Revenue during the quarter went up marginally by 2.55 percent to $58.49 million from $57.03 million in the previous year period. Gross margin for the quarter contracted 226 basis points over the previous year period to 25.52 percent. Total expenses were 92.68 percent of quarterly revenues, up from 86.83 percent for the same period last year. That has resulted in a contraction of 585 basis points in operating margin to 7.32 percent.

Operating income for the quarter was $4.28 million, compared with $7.51 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $9.62 million compared with $10.10 million in the prior year period. At the same time, adjusted EBITDA margin contracted 126 basis points in the quarter to 16.44 percent from 17.71 percent in the last year period.

Terry McNew, MasterCraft’s president and chief executive officer, commented, "We were pleased to see strong growth in retail demand during the quarter. Market reception for our recently released XT20 and XT21 has been strong and this series continues to set new industry standards in premium features and towboat performance. For the quarter and year-to-date, we delivered gains in net sales, reduced dealer pipeline inventory, as well as continued to improve on our already outstanding working capital management."

Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 6 days for the last year period. Days sales outstanding went up to 8 days for the quarter compared with 5 days for the same period last year.

Days inventory outstanding has decreased to 12 days for the quarter compared with 26 days for the previous year period. At the same time, days payable outstanding was almost stable at 24 days for the quarter, when compared with the previous year period.