MCBC Holdings (MCFT) is trading at a new all-time high after the company reported better than expected second quarter results and raised fiscal 2018 guidance last night.
MCBC is the parent company of MasterCraft Boats. Net sales for the second quarter increased 53% to $78.4 million due to improvements in the MasterCraft core business and the inclusion of recently acquired NauticStar. Adjusted EBITDA rose 51% to $13.6 million; the adjusted EBITDA margin fell 20 basis points to 17.4%. Mastercraft had guided for second quarter sales up 45% with an EBITDA margin above 15%. MasterCraft sold 675 boats during the quarter, representing growth of 7% year-over-year. Recently acquired NauticStar sold 526 boats.
The company raised 2018 net sales growth to the high 30% range from 35% and adjusted EPS growth to the low-to mid-40% range from over 25%.
CEO Terry McNew said "We continue to see solid retail activity and are comfortable with our current inventory levels, because our dealer inventory turns are continuing to improve year-over-year... Given our strong second-quarter performance, we are very optimistic about prospects for the second half of fiscal 2018. And we remain committed to our five-pronged growth strategy: developing new and innovative products; further penetrating the entry-level and mid-line segment of the performance sport boat category; capturing share from adjacent boating categories; strengthening our dealer network; and driving margin expansion through continuous operational excellence."
The boating market is strong along with the US consumer.
Malibu Boats (MBUU) is also higher after reporting better than expected second quarter results this morning. That stock remains just below its all-time high. Both MasterCraft and Malibu have market share in the low 20% range.
Brunswick (BC) is a more diversified leisure company that makes boats, pool tables and owns bowling alleys. Brunswick disappointed investors by missing fourth quarter estimates last week.
MarineMax (HZO) is a boating retailer that beat first quarter estimates and raised fiscal 2018 guidance two weeks ago.