14. SEGMENT INFORMATION

Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the CODM in making decisions on how to allocate resources and assess performance. For the year ended June 30, 2025, the Company’s CODM regularly assessed the operating performance of the Company’s boat brands under two operating and reportable segments:

The MasterCraft segment, consisting of our MasterCraft brand, produces boats at its Vonore, Tennessee facility. These are premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating.
The Pontoon segment, consisting of our Crest and Balise brands, produces pontoon boats at its Owosso, Michigan facility. Pontoon boats are primarily used for general recreational boating.

Each segment distributes its products through its own independent dealer network. Each segment also has its own management structure which is responsible for the operations of the segment and is directly accountable to the CODM for the operating performance of the segment, which is regularly assessed by the CODM who allocates resources based on that performance.

The Company files a consolidated income tax return and does not allocate income taxes and other corporate-level expenses, including interest, to operating segments. All material corporate costs are included in the MasterCraft segment.

The Company’s CODM is the Chief Executive Officer. The CODM uses Adjusted EBITDA, a non-GAAP measure, in the annual budget and forecasting process. Subsequent to the process, the CODM considers forecast-to-actual variances to assess the performance of and allocate resources to the Company’s segments based on Adjusted EBITDA. Adjusted EBITDA excludes depreciation and amortization, share based compensation, senior leadership transition and organizational realignment costs, and business development consulting costs.

Selected financial information for the Company’s reportable segments was as follows:

 

 

For the Year Ended June 30, 2025

 

 

 

MasterCraft

 

 

Pontoon

 

 

Consolidated

 

Net sales

 

$

240,763

 

 

$

43,440

 

 

$

284,203

 

Cost of sales

 

 

183,180

 

 

 

44,158

 

 

 

227,338

 

Operating expenses(1)

 

 

36,925

 

 

 

8,708

 

 

 

45,633

 

Adjustments:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,888

 

 

 

3,691

 

 

 

9,579

 

Adjustment items(2)

 

 

3,225

 

 

 

349

 

 

 

3,574

 

Adjusted EBITDA

 

 

29,771

 

 

 

(5,386

)

 

 

24,385

 

Less: Interest Expense

 

 

 

 

 

 

 

 

(1,169

)

Add: Interest Income

 

 

 

 

 

 

 

 

3,472

 

Less: Depreciation and amortization

 

 

 

 

 

 

 

 

(9,579

)

Less: Share-based compensation

 

 

 

 

 

 

 

 

(2,915

)

Less: Senior leadership transition and organizational realignment costs

 

 

 

 

 

 

 

 

(659

)

Income before taxes

 

 

 

 

 

 

 

 

13,535

 

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

7,219

 

 

 

1,979

 

 

 

9,198

 

 

 

 

 

For the Year Ended June 30, 2024

 

 

 

MasterCraft

 

 

Pontoon

 

 

Consolidated

 

Net sales

 

$

262,736

 

 

$

59,615

 

 

$

322,351

 

Cost of sales

 

 

197,622

 

 

 

53,119

 

 

 

250,741

 

Operating expenses(1)

 

 

35,541

 

 

 

8,593

 

 

 

44,134

 

Adjustments:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,109

 

 

 

3,266

 

 

 

8,375

 

Adjustment items(2)

 

 

4,180

 

 

 

130

 

 

 

4,310

 

Adjusted EBITDA

 

 

38,862

 

 

 

1,299

 

 

 

40,161

 

Less: Interest Expense

 

 

 

 

 

 

 

 

(3,292

)

Add: Interest Income

 

 

 

 

 

 

 

 

5,789

 

Less: Depreciation and amortization

 

 

 

 

 

 

 

 

(8,375

)

Less: Share-based compensation

 

 

 

 

 

 

 

 

(2,602

)

Less: Senior leadership transition and organizational realignment costs

 

 

 

 

 

 

 

 

(1,708

)

Income before taxes

 

 

 

 

 

 

 

 

29,973

 

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

7,912

 

 

 

2,613

 

 

 

10,525

 

 

 

 

For the Year Ended June 30, 2023

 

 

 

MasterCraft

 

 

Pontoon

 

 

Consolidated

 

Net sales

 

$

468,656

 

 

$

141,247

 

 

$

609,903

 

Cost of sales

 

 

328,547

 

 

 

112,617

 

 

 

441,164

 

Operating expenses(1)

 

 

38,784

 

 

 

8,526

 

 

 

47,310

 

Adjustments:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,555

 

 

 

2,841

 

 

 

8,396

 

Adjustment items(2)

 

 

3,412

 

 

 

362

 

 

 

3,774

 

Adjusted EBITDA

 

 

110,292

 

 

 

23,307

 

 

 

133,599

 

Less: Interest Expense

 

 

 

 

 

 

 

 

(2,679

)

Add: Interest Income

 

 

 

 

 

 

 

 

3,351

 

Less: Depreciation and amortization

 

 

 

 

 

 

 

 

(8,396

)

Less: Share-based compensation

 

 

 

 

 

 

 

 

(3,462

)

Less: Business development consulting costs

 

 

 

 

 

 

 

 

(312

)

Income before taxes

 

 

 

 

 

 

 

 

122,101

 

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

17,414

 

 

 

7,149

 

 

 

24,563

 

(1)
Operating expenses include selling and marketing expenses, general and administrative expenses, and amortization of other intangible assets.
(2)
Adjustment items include share-based compensation, senior leadership transition and organizational realignment costs, and business development consulting costs.

The following table presents total assets for the Company’s reportable segments as of June 30, 2025 and 2024.

 

 

June 30, 2025

 

 

June 30, 2024

 

Assets:

 

 

 

 

 

 

MasterCraft

 

$

213,942

 

 

$

233,088

 

Pontoon

 

 

46,006

 

 

 

51,994

 

Assets associated with discontinued operations

 

 

 

 

 

32,902

 

Total assets

 

$

259,948

 

 

$

317,984

 

Historical Timeline

Fiscal YearFiled
2025Aug 27, 2025Showing above
2024Aug 30, 2024
2023Aug 30, 2023
2022Sep 9, 2022
2021Sep 2, 2021
2020Sep 11, 2020
2019Sep 13, 2019
2018Sep 7, 2018
2017Sep 8, 2017
2016Sep 9, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.