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View Full Version : MC Avoids Bankruptcy


BrianM
06-29-2009, 03:51 PM
Hmm. Sounds as if a pretty big bullet was dodged.

http://www.tradeonlytoday.com/home/498708-mastercraft-plan-avoids-bankruptcy-filing

SkiDog
06-29-2009, 03:59 PM
I knew times were tough, but damnit man!

bxroads
06-29-2009, 04:00 PM
Interesting read. Thanks for the link.

hawaiianstiln
06-29-2009, 04:15 PM
Yikes!!! Someone needs to buy someone else a few beers for that one! :)

bobx1
06-29-2009, 04:27 PM
"Unit shipments declined 56 percent from fiscal 2008 to fiscal 2009 "

Ouch! Not a lot of companies can prepare for that kind of drop.

BriEOD
06-29-2009, 04:34 PM
Tough times for sure...

TallRedRider
06-29-2009, 04:39 PM
Tough times for sure...

X 2.

Good to see that they just don't want to fold and leave everyone in their wake (no pun intended) SOL.

brucemac
06-29-2009, 04:52 PM
youch.....

mpabreo
06-29-2009, 04:53 PM
guess it was understandable that they wouldn't build me a spec boat this spring...

east tx skier
06-29-2009, 05:09 PM
Tough times for sure. Hang in there, MC.

ckornutiak
06-29-2009, 06:33 PM
[QUOTE=BrianM;610099]Hmm. Sounds as if a pretty big bullet was dodged.


Gotta hand it to MC for at least trying to pay off their vendors. Most companies would have just filed and been done with it. As a vendor, it stinks having to accept a discounted payment or payments over a longer period, but believe me something is better than nothing.

6ballsisall
06-29-2009, 07:30 PM
Where is Jorski and the obligatory comments??? :confused:

Patrick Hardy
06-29-2009, 07:49 PM
I am glad to hear about their plans, I hope that they work. You hear about production drop numbers like that and Yikes comes to your mind. I can not even fathom the numbers that are talked about @ the big auto companies these days!

TOO-TALL
06-29-2009, 08:37 PM
Like the one comment said
"The increase in boat prices were unsustainable"
when were people going to wake up, I mean paying 60-100 thousand for a ski or wakeboard boat.
Give me a break!!!! Well the house of cards has fell.

TX.X-30 fan
06-29-2009, 08:47 PM
Like the one comment said
"The increase in boat prices were unsustainable"
when were people going to wake up, I mean paying 60-100 thousand for a ski or wakeboard boat.
Give me a break!!!! Well the house of cards has fell.




Without unlimited credit, zero down, long payouts you are exactly right. The easy credit drove the prices and them days are gone.

rhsprostar
06-29-2009, 08:51 PM
Wow..........how are MC's competitors doing? Anyone know the situation over at BU or CC?

2RLAKE
06-29-2009, 08:53 PM
... abd all we have to do to help is go buy new MC boats!

every business is impacted in todays environment ... housing market, automotive, aviation ... everything is getting hammered

al wasn't it great to see Madoff sentenanced to 150 years today!

sand2snow22
06-29-2009, 10:06 PM
Wow..........how are MC's competitors doing? Anyone know the situation over at BU or CC?

BU's president stepped down. They closed production out of their Californian plant. The new 2010 towers are controversial. I'd say MC will gain market share.

CC just released their new ski boat. Looks pretty sweet. But they've been hurting and going the wrong direction if you want my opinion.

TX.X-30 fan
06-29-2009, 10:09 PM
And center consoles and 300's are the right direction??

Matt L.
06-29-2009, 10:34 PM
2 years ago I was at the Phoenix MC dealership with the wife and boys. They had a beautiful X-45 in the showroom. Approximately the same size as my 240SC. Granted it was tricked out and had a killer stereo system, but $106,000!

I will likely never buy a new Mastercraft after that shock! perhaps I'll drop $20K in my 240 someday.

Later,

Matt

sand2snow22
06-29-2009, 11:08 PM
And center consoles and 300's are the right direction??

Not my cup of tea:D Have you seen the inside of a Nautique wakeboard boat?

east tx skier
06-29-2009, 11:08 PM
BU's president stepped down. They closed production out of their Californian plant. The new 2010 towers are controversial. I'd say MC will gain market share.

CC just released their new ski boat. Looks pretty sweet. But they've been hurting and going the wrong direction if you want my opinion.

I don't think CC has been hurting prior to the recession. If anything was bad timing for them, I'd suspect it was building that large new factory a few years back. They scaled back their production earlier this year and were sending their people to seminars or doing community service to keep their hours up. Not sure if they had to lay off or not. Going forward with a new hull design doesn't exactly say to me that they are behind the 8 ball, but there could be plenty I don't know. As for whether they've been going in the right direction, I think that's a matter of opinion. I've always appreciated their producing a closed bow that is doing the pulling at tournaments. With this new hull, I'm afraid those days may be over.

Age Fighter
06-29-2009, 11:37 PM
Going forward with a new hull design doesn't exactly say to me that they are behind the 8 ball, but there could be plenty I don't know. As for whether they've been going in the right direction, I think that's a matter of opinion. I've always appreciated their producing a closed bow that is doing the pulling at tournaments. With this new hull, I'm afraid those days may be over.

Times like this often result in mergers and acquisitions. The MC brand will always be around. The next 12 months will have a lot to say about who owns it.
And East Tx: on CC: Is that their "Fusion Hull" with the "hydra gate" system you are speaking of?

vision
06-29-2009, 11:49 PM
Hats off to MC for making the hard decisions required to stay financially viable. Few companies can take a 50% hit in sales and survive.

But it points out, IMHO, one of the main problems with the financial policy practice during the last 12 years by many companies. Some one convinced most CFOs, who then convinced their companies, that carrying a huge debt load was safe as revenues would always increase. Debt will always bite you in the butt.

Mature companies like MC and many others should never carry so much debt or be that leveraged.

JohnE
06-29-2009, 11:49 PM
Where is Jorski and the obligatory comments??? :confused:


Last I checked he was spouting his words of wisdom here :D:http://mastercraft.com/teamtalk/showpost.php?p=605152&postcount=51

rhsprostar
06-30-2009, 12:06 AM
The last I heard CC was down to a two day production week.
You are right about the factory though. I did a tour when i was in Orlando when it first opened 2 years ago......pretty snazzy. Must have cost a few bananas!

FancySauceRules
06-30-2009, 01:24 AM
Last I checked he was spouting his words of wisdom here :D:http://mastercraft.com/teamtalk/showpost.php?p=605152&postcount=51

I guess Jorski's worst fear has come true...bond holders own it now. We will see if he is right. Very interesting that Dorton is still Prez after the restructure. I think it will be tough for the bond holders to seriously change the quality or direction of the product with him still at the helm. Sounds like the cost cutting came out of debt holders taking equity instead of interest payments. Hopefully that means cutting corners at the factory isn't an option.:)

sand2snow22
06-30-2009, 01:39 AM
I don't think CC has been hurting prior to the recession. If anything was bad timing for them, I'd suspect it was building that large new factory a few years back. They scaled back their production earlier this year and were sending their people to seminars or doing community service to keep their hours up. Not sure if they had to lay off or not. Going forward with a new hull design doesn't exactly say to me that they are behind the 8 ball, but there could be plenty I don't know. As for whether they've been going in the right direction, I think that's a matter of opinion. I've always appreciated their producing a closed bow that is doing the pulling at tournaments. With this new hull, I'm afraid those days may be over.


You would know better than I! They say they are going to make the closed bow 200. I'm a proud owner of a closed bow one might argue that it has the best ski wake of all time! ;)

bbymgr
06-30-2009, 08:23 AM
I don't think CC has been hurting prior to the recession. If anything was bad timing for them, I'd suspect it was building that large new factory a few years back. They scaled back their production earlier this year and were sending their people to seminars or doing community service to keep their hours up. Not sure if they had to lay off or not. Going forward with a new hull design doesn't exactly say to me that they are behind the 8 ball, but there could be plenty I don't know. As for whether they've been going in the right direction, I think that's a matter of opinion. I've always appreciated their producing a closed bow that is doing the pulling at tournaments. With this new hull, I'm afraid those days may be over.


Midwest Correct Craft Service Center here in Angola, IN is closing the doors. CC bought it from the Meloon's early last year, but now they are closing the doors. I don't know if that is due to the recession, but I would think it has something to do with it.

JohnE
06-30-2009, 12:16 PM
Interesting how a thread started about Malibu turns into 190 posts speculating about the current and future state of MC.

And then the truth of the matter comes out and it barely gets a response.:twocents:

helton333
06-30-2009, 12:38 PM
Saw the new Axis boat this weekend at a boat show - really stripped down - the tower is the most noticeable place - just basically turned steel (not tubal) - has to be much less than building 10K towers with mounts and all.

This is a reset time for everyone - there are few people who can spend 40 to 60K on a boat and NOT lie awake at night and worry about the decision -

Has anyone seen Standard Boat Mfg - basically doing a breand new 190 with tower for $29,900. That seems smart - that is what made MC what it is.

Can't ever get away from your core business.

jamisonsbrodie
06-30-2009, 12:38 PM
The new major bondholder (Wayzata Investment Partners) will probably come out very well on this deal. They bought the debt from Penske at cents on the dollar.

east tx skier
06-30-2009, 12:57 PM
Times like this often result in mergers and acquisitions. The MC brand will always be around. The next 12 months will have a lot to say about who owns it.
And East Tx: on CC: Is that their "Fusion Hull" with the "hydra gate" system you are speaking of?

I don't know what they're calling the hull itself, but the SN200 is replacing both the 196 and the 206. Performance reviews have been pretty glowing, but it's early yet. It has lifting strakes, but keeps the hydrogate adjusted for the new hull. The gate provides more lift for slalom and no additional lift for trick.

TMCNo1
06-30-2009, 01:00 PM
Saw the new Axis boat this weekend at a boat show - really stripped down - the tower is the most noticeable place - just basically turned steel (not tubal) - has to be much less than building 10K towers with mounts and all.

This is a reset time for everyone - there are few people who can spend 40 to 60K on a boat and NOT lie awake at night and worry about the decision -

Has anyone seen Standard Boat Mfg - basically doing a breand new 190 with tower for $29,900. That seems smart - that is what made MC what it is.

Can't ever get away from your core business.


Kind of scary to me, http://www.surfexpo.com/Default.aspx?tabid=106&ArticleID=1354&CBModuleId=991

east tx skier
06-30-2009, 01:01 PM
Midwest Correct Craft Service Center here in Angola, IN is closing the doors. CC bought it from the Meloon's early last year, but now they are closing the doors. I don't know if that is due to the recession, but I would think it has something to do with it.

You're correct about CC-East (formerly MWCC). Tough times and downsizing to stay viable. No luxury item business is immune at the moment.

FancySauceRules
06-30-2009, 01:14 PM
Interesting how a thread started about Malibu turns into 190 posts speculating about the current and future state of MC.

And then the truth of the matter comes out and it barely gets a response.:twocents:

Rumors and conspiracy theory are always more popular than fact. :D Once they start announcing changes to the lineup of boats, I'm sure the rumor mongers will be at it again. I think Mastercraft can very succesful by simply reducing the line up to the core best selling boats and standardizing the options packages. They got no debt now...that goes a long ways.

captain planet
06-30-2009, 01:39 PM
Can't ever get away from your core business.

This statement kind of makes me think back to the boat show this year and seeing all the different MC models. I was wondering then, are all of them necessary? It cost money to maintain boat molds...so which models are going to go away if any?

I would guess with the introduction of the 214V the X-1 is on the chopping block (although I would hope that doesn't happen). Between the X-35, X-45, and X-55....which one (or two) stay? How long will the 300 stick around? What about the X-15 and the X-14V, about the same length but the similarities end there. Two boats 21+' in the line-up. I'm sure it all depends on the numbers of models sold.

This all sucks to think about, I'm just looking at this realistically.....and as I have said before as long as they make a boat with the motor in the middle (197), I'm a happy guy.

gregjalden
06-30-2009, 07:06 PM
hopefully they will also rationalize their product line and get back to just building world class wake & ski boats...

JohnE
06-30-2009, 11:37 PM
Please. I don't think chopping boats from the lineup will save the company any money. And there is a limited market for core ski and boarding boats.

FancySauceRules
07-01-2009, 01:31 AM
Please. I don't think chopping boats from the lineup will save the company any money. And there is a limited market for core ski and boarding boats.

Just a guess, but with the way floor financing is, fewer models might benefit both the dealer and the manufacturer. With how deep the lineup is right now, I bet most dealers would struggle to keep 1 of every model on the floor at any given time for the 2010's. Which means most boats sold would be made to order, since the dealer likely didn't even have the color combo you would want. I know how I shop, I search inventory and try and make the best deal on what someone has on the floor. That usually works out to be the best deal. Just my opinion though, I have no idea what the real math is behind this thought, and I'm sure the dealers on here can't share.

JohnE
07-01-2009, 10:13 AM
Just a guess, but with the way floor financing is, fewer models might benefit both the dealer and the manufacturer. With how deep the lineup is right now, I bet most dealers would struggle to keep 1 of every model on the floor at any given time for the 2010's. Which means most boats sold would be made to order, since the dealer likely didn't even have the color combo you would want. I know how I shop, I search inventory and try and make the best deal on what someone has on the floor. That usually works out to be the best deal. Just my opinion though, I have no idea what the real math is behind this thought, and I'm sure the dealers on here can't share.


I have the opposite view. With the expanded lineup each dealer can put on his floor what he thinks will move. Keeping a ton of boats on hand hasn't exactly helped the dealers anyway. Paying the juice on the floorplan boats when the 6 months or 1 year anniversary of the financing came up has done more harm than good I'll bet.

Making boats to order isn't a novel idea. But it is to MC. Other manufacturers have done it with success. And based on how I shop, I'd much prefer to be able to order a new boat vs. "settling" on what is on the floor. Done it twice now and wouldn't want it the other way.

PendO
07-02-2009, 05:05 PM
JORSKI ????

PendO
07-02-2009, 05:12 PM
CLEANUP ON AISLE 9

TX.X-30 fan
07-02-2009, 07:30 PM
Home run PendO. :D:D

TX.X-30 fan
07-02-2009, 07:33 PM
John as usual I disagree, a few good models and a good stock of them is the way to go. You are rare at this price level to demand a build to suit boat. Very expensive for MC and the consumer has no chance of a deal. I know you got a deal but I guarantee not many did when they custom orderd.