# MasterCraft Boat Holdings, Inc.: Form 10-Q for the period ended Mar 30, 2025

- Company: [MasterCraft Boat Holdings, Inc.](/companies/mcft.md) (CIK 1638290)
- Form: 10-Q
- Filed: 2025-05-07
- Accepted by EDGAR: May 7, 2025, 09:47 ET
- Period: 2025-03-30
- Accession: 0000950170-25-065151
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1638290/000095017025065151/mcft-20250330.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1638290/000095017025065151/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2024-12-30 to 2025-03-30 | $76.0m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months, 2024-07-01 to 2025-03-30 | $204.7m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2024-12-30 to 2025-03-30 | $60.2m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months, 2024-07-01 to 2025-03-30 | $166.2m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2024-12-30 to 2025-03-30 | $15.8m | us-gaap:GrossProfit |
| Gross profit | 9 months, 2024-07-01 to 2025-03-30 | $38.5m | us-gaap:GrossProfit |
| Operating income | 3 months, 2024-12-30 to 2025-03-30 | $4.1m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2024-07-01 to 2025-03-30 | $5.3m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2024-12-30 to 2025-03-30 | $0 | us-gaap:InterestExpense |
| Interest expense | 9 months, 2024-07-01 to 2025-03-30 | $1.2m | us-gaap:InterestExpense |
| Income tax | 3 months, 2024-12-30 to 2025-03-30 | $1.1m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2024-07-01 to 2025-03-30 | $1.5m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2024-12-30 to 2025-03-30 | $3.7m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2024-07-01 to 2025-03-30 | $1.3m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2024-12-30 to 2025-03-30 | $0.23 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2024-07-01 to 2025-03-30 | $0.08 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2024-12-30 to 2025-03-30 | $0.23 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2024-07-01 to 2025-03-30 | $0.08 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2024-12-30 to 2025-03-30 | 16,540,345 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2024-07-01 to 2025-03-30 | 16,554,235 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2024-07-01 to 2025-03-30 | $15.1m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2024-07-01 to 2025-03-30 | $6.6m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Share repurchases | 9 months, 2024-07-01 to 2025-03-30 | $5.2m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-03-30 | $28.5m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-30 | $124.0m | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-30 | $261.9m | us-gaap:Assets |
| Current liabilities | at 2025-03-30 | $68.4m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-30 | $79.6m | us-gaap:Liabilities |
| Long-term debt | at 2025-03-30 | $0 | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-03-30 | $0 | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-03-30 | $182.1m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 27,385 characters.

*The following discussion and analysis should be read together with the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. In addition, the statements in this discussion and analysis regarding our expectations concerning the performance of our business, anticipated financial results, liquidity and the other non-historical statements are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above and in “Risk Factors” set forth in our 2024 Annual Report. Our actual results may differ materially from those contained in or implied by any forward-looking statements.*

*Certain statements in the following discussions are based on non-GAAP financial measures. A “non-GAAP financial measure” is a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with U.S. GAAP in the statements of operations, balance sheets or statements of cash flows of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Non-GAAP financial measures do not include operating and statistical measures. The Company includes non-GAAP financial measures in Management’s Discussion and Analysis, as the Company’s management believes that these measures and the information they provide are useful to users of the financial statements, including investors, because they permit users of the financial statements to view the Company’s performance using the same tools that management utilizes and to better evaluate the Company’s ongoing business performance. In order to better align the Company’s reported results with the internal metrics used by the Company's management to evaluate business performance as well as to provide better comparisons to prior periods and peer data, non-GAAP measures exclude the impact of purchase accounting amortization related to business acquisitions.*

### Overview

### Discontinued Operations

On October 18, 2024, the Company completed the Aviara Transaction and on December 23, 2024, the Company completed the Aviara Facility Sale. In fiscal 2023, the Company sold its NauticStar business. The Company's results for all periods presented, as discussed in Management's Discussion and Analysis, are presented on a continuing operations basis. Results related to our Aviara and NauticStar reporting units are reported as discontinued operations for all periods presented. See Notes 1 and 3 in Notes to the unaudited condensed consolidated financial statements for more information on discontinued operations.

### Upcoming Leadership Transition

On April 7, 2025 Timothy M. Oxley, Chief Financial Officer (“CFO”) of the Company, announced his retirement from the Company, effective December 31, 2025. Prior to his retirement, Mr. Oxley will step down as CFO, effective June 30, 2025, at which time, Mr. Oxley will serve as a Special Advisor. Scott Kent, Vice President of Finance, will succeed Mr. Oxley as CFO, effective July 1, 2025.

### Tariff and Trade Environment

The recently imposed U.S. tariffs did not materially impact our third quarter results, but their effects and the potential imposition of modified or additional tariffs may, among other things, create new trade barriers that disrupt supply chains, raise costs, weaken consumer confidence and impact consumer demand for our products, and impact our ability to export our products, all of which could have an adverse effect on our business and financial results. The extent of the impact of tariffs on the Company’s business is highly uncertain and difficult to predict. While we anticipate a modest impact from tariffs on our fiscal 2025 costs, we are closely monitoring the rapidly evolving tariff landscape and are working diligently with key suppliers to mitigate risks. For additional information regarding the potential impacts of tariffs on our business and results of operations, see “Part I, Item 1A. Risk factors” in our 2024 Annual Report.

### Results of Operations

We continued to navigate market and economic uncertainty during the third quarter of fiscal 2025 and expect this trend to continue through the end of our fiscal year. Net sales decreased primarily due to planned lower unit volumes to align dealer inventories with retail demand. Gross margin declined due to lower cost absorption driven by decreased production volume.

### Results of Continuing Operations

### Consolidated Results

The table below presents our consolidated results of operations for the three and nine months ended:

*(Dollar amounts in thousands)*

| Consolidated statements of operations: | Three Months Ended March 30, 2025 | March 31,% 2024 | 2025 vs. 2024 Change Change | Nine Months Ended March 30, 2025 | March 31,% 2024 | 2025 vs. 2024 Change Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| NET SALES | $75,960 | $83,977 | $(8,017) (9.5%) | $204,687 | $268,032 | $(63,345) (23.6%) |
| COST OF SALES | 60,195 | 64,385 | (4,190) (6.5%) | 166,232 | 205,026 | (38,794) (18.9%) |
| GROSS PROFIT | 15,765 | 19,592 | (3,827) (19.5%) | 38,455 | 63,006 | (24,551) (39.0%) |
| OPERATING EXPENSES: |  |  |  |  |  |  |
| Selling and marketing | 2,845 | 3,121 | (276) (8.8%) | 8,543 | 8,705 | (162) (1.9%) |
| General and administrative | 8,356 | 9,269 | (913) (9.9%) | 23,258 | 24,870 | (1,612) (6.5%) |
| Amortization of other intangible assets | 450 | 450 | — 0.0% | 1,350 | 1,362 | (12) (0.9%) |
| Total operating expenses | 11,651 | 12,840 | (1,189) (9.3%) | 33,151 | 34,937 | (1,786) (5.1%) |
| OPERATING INCOME | 4,114 | 6,752 | (2,638) (39.1%) | 5,304 | 28,069 | (22,765) (81.1%) |
| OTHER INCOME (EXPENSE): |  |  |  |  |  |  |
| Interest expense | — | (762) | 762 (100.0%) | (1,169) | (2,494) | 1,325 (53.1%) |
| Interest income | 760 | 1,398 | (638) (45.6%) | 2,649 | 4,164 | (1,515) (36.4%) |
| INCOME BEFORE INCOME TAX EXPENSE | 4,874 | 7,388 | (2,514) (34.0%) | 6,784 | 29,739 | (22,955) (77.2%) |
| INCOME TAX EXPENSE | 1,053 | 1,661 | (608) (36.6%) | 1,521 | 6,801 | (5,280) (77.6%) |
| INCOME FROM CONTINUING OPERATIONS | $3,821 | $5,727 | $(1,906) (33.3%) | $5,263 | $22,938 | $(17,675) (77.1%) |
| **Additional financial and other data:** |  |  |  |  |  |  |
| Unit sales volume: |  |  |  |  |  |  |
| MasterCraft | 422 | 468 | (46) (9.8%) | 1,196 | 1,453 | (257) (17.7%) |
| Pontoon | 197 | 298 | (101) (33.9%) | 527 | 1,025 | (498) (48.6%) |
| Consolidated unit sales volume | 619 | 766 | (147) (19.2%) | 1,723 | 2,478 | (755) (30.5%) |
| Net sales: |  |  |  |  |  |  |
| MasterCraft | $64,227 | $69,783 | $(5,556) (8.0%) | $174,857 | $218,319 | $(43,462) (19.9%) |
| Pontoon | 11,733 | 14,194 | (2,461) (17.3%) | 29,830 | 49,713 | (19,883) (40.0%) |
| Consolidated net sales | $75,960 | $83,977 | $(8,017) (9.5%) | $204,687 | $268,032 | $(63,345) (23.6%) |
| Net sales per unit: |  |  |  |  |  |  |
| MasterCraft | $152 | $149 | $3 2.0% | $146 | $150 | $(4) (2.7%) |
| Pontoon | 60 | 48 | 12 25.0% | 57 | 49 | 8 16.3% |
| Consolidated net sales per unit | 123 | 110 | 13 11.8% | 119 | 108 | 11 10.2% |
| Gross margin | 20.8% | 23.3% | (250) bps | 18.8% | 23.5% | (470) bps |

Net sales decreased $8.0 million during the third quarter of fiscal 2025, when compared with the same prior-year period. The decrease in net sales was driven by planned lower unit volumes and changes in price, partially offset by favorable model mix and options sales.

Net sales decreased $63.3 million during the first nine months of fiscal 2025, when compared with the same prior-year period. The decrease in net sales was driven by planned lower unit volumes, unfavorable model mix and changes in price, partially offset by favorable option sales.

Gross margin percentage declined 250 and 470 basis points during the third quarter and first nine months of fiscal 2025, respectively, when compared with the same prior-year period. Lower margins were the result of changes in sales price, material and overhead inflation, and lower cost absorption due to decreased production volume.

Operating expenses decreased $1.2 million and $1.8 million during the third quarter and first nine months of fiscal 2025, respectively, when compared with the same prior-year period. Prior year costs were elevated as a result of CEO transition and related share-based compensation costs.

### Segment Results

### MasterCraft Segment

The following table sets forth MasterCraft segment results for the three and nine months ended:

*(Dollar amounts in thousands)*

|  | Three Months Ended March 30, 2025 | March 31,% 2024 | 2025 vs. 2024 Change | Change | Nine Months Ended March 30, 2025 | March 31,% 2024 | 2025 vs. 2024 Change | Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net sales | $64,227 | $69,783 | $(5,556) | (8.0%) | $174,857 | $218,319 | $(43,462) | (19.9%) |
| Operating income | 5,792 | 7,616 | (1,824) | (23.9%) | 12,864 | 28,202 | (15,338) | (54.4%) |
| Purchases of property, plant and equipment | 1,778 | 2,591 | (813) | (31.4%) | 5,459 | 6,207 | (748) | (12.1%) |
| Unit sales volume | 422 | 468 | (46) | (9.8%) | 1,196 | 1,453 | (257) | (17.7%) |
| Net sales per unit | $152 | $149 | $3 | 2.0% | $146 | $150 | $(4) | (2.7%) |

Net sales decreased $5.6 million during the third quarter of fiscal 2025, when compared with the same prior-year period. The decrease was driven by lower unit volume and changes in price, partially offset by favorable model mix and decreased dealer incentives.

Net sales decreased $43.5 million during the first nine months of fiscal 2025, when compared with the same prior-year period. The decrease was driven by lower unit volume, unfavorable model mix and changes in price, partially offset by decreased dealer incentives.

Operating income decreased $1.8 million and $15.3 million during third quarter and first nine months of fiscal 2025, respectively, when compared with the same prior-year period. The change was primarily the result of decreased net sales and increased materials and overhead inflation, partially offset by decreased operating expenses, as discussed above.

### Pontoon Segment

The following table sets forth Pontoon segment results for the three and nine months ended:

*(Dollar amounts in thousands)*

|  | Three Months Ended March 30, 2025 | March 31,% 2024 | 2025 vs. 2024 Change | Change | Nine Months Ended March 30, 2025 | March 31,% 2024 | 2025 vs. 2024 Change | Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net sales | $11,733 | $14,194 | $(2,461) | (17.3%) | $29,830 | $49,713 | $(19,883) | (40.0%) |
| Operating loss | (1,678) | (864) | (814) | 94.2% | (7,560) | (133) | (7,427) | 5584.2% |
| Purchases of property, plant and equipment | 233 | 584 | (351) | (60.1%) | 1,147 | 1,761 | (614) | (34.9%) |
| Unit sales volume | 197 | 298 | (101) | (33.9%) | 527 | 1,025 | (498) | (48.6%) |
| Net sales per unit | $60 | $48 | $12 | 25.0% | $57 | $49 | $8 | 16.3% |

Net sales decreased $2.5 million and $19.9 million during the third quarter and first nine months of fiscal 2025, respectively, when compared to the same prior-year period, mainly due to lower unit volumes and increased dealer incentives, partially offset by favorable model mix and option sales.

Operating loss for the third quarter and first nine months of fiscal 2025 increased $0.8 million and $7.4 million, respectively, compared to the same prior-year period. The change was driven by decreased net sales, as discussed above, and increased labor and materials costs.

### Non-GAAP Measures

#### EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin

We define EBITDA as income from continuing operations, before interest, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations. For the periods presented herein, the adjustments are for share-based compensation, and CEO transition and organizational realignment costs. We define EBITDA margin and Adjusted EBITDA margin as EBITDA and Adjusted EBITDA, respectively, each expressed as a percentage of Net sales.

#### Adjusted Net Income and Adjusted Net Income per share

We define Adjusted Net Income and Adjusted Net Income per share as income from continuing operations, adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense on adjusted net income before income taxes at our estimated annual effective tax rate. For the periods presented herein, these adjustments include other intangible asset amortization, share-based compensation, and CEO transition and organizational realignment costs.

EBITDA, Adjusted EBITDA, EBITDA margin, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Net Income per share, which we refer to collectively as the Non-GAAP Measures, are not measures of net income or operating income as determined under accounting principles generally accepted in the United States, or U.S. GAAP. The Non-GAAP Measures are not measures of performance in accordance with U.S. GAAP and should not be considered as an alternative to net income, net income per share, or operating cash flows determined in accordance with U.S. GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of cash flow. We believe that the inclusion of the Non-GAAP Measures is appropriate to provide additional information to investors because securities analysts and investors use the Non-GAAP Measures to assess our operating performance across periods on a consistent basis and to evaluate the relative risk of an investment in our securities. We use Adjusted Net Income and Adjusted Net Income per share to facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results prepared in accordance with U.S. GAAP, provides a more complete understanding of factors and trends affecting our business than does U.S. GAAP measures alone. We believe Adjusted Net Income and Adjusted Net Income per share assists our Board, management, investors, and other users of the financial statements in comparing our net income on a consistent basis from period to period because it removes certain non-cash items and other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense on adjusted net income before income taxes at our estimated annual effective tax rate. The Non-GAAP Measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and the Non-GAAP measures do not reflect any cash requirements for such replacements;
- The Non-GAAP measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
- The Non-GAAP measures do not reflect changes in, or cash requirements for, our working capital needs;
- Certain Non-GAAP measures do not reflect our tax expense or any cash requirements to pay income taxes;
- Certain Non-GAAP measures do not reflect interest expense, or the cash requirements necessary to service interest payments on our indebtedness; and
- The Non-GAAP measures do not reflect the impact of earnings or charges resulting from matters we do not consider to be indicative of our core and/or ongoing operations, but may nonetheless have a material impact on our results of operations.

In addition, because not all companies use identical calculations, our presentation of the Non-GAAP Measures may not be comparable to similarly titled measures of other companies, including companies in our industry.

The following table presents a reconciliation of income from continuing operations as determined in accordance with U.S. GAAP to EBITDA, and Adjusted EBITDA, and income from continuing operations margin (expressed as a percentage of net sales) to EBITDA margin and Adjusted EBITDA margin (each expressed as a percentage of net sales) for the periods indicated:

*(Dollar amounts in thousands)*

|  | Three Months Ended March 30, 2025 | % of Net sales | March 31, 2024 | % of Net sales | Nine Months Ended March 30, 2025 | % of Net sales | March 31, 2024 | % of Net sales |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| **Income from continuing operations** | $3,821 | 5.0% | $5,727 | 6.8% | $5,263 | 2.6% | $22,938 | 8.6% |
| Income tax expense | 1,053 |  | 1,661 |  | 1,521 |  | 6,801 |  |
| Interest expense | — |  | 762 |  | 1,169 |  | 2,494 |  |
| Interest income | (760) |  | (1,398) |  | (2,649) |  | (4,164) |  |
| Depreciation and amortization | 2,569 |  | 2,105 |  | 7,024 |  | 6,312 |  |
| **EBITDA** | 6,683 | 8.8% | 8,857 | 10.5% | 12,328 | 6.0% | 34,381 | 12.8% |
| Share-based compensation | 805 |  | 1,564 |  | 2,080 |  | 2,536 |  |
| CEO transition and organizational realignment costs(a) | — |  | 1,241 |  | 448 |  | 1,677 |  |
| **Adjusted EBITDA** | $7,488 | 9.9% | $11,662 | 13.9% | $14,856 | 7.3% | $38,594 | 14.4% |

The following table presents a reconciliation of income from continuing operations as determined in accordance with U.S. GAAP to Adjusted Net Income for the periods indicated:

*(Dollar amounts in thousands, except per share data)*

|  | Three Months Ended March 30, 2025 | March 31, 2024 | Nine Months Ended March 30, 2025 | March 31, 2024 |
| --- | ---: | ---: | ---: | ---: |
| **Income from continuing operations** | $3,821 | $5,727 | $5,263 | $22,938 |
| Income tax expense | 1,053 | 1,661 | 1,521 | 6,801 |
| Amortization of acquisition intangibles | 450 | 450 | 1,350 | 1,362 |
| Share-based compensation | 805 | 1,564 | 2,080 | 2,536 |
| CEO transition and organizational realignment costs(a) | — | 1,241 | 448 | 1,677 |
| **Adjusted Net Income before income taxes** | 6,129 | 10,643 | 10,662 | 35,314 |
| Adjusted income tax expense(b) | 1,103 | 2,128 | 1,919 | 7,063 |
| **Adjusted Net Income** | $5,026 | $8,515 | $8,743 | $28,251 |
| Adjusted Net Income per share: |  |  |  |  |
| Basic | $0.31 | $0.51 | $0.53 | $1.66 |
| Diluted | $0.30 | $0.50 | $0.53 | $1.65 |
| Weighted average shares used for the computation of(c): |  |  |  |  |
| Basic Adjusted Net Income per share | 16,414,340 | 16,844,440 | 16,471,352 | 17,003,616 |
| Diluted Adjusted Net Income per share | 16,540,345 | 16,965,624 | 16,554,235 | 17,093,958 |

23

The following table presents the reconciliation of income from continuing operations per diluted share to Adjusted Net Income per diluted share for the periods indicated:

|  | Three Months Ended March 30, 2025 | March 31, 2024 | Nine Months Ended March 30, 2025 | March 31, 2024 |
| --- | ---: | ---: | ---: | ---: |
| **Income from continuing operations per diluted share** | $0.23 | $0.34 | $0.32 | $1.34 |
| Impact of adjustments: |  |  |  |  |
| Income tax expense | 0.06 | 0.10 | 0.09 | 0.40 |
| Amortization of acquisition intangibles | 0.03 | 0.03 | 0.08 | 0.08 |
| Share-based compensation | 0.05 | 0.09 | 0.13 | 0.15 |
| CEO transition and organizational realignment costs(a) | — | 0.07 | 0.03 | 0.10 |
| **Adjusted Net Income per diluted share before income taxes** | 0.37 | 0.63 | 0.65 | 2.07 |
| Impact of adjusted income tax expense on net income per diluted share before income taxes(b) | (0.07) | (0.13) | (0.12) | (0.42) |
| **Adjusted Net Income per diluted share** | 0.30 | $0.50 | $0.53 | $1.65 |

(a) Represents amounts paid for legal fees and recruiting costs associated with the CEO transition, as well as non-recurring severance costs incurred as part of the Company's strategic organizational realignment undertaken in connection with the transition.

(b) For fiscal 2025 and 2024, income tax expense reflects an income tax rate of 18.0% and 20.0%, respectively.

(c) Represents the Weighted Average Shares used for the computation of Basic and Diluted earnings per share as presented on the Consolidated Statements of Operations to calculate Adjusted Net Income per basic and diluted share for all periods presented herein.

### Liquidity and Capital Resources

Our primary liquidity and capital resource needs are to finance working capital, fund capital expenditures, service debt, fund potential acquisitions, and fund our share repurchase program. Our principal sources of liquidity are our cash balance, available-for-sale securities, cash generated from operating activities, our revolving credit agreement and the refinancing and/or new issuance of long-term debt. We believe our cash balance, available-for-sale securities, cash from operations, and our ability to borrow will be sufficient to provide for our liquidity and capital resource needs.

Cash and cash equivalents totaled $28.5 million as of March 30, 2025, an increase of $21.1 million from $7.4 million as of June 30, 2024. Available-for-sale securities totaled $38.0 million as of March 30, 2025, a decrease of $40.8 million from $78.8 million as of June 30, 2024. Net changes in Cash and cash equivalents and Available-for-sale securities include proceeds from Available-for-sale securities being used to repay outstanding amounts under the Revolving Credit Facility and $26.1 million in net proceeds from the Aviara Facility Sale. Refer to Note 3 - Discontinued Operations and Note 4 — Short-term investments in the Notes to the unaudited condensed consolidated financial statements for further details. Total debt as of June 30, 2024 was $49.3 million, with no amounts outstanding as of March 30, 2025.

As of March 30, 2025, we had no amounts outstanding under the Revolving Credit Facility, leaving $100.0 million of available borrowing capacity. Refer to Note 9 — Long-Term Debt in the Notes to unaudited condensed consolidated financial statements for further details.

On July 24, 2023, the Board of the Company authorized a share repurchase program under which the Company may repurchase up to $50 million of its outstanding shares of common stock. The authorization became effective upon the completion of the Company's previously existing $50 million stock repurchase authorization.

During the nine months ended March 30, 2025, the Company repurchased 264,310 shares of common stock for $5.0 million in cash, excluding related fees and expenses.

The following table and discussion below relate to our cash flows from continuing operations from operating, investing, and financing activities:

*(Dollar amounts in thousands)*

| Total cash provided by (used in): | Nine Months Ended March 30, 2025 | March 31, 2024 |
| --- | ---: | ---: |
| Operating activities | $18,457 | $23,575 |
| Investing activities | 34,960 | 1,813 |
| Financing activities | (54,988) | (16,787) |
| **Net change in cash and cash equivalents from continuing operations** | $(1,571) | $8,601 |

#### Nine Months Ended March 30, 2025 Cash Flows from Continuing Operations

Net cash provided by operating activities for the nine months ended March 30, 2025 was $18.5 million, primarily due to net income and favorable changes to working capital. Working capital is defined as accounts receivable, income tax receivable, inventories, and prepaid expenses and other current assets net of accounts payable, income tax payable, and accrued expenses and other current liabilities as presented in the condensed consolidated balance sheets. Favorable changes in working capital primarily consisted of an increase in accounts payables and a decrease in accounts receivable. Partially offsetting favorable changes in working capital was an increase in inventories. Accounts payables increased due to increased production compared to the prior-year period. Accounts receivable decreased due to timing of sales at the end of the period compared to the end of the prior-year period. Inventories increased due to higher value on finished goods and timing of sales at the end of the period compared to the end of the prior-year period.

Net cash provided by investing activities was $35.0 million, which included $41.6 million of net proceeds in available-for-sale securities, partially offset by $6.6 million in capital expenditures. Our capital spending was primarily focused on information technology, tooling and machinery and equipment.

Net cash used in financing activities was $55.0 million, which included share repurchases totaling $5.0 million, excluding related fees and expenses, and $49.5 million used to repay outstanding borrowings of the Term Loan. Drawn amounts on the Revolving Credit Facility were fully repaid as of March 30, 2025.

#### Nine Months Ended March 31, 2024 Cash Flows from Continuing Operations

Net cash provided by operating activities for the nine months ended March 31, 2024 was $23.6 million, primarily due to net income, partially offset by working capital usage. Working capital usage primarily consisted of decreases in accrued expenses and other current liabilities, accounts payable, and income tax payable and an increase in prepaid expenses and other current assets, partially offset by decreases in inventories and accounts receivables. Accrued expenses and other current liabilities decreased due to payment of dealer incentives and lower compensation related accruals, partially offset by an increase in repurchase obligations. Accounts payable decreased as a result of decreased production levels. Income tax payable decreased due to lower earnings compared to the prior year. Prepaid expenses and other current assets increased due to payment of annual insurance premiums. Inventories decreased as we continue to rebalance inventory levels to align with lower production levels, partially offset by increased materials costs from inflation. Accounts receivables decreased primarily as a result of lower sales at the end of the period compared to the end of the prior-year period.

Net cash provided by investing activities was $1.8 million, due to net changes in available-for-sale securities of $9.8 million, partially offset by $8.0 million of capital expenditures. Our capital spending was mainly focused on facility enhancements, information technology, and tooling.

Net cash used in financing activities was $16.8 million, which included net payments of $3.4 million on long-term debt and $11.7 million of share repurchases.

### Off Balance Sheet Arrangements

The Company did not have any off balance sheet financing arrangements as of March 30, 2025.

### Critical Accounting Estimates

As of March 30, 2025, there were no significant changes in or changes to the application of our critical accounting policies or estimation procedures from those presented in our 2024 Annual Report.

## Market risk

As filed, 157 characters.

Refer to our 2024 Annual Report for discussion of the Company’s market risk. There have been no material changes in market risk from those disclosed therein.

## Controls and procedures

As filed, 1,601 characters.

#### Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) (of the Exchange Act) that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

As of the end of the period covered by this Quarterly Report on Form 10-Q, we carried out an evaluation under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures. Based upon this evaluation, our chief executive officer and chief financial officer have concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of March 30, 2025.

#### Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended March 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 172 characters.

During the nine months ended March 30, 2025, there have been no material changes to the risk factors disclosed in “Part I, Item 1A. Risk Factors” in our 2024 Annual Report.

Filed May 7, 2025.
Source: SEC EDGAR, the filing index for accession 0000950170-25-065151. Last ingested by Listed: Oct 26, 2026, 06:02 ET. No prices; not investment advice.