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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2016	Sep. 06, 2016	Dec. 27, 2015
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
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	Non-accelerated Filer
Entity Public Float			$ 117,191,000
Entity Common Stock, Shares Outstanding		18,591,808

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 73	$ 1,167
Accounts receivable — net of allowances of $65 and $92, respectively	2,966	2,653
Income tax receivable	5
Inventories — net (Note 4)	13,268	11,541
Prepaid expenses and other current assets (Note 5)	1,780	7,235
Deferred income taxes (Note 2 and 11)		6,733
Total current assets	18,092	29,329
Property, plant and equipment — net (Note 6)	13,826	13,233
Intangible assets — net (Note 7)	16,750	16,971
Goodwill	29,593	29,593
Deferred debt issuance costs - net	601	425
Deferred income taxes (Note 2 and 11)	3,501
Other	170	125
Total assets	82,533	89,676
CURRENT LIABILITIES
Accounts payable	13,112	14,808
Income tax payable	1,108	224
Accrued expenses and other current liabilities (Note 8)	22,276	21,313
Common stock warrant liability (Note 15)		9,147
Current portion of long term debt, net of unamortized debt issuance costs (Note 10)	7,885	18,275
Total current liabilities	44,381	63,767
Long-term debt, net of unamortized debt issuance costs (Note 10)	44,342	60,487
Unrecognized tax positions (Note 11)	2,189	519
Deferred income taxes (Note 2 and 11)		7,156
Total liabilities	90,912	131,929
COMMITMENTS AND CONTINGENCIES (Note 13)
STOCKHOLDERS' DEFICIT:
Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 18,591,808 shares at June 30, 2016 and 11,139,000 shares at June 30, 2015	186	111
Additional paid-in capital	112,375	8,841
Accumulated deficit	(120,940)	(51,205)
Total stockholders' deficit	(8,379)	(42,253)
Total liabilities and stockholders' deficit	$ 82,533	$ 89,676

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 65	$ 92
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	18,591,808	11,139,000
Common stock, outstanding shares	18,591,808	11,139,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
NET SALES	$ 221,600	$ 214,386	$ 177,587
COST OF SALES	160,521	163,220	139,975
GROSS PROFIT	61,079	51,166	37,612
OPERATING EXPENSES:
Selling and marketing	9,685	8,552	8,837
General and administrative	29,162	18,472	9,960
Amortization of intangible assets	221	222	221
Total operating expenses	39,068	27,246	19,018
OPERATING INCOME	22,011	23,920	18,594
OTHER EXPENSE:
Interest expense	1,280	5,171	7,555
Change in common stock warrant fair value	3,425	6,621	2,526
Other income	(1,212)
INCOME BEFORE INCOME TAX EXPENSE	18,518	12,128	8,513
INCOME TAX EXPENSE (BENEFIT)	8,308	6,594	(11,414)
NET INCOME	$ 10,210	$ 5,534	$ 19,927
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.57	$ 0.50	$ 1.79
Diluted (in dollars per share)	$ 0.56	$ 0.47	$ 1.78
WEIGHTED AVERAGE SHARES USED FOR COMPUTATION OF:
Basic earnings per share (in shares)	17,849,319	11,139,000	11,139,000
Diluted earnings per share (in shares)	18,257,007	11,862,699	11,182,264

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance, beginning at Jun. 30, 2013	$ 111	$ 8,839	$ (32,666)	$ (23,716)
Balance, beginning (in shares) at Jun. 30, 2013	11,139,000
Increase (decrease) in stockholders' equity
Equity-based compensation, net of withholding taxes on equity awards		2		2
Net income			19,927	19,927
Balance, ending at Jun. 30, 2014	$ 111	8,841	(12,739)	(3,787)
Balance, ending (in shares) at Jun. 30, 2014	11,139,000
Increase (decrease) in stockholders' equity
Dividends			(44,000)	(44,000)
Net income			5,534	5,534
Balance, ending at Jun. 30, 2015	$ 111	8,841	(51,205)	(42,253)
Balance, ending (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, net of withholding taxes on equity awards	$ 9	13,502		13,511
Equity-based compensation, net of withholding taxes on equity awards (shares)	894,850
Dividends			(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

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

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 10,210	$ 5,534	$ 19,927
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,444	3,278	2,472
Inventory obsolescence reserve	359	776	644
Non-cash interest expenses:
Paid in kind interest		1,034	5,586
Debt discount accretion	24	127	50
Amortization of deferred financing costs	85	42	61
Stock-based compensation	13,687		2
Loss on extinguishment of debt	716	852
Change in common stock warrant fair value	3,425	6,621	2,526
Unrecognized tax benefits	1,670	(101)	(149)
Deferred income taxes	(3,923)	6,062	(11,505)
Net provision for doubtful accounts	(27)	(373)	(275)
Gain (loss) on disposal of fixed assets	1	78	(17)
Changes in operating assets and liabilities:
Accounts receivable	(286)	2,126	1,014
Inventories	(2,086)	(632)	(1,013)
Prepaid expenses and other current assets	3,348	(5,667)	(769)
Income tax receivable	(5)		30
Other assets	(45)	(45)	331
Accounts payable	(1,697)	1,788	3,595
Income tax payable	884	42	182
Accrued expenses and other current liabilities	963	3,712	(778)
Net cash provided by operating activities	30,747	25,254	21,914
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in restricted cash			1,023
Proceeds from disposal of assets		(10)	17
Purchases of property and equipment	(3,817)	(3,467)	(3,421)
Net cash used in investing activities	(3,817)	(3,477)	(2,381)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	91,071
Proceeds from issuance of long-term debt	50,000	75,000	25,000
Payment of costs directly associated with the issuance of common stock	(7,202)
Principal payments on long-term debt	(71,250)	(70,764)	(39,956)
Proceeds from revolving line of credit	9,208	20,188
Payments on revolving line of credit	(14,271)	(12,000)
Repurchase and retirement of common stock	(4,502)
Payments of debt discount	(923)	(1,120)
Payments of deferred financing costs	(300)	(453)	(609)
Dividends paid	(79,945)	(44,000)
Proceeds from exercise of common stock warrant	90
Net cash used in financing activities	(28,024)	(33,149)	(15,565)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(1,094)	(11,372)	3,968
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD	1,167	12,539	8,571
CASH AND CASH EQUIVALENTS — END OF PERIOD	73	1,167	12,539
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for interest	397	2,725	1,767
Cash payments for income taxes	9,635	$ 551	$ (168)
SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES:
Payment of costs directly associated with the issuance of common stock	2,107
Issuance of shares in exchange of common stock warrants	$ 12,572

ORGANIZATION AND NATURE OF BUSINESS	12 Months Ended
ORGANIZATION AND NATURE OF BUSINESS	Jun. 30, 2016
ORGANIZATION AND NATURE OF BUSINESS
ORGANIZATION AND NATURE OF BUSINESS	1.ORGANIZATION AND NATURE OF BUSINESS MCBC Holdings, Inc. (“MCBC” or the “Company”) was formed on January 28, 2000, as a Delaware holding company that operates primarily through its wholly owned subsidiaries, MasterCraft Boat Company, LLC and MCBC Hydra Boats, LLC. MCBC and its subsidiaries collectively are referred to herein as the “Company”. The Company is a designer and manufacturer of premium inboard tournament ski boats and luxury performance V-drive runabouts under the MasterCraft brand. The Company also leases a parts warehouse in the United Kingdom to expedite service, primarily to dealers and customers in the European Union.

BASIS OF PRESENTATION	12 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2016
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, MasterCraft Boat Company, LLC; MasterCraft Services, Inc.; MCBC Hydra Boats, LLC; MasterCraft Parts, Ltd.; and MasterCraft International Sales Administration, Inc. 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 the selling stockholders pursuant to the exercise of an overallotment 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 our 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. These condensed consolidated financial statements give effect retrospectively to the stock split consummated on July 22, 2015. On May 26, 2016, we declared a special dividend of $4.30 per share which was paid on June 10, 2016. Income Taxes — The Company computes its income taxes in each federal, state, and international jurisdiction in which it operates. This process requires an estimate of its current tax exposure including assessing temporary differences between the accounting and tax treatment of assets and liabilities. The income tax effects of these differences identified as of June 30, 2015 are classified as current or noncurrent deferred tax assets and liabilities on its Consolidated Balance Sheets, and presented as noncurrent deferred tax assets as of June 30, 2016, following the adoption of Accounting Standards Update (“ASU”) No. 2015-17, Income Taxes on a prospective basis during fiscal fourth quarter 2016.

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2016

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

3.SIGNIFICANT ACCOUNTING POLICIES

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

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 options and warrant, 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 8). 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 most often recognized as a reduction in net sales, at the time of sale to the dealer. Examples of such programs include rebates, seasonal discounts and other allowances. Other 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. Dealer rebates and sales promotion expenses 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. Free floor plan financing incentives are estimated at the time of sale to the dealer based on the expected expense over the term of the free flooring period and are recognized as a reduction in sales. Rebates recorded during the years ended June 30, 2016, 2015, and 2014, were $6,701, $5,152 and $3,946, respectively.

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 $3,472, $2,459 and $2,181 for the years ended June 30, 2016, 2015, and 2014, 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, 2016, 2015, and 2014, shipping and handling costs billed to customers totaled $4,043, $4,155 and $4,050, respectively, and shipping and handling costs included in cost of sales totaled $3,952, $4,461 and $3,564, 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 and Ohio and may at times exceed federally insured amounts. The Company had no cash equivalents at June 30, 2016 and 2015.

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 2016, 2015, and 2014 the Company purchased all engines for its MasterCraft boats under a supply agreement with one vendor. Total purchases to this vendor were $31,232, $29,027 and $24,426 for 2016 2015, and 2014, respectively. Total accounts payable to this vendor were $2,309 and $2,506 as of June 30, 2016 and 2015 respectively. 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	-	5	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 the MasterCraft operating segment. The Company’s primary intangible assets with finite lives consist of a dealer network, developed technologies, software, and order backlog, 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 7). 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.

The Company performed a qualitative assessment of goodwill and other indefinite-lived intangible assets for the years ended June 30, 2016, 2015 and 2014 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 qualitative assessments it was determined that there was no impairment charge related to its intangible assets during the years ended June 30, 2016, 2015 and 2014. 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, 2016 and 2015 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 current or long-term deferred tax assets and liabilities in our Consolidated Balance Sheets as of June 30, 2015, and as long-term deferred tax assets and liabilities as of June 30, 2016, following the adoption of ASU No. 2015-17, Income Taxes.

Product Warranties — The Company offers warranties on the sale of certain products for a period of up to five years 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. In fiscal 2014, the Company entered into a contract with an insurance company to reimburse warranty claims paid to independent boat dealerships for years two through five of the warranty period. During fiscal 2016, the Company terminated this insurance contract.

Research and Development — Research and development expenditures are expensed as incurred. The amount charged against the years ended June 30, 2016, 2015, and 2014 was $3,508, $3,027 and $2,722, 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, 2016, 2015, and 2014, the Company incurred deferred financing costs of $300, $453 and $609, respectively and recorded amortization of $85, $42 and $61, 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.

Common Stock Warrant — The Company accounts for its freestanding common stock warrant as a liability until settlement. As of June 3, 2016, all of the common stock warrants were exercised or exchanged. As of June 30, 2015, the outstanding warrant was recorded at fair value and estimated using an option pricing model. Changes in the estimated fair value of the warrant are separately stated in the consolidated statements of operations.

Advertising — Advertising costs are expensed as incurred. The amount charged against operations during the years ended June 30, 2016, 2015, and 2014, was $5,725, $5,521 and $5,255, 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 common stock warrant is measured and recorded at fair value on a recurring basis. 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 8 and 13.

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 reporting segments based on product brand consisting of the MasterCraft brand and the Hydra-Sports brand.

New Accounting Pronouncements Issued But Not Yet Adopted

In March 2016, the Financial Accounting Standards Board (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. 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.

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.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. This ASU changes the measurement principle for inventories valued under the First-In, First-Out (“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. 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.

In May 2014, the FASB and International Accounting Standards Board jointly issued 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. In July 2015, the FASB announced that the implementation date would be delayed by one year. It will now be effective for annual and interim periods beginning after December 15, 2017. Early adoption is now permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this new guidance is expected to have on our financial position or results of operations and related disclosures.

New Accounting Pronouncements Issued and Adopted

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This ASU will become effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company adopted this guidance on a prospective basis during fiscal fourth quarter 2016.

In April 2015, the FASB issued ASU No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs related to the presentation requirements for debt issuance costs and debt discount and premium. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption of the amendments in ASU 2015-03 is permitted for financial statements that have not been previously issued. The Company adopted this guidance during the current fiscal year.

INVENTORIES

12 Months Ended

Jun. 30, 2016

INVENTORIES

INVENTORIES

4.INVENTORIES

Inventories at June 30, 2016 and 2015 consisted of the following:


	2016		2015
Raw materials and supplies	$	5,420	$	4,709
Work in process		2,196		1,783
Finished goods		5,984		5,529
Obsolescence reserve		(332)		(480)
Total inventories	$	13,268	$	11,541

Activity in the obsolescence reserve was as follows for the years ended June 30, 2016 and 2015:


	2016		2015
Beginning balance	$	(480)	$	(672)
Charged to costs and expenses		(359)		(776)
Disposals		507		968
Ending balance	$	(332)	$	(480)

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Jun. 30, 2016

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PREPAID EXPENSES AND OTHER CURRENT ASSETS

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets at June 30, 2016 and 2015, consisted of the following:


	2016		2015
Prepaid photo shoot	$	650	$	624
Insurance		591		513
Trade show deposits		133		107
Warranty Insurance		—		3,012
Deferred IPO costs		—		2,107
Other		406		872
Total prepaid expenses and other current assets	$	1,780	$	7,235

PROPERTY, PLANT, AND EQUIPMENT

12 Months Ended

Jun. 30, 2016

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT

6.PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment — net at June 30, 2016 and 2015, consisted of the following:


	2016		2015
Land and improvements	$	1,125	$	1,125
Buildings and improvements		8,371		7,743
Machinery and equipment		17,666		14,717
Furniture and fixtures		1,028		1,028
Construction in progress		1,930		1,693
Total property, plant, and equipment		30,121		26,306
Less accumulated depreciation		(16,295)		(13,073)
Property, plant, and equipment — net	$	13,826	$	13,233

Depreciation expense for the years ended June 30, 2016, 2015, and 2014 was $3,223, $3,057 and $2,251, respectively.

INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2016

INTANGIBLE ASSETS

INTANGIBLE ASSETS

7.INTANGIBLE ASSETS

As of June 30, 2016 and 2015, details of the Company’s intangible assets other than goodwill were as follows:


	2016
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Dealer network	$	1,590	$	(840)	$	750
Total amortizable intangible assets		1,590		(840)		750
Trade names		16,000		—		16,000
Total intangible assets	$	17,590	$	(840)	$	16,750


	2015
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Dealer network	$	1,590	$	(733)	$	857
Developed technologies for internal use		800		(686)		114
Total amortizable intangible assets		2,390		(1,419)		971
Trade names		16,000		—		16,000
Total intangible assets	$	18,390	$	(1,419)	$	16,971

The amortizable intangible assets reflected in the table above were determined by management to have finite lives. The useful life for the developed technology for internal use was based on review of historical lives of similar products, in conjunction with technology-specific factors and anticipated future trends in the industry. The useful life for the software was based on review of historical lives of similar products, in conjunction with technology-specific factors and anticipated future trends in the software industry and the marine industry. The useful life for the dealer network was based on the average tenure of the dealer group. None of the amortizable intangible assets are expected to have a residual value at the end of their respective useful lives. The intangible assets are amortized on a straight-line basis over the estimated useful lives.

The Company’s finite-lived intangible assets are amortized on a straight- line basis over the weighted-average amortization periods in the following table. The aggregate weighted-average amortization period is 8.2 years.


			Amortization Period
			(in years)
Dealer network			14
Developed technologies for internal use			7
Software			3
Order backlog			1

Trade names have been determined by management 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, 2016, 2015, and 2014, was $221, $222 and $221, respectively. Estimated amortization expense for the five years subsequent to June 30, 2016, is shown in the following table:


Fiscal years ending June 30,
2017	$	107
2018		107
2019		107
2020		107
2021		107
and thereafter		215
Total	$	750

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Jun. 30, 2016

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

8.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities at June 30, 2016 and 2015, consisted of the following:


	2016		2015
Warranty	$	11,392	$	10,228
Self-insurance		809		894
Compensation and related accruals		1,706		2,320
Inventory repurchase contingent obligation		742		923
Interest		1,178		790
Dealer incentives		4,336		3,568
Other		2,113		2,590
Total accrued expenses and other current liabilities	$	22,276	$	21,313

The following table provides a roll forward of the accrued warranty liability for the years ended June 30, 2016 and 2015:


	2016		2015
Beginning balance	$	10,228	$	8,033
Provisions		5,461		8,351
Payments made		(4,297)		(6,156)
Ending balance	$	11,392	$	10,228

Activity in dealer incentives for the years ended June 30, 2016 and 2015 was as follows:


	2016		2015
Beginning balance	$	3,568	$	1,996
Provisions		10,759		7,951
Payments made		(9,991)		(6,379)
Ending balance	$	4,336	$	3,568

FAIR VALUE MEASUREMENTS

12 Months Ended

Jun. 30, 2016

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

9. 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 fair value of the Company's common stock warrant liability according to its fair value hierarchy as of June 30, 2016 and 2015:


	2016 Fair Value Measurements Using
	Level 1		Level 2		Level 3
Liability — common stock warrant	$	—	$	—	$	—


	2015 Fair Value Measurements Using
	Level 1		Level 2		Level 3
Liability — common stock warrant	$	—	$	—	$	9,147

The Company classifies the common stock warrant within Level 3 because it was valued using valuation techniques using certain inputs that are unobservable in the market.

The Company had previously issued a common stock warrant for the purchase of 1,113,900 shares of common stock. The strike price was $4.27 per share and is subject to adjustment based on stock splits, stock dividends and certain other events or transactions. The warrant would have expired in June 2019 had it not been fully exercised.

The Company used an option pricing model to estimate the fair value of the warrant as of June 30, 2015. Key inputs used in valuing the Company’s warrant include the Company’s common stock price (estimated using a combination of the income and market approach), the Company’s common stock price volatility, risk-free interest rate, and exercise price of the warrant. The estimated expected volatility was based on the volatility of common stock of a group of comparable, publicly traded companies.

As of June 3, 2016 all holders of the common stock warrants had exchanged or exercised their warrants for common stock. This resulted in a decrease in the warrant liability during fiscal year end June 30, 2016. The Company had classified the warrant as a liability and recorded it at the estimated fair value at each reporting date.

The following table shows the reconciliation from the beginning to the ending balance for the Company’s common stock warrant liability measured at fair value on a recurring basis using significant unobservable inputs (i.e., Level 3):


	2016		2015
Beginning balance	$	9,147	$	2,526
Issuance of shares for common stock warrant		(12,572)		—
Change in common stock warrant fair value		3,425		6,621
Ending balance	$	—	$	9,147

The Company estimated the common stock warrant using an option pricing model with the following assumptions at June 30, 2015.


	2015
Expected term (in years)	0.50
Risk-free rate	0.11	%
Expected volatility	52.95	%
Dividend rate	—	%

- 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, 2016

LONG-TERM DEBT

LONG-TERM DEBT

10. LONG-TERM DEBT

Long-term debt outstanding at June 30, 2016 and 2015 is as follows:


	2016		2015
Revolving credit facility	$	3,126	$	8,189
Senior secured term notes		50,000		70,573
Debt discount on term loan		(899)		—
Total debt		52,227		78,762
Less current portion of long-term debt		8,126		18,275
Less current portion of debt discount		(241)		—
Long-term debt — less current portion	$	44,342	$	60,487

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 “Amended and Restated Credit and Guaranty 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. The dividend per basic and diluted common share was $3.95 and $3.71, respectively.

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 “Amended Credit Agreement”). The Amended Credit Agreement replaces the Company’s Amended and Restated Credit Agreement, dated March 13, 2015 (as amended in February 2016. The Amended Credit Agreement provides the Company with an $80,000 senior secured credit facility, consisting of a $50,000 term loan (the “Term Loan”) and a $30,000 revolving credit facility (the “Revolving Credit Facility”). The Amended Credit Agreement bears interest, at the Company’s option, at either the prime rate plus an applicable margin ranging from 0.75% to 1.50% or at an adjusted London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging from 2.75% to 3.50%, in each case based on the Company’s senior leverage ratio. Based on the Company’s current senior leverage ratio, 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 3.00%. The Amended Credit Agreement is secured by a first-priority security interest in substantially all of the Company’s assets. Obligations under the Amended Credit Agreement are guaranteed by the Company and each of its domestic subsidiaries.

The Amended Credit Agreement contains a number of covenants that, among other things, restrict the Company’s ability to, subject to specified exceptions, incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve; engage in businesses that are not in a related line of business; make loans, advances or guarantees; pay dividends or make other distributions; engage in transactions with affiliates; and make investments. The Company is also required to maintain a specified consolidated fixed charge coverage ratio and a specified total leverage ratio. The Amended Credit Agreement includes customary events of default, including, but not limited to, payment defaults, covenant defaults, breaches of representations and warranties, cross-defaults to certain indebtedness, certain events of bankruptcy and insolvency, defaults under any security documents, and a change of control. The Term Loan will mature and all remaining amounts outstanding thereunder will be due and payable on May 26, 2021. 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.

As of June 30, 2016 and 2015, the Company had borrowings of $3,126 and $8,189, respectively, outstanding on its revolving loans and net availability of $26,627 and $20,636, respectively. Our availability was reduced by our outstanding letters of credit. There were specified letters of credit outstanding of $250 and $1,175 at June 30, 2016 and June 30, 2015, respectively. As of June 30, 2016 and 2015, the effective interest rate on borrowings outstanding were 3.559% and 4.195%, respectively. As of June 30, 2016 the Company was in compliance with all of its debt covenants under its line of credit.

Long-term debt maturities for the Term Loan subsequent to June 30, 2016 are as follows:


Fiscal years ending June 30,
2017	$	5,000
2018		5,000
2019		7,500
2020		7,500
2021		25,000
Total	$	50,000

INCOME TAXES

12 Months Ended

Jun. 30, 2016

INCOME TAXES

INCOME TAXES

11. INCOME TAXES

Earnings from continuing operations before income taxes and equity by jurisdiction were all in the United States except for income of $53 and a loss of $128 in 2016 and 2015, respectively.

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


	For the Years Ended June 30,
	2016		2015		2014
Current income tax expense:
Federal	$	10,530	$	436	$	3,467
State and other		2,020		96		304
Benefit of operating loss carryforwards		(319)		—		(3,680)
Total current tax expense		12,231		532		91
Deferred tax benefit:
Federal		(3,583)		5,636		(10,639)
State and other		(340)		426		(866)
Total deferred tax benefit		(3,923)		6,062		(11,505)
Income tax expense (benefit)	$	8,308	$	6,594	$	(11,414)

During the year ended June 30, 2016, the valuation allowance increased by $12. The valuation allowance increased by $36 during the year ended June 30, 2015. The valuation allowance decreased by $15,570 during the year ended June 30, 2014. During the fiscal year ended June 30, 2014, the Company determined it was more likely than not that the majority of the deferred tax assets will be realized due to improved financial performance and management’s expectations regarding future financial performance.

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
	2016		2015		2014
Statutory income tax rate	35.00	%	34.00	%	34.00	%
State taxes (net of federal income tax benefit and valuation allowance)	0.41		2.73		(8.65)
Valuation allowance	0.06		0.30		(166.86)
Tax credits	(2.82)		—		—
Other	(0.21)		(2.95)		(0.69)
Uncertain tax positions	6.06		(0.55)		(2.47)
Permanent differences	6.36		20.84		10.59
Effective income tax rate	44.86	%	54.37	%	(134.08)	%

As of June 30, 2016 and 2015, a summary of the significant components of the Company’s deferred tax assets and liabilities was as follows:


	2016		2015
Deferred tax assets:
Warranty reserves	$	4,301	$	4,271
Repurchase agreements		280		338
Other reserves		998		1,043
Non-Deductible transaction fees		—		260
Unrecognized tax benefits		719		175
Stock Compensation		4,527		92
Federal net operating loss		—		553
State net operating loss		130		130
Foreign net operating loss		117		106
Valuation allowance		(247)		(235)
Total deferred tax assets		10,825		6,733
Deferred tax liabilities:
Depreciation		(907)		(837)
Intangible asset basis difference		(6,406)		(6,311)
Other		(11)		(8)
Total deferred tax liabilities		(7,324)		(7,156)
Net deferred tax assets (liabilities)	$	3,501	$	(423)

Deferred tax assets and liabilities are classified as current and noncurrent amounts in the accompanying consolidated balance sheets according to the classification of the related asset and liability. The Company adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes during the fiscal fourth quarter 2016 and under this guidance all deferred tax assets and liabilities, along with any related valuation allowance, as of June 30, 2016 were classified as noncurrent on the balance sheet.


	2016		2015
Current deferred tax asset	$	—	$	6,733
Noncurrent deferred tax assets		3,501		—
Noncurrent deferred tax liabilities		—		(7,156)
Net deferred tax assets (liabilities)	$	3,501	$	(423)

The Company has state net operating loss carryforwards of $3,013. However, the Company determined that it is more likely than not that the benefit from these state NOL carryforwards will not be realized. In recognition of this risk, MCBC has provided a full valuation allowance of $3,013 on the deferred tax assets relating to these state 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:


	2016		2015
Balance at July 1	$	328	$	370
Additions based on tax positions related to the current year		623		54
Additions for tax positions of prior years		1,143		(96)
Reductions for tax positions of prior years		(40)		—
Balance at June 30	$	2,054	$	328

Of this total, $667 and $344 as of June 30, 2016 and 2015, 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, 2016, and 2015 were a benefit of $57 and $59, respectively. The amounts accrued for interest and penalties at June 30, 2016 and 2015 were $135 and $192 respectively.

The Company and its subsidiaries are subject to US 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, 2010. The Company expects the total amount of unrecognized benefits to increase by approximately $317 in the next twelve months.

STOCK-BASED COMPENSATION

12 Months Ended

Jun. 30, 2016

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

12.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, deferred stock, deferred stock units, performance awards, SARs, and cash awards. The Company does not intend to grant any additional awards under its prior 2010 Equity Plan. As of June 30, 2016, there were 1,803,226 shares available for issuance under the 2015 Plan. All outstanding awards granted under the Company’s 2010 Equity Incentive Plan have vested and were issued during the fiscal year ended June 30, 2016. The Company does not intend to grant additional awards under the 2010 Equity Plan.

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, 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. During the fiscal year ended June 30, 2016, the Company recognized $13,444 in stock-based compensation from these restricted stock awards.

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 will vest in 25% increments annually on each of the first four anniversaries of the grant date. During the fiscal year ended June 30, 2016, there were 15,146 stock options forfeited. The Company recognized $243 from these NSOs in stock-based compensation during the fiscal year ended June 30, 2016. We 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 does not have sufficient information on which to base a reasonable and supportable estimate of expected volatility of its share price, because they have 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 uses 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. There was no stock-based compensation recognized for the fiscal year ended June 30, 2015.

A summary of option activity for the year ending June 30, 2016 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
		Exercise		Contractual	Intrinsic
	Shares	Price		Term (Yrs.)	Value
Outstanding at beginning of year	86,985	$	4.03	4.7	$	9.57
Granted	137,786	$	15.00	10.0	$	—
Exercised	(86,985)	$	4.03	—	$	11.73
Forfeited or expired	(15,146)	$	15.00	—	$	—
Outstanding at end of year	122,640	$	10.70	9.1	$	0.35
Fully vested and exercisable at end of year	—	$	—	—	$	—

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, 2016

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

13. COMMITMENTS AND CONTINGENCIES

The Company leases equipment and warehouse space under operating lease agreements expiring through 2020. Rental expense was $390, $262, and $293 during the years ended June 30, 2016, 2015, and 2014, respectively. Future minimum rental payments under all non-cancelable operating leases with remaining lease terms in excess of one year at June 30, 2016, are as follows:


Fiscal years ending June 30,
2017	$	434
2018		408
2019		227
2020		36
2021		10
and thereafter		1
Total	$	1,116

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 $88,810 and $64,061 as of June 30, 2016 and 2015, respectively. The Company repurchased 9 units for the year ended June 30, 2015 under the repurchase obligation agreement with GE Australia. All of the boats repurchased were re-sold during the year ended June 30, 2015. No units were repurchased for the year ended 2016. The Company recorded a liability of $742 and $923 as of June 30, 2016 and 2015, 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 expiring June 30, 2019. 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, 2016 and 2015, respectively. Estimated purchases under the agreement range from approximately $26,000 to $29,000 for each of the years ending June 30, 2017 thru 2019.

Future minimum purchase commitments for the remainder of the exclusive supply agreement are as follows:


Fiscal years ending June 30,
2017	$	1,109
2018		1,153
2019		1,153
Total	$	3,415

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.

Legal Contingencies

In June 2015, Malibu Boats, LLC (“Malibu”) filed a complaint in the United States District Court for the Eastern District of Tennessee alleging that the Company’s Gen 2 Surf System and NXT Surf System infringe a Malibu patent relating to Malibu’s wake surf technology. The complaint seeks trebled damages in an unspecified amount, attorneys’ fees and an injunction against future infringement. In August 2015, the Company filed a motion with the court for summary judgment of noninfringement. In February 2016, the court denied the Company’s summary judgment motion without prejudice to refiling after the court interprets the patent claims. Malibu filed another complaint alleging that the Company’s Gen 2 and NXT Surf Systems infringe another patent in February 2016. As with the previous complaint, Malibu is seeking damages and an injunction. In March 2016, the Company filed a motion to dismiss part of Malibu’s complaint, specifically, Malibu’s claim that the Company’s alleged infringement has been willful. Malibu filed an opposition to the motion to dismiss in March 2016, the Company filed a reply in April 2016 and a tentative trial date has been set for May 2017. The parties are awaiting a decision from the court on the Company’s motion to dismiss. The Company does not believe that Malibu’s claims have merit and we intend to defend against these claims vigorously. The Company currently cannot assess the probability of losses, or reasonably estimate the range of losses, related to this matter.

RELATED PARTY

12 Months Ended

Jun. 30, 2016

RELATED PARTY

RELATED PARTY

14. RELATED PARTY

The Company had a former officer of a subsidiary who was also the owner of a dealership and a customer. This dealership purchased boats from the Company and participated in marketing and other sales events jointly with the Company. These transactions resulted in receivables from the dealership, sales and related costs of the boats sold, as well as payables and other charges. In addition this related party received a management fee and other administrative fees for assistance in managing international boat sales. The schedule below identifies balances included in the consolidated balance sheets and statements of operations at June 30, 2016, 2015 and 2014.


	2016		2015		2014
Sales	$	—	$	—	$	160
Cost of sales		—		—		111
Management fee		—		—		200
Accounts payable/accrued liabilities		—		—		181
Sales, marketing and office expenses		—		—		1,585
Interest expense (Wayzata entities — Note 10)		—		1,639		6,853

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

COMMON STOCK AND COMMON STOCK WARRANT	12 Months Ended
COMMON STOCK AND COMMON STOCK WARRANT	Jun. 30, 2016
COMMON STOCK AND COMMON STOCK WARRANT
COMMON STOCK AND COMMON STOCK WARRANT	15. COMMON STOCK AND COMMON STOCK WARRANT As of June 30, 2016, 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. On June 30, 2009, the Company issued a common stock warrant for the purchase of 1,113,900 common. The strike price was $4.27 per share and was to be adjusted based on the stock splits, stock dividends and certain other events or transactions. The warrant expired in June 2019 if not exercised. As of June 30, 2015, the Company classified the warrant as a liability and recorded the liability at the estimated fair value of $9,147. As of June 30, 2016 all of the common stock warrants had been exercised or exchanged

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: 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.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 210
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-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Subparagraph (SX 210.3-04)
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-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
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+ Details

EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2016

EARNINGS PER SHARE

EARNINGS PER SHARE

16. EARNINGS PER SHARE

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


	2016		2015		2014
Net income	$	10,210	$	5,534	$	19,927
Weighted average common shares — basic		17,849,319		11,139,000		11,139,000
Dilutive effect of assumed exercises of stock options		50,775		57,126		43,264
Dilutive effect of assumed restricted share awards		268,853		—		—
Dilutive effect of assumed exercises of common stock warrant		88,060		666,573		—
Weighted average outstanding shares — diluted		18,257,007		11,862,699		11,182,264
Basic earnings per share	$	0.57	$	0.50	$	1.79
Diluted earnings per share	$	0.56	$	0.47	$	1.78

For the year ended June 30 2016, stock options for 124,020 shares of common stock were not considered in computing diluted earnings per share because they were anti-dilutive. There were no anti-dilutive options or warrant shares excluded from the dilutive shares outstanding for the year ended June 30, 2015. For the year ended June 30, 2014, stock options for 54,492 shares of common stock were not considered in computing diluted earnings per share because they were anti-dilutive and a common stock warrant for 1,113,900 shares was not considered in computing diluted earnings per share 2014 because they were anti-dilutive.

SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2016

SEGMENT INFORMATION

SEGMENT INFORMATION

17. SEGMENT INFORMATION

The Company designs, manufactures, and markets recreational performance boats and previously had two operating and reportable segments: MasterCraft and Hydra-Sports. 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 and wake surfing, and general recreational boating. The Company distributes the MasterCraft product brand through its dealer network. The Company manufactures Hydra-Sports recreational fishing boats under a contract manufacturing agreement with Hydra-Sports Custom Boats, LLC, an unrelated third party. All sales related to the Hydra-Sports brand are to the unrelated third party. 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.

On June 30, 2012, the Company sold the trade name, tooling, certain machinery, and finished goods of its Hydra-Sports business to Hydra-Sports Custom Boats, LLC, an unaffiliated third party. The Company concurrently entered into an agreement with the purchaser to contract manufacture a specified number of Hydra-Sports models annually at established prices, using certain of the tooling and machinery assets sold to Hydra-Sports Custom Boats, LLC which remained in use by the Company at the Company’s manufacturing facility for the duration of the manufacturing contract. This manufacturing agreement expired on June 30, 2015 and the Company did not renew it. The Company determined that this will not have a major effect on its operations and financial results and decided to early adopt FASB issued ASU 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity."

Sales outside of North America accounted for 8.6%, 10.1%, and 14.6% of net sales of the MasterCraft segment for the years ended June 30, 2016, 2015, and 2014, 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, 2016 and 2015. All sales for fiscal years ended June 30, 2015 and 2014 in the Hydra-Sports segment were domestic.

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.

The Company does not maintain separate balance sheets for operating segments because this information is not considered meaningful for decision making. All corporate costs are allocated to MasterCraft.

For the year ended June 30, 2016, the operating information for the reportable segments is shown as follows:


	MasterCraft		Hydra-Sports		Consolidated
Net sales	$	221,600	$	—	$	221,600
Cost of sales		160,521		—		160,521
Operating income		22,011		—		22,011
Depreciation and amortization		3,444		—		3,444

For the year ended June 30, 2015, the operating information for the reportable segments is shown as follows:


	MasterCraft		Hydra-Sports		Consolidated
Net sales	$	199,907	$	14,479	$	214,386
Cost of sales		150,622		12,598		163,220
Operating income		21,695		2,225		23,920
Depreciation and amortization		3,169		109		3,278

For the year ended June 30, 2014, the operating information for the reportable segments is shown as follows:


	MasterCraft		Hydra-Sports		Consolidated
Net sales	$	163,631	$	13,956	$	177,587
Cost of sales		127,657		12,318		139,975
Operating income		16,971		1,623		18,594
Depreciation and amortization		2,340		132		2,472

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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+ Details

QUARTERLY FINANCIAL REPORTING (UNAUDITED)

12 Months Ended

Jun. 30, 2016

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, 2016 and 2015.


		June 30		March 27		December 27		September 27
		2016		2016		2015		2015

Net sales	$	53,386	$	57,030	$	55,203	$	55,981
Gross profit		14,033		15,842		15,365		15,839
Operating income		7,698		7,513		2,780		4,020
Net income	$	4,769	$	4,894	$	1,870	$	(1,323)
Basic earnings per common share	$	0.27	$	0.26	$	0.10	$	(0.08)
Diluted earnings per common share	$	0.26	$	0.26	$	0.10	$	(0.08)
Weighted average shares used for computation of:(1)
Basic earnings per common share		17,849,319		18,574,887		17,998,796		16,263,793
Diluted earnings per common share		18,257,007		18,779,557		18,606,884		16,263,793


		June 30		March 29		December 28		September 28
		2015		2015		2014		2014

Net sales	$	54,853	$	54,282	$	52,827	$	52,424
Gross profit		12,802		12,887		12,696		12,781
Operating income		6,792		1,088		8,013		8,027
Net income	$	2,537	$	105	$	1,474	$	1,418
Basic earnings per common share	$	0.23	$	0.01	$	0.13	$	0.13
Diluted earnings per common share	$	0.21	$	0.01	$	0.13	$	0.12
Weighted average shares used for computation of:(1)
Basic earnings per common share		11,139,000		11,139,000		11,139,000		11,139,000
Diluted earnings per common share		11,954,984		11,995,366		11,642,716		11,495,079

(1)

The weighted average shares used for computation of basic and diluted earnings per common share gives effect to the 11.139-for-1stock split consummated on July 22, 2015 in connection with the Company’s initial public offering and excludes the 6,071,429 shares sold in the offering.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2016
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	19. SUBSEQUENT EVENTS The Company has completed an evaluation of all subsequent events after the balance sheet date of June 30, 2016 through the date these consolidated financial statements were issued. Effective August 30, 2016, the Company entered into a interest rate cap agreement with its existing lender to cap its LIBOR rate at 1% for one-half the balance of its outstanding Term Loan. On August 19, 2016, the Company executed the Amendment No. 1 (the “Amendment”) to the Second Amended and Restated Credit and Guaranty Agreement. The Amendment is effective as of August 19, 2016 and amends the Credit Agreement to provide that LIBOR loans made under the Credit Agreement mature on the last day of each month, as requested by the Company.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2016

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Use of Estimates

Revenue Recognition

Dealer Incentives

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	-	5	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

Common Stock Warrant

Advertising

Fair Value Measurements

Fair Value of Financial Instruments

Repurchase Commitments

Earnings Per Common Share

Operating Leases

Segment Information

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2016

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	-	5	years

INVENTORIES (Tables)

12 Months Ended

Jun. 30, 2016

INVENTORIES

Schedule of inventories


	2016		2015
Raw materials and supplies	$	5,420	$	4,709
Work in process		2,196		1,783
Finished goods		5,984		5,529
Obsolescence reserve		(332)		(480)
Total inventories	$	13,268	$	11,541

Schedule of activity in the obsolescence reserve


	2016		2015
Beginning balance	$	(480)	$	(672)
Charged to costs and expenses		(359)		(776)
Disposals		507		968
Ending balance	$	(332)	$	(480)

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Jun. 30, 2016

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Schedule of prepaid expenses and other current assets


	2016		2015
Prepaid photo shoot	$	650	$	624
Insurance		591		513
Trade show deposits		133		107
Warranty Insurance		—		3,012
Deferred IPO costs		—		2,107
Other		406		872
Total prepaid expenses and other current assets	$	1,780	$	7,235

PROPERTY, PLANT, AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2016

PROPERTY, PLANT, AND EQUIPMENT

Schedule of property, plant, and equipment - net


	2016		2015
Land and improvements	$	1,125	$	1,125
Buildings and improvements		8,371		7,743
Machinery and equipment		17,666		14,717
Furniture and fixtures		1,028		1,028
Construction in progress		1,930		1,693
Total property, plant, and equipment		30,121		26,306
Less accumulated depreciation		(16,295)		(13,073)
Property, plant, and equipment — net	$	13,826	$	13,233

INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2016

INTANGIBLE ASSETS

Schedule of intangible assets other than goodwill


	2016
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Dealer network	$	1,590	$	(840)	$	750
Total amortizable intangible assets		1,590		(840)		750
Trade names		16,000		—		16,000
Total intangible assets	$	17,590	$	(840)	$	16,750


	2015
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Dealer network	$	1,590	$	(733)	$	857
Developed technologies for internal use		800		(686)		114
Total amortizable intangible assets		2,390		(1,419)		971
Trade names		16,000		—		16,000
Total intangible assets	$	18,390	$	(1,419)	$	16,971

Schedule of weighted-average amortization periods for finite-lived intangible assets


			Amortization Period
			(in years)
Dealer network			14
Developed technologies for internal use			7
Software			3
Order backlog			1

Schedule of estimated amortization expense


Fiscal years ending June 30,
2017	$	107
2018		107
2019		107
2020		107
2021		107
and thereafter		215
Total	$	750

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Jun. 30, 2016

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	2016		2015
Warranty	$	11,392	$	10,228
Self-insurance		809		894
Compensation and related accruals		1,706		2,320
Inventory repurchase contingent obligation		742		923
Interest		1,178		790
Dealer incentives		4,336		3,568
Other		2,113		2,590
Total accrued expenses and other current liabilities	$	22,276	$	21,313

Schedule of roll forward of the accrued warranty liability


	2016		2015
Beginning balance	$	10,228	$	8,033
Provisions		5,461		8,351
Payments made		(4,297)		(6,156)
Ending balance	$	11,392	$	10,228

Schedule of activity in accrued dealer incentives


	2016		2015
Beginning balance	$	3,568	$	1,996
Provisions		10,759		7,951
Payments made		(9,991)		(6,379)
Ending balance	$	4,336	$	3,568

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 2016

Jun. 30, 2015

FAIR VALUE MEASUREMENTS

Liabilities measured at fair value


	2016 Fair Value Measurements Using
	Level 1		Level 2		Level 3
Liability — common stock warrant	$	—	$	—	$	—


	2015 Fair Value Measurements Using
	Level 1		Level 2		Level 3
Liability — common stock warrant	$	—	$	—	$	9,147

Reconciliation from the beginning to the ending balance for the Company's common stock warrant liability measured at fair value on a recurring basis using Level 3 inputs


	2016		2015
Beginning balance	$	9,147	$	2,526
Issuance of shares for common stock warrant		(12,572)		—
Change in common stock warrant fair value		3,425		6,621
Ending balance	$	—	$	9,147

Assumptions used for option pricing model of common stock warrant


	2015
Expected term (in years)	0.50
Risk-free rate	0.11	%
Expected volatility	52.95	%
Dividend rate	—	%

LONG-TERM DEBT (Tables)

12 Months Ended

Jun. 30, 2016

LONG-TERM DEBT

Schedule of long-term debt outstanding


	2016		2015
Revolving credit facility	$	3,126	$	8,189
Senior secured term notes		50,000		70,573
Debt discount on term loan		(899)		—
Total debt		52,227		78,762
Less current portion of long-term debt		8,126		18,275
Less current portion of debt discount		(241)		—
Long-term debt — less current portion	$	44,342	$	60,487

Schedule of maturities of long-term debt


Fiscal years ending June 30,
2017	$	5,000
2018		5,000
2019		7,500
2020		7,500
2021		25,000
Total	$	50,000

- 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=6928386&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=6479336&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=34725769&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=6928386&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=6928386&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=6451184&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=6451184&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=6928386&loc=d3e21521-112644

+ Details

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2016

INCOME TAXES

Schedule of the components of the provision for income taxes


	For the Years Ended June 30,
	2016		2015		2014
Current income tax expense:
Federal	$	10,530	$	436	$	3,467
State and other		2,020		96		304
Benefit of operating loss carryforwards		(319)		—		(3,680)
Total current tax expense		12,231		532		91
Deferred tax benefit:
Federal		(3,583)		5,636		(10,639)
State and other		(340)		426		(866)
Total deferred tax benefit		(3,923)		6,062		(11,505)
Income tax expense (benefit)	$	8,308	$	6,594	$	(11,414)

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


	For the Years Ended June, 30
	2016		2015		2014
Statutory income tax rate	35.00	%	34.00	%	34.00	%
State taxes (net of federal income tax benefit and valuation allowance)	0.41		2.73		(8.65)
Valuation allowance	0.06		0.30		(166.86)
Tax credits	(2.82)		—		—
Other	(0.21)		(2.95)		(0.69)
Uncertain tax positions	6.06		(0.55)		(2.47)
Permanent differences	6.36		20.84		10.59
Effective income tax rate	44.86	%	54.37	%	(134.08)	%

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


	2016		2015
Deferred tax assets:
Warranty reserves	$	4,301	$	4,271
Repurchase agreements		280		338
Other reserves		998		1,043
Non-Deductible transaction fees		—		260
Unrecognized tax benefits		719		175
Stock Compensation		4,527		92
Federal net operating loss		—		553
State net operating loss		130		130
Foreign net operating loss		117		106
Valuation allowance		(247)		(235)
Total deferred tax assets		10,825		6,733
Deferred tax liabilities:
Depreciation		(907)		(837)
Intangible asset basis difference		(6,406)		(6,311)
Other		(11)		(8)
Total deferred tax liabilities		(7,324)		(7,156)
Net deferred tax assets (liabilities)	$	3,501	$	(423)

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


	2016		2015
Current deferred tax asset	$	—	$	6,733
Noncurrent deferred tax assets		3,501		—
Noncurrent deferred tax liabilities		—		(7,156)
Net deferred tax assets (liabilities)	$	3,501	$	(423)

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


	2016		2015
Balance at July 1	$	328	$	370
Additions based on tax positions related to the current year		623		54
Additions for tax positions of prior years		1,143		(96)
Reductions for tax positions of prior years		(40)		—
Balance at June 30	$	2,054	$	328

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Jun. 30, 2016

STOCK-BASED COMPENSATION

Schedule of stock option activity in the 2010 Plan

A summary of option activity for the year ending June 30, 2016 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
		Exercise		Contractual	Intrinsic
	Shares	Price		Term (Yrs.)	Value
Outstanding at beginning of year	86,985	$	4.03	4.7	$	9.57
Granted	137,786	$	15.00	10.0	$	—
Exercised	(86,985)	$	4.03	—	$	11.73
Forfeited or expired	(15,146)	$	15.00	—	$	—
Outstanding at end of year	122,640	$	10.70	9.1	$	0.35
Fully vested and exercisable at end of year	—	$	—	—	$	—

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Jun. 30, 2016

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,
2017	$	434
2018		408
2019		227
2020		36
2021		10
and thereafter		1
Total	$	1,116

Future minimum purchase commitments for the remainder of the exclusive supply agreement


Fiscal years ending June 30,
2017	$	1,109
2018		1,153
2019		1,153
Total	$	3,415

RELATED PARTY (Tables)

12 Months Ended

Jun. 30, 2016


	2016		2015		2014
Sales	$	—	$	—	$	160
Cost of sales		—		—		111
Management fee		—		—		200
Accounts payable/accrued liabilities		—		—		181
Sales, marketing and office expenses		—		—		1,585
Interest expense (Wayzata entities — Note 10)		—		1,639		6,853

EARNINGS PER SHARE (Tables)

12 Months Ended

Jun. 30, 2016

EARNINGS PER SHARE

Factors used in the earnings per share computation


	2016		2015		2014
Net income	$	10,210	$	5,534	$	19,927
Weighted average common shares — basic		17,849,319		11,139,000		11,139,000
Dilutive effect of assumed exercises of stock options		50,775		57,126		43,264
Dilutive effect of assumed restricted share awards		268,853		—		—
Dilutive effect of assumed exercises of common stock warrant		88,060		666,573		—
Weighted average outstanding shares — diluted		18,257,007		11,862,699		11,182,264
Basic earnings per share	$	0.57	$	0.50	$	1.79
Diluted earnings per share	$	0.56	$	0.47	$	1.78

SEGMENT INFORMATION (Tables)

12 Months Ended

Jun. 30, 2016

SEGMENT INFORMATION

Schedule of operating information for reportable segments

For the year ended June 30, 2016, the operating information for the reportable segments is shown as follows:


	MasterCraft		Hydra-Sports		Consolidated
Net sales	$	221,600	$	—	$	221,600
Cost of sales		160,521		—		160,521
Operating income		22,011		—		22,011
Depreciation and amortization		3,444		—		3,444

For the year ended June 30, 2015, the operating information for the reportable segments is shown as follows:


	MasterCraft		Hydra-Sports		Consolidated
Net sales	$	199,907	$	14,479	$	214,386
Cost of sales		150,622		12,598		163,220
Operating income		21,695		2,225		23,920
Depreciation and amortization		3,169		109		3,278

For the year ended June 30, 2014, the operating information for the reportable segments is shown as follows:


	MasterCraft		Hydra-Sports		Consolidated
Net sales	$	163,631	$	13,956	$	177,587
Cost of sales		127,657		12,318		139,975
Operating income		16,971		1,623		18,594
Depreciation and amortization		2,340		132		2,472

QUARTERLY FINANCIAL REPORTING (UNAUDITED) (Tables)

12 Months Ended

Jun. 30, 2016

QUARTERLY FINANCIAL REPORTING (UNAUDITED)

Schedule of quarterly financial information


		June 30		March 27		December 27		September 27
		2016		2016		2015		2015

Net sales	$	53,386	$	57,030	$	55,203	$	55,981
Gross profit		14,033		15,842		15,365		15,839
Operating income		7,698		7,513		2,780		4,020
Net income	$	4,769	$	4,894	$	1,870	$	(1,323)
Basic earnings per common share	$	0.27	$	0.26	$	0.10	$	(0.08)
Diluted earnings per common share	$	0.26	$	0.26	$	0.10	$	(0.08)
Weighted average shares used for computation of:(1)
Basic earnings per common share		17,849,319		18,574,887		17,998,796		16,263,793
Diluted earnings per common share		18,257,007		18,779,557		18,606,884		16,263,793


		June 30		March 29		December 28		September 28
		2015		2015		2014		2014

Net sales	$	54,853	$	54,282	$	52,827	$	52,424
Gross profit		12,802		12,887		12,696		12,781
Operating income		6,792		1,088		8,013		8,027
Net income	$	2,537	$	105	$	1,474	$	1,418
Basic earnings per common share	$	0.23	$	0.01	$	0.13	$	0.13
Diluted earnings per common share	$	0.21	$	0.01	$	0.13	$	0.12
Weighted average shares used for computation of:(1)
Basic earnings per common share		11,139,000		11,139,000		11,139,000		11,139,000
Diluted earnings per common share		11,954,984		11,995,366		11,642,716		11,495,079

(1)

BASIS OF PRESENTATION - Initial Public Offering (Details) $ / shares in Units, $ in Thousands				12 Months Ended
	Jun. 10, 2016 $ / shares	Jun. 06, 2016 $ / shares	Jul. 22, 2015 $ / shares shares	Jun. 30, 2016 USD ($)
Initial Public Offering
Offering expenses of IPO paid in current year				$ 7,202
Special dividend paid (dollars per share) \| $ / shares		$ 4.30
Common shares
Initial Public Offering
Stock split, conversion ratio			11.139
Special dividend paid (dollars per share) \| $ / shares	$ 4.30
Common shares \| IPO
Initial Public Offering
Shares sold \| shares			6,071,429
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 current year				$ 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

SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Shipping and Handling Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Revenue Recognition
Rebates	$ 6,701	$ 5,152	$ 3,946
Floor plan reimbursement costs	3,472	2,459	2,181
Shipping and Handling Costs
Shipping and handling costs billed to customers	4,043	4,155	4,050
Shipping and handling costs included in cost of sales	3,952	4,461	$ 3,564
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, 2016 USD ($) item	Jun. 30, 2015 USD ($) item	Jun. 30, 2014 USD ($) item
Concentrations of Credit and Business Risk
Accounts payable	$ 13,112	$ 14,808
Supplier Concentration Risk \| Cost of Goods \| Engine Supplier
Concentrations of Credit and Business Risk
Number of vendors \| item	1	1	1
Purchases during period	$ 31,232	$ 29,027	$ 24,426
Accounts payable	$ 2,309	$ 2,506

SIGNIFICANT ACCOUNTING POLICIES - Property, Plant, and Equipment (Details)	12 Months Ended
	Jun. 30, 2016
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	5 years

SIGNIFICANT ACCOUNTING POLICIES - Warranties, Research and Development, Deferred Financing Costs, and Other (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2016 USD ($) segment	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($) item
Goodwill and Other Intangible Assets
Impairment of indefinite-lived intangible assets	$ 0	$ 0	$ 0
Product Warranties
Year within the product warranty term in which insurance coverage begins \| item			2
Year within the product warranty term in which insurance coverage ends \| item			5
Research and Development
Research and development expenditures	3,508	3,027	$ 2,722
Deferred Financing Costs
Deferred financing costs incurred	300	453	609
Amortization of deferred financing costs	85	42	61
Advertising
Advertising costs	$ 5,725	$ 5,521	$ 5,255
Repurchase Commitments
Maximum term of repurchase commitments		2 years 6 months
Segment Information
Number of reportable segments \| segment	2
Maximum
Product Warranties
Product warranty term	5 years

INVENTORIES - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
INVENTORIES
Raw materials and supplies	$ 5,420	$ 4,709
Work in process	2,196	1,783
Finished goods	5,984	5,529
Obsolescence reserve	(332)	(480)	$ (672)
Total inventories	$ 13,268	$ 11,541

INVENTORIES - Obsolescence Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Activity in the obsolescence reserve
Beginning balance	$ (480)	$ (672)
Charged to costs and expenses	(359)	(776)
Disposals	507	968
Ending balance	$ (332)	$ (480)

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid photo shoot	$ 650	$ 624
Insurance	591	513
Trade show deposits	133	107
Warranty insurance		3,012
Deferred IPO costs		2,107
Other	406	872
Total prepaid expenses and other current assets	$ 1,780	$ 7,235

PROPERTY, PLANT, AND EQUIPMENT - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Property, plant, and equipment-net
Total property, plant, and equipment	$ 30,121	$ 26,306
Less accumulated depreciation	(16,295)	(13,073)
Property, plant, and equipment — net	13,826	13,233
Land and improvements
Property, plant, and equipment-net
Total property, plant, and equipment	1,125	1,125
Buildings and improvements
Property, plant, and equipment-net
Total property, plant, and equipment	8,371	7,743
Machinery and equipment
Property, plant, and equipment-net
Total property, plant, and equipment	17,666	14,717
Furniture and fixtures
Property, plant, and equipment-net
Total property, plant, and equipment	1,028	1,028
Construction in progress
Property, plant, and equipment-net
Total property, plant, and equipment	$ 1,930	$ 1,693

PROPERTY, PLANT, AND EQUIPMENT - Depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
PROPERTY, PLANT, AND EQUIPMENT
Depreciation	$ 3,223	$ 3,057	$ 2,251

INTANGIBLE ASSETS - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Amortizable intangible assets
Gross Carrying Amount	$ 1,590	$ 2,390
Accumulated Amortization	(840)	(1,419)
Net Carrying Amount	750	971
Indefinite-lived intangible assets
Trade names	16,000	16,000
Total intangible assets
Gross Carrying Amount	17,590	18,390
Net Carrying Amount	16,750	16,971
Dealer network
Amortizable intangible assets
Gross Carrying Amount	1,590	1,590
Accumulated Amortization	(840)	(733)
Net Carrying Amount	$ 750	857
Developed technologies for internal use
Amortizable intangible assets
Gross Carrying Amount		800
Accumulated Amortization		(686)
Net Carrying Amount		$ 114

INTANGIBLE ASSETS - Amortization Periods (Details)	12 Months Ended
INTANGIBLE ASSETS - Amortization Periods (Details)	Jun. 30, 2016
Finite-lived intangible assets
Amortization Period (in years)	8 years 2 months 12 days
Dealer network
Finite-lived intangible assets
Amortization Period (in years)	14 years
Developed technologies for internal use
Finite-lived intangible assets
Amortization Period (in years)	7 years
Software
Finite-lived intangible assets
Amortization Period (in years)	3 years
Order backlog
Finite-lived intangible assets
Amortization Period (in years)	1 year

INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
INTANGIBLE ASSETS
Amortization of intangible assets	$ 221	$ 222	$ 221
Estimated amortization expense
2017	107
2018	107
2019	107
2020	107
2021	107
and thereafter	215
Net Carrying Amount	$ 750	$ 971

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Warranty	$ 11,392	$ 10,228
Self-insurance	809	894
Compensation and related accruals	1,706	2,320
Inventory repurchase contingent obligation	742	923
Interest	1,178	790
Dealer incentives	4,336	3,568	$ 1,996
Other	2,113	2,590
Total accrued expenses and other current liabilities	$ 22,276	$ 21,313

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Roll forward of the accrued warranty liability
Beginning balance	$ 10,228	$ 8,033
Provisions	5,461	8,351
Payments made	(4,297)	(6,156)
Ending balance	$ 11,392	$ 10,228

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Dealer Incentives Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Activity in dealer incentives
Beginning balance	$ 3,568	$ 1,996
Provisions	10,759	7,951
Payments made	(9,991)	(6,379)
Ending balance	$ 4,336	$ 3,568

FAIR VALUE MEASUREMENTS - Liabilities at Fair Value (Details) - Common stock warrant - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2009
Liabilities measured at fair value
Number of shares that may be purchased under terms of warrant (in shares)	1,113,900		1,113,900
Strike price per share (in dollars per share)	$ 4.27		$ 4.27
Level 3 \| Recurring
Liabilities measured at fair value
Liability - common stock warrant		$ 9,147

FAIR VALUE MEASUREMENTS - Level 3 Reconciliation (Details) - Recurring - Level 3 - Warrant liability - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Level 3 Reconciliation
Beginning balance	$ 9,147	$ 2,526
Issuance of shares for common stock warrant	(12,572)	0
Change in common stock warrant fair value	$ 3,425	6,621
Ending balance		$ 9,147

FAIR VALUE MEASUREMENTS - Pricing Assumptions (Details) - Warrant liability	12 Months Ended
	Jun. 30, 2015
Fair value assumptions
Expected term	6 months
Risk-free rate	0.11%
Expected volatility	52.95%
Dividend rate	0.00%

LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Long-term debt
Long-term debt, net of unamortized debt issuance costs	$ 52,227	$ 78,762
Less current portion of long term debt	8,126	18,275
Less current portion of debt discount	(241)
Long-term Debt - less current portion	44,342	60,487
Revolving credit facility
Long-term debt
Long-term debt	3,126	8,189
Senior secured term loan
Long-term debt
Long-term debt	50,000	$ 70,573
Debt discount on term loan	$ (899)

LONG-TERM DEBT - Senior Secured Credit Facility (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended				12 Months Ended
	Jun. 06, 2016	Jun. 30, 2016	May 22, 2016	Jul. 28, 2015	Mar. 29, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Feb. 21, 2016	Nov. 23, 2014	Dec. 29, 2013
Long-term debt
Proceeds from revolving line of credit						$ 9,208	$ 20,188
Payments on revolving line of credit						$ 14,271	$ 12,000
Effective interest rate		3.559%				3.559%	4.195%
Dividends paid
Cash dividends paid		$ 79,945			$ 44,000	$ 79,945	$ 44,000
Dividend per basic common share					$ 3.95
Dividend per diluted common share					$ 3.71
Cash dividend per share	$ 4.30
Extinguishment of debt
Loss on extinguishment of debt				$ 716		716	852
Write-off of debt discount				676
Deferred financing costs amortized				$ 40		24	127	$ 50
Senior secured term loan
Long-term debt
Long-term debt		50,000				50,000	70,573
Revolving credit facility
Long-term debt
Long-term debt		3,126				$ 3,126	8,189
Senior Secured Credit Facility \| Senior secured term loan
Long-term debt
Loan commitment										$ 50,000	$ 25,000
Senior Secured Credit Facility \| Revolving credit facility
Long-term debt
Maximum borrowing capacity											$ 10,000
Amended and Restated Credit and Guaranty Agreement \| Maximum
Extinguishment of debt
Repurchase authorization									$ 20,000
Amended and Restated Credit and Guaranty Agreement \| Senior secured term loan
Long-term debt
Loan commitment					$ 75,000
Amended and Restated Credit and Guaranty 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
Long-term debt							8,189
Letters of credit outstanding							1,175
Net availability under facility							$ 20,636
Amended Credit Agreement
Long-term debt
Maximum borrowing capacity			$ 80,000
Amended Credit Agreement \| Prime Rate
Long-term debt
Variable margin rate based on current senior leverage ratio						1.00%
Amended Credit Agreement \| Prime Rate \| Minimum
Long-term debt
Variable margin rate			0.75%
Amended Credit Agreement \| Prime Rate \| Maximum
Long-term debt
Variable margin rate			1.50%
Amended Credit Agreement \| LIBOR
Long-term debt
Variable margin rate based on current senior leverage ratio						3.00%
Amended Credit Agreement \| LIBOR \| Minimum
Long-term debt
Variable margin rate			2.75%
Amended Credit Agreement \| LIBOR \| Maximum
Long-term debt
Variable margin rate			3.50%
Amended Credit Agreement \| Senior secured term loan
Long-term debt
Loan commitment			$ 50,000
Amended Credit Agreement \| Revolving credit facility
Long-term debt
Maximum borrowing capacity			$ 30,000
Long-term debt		3,126				$ 3,126
Letters of credit outstanding		250				250
Net availability under facility		$ 26,627				$ 26,627

LONG-TERM DEBT - Maturities (Details) - Senior secured term loan - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Long-term debt maturities
2017	$ 5,000
2018	5,000
2019	7,500
2020	7,500
2021	25,000
Total	$ 50,000	$ 70,573

INCOME TAXES - Provision (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Provision (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Earnings from continuing operations before income taxes and equity by jurisdiction
Income (loss) from continuing operations before income taxes and equity, foreign	$ 53	$ (128)
Current income tax expense:
Federal	10,530	436	$ 3,467
State and other	2,020	96	304
Benefit of operating loss carryforwards	(319)		(3,680)
Total current tax expense	12,231	532	91
Deferred tax benefit:
Federal	(3,583)	5,636	(10,639)
State and other	(340)	426	(866)
Total deferred tax benefit	(3,923)	6,062	(11,505)
Income tax expense (benefit)	$ 8,308	$ 6,594	$ (11,414)

INCOME TAXES - Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Valuation allowance
Increase (decrease) in valuation allowance	$ 12	$ 36	$ (15,570)

INCOME TAXES - Reconciliation of Statutory Rate (Details)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Difference between the statutory and the effective federal tax rate
Statutory income tax rate	35.00%	34.00%	34.00%
State taxes (net of federal income tax benefit and valuation allowance)	0.41%	2.73%	(8.65%)
Valuation allowance	0.06%	0.30%	(166.86%)
Tax credits	(2.82%)
Other	(0.21%)	(2.95%)	(0.69%)
Uncertain tax positions	6.06%	(0.55%)	(2.47%)
Permanent differences	6.36%	20.84%	10.59%
Effective income tax rate	44.86%	54.37%	(134.08%)

INCOME TAXES - Deferred Tax Assets (Liabilities) - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Deferred tax assets:
Warranty reserves	$ 4,301	$ 4,271
Repurchase agreements	280	338
Other reserves	998	1,043
Non-Deductible transaction fees		260
Unrecognized tax benefits	719	175
Stock compensation	4,527	92
Federal net operating loss		553
State net operating loss	130	130
Foreign net operating loss	117	106
Valuation allowance	(247)	(235)
Total deferred tax assets	10,825	6,733
Deferred tax liabilities:
Depreciation	(907)	(837)
Intangible asset basis difference	(6,406)	(6,311)
Other	(11)	(8)
Total deferred tax liabilities	(7,324)	(7,156)
Net deferred tax liabilities		$ (423)
Net deferred tax assets	$ 3,501

INCOME TAXES - Deferred Tax Assets (Liabilities) - Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Classification of the related asset and liability
Current deferred tax asset		$ 6,733
Noncurrent deferred tax assets	$ 3,501
Noncurrent deferred tax liabilities		(7,156)
Net deferred tax assets	$ 3,501
Net deferred tax liabilities		$ (423)

INCOME TAXES - Net Operating Losses (Details) - State $ in Thousands	Jun. 30, 2016 USD ($)
Net operating loss carryforwards
Net operating loss carryforwards	$ 3,013
Valuation allowance, operating loss carryforwards	$ 3,013

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Balance at end of period	$ 328	$ 370
Additions based on tax positions related to the current year	623	54
Additions for tax positions of prior years	1,143
Reductions for tax positions of prior years	(40)	(96)
Balance at beginning of period	2,054	328
Unrecognized tax benefits that would impact effective tax rate	667	344
Benefit from interest and penalties recorded	57	59
Accrued for interest and penalties	135	$ 192
Amount of unrecognized benefits expected to increase over the next twelve months	$ 317

STOCK-BASED COMPENSATION - 2015 Equity Incentive Plan (Details) - 2015 Plan - shares	Jun. 30, 2016	Jul. 28, 2015	Jun. 30, 2015
Stock-Based Compensation
Shares authorized under plan		2,458,633	1,518,958
Shares available for grant	1,803,226

STOCK-BASED COMPENSATION - 2015 Equity Incentive Plan (Details) - Restricted stock - 2015 Plan - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			12 Months Ended
	Apr. 24, 2016	Jul. 28, 2015	May 24, 2015	Jun. 30, 2016
Stock-Based Compensation
Stock-based compensation				$ 13,444
Certain employees \| May 2015 Awards
Stock-Based Compensation
Shares granted, other than options			841,585
Shares granted, other than options, grant date fair value per share (in dollars per share)			$ 15.00
Non-employee directors \| July 2015 Awards
Stock-Based Compensation
Shares granted, other than options		47,146
Shares granted, other than options, grant date fair value per share (in dollars per share)		$ 15.66
Compensation recognition period (in days)		181 days
Non-employee directors \| April 2016 Awards
Stock-Based Compensation
Shares granted, other than options	6,140
Shares granted, other than options, grant date fair value per share (in dollars per share)	$ 13.41

STOCK-BASED COMPENSATION - Stock Option information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 28, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock options
Stock-Based Compensation
Options granted		137,786
Option price		$ 15.00
Nonqualified stock options
Black-Scholes pricing model assumptions
Risk-free rate		1.93%
Expected term		6 years 3 months
Dividend rate		0.00%
Expected volatility		56.70%
July 2015 Awards \| Certain employees \| Nonqualified stock options
Stock-Based Compensation
Options granted	137,786
Option price	$ 15.00
Annual vesting percentage	25.00%
Vesting period (in years)	4 years
Options forfeited		15,146
Stock-based compensation		$ 243	$ 0

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Weighted Average Exercise Price
Reduction in exercise price pursuant to terms of the plan	$ 4.30
Aggregate Intrinsic Value
Outstanding	$ 0.35
Stock options
Shares
Outstanding at beginning of year	86,985
Granted	137,786
Exercised	(86,985)
Forfeited or expired	(15,146)
Outstanding at end of year	122,640	86,985
Weighted Average Exercise Price
Outstanding at beginning of year	$ 4.03
Granted	15.00
Exercised	4.03
Forfeited or expired	15.00
Outstanding at end of year	$ 10.70	$ 4.03
Weighted Average Remaining Contractual Term
Outstanding	9 years 1 month 6 days	4 years 8 months 12 days
Granted	10 years
Aggregate Intrinsic Value
Outstanding		$ 9.57
Exercised	$ 11.73

COMMITMENTS AND CONTINGENCIES - Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Operating leases
Rental expense	$ 390	$ 262	$ 293
Future minimum rental payments
2017	434
2018	408
2019	227
2020	36
2021	10
and thereafter	1
Total	$ 1,116

COMMITMENTS AND CONTINGENCIES - Repurchase Agreements (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2016 USD ($) item	Jun. 30, 2015 USD ($) item
Repurchase agreements
Inventory repurchase contingent obligation	$ 742	$ 923
Obligation to Repurchase Inventory
Repurchase agreements
Maximum repurchase obligation under aggregated floor plan agreements	$ 88,810	64,061
Number of units repurchased \| item	0
Inventory repurchase contingent obligation	$ 742	$ 923
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
Obligation to Repurchase Inventory \| GE Australia
Repurchase agreements
Number of units repurchased \| item		9

COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) - Ilmor Marine - In-Board Engines - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Future minimum purchase commitments
2017				$ 1,109
2018				1,153
2019				1,153
Total				$ 3,415
Forecast \| Minimum
Purchase commitments
Estimated annual purchases made under the purchase commitment contract	$ 26,000	$ 26,000	$ 26,000
Forecast \| Maximum
Purchase commitments
Estimated annual purchases made under the purchase commitment contract	$ 29,000	$ 29,000	$ 29,000

RELATED PARTY (Details) - USD ($) $ in Thousands	12 Months Ended
RELATED PARTY (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Jun. 30, 2014
Former Officer of a Subsidiary of Company
Related party transactions
Sales		$ 160
Cost of sales		111
Management fee		200
Accounts payable/accrued liabilities		181
Sales, marketing and office expenses		1,585
Wayzata Investment Partners LLC, Controlling Stockholder
Related party transactions
Interest expense (Wayzata entities - Note 10)	$ 1,639	$ 6,853

COMMON STOCK AND COMMON STOCK WARRANT - Common Stock (Details)	12 Months Ended
	Jun. 30, 2016 Vote $ / shares shares	Jun. 30, 2015 $ / shares shares
COMMON STOCK AND COMMON STOCK WARRANT
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 AND COMMON STOCK WARRANT - Common Stock Warrant (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2009
Common stock warrant
Common stock warrant liability (in dollars)		$ 9,147
Common stock warrant
Common stock warrant
Number of shares that may be purchased under terms of warrant (in shares)	1,113,900		1,113,900
Strike price per share (in dollars per share)	$ 4.27		$ 4.27
Warrant liability \| Common stock warrant
Common stock warrant
Common stock warrant liability (in dollars)		$ 9,147

EARNINGS PER SHARE - Factors (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 27, 2016	Dec. 27, 2015	Sep. 27, 2015	Jun. 30, 2015	Mar. 29, 2015	Dec. 28, 2014	Sep. 28, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Factors used in the earnings per share computation
Net income									$ 10,210	$ 5,534	$ 19,927
Weighted average common shares - basic	17,849,319	18,574,887	17,998,796	16,263,793	11,139,000	11,139,000	11,139,000	11,139,000	17,849,319	11,139,000	11,139,000
Dilutive effect of assumed exercises of common stock warrant									88,060	666,573
Weighted average common shares - diluted	18,257,007	18,779,557	18,606,884	16,263,793	11,954,984	11,995,366	11,642,716	11,495,079	18,257,007	11,862,699	11,182,264
Basic earnings per share (in dollars per share)	$ 0.27	$ 0.26	$ 0.10	$ (0.08)	$ 0.23	$ 0.01	$ 0.13	$ 0.13	$ 0.57	$ 0.50	$ 1.79
Diluted earnings per share (in dollars per share)	$ 0.26	$ 0.26	$ 0.10	$ (0.08)	$ 0.21	$ 0.01	$ 0.13	$ 0.12	$ 0.56	$ 0.47	$ 1.78
Stock options
Factors used in the earnings per share computation
Dilutive effect of assumed exercises of stock options and restricted share awards									50,775	57,126	43,264
Restricted stock
Factors used in the earnings per share computation
Dilutive effect of assumed exercises of stock options and restricted share awards									268,853

EARNINGS PER SHARE - Anti-dilutive Securities (Details) - shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Stock options
Other disclosures
Anti-dilutive securities excluded from computation of earning per share	124,020	0	54,492
Common stock warrant
Other disclosures
Anti-dilutive securities excluded from computation of earning per share		0	1,113,900

SEGMENT INFORMATION - Geographic Concentration (Details) - segment	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
SEGMENT INFORMATION
Number of operating segments	2
Number of reportable segments	2
MasterCraft \| Net sales \| Geographic concentration \| Outside of North America
SEGMENT INFORMATION
Net sales, percentage	8.60%	10.10%	14.60%

SEGMENT INFORMATION - Operating Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 27, 2016	Dec. 27, 2015	Sep. 27, 2015	Jun. 30, 2015	Mar. 29, 2015	Dec. 28, 2014	Sep. 28, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Segment reporting information
Net sales	$ 53,386	$ 57,030	$ 55,203	$ 55,981	$ 54,853	$ 54,282	$ 52,827	$ 52,424	$ 221,600	$ 214,386	$ 177,587
Cost of sales									160,521	163,220	139,975
Operating income	$ 7,698	$ 7,513	$ 2,780	$ 4,020	$ 6,792	$ 1,088	$ 8,013	$ 8,027	22,011	23,920	18,594
Depreciation and amortization									3,444	3,278	2,472
MasterCraft
Segment reporting information
Net sales									221,600	199,907	163,631
Cost of sales									160,521	150,622	127,657
Operating income									22,011	21,695	16,971
Depreciation and amortization									$ 3,444	3,169	2,340
Hydra-Sports
Segment reporting information
Net sales										14,479	13,956
Cost of sales										12,598	12,318
Operating income										2,225	1,623
Depreciation and amortization										$ 109	$ 132

QUARTERLY FINANCIAL REPORTING (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 27, 2016	Dec. 27, 2015	Sep. 27, 2015	Jun. 30, 2015	Mar. 29, 2015	Dec. 28, 2014	Sep. 28, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
QUARTERLY FINANCIAL REPORTING (UNAUDITED)
Net sales	$ 53,386	$ 57,030	$ 55,203	$ 55,981	$ 54,853	$ 54,282	$ 52,827	$ 52,424	$ 221,600	$ 214,386	$ 177,587
Gross profit	14,033	15,842	15,365	15,839	12,802	12,887	12,696	12,781	61,079	51,166	37,612
Operating income	7,698	7,513	2,780	4,020	6,792	1,088	8,013	8,027	22,011	23,920	18,594
Net income	$ 4,769	$ 4,894	$ 1,870	$ (1,323)	$ 2,537	$ 105	$ 1,474	$ 1,418	$ 10,210	$ 5,534	$ 19,927
Basic earnings per share (in dollars per share)	$ 0.27	$ 0.26	$ 0.10	$ (0.08)	$ 0.23	$ 0.01	$ 0.13	$ 0.13	$ 0.57	$ 0.50	$ 1.79
Diluted earnings per share (in dollars per share)	$ 0.26	$ 0.26	$ 0.10	$ (0.08)	$ 0.21	$ 0.01	$ 0.13	$ 0.12	$ 0.56	$ 0.47	$ 1.78
Weighted average shares used for computation of:
Basic earnings per share (in shares)	17,849,319	18,574,887	17,998,796	16,263,793	11,139,000	11,139,000	11,139,000	11,139,000	17,849,319	11,139,000	11,139,000
Diluted earnings per share (in shares)	18,257,007	18,779,557	18,606,884	16,263,793	11,954,984	11,995,366	11,642,716	11,495,079	18,257,007	11,862,699	11,182,264

QUARTERLY FINANCIAL REPORTING (UNAUDITED) - Additional Information (Details) - Common shares	Jul. 22, 2015 shares
Common stock
Stock split, conversion ratio	11.139
IPO
Common stock
Shares sold	6,071,429

SUBSEQUENT EVENTS (Details) - Senior secured term loan - Interest rate cap agreement - LIBOR - Subsequent Event	Aug. 30, 2016
Subsequent Event [Line Items]
Interest rate cap	1.00%
Percentage of outstanding debt balance covered by terms of the agreement	50.00%