Company: MCFT
Filing Date: 2025-08-27
Form Type: 10-K
Source: 0000950170-25-111682
Chunk: 13

Company: MasterCraft Boat Holdings, Inc.
Filing Date: 2025-08-27
Form: 10-K
Item: Item 6
Chunk 13
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      (220) bps

   Net Sales. Net Sales decreased 11.8 percent for fiscal 2025 when compared to fiscal 2024. The decrease was a result of planned lower unit volumes and changes in price, partially offset by favorable model mix related to new product introductions, favorable option sales, and decreased dealer incentives.

24

Gross Margin. Gross Margin percentage declined 220 basis points during fiscal 2025 when compared to fiscal 2024. Lower margins were the result of lower cost absorption due to decreased production volume, material and overhead inflation, and changes in sales price.Operating Expenses. Operating expenses increased 3.4 percent during fiscal 2025 when compared to the same prior year period mainly due to increased variable compensation costs.Interest Expense. Interest expense decreased $2.1 million primarily due to all outstanding borrowings under the Credit Agreement being repaid during the first six months of fiscal 2025.Interest Income. Interest income decreased $2.3 million during fiscal 2025 primarily due to certain investment securities being sold to repay outstanding borrowings under the Revolving Credit Facility during the second quarter of fiscal 2025.Income Tax Expense. Our consolidated effective income tax rate decreased to 20.8 percent for fiscal 2025 from 22.5 percent for fiscal 2024. See Note 10 in Notes to Consolidated Financial Statements for more information.Segment ResultsMasterCraft SegmentThe following table sets forth MasterCraft segment results for the fiscal years ended:

     (Dollar amounts in thousands)
      
     2025

     2024

     Change

     % Change

     Net sales
      
     $
     240,763

     $
     262,736

     $
     (21,973
     )

     (8.4
     %)

     Operating income

     20,658

     29,573

     (8,915
     )

     (30.1
     %)

     Purchases of property, plant and equipment

     7,219

     7,912

     (693
     )

     (8.8
     %)

     Unit sales volume

     1,548

     1,755

     (207
     )

     (11.8
     %)

     Net sales per unit
      
     $
     156

     $
     150

     $
     6

     4.0
     %