MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) Q3 2024 Earnings Call Transcript

Griffin Bryan: I guess if you just talk about what are the current conversations sounding like with dealers considering the model, you’re 25 ordering? Obviously, the entire industry is still seeing some bloated inventories. I’m just curious what the playbook is there as we end the model year changeover.

Tim Oxley: This time of year since we’re so heavily dependent on retail April, May, June, most of our conversations with dealers are focused on getting them healthy now and blowing through as much of the existing inventory as they can. And then it’s sort of premature to have very much in the way of conversations with model year 25. Matter of fact, the more we tout 25, it makes it harder for them to sell the 24s to have an inventory. So not very many conversations focused on 25 yet.

Griffin Bryan: And just one more follow-up here. So just can you speak to the current health of your dealer network and if you’re seeing any cracks by geography or by category of product being carried? Thanks.

Tim Oxley: We’ve been fortunate as we have focused on dealer health from the beginning of the year and that we’ve avoided any significant dealer issues. We remain focused on dealer health. We meet monthly with the floor plan companies. They’re kind of our early warning system for us. If they see any issues, we have a well-used toolkit on what we do to prevent dealers from getting at financial distress. And we’ve been utilizing those tools, which includes obviously retail rebates, producing production, moving both sideways to more dealers and markets with healthier demand. So we have a number of those things that we’ve used and so far we’ve been successful in avoiding any significant dealer failures. And then we certainly have a less of a concentration with one dealer than our competitors.

Operator: And this does conclude today’s question-and-answer session. Ladies and gentlemen, this also does conclude today’s conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.