MasterCraft Boat Holdings, Inc.

Good day and thank you for standing by. Welcome to the first quarter 2023 Mastercraft Boat Holdings, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Tim Oxley, Chief Financial Officer. Please go ahead.

Thank you, operator, and welcome, everyone. Thank you for joining us today as we discuss Mastercraft's first quarter performance for fiscal 2023. As a reminder, today's call is being webcast live and will also be archived on our website for future listening. With me on this morning's call are Fred Bradfill, Chief Executive Officer and Chairman, and George Steinbarger, our Chief Revenue Officer. Fred will begin with a review of our operational highlights for the first quarter. I'll then discuss our financial performance for the quarter. Then I'll currently call back to Fred for some closing remarks before we open the call for Q&A. Before we begin, we'd like to remind participants that the information contained in this call is current only as of today, November 9th, 2022. The company assumes no obligation to update any statements, including forward-looking statements. Statements that are not historical facts are forward-looking statements and subject to the safe harbor disclaimer in today's press release. Additionally, on this conference call, we will discuss non-GAAP measures that include or exclude special or items not indicative of our ongoing operations. For each non-GAAP measure, we also provide the most directly comparable GAAP measure in our fiscal 2023 first quarter earnings release, which includes a reconciliation of these non-GAAP measures to our GAAP results. We would also like to remind listeners that there is a slide deck summarizing our financial results in the investor section of our website. In addition, beginning this quarter, the financial results of the NauticStar segment are reported as discontinued operations separate from the results of our continuing operations following the sale of the NauticStar business during the quarter. Unless otherwise noted, the following commentary is made on a continuing operations basis. With that, I'll turn the call over to Fred.

Thank you for joining us today. Before we begin, Our thoughts are with all of those, including our more than 200 employees in the path of the storm currently impacting Florida. Our sincere hope is that they all remain safe and secure. Our business performed extremely well during the first quarter in a very challenging and dynamic environment. Our results reflect the continuation of exceptional execution against our strategic and operational priorities as we delivered the best first quarter in the company's history. Furthermore, The first quarter represented an eighth consecutive period over period record-setting quarter. Net sales diluted adjusted earnings per share were all the highest for any first quarter in the company's history. This excellent performance also represents an eighth consecutive quarter of net sales growth of more than 20%, a testament to our growth-oriented strategy. Each of our businesses contributed to our revenue growth and profitability during the quarter. When compared to the first quarter of fiscal 2022, net sales were higher by nearly 30%, adjusted EBITDA grew by nearly 73%, adjusted EBITDA margin increased 530 basis points, and adjusted net income per share grew by more than 90% year over year. One of our four strategic priorities is the never-ending pursuit of greater operational excellence. This focus allowed us to mitigate the impact of a very challenging supply chain environment, Our superior supply chain management resulted in improved production efficiencies and throughput, which enabled each of our brands to make progress in replenishing dealer inventories during the quarter. This success is a result of strategically building a world-class supply chain team, choosing to focus our operations on core competencies, and aligning ourselves with the best supplier partners in the industry. Although improving, the supply chain continues to be a risk. in particular for certain second-tier supplier components sourced from China. Labor efficiency and availability also improved during the quarter. Our ability to successfully navigate the supply chain and labor challenges resulted in industry-leading gross margins for the quarter. These results would not have been possible without the dedicated efforts of our employees. Our emphasis on human capital and our status as a premier employer in the communities in which we operate is enabling us to attract and retain skilled labor. In addition, during the quarter, we continued our impressive track record of safety, achieving 3 million man hours worked without a lost time incident at our Mastercraft brand. This achievement is a testament to our commitment to safety, an essential element of Mastercraft's core values, and is attributable to every single individual in our workforce. I could not be prouder of what they have achieved. We believe our superior operating model is allowing us to make more progress in building much needed dealer inventories faster than our closest competitors. As of the end of the first quarter, dealer inventories are about 25% lower than the first quarter of fiscal 2019. Our success in replenishing dealer inventories and improving product availability will be a competitive advantage heading into the 2023 summer selling season. We continue to closely monitor economic conditions and evaluate the potential impact on our businesses. As we explained on our last earnings call, macroeconomic and other demand indicators have shown some weakening and are generally signaling a downturn within the next 12 months, which will negatively impact the upcoming summer selling season. Expecting the expected weakening economy has caused us to approach our wholesale production plan for fiscal 2023 with a prudent level of conservatism, and we have developed plans for a range of potential retail demand scenarios. Despite the negative near-term economic outlook, there are reasons to believe our core consumer is better positioned to withstand this recession. For example, as recently measured by the Federal Reserve, higher-income households have nearly $1.5 trillion of savings in excess of the level that they had prior to the pandemic. We are optimistic that strong household balance sheets will continue to support consumer spending and that our diversified portfolio of premium brands is unmatched in its ability to serve this affluent customer. Despite the continuing supply chain disruption and macroeconomic volatility, we are making progress toward our overarching objective of driving sustainable, accelerated growth by being the most consumer-focused recreational boat manufacturers. We remain determined to execute against each of our four strategic priorities, consumer experience, consumer acquisition, operational excellence, and human capital development. Guided by these priorities, we are intent on continuously improving our business to maximize shareholder value. We are confident that the divestiture of the NauticStar business resulted in a more agile and focused company and provided structural improvement to the growth potential and margin profile of our business. Let me now briefly review some of the latest developments across our brands. Our Mastercraft brand performed extremely well by growing net sales to a first quarter record of $113 million and expanding gross profit margin by 220 basis points year over year. This tremendous result is due to the extraordinary efforts of the Mastercraft team and the continued success of Mastercraft's best-in-class operating model. Mastercraft continued to take market share during the recently completed summer selling season and remains the number one brand in the fastest growing and highest margin category in the powerboat industry. For model year 2023, Mastercraft focused on its most affordable product lineup. As part of our product refresh and expansion, the recently announced all-new NXT 21 and NXT 23 set a higher standard for the entry-level towboat segment. with best-in-class wave performance, a spacious hybrid bow, added storage, and telematics. These new models are designed for exceptional convenience. The newly designed Bimini top with upgraded surf sleeves provide the most board storage in the industry. And the new swim step makes it easier than ever to enter and exit the water. The innovative hybrid bow increases seating capacity and allows for additional storage. With a class-leading ballast capacity of 3,000 pounds, combined with the Surfstar system, riders can experience Mastercraft's perfectly sculpted wakes and waves at an approachable price point. Mastercraft recently completed ISO recertification with flying colors for quality management systems, which is ISO 9001, safety and health management systems, which is ISO 18001, and environmental management systems, which is ISO 14001. Mastercraft is the only recreational boat manufacturer to meet these exacting standards. Mastercraft's world-class operating model and its continuous release of innovative products and consumer-centric features are just two of the reasons the iconic Mastercraft brand continues to outpace the competition. At Crest, net sales were up nearly 33% year over year. In addition to a track record of strong growth, Crest continued to generate exceptional profitability by achieving a record gross margin of nearly 23% for the quarter. Since its acquisition in fiscal 2019, Crest expanded its gross margin by 540 basis points and increased net sales by nearly 70%. Crest's ability to grow consistently while generating exceptional earnings demonstrates the success of the CREST acquisition and highlights our value-enhancing growth strategy. The key element of CREST's growth strategy is dealer expansion, and CREST has added more than 30 new points of distribution over the past several months. According to the most recent All States Reporting SSI market share data, as of the rolling 12-month period ended June 30, 2022, CREST increased market share by 20 basis points. At Aviera, net sales were up by more than 120% compared to the prior year period, driven by a 68% increase in units and a favorable model mix. During the quarter, Aviera reached profitability, and as production continues to increase, we expect margins to continue to increase and result in positive adjusted EBITDA for the full year. As widely reported from the recent boat shows, demand for premium product continues to be robust. Aviera achieved record results in units and revenue at the recent Fort Lauderdale International Boat Show. According to the most recent All-States Reporting SSI market share data, as of the rolling 12-month period ended June 30, 2022, Aviera increased its market share by 230 basis points in the 30 to 43-foot premium day boat segment. This was the largest increase amongst all competitors, further solidifying the brand's position as a preeminent luxury day boat. I will now turn the call over to Tim, who will provide more detailed analysis of our financial results. Tim?