MasterCraft Boat Holdings, Inc.

your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to the Chief Financial Officer, Tim Oxley. Please go ahead.

Thank you, Operator, and welcome, everyone. Thank you for joining us today as we discuss Mastercraft's third 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 Wrightville, Chief Executive Officer and Chairman, George Steinbarger, our Chief Revenue Officer. Fred will begin with a review of our operational highlights from the third quarter. I will then discuss our financial performance for the quarter. I'll turn the 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, May 10, 2023. The company assumes no obligation to update any statements, including poor-looking statements. Statements that are not historical facts are poor-looking statements and subject to a 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 item indicative of our ongoing operations. For each non-GAAP measure, we also provide the most directly comparable GAAP measure in our fiscal 2023 third quarter earnings press release, which includes a reconciliation of these non-GAAP measures to our GAAP results. There's also a slide that summarizes our financial results in the investor section of our website. As a reminder, 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, Tim, and good morning, everyone. During the third quarter, we achieved better than expected net sales and earnings. Net sales were nearly $167 million, and adjusted EBITDA was nearly $33 million. Adjusted diluted net income per share was $1.36, which tied our record from last year for the best fiscal third quarter in the company's history. Our exceptional operating results and diligent working capital management continued into the third quarter. resulting in record operating cash flow of $107 million fiscal year to date. During the quarter, we achieved our goal of refilling dealer inventories to optimal levels ahead of the summer selling season. As of the end of the third quarter, dealer inventories are approximately 60% higher than the third quarter of fiscal year 2022, and about 20% lower than the third quarter of fiscal year 2019. We believe that the business process and dealer network improvements we have implemented over the past few years will allow us to maintain lower levels of dealer inventory than was typical in the past. We also continue to see a return to a more historical seasonal demand pattern, including less urgency on the part of the consumer compared to last year as product availability has improved. For context, approximately 45% of annual powerboat retail sales occur during our fiscal fourth quarter. Our expanded and refreshed model year 2023 product lineup with the success we have had in increasing dealer inventories has resulted in outstanding product availability. In addition, we have implemented targeted programs and discounts to support retail sales in response to pricing pressures from competitors. Given the premium positioning of our product portfolio, We will only use these pricing mechanisms, if needed, to support profitable and sustainable market share. Overall, our dealer partners are well positioned to capitalize on retail demand. Despite near-term economic headwinds, including continued inflation, higher interest rates, and potential for tightening credit availability, retail activity has performed closer to the upper end of our range of expectations through our fiscal third quarter. On a blended basis, Our retail sales during the quarter were more than 30% higher than during our pre-pandemic fiscal third quarter of 2019. As a reminder, we entered the fiscal year with a prudently conservative view of retail demand, which included the potential for an economic downturn to negatively impact the summer selling season. There now seems to be a general expectation that a potential economic downturn has been pushed into our fiscal 2024. we now expect to achieve fiscal year 2023 wholesale shipments at the upper end of our range of scenarios. As a result, in fiscal 2024, we expect wholesale unit sales will exhibit a more balanced relationship with retail unit sales. Moving on to supply chain, the general environment, including cost inflation and delivery disruption, is improving, with lingering risk expected to continue for some time. Limited supplies and longer-than-normal lead times in certain components, including those with upstream exposure to Asia and some propulsion components, continue to intermittently affect our operational efficiency and production schedules. However, we do not expect supply chain disruption to be a constraint on our full-year production. Our strong operating performance has resulted in record-year-to-date cash flow, driven by strong earnings and diligent working capital management. Our Fortress balance sheet provides us with abundant financial flexibility. We are well positioned to pursue our capital allocation priorities, first and foremost of which is investment in growth. We have a track record of growing through multiple approaches, including organically through existing brands, internal new brand development, and acquisitions. We are laying the foundation for future growth by actively investing in targeted initiatives that will take advantage of the strong underlying secular industry trends. At Mastercraft Boat Holdings, we are committed to acting as good corporate citizens in the communities we serve. We are proud to announce our Surf to Save Lives initiative. Surf to Save Lives is a joint campaign launched by Mastercraft and St. Jude Children's Research Hospital to make a meaningful difference in the lives of families across the country. By coming together, these two Tennessee-based organizations aim to raise funds and awareness in support of the life-saving mission of St. Jude. St. Jude has been at the forefront of childhood cancer research for over 60 years, leading the way in understanding, treating, and defeating childhood cancer and other life-threatening diseases. We share St. Jude's commitment to enriching the lives of families and making memories possible. Let me now briefly review some of the latest developments across our brands. Our MassCraft brand performed well during the quarter, with net sales of nearly 118 million, down 2% from the prior year period. This represents the second highest third quarter net sales in the company's history. For model year 2023, Mastercraft expanded and refreshed its entry and mid-level product lineups by adding the all-new NXT21, NXT23, XT22T, and the completely redesigned XT20. Also new for model year 2023 was the ability for Mastercraft consumers to upgrade to the award-winning Ilmore Supercharged 6.2 liter engines. the world's most powerful towboat engine, and the cleanest marine engine with over 500 horsepower. Due to these introductions, Mastercraft has the broadest and strongest product lineup in its history before the upcoming summer selling season. The strength of Mastercraft's product offerings and its success in restocking dealer inventories has provided dealers and consumers with outstanding product availability. At Crest, net sales were more than $36 million, down about 7% from the prior year period. Continuing with a trend of generating exceptional profitability, Crest achieved a gross margin of nearly 20%. Fiscal year to date, Crest has added 25 additional points of distribution to its dealer network as it continues to execute on this key element of its growth strategy. We are proud that Crest has received the 2022 Marine Industry Consumer Satisfaction Index Award for excellence in customer satisfaction. This is the fourth consecutive year in every year of our ownership that Crest has won the award. At Aviera, net sales were nearly 13 million, up approximately 23% compared to the prior year period, driven by a 17% increase in units and higher prices. Looking ahead, Aviera will begin to launch innovative and exciting new models in the first quarter of fiscal 2024. These introductions will represent the next phase of Aviera's product evolution. In addition, Javier will be expanding distribution to select international markets in fiscal 2024. Together, this will position the brand for continued revenue and earnings growth. I will now turn the call over to Tim, who will provide additional, more detailed analysis of our financial results. Tim.