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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2018	Sep. 05, 2018	Dec. 31, 2017
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Registrant Name	MCBC Holdings, Inc.
Entity Central Index Key	0001638290
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 402,500,000
Entity Common Stock, Shares Outstanding		18,726,260

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 7,909	$ 4,038
Accounts receivable — net of allowances of $51 and $82, respectively	5,515	3,500
Inventories — net (Note 5)	20,467	11,676
Prepaid expenses and other current assets (Note 6)	3,295	2,438
Total current assets	37,186	21,652
Property, plant and equipment — net (Note 7)	22,265	14,827
Intangible assets — net (Note 8)	51,046	16,643
Goodwill (Note 8)	65,792	29,593
Deferred debt issuance costs — net	383	481
Other	252	125
Total assets	176,924	83,321
CURRENT LIABILITIES:
Accounts payable	17,266	11,008
Income tax payable	705	780
Accrued expenses and other current liabilities (Note 9)	27,866	21,410
Current portion of long term debt, net of unamortized debt issuance costs (Note 11)	5,069	3,687
Total current liabilities	50,906	36,885
Long term debt, net of unamortized debt issuance costs (Note 11)	70,087	30,790
Deferred income taxes (Note 12)	1,427	953
Unrecognized tax positions (Note 12)	1,982	2,932
Total liabilities	124,402	71,560
COMMITMENTS AND CONTINGENCIES (Note 14)
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 18,682,338 shares at June 30, 2018 and 18,637,445 shares at June 30, 2017	187	186
Additional paid-in capital	114,052	112,945
Accumulated deficit	(61,717)	(101,370)
Total stockholders' equity	52,522	11,761
Total liabilities and stockholders' equity	$ 176,924	$ 83,321

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 51	$ 82
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	18,682,338	18,637,445
Common stock, outstanding shares	18,682,338	18,637,445

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
CONSOLIDATED STATEMENTS OF OPERATIONS
NET SALES	$ 332,725	$ 228,634	$ 221,600
COST OF SALES	242,361	165,158	160,521
GROSS PROFIT	90,364	63,476	61,079
OPERATING EXPENSES:
Selling and marketing	13,011	9,380	9,685
General and administrative	19,773	20,474	29,162
Amortization of intangible assets	1,597	107	221
Total operating expenses	34,381	29,961	39,068
OPERATING INCOME	55,983	33,515	22,011
OTHER EXPENSE:
Interest expense	3,474	2,222	1,280
Change in common stock warrant fair value			3,425
Other income			(1,212)
INCOME BEFORE INCOME TAX EXPENSE	52,509	31,293	18,518
INCOME TAX EXPENSE	12,856	11,723	8,308
NET INCOME	$ 39,653	$ 19,570	$ 10,210
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 2.13	$ 1.05	$ 0.57
Diluted (in dollars per share)	$ 2.12	$ 1.05	$ 0.56
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF:
Basic earnings per share (in shares)	18,619,793	18,592,885	17,849,319
Diluted earnings per share (in shares)	18,714,531	18,620,708	18,257,007

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance, beginning at Jun. 30, 2015	$ 111	$ 8,841	$ (51,205)	$ (42,253)
Balance, beginning (in shares) at Jun. 30, 2015	11,139,000
Increase (decrease) in stockholders' equity
Sale of common stock in IPO, net of $9,309 in underwriter discounts, commissions and offering expenses	$ 61	81,701		81,762
Sale of common stock in IPO, net of $9,309 in underwriter discounts, commissions and offering expenses (in shares)	6,071,429
Issuance of shares of common stock warrants and options	$ 9	12,653		12,662
Issuance of shares of common stock warrants and options (shares)	864,946
Repurchase and retirement of common stock	$ (4)	(4,322)		(4,326)
Repurchase and retirement of common stock (shares)	(378,417)
Equity-based compensation activity	$ 9	13,502		13,511
Equity-based compensation activity (shares)	894,850
Dividends declared			(79,945)	(79,945)
Net income			10,210	10,210
Balance, ending at Jun. 30, 2016	$ 186	112,375	(120,940)	(8,379)
Balance, ending (in shares) at Jun. 30, 2016	18,591,808
Increase (decrease) in stockholders' equity
Equity-based compensation activity		1,019		1,019
Equity-based compensation activity (shares)	45,637
Offering costs		(449)		(449)
Net income			19,570	19,570
Balance, ending at Jun. 30, 2017	$ 186	112,945	(101,370)	11,761
Balance, ending (in shares) at Jun. 30, 2017	18,637,445
Increase (decrease) in stockholders' equity
Equity-based compensation activity	$ 1	1,107		1,108
Equity-based compensation activity (shares)	44,893
Net income			39,653	39,653
Balance, ending at Jun. 30, 2018	$ 187	$ 114,052	$ (61,717)	$ 52,522
Balance, ending (in shares) at Jun. 30, 2018	18,682,338

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) $ in Thousands	12 Months Ended
	Jun. 30, 2016 USD ($)
IPO
Underwriter discounts, commission and offering expenses	$ 9,309

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 39,653	$ 19,570	$ 10,210
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,086	3,231	3,444
Inventory obsolescence reserve	281	399	359
Amortization of deferred issuance costs	496	361	109
Stock-based compensation	1,186	711	13,687
Loss on extinguishment of debt			716
Change in common stock warrant fair value			3,425
Change in interest rate cap fair value	(435)
Unrecognized tax benefits	(1,199)	743	1,670
Deferred income taxes	557	4,454	(3,923)
Net provision for doubtful accounts	(31)	17	(27)
Loss on disposal of fixed assets		10	1
Changes in operating assets and liabilities:
Accounts receivable	(211)	(551)	(286)
Inventories	(2,754)	1,193	(2,086)
Prepaid expenses and other current assets	(763)	(658)	3,348
Income tax receivable		5	(5)
Other assets	39	45	(45)
Accounts payable	2,847	(2,104)	(1,697)
Income tax payable	(75)	(328)	884
Accrued expenses and other current liabilities	4,720	(866)	963
Net cash provided by operating activities	49,397	26,232	30,747
CASH FLOWS FROM INVESTING ACTIVITIES:
Disposal of assets	96
Payment for acquisition, net of cash acquired	(80,511)
Purchases of property and equipment	(5,305)	(4,135)	(3,817)
Net cash used in investing activities	(85,720)	(4,135)	(3,817)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock			91,071
Proceeds from issuance of long-term debt	80,832		50,000
Payments of costs directly associated with offerings		(449)	(7,202)
Cash paid for withholding taxes on vested stock	(78)	(4)
Excess tax benefits		312
Principal payments on long-term debt	(39,320)	(14,865)	(71,250)
Proceeds from revolving line of credit			9,208
Payments on revolving line of credit		(3,126)	(14,271)
Repurchase and retirement of common stock			(4,502)
Payments of debt discount			(923)
Payments of deferred issuance costs	(1,240)	0	(300)
Dividends paid			(79,945)
Proceeds from exercise of common stock warrant			90
Net cash provided by (used in) financing activities	40,194	(18,132)	(28,024)
NET CHANGE IN CASH AND CASH EQUIVALENTS	3,871	3,965	(1,094)
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD	4,038	73	1,167
CASH AND CASH EQUIVALENTS — END OF PERIOD	7,909	4,038	73
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash payments for interest	2,976	2,006	397
Cash payments for income taxes	13,549	$ 6,541	9,635
SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES:
Capital expenditures in accounts payable and accrued expenses	$ 733
Payment of costs directly associated with the issuance of common stock			2,107
Issuance of shares of common stock warrants			$ 12,572

ORGANIZATION AND NATURE OF BUSINESS	12 Months Ended
ORGANIZATION AND NATURE OF BUSINESS	Jun. 30, 2018
ORGANIZATION AND NATURE OF BUSINESS
ORGANIZATION AND NATURE OF BUSINESS	1.ORGANIZATION AND NATURE OF BUSINESS MCBC Holdings, Inc. (the “Company”) was formed on January 28, 2000, as a Delaware holding company and operates primarily through its wholly owned subsidiaries, MasterCraft Boat Company, LLC; Nautic Star, LLC; NS Transport, LLC; Navigator Marine, LLC; MasterCraft Services, Inc.; MasterCraft Parts, Ltd.; and MasterCraft International Sales Administration, Inc. The Company and its subsidiaries collectively are referred to herein as the “Company”. On October 2, 2017, the Company acquired all of the outstanding membership interests and other equity securities of Nautic Star, LLC, a Mississippi limited liability company and its subsidiaries (collectively, “NauticStar”). As a result of the acquisition, the Company consolidates the financial results of NauticStar (see Note 4). Since that date, the Company reports its results of operations under two reportable segments: MasterCraft and NauticStar (see Note 17). The Company is a designer and manufacturer of premium inboard tournament ski boats and luxury performance V-drive runabouts under the MasterCraft brand and outboard salt water fishing and general recreational boats under the NauticStar brand. The Company also leases a parts warehouse in the United Kingdom to expedite service, primarily to MasterCraft dealers and customers in Europe.

BASIS OF PRESENTATION	12 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2018
BASIS OF PRESENTATION
BASIS OF PRESENTATION	2.BASIS OF PRESENTATION The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2018

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

3.SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Immaterial Correction of Error — During the fourth quarter of fiscal 2018, the Company recorded an out of period adjustment that effected the Consolidated Statement of Operations for the year ended June 30, 2018. The adjustment related to improperly projecting warranty claims based on part sales rather than part costs. The impact of this adjustment resulted in an increase net income of $1,033 for the fiscal year ended June 30, 2018, with a corresponding decrease in accrued expenses and other current liabilities on the consolidated balance sheet as of June 30, 2018.

Management evaluated the effect of the adjustment on the Company’s financial statements under the provision of ASC 250: Accounting Changes and Error Corrections and Staff Accounting Bulletin No. 108: Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements and concluded that it was immaterial to the current year and prior years’ annual and quarterly financial statements.

Use of Estimates — The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, and expenses and related disclosures. The Company bases these estimates on historical results and various other assumptions believed to be reasonable. The Company’s most significant financial statement estimates include allowances for bad debts, warranty liability, inventory allowance for obsolescence, self-insurance liability, fair value of stock-based compensation, inventory repurchase contingent obligation, uncertain tax positions, impairment of long-lived assets and intangibles subject to amortization, impairment of goodwill and indefinite-lived intangibles, and potential litigation claims and settlements. Actual results could differ from those estimates.

Revenue Recognition — The Company’s revenue is derived primarily from the sale of boats, marine parts, and accessories. Revenue is recognized in accordance with the terms of the sale, primarily upon shipment to customers, once the sales price is fixed or determinable and collectability is reasonably assured. The Company offers discounts and sales incentives that include retail promotions, rebates, and floor plan reimbursement costs that are recorded as reductions of revenues in net sales in the consolidated statements of operations. The estimated liability and reduction in revenue for sales incentives is recorded at the later of when the program has been communicated to the customer or at the time of sale.

Dealers generally have no rights to return unsold boats. Occasionally, the Company may accept returns in limited circumstances and at the Company’s discretion under its warranty policy (Note 9). The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase commitment to floor financing providers, who are able to obtain such boats through foreclosure. The Company accrues estimated losses when a loss, due to the default of one of its dealers, is determined to be probable and the amount of the loss is reasonably estimable.

Dealer Incentives

The Company provides for various structured dealer rebate and sales promotions incentives, which are recognized as a reduction in net sales, at the time of sale to the dealer. Dealer rebate and sales promotions incentives are based on actual wholesale rebate and applicable sales promotion expenses at the time of sale to the dealer. Examples of such programs include seasonal discounts, volume commitment rebates and other allowances. Dealer rebate and sales promotion incentives recorded during the years ended June 30, 2018, 2017, and 2016, were $6,361, $5,660 and $6,701, respectively.

Rebates may apply to boats already in dealer inventory. These “retail rebates” on boats in the dealer’s inventory are recorded when the rebate is communicated to the dealer. Retail rebates are estimated based on current programs and historical achievement and/or usage rates. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if dealer achievement or other items vary from historical trends. Retail rebates recorded during the years ended June 30, 2018, 2017, and 2016, were $1,932, $5,484 and $3,628, respectively.

Accrued rebates are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets.

Floor Plan Reimbursement Costs

The Company participates in various programs whereby it agrees to reimburse its dealers for certain floor plan interest costs incurred by such dealers for limited periods of time, ranging up to nine months. Such costs are included as a reduction in net sales in the consolidated statements of operations and totaled $5,143, $3,705 and $3,472 for the years ended June 30, 2018, 2017, and 2016, respectively.

Shipping and Handling Costs — The Company includes shipping and handling costs billed to customers in net sales in the consolidated statements of operations. The Company includes costs incurred to transport product to customers and internal handling costs, which relate to activities to prepare goods for shipment, in cost of sales. For the years ended June 30, 2018, 2017, and 2016, shipping and handling costs billed to customers totaled $4,774, $4,124 and $4,043, respectively, and shipping and handling costs included in cost of sales totaled $5,526, $3,584 and $3,952, respectively.

Accounts Receivable — Accounts receivable represents amounts billed to customers under credit terms customary in its industry. The Company normally does not charge interest on its accounts receivable. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to bad debt recovery.

Cash and Cash Equivalents — The Company considers all highly-liquid investments with an original maturity of three months or less to be cash and cash equivalents. The Company’s cash deposits are in financial institutions located in Tennessee, Mississippi and Ohio and may at times exceed federally insured amounts. The Company had no cash equivalents at June 30, 2018 and 2017.

Concentrations of Credit and Business Risk — Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of trade receivables. Credit risk on trade receivables is mitigated as a result of the Company’s use of trade letters of credit, dealer floor plan financing arrangements, and the geographically diversified nature of the Company’s customer base.

The Company is dependent on third-party equipment manufacturers, distributors, and dealers for certain parts and materials utilized in the manufacturing process. In 2018, 2017, and 2016 the Company purchased all engines for its MasterCraft boats under a supply agreement with one vendor. Total purchases to this vendor were $34,734, $31,075 and $31,232 for 2018, 2017, and 2016, respectively. Total accounts payable to this vendor were $3,227 and $2,291 as of June 30, 2018 and 2017 respectively. In 2018, the Company purchased engines for its NauticStar boats under a supply agreement with one vendor. Total purchases to this vendor were $19,668 for 2018. Total accounts payable to this vendor were $1,261 as of June 30, 2018. The Company is dependent on the ability of its suppliers to provide products on a timely basis and on favorable pricing terms. The loss of certain principal suppliers or a significant reduction in product availability from principal suppliers could have a material adverse effect on the Company. Business risk insurance is in place to mitigate the business risk associated with sole suppliers for sudden disruptions such as those caused by natural disasters.

Inventories — Inventories are valued at the lower of cost or market and are shown net of an inventory allowance in the balance sheet. Inventory cost includes material, labor, and manufacturing overhead and is determined based on the first-in, first-out (FIFO) method. Provisions are made as necessary to reduce inventory amounts to their net realizable value or to provide for obsolete products.

Property, Plant, and Equipment — Property, plant, and equipment are recorded at historical cost less accumulated depreciation, and depreciated on a straight-line basis over the estimated useful lives. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements that increase the asset’s useful life are capitalized.

Ranges of asset lives used for depreciation purposes are:


Buildings and improvements	7	-	40	years
Machinery and equipment	3	-	7	years
Furniture and fixtures	3	-	7	years

Goodwill and Other Intangible Assets — The Company does not amortize goodwill and other purchased intangible assets with indefinite lives. All of the Company’s goodwill and intangible assets relate to either our MasterCraft or NauticStar reporting unit (see Note 17). The Company’s intangible assets with finite lives consist of dealer networks, and are carried at their estimated fair values at the time of acquisition, less accumulated amortization. Amortization is recognized on a straight-line basis over the estimated useful lives of the respective assets (see Note 8). Intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below.

Impairment of Goodwill and Other Indefinite-Lived Intangible Assets — As the acquisition of NauticStar added a new reporting unit, the Company performed a quantitative assessment of goodwill for the year ended June 30, 2018 to determine if it was more likely than not that the fair value of a reporting unit was less than its carrying amount. The Company performed a qualitative assessment of other indefinite-lived intangible assets for the year ended June 30, 2018 to determine if it was more likely than not that the fair value of a reporting unit was less than its carrying amount. The Company performed a qualitative assessment of goodwill and other indefinite-lived intangible assets for the years ended June 30, 2017 and 2016 to determine if it was more likely than not that the fair value of a reporting unit was less than its carrying amount. Based on the Company’s quantitative assessment of goodwill as of June 30, 2018 and qualitative assessments for the years ended June 30, 2018, 2017, and 2016, it was determined that there was no impairment related to its intangible assets during the years ended June 30, 2018, 2017, and 2016. These assets are reviewed for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Impairment of Long-Lived Assets Other Than Indefinite-Lived Assets — The Company assesses the potential for impairment of its long- lived assets if facts and circumstances, such as declines in sales, earnings, or cash flows or adverse changes in the business climate, suggest that they may be impaired. The Company performs its review by comparing the book value of the assets to the estimated future undiscounted cash flows associated with the assets. If any impairment in the carrying value of its long-lived assets is indicated, the assets would be adjusted to an estimate of fair value. The Company did not evaluate its long-lived assets for impairment as of June 30, 2018 and 2017 as no triggering event occurred.

Income Taxes — Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. The Company records its global tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates.

Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Significant judgment is required in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. The realization of these assets is dependent on generating future taxable income.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

In determining the amount of current and deferred tax the Company takes into account the impact of uncertain tax positions and whether additional taxes, interest and penalties may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Company to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will have an impact on tax expense in the period that such a determination is made. The income tax effects of the differences we identify are classified as long-term deferred tax assets and liabilities in our Consolidated Balance Sheets as of June 30, 2018 and June 30, 2017, following the adoption of ASU 2015-17, Income Taxes during the year ended June 30, 2016.

Product Warranties — The Company offers warranties on the sale of certain products for a period of up to five years for its MasterCraft branded products and up to one year for its NauticStar branded products and records an accrual for estimated future claims. Such accruals are based upon historical experience and management’s estimates of the level of future claims, and are subject to adjustment as actual claims are determined or as changes in the obligations become reasonably estimable. Such costs are included in cost of sales in the consolidated statements of operations.

Research and Development — Research and development expenditures are expensed as incurred. The amount charged against the years ended June 30, 2018, 2017, and 2016 was $4,933, $3,550 and $3,508, respectively, and is included in operating expenses in the consolidated statements of operations.

Self-Insurance — The Company is self-insured for certain losses relating to product liability claims and employee medical claims. The Company has purchased stop-loss coverage in order to limit its exposure to any significant levels under these plans. Losses are accrued based upon the Company’s estimates of the aggregate liability for self-insured claims incurred using certain actuarial assumptions followed in the insurance industry and the Company’s historical experience.

Deferred Financing Costs — Certain costs incurred to obtain financing are capitalized and amortized over the term of the related debt using the effective interest method. For the years ended June 30, 2018, 2017, and 2016 the Company incurred deferred financing costs of $1,240, —, and $300, respectively. For the year ended June 30, 2017 the Company did not incur any deferred financing costs. For the years ended June 30, 2018, 2017, and 2016 the Company recorded amortization of $496, $361 and $85, respectively.

Stock-Based Compensation — Compensation cost is recognized for stock options issued to employees, based on the fair value of these awards at the date of grant. The Black-Scholes model is utilized to estimate the fair value of stock options. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Advertising — Advertising costs are expensed as incurred. The amount charged against operations during the years ended June 30, 2018, 2017, and 2016, was $6,787, $5,201 and $5,725, respectively, and is included in selling and marketing expenses in the consolidated statements of operations.

Fair Value Measurements — The Company measures its “financial” assets and liabilities and certain “non-financial” assets and liabilities at fair value and utilizes the established framework for measuring fair value and disclosing information about fair value measurements. Fair value is the price received to transfer an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Measuring fair value involves a hierarchy of valuation inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly; and, Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring a company to develop its own valuation assumptions.

Fair Value of Financial Instruments — The carrying amounts of the Company’s financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable and other liabilities, approximate their estimated fair values due to the relative short-term nature of the amounts. The carrying amount of debt approximates fair value due to variable interest rates at customary terms and rates the Company could obtain in current financing.

Repurchase Commitments — In connection with its dealers’ wholesale floor-plan financing of boats, the Company has entered into repurchase agreements with various lending institutions. The repurchase commitment is on an individual unit basis with a term from the date it is financed by the lending institution through the payment date by the dealer, generally not exceeding two and a half years. The Company accrues estimated losses for obligations to repurchase inventory repossessed from dealerships by financial institutions when it is probable that a loss has been incurred and the amount of loss is reasonably estimable. The Company has applied these provisions to its floor plan repurchase agreements as disclosed in Notes 9 and 14.

Earnings Per Common Share — Basic earnings per common share reflects reported earnings divided by the weighted average number of common shares outstanding. Diluted earnings per common share include the effect of dilutive stock options and warrant and the respective tax benefits, unless inclusion would not be dilutive.

Operating Leases — The Company leases warehouse space and equipment under operating lease arrangements. Lease agreements may include rent holidays, rent escalation clauses, and tenant improvement allowances. The Company recognizes scheduled rent increases on a straight-line basis over the lease term beginning with the date the Company takes possession of the leased space.

Segment Information — Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision maker in making decisions on how to allocate resources and assess performance. The Company views its operations in two operating segments based on product brand consisting of the MasterCraft brand and the NauticStar brand.

New Accounting Pronouncements Issued But Not Yet Adopted

In June 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This guidance provides clarity and reduces complexity when applying the guidance in Topic 718, Compensation—Stock Compensation to the term or condition of share-based payments to nonemployees. ASU 2018-07 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018. The Company is currently evaluating the effect that the adoption of this new guidance is expected to have on our financial position or results of operations and related disclosures. This guidance will be adopted for our fiscal year beginning July 1, 2019.

In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This guidance provides clarity and reduces complexity when applying the guidance in Topic 718, Compensation—Stock Compensation to a change to the term or condition of a share-based payment. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. This guidance will not have a material impact on our financial position or results of operations and related disclosures and was adopted for our fiscal year beginning July 1, 2018.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The guidance clarifies the definition of a business that provides a two-step analysis in the determination of whether an acquisition or derecognition is a business or an asset. The update removes the evaluation of whether a market participant could replace any missing elements and provides a framework to assist entities in evaluating whether both an input and a substantive process are present. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods and early adoption is permitted for transactions that meet specified criteria. This guidance is to be applied on a prospective basis for transactions that occur after the effective date. This guidance will not have a material impact on our financial position or results of operations and related disclosures and was adopted for our fiscal year beginning July 1, 2018.

In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This guidance eliminates Step 2 from the goodwill impairment test. Instead, an entity should recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019. The Company is currently evaluating the effect that the adoption of this new guidance is expected to have on our financial position or results of operations and related disclosures.

In May 2014, the FASB and International Accounting Standards Board jointly issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which includes new principles-based accounting guidance for revenue recognition that will supersede virtually all existing revenue guidance. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve the core principle, the guidance establishes the following five steps: 1) identify the contract(s) with a customer, 2) identify the performance obligation in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also details the accounting treatment for costs to obtain or fulfill a contract. Lastly, disclosure requirements have been enhanced to provide sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09, as amended, became effective for the Company on July 1, 2018.

The Company will use the modified retrospective approach in applying the new standard. Based on the Company’s assessment, it will continue to recognize revenue at the point in time at which control transfers to its customers (either upon shipment or upon delivery, depending on the contract terms). As such, the timing of revenue recognition will be largely consistent for the majority of the Company’s performance obligations. However, the Company expects an impact from the new standard for dealers who are offered retail promotions which are currently recorded at the later of when the program has been communicated to the dealer or at the time of sale. Under the new standard, the Company will recognize an estimate of these retail promotions as variable consideration at the time of sale to a dealer. As a result, the Company will have a change in the timing of recording retail promotions and rebates. Although we are still finalizing the impact to retained earnings as of June 30, 2018, we expect the total range of adjustment, after the effect of taxes, to be a decrease to retained earnings of $2.5 million to $3.5 million. The Company is still assessing potential impacts the new standard will have on its disclosures.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flow, and other Topics. ASU 2016-15 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. This guidance will not have a material impact on our financial position or results of operations and related disclosures and was adopted for our fiscal year beginning July 1, 2018.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact this new guidance is expected to have on its financial position or results of operations and related disclosures.

New Accounting Pronouncements Issued And Adopted

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. This guidance does not have a material impact on our financial position or results of operations and related disclosures and was adopted for our fiscal year beginning July 1, 2017.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. This ASU changes the measurement principle for inventories valued under the FIFO or weighted-average methods from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined by the FASB as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. This guidance does not have a material impact on our financial position or results of operations and related disclosures and was adopted for our fiscal year beginning July 1, 2017.

There are no other recently issued accounting pronouncements that are expected to have a material impact on our financial position or results of operations and related disclosures.

ACQUISITION

12 Months Ended

Jun. 30, 2018

ACQUISITION

ACQUISITION

4. ACQUISITION

On October 2, 2017, the Company completed its acquisition of NauticStar which unites two leading and complementary boat brands and adds to its product diversity. The purchase price was $80,511, including customary adjustments for the amount of working capital in the acquired business at the closing date. A portion of the purchase price was deposited into an escrow account in order to secure certain post-closing obligations of the former members of NauticStar. The Company accounted for the transaction using the acquisition method in accordance with ASC 805, Business Combinations.

The total consideration has been allocated to the assets acquired and liabilities assumed based on estimates of their fair values as of the date of acquisition. The Company has recorded the tangible and intangible assets acquired and liabilities assumed based on their fair values as of October 2, 2017. The measurements of fair value were based upon estimates utilizing the assistance of third party valuation specialists.

The following table summarizes the purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed of NauticStar at the acquisition date:


Purchase Price:
Cash paid, net of cash acquired	$	80,511


Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value:
Accounts receivable	$	1,773
Inventories		6,358
Other current assets		94
Indemnification asset		166
Deferred income taxes		83
Property, plant and equipment		4,945
Identifiable intangible assets		36,000
Current liabilities		(4,858)
Unrecognized tax positions		(249)
Fair value of assets acquired and liabilities assumed		44,312
Goodwill		36,199
	$	80,511

The fair value estimates for the Company’s identifiable intangible assets acquired as part of the acquisition are as follows:


	Estimates of Fair Value		Estimated Useful Life (in years)
Definite-lived intangible:
Dealer network	$	20,000	10
Indefinite-lived intangible:
Trade name		16,000
Total identifiable intangible assets	$	36,000

The value allocated to inventories reflects the fair value of the acquired inventory based on the sales price of the inventory, less cost to complete and a reasonable profit margin. The value allocated to accounts receivable represents the fair value of the acquired receivables based on the expected collection of those receivables. The fair value of the identifiable intangible assets were determined based on the following approaches:

Dealer Network - The value associated with NauticStar’s dealer network is attributed to its long standing dealer distribution network. The estimate of fair value assigned to this asset was determined using the income approach, which requires an estimate or forecast of the expected future cash flows from the dealer network through the application of the multi-period excess earnings approach. The estimated remaining useful life of dealer network is approximately ten years.

Trade Name - The value attributed to NauticStar’s trade name was determined using the relief from royalty method, a variation of the income approach, which requires an estimate or forecast of the expected future cash flows. The trade name has an indefinite life.

The fair value of the definite-lived intangible asset is being amortized using the straight-line method to amortization of intangible assets expense over the estimated useful life. Indefinite-lived intangible assets are not amortized, but instead are evaluated for potential impairment on an annual basis in accordance with the provisions of ASC Topic 350, Intangibles—Goodwill and Other. The weighted average useful life of identifiable definite-lived intangible assets acquired was 10 years. Goodwill of $36,199 arising from the acquisition consists of future growth prospects including dealer expansion into new geographic markets and capacity expansion as well as intangible assets that do not qualify for separate recognition such as an assembled workforce. The indefinite-lived intangible asset and goodwill acquired are expected to be deductible for income tax purposes.

The value allocated to property, plant and equipment reflects the fair value of the acquired property, plant and equipment using a combination of the income, cost, and market approaches, which are primarily based on significant Level 2 and Level 3 assumptions, such as estimates of absorption period, lease-up costs, market rent, operating expenses, and terminal capitalization and discount rates.

Acquisition related costs of $1,486, which were incurred by the Company during the fiscal year ended June 30, 2018, were expensed during the period, and are included in general and administrative expenses in the consolidated statement of operations.

Pro Forma Financial Information:

The following unaudited pro forma consolidated results of operations for the fiscal year ended June 30, 2018, June 30, 2017 and June 30, 2016, assumes that the acquisition of NauticStar occurred as of July 1, 2016. The unaudited pro forma financial information combines historical results of MasterCraft and NauticStar, with adjustments for depreciation and amortization attributable to preliminary fair value estimates on acquired tangible and intangible assets for the respective periods. Non-recurring pro forma adjustments associated with the fair value step up of inventory were included in the reported pro forma cost of sales and earnings. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal year 2016 or the results that may occur in the future:


	Fiscal Years Ended
	2018		2017		2016
Net sales	$	350,794	$	305,505	$	285,321
Net income	$	41,802	$	22,592	$	10,327
Basic earnings per share	$	2.25	$	1.22	$	0.58
Diluted earnings per share	$	2.23	$	1.21	$	0.57

INVENTORIES

12 Months Ended

Jun. 30, 2018

INVENTORIES

INVENTORIES

5.INVENTORIES

Inventories at June 30, 2018 and 2017 consisted of the following:


	2018		2017
Raw materials and supplies	$	9,587	$	7,164
Work in process		2,822		1,772
Finished goods		9,026		3,427
Obsolescence reserve		(968)		(687)
Total inventories	$	20,467	$	11,676

Activity in the obsolescence reserve was as follows for the years ended June 30, 2018 and 2017:


	2018		2017
Beginning balance	$	(687)	$	(332)
Additions for NauticStar acquisition		(39)		—
Charged to costs and expenses		(462)		(399)
Disposals		220		44
Ending balance	$	(968)	$	(687)

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Jun. 30, 2018

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PREPAID EXPENSES AND OTHER CURRENT ASSETS

6. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets at June 30, 2018 and 2017, consisted of the following:


	2018		2017
Prepaid photo shoot	$	273	$	497
Insurance		974		765
Trade show deposits		111		73
Interest rate cap		525		90
Other		1,412		1,013
Total prepaid expenses and other current assets	$	3,295	$	2,438

PROPERTY, PLANT, AND EQUIPMENT

12 Months Ended

Jun. 30, 2018

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT

7.PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment — net at June 30, 2018 and 2017, consisted of the following:


	2018		2017
Land and improvements	$	1,725	$	1,125
Buildings and improvements		11,960		8,208
Machinery and equipment		22,570		16,189
Furniture and fixtures		943		847
Construction in progress		3,564		3,465
Total property, plant, and equipment		40,762		29,834
Less accumulated depreciation		(18,497)		(15,007)
Property, plant, and equipment — net	$	22,265	$	14,827

Depreciation expense for the years ended June 30, 2018, 2017, and 2016 was $3,489, $3,124 and $3,223, respectively.

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2018

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

8.GOODWILL AND OTHER INTANGIBLE ASSETS

As of June 30, 2018 and 2017, details of the Company’s goodwill were as follows:


	2018		2017
Goodwill attributable to MasterCraft	$	29,593	$	29,593
Goodwill attributable to NauticStar		36,199		—
Total goodwill	$	65,792	$	29,593

As of June 30, 2018 and 2017, details of the Company’s other intangible assets were as follows:


	June 30, 2018
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Dealer network	$	21,590	$	(2,544)	$	19,046
Total amortizable intangible assets		21,590		(2,544)		19,046
Trade names		32,000		—		32,000
Total intangible assets	$	53,590	$	(2,544)	$	51,046


	June 30, 2017
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Dealer network	$	1,590	$	(947)	$	643
Total amortizable intangible assets		1,590		(947)		643
Trade names		16,000		—		16,000
Total intangible assets	$	17,590	$	(947)	$	16,643

The amortizable intangible assets reflected in the table above were determined by management to have finite lives. The useful life for the MasterCraft and NauticStar dealer network intangible, which is 14 years and 10 years, respectively, was based on the average tenure of the dealer group. The trade names have been determined to have indefinite lives and are not being amortized, based on management’s expectation that trade names will generate cash flows for an indefinite period. Management expects to maintain usage of the trade names on existing products and introduce new products in the future under the trade names, thus extending their lives indefinitely.

Amortization expense for the years ended June 30, 2018, 2017, and 2016, was $1,597, $107 and $221, respectively. Estimated amortization expense for the five years subsequent to June 30, 2018, is shown in the following table:


Fiscal years ending June 30,
2019	$	2,107
2020		2,107
2021		2,107
2022		2,107
2023		2,107
and thereafter		8,511
Total	$	19,046

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Jun. 30, 2018

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities at June 30, 2018 and 2017, consisted of the following:


	2018		2017
Warranty	$	13,077	$	12,237
Self-insurance		703		763
Compensation and related accruals		2,995		1,691
Inventory repurchase contingent obligation		1,274		1,008
Interest		1,472		1,008
Dealer incentives		4,628		2,755
Other		3,717		1,948
Total accrued expenses and other current liabilities	$	27,866	$	21,410

The following table provides a roll forward of the accrued warranty liability for the years ended June 30, 2018 and 2017:


	2018		2017
Beginning balance	$	12,237	$	11,392
Additions for NauticStar acquisition		945		—
Provisions		6,523		4,723
Payments made		(4,427)		(3,052)
Adjustments to preexisting warranties		(2,201)		(825)
Ending balance	$	13,077	$	12,237

Activity in dealer incentives for the years ended June 30, 2018 and 2017 was as follows:


	2018		2017
Beginning balance	$	2,755	$	4,336
Additions for NauticStar acquisition		57		—
Provisions		8,414		11,160
Payments made		(6,598)		(12,741)
Ending balance	$	4,628	$	2,755

FAIR VALUE MEASUREMENTS

12 Months Ended

Jun. 30, 2018

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

10. FAIR VALUE MEASUREMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

When determining the fair value measurements for assets or liabilities required or permitted to be recorded at and/or marked to fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Company looks to market observable data for similar assets.

The following summarizes the basis used to measure certain financial assets and liabilities at fair value as of June 30, 2018:


	2018 Fair Value Measurements Using
	Level 1		Level 2		Level 3
Asset — interest rate cap	$	—	$	525	$	—

The following summarizes the basis used to measure certain financial assets and liabilities at fair value as of June 30, 2017:


	2017 Fair Value Measurements Using
	Level 1		Level 2		Level 3
Asset — interest rate cap	$	—	$	90	$	—

The interest rate cap is valued utilizing pricing models taking into account inputs such as interest rates and notional amounts. Fair value measurements for the Company’s interest rate cap are classified under Level 2 because such measurements are based on significant other observable inputs. There were no transfers of assets or liabilities between Level 1 and Level 2 during the fiscal year ended June 30, 2018.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

LONG-TERM DEBT

12 Months Ended

Jun. 30, 2018

LONG-TERM DEBT

LONG-TERM DEBT

11. LONG-TERM DEBT

Long-term debt outstanding at June 30, 2018 and 2017 is as follows:


	2018		2017
Revolving credit facility	$	—	$	—
Senior secured term loan		76,656		35,135
Debt issuance costs on term loan		(1,500)		(658)
Total debt		75,156		34,477
Less current portion of long-term debt		5,475		3,904
Less current portion of debt issuance costs on term loan		(406)		(217)
Long-term debt — less current portion	$	70,087	$	30,790

In December 2013, certain of the Company’s subsidiaries entered into a credit and guaranty agreement with Fifth Third Bank, as the agent and letter of credit issuer, SunTrust Bank as the syndication agent and the other lenders party thereto, the (“Senior Secured Credit Facility”). The Senior Secured Credit Facility provided, among other things, for (i) an initial term loan commitment of $25,000; and (ii) a revolving loan commitment of $10,000. In November 2014, the Company entered into a first amendment to the Senior Secured Credit Facility to, among other things, increase the term loan facility to $50,000, repay all amounts outstanding under our Senior Secured PIK Notes due 2014 with the additional borrowings under our Term Loan Facility and extend the maturity date to November 26, 2019. In March 2015, the Company entered into an Amended and Restated Credit and Guaranty Agreement (the “First Amended Credit Agreement”) which increased the term loan commitment from $50,000 to $75,000 and increased the revolving loan to $30,000. The Company initially borrowed $20,000 on the revolving loan and repaid $10,000 during March 2015. The Company used $44,000 of the proceeds to pay a cash dividend to common stockholders in March 2015.

In July 2015, the Company repaid all outstanding borrowings under its $75,000 term loan facility and its outstanding borrowings under its $30,000 revolving line of credit with the proceeds received from the IPO. The Company recorded a loss on debt extinguishment of $716, consisting of a charge of $676 to extinguish the debt discount and $40 in unamortized deferred financing costs incurred under its $75,000 term loan facility. In February 2016, the Company amended its Senior Secured Credit Facility to provide that the Company may repurchase shares in an aggregate amount not to exceed $20,000.

In May 2016, the Company entered into a Second Amended and Restated Credit and Guaranty Agreement with Fifth Third Bank, as the agent and letter of credit issuer, and the lenders party thereto (the “Prior Credit Agreement”). The Prior Credit Agreement replaced the Company’s First Amended Credit Agreement, dated March 13, 2015 (as amended in February 2016). The Prior Credit Agreement provided the Company with an $80,000 senior secured credit facility, consisting of a $50,000 term loan and a $30,000 revolving credit facility. The Company used the proceeds to pay a $79,945 cash dividend to common stockholders in June 2016. The cash dividend payment per share was $4.30 based on shares outstanding as of June 6, 2016.

On October 2, 2017, the Company entered into a Third Amended and Restated Credit and Guaranty Agreement with Fifth Third Bank, as the agent and letter of credit issuer, and the lenders party thereto (the “Third Amended Credit Agreement”). The Third Amended Credit Agreement replaced and paid off the Company’s Prior Credit Agreement, dated May 27, 2016. The Third Amended Credit Agreement provides the Company with a $145,000 senior secured credit facility, consisting of a $115,000 term loan (the “Third Term Loan”) and a $30,000 revolving credit facility. A portion of the proceeds from the Third Amended Credit Agreement were used for the Company’s acquisition of NauticStar. The Third Amended Credit Agreement is collateralized by a first-priority security interest in substantially all of the Company’s assets. Obligations under the Third Amended Credit Agreement are guaranteed by the Company and each of its domestic subsidiaries.

The Third Amended Credit Agreement bears interest, at the Company’s option, at either the prime rate plus an applicable margin ranging from 0.75% to 1.75% or at an adjusted LIBOR plus an applicable margin ranging from 1.75% to 2.75%, in each case based on the Company’s senior leverage ratio. Based on the Company’s senior leverage ratio for the fiscal year ended June 30, 2018, the applicable margin for loans accruing interest at the prime rate is 1.00% and the applicable margin for loans accruing interest at LIBOR is 2.00%. In connection with the Third Amended Credit Agreement, the Company paid $1,240 of deferred financing costs. The Third Term Loan will mature and all remaining amounts outstanding thereunder will be due and payable on October 2, 2022. During the fiscal year ended June 30, 2018, the Company made voluntary payments on the Third Term Loan of $35,000 out of excess cash. As of June 30, 2018 and June 30, 2017, the Company’s unamortized deferred financing costs were $1,883 and $1,139, respectively. These costs are being amortized over the term of the Third Amended Credit Agreement.

The Company had no borrowings under the revolving credit facilities as of June 30, 2018 and June 30, 2017. As of June 30, 2018 and 2017, the Company had net availability of $30,000 and $29,750, respectively. Availability was reduced by outstanding letters of credit of $250 at June 30, 2017. As of June 30, 2018 and 2017, the effective interest rate on borrowings outstanding were 4.280% and 3.803%, respectively. As of June 30, 2018 the Company was in compliance with all of its debt covenants under its Third Amended Credit Agreement.

Long-term debt maturities for the Third Term Loan subsequent to June 30, 2018 are as follows:


Fiscal years ending June 30,
2019	$	5,475
2020		5,973
2021		7,466
2022		7,964
2023		49,778
Total	$	76,656

INCOME TAXES

12 Months Ended

Jun. 30, 2018

INCOME TAXES

INCOME TAXES

12. INCOME TAXES

Earnings from continuing operations before income taxes and equity by jurisdiction were all in the U.S. except for income of $112 and a loss of $53 in 2018 and 2017, respectively.

For the years ended June 30, the components of the provision for income taxes are as follows:


	For the Years Ended June 30,
	2018		2017		2016
Current income tax expense:
Federal	$	12,140	$	5,803	$	10,530
State		276		1,584		2,020
Benefit of operating loss carryforwards		(117)		(118)		(319)
Total current tax expense		12,299		7,269		12,231
Deferred tax expense (benefit):
Federal		525		4,154		(3,583)
State		32		300		(340)
Total deferred tax expense (benefit)		557		4,454		(3,923)
Income tax expense	$	12,856	$	11,723	$	8,308

The difference between the statutory and the effective federal tax rate for the periods below is attributable to the following:


	For the Years Ended June, 30
	2018		2017		2016
Statutory income tax rate	28.06	%	35.00	%	35.00	%
State taxes (net of federal income tax benefit and valuation allowance)	2.32		2.83		0.41
Change in valuation allowance	—		—		0.06
Tax credits	(0.44)		(0.62)		(2.82)
Revalue of deferred taxes for change in federal tax rate	(1.23)		—		—
Uncertain tax positions	(1.73)		1.93		6.06
Permanent differences	(2.41)		(1.72)		6.36
Other	(0.02)		0.04		(0.21)
Effective income tax rate	24.55	%	37.46	%	44.86	%

As of June 30, 2018 and 2017, a summary of the significant components of the Company’s deferred tax assets and liabilities was as follows:


	2018		2017
Deferred tax assets:
Warranty reserves	$	2,898	$	4,392
Repurchase agreements		247		362
Other reserves		—		121
Unrecognized tax benefits		357		859
Stock Compensation		467		336
State net operating loss		130		130
Foreign net operating loss		81		104
Valuation allowance		(211)		(234)
Total deferred tax assets		3,969		6,070
Deferred tax liabilities:
Depreciation		(1,262)		(984)
Intangible asset basis difference		(4,009)		(6,037)
Other		(125)		(2)
Total deferred tax liabilities		(5,396)		(7,023)
Net deferred tax liabilities	$	(1,427)	$	(953)


	2018		2017
Noncurrent deferred tax liabilities		(1,427)		(953)
Net deferred tax liabilities	$	(1,427)	$	(953)

The Tax Cuts and Jobs Act (“Tax Reform Act”), which became effective December 22, 2017, overhauls U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35% to 21% (blended rate in year one for fiscal year filers), implementing a territorial tax system, imposing a one time “deemed repatriation” tax on all untaxed offshore earnings, and adding/modifying/deleting several major tax deductions significant to the Company.

The Company’s deferred tax liabilities decreased $647 from the impact of the corporate tax rate change from the Tax Reform Act.

The Company has state net operating loss (NOL) carryforwards of $3,013 that expire in varying years ranging from June 30, 2024 to June 30, 2029, and foreign NOL carryforwards of $387 that can be carried forward indefinitely. However, the Company determined that it is more likely than not that the benefit from these state and foreign NOL carryforwards will not be realized. In recognition of this risk, the Company has provided a full valuation allowance on the deferred tax assets relating to these state and foreign NOL carryforwards.

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued amounts for interest and penalties, is as follows:


	2018		2017
Balance at July 1	$	2,442	$	2,054
Additions based on tax positions related to the current year		373		413
Additions for tax positions of prior years		180		—
Reductions for tax positions of prior years		(61)		(25)
Settlements of tax positions from prior years		(1,223)		—
Balance at June 30	$	1,711	$	2,442

Of this total, $1,308 and $910 as of June 30, 2018 and 2017, respectively represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. The total amount of interest and penalties recorded in the consolidated statements of operations for the years ended June 30, 2018, and 2017 was a benefit of $288 and an expense of $355, respectively. The amounts accrued for interest and penalties at June 30, 2018 and 2017 were $271 and $490 respectively and is presented in unrecognized tax positions on the accompanying consolidated balance sheets.

In general, it is the practice and intention of the Company to reinvest the earnings of its non-U.S. subsidiaries in those operations. As of June 30, 2018, the Company has not made a provision for U.S. or additional foreign withholding taxes on investments in foreign subsidiaries that are indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances.

The Company and its subsidiaries are subject to U.S. federal income tax, as well as various other income state taxes and foreign income taxes. The Company is no longer subject to examination by taxing authorities for years before June 30, 2015. The Company expects the total amount of unrecognized benefits to increase by approximately $506 in the next twelve months. The Company records unrecognized tax benefits as liabilities in accordance with ASC 740 and adjust these liabilities when its judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available.

STOCK-BASED COMPENSATION

12 Months Ended

Jun. 30, 2018

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

13.STOCK-BASED COMPENSATION

During fiscal year ended June 30, 2015 the Company adopted the Amended and Restated MCBC Holdings, Inc. 2015 Incentive Award Plan (“2015 Plan”) in order to facilitate the grant of cash and equity incentives to non-employee directors, employees, and consultants of the Company and certain of its affiliates and to enable the Company and certain of its affiliates to obtain and retain the services of these individuals, which is essential to our long-term success. In July 2015, the Board amended and restated the Company's 2015 Plan which became effective just prior to the closing of the Company’s initial public offering to increase the shares available for issuance under the 2015 Plan from 1,518,958 shares to 2,458,633 shares. The Plan provides for the grant of stock options, including incentive stock options, or ISOs, and nonqualified stock options, or NSOs, restricted stock, dividend equivalents, stock payments, restricted stock units, or RSUs, restricted stock awards, or RSAs, deferred stock, deferred stock units, performance awards, stock appreciation rights, or SARs, performance stock units, or PSUs, and cash awards. As of June 30, 2018, there were 1,675,427 shares available for issuance under the 2015 Plan.

Restricted Stock Awards

In May 2015, the Company granted to certain employees 841,585 shares of restricted stock under the 2015 Plan. For accounting purposes, the vesting conditions were not probable at the time of the grant. Upon completion of the IPO in July 2015, the vesting conditions had been met at which time the restricted shares had a per share fair value of $15.00, which was the initial public offering price. The award included performance conditions that were based on either an initial public offering or a change in control and until consummation of the event it was not considered probable for accounting purposes. In July 2015, the Company granted 47,146 shares of restricted stock under the 2015 Plan to certain non-employee directors at a per share fair value of $15.66, which was the closing price of the stock on July 24, 2015. For these restricted stock awards, the Company recognized stock-based compensation through the vesting date on a straight-line basis over 181 days from the Company’s initial public offering date. In April 2016, the Company granted 6,140 shares of restricted stock under the 2015 Plan to certain non-employee directors at a per share fair value of $13.41, which was the closing price of the stock on April 2, 2016. For these restricted stock awards, the Company recognized stock-based compensation through the vesting date of June 30, 2016.

Beginning in fiscal year 2017, all RSAs granted to non-employees vest over the remainder of that fiscal year, and all RSAs granted to employees vest in three equal annual installments. Additionally, all RSAs have been granted under the 2015 Plan at a per share fair value equal to the market value of the Company’s common stock on the grant date.

The Company had the following restricted stock award activity during fiscal 2018: July 2017, certain employees were granted 23,932 RSAs; July 2017, certain non-employee directors were granted 17,064 RSAs; November 2017, certain employees were granted 5,759 RSAs; and, June 2018, certain employees were granted 896 RSAs.

The Company had the following restricted stock award activity during fiscal 2017: August 2016, certain employees were granted 28,391 RSAs; August 2016, certain non-employee directors were granted 10,770 RSAs; December 2016, two new non-employee directors were granted 5,572 RSAs; January 2017, a new non-employee director was granted 1,968 RSAs; and, May 2017 a new non-employee director was granted 430 RSAs.

During the fiscal years ended June 30, 2018, 2017 and 2016, the Company recognized $616, $321, and $13,444, respectively, in stock-based compensation from RSAs.

A summary of restricted stock award activity for the years ended June 30, 2018, 2017 and 2016, is as follows:


	Number of Restricted Stock Awards Outstanding		Weighted Average Grant Date Fair Value
Total Non-vested Restricted Stock Awards at June 30, 2015	—	$	—
Granted	894,850		15.02
Vested	(894,850)		15.02
Forfeited	—		—
Total Non-vested Restricted Stock Awards at June 30, 2016	—	$	—
Granted	47,131		12.22
Vested	(18,740)		18.94
Forfeited	(1,974)		19.55
Total Non-vested Restricted Stock Awards at June 30, 2017	26,417	$	12.22
Granted	47,651		19.88
Vested	(25,870)		16.79
Forfeited	(4,888)		15.89
Total Non-vested Restricted Stock Awards at June 30, 2018	43,310	$	17.28

Performance Stock Units

In August 2016, the Company began to grant performance stock units (“PSUs”) under its 2015 Plan to certain employees. The value is based on long-term market performance targets using a Monte Carlo Simulation model, which considers the likelihood of all possible outcomes and determines the number of shares expected to vest under each simulation and the expected stock price at that level. The awards will be earned based upon the Company’s obtainment of certain performance criteria over a three-year period. The performance period for the awards commence on July 1 of the fiscal year in which they were granted and continue for a three-year period, ending on June 30 of the applicable year. Following the determination of the Company’s achievement with respect to the performance criteria, the amount of shares awarded will be subject to adjustment based upon the application of a total shareholder return (“TSR”) modifier. The probability of achieving the performance criteria is assessed quarterly, and compensation expense is recognized ratably over the performance period in accordance with ASC 718, Compensation—Stock Compensation.

The Company had the following PSU activity during fiscal 2018: July 2017, certain employees were granted 23,929 PSUs; and November 2017, certain employees were granted 2,487 PSUs.

The Company had the following PSU activity during fiscal 2017: August 2016, certain employees were granted 42,586 PSUs.

The Company recognized $355 and $150 in stock-based compensation expense from these PSUs during the fiscal year ended June 30, 2018 and June 30, 2017, respectively.

A summary of performance stock award activity for the years ending June 30, 2018, 2017 and 2016, is as follows:


	Number of Performance Stock Units Outstanding		Weighted Average Grant Date Fair Value
Total Non-vested Performance Stock Units at June 30, 2016	—	$	—
Granted	42,586		11.85
Vested	—		—
Forfeited	(1,974)		11.85
Total Non-vested Performance Stock Units at June 30, 2017	40,612	$	11.85
Granted	26,416		19.62
Vested	—		—
Forfeited	(7,700)		14.42
Total Non-vested Performance Stock Units at June 30, 2018	59,328	$	14.98

Nonqualified Stock Options

In July 2015, the Company granted 137,786 NSOs to certain employees at an option price equal to the $15.00 per share of the Company’s common stock, which was the initial public offering price, which vest in 25% increments annually on each of the first four anniversaries of the grant date. During the fiscal year ended June 30, 2018 and 2017, the Company recognized $215 and $240, respectively, from these NSOs in stock-based compensation.

The Company estimated the grant date fair value of stock options using the Black-Scholes pricing model assuming a risk-free interest rate of 1.93%, an expected term of 6.25 years, no dividend yield and a volatility rate of 56.7%. The Company determined that it did not have sufficient information on which to base a reasonable and supportable estimate of expected volatility of its share price, because of limited or no active stock transactions with third parties. Therefore, the Company has selected to use the calculated value method. Under this method, the Company used comparable public companies to estimate expected volatility. The Company used historical data to estimate option exercise and post-vesting termination behavior. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

A summary of option activity for the years ending June 30, 2018, 2017 and 2016 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
		Exercise		Contractual	Intrinsic
	Shares	Price		Term (Yrs.)	Value
Outstanding at June 30, 2015	86,985	$	4.03	4.7	$	833
Granted	137,786	$	15.00	10.0	$	—
Exercised	(86,985)	$	4.03	—	$	—
Forfeited or expired	(15,146)	$	15.00	—	$	—
Outstanding at June 30, 2016	122,640	$	10.70	9.1	$	43
Granted	—	$	—	—	$	—
Exercised	(1,578)	$	10.70	—	$	—
Forfeited or expired	(4,734)	$	10.70	—	$	—
Outstanding at June 30, 2017	116,328	$	10.70	8.1	$	1,030
Granted	—	$	—	—	$	—
Exercised	(10,905)	$	10.70	—	$	—
Forfeited or expired	(12,298)	$	10.70	—	$	—
Outstanding at June 30, 2018	93,125	$	10.70	7.1	$	1,700

Fully vested and exercisable at June 30, 2016	—	$	—	—	$	—
Fully vested and exercisable at June 30, 2017	29,084	$	10.70	8.1	$	257
Fully vested and exercisable at June 30, 2018	41,111	$	10.70	7.1	$	750

Pursuant to the terms of the 2015 Plan, the exercise price of options were reduced by $4.30, the amount of the special cash dividend paid on June 10, 2016, from an exercise price of $15.00 to an exercise price of $10.70. The other terms of the options remain unchanged.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2018

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

14. COMMITMENTS AND CONTINGENCIES

The Company leases equipment and warehouse space under operating lease agreements expiring through 2024. Rental expense was $666, $603, and $468 during the years ended June 30, 2018, 2017, and 2016, respectively. Future minimum rental payments under all non-cancelable operating leases with remaining lease terms in excess of one year at June 30, 2018, are as follows:


Fiscal years ending June 30,
2019	$	598
2020		414
2021		396
2022		352
2023		137
and thereafter		1
Total	$	1,898

Under certain conditions, the Company is obligated to repurchase new inventory repossessed from dealerships by financial institutions that provide credit to boat dealerships. Under the terms of these repurchase agreements, the Company is obligated to repurchase inventory repossessed by these financial institutions for a period ranging from 18 months to 30 months from the date of the original sale of the products to the respective dealers. Repossession of products by the financial institutions normally occurs when a dealer goes out of business or defaults with a lender. The maximum obligation of the Company under such floor plan agreements aggregated approximately $129,492 and $94,046 as of June 30, 2018 and 2017, respectively. No units were repurchased for the fiscal year ended 2018. The Company recorded a liability of $1,265 and $1,008 as of June 30, 2018 and 2017, respectively, after giving effect to proceeds anticipated to be received from the resale of those products to alternative dealers, and taking into consideration the credit quality of the dealers.

The Company is engaged in an exclusive contract with Ilmor Marine to provide engines for its MasterCraft boats. This contract makes Ilmor Marine the only supplier to MasterCraft for in-board engines and expires June 30, 2023. The Company is obligated to purchase a minimum number of engines during each model year and penalties can be assessed if the Company does not meet the purchase requirements. The Company did not incur any penalties related to engine purchase shortfalls for the years ended June 30, 2018 and 2017. Estimated purchases under the agreement range from approximately $26,000 to $30,000 for each of the upcoming years ending June 30, 2019 through 2023.

The Company is engaged in an exclusive contract with Yamaha Motors to provide engines for its NauticStar boats. This contract makes Yamaha Motors the only supplier to NauticStar for out-board engines and expires June 30, 2023. The Company is obligated to purchase a minimum number of engines during each model year and penalties can be assessed if the Company does not meet the purchase requirements. The Company did not incur any penalties related to engine purchase shortfalls for the year ended June 30, 2018. Estimated purchases under the agreement range from approximately $23,000 to $26,000 for each of the upcoming years ending June 30, 2019 and 2020.

Future minimum purchase commitments under supply and other agreements are as follows:


Fiscal years ending June 30,
2019	$	2,300
2020		3,112
2021		2,300
2022		2,300
2023		2,835
and thereafter		—
Total	$	12,847

The Company is involved in certain claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s financial condition or results of operations.

COMMON STOCK	12 Months Ended
COMMON STOCK	Jun. 30, 2018
COMMON STOCK
COMMON STOCK	15. COMMON STOCK As of June 30, 2018, the Company has authorized 100,000,000 shares of common stock, par value of $0.01 per share. Holders of common stock are each entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Holders are entitled to receive dividends when and if declared by the board of directors. In the event of liquidation, dissolution, or winding up, holders of common stock are entitled to receive a pro rata share of remaining assets available for distribution. Initial Public Offering — On July 22, 2015, the Company completed the initial public offering of its common stock, in which it issued and sold 6,071,429 shares of common stock (exclusive of 910,714 shares of common stock sold by certain entities associated with Wayzata Investment Partners (collectively, the “Selling Stockholders”) pursuant to the exercise of an over-allotment option granted to the underwriters in connection with the offering) at a public offering price of $15.00 per share after giving effect to the 11.139-for-1 stock split consummated on July 22, 2015. The aggregate net proceeds received by the Company from the initial public offering were $81,762 after deducting $6,375 for underwriting discounts and commissions and $2,934 for offering expenses paid by the Company of which $827 were paid during the year ended June 30, 2016. On May 26, 2016, the Company declared a special dividend of $4.30 per share which was paid on June 10, 2016. Follow-on Offering — In September 2016, the Company completed a follow-on offering of 4,600,000 shares of its common stock held by the Selling Stockholders at a public offering price of $10.25 per share. This included 600,000 shares sold by the Selling Stockholders pursuant to the over-allotment option granted to the underwriters, which was exercised concurrently with the closing of the follow-on offering. The Company received no proceeds from the follow-on offering. The Company paid $254 for offering expenses incurred during September 2016, which are reflected as a reduction to paid-in capital. Secondary Offerings — In December 2016, the Company completed two secondary offerings for a total of 2,995,000 shares of its common stock held by the Selling Stockholders. The public offering price for the first offering consisting of 1,495,000 shares was $13.35 per share which included 195,000 shares sold by the Selling Stockholders pursuant to the over-allotment option granted to the underwriter, which was exercised concurrently with the closing of the secondary offering. The public offering price for the second offering consisting of 1,500,000 shares was $13.45 per share. The Company received no proceeds from the secondary offerings and the Selling Stockholders had divested all outstanding shares of the Company’s common stock acquired in connection with the Company’s initial public offering. The Company incurred $181 for offering expenses during December 2016, which are reflected as a reduction to paid-in capital.

EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2018

EARNINGS PER SHARE

EARNINGS PER SHARE

16. EARNINGS PER SHARE

The factors used in the earnings per share computation are as follows:


	2018		2017		2016
Net income	$	39,653	$	19,570	$	10,210
Weighted average common shares — basic		18,619,793		18,592,885		17,849,319
Dilutive effect of assumed exercises of stock options		38,835		4,488		50,775
Dilutive effect of assumed restricted share awards\units		55,904		23,335		268,853
Dilutive effect of assumed exercises of common stock warrant		—		—		88,060
Weighted average outstanding shares — diluted		18,714,531		18,620,708		18,257,007
Basic earnings per share	$	2.13	$	1.05	$	0.57
Diluted earnings per share	$	2.12	$	1.05	$	0.56

There were no anti-dilutive options excluded from the dilutive shares outstanding for the year ended June 30, 2018. For the year ended June 30 2017 and June 30, 2016, stock options for 91,980 and 124,020 shares of common stock, respectively, were not considered in computing diluted earnings per share because they were anti-dilutive.

SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2018

SEGMENT INFORMATION

SEGMENT INFORMATION

17. SEGMENT INFORMATION

The Company designs, manufactures, and markets recreational sport boats and has two operating and reportable segments: MasterCraft and NauticStar. The Company’s segments are defined by management’s reporting structure, product brands, and distribution channels. The MasterCraft product brand consists of recreational performance boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. The Company distributes the MasterCraft product brand through its dealer network. The NauticStar product brand consists of recreational boats primarily used for salt water fishing, and general recreational boating. The Company distributes the NauticStar product brand through its dealer network. The Company’s chief operating decision maker (“CODM”) regularly reviews the operating performance of each product brand including measures of performance based on income from operations. The Company considers each of the product brands to be an operating segment and has further concluded that presenting disaggregated information of these two operating segments provides meaningful information as certain economic characteristics are dissimilar as well as the characteristics of the customer base served.

Sales outside of North America accounted for 7.5%, 9.1%, and 8.6% of net sales of the MasterCraft segment for the years ended the years ended June 30, 2018, 2017, and 2016, respectively. The Company has no significant assets, concentration of sales to individual dealers or countries outside of North America during the years ended June 30, 2018 and 2017.

Management evaluates performance based on business segment operating income. The Company files a consolidated income tax return and does not allocate income taxes and other corporate level expenses including interest to operating segments. All corporate costs are allocated to MasterCraft. All amounts in the accompanying consolidated statements of operations for the years ended June 30, 2017 and 2016 pertain exclusively to the MasterCraft segment.

The following tables present financial information for the Company’s reportable segments for the year ended June 30, 2018, and the Company’s financial position at June 30, 2018 and June 30, 2017, respectively.


	MasterCraft		NauticStar		Consolidated
Net sales	$	266,319	$	66,406	$	332,725
Cost of sales		188,218		54,143		242,361
Operating income		49,363		6,620		55,983
Depreciation and amortization		3,283		1,803		5,086


		As of June 30, 2018		As of June 30, 2017
Assets
MasterCraft	$	89,058	$	83,321
NauticStar		87,866		—
Total Assets(a)	$	176,924	$	83,321

(a)

Total assets as of June 30, 2018 includes goodwill of $29,593 and $36,199 related to MasterCraft and NauticStar, respectively. Total assets as of June 30, 2017 includes goodwill of $29,593 related to MasterCraft.

QUARTERLY FINANCIAL REPORTING (UNAUDITED)

12 Months Ended

Jun. 30, 2018

QUARTERLY FINANCIAL REPORTING (UNAUDITED)

QUARTERLY FINANCIAL REPORTING (UNAUDITED)

18. QUARTERLY FINANCIAL REPORTING (UNAUDITED)

The following table sets forth summary quarterly financial information for the years ended June 30, 2018 and 2017.


		June 30		April 1		December 31		October 1
		2018		2018		2017		2017

Net sales	$	95,430	$	93,811	$	78,435	$	65,049
Gross profit		27,885		24,382		19,934		18,163
Operating income		18,938		15,199		10,782		11,064
Net income	$	13,144	$	11,454	$	8,009	$	7,046
Basic earnings per common share	$	0.71	$	0.62	$	0.43	$	0.38
Diluted earnings per common share	$	0.70	$	0.61	$	0.43	$	0.38
Weighted average shares used for computation of:
Basic earnings per common share		18,619,834		18,622,083		18,619,834		18,615,100
Diluted earnings per common share		18,702,352		18,728,424		18,702,352		18,686,626


		June 30		April 2		January 1		October 2
		2017		2017		2017		2016

Net sales	$	58,325	$	58,486	$	51,134	$	60,689
Gross profit		16,456		14,925		14,286		17,809
Operating income		10,559		4,282		7,039		11,635
Net income	$	6,315	$	2,241	$	4,031	$	6,983
Basic earnings per common share	$	0.34	$	0.12	$	0.22	$	0.38
Diluted earnings per common share	$	0.34	$	0.12	$	0.22	$	0.38
Weighted average shares used for computation of:
Basic earnings per common share		18,593,501		18,593,296		18,592,936		18,591,808
Diluted earnings per common share		18,659,246		18,625,904		18,605,078		18,592,603

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2018

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Immaterial Correction of Error

Use of Estimates

Revenue Recognition

Dealer Incentives

Accrued rebates are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets.

Floor Plan Reimbursement Costs

Shipping and Handling Costs

Accounts Receivable

Cash and Cash Equivalents

Concentrations of Credit and Business Risk

Inventories

Property, Plant, and Equipment

Ranges of asset lives used for depreciation purposes are:


Buildings and improvements	7	-	40	years
Machinery and equipment	3	-	7	years
Furniture and fixtures	3	-	7	years

Goodwill and Other Intangible Assets

Impairment of Long-Lived Assets Other Than Indefinite-Lived Assets

Income Taxes

The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Product Warranties

Research and Development

Self-Insurance

Deferred Financing Costs

Stock-Based Compensation

Advertising

Fair Value Measurements

Fair Value of Financial Instruments

Repurchase Commitments

Earnings Per Common Share

Operating Leases

Segment Information

New Accounting Pronouncements Issued, Adopted and Not Yet Adopted

New Accounting Pronouncements Issued But Not Yet Adopted

New Accounting Pronouncements Issued And Adopted

There are no other recently issued accounting pronouncements that are expected to have a material impact on our financial position or results of operations and related disclosures

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2018

SIGNIFICANT ACCOUNTING POLICIES

Schedule of ranges of asset lives used for depreciation purposes


Buildings and improvements	7	-	40	years
Machinery and equipment	3	-	7	years
Furniture and fixtures	3	-	7	years

ACQUISITION (Tables)

12 Months Ended

Jun. 30, 2018

ACQUISITION

Schedule of purchase price allocation based on the estimated fair values of assets acquired and liabilities assumed as of the acquisition date

Purchase Price:
Cash paid, net of cash acquired	$	80,511


Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value:
Accounts receivable	$	1,773
Inventories		6,358
Other current assets		94
Indemnification asset		166
Deferred income taxes		83
Property, plant and equipment		4,945
Identifiable intangible assets		36,000
Current liabilities		(4,858)
Unrecognized tax positions		(249)
Fair value of assets acquired and liabilities assumed		44,312
Goodwill		36,199
	$	80,511

Schedule of fair value estimates of identifiable intangible assets acquired

	Estimates of Fair Value		Estimated Useful Life (in years)
Definite-lived intangible:
Dealer network	$	20,000	10
Indefinite-lived intangible:
Trade name		16,000
Total identifiable intangible assets	$	36,000

Schedule of pro forma financial information


	Fiscal Years Ended
	2018		2017		2016
Net sales	$	350,794	$	305,505	$	285,321
Net income	$	41,802	$	22,592	$	10,327
Basic earnings per share	$	2.25	$	1.22	$	0.58
Diluted earnings per share	$	2.23	$	1.21	$	0.57

INVENTORIES (Tables)

12 Months Ended

Jun. 30, 2018

INVENTORIES

Schedule of inventories


	2018		2017
Raw materials and supplies	$	9,587	$	7,164
Work in process		2,822		1,772
Finished goods		9,026		3,427
Obsolescence reserve		(968)		(687)
Total inventories	$	20,467	$	11,676

Schedule of activity in the obsolescence reserve


	2018		2017
Beginning balance	$	(687)	$	(332)
Additions for NauticStar acquisition		(39)		—
Charged to costs and expenses		(462)		(399)
Disposals		220		44
Ending balance	$	(968)	$	(687)

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Jun. 30, 2018

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Schedule of prepaid expenses and other current assets


	2018		2017
Prepaid photo shoot	$	273	$	497
Insurance		974		765
Trade show deposits		111		73
Interest rate cap		525		90
Other		1,412		1,013
Total prepaid expenses and other current assets	$	3,295	$	2,438

PROPERTY, PLANT, AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2018

PROPERTY, PLANT, AND EQUIPMENT

Schedule of property, plant, and equipment - net


	2018		2017
Land and improvements	$	1,725	$	1,125
Buildings and improvements		11,960		8,208
Machinery and equipment		22,570		16,189
Furniture and fixtures		943		847
Construction in progress		3,564		3,465
Total property, plant, and equipment		40,762		29,834
Less accumulated depreciation		(18,497)		(15,007)
Property, plant, and equipment — net	$	22,265	$	14,827

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2018

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of changes in the carrying amount of goodwill


	2018		2017
Goodwill attributable to MasterCraft	$	29,593	$	29,593
Goodwill attributable to NauticStar		36,199		—
Total goodwill	$	65,792	$	29,593

Schedule of intangible assets other than goodwill


	June 30, 2018
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Dealer network	$	21,590	$	(2,544)	$	19,046
Total amortizable intangible assets		21,590		(2,544)		19,046
Trade names		32,000		—		32,000
Total intangible assets	$	53,590	$	(2,544)	$	51,046


	June 30, 2017
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Dealer network	$	1,590	$	(947)	$	643
Total amortizable intangible assets		1,590		(947)		643
Trade names		16,000		—		16,000
Total intangible assets	$	17,590	$	(947)	$	16,643

Schedule of estimated amortization expense


Fiscal years ending June 30,
2019	$	2,107
2020		2,107
2021		2,107
2022		2,107
2023		2,107
and thereafter		8,511
Total	$	19,046

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Jun. 30, 2018

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	2018		2017
Warranty	$	13,077	$	12,237
Self-insurance		703		763
Compensation and related accruals		2,995		1,691
Inventory repurchase contingent obligation		1,274		1,008
Interest		1,472		1,008
Dealer incentives		4,628		2,755
Other		3,717		1,948
Total accrued expenses and other current liabilities	$	27,866	$	21,410

Schedule of roll forward of the accrued warranty liability


	2018		2017
Beginning balance	$	12,237	$	11,392
Additions for NauticStar acquisition		945		—
Provisions		6,523		4,723
Payments made		(4,427)		(3,052)
Adjustments to preexisting warranties		(2,201)		(825)
Ending balance	$	13,077	$	12,237

Schedule of activity in accrued dealer incentives


	2018		2017
Beginning balance	$	2,755	$	4,336
Additions for NauticStar acquisition		57		—
Provisions		8,414		11,160
Payments made		(6,598)		(12,741)
Ending balance	$	4,628	$	2,755

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 2018

FAIR VALUE MEASUREMENTS

Assets measured at fair value on a recurring basis

The following summarizes the basis used to measure certain financial assets and liabilities at fair value as of June 30, 2018:


	2018 Fair Value Measurements Using
	Level 1		Level 2		Level 3
Asset — interest rate cap	$	—	$	525	$	—

The following summarizes the basis used to measure certain financial assets and liabilities at fair value as of June 30, 2017:


	2017 Fair Value Measurements Using
	Level 1		Level 2		Level 3
Asset — interest rate cap	$	—	$	90	$	—

LONG-TERM DEBT (Tables)

12 Months Ended

Jun. 30, 2018

LONG-TERM DEBT

Schedule of long-term debt outstanding


	2018		2017
Revolving credit facility	$	—	$	—
Senior secured term loan		76,656		35,135
Debt issuance costs on term loan		(1,500)		(658)
Total debt		75,156		34,477
Less current portion of long-term debt		5,475		3,904
Less current portion of debt issuance costs on term loan		(406)		(217)
Long-term debt — less current portion	$	70,087	$	30,790

Schedule of maturities of long-term debt


Fiscal years ending June 30,
2019	$	5,475
2020		5,973
2021		7,466
2022		7,964
2023		49,778
Total	$	76,656

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2018

INCOME TAXES

Schedule of the components of the provision for income taxes


	For the Years Ended June 30,
	2018		2017		2016
Current income tax expense:
Federal	$	12,140	$	5,803	$	10,530
State		276		1,584		2,020
Benefit of operating loss carryforwards		(117)		(118)		(319)
Total current tax expense		12,299		7,269		12,231
Deferred tax expense (benefit):
Federal		525		4,154		(3,583)
State		32		300		(340)
Total deferred tax expense (benefit)		557		4,454		(3,923)
Income tax expense	$	12,856	$	11,723	$	8,308

Schedule of difference between the statutory and the effective federal tax rate


	For the Years Ended June, 30
	2018		2017		2016
Statutory income tax rate	28.06	%	35.00	%	35.00	%
State taxes (net of federal income tax benefit and valuation allowance)	2.32		2.83		0.41
Change in valuation allowance	—		—		0.06
Tax credits	(0.44)		(0.62)		(2.82)
Revalue of deferred taxes for change in federal tax rate	(1.23)		—		—
Uncertain tax positions	(1.73)		1.93		6.06
Permanent differences	(2.41)		(1.72)		6.36
Other	(0.02)		0.04		(0.21)
Effective income tax rate	24.55	%	37.46	%	44.86	%

Summary of the significant components of the Company’s deferred tax assets and liabilities


	2018		2017
Deferred tax assets:
Warranty reserves	$	2,898	$	4,392
Repurchase agreements		247		362
Other reserves		—		121
Unrecognized tax benefits		357		859
Stock Compensation		467		336
State net operating loss		130		130
Foreign net operating loss		81		104
Valuation allowance		(211)		(234)
Total deferred tax assets		3,969		6,070
Deferred tax liabilities:
Depreciation		(1,262)		(984)
Intangible asset basis difference		(4,009)		(6,037)
Other		(125)		(2)
Total deferred tax liabilities		(5,396)		(7,023)
Net deferred tax liabilities	$	(1,427)	$	(953)

Schedule of net deferred tax assets and liabilities as classified in the consolidated balance sheets


	2018		2017
Noncurrent deferred tax liabilities		(1,427)		(953)
Net deferred tax liabilities	$	(1,427)	$	(953)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits excluding accrued amounts for interest and penalties


	2018		2017
Balance at July 1	$	2,442	$	2,054
Additions based on tax positions related to the current year		373		413
Additions for tax positions of prior years		180		—
Reductions for tax positions of prior years		(61)		(25)
Settlements of tax positions from prior years		(1,223)		—
Balance at June 30	$	1,711	$	2,442

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Jun. 30, 2018

STOCK-BASED COMPENSATION

Schedule of of restricted stock award activity

A summary of restricted stock award activity for the years ended June 30, 2018, 2017 and 2016, is as follows:


	Number of Restricted Stock Awards Outstanding		Weighted Average Grant Date Fair Value
Total Non-vested Restricted Stock Awards at June 30, 2015	—	$	—
Granted	894,850		15.02
Vested	(894,850)		15.02
Forfeited	—		—
Total Non-vested Restricted Stock Awards at June 30, 2016	—	$	—
Granted	47,131		12.22
Vested	(18,740)		18.94
Forfeited	(1,974)		19.55
Total Non-vested Restricted Stock Awards at June 30, 2017	26,417	$	12.22
Granted	47,651		19.88
Vested	(25,870)		16.79
Forfeited	(4,888)		15.89
Total Non-vested Restricted Stock Awards at June 30, 2018	43,310	$	17.28

Schedule of performance stock award activity

A summary of performance stock award activity for the years ending June 30, 2018, 2017 and 2016, is as follows:


	Number of Performance Stock Units Outstanding		Weighted Average Grant Date Fair Value
Total Non-vested Performance Stock Units at June 30, 2016	—	$	—
Granted	42,586		11.85
Vested	—		—
Forfeited	(1,974)		11.85
Total Non-vested Performance Stock Units at June 30, 2017	40,612	$	11.85
Granted	26,416		19.62
Vested	—		—
Forfeited	(7,700)		14.42
Total Non-vested Performance Stock Units at June 30, 2018	59,328	$	14.98

Schedule of stock option activity

A summary of option activity for the years ending June 30, 2018, 2017 and 2016 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
		Exercise		Contractual	Intrinsic
	Shares	Price		Term (Yrs.)	Value
Outstanding at June 30, 2015	86,985	$	4.03	4.7	$	833
Granted	137,786	$	15.00	10.0	$	—
Exercised	(86,985)	$	4.03	—	$	—
Forfeited or expired	(15,146)	$	15.00	—	$	—
Outstanding at June 30, 2016	122,640	$	10.70	9.1	$	43
Granted	—	$	—	—	$	—
Exercised	(1,578)	$	10.70	—	$	—
Forfeited or expired	(4,734)	$	10.70	—	$	—
Outstanding at June 30, 2017	116,328	$	10.70	8.1	$	1,030
Granted	—	$	—	—	$	—
Exercised	(10,905)	$	10.70	—	$	—
Forfeited or expired	(12,298)	$	10.70	—	$	—
Outstanding at June 30, 2018	93,125	$	10.70	7.1	$	1,700

Fully vested and exercisable at June 30, 2016	—	$	—	—	$	—
Fully vested and exercisable at June 30, 2017	29,084	$	10.70	8.1	$	257
Fully vested and exercisable at June 30, 2018	41,111	$	10.70	7.1	$	750

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Jun. 30, 2018

COMMITMENTS AND CONTINGENCIES

Future minimum rental payments under all non-cancelable operating leases with remaining terms in excess of one year


Fiscal years ending June 30,
2019	$	598
2020		414
2021		396
2022		352
2023		137
and thereafter		1
Total	$	1,898

Future minimum purchase commitments under supply and other agreements


Fiscal years ending June 30,
2019	$	2,300
2020		3,112
2021		2,300
2022		2,300
2023		2,835
and thereafter		—
Total	$	12,847

EARNINGS PER SHARE (Tables)

12 Months Ended

Jun. 30, 2018

EARNINGS PER SHARE

Factors used in the earnings per share computation


	2018		2017		2016
Net income	$	39,653	$	19,570	$	10,210
Weighted average common shares — basic		18,619,793		18,592,885		17,849,319
Dilutive effect of assumed exercises of stock options		38,835		4,488		50,775
Dilutive effect of assumed restricted share awards\units		55,904		23,335		268,853
Dilutive effect of assumed exercises of common stock warrant		—		—		88,060
Weighted average outstanding shares — diluted		18,714,531		18,620,708		18,257,007
Basic earnings per share	$	2.13	$	1.05	$	0.57
Diluted earnings per share	$	2.12	$	1.05	$	0.56

SEGMENT INFORMATION (Tables)

12 Months Ended

Jun. 30, 2018

SEGMENT INFORMATION

Schedule of operating information for reportable segments


	MasterCraft		NauticStar		Consolidated
Net sales	$	266,319	$	66,406	$	332,725
Cost of sales		188,218		54,143		242,361
Operating income		49,363		6,620		55,983
Depreciation and amortization		3,283		1,803		5,086


		As of June 30, 2018		As of June 30, 2017
Assets
MasterCraft	$	89,058	$	83,321
NauticStar		87,866		—
Total Assets(a)	$	176,924	$	83,321

QUARTERLY FINANCIAL REPORTING (UNAUDITED) (Tables)

12 Months Ended

Jun. 30, 2018

QUARTERLY FINANCIAL REPORTING (UNAUDITED)

Schedule of quarterly financial information


		June 30		April 1		December 31		October 1
		2018		2018		2017		2017

Net sales	$	95,430	$	93,811	$	78,435	$	65,049
Gross profit		27,885		24,382		19,934		18,163
Operating income		18,938		15,199		10,782		11,064
Net income	$	13,144	$	11,454	$	8,009	$	7,046
Basic earnings per common share	$	0.71	$	0.62	$	0.43	$	0.38
Diluted earnings per common share	$	0.70	$	0.61	$	0.43	$	0.38
Weighted average shares used for computation of:
Basic earnings per common share		18,619,834		18,622,083		18,619,834		18,615,100
Diluted earnings per common share		18,702,352		18,728,424		18,702,352		18,686,626


		June 30		April 2		January 1		October 2
		2017		2017		2017		2016

Net sales	$	58,325	$	58,486	$	51,134	$	60,689
Gross profit		16,456		14,925		14,286		17,809
Operating income		10,559		4,282		7,039		11,635
Net income	$	6,315	$	2,241	$	4,031	$	6,983
Basic earnings per common share	$	0.34	$	0.12	$	0.22	$	0.38
Diluted earnings per common share	$	0.34	$	0.12	$	0.22	$	0.38
Weighted average shares used for computation of:
Basic earnings per common share		18,593,501		18,593,296		18,592,936		18,591,808
Diluted earnings per common share		18,659,246		18,625,904		18,605,078		18,592,603

ORGANIZATION AND NATURE OF BUSINESS (Details)	12 Months Ended
ORGANIZATION AND NATURE OF BUSINESS (Details)	Jun. 30, 2018 segment
ORGANIZATION AND NATURE OF BUSINESS
Number of reportable segments	2

SIGNIFICANT ACCOUNTING POLICIES - Immaterial Correction of Error (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2018	Apr. 01, 2018	Dec. 31, 2017	Oct. 01, 2017	Jun. 30, 2017	Apr. 02, 2017	Jan. 01, 2017	Oct. 02, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Immaterial correction of error
Net income	$ 13,144	$ 11,454	$ 8,009	$ 7,046	$ 6,315	$ 2,241	$ 4,031	$ 6,983	$ 39,653	$ 19,570	$ 10,210
Accrued expenses and other current liabilities	27,866				$ 21,410				27,866	$ 21,410
Restatement Adjustment \| Revision of Warranty Claims Projection
Immaterial correction of error
Net income									1,033
Accrued expenses and other current liabilities	$ (1,033)								$ (1,033)

SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Shipping and Handling Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Revenue Recognition
Dealer rebates and sales promotion incentives	$ 6,361	$ 5,660	$ 6,701
Retail rebates	1,932	5,484	3,628
Floor plan reimbursement costs	5,143	3,705	3,472
Shipping and Handling Costs
Shipping and handling costs billed to customers	4,774	4,124	4,043
Shipping and handling costs included in cost of sales	5,526	3,584	$ 3,952
Cash and cash equivalents
Cash equivalents	$ 0	$ 0
Maximum
Revenue Recognition
Term of reimbursement program	9 months

SIGNIFICANT ACCOUNTING POLICIES - Concentrations of Credit and Business Risk (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2018 USD ($) item	Jun. 30, 2017 USD ($) item	Jun. 30, 2016 USD ($) item
Concentrations of Credit and Business Risk
Accounts payable	$ 17,266	$ 11,008
MasterCraft \| Supplier Concentration Risk \| Cost of Goods \| Engine Supplier
Concentrations of Credit and Business Risk
Number of vendors \| item	1	1	1
Purchases during period	$ 34,734	$ 31,075	$ 31,232
Accounts payable	$ 3,227	$ 2,291
NauticStar \| Supplier Concentration Risk \| Cost of Goods \| Engine Supplier
Concentrations of Credit and Business Risk
Number of vendors \| item	1
Purchases during period	$ 19,668
Accounts payable	$ 1,261

SIGNIFICANT ACCOUNTING POLICIES - Property, Plant, and Equipment (Details)	12 Months Ended
	Jun. 30, 2018
Buildings and improvements \| Minimum
Property, plant, and equipment
Asset lives	7 years
Buildings and improvements \| Maximum
Property, plant, and equipment
Asset lives	40 years
Machinery and equipment \| Minimum
Property, plant, and equipment
Asset lives	3 years
Machinery and equipment \| Maximum
Property, plant, and equipment
Asset lives	7 years
Furniture and fixtures \| Minimum
Property, plant, and equipment
Asset lives	3 years
Furniture and fixtures \| Maximum
Property, plant, and equipment
Asset lives	7 years

SIGNIFICANT ACCOUNTING POLICIES - Warranties, Research and Development, Deferred Financing Costs, and Other (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2018 USD ($) segment	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)
Goodwill and Other Intangible Assets
Impairment of goodwill	$ 0	$ 0	$ 0
Impairment of other indefinite-lived intangible assets	0	0	0
Research and Development
Research and development expenditures	4,933	3,550	3,508
Deferred Financing Costs
Deferred financing costs incurred	1,240	0	300
Amortization of deferred financing costs	496	361	85
Advertising
Advertising costs	$ 6,787	$ 5,201	$ 5,725
Repurchase Commitments
Maximum term of repurchase commitments	2 years 6 months
Segment Information
Number of reportable segments \| segment	2
MasterCraft \| Maximum
Product Warranties
Product warranty term	5 years
NauticStar \| Maximum
Product Warranties
Product warranty term	1 year

SIGNIFICANT ACCOUNTING POLICIES - Estimated Effects of ASU 2014-09 (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Estimated Cumulative Effect
Decrease to retained earnings		$ 61,717	$ 101,370
Accounting Standards Update 2014-09 \| Difference between Revenue Guidance in Effect before and after Topic 606 \| Forecast \| Minimum
Estimated Cumulative Effect
Decrease to retained earnings	$ 2,500
Accounting Standards Update 2014-09 \| Difference between Revenue Guidance in Effect before and after Topic 606 \| Forecast \| Maximum
Estimated Cumulative Effect
Decrease to retained earnings	$ 3,500

ACQUISITION - Purchase Price Allocation (Details) - USD ($) $ in Thousands		12 Months Ended
	Oct. 02, 2017	Jun. 30, 2018	Jun. 30, 2017
Purchase Price:
Cash paid, net of cash acquired		$ 80,511
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value:
Goodwill		$ 65,792	$ 29,593
NauticStar
Purchase Price:
Cash paid, net of cash acquired	$ 80,511
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value:
Accounts receivable	1,773
Inventories	6,358
Other current assets	94
Indemnification asset	166
Deferred income taxes	83
Property, plant and equipment	4,945
Identifiable intangible assets	36,000
Current liabilities	(4,858)
Unrecognized tax positions	(249)
Fair value of assets acquired and liabilities assumed	44,312
Goodwill	36,199
Total purchase price allocation	$ 80,511

ACQUISITION - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands		12 Months Ended
	Oct. 02, 2017	Jun. 30, 2018	Jun. 30, 2017
Acquisition
Goodwill		$ 65,792	$ 29,593
NauticStar
Acquisition
Total identifiable intangible assets	$ 36,000
Goodwill	36,199
Acquisition related costs		$ 1,486
NauticStar \| Trade names
Acquisition
Indefinite-lived intangible	16,000
NauticStar \| Dealer network
Acquisition
Definite-lived intangible	$ 20,000
Estimated useful life	10 years

ACQUISITION - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Pro Forma financial information
Net sales	$ 350,794	$ 305,505	$ 285,321
Net income	$ 41,802	$ 22,592	$ 10,327
Basic earnings per share	$ 2.25	$ 1.22	$ 0.58
Diluted earnings per share	$ 2.23	$ 1.21	$ 0.57

INVENTORIES - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
INVENTORIES
Raw materials and supplies	$ 9,587	$ 7,164
Work in process	2,822	1,772
Finished goods	9,026	3,427
Obsolescence reserve	(968)	(687)	$ (332)
Total inventories	$ 20,467	$ 11,676

INVENTORIES - Obsolescence Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Activity in the obsolescence reserve
Beginning balance	$ (687)	$ (332)
Additions for NauticStar acquisition	(39)
Charged to costs and expenses	(462)	(399)
Disposals	220	44
Ending balance	$ (968)	$ (687)

PREPAID EXPENSES AND OTHER CURRENT ASSETS - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid photo shoot	$ 273	$ 497
Insurance	974	765
Trade show deposits	111	73
Interest rate cap	525	90
Other	1,412	1,013
Total prepaid expenses and other current assets	$ 3,295	$ 2,438

PROPERTY, PLANT, AND EQUIPMENT - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Property, plant, and equipment-net
Total property, plant, and equipment	$ 40,762	$ 29,834
Less accumulated depreciation	(18,497)	(15,007)
Property, plant, and equipment — net	22,265	14,827
Land and improvements
Property, plant, and equipment-net
Total property, plant, and equipment	1,725	1,125
Buildings and improvements
Property, plant, and equipment-net
Total property, plant, and equipment	11,960	8,208
Machinery and equipment
Property, plant, and equipment-net
Total property, plant, and equipment	22,570	16,189
Furniture and fixtures
Property, plant, and equipment-net
Total property, plant, and equipment	943	847
Construction in progress
Property, plant, and equipment-net
Total property, plant, and equipment	$ 3,564	$ 3,465

PROPERTY, PLANT, AND EQUIPMENT - Depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
PROPERTY, PLANT, AND EQUIPMENT
Depreciation	$ 3,489	$ 3,124	$ 3,223

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Goodwill
Goodwill	$ 65,792	$ 29,593
MasterCraft
Goodwill
Goodwill	29,593	$ 29,593
NauticStar
Goodwill
Goodwill	$ 36,199

GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Amortizable intangible assets
Gross Carrying Amount	$ 21,590	$ 1,590
Accumulated Amortization	(2,544)	(947)
Total	19,046	643
Indefinite-lived intangible assets
Trade names	32,000	16,000
Total intangible assets
Gross Carrying Amount	53,590	17,590
Net Carrying Amount	51,046	16,643
Dealer network
Amortizable intangible assets
Gross Carrying Amount	21,590	1,590
Accumulated Amortization	(2,544)	(947)
Total	$ 19,046	$ 643

GOODWILL AND OTHER INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Finite-lived intangible assets
Amortization of intangible assets	$ 1,597	$ 107	$ 221
Estimated amortization expense
2019	2,107
2020	2,107
2021	2,107
2022	2,107
2023	2,107
and thereafter	8,511
Total	19,046	643
Dealer network
Estimated amortization expense
Total	$ 19,046	$ 643
MasterCraft \| Dealer network
Finite-lived intangible assets
Estimated useful life	14 years
NauticStar \| Dealer network
Finite-lived intangible assets
Estimated useful life	10 years

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Warranty	$ 13,077	$ 12,237
Self-insurance	703	763
Compensation and related accruals	2,995	1,691
Inventory repurchase contingent obligation	1,274	1,008
Interest	1,472	1,008
Dealer incentives	4,628	2,755	$ 4,336
Other	3,717	1,948
Total accrued expenses and other current liabilities	$ 27,866	$ 21,410

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Roll forward of the accrued warranty liability
Beginning balance	$ 12,237	$ 11,392
Additions for NauticStar acquisition	945
Provisions	6,523	4,723
Payments made	(4,427)	(3,052)
Adjustments to preexisting warranties	(2,201)	(825)
Ending balance	$ 13,077	$ 12,237

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Dealer Incentives Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Activity in dealer incentives
Beginning balance	$ 2,755	$ 4,336
Additions for NauticStar acquisition	57
Provisions	8,414	11,160
Payments made	(6,598)	(12,741)
Ending balance	$ 4,628	$ 2,755

FAIR VALUE MEASUREMENTS - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Assets and liabilities measured at fair value
Asset	$ 525	$ 90
Transfers of assets between Level 1 and Level 2	0
Transfers of liabilities between Level 1 and Level 2	0
Level 2 \| Interest rate cap \| Recurring
Assets and liabilities measured at fair value
Asset	$ 525	$ 90

LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Long-term debt
Long-term debt, net of unamortized debt issuance costs	$ 75,156	$ 34,477
Less current portion of long-term debt	5,475	3,904
Long-term debt - less current portion	70,087	30,790
Senior secured term loan
Long-term debt
Long-term debt	76,656	35,135
Debt issuance costs on term loan	(1,500)	(658)
Less current portion of debt issuance costs on term loan	$ (406)	$ (217)

LONG-TERM DEBT - Senior Secured Credit Facility (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended			12 Months Ended
	Oct. 02, 2017	Jun. 30, 2016	Jul. 28, 2015	Mar. 29, 2015	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	May 22, 2016	Feb. 21, 2016	Nov. 23, 2014	Dec. 29, 2013
Long-term debt
Proceeds from revolving line of credit							$ 9,208
Payments on revolving line of credit						$ 3,126	14,271
Dividends paid
Cash dividends paid		$ 79,945		$ 44,000			79,945
Cash dividend per share		$ 4.30
Extinguishment of debt
Loss on extinguishment of debt			$ 716				$ 716
Write-off of debt discount			676
Deferred financing costs amortized			$ 40
Unamortized deferred financing costs					$ 383	481
Senior secured term loan
Long-term debt
Long-term debt					76,656	35,135
Extinguishment of debt
Unamortized deferred finance costs					1,500	658
Senior Secured Credit Facility \| Senior secured term loan
Long-term debt
Loan commitment											$ 25,000
Senior Secured Credit Facility \| Revolving credit facility
Long-term debt
Maximum borrowing capacity											$ 10,000
Amended Senior Secured Credit Facility \| Senior secured term loan
Long-term debt
Loan commitment										$ 50,000
First Amended Credit Agreement \| Maximum
Extinguishment of debt
Repurchase authorization									$ 20,000
First Amended Credit Agreement \| Senior secured term loan
Long-term debt
Loan commitment				75,000
First Amended Credit Agreement \| Revolving credit facility
Long-term debt
Maximum borrowing capacity				30,000
Proceeds from revolving line of credit				20,000
Payments on revolving line of credit				$ 10,000
Second Amended Credit Agreement
Long-term debt
Maximum borrowing capacity								$ 80,000
Second Amended Credit Agreement \| Senior secured term loan
Long-term debt
Loan commitment								50,000
Second Amended Credit Agreement \| Revolving credit facility
Long-term debt
Maximum borrowing capacity								$ 30,000
Third Amended Credit Agreement
Long-term debt
Maximum borrowing capacity	$ 145,000
Financing costs	$ 1,240
Extinguishment of debt
Unamortized deferred finance costs					$ 1,883	1,139
Third Amended Credit Agreement \| Prime Rate
Long-term debt
Variable margin rate based on current senior leverage ratio					1.00%
Third Amended Credit Agreement \| Prime Rate \| Minimum
Long-term debt
Variable margin rate	0.75%
Third Amended Credit Agreement \| Prime Rate \| Maximum
Long-term debt
Variable margin rate	1.75%
Third Amended Credit Agreement \| LIBOR
Long-term debt
Variable margin rate based on current senior leverage ratio					2.00%
Third Amended Credit Agreement \| LIBOR \| Minimum
Long-term debt
Variable margin rate	1.75%
Third Amended Credit Agreement \| LIBOR \| Maximum
Long-term debt
Variable margin rate	2.75%
Third Amended Credit Agreement \| Senior secured term loan
Long-term debt
Maximum borrowing capacity	$ 115,000
Voluntary payments					$ 35,000
Third Amended Credit Agreement \| Revolving credit facility
Long-term debt
Maximum borrowing capacity	$ 30,000
Long-term debt					0	0
Letters of credit outstanding						250
Net availability under facility					$ 30,000	$ 29,750
Effective interest rate					4.28%	3.803%

LONG-TERM DEBT - Maturities (Details) - Senior secured term loan - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Long-term debt maturities
2019	$ 5,475
2020	5,973
2021	7,466
2022	7,964
2023	49,778
Total	$ 76,656	$ 35,135

INCOME TAXES - Provision (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Provision (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Earnings from continuing operations before income taxes and equity by jurisdiction
Income (loss) from continuing operations before income taxes and equity, foreign	$ 112	$ (53)
Current income tax expense:
Federal	12,140	5,803	$ 10,530
State	276	1,584	2,020
Benefit of operating loss carryforwards	(117)	(118)	(319)
Total current tax expense	12,299	7,269	12,231
Deferred tax expense:
Federal	525	4,154	(3,583)
State	32	300	(340)
Total deferred tax expense	557	4,454	(3,923)
Income tax expense	$ 12,856	$ 11,723	$ 8,308

INCOME TAXES - Reconciliation of Statutory Rate (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Difference between the statutory and the effective federal tax rate
Statutory income tax rate	21.00%	35.00%	28.06%	35.00%	35.00%
State taxes (net of federal income tax benefit and valuation allowance)			2.32%	2.83%	0.41%
Change in valuation allowance					0.06%
Tax credits			(0.44%)	(0.62%)	(2.82%)
Revalue of deferred taxes for change in federal tax rate			(1.23%)
Uncertain tax positions			(1.73%)	1.93%	6.06%
Permanent deductions			(2.41%)	(1.72%)
Permanent differences					6.36%
Other			(0.02%)	0.04%	(0.21%)
Effective income tax rate			24.55%	37.46%	44.86%

INCOME TAXES - Deferred Tax Assets (Liabilities) - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Deferred tax assets:
Warranty reserves	$ 2,898	$ 4,392
Repurchase agreements	247	362
Other reserves		121
Unrecognized tax benefits	357	859
Stock compensation	467	336
State net operating loss	130	130
Foreign net operating loss	81	104
Valuation allowance	(211)	(234)
Total deferred tax assets	3,969	6,070
Deferred tax liabilities:
Depreciation	(1,262)	(984)
Intangible asset basis difference	(4,009)	(6,037)
Other	(125)	(2)
Total deferred tax liabilities	(5,396)	(7,023)
Net deferred tax liabilities	$ (1,427)	$ (953)

INCOME TAXES - Deferred Tax Assets (Liabilities) - Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Classification of the related asset and liability
Noncurrent deferred tax liabilities	$ (1,427)	$ (953)
Net deferred tax liabilities	$ (1,427)	$ (953)

INCOME TAXES - Tax Cuts and Jobs Act of 2017 (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Effect of Tax Cuts and Jobs Act of 2017, Accounting Incomplete, Provisional
Statutory income tax rate	21.00%	35.00%	28.06%	35.00%	35.00%
Reduction in deferred tax liabilities from impact of Tax Cuts and Jobs Act of 2017			$ 647

INCOME TAXES - Net Operating Losses (Details) $ in Thousands	Jun. 30, 2018 USD ($)
State
Net operating loss carryforwards
Net operating loss carryforwards	$ 3,013
Foreign
Net operating loss carryforwards
Net operating loss carryforwards	$ 387

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance at beginning of period	$ 2,442	$ 2,054
Additions based on tax positions related to the current year	373	413
Additions for tax positions of prior years	180
Reductions for tax positions of prior years	(61)	(25)
Settlements of tax positions from prior years	(1,223)
Balance at end of period	1,711	2,442
Unrecognized tax benefits that would impact effective tax rate	1,308	910
Expense (benefit) from interest and penalties recorded	(288)	355
Amount of unrecognized benefits expected to increase over the next twelve months	506
Unrecognized tax positions
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Accrued for interest and penalties	$ 271	$ 490

STOCK-BASED COMPENSATION - 2015 Equity Incentive Plan (Details) - 2015 Plan - shares	Jun. 30, 2018	Jul. 28, 2015	Jun. 30, 2015
Stock-Based Compensation
Shares authorized under plan		2,458,633	1,518,958
Shares available for grant	1,675,427

STOCK-BASED COMPENSATION - Restricted Stock Awards (Details) $ / shares in Units, $ in Thousands	1 Months Ended										12 Months Ended
	Jun. 30, 2018 shares	Nov. 26, 2017 shares	Jul. 30, 2017 shares	May 28, 2017 shares	Jan. 29, 2017 shares	Jan. 01, 2017 director shares	Aug. 28, 2016 shares	Apr. 24, 2016 $ / shares shares	Jul. 28, 2015 $ / shares shares	May 24, 2015 $ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2017 USD ($) $ / shares shares	Jun. 30, 2016 USD ($) $ / shares shares
Stock-Based Compensation
Number of new non-employee directors receiving awards \| director						2
Restricted stock awards \| 2015 Plan
Stock-Based Compensation
Shares granted \| shares											47,651	47,131	894,850
Shares granted, grant date fair value per share (in dollars per share) \| $ / shares											$ 19.88	$ 12.22	$ 15.02
Stock-based compensation \| $											$ 616	$ 321	$ 13,444
Restricted stock awards \| 2015 Plan \| Certain employees
Stock-Based Compensation
Shares granted \| shares	896	5,759	23,932				28,391			841,585
Shares granted, grant date fair value per share (in dollars per share) \| $ / shares										$ 15.00
Vesting period (in years)											3 years
Restricted stock awards \| 2015 Plan \| Non-employee directors
Stock-Based Compensation
Shares granted \| shares			17,064	430	1,968	5,572	10,770	6,140	47,146
Shares granted, grant date fair value per share (in dollars per share) \| $ / shares								$ 13.41	$ 15.66
Compensation recognition period (in days)									181 days

STOCK-BASED COMPENSATION - Restricted Stock Activity (Details) - 2015 Plan - Restricted stock awards - $ / shares	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Number of Stock Units Outstanding
Total Non-vested Stock Units at beginning of year	26,417
Granted	47,651	47,131	894,850
Vested	(25,870)	(18,740)	(894,850)
Forfeited	(4,888)	(1,974)
Total Non-vested Stock Units at end of year	43,310	26,417
Weighted Average Grant Date Fair Value
Total Non-vested Stock Awards at beginning of year	$ 12.22
Granted	19.88	$ 12.22	$ 15.02
Vested	16.79	18.94	$ 15.02
Forfeited	15.89	19.55
Total Non-vested Stock Awards at end of year	$ 17.28	$ 12.22

STOCK-BASED COMPENSATION - Performance Stock Units (Details) - Performance stock units - 2015 Plan - USD ($) $ in Thousands	1 Months Ended			12 Months Ended
	Nov. 26, 2017	Jul. 30, 2017	Aug. 28, 2016	Jun. 30, 2018	Jun. 30, 2017
Stock-Based Compensation
Stock-based compensation				$ 355	$ 150
Certain employees
Stock-Based Compensation
Granted	2,487	23,929	42,586
Vesting period (in years)			3 years

STOCK-BASED COMPENSATION - Performance Stock Unit Activity (Details) - 2015 Plan - Performance stock units - $ / shares	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Number of Stock Units Outstanding
Total Non-vested Stock Units at beginning of year	40,612
Granted	26,416	42,586
Forfeited	(7,700)	(1,974)
Total Non-vested Stock Units at end of year	59,328	40,612
Weighted Average Grant Date Fair Value
Total Non-vested Stock Awards at beginning of year	$ 11.85
Granted	19.62	$ 11.85
Forfeited	14.42	11.85
Total Non-vested Stock Awards at end of year	$ 14.98	$ 11.85

STOCK-BASED COMPENSATION - Nonqualified Stock Option Awards (Details) - 2015 Plan - Nonqualified stock options - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 28, 2015	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Stock-Based Compensation
Options granted				137,786
Option price				$ 15.00
Black-Scholes pricing model assumptions
Risk-free rate		1.93%
Expected term		6 years 3 months
Dividend rate		0.00%
Expected volatility		56.70%
Certain employees
Stock-Based Compensation
Options granted	137,786
Option price	$ 15.00
Annual vesting percentage	25.00%
Vesting period (in years)	4 years
Stock-based compensation		$ 215	$ 240

STOCK-BASED COMPENSATION - Nonqualified Stock Option Activity (Details) - 2015 Plan - Nonqualified stock options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Shares
Outstanding at beginning of year	116,328	122,640	86,985
Granted			137,786
Exercised	(10,905)	(1,578)	(86,985)
Forfeited or expired	(12,298)	(4,734)	(15,146)
Outstanding at end of year	93,125	116,328	122,640	86,985
Fully vested and exercisable at end of year	41,111	29,084
Weighted Average Exercise Price
Outstanding at beginning of year	$ 10.70	$ 10.70	$ 4.03
Granted			15.00
Exercised	10.70	10.70	4.03
Forfeited or expired	10.70	10.70	15.00
Outstanding at end of year	10.70	10.70	10.70	$ 4.03
Fully vested and exercisable at end of year	$ 10.70	$ 10.70
Reduction in exercise price pursuant to terms of the plan			$ 4.30
Weighted Average Remaining Contractual Term
Granted			10 years
Outstanding	7 years 1 month 6 days	8 years 1 month 6 days	9 years 1 month 6 days	4 years 8 months 12 days
Fully vested and exercisable at end of year	7 years 1 month 6 days	8 years 1 month 6 days
Aggregate Intrinsic Value
Outstanding at beginning of year	$ 1,030	$ 43	$ 833
Outstanding at end of year	1,700	1,030	$ 43	$ 833
Fully vested and exercisable at end of year	$ 750	$ 257

COMMITMENTS AND CONTINGENCIES - Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Operating leases
Rental expense	$ 666	$ 603	$ 468
Future minimum rental payments
2019	598
2020	414
2021	396
2022	352
2023	137
and thereafter	1
Total	$ 1,898

COMMITMENTS AND CONTINGENCIES - Repurchase Agreements (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2018 USD ($) item	Jun. 30, 2017 USD ($)
Repurchase agreements
Inventory repurchase contingent obligation	$ 1,274	$ 1,008
Obligation to Repurchase Inventory
Repurchase agreements
Maximum repurchase obligation under aggregated floor plan agreements	$ 129,492	94,046
Number of units repurchased \| item	0
Inventory repurchase contingent obligation	$ 1,265	$ 1,008
Obligation to Repurchase Inventory \| Minimum
Repurchase agreements
Inventory repurchase contingent obligation period	18 months
Obligation to Repurchase Inventory \| Maximum
Repurchase agreements
Inventory repurchase contingent obligation period	30 months

COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Future minimum purchase commitments
2019						$ 2,300
2020						3,112
2021						2,300
2022						2,300
2023						2,835
Total						$ 12,847
MasterCraft \| Ilmor Marine \| In-Board Engines \| Forecast \| Minimum
Purchase commitments
Estimated annual purchases made under the purchase commitment contract	$ 26,000	$ 26,000	$ 26,000	$ 26,000	$ 26,000
MasterCraft \| Ilmor Marine \| In-Board Engines \| Forecast \| Maximum
Purchase commitments
Estimated annual purchases made under the purchase commitment contract	$ 30,000	$ 30,000	$ 30,000	30,000	30,000
NauticStar \| Yamaha Motors \| Out-Board Engines \| Forecast \| Minimum
Purchase commitments
Estimated annual purchases made under the purchase commitment contract				23,000	23,000
NauticStar \| Yamaha Motors \| Out-Board Engines \| Forecast \| Maximum
Purchase commitments
Estimated annual purchases made under the purchase commitment contract				$ 26,000	$ 26,000

COMMON STOCK - Common Stock (Details)	12 Months Ended
COMMON STOCK - Common Stock (Details)	Jun. 30, 2018 Vote $ / shares shares	Jun. 30, 2017 $ / shares shares
COMMON STOCK
Common stock, authorized shares \| shares	100,000,000	100,000,000
Common stock, par value \| $ / shares	$ 0.01	$ 0.01
Number of votes entitled for each share of common stock held \| Vote	1

COMMON STOCK - Initial Public Offering (Details) $ / shares in Units, $ in Thousands				1 Months Ended	12 Months Ended
	Jun. 10, 2016 $ / shares	May 26, 2016 $ / shares	Jul. 22, 2015 $ / shares shares	Jun. 30, 2016 $ / shares	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)
Initial Public Offering
Offering expenses of IPO paid in period					$ 449	$ 7,202
Special dividend paid (dollars per share) \| $ / shares				$ 4.30
Common shares
Initial Public Offering
Stock split, conversion ratio			11.139
Special dividend declared (dollars per share) \| $ / shares		$ 4.30
Special dividend paid (dollars per share) \| $ / shares	$ 4.30
Common shares \| IPO
Initial Public Offering
Public offering price per share \| $ / shares			$ 15.00
Proceeds from issuance of common stock, net						81,762
Underwriting discounts and commissions						6,375
Offering expenses of IPO, aggregate						2,934
Offering expenses of IPO paid in period						$ 827
Common shares \| IPO, excluding over-allotment options
Initial Public Offering
Shares sold \| shares			6,071,429
Common shares \| Over-Allotment Option
Initial Public Offering
Shares sold \| shares			910,714

COMMON STOCK - Follow-on and Secondary Offerings (Details) - Common shares $ / shares in Units, $ in Thousands	1 Months Ended
	Jan. 01, 2017 USD ($) item $ / shares shares	Oct. 02, 2016 USD ($) $ / shares shares
Follow-on Public Offering
Public Offerings
Proceeds from issuance of common stock, net \| $		$ 0
Offering costs, aggregate \| $		$ 254
Follow-on Public Offering \| Selling Stockholders
Public Offerings
Shares sold by selling stockholders		4,600,000
Public offering price per share \| $ / shares		$ 10.25
Secondary Public Offerings
Public Offerings
Number of secondary offerings \| item	2
Proceeds from issuance of common stock, net \| $	$ 0
Offering costs, aggregate \| $	$ 181
Secondary Public Offerings \| Selling Stockholders
Public Offerings
Shares sold by selling stockholders	2,995,000
First Secondary Public Offering \| Selling Stockholders
Public Offerings
Shares sold by selling stockholders	1,495,000
Public offering price per share \| $ / shares	$ 13.35
Second Secondary Public Offering \| Selling Stockholders
Public Offerings
Shares sold by selling stockholders	1,500,000
Public offering price per share \| $ / shares	$ 13.45
Over-Allotment Option \| Selling Stockholders
Public Offerings
Shares sold by selling stockholders	195,000	600,000

EARNINGS PER SHARE - Factors (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2018	Apr. 01, 2018	Dec. 31, 2017	Oct. 01, 2017	Jun. 30, 2017	Apr. 02, 2017	Jan. 01, 2017	Oct. 02, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Factors used in the earnings per share computation
Net income									$ 39,653	$ 19,570	$ 10,210
Weighted average common shares - basic	18,619,834	18,622,083	18,619,834	18,615,100	18,593,501	18,593,296	18,592,936	18,591,808	18,619,793	18,592,885	17,849,319
Dilutive effect of assumed exercises of common stock warrants											88,060
Weighted average outstanding shares - diluted	18,702,352	18,728,424	18,702,352	18,686,626	18,659,246	18,625,904	18,605,078	18,592,603	18,714,531	18,620,708	18,257,007
Basic earnings per share (in dollars per share)	$ 0.71	$ 0.62	$ 0.43	$ 0.38	$ 0.34	$ 0.12	$ 0.22	$ 0.38	$ 2.13	$ 1.05	$ 0.57
Diluted earnings per share (in dollars per share)	$ 0.70	$ 0.61	$ 0.43	$ 0.38	$ 0.34	$ 0.12	$ 0.22	$ 0.38	$ 2.12	$ 1.05	$ 0.56
Stock options
Factors used in the earnings per share computation
Dilutive effect of assumed exercises of stock options and restricted share awards\units									38,835	4,488	50,775
Restricted stock awards
Factors used in the earnings per share computation
Dilutive effect of assumed exercises of stock options and restricted share awards\units									55,904	23,335	268,853

EARNINGS PER SHARE - Anti-dilutive Securities (Details) - shares	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Stock options
Other disclosures
Anti-dilutive securities excluded from computation of earning per share	0	91,980	124,020

SEGMENT INFORMATION - Geographic Concentration (Details)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
MasterCraft \| Net sales \| Geographic concentration \| Outside of North America
SEGMENT INFORMATION
Net sales, percentage	7.50%	9.10%	8.60%

SEGMENT INFORMATION - Operating Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2018 USD ($)	Apr. 01, 2018 USD ($)	Dec. 31, 2017 USD ($)	Oct. 01, 2017 USD ($)	Jun. 30, 2017 USD ($)	Apr. 02, 2017 USD ($)	Jan. 01, 2017 USD ($)	Oct. 02, 2016 USD ($)	Jun. 30, 2018 USD ($) segment	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)
Segment reporting information
Number of operating segments \| segment									2
Number of reportable segments \| segment									2
Net sales	$ 95,430	$ 93,811	$ 78,435	$ 65,049	$ 58,325	$ 58,486	$ 51,134	$ 60,689	$ 332,725	$ 228,634	$ 221,600
Cost of sales									242,361	165,158	160,521
Operating income	18,938	$ 15,199	$ 10,782	$ 11,064	10,559	$ 4,282	$ 7,039	$ 11,635	55,983	33,515	22,011
Depreciation and amortization									5,086	3,231	$ 3,444
Assets	176,924				83,321				176,924	83,321
Goodwill	65,792				29,593				65,792	29,593
MasterCraft
Segment reporting information
Net sales									266,319
Cost of sales									188,218
Operating income									49,363
Depreciation and amortization									3,283
Assets	89,058				83,321				89,058	83,321
Goodwill	29,593				$ 29,593				29,593	$ 29,593
NauticStar
Segment reporting information
Net sales									66,406
Cost of sales									54,143
Operating income									6,620
Depreciation and amortization									1,803
Assets	87,866								87,866
Goodwill	$ 36,199								$ 36,199

QUARTERLY FINANCIAL REPORTING (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2018	Apr. 01, 2018	Dec. 31, 2017	Oct. 01, 2017	Jun. 30, 2017	Apr. 02, 2017	Jan. 01, 2017	Oct. 02, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
QUARTERLY FINANCIAL REPORTING (UNAUDITED)
Net sales	$ 95,430	$ 93,811	$ 78,435	$ 65,049	$ 58,325	$ 58,486	$ 51,134	$ 60,689	$ 332,725	$ 228,634	$ 221,600
Gross profit	27,885	24,382	19,934	18,163	16,456	14,925	14,286	17,809	90,364	63,476	61,079
Operating income	18,938	15,199	10,782	11,064	10,559	4,282	7,039	11,635	55,983	33,515	22,011
Net income	$ 13,144	$ 11,454	$ 8,009	$ 7,046	$ 6,315	$ 2,241	$ 4,031	$ 6,983	$ 39,653	$ 19,570	$ 10,210
Basic earnings per share (in dollars per share)	$ 0.71	$ 0.62	$ 0.43	$ 0.38	$ 0.34	$ 0.12	$ 0.22	$ 0.38	$ 2.13	$ 1.05	$ 0.57
Diluted earnings per share (in dollars per share)	$ 0.70	$ 0.61	$ 0.43	$ 0.38	$ 0.34	$ 0.12	$ 0.22	$ 0.38	$ 2.12	$ 1.05	$ 0.56
Weighted average shares used for computation of:
Basic earnings per share (in shares)	18,619,834	18,622,083	18,619,834	18,615,100	18,593,501	18,593,296	18,592,936	18,591,808	18,619,793	18,592,885	17,849,319
Diluted earnings per share (in shares)	18,702,352	18,728,424	18,702,352	18,686,626	18,659,246	18,625,904	18,605,078	18,592,603	18,714,531	18,620,708	18,257,007