 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. The Company anticipates the adoption of the standard will result in the recognition of approximately $4,000 in right-of-use assets and associated lease obligations on the consolidated balance sheets and will not materially impact results on the consolidated statements of operations. New Accounting Pronouncements Issued And Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) 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 consolidated balance sheet 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 consolidated statement of operations for the year ended June 30, 2019: Balances without Statement of Operations As Reported Effect of Change adoption of ASC 606 Net sales $ 466,381 $ 42 $ 466,423 Income before income tax expense 26,746 42 26,788 Income tax expense 5,392 8 5,400 Net income 21,354 34 21,388 The following table summarizes the impact of ASU 2014-09 on the Company’s consolidated balance sheet as of June 30, 2019: Balances without Balance Sheet As Reported Effect of Change adoption of ASC 606 Accrued expenses and other current liabilities $ 41,421 $ (4,071 ) $ 37,350 Income taxes 3,870 946 4,816 Accumulated deficit (43,454 ) 3,125 (40,329 ) In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments Statement of Cash Flow In January 2017, the FASB issued ASU 2017-04 , Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Cumulative Effect of Adoption | |
Schedule of Ranges of Asset Lives Used for Depreciation Purposes | Ranges of asset lives used for depreciation purposes are: Buildings and improvements 7 - 40 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years |
ASU 14-09 | |
Cumulative Effect of Adoption | |
Summary of Cumulative Effect of Changes Made to Company’s Consolidated Balance Sheets and Statement of Operations | The cumulative effect of the changes made to the Company’s consolidated balance sheet 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 consolidated statement of operations for the year ended June 30, 2019: Balances without Statement of Operations As Reported Effect of Change adoption of ASC 606 Net sales $ 466,381 $ 42 $ 466,423 Income before income tax expense 26,746 42 26,788 Income tax expense 5,392 8 5,400 Net income 21,354 34 21,388 The following table summarizes the impact of ASU 2014-09 on the Company’s consolidated balance sheet as of June 30, 2019: Balances without Balance Sheet As Reported Effect of Change adoption of ASC 606 Accrued expenses and other current liabilities $ 41,421 $ (4,071 ) $ 37,350 Income taxes 3,870 946 4,816 Accumulated deficit (43,454 ) 3,125 (40,329 ) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenues by Major Product Categories | The following table presents the Company’s revenue by major product categories for the year ended June 30, 2019: MasterCraft NauticStar Crest Total Major Product Categories Boats and trailers $ 301,010 $ 77,896 $ 75,742 $ 454,648 Parts 9,471 85 498 10,054 Other revenue 1,349 14 316 1,679 Total $ 311,830 $ 77,995 $ 76,556 $ 466,381 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Schedule of Pro Forma Financial Information | 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 acquisitions had taken place at the beginning of fiscal years 2018 and 2017, or the results that may occur in the future: Fiscal Years Ended 2019 2018 2017 Net sales $ 487,374 $ 423,630 $ 305,705 Net income $ 21,619 $ 38,269 $ 20,919 Basic earnings per common share $ 1.16 $ 2.06 $ 1.13 Diluted earnings per common share $ 1.15 $ 2.04 $ 1.12 |
Crest | |
Schedule of Purchase Price Allocation Based on Estimated Fair Values of Assets Acquired and Liabilities Assumed as of Acquisition Date | Management finalized the valuation related to the assets acquired and liabilities assumed, and the following table summarizes the purchase price allocation for the Crest acquisition: Purchase Price: Cash paid, net of cash acquired $ 81,729 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: Accounts receivable $ 5,215 Inventories 9,853 Other current assets 179 Property, plant and equipment 1,840 Identifiable intangible assets 35,245 Current liabilities (6,841 ) Fair value of assets acquired and liabilities assumed 45,491 Goodwill 36,238 $ 81,729 |
Schedule of Fair Value Estimates of Identifiable Intangible Assets Acquired | The following table summarizes the intangible assets acquired as part of the acquisition: Estimates of Fair Value Estimated Useful Life (in years) Definite-lived intangible assets: Dealer network $ 18,000 10 Software 245 5 Indefinite-lived intangible asset: Trade name 17,000 Total identifiable intangible assets $ 35,245 |
NauticStar | |
Schedule of Purchase Price Allocation Based on Estimated Fair Values of Assets Acquired and Liabilities Assumed as of Acquisition Date | 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 |
Schedule of Fair Value Estimates of Identifiable Intangible Assets Acquired | The 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 10 Indefinite-lived intangible: Trade name 16,000 Total identifiable intangible assets $ 36,000 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at June 30, 2019 and 2018 consisted of the following: 2019 2018 Raw materials and supplies $ 20,034 $ 9,587 Work in process 4,571 2,822 Finished goods 7,207 9,026 Obsolescence reserve (1,152 ) (968 ) Total inventories $ 30,660 $ 20,467 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment - Net | Property, plant, and equipment — net at June 30, 2019 and 2018, consisted of the following: 2019 2018 Land and improvements $ 1,901 $ 1,725 Buildings and improvements 15,652 11,960 Machinery and equipment 29,804 22,570 Furniture and fixtures 1,719 943 Construction in progress 4,866 3,564 Total property, plant, and equipment 53,942 40,762 Less accumulated depreciation (20,306 ) (18,497 ) Property, plant, and equipment — net $ 33,636 $ 22,265 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The following table summarizes changes in the carrying amount of goodwill for the fiscal years ended June 30, 2019 and 2018. MasterCraft NauticStar Crest Total Balance as of June 30, 2017 $ 29,593 $ — $ — $ 29,593 Goodwill acquired — 36,199 — 36,199 Balance as of June 30, 2018 29,593 36,199 — 65,792 Goodwill acquired — — 36,238 36,238 Impairment charges — (28,000 ) — (28,000 ) Balance as of June 30, 2019 $ 29,593 $ 8,199 $ 36,238 $ 74,030 |
Schedule of Carrying Amount of Other Intangible Assets, Net | The following table presents changes in the carrying amount of other intangible assets, net. MasterCraft NauticStar Crest Total Balance as of June 30, 2017 $ 16,643 $ — $ — $ 16,643 Amortization (107 ) (1,490 ) — (1,597 ) Intangible assets acquired — 36,000 — 36,000 Balance as of June 30, 2018 $ 16,536 $ 34,510 $ — $ 51,046 Amortization (107 ) (1,998 ) (1,387 ) (3,492 ) Intangible assets acquired — — 35,245 35,245 Impairment charges — (3,000 ) — (3,000 ) Total other intangible assets $ 16,429 $ 29,512 $ 33,858 $ 79,799 |
Schedule of Cost and Accumulated Amortization of Other Intangible Assets | The following table presents the cost and accumulated amortization of our other intangible assets as of June 30, 2019 and 2018. June 30, 2019 Estimated Gross Useful Carrying Accumulated Net Carrying Life in Years Amount Amortization Impairment Value Dealer network 10 -14 $ 39,500 $ (5,909 ) $ — $ 33,591 Software 5 245 (37 ) — 208 Trade names Indefinite 49,000 — (3,000 ) 46,000 Total identified other intangible assets $ 88,745 $ (5,946 ) $ (3,000 ) $ 79,799 June 30, 2018 Estimated Gross Useful Carrying Accumulated Net Carrying Life in Years Amount Amortization Impairment Value Dealer network 10 -14 $ 21,500 $ (2,454 ) $ — $ 19,046 Trade names Indefinite 32,000 — — 32,000 Total identified other intangible assets $ 53,500 $ (2,454 ) $ — $ 51,046 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for the five years subsequent to June 30, 2019, is presented in the following table: Fiscal years ending June 30, 2020 $ 3,956 2021 3,956 2022 3,956 2023 3,956 2024 3,815 and thereafter 14,160 Total $ 33,799 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities at June 30, 2019 and 2018, consisted of the following: 2019 2018 Warranty $ 17,205 $ 13,077 Dealer incentives 12,623 4,628 Compensation and related accruals 3,494 2,997 Floor plan interest 2,060 1,228 Inventory repurchase contingent obligation 1,936 1,265 Self-insurance 606 703 Debt interest 405 244 Other 3,092 3,724 Total accrued expenses and other current liabilities $ 41,421 $ 27,866 |
Summary of Activity in Accrued Warranty Liability | The following table summarizes the activity in the accrued warranty liability for the years ended June 30, 2019 and 2018: 2019 2018 Beginning balance $ 13,077 $ 12,237 Additions for business acquisitions 990 945 Provisions 8,056 6,523 Payments made (7,198 ) (4,427 ) Adjustments to preexisting warranties 2,280 (2,201 ) Ending balance $ 17,205 $ 13,077 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and 2018: 2019 Fair Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset — interest rate cap $ — $ 50 $ — 2018 Fair Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Asset — interest rate cap $ — $ 525 $ — |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Outstanding | Long-term debt outstanding at June 30, 2019 and 2018 was as follows: 2019 2018 Revolving credit facility $ — $ — Senior secured term loans 115,349 76,656 Deferred debt issuance costs on term loans (1,608 ) (1,500 ) Total debt 113,741 75,156 Less current portion of long-term debt 9,167 5,475 Less current portion of deferred debt issuance costs on term loans (442 ) (406 ) Long-term debt — less current portion $ 105,016 $ 70,087 |
Schedule of Maturities of Long-Term Debt | Maturities for the Term Loans subsequent to June 30, 2019 are as follows: Fiscal years ending June 30, 2020 $ 9,167 2021 9,167 2022 11,459 2023 12,222 2024 73,334 Total $ 115,349 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | For the years ended June 30, the components of the provision for income taxes are as follows: For the Years Ended June 30, 2019 2018 2017 Current income tax expense: Federal $ 10,405 $ 12,140 $ 5,803 State 1,892 276 1,584 Benefit of operating loss carryforwards (171 ) (117 ) (118 ) Total current tax expense 12,126 12,299 7,269 Deferred tax (benefit) expense: Federal (5,837 ) 525 4,154 State (897 ) 32 300 Total deferred tax (benefit) expense (6,734 ) 557 4,454 Income tax expense $ 5,392 $ 12,856 $ 11,723 |
Schedule of Difference Between Statutory and Effective Federal Tax Rate | The difference between the statutory and the effective federal tax rate for the periods below is attributable to the following: For the Years Ended June, 30 2019 2018 2017 Statutory income tax rate 21.00 % 28.06 % 35.00 % State taxes (net of federal income tax benefit and valuation allowance) 2.48 2.32 2.83 Change in valuation allowance (0.57 ) — — Tax credits (3.39 ) (0.44 ) (0.62 ) Revalue of deferred taxes for change in federal tax rate — (1.23 ) — Uncertain tax positions 3.10 (1.73 ) 1.93 Permanent differences (2.54 ) (2.41 ) (1.72 ) Other 0.08 (0.09 ) 0.04 Effective income tax rate 20.16 % 24.48 % 37.46 % |
Summary of Significant Components of Company’s Deferred Tax Assets and Liabilities | As of June 30, 2019 and 2018, a summary of the significant components of the Company’s deferred tax assets and liabilities was as follows: 2019 2018 Deferred tax assets: Warranty reserves $ 3,848 $ 2,898 Intangible asset basis difference 2,306 — Repurchase agreements 427 247 Accrued selling 1,354 — Unrecognized tax benefits 520 357 Stock Compensation 704 467 State net operating loss 144 130 Foreign net operating loss 79 81 Valuation allowance (81 ) (211 ) Credits 48 — Total deferred tax assets 9,349 3,969 Deferred tax liabilities: Depreciation (3,037 ) (1,262 ) Intangible asset basis difference — (4,009 ) Other (72 ) (125 ) Total deferred tax liabilities (3,109 ) (5,396 ) Net deferred tax assets (liabilities) $ 6,240 $ (1,427 ) |
Schedule of Net Deferred Tax Assets and Liabilities as Classified in Consolidated Balance Sheets | 2019 2018 Noncurrent deferred tax assets (liabilities) 6,240 (1,427 ) Net deferred tax assets (liabilities) $ 6,240 $ (1,427 ) |
Schedule of Reconciliation of Unrecognized Tax Benefits Excluding Accrued Amounts for Interest and Penalties | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued amounts for interest and penalties, is as follows: 2019 2018 Balance at July 1 $ 1,711 $ 2,442 Additions based on tax positions related to the current year 889 373 Additions for tax positions of prior years 473 180 Reductions for tax positions of prior years (25 ) (61 ) Settlements of tax positions from prior years (544 ) (1,223 ) Balance at June 30 $ 2,504 $ 1,711 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Stock Awards Activity | A summary of RSA activity for the years ended June 30, 2019, 2018 and 2017, is as follows: Number of Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Total Non-vested Restricted Stock Awards at June 30, 2016 — $ — Granted 47,131 12.22 Vested (18,740 ) 18.94 Forfeited (1,974 ) 19.55 Total Non-vested Restricted Stock Awards at June 30, 2017 26,417 12.22 Granted 47,651 19.88 Vested (25,870 ) 16.79 Forfeited (4,888 ) 15.89 Total Non-vested Restricted Stock Awards at June 30, 2018 43,310 17.28 Granted 51,995 26.79 Vested (33,093 ) 21.54 Forfeited (8,408 ) 23.08 Total Non-vested Restricted Stock Awards at June 30, 2019 53,804 22.94 |
Summary of Performance Stock Units Activity | A summary of PSU activity for the years ending June 30, 2019, 2018 and 2017, is as follows: Number of Performance Stock Units Outstanding Weighted Average Grant Date Fair Value Total Non-vested Performance Stock Units at June 30, 2016 — $ — Granted 42,586 11.85 Vested — — Forfeited (1,974 ) 11.85 Total Non-vested Performance Stock Units at June 30, 2017 40,612 11.85 Granted 26,416 19.62 Vested — — Forfeited (7,700 ) 14.42 Total Non-vested Performance Stock Units at June 30, 2018 59,328 14.98 Granted 35,122 25.70 Vested (32,373 ) 11.85 Forfeited (11,456 ) 19.73 Total Non-vested Performance Stock Units at June 30, 2019 50,621 23.34 |
Summary of Nonqualified Stock Options Activity | A summary of NSO activity for the years ending June 30, 2019, 2018, and 2017 is as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (Yrs.) Value Outstanding at June 30, 2016 122,640 $ 10.70 9.1 $ 43 Granted — - — - Exercised (1,578 ) 10.70 — - Forfeited or expired (4,734 ) 10.70 — - Outstanding at June 30, 2017 116,328 10.70 8.1 1,030 Granted — - — - Exercised (10,905 ) 10.70 — - Forfeited or expired (12,298 ) 10.70 — - Outstanding at June 30, 2018 93,125 10.70 7.1 1,700 Granted — - — - Exercised (10,563 ) 10.70 — - Forfeited or expired (1,703 ) 10.70 — - Outstanding at June 30, 2019 80,859 10.70 6.1 719 Fully vested and exercisable at June 30, 2019 56,556 10.70 6.1 503 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments Under All Non-cancelable Operating Leases | Future minimum rental payments under all non-cancelable operating leases with remaining lease terms in excess of one year at June 30, 2019, are as follows: Fiscal years ending June 30, 2020 $ 703 2021 690 2022 628 2023 402 2024 402 and thereafter 1,806 Total $ 4,631 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Factors Used in Earnings Per Share Computation | The factors used in the earnings per share computation are as follows: 2019 2018 2017 Net income $ 21,354 $ 39,653 $ 19,570 Weighted average common shares — basic 18,653,892 18,619,793 18,592,885 Dilutive effect of assumed exercises of stock options 45,799 38,835 4,488 Dilutive effect of assumed restricted share awards/units 68,516 55,904 23,335 Weighted average outstanding shares — diluted 18,768,207 18,714,531 18,620,708 Basic earnings per share $ 1.14 $ 2.13 $ 1.05 Diluted earnings per share $ 1.14 $ 2.12 $ 1.05 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operating Information for Reportable Segments | The following tables present selected financial information for the Company’s reportable segments for the years ended June 30, 2019, and 2018. Year Ended June 30, 2019 MasterCraft NauticStar Crest Consolidated Net sales $ 311,830 $ 77,995 $ 76,556 $ 466,381 Operating income 53,989 (27,785 ) 7,055 33,259 Depreciation and amortization 3,481 2,684 1,622 7,787 Goodwill and other intangible asset impairment — 31,000 — 31,000 Purchases of property and equipment 11,730 2,069 265 14,064 Year Ended June 30, 2018 MasterCraft NauticStar Crest Consolidated Net sales $ 266,319 $ 66,406 $ — $ 332,725 Operating income 49,363 6,620 — 55,983 Depreciation and amortization 3,283 1,803 — 5,086 Purchases of property and equipment 4,234 1,071 — 5,305 As of June 30, 2019 As of June 30, 2018 Assets MasterCraft $ 273,046 $ 170,218 NauticStar 52,761 87,866 Crest 85,979 — Eliminations (163,013 ) (81,160 ) Total Assets $ 248,773 $ 176,924 |
QUARTERLY FINANCIAL REPORTING_2
QUARTERLY FINANCIAL REPORTING (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following tables set forth summary quarterly financial information for the years ended June 30, 2019 and 2018. Due to effects of rounding, the quarterly results presented may not sum to the fiscal year results presented. Quarter Ended Fiscal Year Ended June 30, 2019 March 31, 2019 December 30, 2018 September 30, 2018 June 30, 2019 Net sales $ 122,809 $ 128,390 $ 121,541 $ 93,641 $ 466,381 Gross profit 31,493 31,357 27,074 23,203 113,127 Operating income (loss) (11,538 ) 18,464 14,722 11,611 33,259 Net income (loss) $ (10,062 ) $ 12,763 $ 10,188 $ 8,465 $ 21,354 Basic earnings per common share (loss) $ (0.54 ) $ 0.68 $ 0.55 $ 0.45 $ 1.14 Diluted earnings per common share (loss) $ (0.54 ) $ 0.68 $ 0.54 $ 0.45 $ 1.14 Weighted average shares used for computation of: Basic earnings (loss) per common share 18,658,701 18,657,719 18,653,111 18,646,039 18,653,892 Diluted earnings (loss) per common share 18,658,701 18,756,605 18,772,322 18,768,764 18,768,207 Quarter Ended Fiscal Year Ended June 30, 2018 April 1, 2018 December 31, 2017 October 1, 2017 June 30, 2018 Net sales $ 95,430 $ 93,811 $ 78,435 $ 65,049 $ 332,725 Gross profit 27,885 24,382 19,934 18,163 90,364 Operating income 18,938 15,199 10,782 11,064 55,983 Net income $ 13,144 $ 11,454 $ 8,009 $ 7,046 $ 39,653 Basic earnings per common share $ 0.71 $ 0.62 $ 0.43 $ 0.38 $ 2.13 Diluted earnings per common share $ 0.70 $ 0.61 $ 0.43 $ 0.38 $ 2.12 Weighted average shares used for computation of: Basic earnings per common share 18,619,834 18,622,083 18,619,834 18,615,100 18,619,793 Diluted earnings per common share 18,702,352 18,728,424 18,702,352 18,686,626 18,714,531 |
ORGANIZATION AND NATURE OF BU_2
ORGANIZATION AND NATURE OF BUSINESS - Additional Information (Details) | 12 Months Ended |
Jun. 30, 2019segment | |
Organization And Nature Of Business [Abstract] | |
Number of reportable segments | 3 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Principles of Consolidation - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Condensed Financial Statements, Captions | ||
Total assets | $ (248,773) | $ (176,924) |
Eliminations | ||
Condensed Financial Statements, Captions | ||
Total assets | $ 163,013 | $ 81,160 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Immaterial Correction of Error - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Immaterial correction of error | |||||||||||
Net income | $ (10,062) | $ 12,763 | $ 10,188 | $ 8,465 | $ 13,144 | $ 11,454 | $ 8,009 | $ 7,046 | $ 21,354 | $ 39,653 | $ 19,570 |
Increase (decrease) in accrued expenses and other current liabilities | 6,609 | 4,720 | (866) | ||||||||
Revenue | $ 122,809 | $ 128,390 | $ 121,541 | $ 93,641 | $ 95,430 | $ 93,811 | $ 78,435 | $ 65,049 | $ 466,381 | 332,725 | $ 228,634 |
Product warranty term | 5 years | ||||||||||
Error Correction for Net Income | Revision of Warranty Claims Projection | |||||||||||
Immaterial correction of error | |||||||||||
Net income | 1,033 | ||||||||||
Error Correction For Accrued Expenses and Other Current Liabilities | Revision of Warranty Claims Projection | |||||||||||
Immaterial correction of error | |||||||||||
Increase (decrease) in accrued expenses and other current liabilities | $ (1,033) | ||||||||||
Correction of Error in Accrued Warranty Calculation, Net | |||||||||||
Immaterial correction of error | |||||||||||
Increase (decrease) in accrued expenses and other current liabilities | $ 225 | ||||||||||
Revenue | (225) | ||||||||||
Correction of Error in Accrued Warranty Calculation, Inaccurate Data on Cost of Parts | |||||||||||
Immaterial correction of error | |||||||||||
Increase (decrease) in accrued expenses and other current liabilities | (1,125) | ||||||||||
Revenue | 1,125 | ||||||||||
Correction of Error in Accrued Warranty Calculation, Assumptions Used In Change in Warranty Period | |||||||||||
Immaterial correction of error | |||||||||||
Increase (decrease) in accrued expenses and other current liabilities | 1,350 | ||||||||||
Revenue | $ (1,350) |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Shipping and Handling Costs - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue Recognition | |||
Dealer rebates and sales promotion incentives | $ 11,598 | $ 6,361 | $ 5,660 |
Retail rebates | 4,220 | 1,932 | 5,484 |
Floor plan reimbursement costs | $ 7,452 | $ 5,143 | $ 3,705 |
Maximum | |||
Revenue Recognition | |||
Term of reimbursement program | 9 months |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents - Additional Information (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Cash and cash equivalents | ||
Cash equivalents | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Concentrations of Credit and Business Risk - Additional Information (Details) - Supplier Concentration Risk - Cost of Goods - Engine Supplier $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019USD ($)item | Jun. 30, 2018USD ($)item | Jun. 30, 2017USD ($)item | |
MasterCraft | |||
Concentrations of Credit and Business Risk | |||
Number of vendors | item | 1 | 1 | 1 |
Purchases during period | $ | $ 39,252 | $ 34,734 | $ 31,075 |
NauticStar | |||
Concentrations of Credit and Business Risk | |||
Number of vendors | item | 1 | 1 | |
Purchases during period | $ | $ 23,718 | $ 19,668 | |
Crest | |||
Concentrations of Credit and Business Risk | |||
Number of vendors | item | 1 | ||
Purchases during period | $ | $ 20,382 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Ranges of Asset Lives Used for Depreciation Purposes (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Buildings and improvements | Minimum | |
Property, plant, and equipment | |
Asset lives | 7 years |
Buildings and improvements | Maximum | |
Property, plant, and equipment | |
Asset lives | 40 years |
Machinery and equipment | Minimum | |
Property, plant, and equipment | |
Asset lives | 3 years |
Machinery and equipment | Maximum | |
Property, plant, and equipment | |
Asset lives | 7 years |
Furniture and fixtures | Minimum | |
Property, plant, and equipment | |
Asset lives | 3 years |
Furniture and fixtures | Maximum | |
Property, plant, and equipment | |
Asset lives | 7 years |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Intangible Assets - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Unit | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Goodwill and Other Intangible Assets | |||||
Number of reporting units | Unit | 3 | ||||
Impairment of goodwill | $ 0 | $ 0 | $ 28,000,000 | $ 0 | $ 0 |
Impairment of other indefinite-lived intangible assets | 3,000,000 | $ 0 | $ 0 | ||
Trade names | |||||
Goodwill and Other Intangible Assets | |||||
Impairment of other indefinite-lived intangible assets | $ 3,000,000 | ||||
Dealer network | |||||
Goodwill and Other Intangible Assets | |||||
Expected useful lives of intangible assets | 10 years | ||||
NauticStar | |||||
Goodwill and Other Intangible Assets | |||||
Impairment of goodwill | $ 28,000,000 | ||||
NauticStar | Trade names | |||||
Goodwill and Other Intangible Assets | |||||
Impairment of other indefinite-lived intangible assets | $ 3,000,000 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - Warranties, Research and Development, Deferred Debt Issuance Costs, and Other - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 30, 2018 | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Product Warranties | ||||
Product warranty term | 5 years | |||
Research and Development | ||||
Research and development expenditures | $ 5,566,000 | $ 4,933,000 | $ 3,550,000 | |
Deferred Debt Issuance Costs | ||||
Deferred financing costs incurred | 729,000 | 1,240,000 | 0 | |
Amortization of deferred financing costs | 553,000 | 496,000 | 361,000 | |
Advertising | ||||
Advertising costs | $ 9,347,000 | 6,787,000 | 5,201,000 | |
Repurchase Commitments | ||||
Maximum term of repurchase commitments | 30 months | |||
Postretirement Benefits | ||||
Defined contribution plan expense | $ 1,208,000 | $ 826,000 | $ 640,000 | |
Segment Information | ||||
Number of reportable segments | segment | 3 | |||
Minimum | ||||
Product Warranties | ||||
Product warranty term | 1 year | |||
Maximum | ||||
Product Warranties | ||||
Product warranty term | 5 years |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES - Estimated Effects of ASU 2016-02 - Additional Information (Details) - ASU 2016-02 - Subsequent Event $ in Thousands | Jul. 01, 2019USD ($) |
Item Effected [Line Items] | |
Right-of-use assets | $ 4,000 |
Lease obligations | $ 4,000 |
SIGNIFICANT ACCOUNTING POLIC_13
SIGNIFICANT ACCOUNTING POLICIES - Summary of Cumulative Effect of Changes Made to Company's Consolidated Balance Sheets and Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2018 | |
Cumulative effect of the changes | ||||||||||||
Accrued expenses and other current liabilities | $ 41,421 | $ 27,866 | $ 41,421 | $ 27,866 | $ 31,895 | |||||||
Deferred income taxes | 1,427 | 1,427 | 489 | |||||||||
Accumulated deficit | (43,454) | (61,717) | (43,454) | (61,717) | (64,808) | |||||||
Statement of Operations | ||||||||||||
Net sales | 122,809 | $ 128,390 | $ 121,541 | $ 93,641 | 95,430 | $ 93,811 | $ 78,435 | $ 65,049 | 466,381 | 332,725 | $ 228,634 | |
Income before income tax expense | 26,746 | 52,509 | 31,293 | |||||||||
Income tax expense | 5,392 | 12,856 | 11,723 | |||||||||
Net income | (10,062) | $ 12,763 | $ 10,188 | $ 8,465 | 13,144 | $ 11,454 | $ 8,009 | $ 7,046 | 21,354 | 39,653 | $ 19,570 | |
Balance Sheet | ||||||||||||
Accrued expenses and other current liabilities | 41,421 | 27,866 | 41,421 | 27,866 | 31,895 | |||||||
Income taxes | 3,870 | 3,870 | ||||||||||
Accumulated deficit | (43,454) | $ (61,717) | (43,454) | $ (61,717) | (64,808) | |||||||
Adjustments Due to ASC 606 | ||||||||||||
Cumulative effect of the changes | ||||||||||||
Accrued expenses and other current liabilities | (4,071) | (4,071) | 4,029 | |||||||||
Deferred income taxes | (938) | |||||||||||
Accumulated deficit | 3,125 | 3,125 | (3,091) | |||||||||
Statement of Operations | ||||||||||||
Net sales | 42 | |||||||||||
Income before income tax expense | 42 | |||||||||||
Income tax expense | 8 | |||||||||||
Net income | 34 | |||||||||||
Balance Sheet | ||||||||||||
Accrued expenses and other current liabilities | (4,071) | (4,071) | 4,029 | |||||||||
Income taxes | 946 | 946 | ||||||||||
Accumulated deficit | 3,125 | 3,125 | $ (3,091) | |||||||||
Balances without adoption of ASC 606 | ||||||||||||
Cumulative effect of the changes | ||||||||||||
Accrued expenses and other current liabilities | 37,350 | 37,350 | ||||||||||
Accumulated deficit | (40,329) | (40,329) | ||||||||||
Statement of Operations | ||||||||||||
Net sales | 466,423 | |||||||||||
Income before income tax expense | 26,788 | |||||||||||
Income tax expense | 5,400 | |||||||||||
Net income | 21,388 | |||||||||||
Balance Sheet | ||||||||||||
Accrued expenses and other current liabilities | 37,350 | 37,350 | ||||||||||
Income taxes | 4,816 | 4,816 | ||||||||||
Accumulated deficit | $ (40,329) | $ (40,329) |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Revenues by Major Product Categories (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue by Categories | |||||||||||
Revenue | $ 122,809 | $ 128,390 | $ 121,541 | $ 93,641 | $ 95,430 | $ 93,811 | $ 78,435 | $ 65,049 | $ 466,381 | $ 332,725 | $ 228,634 |
Boats and trailers | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 454,648 | ||||||||||
Parts | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 10,054 | ||||||||||
Other | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 1,679 | ||||||||||
MasterCraft | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 311,830 | 266,319 | |||||||||
MasterCraft | Boats and trailers | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 301,010 | ||||||||||
MasterCraft | Parts | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 9,471 | ||||||||||
MasterCraft | Other | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 1,349 | ||||||||||
NauticStar | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 77,995 | $ 66,406 | |||||||||
NauticStar | Boats and trailers | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 77,896 | ||||||||||
NauticStar | Parts | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 85 | ||||||||||
NauticStar | Other | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 14 | ||||||||||
Crest | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 76,556 | ||||||||||
Crest | Boats and trailers | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 75,742 | ||||||||||
Crest | Parts | |||||||||||
Revenue by Categories | |||||||||||
Revenue | 498 | ||||||||||
Crest | Other | |||||||||||
Revenue by Categories | |||||||||||
Revenue | $ 316 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Contract liabilities | ||
Customer contract liabilities | $ 2,194 | |
Contract liabilities with customer, revenue recognized during the period | $ 2,194 | |
Accrued Expenses and Other Current Liabilities | ||
Contract liabilities | ||
Customer contract liabilities | $ 759 |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Details) $ in Thousands | Oct. 01, 2018USD ($)item | Oct. 02, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Acquisition | ||||||
Number of boat brands | item | 3 | |||||
Purchase Price: | ||||||
Cash paid, net of cash acquired | $ 81,729 | $ 80,511 | ||||
Goodwill | $ 74,030 | 74,030 | 65,792 | $ 29,593 | ||
Crest | ||||||
Acquisition | ||||||
Net sales | 76,556 | |||||
Operating income | $ 7,055 | |||||
Purchase Price: | ||||||
Cash paid, net of cash acquired | $ 81,729 | |||||
Weighted average useful life | 9 years 10 months 24 days | |||||
Goodwill | $ 36,238 | |||||
Crest | General and Administrative Expense | ||||||
Identifiable intangible assets | ||||||
Acquisition related costs | $ 1,510 | |||||
NauticStar | ||||||
Purchase Price: | ||||||
Cash paid, net of cash acquired | $ 80,511 | |||||
Weighted average useful life | 10 years | |||||
Goodwill | $ 36,199 | |||||
NauticStar | General and Administrative Expense | ||||||
Identifiable intangible assets | ||||||
Acquisition related costs | $ 1,486 |
ACQUISITIONS - Schedule of Purc
ACQUISITIONS - Schedule of Purchase Price Allocation Based on Estimated Fair Values of Assets Acquired and Liabilities Assumed as of Acquisition Date (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Oct. 02, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Purchase Price: | |||||
Cash paid, net of cash acquired | $ 81,729 | $ 80,511 | |||
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: | |||||
Goodwill | $ 74,030 | $ 65,792 | $ 29,593 | ||
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 | 5,215 | ||||
Inventories | 9,853 | ||||
Other current assets | 179 | ||||
Property, plant and equipment | 1,840 | ||||
Identifiable intangible assets | 35,245 | ||||
Current liabilities | (6,841) | ||||
Fair value of assets acquired and liabilities assumed | 45,491 | ||||
Goodwill | 36,238 | ||||
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 |
ACQUISITIONS - Schedule of Fair
ACQUISITIONS - Schedule of Fair Value Estimates of Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Oct. 02, 2017 | Jun. 30, 2019 |
Dealer network | |||
Identifiable intangible assets | |||
Estimated useful life | 10 years | ||
Software | |||
Identifiable intangible assets | |||
Estimated useful life | 5 years | ||
Crest | |||
Identifiable intangible assets | |||
Total identifiable intangible assets | $ 35,245 | ||
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 | ||
NauticStar | |||
Identifiable intangible assets | |||
Total identifiable intangible assets | $ 36,000 | ||
NauticStar | Trade names | |||
Identifiable intangible assets | |||
Indefinite-lived intangible | 16,000 | ||
NauticStar | Dealer network | |||
Identifiable intangible assets | |||
Definite-lived intangible | $ 20,000 | ||
Estimated useful life | 10 years |
ACQUISITIONS - Crest Related Pa
ACQUISITIONS - Crest Related Party Transactions - Additional Information (Details) - Crest $ in Thousands | Oct. 01, 2018USD ($)item | Jun. 30, 2019USD ($) |
Lease Agreement | ||
Lease term | 10 years | |
Lease expiration date | Sep. 30, 2028 | |
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 | |
Rent expense | $ 248 | |
Parts Supplier | ||
Lease Agreement | ||
Product purchases | 2,830 | |
Outstanding balance due | $ 146 |
ACQUISITIONS - Schedule of Pro
ACQUISITIONS - Schedule of Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pro Forma financial information | |||
Net sales | $ 487,374 | $ 423,630 | $ 305,705 |
Net income | $ 21,619 | $ 38,269 | $ 20,919 |
Basic earnings per common share | $ 1.16 | $ 2.06 | $ 1.13 |
Diluted earnings per common share | $ 1.15 | $ 2.04 | $ 1.12 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 20,034 | $ 9,587 |
Work in process | 4,571 | 2,822 |
Finished goods | 7,207 | 9,026 |
Obsolescence reserve | (1,152) | (968) |
Total inventories | $ 30,660 | $ 20,467 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT - Schedule of Property, Plant, and Equipment - Net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Property, plant and equipment - net | ||
Total property, plant, and equipment | $ 53,942 | $ 40,762 |
Less accumulated depreciation | (20,306) | (18,497) |
Property, plant, and equipment — net | 33,636 | 22,265 |
Land and improvements | ||
Property, plant and equipment - net | ||
Total property, plant, and equipment | 1,901 | 1,725 |
Buildings and improvements | ||
Property, plant and equipment - net | ||
Total property, plant, and equipment | 15,652 | 11,960 |
Machinery and equipment | ||
Property, plant and equipment - net | ||
Total property, plant, and equipment | 29,804 | 22,570 |
Furniture and fixtures | ||
Property, plant and equipment - net | ||
Total property, plant, and equipment | 1,719 | 943 |
Construction in progress | ||
Property, plant and equipment - net | ||
Total property, plant, and equipment | $ 4,866 | $ 3,564 |
PROPERTY, PLANT, AND EQUIPMEN_3
PROPERTY, PLANT, AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 4,295 | $ 3,489 | $ 3,124 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Line Items] | |||||
Goodwill, beginning balance | $ 65,792,000 | $ 29,593,000 | |||
Goodwill acquired | 36,238,000 | 36,199,000 | |||
Impairment charges | $ 0 | $ 0 | (28,000,000) | 0 | $ 0 |
Goodwill, ending balance | 74,030,000 | 65,792,000 | 74,030,000 | 65,792,000 | 29,593,000 |
MasterCraft | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | 29,593,000 | 29,593,000 | |||
Impairment charges | 0 | ||||
Goodwill, ending balance | 29,593,000 | 29,593,000 | 29,593,000 | 29,593,000 | $ 29,593,000 |
NauticStar | |||||
Goodwill [Line Items] | |||||
Goodwill, beginning balance | 36,199,000 | ||||
Goodwill acquired | 36,199,000 | ||||
Impairment charges | (28,000,000) | ||||
Goodwill, ending balance | 8,199,000 | $ 36,199,000 | 8,199,000 | $ 36,199,000 | |
Crest | |||||
Goodwill [Line Items] | |||||
Goodwill acquired | 36,238,000 | ||||
Impairment charges | 0 | ||||
Goodwill, ending balance | $ 36,238,000 | $ 36,238,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Line Items] | |||||
Goodwill impairment charge | $ 0 | $ 0 | $ 28,000,000 | $ 0 | $ 0 |
Goodwill | 74,030,000 | 65,792,000 | 74,030,000 | 65,792,000 | 29,593,000 |
Impairment of goodwill | 0 | 0 | 28,000,000 | 0 | 0 |
NauticStar | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charge | 28,000,000 | ||||
Goodwill | 8,199,000 | 36,199,000 | 8,199,000 | 36,199,000 | |
Impairment of goodwill | 28,000,000 | ||||
MasterCraft | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charge | 0 | ||||
Goodwill | 29,593,000 | $ 29,593,000 | 29,593,000 | $ 29,593,000 | $ 29,593,000 |
Impairment of goodwill | 0 | ||||
Crest | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charge | 0 | ||||
Goodwill | $ 36,238,000 | 36,238,000 | |||
Impairment of goodwill | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Impairment of other indefinite-lived intangible assets | $ 3,000,000 | $ 0 | $ 0 |
Amortization of intangible assets | 3,492,000 | 1,597,000 | $ 107,000 |
Trade names | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Impairment of other indefinite-lived intangible assets | 3,000,000 | ||
Crest | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Assets acquired | $ 35,245,000 | ||
Weighted average useful life | 10 years | ||
Other intangible asset impairment loss | $ 0 | ||
NauticStar | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Assets acquired | $ 36,000,000 | ||
NauticStar | Trade names | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Impairment of other indefinite-lived intangible assets | 3,000,000 | ||
MasterCraft | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Other intangible asset impairment loss | $ 0 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Carrying Amount of Other Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Goodwill, beginning balance | $ 51,046,000 | ||
Amortization | (3,492,000) | $ (1,597,000) | $ (107,000) |
Impairment charges | (3,000,000) | 0 | 0 |
Goodwill, ending balance | 79,799,000 | 51,046,000 | |
NauticStar | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Assets acquired | 36,000,000 | ||
Crest | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Assets acquired | 35,245,000 | ||
Other Intangible Assets | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Goodwill, beginning balance | 51,046,000 | 16,643,000 | |
Amortization | (3,492,000) | (1,597,000) | |
Assets acquired | 35,245,000 | 36,000,000 | |
Impairment charges | (3,000,000) | ||
Goodwill, ending balance | 79,799,000 | 51,046,000 | 16,643,000 |
Other Intangible Assets | MasterCraft | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Goodwill, beginning balance | 16,536,000 | 16,643,000 | |
Amortization | (107,000) | (107,000) | |
Goodwill, ending balance | 16,429,000 | 16,536,000 | $ 16,643,000 |
Other Intangible Assets | NauticStar | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Goodwill, beginning balance | 34,510,000 | ||
Amortization | (1,998,000) | (1,490,000) | |
Assets acquired | 36,000,000 | ||
Impairment charges | (3,000,000) | ||
Goodwill, ending balance | 29,512,000 | $ 34,510,000 | |
Other Intangible Assets | Crest | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Amortization | (1,387,000) | ||
Assets acquired | 35,245,000 | ||
Goodwill, ending balance | $ 33,858,000 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Cost and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Total | $ 33,799,000 | ||
Impairment charges | (3,000,000) | $ 0 | $ 0 |
Gross Carrying Amount | 88,745,000 | 53,500,000 | |
Accumulated Amortization | (5,946,000) | (2,454,000) | |
Net Carrying Amount | $ 79,799,000 | $ 51,046,000 | |
Trade names | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Estimated Useful Life in Years | Indefinite | Indefinite | |
Gross Carrying Amount | $ 49,000,000 | $ 32,000,000 | |
Impairment charges | (3,000,000) | ||
Net Carrying Amount | $ 46,000,000 | 32,000,000 | |
Dealer network | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Expected useful lives of intangible assets | 10 years | ||
Gross Carrying Amount | $ 39,500,000 | 21,500,000 | |
Accumulated Amortization | (5,909,000) | (2,454,000) | |
Total | $ 33,591,000 | $ 19,046,000 | |
Dealer network | Minimum | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Expected useful lives of intangible assets | 10 years | 10 years | |
Dealer network | Maximum | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Expected useful lives of intangible assets | 14 years | 14 years | |
Software | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Expected useful lives of intangible assets | 5 years | ||
Gross Carrying Amount | $ 245,000 | ||
Accumulated Amortization | (37,000) | ||
Total | $ 208,000 |
GOODWILL AND OTHER INTANGIBLE_8
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Estimated amortization expense | |
2020 | $ 3,956 |
2021 | 3,956 |
2022 | 3,956 |
2023 | 3,956 |
2024 | 3,815 |
and thereafter | 14,160 |
Total | $ 33,799 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2018 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Warranty | $ 17,205 | $ 13,077 | |
Dealer incentives | 12,623 | 4,628 | |
Compensation and related accruals | 3,494 | 2,997 | |
Floor plan interest | 2,060 | 1,228 | |
Inventory repurchase contingent obligation | 1,936 | 1,265 | |
Self-insurance | 606 | 703 | |
Debt interest | 405 | 244 | |
Other | 3,092 | 3,724 | |
Total accrued expenses and other current liabilities | $ 41,421 | $ 31,895 | $ 27,866 |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Summary of Activity in Accrued Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Roll forward of the accrued warranty liability | ||
Beginning balance | $ 13,077 | $ 12,237 |
Additions for business acquisitions | 990 | 945 |
Provisions | 8,056 | 6,523 |
Payments made | (7,198) | (4,427) |
Adjustments to preexisting warranties | 2,280 | (2,201) |
Ending balance | $ 17,205 | $ 13,077 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Level 2 | Interest rate cap | Recurring | ||
Assets and liabilities measured at fair value | ||
Asset | $ 50 | $ 525 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 26, 2017 | Jun. 30, 2017 |
Assets and liabilities measured at fair value | ||||
Goodwill | $ 74,030 | $ 65,792 | $ 29,593 | |
NauticStar | ||||
Assets and liabilities measured at fair value | ||||
Goodwill | 8,199 | $ 36,199 | ||
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 | |||
Nonrecurring | NauticStar | Level 3 | ||||
Assets and liabilities measured at fair value | ||||
Goodwill | 8,199 | |||
Trade names | 13,000 | |||
Interest rate cap | ||||
Assets and liabilities measured at fair value | ||||
Notional amount | $ 32,813 | |||
Interest rate cap | LIBOR | ||||
Assets and liabilities measured at fair value | ||||
Interest rate cap | 2.00% |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Long-term debt | ||
Total debt | $ 113,741 | $ 75,156 |
Less current portion of long-term debt | 9,167 | 5,475 |
Long-term debt — less current portion | 105,016 | 70,087 |
Senior Secured Term Loans | ||
Long-term debt | ||
Long-term debt | 115,349 | 76,656 |
Deferred debt issuance costs on term loans | (1,608) | (1,500) |
Less current portion of deferred debt issuance costs on term loans | $ (442) | $ (406) |
LONG-TERM DEBT - Senior Secured
LONG-TERM DEBT - Senior Secured Credit Facility - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2018 | Oct. 02, 2017 | Jun. 30, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | May 22, 2016 |
Long-term debt | ||||||
Unamortized debt issuance costs | $ 451 | $ 383 | ||||
Dividends paid | ||||||
Cash dividends paid | $ 79,945 | |||||
Cash dividend per share | $ 4.30 | |||||
Senior Secured Term Loans | ||||||
Long-term debt | ||||||
Unamortized debt issuance costs | 1,608 | 1,500 | ||||
Revolving Credit Facility | ||||||
Long-term debt | ||||||
Outstanding borrowings | 0 | |||||
Net availability under facility | 35,000 | |||||
Unamortized debt issuance costs | 451 | 383 | ||||
Second Amended Credit Agreement | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 80,000 | |||||
Second Amended Credit Agreement | Senior Secured Term Loans | ||||||
Long-term debt | ||||||
Loan commitment | 50,000 | |||||
Second Amended Credit Agreement | Revolving Credit Facility | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 30,000 | |||||
Third Amended Credit Agreement | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 145,000 | |||||
Payment of deferred debt issuance costs | $ 1,240 | |||||
Third Amended Credit Agreement | Prime Rate | ||||||
Long-term debt | ||||||
Effective interest rate | 1.00% | |||||
Third Amended Credit Agreement | Prime Rate | Minimum | ||||||
Long-term debt | ||||||
Variable margin rate | 0.75% | |||||
Third Amended Credit Agreement | Prime Rate | Maximum | ||||||
Long-term debt | ||||||
Variable margin rate | 1.75% | |||||
Third Amended Credit Agreement | LIBOR | ||||||
Long-term debt | ||||||
Effective interest rate | 2.00% | |||||
Third Amended Credit Agreement | LIBOR | Minimum | ||||||
Long-term debt | ||||||
Variable margin rate | 1.75% | |||||
Third Amended Credit Agreement | LIBOR | Maximum | ||||||
Long-term debt | ||||||
Variable margin rate | 2.75% | |||||
Third Amended Credit Agreement | Senior Secured Term Loans | ||||||
Long-term debt | ||||||
Loan commitment | $ 115,000 | |||||
Third Amended Credit Agreement | Revolving Credit Facility | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 30,000 | |||||
Fourth Amended Credit Agreement | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 190,000 | |||||
Payment of deferred debt issuance costs | $ 729 | |||||
Fourth Amended Credit Agreement | Prime Rate | ||||||
Long-term debt | ||||||
Effective interest rate | 0.75% | |||||
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 | 1.75% | |||||
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% | |||||
Fourth Amended Credit Agreement | Senior Secured Term Loans | ||||||
Long-term debt | ||||||
Voluntary prepayments | $ 32,660 | |||||
Fourth Amended Credit Agreement | Revolving Credit Facility | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 35,000 | |||||
Effective interest rate | 4.48% | 4.28% | ||||
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 |
LONG-TERM DEBT - Schedule of Ma
LONG-TERM DEBT - Schedule of Maturities of Long-Term Debt (Details) - Senior Secured Term Loans - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Long-term debt maturities | ||
2020 | $ 9,167 | |
2021 | 9,167 | |
2022 | 11,459 | |
2023 | 12,222 | |
2024 | 73,334 | |
Total | $ 115,349 | $ 76,656 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings from continuing operations before income taxes and equity by jurisdiction | ||||
Income (loss) from continuing operations before income taxes and equity, foreign | $ 70 | $ 112 | $ (53) | |
Effect of Tax Cuts and Jobs Act of 2017, Accounting Incomplete, Provisional | ||||
Statutory income tax rate | 35.00% | 21.00% | 28.06% | 35.00% |
Reduction in deferred tax liabilities from impact of Tax Cuts and Jobs Act of 2017 | $ 647 | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||
Unrecognized tax benefits that would impact effective tax rate | $ 1,934 | 1,308 | ||
Expense (benefit) from interest and penalties recorded | 120 | (288) | ||
Amount of unrecognized benefits expected to increase over the next twelve months | 968 | |||
Unrecognized tax positions | ||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||
Accrued for interest and penalties | 391 | $ 271 | ||
State | ||||
Operating Loss Carryforwards | ||||
Net operating loss carryforwards | 2,785 | |||
Foreign | ||||
Operating Loss Carryforwards | ||||
Net operating loss carryforwards | $ 376 |
INCOME TAXES - Components of Pr
INCOME TAXES - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current income tax expense: | |||
Federal | $ 10,405 | $ 12,140 | $ 5,803 |
State | 1,892 | 276 | 1,584 |
Benefit of operating loss carryforwards | (171) | (117) | (118) |
Total current tax expense | 12,126 | 12,299 | 7,269 |
Deferred tax (benefit) expense: | |||
Federal | (5,837) | 525 | 4,154 |
State | (897) | 32 | 300 |
Total deferred tax (benefit) expense | (6,734) | 557 | 4,454 |
Income tax expense | $ 5,392 | $ 12,856 | $ 11,723 |
INCOME TAXES - Schedule of Diff
INCOME TAXES - Schedule of Difference Between Statutory and Effective Federal Tax Rate (Details) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Difference between the statutory and the effective federal tax rate | ||||
Statutory income tax rate | 35.00% | 21.00% | 28.06% | 35.00% |
State taxes (net of federal income tax benefit and valuation allowance) | 2.48% | 2.32% | 2.83% | |
Change in valuation allowance | (0.57%) | |||
Tax credits | (3.39%) | (0.44%) | (0.62%) | |
Revalue of deferred taxes for change in federal tax rate | (1.23%) | |||
Uncertain tax positions | 3.10% | (1.73%) | 1.93% | |
Permanent differences | (2.54%) | (2.41%) | (1.72%) | |
Other | 0.08% | (0.09%) | 0.04% | |
Effective income tax rate | 20.16% | 24.48% | 37.46% |
INCOME TAXES - Summary of Signi
INCOME TAXES - Summary of Significant Components of Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred tax assets: | ||
Warranty reserves | $ 3,848 | $ 2,898 |
Intangible asset basis difference | 2,306 | |
Repurchase agreements | 427 | 247 |
Accrued selling | 1,354 | |
Unrecognized tax benefits | 520 | 357 |
Stock Compensation | 704 | 467 |
State net operating loss | 144 | 130 |
Foreign net operating loss | 79 | 81 |
Valuation allowance | (81) | (211) |
Credits | 48 | |
Total deferred tax assets | 9,349 | 3,969 |
Deferred tax liabilities: | ||
Depreciation | (3,037) | (1,262) |
Intangible asset basis difference | (4,009) | |
Other | (72) | (125) |
Total deferred tax liabilities | (3,109) | (5,396) |
Net deferred tax assets | $ 6,240 | |
Net deferred tax liabilities | $ (1,427) |
INCOME TAXES - Schedule of Net
INCOME TAXES - Schedule of Net Deferred Tax Assets and Liabilities as Classified in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Classification of the related asset and liability | ||
Noncurrent deferred tax liabilities | $ (1,427) | |
Noncurrent deferred tax assets | $ 6,240 | |
Net deferred tax liabilities | $ (1,427) | |
Net deferred tax assets | $ 6,240 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Unrecognized Tax Benefits Excluding Accrued Amounts for Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||
Balance at beginning of period | $ 1,711 | $ 2,442 |
Additions based on tax positions related to the current year | 889 | 373 |
Additions for tax positions of prior years | 473 | 180 |
Reductions for tax positions of prior years | (25) | (61) |
Settlements of tax positions from prior years | (544) | (1,223) |
Balance at end of period | $ 2,504 | $ 1,711 |
SHARE-BASED COMPENSATION - 2015
SHARE-BASED COMPENSATION - 2015 Equity Incentive Plan - Additional Information (Details) - 2015 Plan | Jul. 22, 2015shares | Jul. 16, 2015shares | Jun. 30, 2019shares |
Stock-Based Compensation | |||
Aggregate number of shares available to be issued | 220,723 | ||
Stock split, conversion ratio | 11.139 | ||
Shares authorized under plan | 2,458,633 | ||
Shares available for grant | 1,613,864 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Awards - Additional Information (Details) - Restricted stock awards - 2015 Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock-Based Compensation | |||
Stock-based compensation | $ 913 | $ 616 | $ 321 |
Income tax benefit recognized | 217 | 190 | 121 |
Fair value of vested shares | 713 | $ 434 | $ 240 |
Unrecognized compensation expense | $ 764 | ||
Weighted average period | 1 year 9 months | ||
Minimum | Employees | |||
Stock-Based Compensation | |||
Vesting period (in years) | 1 year | ||
Maximum | Employees | |||
Stock-Based Compensation | |||
Vesting period (in years) | 3 years |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Restricted Stock Awards Activity (Details) - 2015 Plan - Restricted stock awards - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of Stock Units Outstanding | |||
Total Non-vested Stock Awards/Units at beginning of year | 43,310 | 26,417 | |
Granted | 51,995 | 47,651 | 47,131 |
Vested | (33,093) | (25,870) | (18,740) |
Forfeited | (8,408) | (4,888) | (1,974) |
Total Non-vested Stock Awards/Units at end of year | 53,804 | 43,310 | 26,417 |
Weighted Average Grant Date Fair Value | |||
Total Non-vested Stock Awards/Units at beginning of year | $ 17.28 | $ 12.22 | |
Granted | 26.79 | 19.88 | $ 12.22 |
Vested | 21.54 | 16.79 | 18.94 |
Forfeited | 23.08 | 15.89 | 19.55 |
Total Non-vested Stock Awards/Units at end of year | $ 22.94 | $ 17.28 | $ 12.22 |
SHARE-BASED COMPENSATION - Perf
SHARE-BASED COMPENSATION - Performance Stock Units - Additional Information (Details) - Performance stock units - 2015 Plan - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock-Based Compensation | |||
Stock-based compensation | $ 563,000 | $ 355,000 | $ 150,000 |
Income tax benefit recognized | 134,000 | 110,000 | 56,000 |
Fair value of vested shares | 384,000 | $ 0 | $ 0 |
Unrecognized compensation expense | $ 750,000 | ||
Weighted average period | 1 year 9 months 18 days | ||
Certain employees | |||
Stock-Based Compensation | |||
Vesting period (in years) | 3 years |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of Performance Stock Units Activity (Details) - 2015 Plan - Performance stock units - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of Stock Units Outstanding | |||
Total Non-vested Stock Awards/Units at beginning of year | 59,328 | 40,612 | |
Granted | 35,122 | 26,416 | 42,586 |
Vested | (32,373) | ||
Forfeited | (11,456) | (7,700) | (1,974) |
Total Non-vested Stock Awards/Units at end of year | 50,621 | 59,328 | 40,612 |
Weighted Average Grant Date Fair Value | |||
Total Non-vested Stock Awards/Units at beginning of year | $ 14.98 | $ 11.85 | |
Granted | 25.70 | 19.62 | $ 11.85 |
Vested | 11.85 | ||
Forfeited | 19.73 | 14.42 | 11.85 |
Total Non-vested Stock Awards/Units at end of year | $ 23.34 | $ 14.98 | $ 11.85 |
SHARE-BASED COMPENSATION - Nonq
SHARE-BASED COMPENSATION - Nonqualified Stock Option Awards - Additional Information (Details) - 2015 Plan - Nonqualified stock options - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2015 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 10, 2016 | |
Stock-Based Compensation | ||||||
Exercise price | $ 10.70 | $ 10.70 | $ 10.70 | $ 10.70 | ||
Black-Scholes pricing model assumptions | ||||||
Risk-free rate | 1.93% | |||||
Expected term | 6 years 3 months | |||||
Dividend rate | 0.00% | |||||
Expected volatility | 56.70% | |||||
Stock-based compensation | $ 201 | $ 215 | $ 240 | |||
Income tax benefit recognized | 48 | 66 | 91 | |||
Fair value of NSOs vested | $ 215 | $ 215 | $ 253 | |||
Certain employees | ||||||
Stock-Based Compensation | ||||||
Options granted | 137,786 | |||||
Option price | $ 15 | |||||
Vesting period (in years) | 4 years | |||||
Reduction in exercise price pursuant to terms of the plan | $ 4.30 | |||||
Exercise price | $ 15 | $ 10.70 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary of Nonqualified Stock Options Activity (Details) - 2015 Plan - Nonqualified stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Shares | ||||
Outstanding at beginning of year | 93,125 | 116,328 | 122,640 | |
Exercised | (10,563) | (10,905) | (1,578) | |
Forfeited or expired | (1,703) | (12,298) | (4,734) | |
Outstanding at end of year | 80,859 | 93,125 | 116,328 | 122,640 |
Fully vested and exercisable at end of year | 56,556 | |||
Weighted Average Exercise Price | ||||
Outstanding at beginning of year | $ 10.70 | $ 10.70 | $ 10.70 | |
Exercised | 10.70 | 10.70 | 10.70 | |
Forfeited or expired | 10.70 | 10.70 | 10.70 | |
Outstanding at end of year | 10.70 | $ 10.70 | $ 10.70 | $ 10.70 |
Fully vested and exercisable at end of year | $ 10.70 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding | 6 years 1 month 6 days | 7 years 1 month 6 days | 8 years 1 month 6 days | 9 years 1 month 6 days |
Fully vested and exercisable at end of year | 6 years 1 month 6 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at beginning of year | $ 1,700 | $ 1,030 | $ 43 | |
Outstanding at end of year | 719 | $ 1,700 | $ 1,030 | $ 43 |
Fully vested and exercisable at end of year | $ 503 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Operating Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating leases | |||
Lease expiring term | 2029 | ||
Rental expense | $ 712 | $ 666 | $ 603 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Payments Under All Non-cancelable Operating Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Future minimum rental payments | |
2020 | $ 703 |
2021 | 690 |
2022 | 628 |
2023 | 402 |
2024 | 402 |
and thereafter | 1,806 |
Total | $ 4,631 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Repurchase Agreements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Repurchase Obligations | ||
Inventory repurchase contingent obligation | $ 1,936 | $ 1,265 |
Obligation to Repurchase Inventory | ||
Repurchase Obligations | ||
Maximum repurchase obligation under floor plan agreements | 229,744 | |
Inventory repurchase contingent obligation | $ 1,936 | $ 1,265 |
Obligation to Repurchase Inventory | Maximum | ||
Repurchase Obligations | ||
Inventory repurchase contingent obligation period | 30 months |
EARNINGS PER SHARE - Factors Us
EARNINGS PER SHARE - Factors Used in Earnings Per Share Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share Basic [Line Items] | |||||||||||
Net income | $ 21,354 | $ 39,653 | $ 19,570 | ||||||||
Weighted average common shares — basic | 18,658,701 | 18,657,719 | 18,653,111 | 18,646,039 | 18,619,834 | 18,622,083 | 18,619,834 | 18,615,100 | 18,653,892 | 18,619,793 | 18,592,885 |
Weighted average outstanding shares — diluted | 18,658,701 | 18,756,605 | 18,772,322 | 18,768,764 | 18,702,352 | 18,728,424 | 18,702,352 | 18,686,626 | 18,768,207 | 18,714,531 | 18,620,708 |
Basic earnings per share | $ (0.54) | $ 0.68 | $ 0.55 | $ 0.45 | $ 0.71 | $ 0.62 | $ 0.43 | $ 0.38 | $ 1.14 | $ 2.13 | $ 1.05 |
Diluted earnings per share | $ (0.54) | $ 0.68 | $ 0.54 | $ 0.45 | $ 0.70 | $ 0.61 | $ 0.43 | $ 0.38 | $ 1.14 | $ 2.12 | $ 1.05 |
Stock options | |||||||||||
Earnings Per Share Basic [Line Items] | |||||||||||
Dilutive effect of assumed exercises of stock options and restricted share awards/units | 45,799 | 38,835 | 4,488 | ||||||||
Restricted stock awards | |||||||||||
Earnings Per Share Basic [Line Items] | |||||||||||
Dilutive effect of assumed exercises of stock options and restricted share awards/units | 68,516 | 55,904 | 23,335 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock options And Restricted share awards/units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earning per share | 10,681 | 25,908 | 100,247 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) - segment | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 3 | ||
Number of reportable segments | 3 | ||
MasterCraft | Net Sales | Geographical concentration | Outside of North America | |||
Segment Reporting Information [Line Items] | |||
Net Sales, Percentage | 5.20% | 7.50% | 9.10% |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Operating Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 122,809 | $ 128,390 | $ 121,541 | $ 93,641 | $ 95,430 | $ 93,811 | $ 78,435 | $ 65,049 | $ 466,381 | $ 332,725 | $ 228,634 |
Operating income | (11,538) | $ 18,464 | $ 14,722 | $ 11,611 | 18,938 | $ 15,199 | $ 10,782 | $ 11,064 | 33,259 | 55,983 | 33,515 |
Depreciation and amortization | 7,787 | 5,086 | 3,231 | ||||||||
Goodwill and other intangible asset impairment | 31,000 | ||||||||||
Purchases of property and equipment | 14,064 | 5,305 | $ 4,135 | ||||||||
Total Assets | 248,773 | 176,924 | 248,773 | 176,924 | |||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (163,013) | (81,160) | (163,013) | (81,160) | |||||||
MasterCraft | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 311,830 | 266,319 | |||||||||
Operating income | 53,989 | 49,363 | |||||||||
Depreciation and amortization | 3,481 | 3,283 | |||||||||
Purchases of property and equipment | 11,730 | 4,234 | |||||||||
MasterCraft | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | 273,046 | 170,218 | 273,046 | 170,218 | |||||||
NauticStar | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 77,995 | 66,406 | |||||||||
Operating income | (27,785) | 6,620 | |||||||||
Depreciation and amortization | 2,684 | 1,803 | |||||||||
Goodwill and other intangible asset impairment | 31,000 | ||||||||||
Purchases of property and equipment | 2,069 | 1,071 | |||||||||
NauticStar | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | 52,761 | $ 87,866 | 52,761 | $ 87,866 | |||||||
Crest | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 76,556 | ||||||||||
Operating income | 7,055 | ||||||||||
Depreciation and amortization | 1,622 | ||||||||||
Purchases of property and equipment | 265 | ||||||||||
Crest | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | $ 85,979 | $ 85,979 |
QUARTERLY FINANCIAL REPORTING_3
QUARTERLY FINANCIAL REPORTING (UNAUDITED) - Summary of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 122,809 | $ 128,390 | $ 121,541 | $ 93,641 | $ 95,430 | $ 93,811 | $ 78,435 | $ 65,049 | $ 466,381 | $ 332,725 | $ 228,634 |
Gross profit | 31,493 | 31,357 | 27,074 | 23,203 | 27,885 | 24,382 | 19,934 | 18,163 | 113,127 | 90,364 | 63,476 |
Operating income (loss) | (11,538) | 18,464 | 14,722 | 11,611 | 18,938 | 15,199 | 10,782 | 11,064 | 33,259 | 55,983 | 33,515 |
Net income (loss) | $ (10,062) | $ 12,763 | $ 10,188 | $ 8,465 | $ 13,144 | $ 11,454 | $ 8,009 | $ 7,046 | $ 21,354 | $ 39,653 | $ 19,570 |
Basic earnings per common share (loss) | $ (0.54) | $ 0.68 | $ 0.55 | $ 0.45 | $ 0.71 | $ 0.62 | $ 0.43 | $ 0.38 | $ 1.14 | $ 2.13 | $ 1.05 |
Diluted earnings per common share (loss) | $ (0.54) | $ 0.68 | $ 0.54 | $ 0.45 | $ 0.70 | $ 0.61 | $ 0.43 | $ 0.38 | $ 1.14 | $ 2.12 | $ 1.05 |
Weighted average shares used for computation of: | |||||||||||
Basic earnings (loss) per common share | 18,658,701 | 18,657,719 | 18,653,111 | 18,646,039 | 18,619,834 | 18,622,083 | 18,619,834 | 18,615,100 | 18,653,892 | 18,619,793 | 18,592,885 |
Diluted earnings (loss) per common share | 18,658,701 | 18,756,605 | 18,772,322 | 18,768,764 | 18,702,352 | 18,728,424 | 18,702,352 | 18,686,626 | 18,768,207 | 18,714,531 | 18,620,708 |