MCFT - Earnings call transcript Q3 2022 | MasterCraft Boat Holdings, Inc.

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Operator

Thank you for standing by and welcome to the Third Quarter 2022, MasterCraft Boat Holdings, Inc. Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions].

program recorded. today's reminder, a may be As And today's Officer. program, like to host for introduce your Tim now I'd Oxley, Chief Financial go ahead, Please sir.

Tim Oxley

us XXXX. and you MasterCraft's Operator; everyone. quarter today joining third fiscal you, discuss as for Thank performance we welcome, for Thank

today's being webcast reminder, be will live listening. future is website our on for call a and also As archived

quarter. the with I our Q&A. for open Chief Joining turn back Chairman; and and highlights will me performance Executive Revenue Fred third we Chief Officer. Officer on of today's Brightbill, call then a discuss will the for Fred quarter. the financial our to from some for begin Steinbarger, before call will operational are closing our remarks Then, I review Fred the call George

that to we'd contained in that statements. statements, of subject disclaimer today, Statements today's begin, like information forward-looking statements harbor call current company participants press to The update historical are obligation XXXX. and the not remind to assumes only safe the is we no release. any May as facts this are in forward-looking Before including XXth,

not Additionally, of call, on discuss items would measures our include this or or special ongoing we that operations. exclude non-GAAP conference indicative

our deck call our also results that website. would slide our the I'll is measure, the summarizing also that, results. release, non-GAAP to XXXX third these turn Fred. We the which of over comparable most financial listeners Investors like quarter includes directly GAAP measure each For we measures to section non-GAAP earnings in With provide remind in a to GAAP our fiscal ' a of reconciliation there

Fred Brightbill

for joining Good morning, everyone. us today. you Thank

the The record-setting for gross made year-over-year. work against our share, as we third and well consecutive extremely delivered of any our a a execution organically net fifth as our by we the determination represents challenging the operational earnings grew quarter company's EBITDA the environment momentous for earnings This and team quarter our and this performance year-over-year per history. Our These possible. than in strategic reflect adjusted consecutive net exceptional sales priorities continuation highest adjusted diluted of results we business quarter hard of we profit, XX% delivered sixth adjusted performed during growth sales sales, diluted Impressively, in share the per XX% more net more nearly quarter. the achievement by than phase of of grew XX%. and

These robust COVID work-in-process described once labor continuing during production production quarter. quarter, and of record created higher-than-expected finished our across sales revealed delays not has lower retail with summer low. that additional cost this of combined keeping challenges the shortages, the shutdowns, has constrained costs continuing boating sales another inventories our typically resulted too and historic combined is the for costs dealer brands independent environment our associated experienced temporary, into are we dealer in our availability largely but limited and and production product we the to disruptions. head our created significant the for our with delay unit conversion and a inflation inefficiencies goods margin environment. significant, Logistics inventory the suppliers with Constrained was The lows constraints earnings at of being capacity the higher brands. due normal and Low An survey those and achieved during including quarter but industry, combined our products for we quarter chain the production meet in in year. labor most and with demand dealers supply production -centric survey the quality inventories consumer shipments Driven industry. headwinds. inventory COVID challenges strategy, believe in as of in our component Although again resulted to by time These prioritizing the season. disruptions as retail caused constrained net intermittent challenges we and growth across to widespread have over demand strong scarcity at

no lower and survey our the of any at our of down X%. fiscal compared in XXXX, high, described inventories third end dealer as brands and While too dealers for year-over-year XX% inventories by quarters XXXX respectively. the third the by When inventories end XX% the dealer were were the of of to quarter

we retail believe remain limiting optimistic the consumer product sales, we Although availability about of demand. is sustainability

in generated structural record acquisition at the in strong that to in Activity since industry's levels. system. new choose how stock -- to expansion and attended Marine with continue demand recession. consumer Manufacturers of live, changes As shows evolve, expect of the have on Association or us boat addressable preferences not still by people allowed for market, work, that we represents will regeneration brands. persist. their great view of in XXX,XXX retail-sold awareness entrants This our there all years leading boat lifestyle orders our brands seen and and to greater on National support report our our in capitalize across and levels consumer and buyer our boating the interest the a lifestyle levels our consecutive recent where driving to the at consumer before great XXXX have dealers strong two consumer that recreate par first-time XXXX reported by a boat The Investments is the boating NMMA,

be with confidence visibility expect As continuing levels. face the in by sometime it demand uncertain disruption, This in in backdrop. our provides XXXX macroeconomic of an constrained fiscal reach of rates a result dealer us and optimal robust production inventories supply before wholesale growth will chain we

and received pursuit of of human excellence, the Index being in operational the recognizes excellence and execute We the success strategic the industry We voted acknowledgment customer In of will highest of priorities; boat as consumer marine Manufacturers in satisfaction. each strategic experience, quality. consumer manufacturers our the remain development. The the announced for We most capital sustainable, manufacturer. recently determined National continue for to the growth progress accelerated by on consumer-focused driving satisfaction objective consumer four Customer marine attain acquisition, recreational CSI overarching to who recipients by on Award award annual February, XXXX of Association consumers. the levels of focus our Marine Satisfaction an

This this We Crest. year once Crest MasterCraft received consecutive again, that and proud are that third MasterCraft award. received this for and consecutive has the the year XXth honor is

me review Let developments of across latest brands. the briefly our some now

expect which record reflect category MasterCraft to sales each December production as sequentially states three by data ongoing market fiscal model industry. period performance and And basis the MasterCraft ramp product powerboat investors all SSI compared sales production Our remained XXst, while performed share efforts the each result while preliminary due versus fastest basis brand to is cost third results market in fiscal the we According of and we has over of the continued time rolling highest XXXX our to we one increased a not availability MasterCraft the year number this during $XXX is growing best-in-class to part margin month strength quarter brands XX to key the quarter previewed XXX its March quality and points market in all competitive leverage mitigate This strong between fiscal chain the the competitive for is most of this increased be uncompromising at maintaining disruption. brand solidifies market closest to share. MasterCraft's our XX three despite quarter quarter the of continuing quarter out. recent and The and sold call. as in data grew record share of share that XXXX, net impacted slots to out as XXXX and points. year of supply operating growing reporting MasterCraft closest team up levels second producing production ended during are limited brands. to MasterCraft production and This XX ability on rolling model standards yet, the official month success million quarter. when fourth our retail well MasterCraft's extraordinary the volume during tremendous the shortages a

performance, be MasterCraft foot the pounds experience, engine Boat which XXXX, unrelenting MasterCraft to including available innovation, of the only year been horsepower, dealers option XXX the of Miami boats boat consumers. which and liter in launch four which followed history emphasis by by engine Show XXXX. XXX torque, that powerful new the model competition. model beginning most We will aggressive This its supercharged of have tow from year the in and MasterCraft on changes year exciting X.X in up highlights one differentiates consumer world model For the in on addition success the our the incredibly sport unveiled well received announcing most at International

a safety workforce Finally, I would milestone. like to recognize attainment of major MasterCraft's

During surpassed without the million worked MasterCraft quarter, lost a time hours X incident.

of having continued add days core we without delivering boats. a to lost and for commitment an achievement X.X this salute in unrelenting more onto values showcases We and essential our this world-class tow impressive incident. today, building outstanding record, XXX MasterCraft's time safety sport attained As to have million safety, workforce hours element than our This achievement. of

margins basis XX% set acquisition our the December reporting in margins top-line recent ability which share period At the the quarter. Crest which by compared a Crest and of quarter while states drive success by third XXXX, market chain consultants data, party been operational environment augmented a sales third XXXX, units XX-month February. achieving operational remained production our earnings sold nearly at resulted turnaround delivered by the most heavily supply fiscal record not driven Crest, quarter model Functional pace increased in as to Aviara, improvements. ramp-up labor impacted the during onto ramp details accelerate consecutive gross a has net points. quarter in to up a XXXX market the were to change are and gained momentum slots disruption facility which shipped exceptionally Crest's meet MasterCraft consumer shared our sales, the additional Crest driven progressed strategy. all NauticStar, constraints ended At sales fifth to any record-setting that leadership year-over-year, More at history. third Aviara's rolling the of on and the overhead quarter calls. Crest deployed as XX strong be progress have and The units growth of for our increase Merritt to Crest quarter production when to will generate XX% retail in on performance growth robust have out. most Island we According continue the up this and XXst, in during created primarily Now, all of production XXX% from which in continue units. the SSI value-enhancing plan share expectation leaders net increased and future Merritt highlights plans have meets demand. year new also the demonstrates by increase XX%. due increase profitability. for near-term to another Aviara's XXX%, quarterly of about company's shipments. in in a margin a strong dilutive limited challenges will facility NauticStar's to Island by ramp-up impact

expect production fiscal for the the improve revenue into to future models accelerated Furthermore, the position finish new continue margins XXXX and as steadily increase margin we However, in to introduction growth. brand fiscal Aviara's of will we near XXXX. and and

by $XXX facility Aviara points XXst, the million of to XXXX, share period ended According continue December at all We SSI -month capacity XX will of Aviara states market least reporting annual XXX recent time. increased support to the sales as data, our rolling most track at record-setting basis XX share over the market the the XX continue Boats We're remain market very performance fiscal industry-leading XXXX on with We company share. to pleased despite a many sales while overall challenges industry. and of growth premium in of to foot sustain the segment. Day gaining the facing net organic for anticipate

to over provide year as into and on the financial now Tim? of who the more fiscal will We success head XXXX. that expect wrap results. we up Tim build turn our I color on will call to

Tim Oxley

at higher XX.X% were net record option a line, favorable $XXX.X unit looking was due Fred, million million to year third Thanks, higher or the sales, sales $XXX.X for This for wholesale increase million, top to an volume. the the increase prices, model higher compared quarter $XX.X period. and mix, prior of

This higher company's for million the and the mentioned, $X.X Fred period, quarter profit to the quarter was As favorability disruption. year million for inflationary principally this by most in sales. supply chain input inefficiencies profitable by offset history. partially the to by compared net pressures prior was $XX from costs, driven $XX.X increased higher production Gross million driven

the for points drove as inflationary the chain period. these higher. was of and higher compared result margin production decrease our particularly Price basis input increases Lower disruptions were for for costs of at XX X% to or manage points quarter. XXX we supply any approximately second margin sales, year company prior of increased that sequentially gross to SG&A, margins, public offset decrease the gross quarter, the a NauticStar, million were XX.X% Our for and a limited pressures was, the quarter basis the a $XX.X by XXX,XXX since again, becoming from costs prior once Operating our quarter compared of as a continue percentage expenses prudently the lowest cost. net quarter, year period. to partially as

Adjusted per increased to record compared share more offset third other inflationary MasterCraft, using effective $X.XX computed which on tax year diluted $XX.X quarter $XX.X in and of by supply for prior improvement or challenges. $X.XX XX%. each for Adjusted of EBITDA were bottom and period. margin higher million than our segments the disruption, an quarter year-over-year chain million the margins to NauticStar net impacted impact company's This operational NauticStar income EBITDA the the or net $XX.X for rate approximately $XX.X a a except the Turning to heavily million Dilutive adjusted margins Aviara. was from prior period. compares to at million Crest, estimated per pressures income was the of year annual for record adjusted diluted the line, share

of result for adjusted period. for XX.X% consolidated XX.X% As adjusted margin was a our third down quarter, prior net, EBITDA from the year the

has work-in-process availability sheet, nearly ended with to was of facility. balance $XX WIP of production, adjusted inventories the our of of material $XX disruption we we quarter our credit conversion revolving liquidity the supply safety on to Working cash under million higher $XX by ended goods. outstanding and million finished million more primarily net than to by our increased by million and $XXX driven fiscal increased increased million, quarter leverage more capital the debt and basis. times chain than delayed EBITDA and due including to total we stock of This raw during year-to-date, Turning with year-to-date. the trailing $XX.X Fiscal XX-month reduced mitigate X.X

unprecedented our repurchase performance, we Because our June stock operating than recent This our in Given stock XXXX. the split approximately a standing year-to-date. $XX we now, XXX,XXX visibility common currently financial value believe to million XX% program have, results, authorized recent more we represents, and shares of wholesale of represents prices. our nearly of view, of million of $XX.X fiscal this

long-term prioritizing to opportunistically and continue the through to expect financial return investments resiliency high program, return to while that cash in business create We shareholders value. the shareholder

demand, and sales guidance retail strong operating our our Looking continuing forward, strength wholesale the we unprecedented again year net raise for of full the performance, on once visibility.

can the to remain to chain challenging and expecting inflationary production supply expertly navigate team margins. to our inefficiencies believe our pressures to environment, continue we we the are weigh and While constrained continue

their will to consumers inflation previously We is summer recent expected Ukraine-Russian partially geopolitical heading the continue being events prioritize driven including Higher season. boats war. the by delivering into than

inflationary and up fiscal our Because consolidated expect range. margins the to growth XX% XXXX, of supply operational in challenges in high chain is we with For pressures net expected be NauticStar, to the EBITDA range. be disruption at XX% the full-year sales adjusted combined

the year-over-year. delays and $XX expect our chain are the disruptions, per year. growth up million by driven Due for earnings expenditures lowering XX% adjusted in project we estimate labor be to to capital share range We to supply

in of improvements the minimal environment remainder assumes fiscal supply guidance year. the chain for Our

headwinds, supply With Fred. record we the delivering to will turn the and are for and chain another now confident shareholders. I profitability year our back call

Fred Brightbill

Thanks, Tim.

We year-over-year. to growth industry disruption increase supply for industry, pace levels chain by we of Despite production execution, record-setting are again, gains. in by share fiscal leading net market severe pleased the once our and faced exceptional organic resulted XXXX. managed definitely sales This the

lead strong seeking from for to continued We lifestyle demand our and growth expect boating endow to the consumers company.

to manage creation we we value unprecedented stakeholders. business and through shareholders dynamic our As environment long-term committed for all remain near-term, and an

a business vendor and people. Operator, for partners, to questions. will to dealer the now We may be and our continue committed purpose-driven consumers, line open you

Operator

gentlemen, have if Ladies Instructions]. this a you and question time, at [Operator

If your yourself question has [Operator move from Instructions]. been answered and you'd like the to queue,

Our first Raymond question line the from comes of James. Joe Altobello from

please. Your question,

Joseph Altobello

morning. Good guys. Thanks,

not commentary trying supply surprise. morning on First chain, question, this to the understand a

Your in and margin the key well I and EBITDA were slightly sales at because look at my results I I quarter above estimates if the look at look above. guidance, model

like supply deal but a maybe of in worse got the sounds it weren't May. early So and big that perhaps April issues chain quarter, in

help XQ? the So me understand delivered what you morning for this versus commentary

Fred Brightbill

disruptive our supply guidance, met created we chain While inefficiencies. and the was

while But a the it's month pleased last got mistake, quarter. or so, was we continue make we're delivered no guidance. bit the very so, we And that on challenges the those and been chain and supply meet intermittent, during to it's worse disruptive in

Joseph Altobello

Okay. I particular it's one windshields, it know bit about sounds little past. areas? But Is and area, guys misinterpreting I worse. NauticStar, have and screens a things specific widespread? or largest did that? the Any like get like in pretty at And engines, it is it it computers you am or talked

Fred Brightbill

during disruption items, a different well No, can it's -- engines move well other we they whole it solve that and on, but to problem the it MasterCraft, not to been tend at affecting the items, MasterCraft like In NauticStar, as products, across range period. of creates as NauticStar. be items it's certainly tend significantly and a as as but

And or or though, it's tanks, not items engine times. different It's variety whole been of any variety of So more supply. or like different it's in one windshields, case a It's screens, items. a MasterCraft's not at item.

Tim Oxley

has that chip pressures is in is inflationary a and to subject likely certainly disruption. Anything it have to

Joseph Altobello

Okay.

guess, the it those facilities on to in the parts and manufacturing side it from for suppliers, logistics components side the is one one both? Just more last getting more in or me. is I or

Fred Brightbill

side, on but disruptions. tend manufacturer's intermittent challenges. the those certainly, short-term It's more been have there to be logistics But again,

Of and chain. ripple China the has effect the so with on on course, lockdowns supply through going what's in a

hard have help their to source so sometimes And to them with work our components. we suppliers

Tim Oxley

have that Yeah, disruption. chain on And inefficiencies in spend than we past. supply one with on logistics side, associated more the of the the certainly, freight the we've expedited is

Joseph Altobello

you, Thank guys. Great. Okay.

Fred Brightbill

Joe. Thanks,

Operator

you. Thank

question next Baird. Craig line in comes of Our the from Kennison

Your question, please.

Craig Kennison

Hey, I good taking understand Thanks questions little bit for better. well. morning. as my trends to demand I guess wanted a

I think you out are first year? of this said brands. of you sold sold for brands some all, out of you Which were model

Fred Brightbill

in out Sold all brands.

Craig Kennison

All brands.

at you taking deposit guess, deposits then, putting or you -orders are Okay. future you point down are And do on years? -- pre this -- model taking, I

Fred Brightbill

will No, of on we all model which pricing those shortly we happen start are them not orders are most have them. that Having said sold of orders. that retail year, at but released booking yet out the that, so point XXXX not booked, will of

opportunity So the year. convert some within quarter stock to would've delivery order been a to and have what model still dealers this give consumer a

Craig Kennison

[Indiscernible]

Tim Oxley

you Craig, Sorry were saying? what [Indiscernible]

Craig Kennison

No, go ahead.

Tim Oxley

would as the for I closest strong was upcoming action leading far as dealers with very discussions really demand the year. of our buy is the having what and to are the the consumer they our demand. demand indicator is gonna they say, that fiscal like And to on

'XX. So indications for demand of very strong fiscal

Craig Kennison

perspective, all [Indiscernible]? a are that are of -- boats for? spoken From sense. those they consumer makes that So or Is

Fred Brightbill

All XXXX? of which boats?

Craig Kennison

Yes.

Fred Brightbill

No. all sold. retail They're not

convert to be in have dealers order. the a order would've still specific opportunity to stock consumers to So their what able been some

Craig Kennison

Got it.

Okay.

Tim Oxley

higher even retail boats retail though mean, so it's And a not normal. the are sold. that's than disproportionate I sold, number they're all -- of

Craig Kennison

sense. Makes

like I'm And how the and everybody prepare and the of the I Okay. for part reading your would a potential business else love guess inevitable seems business newspaper on what then cycle. just your perspective like recession you for an

Fred Brightbill

new our spending what to our are of strategic that having management we're a the and results pillars some brand. and to the making we're been about of and introductions if In experiencing models, our up up this models, so. Well, lead aggressive the now will acquisition our part investments introduction continue year we product do of end in smaller big there completed building and we're we we've doing and beefed the marketing build the continue large line way that you think models, to in dealer very of capabilities of a well, money fairly and recent think

that broad head near-term, a the that make So mistake, have position points we're upgrading, training price dealer positions investments no but future. we structure And still markets us undeserving a that's like and the well. variable for and international. to into as remember, quite in underlying expansion us And spectrum cost in very are there making today going well of distribution, very relatively and we're we

George Steinbarger

-- add, look would we we right somewhere are levels, I around inventories if the XXXX I and where Craig, think XX% stated in dealer remarks, at prepared And you our inventory quoted levels. historical down as from our to XXXX relative

been better a downturn. economic an business never has Our whole positioned to as withstand

ability we the retail. a wholesale at have still with significant produce in So decline even to

sure insulate us have at So the us deliver too because we'll got don't back basket, to but much ability and empty to obviously a that an the wholesale. where it does give such ever we've channel in situation to we go continue inventory we make

Craig Kennison

don't the We've whether guess, if you've trends demand Thanks, curious a if being any lastly, just markets, of May you noise recent in April but George. about on a I'm what of heard in like evidence based economic some of seen headline. curious some I in slowdown terms post-quarter? some factor you've mind, yet seen and

George Steinbarger

that haven't. the we we're from dealers the no impacted delivery of shipped, not of we're to delivery seeing hearing obviously, I orders We consumers take have commitments that is any boats from think mean, or what longer weather but has boats. the I some

consumer the to think and they they to boating how family. structural spend people our be demand. end remain healthier from continues of things but time canceled. with any work the consumer, boat very and or weather lifestyle. any are those We to very some overall heard just our orders The overall, living us. to delayed more remain reasons think demand has seen We not strong interested their where If the position but and delivery We tend about perspective, choose not all the consumer anything, the So behind we've the of strong. in of being still the talk is impacting

Fred Brightbill

was in about an week to Wall migration specifically article there particular, of be a and talking over rural boat-centric XX Craig, interesting last moving to that a areas, in to Journal very people Street the group, area. group, which obviously tends wealthy

So areas country high they right around the into and migration, our were targeting the of it plays strengths.

Craig Kennison

Thank Perfect. you.

Fred Brightbill

Welcome.

Operator

you. Thank

next line of question from Mike Swartz the Securities. Truist Your from comes

Your question, please.

Michael Swartz

morning. guys, Hey, good

with first maybe point clarification. Just a -- start of off just

I think that in brands maybe, that in all what remarks, up the for I year-over-year EBITDA except third your for margins had you NauticStar. quarter Is Fred, were indicated heard?

Fred Brightbill

Yes.

Michael Swartz

Okay.

that appear follow-up mean actually So NauticStar's would Is guess that I revenue, of tell -- I NauticStar but consolidated I your lost that. the money it just the a a math XX% me quarter. that fair to observation? guess, The -- would in

Fred Brightbill

that's true. Yes,

Michael Swartz

new did as particularly diagnose leadership some have you related -- forward? Okay. maybe issues worse the And engines, pertains there, what's know supply but what I to I did but I strategic things NauticStar, maybe, And the coming through in, know there's to progressively get there it and going plan quarter? in is happened guess just things

Fred Brightbill

company business, it themselves. was that and didn't subsidiary the the thin systems company a of a sole frankly we converting was It operation. kind the improving do ramped that on something to be at of proprietor a and acquired existed is good initially. of was we public essentially focus that very on company job fundamental a the production We imploded up Well,

the rebuild well the that systems doing able in it, involved process what operating we to do now been And that leadership the we in our to have that's we've as didn't strongest We Thought resources. we function-by-function ground from so fundamental be to as external so made and turns change. some we have right leader up there out all there. doing had

on change quarter. So undertake it's of and that you better And third the been in course, made business those. a and it before that's what you when some the activities uncover we're up rebuilding ground doesn't focused always because quarter rocks the those sometimes bootstrap the we've of get activity during deal talking with about, was

Michael Swartz

the has back operational acquired, Right. absolutely it the was is flat back Is then. that it look begin etc.? a certainly and it part I the think, years company. that supply consider But where five as time fit against alternatives? versus strategic appreciate when to I in And point every about company maybe there worth Does revenue I was environment I public is has a company, basically you where was mean, think portfolio? gone NauticStar it I chain with being and ago of

Fred Brightbill

evaluated management are alternatives All Board. the and considered by the as well by as

Michael Swartz

just specifically pricing as question some forward, I color add another your It strategy -- you next more talked months. your off-cycle about you maybe or kind are and -- of into you Model you move pricing maybe Year just you or of guess quickly, sense have guess about increases? considering are -- I the And you. Thank just you Okay. 'XX, quarter, think over XX the went in through sounds or you like price so something March going how mid-cycle

George Steinbarger

Yeah, hey, Mike. It's George.

our I increase. dealers to have end preference, the consumer implement mid-cycle and a to preference this goes not well, is So for think as strong -- the and price

Xst the for try of be to into to July work that our and what for and of to our So time material our we're labor a for model doing a try is effective team estimate going price with and inflation to spending partners lot bake here year all our internal our and vendor brands. of increase lot all upcoming of this

obviously to very we're end So It best focused and as possible. lot that so the we're on nailed we make with get to to on do avoid of both everything we that the disruption and internally, anything that creates do but going having a to delivering -- mid-cycle. can as consumer, down sure now doing work

Michael Swartz

you. Okay. Great. Thank

Operator

[Operator you. Instructions]. Thank

B. Riley. from comes Our Eric from Wold next the question line of

please. question, Your

Eric Wold

will follow-up trying there, maybe Thank need? questions, on guess. to push switch some you. through everything not you've consumers the Brunswick can order made get book to to Knowing logistics? accept, that NauticStar. Good that how I you engine or and if One the to quickly the have back A looked morning. just you is How your into know the this you of I be the and been how Yamaha to ramp accepting engines, of Mercury what that get you're of couple side. on but you'll dealers the into able configuration, likely up to offset you

Fred Brightbill

they have recently Having not of just They've job engine source. of their expected many to of but of never of offerings. are production as up done increase a top can to Well, but all output. ramped customer, was their modifications And volume a committed Crest, that made many and long-time their proportion time a be that has become on of said new chain. capability. growing products that that, they of engine customers Mercury food strong as the fantastic over for dominant secondary Mercury Mercury constrained a supporting are very in necessarily We the you terms imagine,

getting very more to the in that of So offshore. limited their from that Mercury us has issues again, recently, a recent alternative of having extensions more been is much to due some components

problem. having So [Indiscernible] it's with again, Yamaha it relates to not said up, primarily, back that, as it

Eric Wold

Got it.

in to levels QX. than I'm you [Indiscernible] much to be shipping between means better producing I As expected for further record, that on back historically, producing supply could you the record there also be buildup the by looking it mean I fourth make comment quarter, chain at so in guess, made, happen. there assuming ability of you risk changed at guess and when what was a that or QX a your that. production just that And is does record a or MasterCraft that for say QX because of MasterCraft

Fred Brightbill

Expect it dimension choose down a hands quarter record by. to whichever measure you in

marginal said chain that's fighting way the and been our been that and without And we've improvements, and come so, we've accept. increase, the marginal stair of as some supply Having disruption, we've it's not but to improvement volume. a that that able scrambles step to something expand seen enough to that, made life, adapt etc.,

we was supply disruptions. it So, last year hard really hit quarter remember, the by if you when fourth got chain

already fourth to compared increase it's from an the but comp, expect quarter. we're confident sequentially, significant We're So year quarter. about fourth to last is that, third quarter seeing that this year also the something absolutely very easier committed and very the we feel

Tim Oxley

in Keep -- mind

Eric Wold

Got it.

Tim Oxley

basis, model volume on up -- -- We're this almost Eric XX% at unit is year-to-date in MasterCraft. our Tim.

quarter going committed -- sequentially supply nice we've overcoming fourth for -- the fiscal chain another the deliver we're record fiscal had challenges on quarter-to-quarter, of So increases to and quarter year. of our to to we're

Eric Wold

both. you Thank Perfect.

Fred Brightbill

welcome. You're

Operator

Thank the your today's you. conference. just for today's This conclude question-and-answer participation. as ladies and gentlemen, of as program, Thank you, session well

may now day. Good disconnect. You

MasterCraft Boat (MCFT) 11 May 222022 Q3 Earnings call transcript