DISCONTINUED OPERATIONS

9 Months Ended

Mar. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

3.DISCONTINUED OPERATIONS

On October 18, 2024, the Company completed the Aviara Transaction. As part of the Aviara Transaction, MarineMax, Inc. (“MarineMax”) paid for select branding and operational assets, including Aviara’s website, tooling, and inventory. MarineMax also assumed Aviara’s customer care, warranty liability and administration. The amounts paid to the Company by MarineMax for ownership of the Aviara brand were offset by MarineMax’s assumption of warranty liability and administration accruals. Further, on December 23, 2024, the Company completed the Aviara Facility Sale for proceeds, net of closing costs, of $26.1 million. The transactions resulted in a $6.2 million gain on discontinued operations related to the Aviara Facility Sale, partially offset by a $4.3 million loss related to the Aviara Transaction.

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 are classified as discontinued operations in our prior-period condensed consolidated balance sheets.

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, is 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						Nine Months Ended
	March 30,			March 31,			March 30,			March 31,
	2025			2024			2025			2024
NET SALES	$	1,557		$	11,731		$	8,756		$	31,411
COST OF SALES		1,541			12,972			12,827			35,723
GROSS PROFIT (LOSS)		16			(1,241	)		(4,071	)		(4,312	)
OPERATING EXPENSES:
Selling, general and administrative		169			1,618			2,571			5,647
Total operating expenses		169			1,618			2,571			5,647
OPERATING LOSS		(153	)		(2,859	)		(6,642	)		(9,959	)
Gain on sale of discontinued operations		5			—			1,881			157
LOSS BEFORE INCOME TAX BENEFIT		(148	)		(2,859	)		(4,761	)		(9,802	)
INCOME TAX BENEFIT		70			887			844			2,700
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX	$	(78	)	$	(1,972	)	$	(3,917	)	$	(7,102	)

The following table summarizes the assets and liabilities associated with discontinued operations:

	June 30,
	2024
CURRENT ASSETS:
Accounts receivable, net of allowance	$	3,927
Inventories, net		7,295
Total current assets classified as discontinued operations	$	11,222
NON-CURRENT ASSETS:
Property, plant and equipment, net	$	21,499
Other long-term assets		181
Total non-current assets classified as discontinued operations	$	21,680
CURRENT LIABILITIES:
Accounts payable	$	1,747
Accrued expenses and other current liabilities		6,316
Total current liabilities classified as discontinued operations	$	8,063
LONG-TERM LIABILITIES:
Long-term leases	$	182
Total long-term liabilities classified as discontinued operations	$	182