What MasterCraft Boat Holdings, Inc. told the SEC could break it.

Engines for certain segments come from a sole-source supplier, and other critical components (windshields, towers, surf tabs, aluminum billet, engine packages) are available only from limited or exclusive suppliers — a disruption would significantly disrupt boat production.

“engines used in the manufacturing processes of certain segments are available from a sole-source supplier. Other components used in our manufacturing process, such as boat windshields, towers, and surf tabs may only be available from a limited number of suppliers.”

Boat manufacturing depends on a range of commodity raw materials — resins, fiberglass, aluminum, lumber and steel — exposing margins to those commodities' price and availability.

“We purchase a wide variety of raw materials from our supplier base, including resins, fiberglass, aluminum, lumber and steel, as well as parts and components such as engines and electronic controls.”

Substantially all of MasterCraft's sales flow through its network of independent dealers; failure to maintain or expand that distribution network would materially hurt sales.

“Substantially all of our sales are derived from our network of independent dealers. Maintaining a reliable network of dealers, as well as expanding that network, is essential to our success.”

U.S. tariffs on imported raw materials, commodities and components used in manufacturing could raise MasterCraft's production costs, while retaliatory foreign tariffs could reduce demand for its exported boats.

“any United States initiated tariffs on certain foreign goods, including raw materials, commodities, and products manufactured outside the United States that are used in our manufacturing processes may cause our manufacturing cost to rise, which would have a negative impact on our business and results of operations.”