MasterCraft Boat Holdings, Inc.

Good day and thank you for standing by. Welcome to the Q2 2025 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 that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Tim Oxley, Chief Financial Officer. Please go ahead.

Thank you, operator, and welcome, everyone. Thank you for joining us today as we discuss MassCraft's fiscal second quarter performance for 2025. 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 is Brad Nelson, Chief Executive Officer. We will begin with an overview of our operational performance from the second quarter. I will then discuss our financial performance. Brad will then provide some closing remarks before we open the call for questions. Before we begin, we would like to remind participants that the information contained in this call is current only as of today, February 6, 2025. The company assumes no obligation to update any statements, including forward-looking statements. Statements that are not historical facts or forward-looking statements and subject to safe harbor disclaimer in today's press release. Additionally, on this conference call, we will discuss non-GAAP measures that include or exclude items not indicative of our ongoing operations. For each non-GAAP measure, we also provide the most directly comparable GAAP measure in today's press release, which includes a reconciliation of these non-GAAP measures to our GAAP results. There's also a slide deck summarizing 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 Brad.

Thank you, Tim, and good morning, everyone. Mastercraft delivered fiscal second quarter results that exceeded expectations. Our robust destocking efforts over the past 24 months have given our dealers the confidence to place new orders ahead of boat show season. Additionally, our portfolio of consumer-centric brands Highly variable cost structure and free cash flow generation provides us with the ability to continue investing in the business to drive long-term growth. Our flexible operating model and strategic production planning allows us to mitigate near-term risk and deliver strong fiscal 2025 results as we position the business for sustained growth in the periods ahead. Our purposeful lower production through the first half of our fiscal year puts us well ahead of schedule in reducing filled inventories. Assuming current retail trends continue through the summer selling season, destocking of filled inventories should largely be in the rearview mirror. We are narrowing our full-year guidance range as a result of our second quarter performance and the promising launch of the Mastercraft X-Star product line. We will discuss this in greater detail later on. Looking at the overall retail environment, mixed economic conditions and geopolitical uncertainty amplified typical second quarter seasonality. Despite softer retail, our aggressive inventory management and lower production levels led to a reduction of dealer inventories by more than 30% year over year. As we gear up for the summer selling season, Despite retail uncertainty, there is still cautious optimism throughout our Mastercraft dealer network. Before discussing recent brand developments, I wanted to briefly address the topic of tariffs. At this point, we're expecting cost implications for fiscal 2025 to be modest. While the vast majority of our materials are currently sourced from U.S. suppliers, ongoing trade and tariff variability could affect certain components. We have strong supplier relationships and an experienced supply chain team proactively working to mitigate risk. We will continue to monitor and act on the implications of trade dynamics on the broader economy and potential impact on retail customer sentiment. Now turning to our brands. For our Mastercraft segment, our team is actively supporting our dealer partners at the various boat shows worldwide. Mastercraft has performed particularly well at the Salt Lake City, Minneapolis and Dusseldorf, Germany shows. As a reminder, we recently launched our new flagship X-Star lineup. Initial consumer reaction has been overwhelmingly positive and has generated a noticeable buzz throughout our network and the industry. The product is in high demand from our dealers and retail customers alike. We are experiencing a strong halo effect on the Mastercraft brand since the launch. resulting in ramped-up interest across our product portfolio. We are optimistic that this positive momentum will carry into remaining boat shows and into the summer. Now let me discuss more specifics related to the new X-Star. Production commenced in our second quarter with the first wholesale shipments in our third quarter. As early-rate production steadily ramps, The X-Star's premium price point will drive significant earnings and free cash flow in our second half, particularly in the fourth quarter. The ultra-premium X-Star lineup consists of a redesigned 23-foot model and a brand new 25-foot offering. This lineup sets a new benchmark in wake and wave performance through its all-new hull and ballast design. Utilizing the industry-leading Surf Star system, The X-Star creates the most powerful and versatile waves with automated control. All X-Stars come standard with premium features, including a supercharged 6.2 liter engine, a revolutionary transom audio system, an exclusive Z100 tower, a stern thruster, and an innovative dash interface. Our team's renewed focus on innovation, performance, and luxury is showcased throughout this lineup. We hope that you are able to stop by our booth at an upcoming boat show. Turning to our pontoon segment. For some time now, the pontoon industry has experienced softening retail as payment buyers have been deterred by higher interest rates and other macroeconomic pressures. This softening retail, combined with a more pronounced seasonality for these types of products, has contributed to elevated aged inventory levels across the pontoon industry. and a challenging retail environment. Reducing filled inventories has been a key focus for our Crest brand. Fiscal year to date, we have successfully reduced pipeline levels at Crest through the off-peak season. As we near the all-important summer selling season, our top priority continues to be selling through aged inventory and pipeline management. Early Bosho results for our Crest brand have been mixed. We've been encouraged by Crest Performance at the all-important Minneapolis and Chicago boat shows. For our Belize brand, the early consumer response to our Horizon and Helix models have been promising as we ramp up brand visibility and continue adding strong dealers in targeted locations. Lastly, as we announced in December, the sale of our Merritt Island facility and related plant assets closed as expected. The net cash proceeds of over $26 million bolsters our balance sheet, and adds to our financial flexibility and ability to invest in our key long-term growth initiatives. I will now turn the call over to Tim, who will provide additional commentary on the quarter and a detailed discussion of our financial results. Tim. Thanks, Brad.