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MasterCraft (Nasdaq: MCFT) | Company Profile, History, Competitors

 

MasterCraft (NASDAQ: MCFT) is a manufacturer of performance boats. As of 2017, MasterCraft had 139 dealers in North America and internationally. The company was founded in 1968 and headquartered in Vonore, TN.

MasterCraft was founded in 1968. In 2007, the company was acquired by private equity firms CharlesBank Capital Partners and Transportation Resource Partners. In 2015, the company went public. MasterCraft is one of the leading innovators in the powerboat market and manufactures powerboats for
water skiers, wakeboarders and wakesurfers.

Business Overview

MasterCraft designs performance boats for water skiers, wakeboarders and wakesurfers. It has a line of 11 boats under four main brands:

Star Series
MasterCraft sells the XStar and ProStar water ski boats.
XStar: 522hp boat that can seat 13 persons. Primarily used for wakeboarding. Prices range from $100,000-$150,000.
ProStar: 430hp boat that can seat 7 persons.The ProStar is widely recognized to be the premier three-event boat. Prices range from $60,000-$75,000.

X Series
MasterCraft sells the X23, X24 and X26 series. Boats are 522hp, seat 11-18 persons, and can be used for wakeboarding, wake surfing and water skiing. Prices range from $70,000 to $150,000.

XT Series
MasterCraft sells the XT20, XT21, XT22, XT23, XT25 series. Boats are 522hp and seats 16 persons. The XT series targets the mid level portion of the market between the NXT series and premium X series. Prices range from $80,000 to $135,000.

NXT Series
MasterCraft sells the NXT20 and NXT22 series. Boats are 320hp and seats 11 persons. The NXT Series targets the entry level customer. Prices range from $50,000 to $75,000.

Suppliers and Distribution

MasterCraft sells its boats through a network of independent dealers in North America and international markets. In 2017, Mastercraft had 96 dealers in North America and 43 dealers internationally.

MasterCraft provides its dealers with sales training and technology tools to maximize sales. Their dealer incentive program includes volume and purchasing targets. The company also sponsors an annual dealer meeting to focus on sales and marketing strategies.

MasterCraft also provide a web-based management tool for dealers to communicate with the company's sales management teams. Their DealerLink online system helps register warranties, inventory ordering, parts ordering and technical support.

The typical dealer agreement is for one to three years. Each dealer has the ability to market in a specific geographic territory, a contracted volume incentive agreement and the requirement to maintain a service center to service MasterCraft's products.

Sales and Marketing

MasterCraft partners with some of the largest companies in the industry including GoPro, Hobie, ESPN and Sanuk. The company also partners with the Enthusiast Network Media group which has an audience of 158 million action sports fans.

MasterCraft has a unified print and digital strategy and is active on social media including Facebook, Twitter, Instagram and YouTube, where users can post user-generated videos.

Manufacturing

All the boats are designed and manufactured at their Vonore, TN manufacturing facility. MasterCraft offers a five year warranty on its products.

Competitors

Its main powerboat competitors are Malibu and Brunswick. Malibu competes in both the premium and entry-level categories under the Malibu and Axis brands. Brunswick entered the powerboat market in 2017 with the introduction of the Sea Ray model.

History

The company was founded in 1968 in Maryville, TN and designed the first custom hull ski boat.

In 1996, it launched the first wakeboard-specific boat and the first boat with v-drive transmission.

In 2007, the company was acquired by CharlesBank Capital Partners and Transportation Resource Partners, a venture capital firm associated with Robert Penske.

In 2009, the company was re-acquired by Wayzata Investment Partners.

In 2013, it introduced the Generation 2 Surf System. In 2015, the company went public.

Management

Terry McNew (CEO): Terry McNew serves as CEO since 2012. Prior, he was CEO at Correct Craft and worked at Brunswick Corp.

Timothy M. Oxley (CFO): Tim Oxley serves as CFO since 2007. Prior, he was CFO of Brunswick Corp., a recreational boats manufacturer.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $162 
$178 
$214 
$222 
$229 
 Gross Profit $31 
$38 
 $51 
 $61 
 $64 
 Operating Profit $12 
$19 
 $24 
 $22 
 $34 
 Net Income$3 
$20 
$6 
 $10 
 $20 
 EPS$0.25
$1.78 
$0.04 
$0.56 
$1.05 



MCBC Holdings, Inc.
 
  Type     Public
  Ticker     NASDAQ: MCFT
  Industry Recreational Vehicles
  Founded 1968
  Headquarters Vonore, TN
  Dealers 139 (2017)
  Revenues
$229mm (2017)
  Employees 490 (2017)
  Website mastercraft.com