MasterCraft Boat Holdings, Inc. recently announced financial results for its fiscal 2022 first quarter ended October 3, 2021.
Fred Brightbill, Chief Executive Officer and Chairman, commented, “Our business performed extremely well during the first quarter in a very challenging and dynamic environment. These results reflect a continuation of exceptional execution against our strategic and operational priorities as we delivered a record-setting performance for the fourth consecutive quarter. Net sales, diluted adjusted earnings per share, and adjusted EBITDA were all the highest for any first quarter in the Company’s history.”
For the first quarter of 2022, MasterCraft Boat Holdings, Inc. reported consolidated net sales of $144.0 million, up $40.3 million from the first quarter of 2021. The increase was primarily due to increased volumes. Higher prices, favorable model mix, and higher option sales also contributed to higher net sales.
Gross margin declined 440 basis points to 20.9 percent in first quarter 2022 from 25.3 percent in first quarter 2021. Higher revenues yielded a lower margin due to supply chain disruptions and inflationary pressures that drove materials and labor costs higher. In addition, we incurred incremental overhead costs associated with the Merritt Island, Florida facility acquired in second quarter of fiscal 2021.
Operating expenses were $16.1 million for the first quarter, up $3.3 million from the prior-year period. Selling and marketing expense increased due to the timing of prior year expenses being impacted by the COVID-19 pandemic, resulting in lower costs for the first quarter of fiscal 2021. General and administrative expense increased as we continued to make investments in research and development and information technology.
Net income was $10.4 million for the first quarter, compared to $9.6 million in the prior-year period. Diluted net income per share was $0.55, compared to $0.51 for the first quarter 2021. Adjusted Net Income increased to $12.8 million for the first quarter, or $0.67 per diluted share, compared to $10.9 million, or $0.58 per diluted share, in the prior-year period.
“We remain committed to making investments to further strengthen our competitive position, grow our brands, and deliver shareholder value guided by our long-term focus and strategic priorities. Looking forward, we are raising our guidance for the full year on the strength of our operating performance and wholesale visibility,” concluded Brightbill.