MasterCraft Boat Holdings, Inc. which owns the MasterCraft, NauticStar, Crest, and Aviara brands, has announced it will be evaluating "strategic alternatives" for its NauticStar business.
In a company statement, Chief Executive Officer and Chairman Fred Brightbill said, "Over the last 18 months, we have successfully delivered on our strategic priorities to position the Company to deliver sustainable growth and value. As a result, we believe now is the appropriate time to consider available alternatives to exit the NauticStar business. This decision will enable us to focus on our MasterCraft, Crest and Aviara brands, which continue to perform well in a challenging environment, and ensure that we are directing resources to the areas that will drive the greatest value for our shareholders."
The board of directors will consider a range of alternatives for maximizing shareholder value, with possible outcomes including the potential sale of NauticStar assets and/or existing the NauticStar business altogether.
Brighthull also went on to add, "We believe that the strength and breadth of our brand offerings and the investments we are making in marketing, production and operational excellence have positioned the Company better than at any time in our recent history to manage through the current market environment.”
Other key details in the press release state that there "can be no assurance" that the pursuit of an alternative for NauticStar and its assets will result in the company focusing on one particular potential outcome. No timetable has been set for completion of the process, and MasterCraft Holdings made it clear there will be no further statements until an alternative emerges that is worthy of bringing up to shareholders.
MasterCraft Holdings will also move forward by accounting for the NauticStar brand as "discontinued" beginning in the first quarter of 2023. Details of the company's final 2022 fiscal earnings report are expected to be in line with its previous statement on May 11, 2022, and the company will provide an update regarding its fourth quarter status during their 2022 conference call.
With its remaining three brands, MasterCraft Holdings will still maintain a leading market share in boating's fastest growing segments -- performance sport boats, outboard saltwater fishing boats, and pontoons.
As of August 18th, the company continued its stable performance on the NASDAQ, with a current price of $26.61 per share, a 2022 low of $20.25 and a high of $29.69.