MasterCraft Boat Holdings, Inc. operates as a leading innovator, designer, manufacturer, and marketer of recreational powerboats sold through its three brands, MasterCraft, Crest, and Balise. As a leader in recreational marine, the company strives to deliver the best on-water experience through innovative, high-quality products with a relentless focus on the consumer.
Segments
The company operates through three segments: MasterCraft, Pontoon, and Aviara.
MasterCraft
The company’s MasterCraft...
MasterCraft Boat Holdings, Inc. operates as a leading innovator, designer, manufacturer, and marketer of recreational powerboats sold through its three brands, MasterCraft, Crest, and Balise. As a leader in recreational marine, the company strives to deliver the best on-water experience through innovative, high-quality products with a relentless focus on the consumer.
Segments
The company operates through three segments: MasterCraft, Pontoon, and Aviara.
MasterCraft
The company’s MasterCraft segment, which manufactures and sells premium ski/wake boats, consists of its MasterCraft brand. MasterCraft participates in the highest margin producing category within the powerboat industry by manufacturing the industry’s premier competitive water ski, wakeboarding, and wake surfing performance boats. The MasterCraft brand is known among boating enthusiasts for high performance, premier quality, and relentless innovation. The market recognizes MasterCraft as a premier brand in the powerboat industry due to the overall superior value proposition that the company’s boats deliver to consumers. The company works tirelessly every day to maintain this iconic brand reputation.
Pontoon
The company’s Pontoon segment, which manufactures and sells pontoon boats, consists of its Crest brand and its Balise brand. The Pontoon segment participates in the largest unit producing category in the powerboat industry. Crest’s long-standing reputation for high-quality, standard features and content, and innovation provides Crest with strong dealer and consumer bases in its core geographic markets.
The company’s Balise brand, an all-new, independent pontoon brand which was launched in April 2024, has been conceived with the discerning consumer in mind. With luxurious accents and appointments not typically found in pontoons, the company seeks to manufacture its Balise boats to the highest quality standards and to position the brand as the most luxurious pontoon on the market.
Aviara
The company’s Aviara segment, which manufactures and sells luxury day boats, consists of the Aviara brand. Aviara is a de novo brand, developed in-house, and focused on serving the luxury recreational day boat category of the powerboat industry.
On August 8, 2024, the company announced the Aviara Transaction, which is expected to close in the first quarter of fiscal 2025. The company intends to classify Aviara as discontinued operations beginning in the first quarter of fiscal 2025.
Products
The company designs, manufactures, and sells premium recreational inboard ski/wake, outboard, and sterndrive boats that deliver superior performance for water skiing, wakeboarding, and wake surfing, as well as general recreational boating. In addition, the company offers various accessories, including trailers and aftermarket parts.
The company’s MasterCraft portfolio of ProStar, XStar, X, XT, and NXT models are designed for the highest levels of performance, styling, and enjoyment for both recreational and competitive use. The ProStar, XStar and X models are geared towards the consumer seeking the most premium and highest performance boating experience that the company offers, and generally commands a price premium over its competitors’ boats at retail prices ranging from approximately $120,000 to $300,000. The MasterCraft XT lineup is designed to offer ultimate flexibility to consumers with maximum customization and maximum performance at retail prices ranging from approximately $155,000 to $225,000. The NXT models offer the quality, performance, styling, and innovation of the MasterCraft brand to the entry-level consumer, with retail prices ranging from approximately $115,000 to $150,000.
The company’s Crest portfolio of pontoon boats are designed for the ultimate in comfort and recreational pleasure boating. Crest’s pontoon boats are designed to offer consumers the best in luxury, style and performance without compromise across a diverse model lineup ranging in length from 20 to 27 feet. The Signature Line is home to Crest’s Classic models. The Premium Line boasts three Caribbean models with sleek lines, available tower options, unique color combinations and top-quality construction. The Ultimate Luxury Line represents the pinnacle of lavish amenities, featuring the Continental, Continental NX, and Savannah models. This lineup anticipates every need with thoughtful options, an industry-first integrated dual windshield and premium upholstery and audio upgrades. The Electric Line harmonizes industry innovations by introducing eco-friendly pontoon boats. The new model allows consumers to enjoy a new level of peace and relaxation with less noise and minimal emissions. Crest’s retail prices range from approximately $40,000 to $250,000.
The company’s Balise portfolio of models are the most refined pontoon boats in the luxury watercraft space. With sizes ranging from 24 to 26 feet and two unique seating configurations, the Balise line is the perfect boat for the discerning consumer. The company’s two models, Horizon and Helix, bring unrivaled luxury to the pontoon segment. Balise retail prices range from $230,000 to $350,000.
The Aviara portfolio of luxury recreational day boats was designed in-house with the vision to create pleasure crafts that defy compromise. The Aviara brand drew on MasterCraft’s legacy of quality. Aviara’s boat designs were inspired by four product design principles – Progressive Style, Elevated Control, Modern Comfort and Quality Details. Aviara’s models consist of the AV28, a 28-foot luxury bowrider, the AV32, a 32-foot luxury bowrider, the AV36, a 36-foot luxury bowrider, and the AV40, the brand’s flagship 40-foot luxury bowrider, for the ultimate on-the-water experience. All models are available in either outboard or sterndrive propulsion, along with a forward-facing drive AV28S, and Aviara’s retail prices range from approximately $225,000 to over $1,300,000.
The company’s products are sold through extensive networks of independent dealers in North America and internationally. The company targets its distribution to the market category’s highest performing dealers. The majority of the company’s MasterCraft brand dealers are exclusive to its MasterCraft product lines within the ski/wake category, highlighting the commitment of its key dealers to the MasterCraft brand. The company’s other brands are generally served on a nonexclusive basis by their respective dealers.
North America: As of June 30, 2024, the company’s MasterCraft brand had a total of 100 dealers across 155 locations. The company’s Pontoon segment had a total of 141 dealers across 173 locations. The Aviara brand was sold through a distribution network consisting of five dealers with 71 locations.
Outside of North America: As of June 30, 2024, through the company’s MasterCraft brand, it had a total of 40 international dealers and 40 locations. The company’s Pontoon segment had one international dealer in one location. Aviara had one international dealer in one location. The company defines international dealers as those dealers with locations outside of North America. The company is present in Europe, Australia, South America, Africa, Asia, including Hong Kong, and the Middle East.
Dealer Relations
The company has developed a system of financial incentives for its dealers based on achievement of key benchmarks. In addition, the company provides its dealers with comprehensive sales training and a complete set of technology-based tools designed to help dealers maximize performance. The company’s dealer incentive program has been refined through years of experience with some of the key elements including wholesale rebates, retail rebates and promotions, other allowances, and floor plan interest reimbursement or cash discounts to encourage balanced production throughout the year (year ended: June 30, 2024).
Beyond its incentive programs, the company has developed a proprietary web-based management tool that is used by its dealers on a day-to-day basis to improve their own businesses, as well as enhance communication with the company’s factory and sales management teams. The company’s business-to-business application efficiently executes many critical functions, including warranty registrations, warranty claims, boat ordering and tracking, parts ordering, technical support, and inventory reporting. This system facilitates communication between its sales team and the dealer network and allows the company’s manufacturing department to review consumer demand in real time.
Suppliers
For the company’s MasterCraft brand, Ilmor Engineering, Inc. (Ilmor) is its exclusive engine supplier and for its Crest brand, Mercury Marine (Mercury) is the company’s largest engine supplier. For its Balise brand, the company has partnered with Mercury to be the exclusive engine supplier. For the Aviara brand, Mercury provides outboard engines and Ilmor provides sterndrive engines. The company maintains strong and long-standing relationships with Ilmor and Mercury. During fiscal 2024, Ilmor was the company’s largest overall supplier. In addition to ski/wake and sterndrive engines, Ilmor’s affiliates produce engines used in a number of leading racing boats and race cars.
Research and Development, Product Development and Engineering
For the year ended: June 30, 2023, the company’s research and product development expense included $8.3 million.
Intellectual Property
The company holds more than 65 U.S. patents and more than 10 foreign patents, including utility and design patents for its transom surf seating, our DockStar handling system, and its SurfStar surf system technology among numerous other innovations. Provided that the company complies with all statutory maintenance requirements, its patents are expected to expire between 2028 and 2042. The company also has additional patent applications pending in the U.S. and worldwide. The company also owns in excess of 130 trademark registrations in various countries around the world, most notably for the MasterCraft, Crest, and Aviara names and/or logos, as well as numerous model names in MasterCraft’s Star Series, X, XT, and NXT product families, and the company has several pending applications for additional registrations, including for the recently launched Balise brand. Such trademarks may endure in perpetuity on a country-by-country basis provided that the company complies with all statutory maintenance requirements, including continued use of each trademark in each such country. In addition, the company owns 38 registered U.S. copyrights. Finally, the company has registered more than 50 vessel hull designs with the U.S. Copyright Office, the most recent of which will remain in force through 2030.
History
The company was founded in 1968. It was incorporated in Delaware in 2000. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in 2018.