ASSETS HELD-FOR-SALE AND DISCONTINUED OPERATIONS

3 Months Ended

Sep. 29, 2024

Discontinued Operations and Disposal Groups [Abstract]

ASSETS HELD-FOR-SALE AND DISCONTINUED OPERATIONS

3.ASSETS HELD-FOR-SALE AND DISCONTINUED OPERATIONS

On August 8, 2024, the Company announced that it had entered into the Aviara Asset Purchase Agreement, pursuant to which it will transfer rights to the Aviara brand of luxury dayboats and certain related assets to a subsidiary of MarineMax, Inc. (“MarineMax”). The transaction was completed on October 18, 2024. As discussed in Note 1, the Company has reported results of operations for the Aviara

segment as discontinued operations in the condensed consolidated statement of operations and the related assets and liabilities held-for-sale are classified as held-for-sale in our condensed consolidated balance sheets.

Additionally, on September 12, 2024, we announced that we had entered into the Aviara Facility Sale Agreement. The transaction is expected to be completed in our fiscal 2025 second quarter and remains subject to customary closing conditions. As discussed in Note 1, the related assets and liabilities are classified as held-for-sale in our condensed consolidated balance sheets.

The Company evaluated the carrying value of net assets compared to the fair value less cost to sell and, as a result, recorded a $3.5 million loss on discontinued operations related to discounts, warranty accruals, and inventory.

In fiscal 2023, we sold our NauticStar business. Pursuant to the terms of the purchase agreement, substantially all of the assets were sold and the purchaser assumed substantially all of the liabilities of NauticStar. The value of the assets and liabilities that were retained at the time of sale, which were primarily related to certain claims, are subject to change. Certain of these claims, which were reported in Accrued expenses and other current liabilities, have been settled or are expected to settle for higher amounts than previously estimated, with the related activity being recorded as discontinued operations.

The following table summarizes the operating results of discontinued operations for the following periods:

	Three Months Ended
	September 29,			October 1,
	2023			2023
NET SALES	$	7,306		$	9,949
COST OF SALES		10,154			10,889
GROSS LOSS		(2,848	)		(940	)
OPERATING EXPENSES:
Selling, general and administrative		1,488			2,407
Total operating expenses		1,488			2,407
OPERATING LOSS		(4,336	)		(3,347	)
Gain (loss) on sale of discontinued operations		(3,486	)		157
LOSS BEFORE INCOME TAX BENEFIT		(7,822	)		(3,190	)
INCOME TAX BENEFIT		1,661			854
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX	$	(6,161	)	$	(2,336	)

The following table summarizes the assets and liabilities associated with discontinued operations that are presented within held-for-sale in the condensed consolidated balance sheets:

	September 29,		June 30,
	2024		2024
CURRENT ASSETS HELD-FOR-SALE:
Accounts receivable, net of allowance	$	1,611	$	3,927
Inventories, net		3,369		7,295
Total current assets held-for-sale	$	4,980	$	11,222
NON-CURRENT ASSETS HELD-FOR-SALE:
Property, plant and equipment, net	$	21,108	$	21,499
Other long-term assets		179		181
Total non-current assets held-for-sale	$	21,287	$	21,680
CURRENT LIABILITIES HELD-FOR-SALE:
Accounts payable	$	379	$	1,747
Accrued expenses and other current liabilities		9,292		6,316
Total current liabilities held-for-sale	$	9,671	$	8,063
LONG-TERM LIABILITIES HELD-FOR-SALE:
Long-term leases	$	180	$	182
Total long-term liabilities held-for-sale	$	180	$	182