Malibu Boats, Inc. (Nasdaq: MBUU) today announced its financial
results for the first quarter ended September 30, 2023.
First Quarter Fiscal
2024 Highlights Compared to
First Quarter Fiscal
2023:
- Net sales decreased 15.3% to $255.8
million
- Unit volume decreased 24.1% to
1,698 units
- Gross profit decreased 23.9% to $56.8
million
- Net income decreased 42.5% to $20.8
million
- Adjusted EBITDA decreased 31.7% to
$39.0 million
- Net income available to Class A Common
Stock per share (diluted) decreased 42.0% to $0.98 per share
- Adjusted fully distributed net income
per share decreased 36.9% to $1.13 per share on a fully distributed
weighted-average share count of 21.3 million shares of
Class A Common Stock
“As we moved through the quarter, the retail environment
markedly deteriorated with the sense of urgency that customers had
over the last few years largely gone, coupled with a challenged
interest rate and macroeconomic landscape. Despite this rapidly
evolving operating landscape, our financial results for the fiscal
first quarter surpassed our expectations. This is a testament to
our team’s superior execution, combined with the inherent strength
across our lineup of brands. Those customers in the market are
continuing to drive elevated sales prices as they look for
feature-rich boats,” commented Jack Springer, Chief Executive
Officer of Malibu Boats, Inc.
“While we are excited about the opportunities
ahead, we remain acutely aware of the headwinds facing consumers
and the industry more broadly. I am confident that this team will
once again bring its operational prowess to navigate the current
environment, while at the same time, advancing our innovation and
product development, manufacturing and vertical integration
footprint, and operational excellence initiatives to ensure we once
again emerge stronger as market conditions improve,” continued Mr.
Springer.
First Quarter Fiscal
2024 Results (Unaudited)
|
Three Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
(Dollars In Thousands) |
Net Sales |
$ |
255,830 |
|
|
$ |
302,211 |
|
Gross Profit |
$ |
56,794 |
|
|
$ |
74,605 |
|
Gross Profit Margin |
|
22.2 |
% |
|
|
24.7 |
% |
Net Income |
$ |
20,770 |
|
|
$ |
36,105 |
|
Net Income Margin |
|
8.1 |
% |
|
|
11.9 |
% |
Adjusted EBITDA |
$ |
38,988 |
|
|
$ |
57,060 |
|
Adjusted EBITDA Margin |
|
15.2 |
% |
|
|
18.9 |
% |
Net sales for the three months ended September 30, 2023
decreased $46.4 million, or 15.3%, to $255.8 million as compared to
the three months ended September 30, 2022. The decrease in net
sales was driven primarily by decreased unit volumes across all
segments resulting primarily from decreased retail demand and
increased dealer flooring program costs across all segments
resulting from higher interest rates and increased inventory
levels, partially offset by a favorable model mix across all
segments and inflation-driven year-over-year price increases. Unit
volume for the three months ended September 30, 2023,
decreased 539 units, or 24.1%, to 1,698 units as compared to the
three months ended September 30, 2022. Our unit volume
decreased primarily due to lower wholesale shipments across all
segments driven by lower retail activity during the period.
Net sales attributable to our Malibu segment decreased $40.2
million, or 27.7%, to $105.0 million for the three months ended
September 30, 2023, compared to the three months ended
September 30, 2022. Unit volumes attributable to our Malibu
segment decreased 414 units for the three months ended
September 30, 2023, compared to the three months ended
September 30, 2022, primarily due to lower wholesale shipments
driven by lower retail activity during the period. The decrease in
net sales was driven by a decrease in units and increased dealer
flooring program costs, partially offset by a favorable model mix
and inflation-driven year-over-year price increases.
Net sales attributable to our Saltwater Fishing segment
increased $0.4 million, or 0.4%, to $92.6 million, for the three
months ended September 30, 2023, compared to the three months
ended September 30, 2022. Unit volume decreased 57 units for
the three months ended September 30, 2023 compared to the
three months ended September 30, 2022. The increase in net
sales was driven by inflation-driven year-over-year price increases
and a favorable model mix, partially offset by a decrease in units
and increased dealer flooring program costs.
Net sales attributable to our Cobalt segment decreased $6.6
million, or 10.2%, to $58.2 million for the three months ended
September 30, 2023, compared to the three months ended
September 30, 2022. Unit volumes attributable to Cobalt
decreased 68 units for the three months ended September 30,
2023 compared to the three months ended September 30, 2022.
The decrease in net sales was driven primarily by a decrease in
units and increased dealer flooring program costs, partially offset
by a favorable model mix and inflation-driven year-over-year price
increases.
Overall consolidated net sales per unit increased 11.5% to
$150,665 per unit for the three months ended September 30,
2023, compared to the three months ended September 30, 2022.
Net sales per unit for our Malibu segment increased 9.6% to
$130,603 per unit for the three months ended September 30,
2023, compared to the three months ended September 30, 2022,
driven by a favorable model mix and inflation-driven year-over-year
price increases, partially offset by increased dealer flooring
program costs. Net sales per unit for our Saltwater Fishing segment
increased 12.1% to $188,640 per unit for the three months ended
September 30, 2023 driven by a favorable model mix and
inflation-driven year-over-year price increases, partially offset
by increased dealer flooring program costs. Net sales per unit for
our Cobalt segment increased 5.0% to $144,424 per unit for the
three months ended September 30, 2023, compared to the three
months ended September 30, 2022, driven by a favorable model
mix and inflation-driven year-over-year price increases, partially
offset by increased dealer flooring program costs.
Cost of sales for the three months ended September 30, 2023
decreased $28.6 million, or 12.6%, to $199.0 million as compared to
the three months ended September 30, 2022. The decrease in
cost of sales was primarily driven by a 15.3% decrease in net sales
due to lower unit volumes, partially offset by higher per unit
material and labor costs of $7.5 million, $7.1 million, and $2.5
million for the Malibu, Saltwater Fishing and Cobalt segments,
respectively. The increase in per unit material and labor costs was
primarily driven by increased prices due to inflationary pressures
and a favorable model mix that corresponds to higher net sales per
unit in our Malibu and Cobalt segments, partially offset by
unfavorable model mix in our Saltwater Fishing segment.
Gross profit for the three months ended September 30, 2023
decreased $17.8 million, or 23.9%, to $56.8 million compared to the
three months ended September 30, 2022. The decrease in gross
profit was driven primarily by lower net sales partially offset by
the decreased cost of sales for the reasons noted above. Gross
margin for the three months ended September 30, 2023 decreased
250 basis points from 24.7% to 22.2% driven primarily by increased
mix of the Saltwater Fishing segment and increased dealer flooring
program costs.
Selling and marketing expenses for the three months ended
September 30, 2023 increased $0.6 million, or 10.9% to $5.8
million compared to the three months ended September 30, 2022.
The increase was driven primarily by increased promotional events
and an increase in personnel-related expenses. As a percentage of
sales, selling and marketing expenses increased 50 basis points to
2.2% for the three months ended September 30, 2023 compared to
1.7% for the three months ended September 30, 2022. General
and administrative expenses for the three months ended
September 30, 2023 increased $1.5 million, or 7.7%, to $20.7
million as compared to the three months ended September 30,
2022 driven primarily by an increase in personnel-related expenses.
As a percentage of sales, general and administrative expenses
increased 170 basis points to 8.1% for the three months ended
September 30, 2023 compared to 6.4% for the three months ended
September 30, 2022. Amortization expense remained flat at $1.7
million for the three months ended September 30, 2023.
Operating income for the first quarter of fiscal year 2024
decreased to $28.6 million from $48.5 million in the first quarter
of fiscal year 2023. Net income for the first quarter of fiscal
year 2024 decreased 42.5% to $20.8 million from $36.1 million and
net income margin decreased to 8.1% from 11.9% in the first quarter
of fiscal year 2023. Adjusted EBITDA in the first quarter of fiscal
year 2024 decreased 31.7% to $39.0 million from $57.1 million,
while Adjusted EBITDA margin decreased to 15.2% from 18.9% in the
first quarter of fiscal year 2023.
Fiscal 2024 Guidance
For the fiscal full year 2024, Malibu anticipates net sales
decline percentage in the high teens to low twenties year-over-year
and Adjusted EBITDA margin down 350-450 basis points
year-over-year.
The Company has not provided reconciliations of guidance for
Adjusted EBITDA margin, in reliance on the unreasonable efforts
exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The
Company is unable, without unreasonable efforts, to forecast
certain items required to develop meaningful comparable GAAP
financial measures. These items include costs related to the
Company’s vertical integration initiatives that are difficult to
predict in advance in order to include in a GAAP estimate.
Webcast and Conference Call Information
The Company will host a webcast and conference call to discuss
first quarter of fiscal year 2024 results on Tuesday,
October 31, 2023, at 8:30 a.m. Eastern Time. Investors and
analysts can participate on the conference call by dialing (844)
695-5523 or (412) 317-0699 and requesting Malibu Boats.
Alternatively, interested parties can listen to a live webcast of
the conference call by logging on to the Investor Relations section
on the Company’s website at
https://malibuboatsinc.com/investor-information/events-presentations.
A replay of the webcast will also be archived on the Company’s
website for twelve months.
About Malibu Boats, Inc.
Based in Loudon, Tennessee, Malibu Boats, Inc. (MBUU) is a
leading designer, manufacturer and marketer of a diverse range of
recreational powerboats, including performance sport, sterndrive
and outboard boats. Malibu Boats, Inc. is the market leader in the
performance sport boat category through its Malibu and Axis boat
brands, the leader in the 20’ - 40’ segment of the sterndrive boat
category through its Cobalt brand, and in a leading position in the
saltwater fishing boat market with its Pursuit and Cobia offshore
boats and Pathfinder, Maverick, and Hewes flats and bay boat
brands. A pre-eminent innovator in the powerboat industry, Malibu
Boats, Inc. designs products that appeal to an expanding range of
recreational boaters, fisherman and water sports enthusiasts whose
passion for boating is a key component of their active lifestyles.
For more information, visit www.malibuboats.com, www.axiswake.com,
www.cobaltboats.com, www.pursuitboats.com, or
www.maverickboatgroup.com.
Non-GAAP Financial Measures
This release includes the following financial measures defined
as non-GAAP financial measures by the Securities and Exchange
Commission: Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Fully
Distributed Net Income and Adjusted Fully Distributed Net Income
per Share. These measures have limitations as analytical tools and
should not be considered as an alternative to, or more meaningful
than, net income as determined in accordance with U.S. generally
accepted accounting principles (“GAAP”) or as an indicator of our
liquidity. Our presentation of these non-GAAP financial measures
should also not be construed as an inference that our results will
be unaffected by unusual or non-recurring items. Our computations
of these non-GAAP financial measures may not be comparable to other
similarly titled measures of other companies.
We define Adjusted EBITDA as net income before interest expense,
income taxes, depreciation, amortization and non-cash,
non-recurring or non-operating expenses, including certain
professional fees and non-cash compensation expense. We define
Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales.
Adjusted EBITDA and Adjusted EBITDA Margin are not measures of net
income as determined by GAAP. Management believes Adjusted EBITDA
and Adjusted EBITDA Margin allow investors to evaluate our
operating performance and compare our results of operations from
period to period on a consistent basis by excluding items that
management does not believe are indicative of our core operating
performance. Management uses Adjusted EBITDA to assist in
highlighting trends in our operating results without regard to our
financing methods, capital structure, and non-recurring or
non-operating expenses. We exclude the items listed above from net
income in arriving at Adjusted EBITDA because these amounts can
vary substantially from company to company within our industry
depending upon accounting methods and book values of assets,
capital structures, the methods by which assets were acquired and
other factors.
Certain items excluded from Adjusted EBITDA are significant
components in understanding and assessing a company’s financial
performance, such as a company’s cost of capital and tax structure,
as well as the historical costs of depreciable assets.
We define Adjusted Fully Distributed Net Income as net income
attributable to Malibu Boats, Inc. (i) excluding income tax
expense, (ii) excluding the effect of non-recurring or non-cash
items, (iii) assuming the exchange of all LLC units into shares of
Class A Common Stock, which results in the elimination of
non-controlling interest in Malibu Boats Holdings, LLC (the "LLC"),
and (iv) reflecting an adjustment for income tax expense on fully
distributed net income before income taxes at our estimated
effective income tax rate. Adjusted Fully Distributed Net Income is
a non-GAAP financial measure because it represents net income
attributable to Malibu Boats, Inc., before non-recurring or
non-cash items and the effects of non-controlling interests in the
LLC. We use Adjusted Fully Distributed Net Income to facilitate a
comparison of our operating performance on a consistent basis from
period to period that, when viewed in combination with our results
prepared in accordance with GAAP, provides a more complete
understanding of factors and trends affecting our business than
GAAP measures alone. We believe Adjusted Fully Distributed Net
Income assists our board of directors, management and investors in
comparing our net income on a consistent basis from period to
period because it removes non-cash or non-recurring items, and
eliminates the variability of non-controlling interest as a result
of member owner exchanges of LLC units into shares of Class A
Common Stock. In addition, because Adjusted Fully Distributed Net
Income is susceptible to varying calculations, the Adjusted Fully
Distributed Net Income measures, as presented in this release, may
differ from and may, therefore, not be comparable to similarly
titled measures used by other companies.
A reconciliation of our net income as determined in accordance
with GAAP to Adjusted EBITDA and the numerator and denominator for
our net income available to Class A Common Stock per share to
Adjusted Fully Distributed Net Income per share of Class A Common
Stock is provided under "Reconciliation of Non-GAAP Financial
Measures".
Cautionary Statement Concerning Forward Looking
Statements
This press release includes forward-looking statements (as such
term is defined in the Private Securities Litigation Reform Act of
1995). Forward-looking statements can be identified by such words
and phrases as “believes,” “anticipates,” “expects,” “intends,”
“estimates,” “may,” “will,” “should,” “continue” and similar
expressions, comparable terminology or the negative thereof, and
includes statements in this press release regarding trends toward
larger, more custom boats; our expectations for opportunities for
growth and demand for our products, including beyond calendar year
2023; and our ability to continue to deliver value for our
stockholders.
Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
including, but not limited to: general industry, economic and
business conditions; our large fixed cost base; increases in the
cost of, or unavailability of, raw materials, component parts and
transportation costs; disruptions in our suppliers’ operations; our
reliance on third-party suppliers for raw materials and components
and any interruption of our informal supply arrangements; our
reliance on certain suppliers for our engines and outboard motors;
our ability to meet our manufacturing workforce needs; exposure to
workers' compensation claims and other workplace liabilities; our
ability to grow our business through acquisitions and integrate
such acquisitions to fully realize their expected benefits; our
growth strategy which may require us to secure significant
additional capital; our ability to protect our intellectual
property; disruptions to our network and information systems; our
success at developing and implementing a new enterprise resource
planning system; risks inherent in operating in foreign
jurisdictions; the effects of the COVID-19 pandemic on us; a
natural disaster, global pandemic or other disruption at our
manufacturing facilities; increases in income tax rates or changes
in income tax laws; our dependence on key personnel; our ability to
enhance existing products and market new or enhanced products; the
continued strength of our brands; the seasonality of our business;
intense competition within our industry; increased consumer
preference for used boats or the supply of new boats by competitors
in excess of demand; competition with other activities for
consumers’ scarce leisure time; changes in currency exchange rates;
inflation and increases in interest rates; an increase in energy
and fuel costs; our reliance on our network of independent dealers
and increasing competition for dealers; the financial health of our
dealers and their continued access to financing; our obligation to
repurchase inventory of certain dealers; our exposure to claims for
product liability and warranty claims; changes to U.S. trade
policy, tariffs and import/export regulations; any failure to
comply with laws and regulations including environmental, workplace
safety and other regulatory requirements; our holding company
structure; covenants in our credit agreement governing our
revolving credit facility which may limit our operating
flexibility; our variable rate indebtedness which subjects us to
interest rate risk; our obligation to make certain payments under a
tax receivables agreement; any failure to maintain effective
internal control over financial reporting or disclosure controls or
procedures; and other factors affecting us detailed from time to
time in our filings with the Securities and Exchange Commission.
Many of these risks and uncertainties are outside our control, and
there may be other risks and uncertainties which we do not
currently anticipate because they relate to events and depend on
circumstances that may or may not occur in the future. Although we
believe that the expectations reflected in any forward-looking
statements are based on reasonable assumptions at the time made, we
can give no assurance that our expectations will be achieved. Undue
reliance should not be placed on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation
(and we expressly disclaim any obligation) to update or supplement
any forward-looking statements that may become untrue because of
subsequent events, whether because of new information, future
events, changes in assumptions or otherwise. Comparison of results
for current and prior periods are not intended to express any
future trends or indications of future performance, unless
expressed as such, and should only be viewed as historical
data.
Investor Contacts
Malibu Boats, Inc.David BlackInterim Chief
Financial Officer(865)
458-5478InvestorRelations@MalibuBoats.com
MALIBU BOATS, INC. AND SUBSIDIARIES |
|
Condensed Consolidated Statements of Operations and
Comprehensive Income (Unaudited) |
(In thousands, except share and per share
data) |
|
|
Three Months Ended September
30, |
|
|
2023 |
|
|
|
2022 |
|
Net sales |
$ |
255,830 |
|
|
$ |
302,211 |
|
Cost of sales |
|
199,036 |
|
|
|
227,606 |
|
Gross profit |
|
56,794 |
|
|
|
74,605 |
|
Operating expenses: |
|
|
|
Selling and marketing |
|
5,752 |
|
|
|
5,186 |
|
General and administrative |
|
20,705 |
|
|
|
19,220 |
|
Amortization |
|
1,715 |
|
|
|
1,716 |
|
Operating income |
|
28,622 |
|
|
|
48,483 |
|
Other expense, net: |
|
|
|
Other (income) expense, net |
|
(10 |
) |
|
|
70 |
|
Interest expense |
|
884 |
|
|
|
1,285 |
|
Other expense, net |
|
874 |
|
|
|
1,355 |
|
Income before provision for
income taxes |
|
27,748 |
|
|
|
47,128 |
|
Provision for income
taxes |
|
6,978 |
|
|
|
11,023 |
|
Net income |
|
20,770 |
|
|
|
36,105 |
|
Net income attributable to
non-controlling interest |
|
511 |
|
|
|
1,222 |
|
Net income attributable to Malibu Boats, Inc. |
$ |
20,259 |
|
|
$ |
34,883 |
|
|
|
|
|
Comprehensive
income: |
|
|
|
Net income |
$ |
20,770 |
|
|
$ |
36,105 |
|
Other comprehensive (loss)
income: |
|
|
|
Change in cumulative translation adjustment |
|
(751 |
) |
|
|
(1,436 |
) |
Other comprehensive (loss)
income |
|
(751 |
) |
|
|
(1,436 |
) |
Comprehensive income |
|
20,019 |
|
|
|
34,669 |
|
Less: comprehensive income
attributable to non-controlling interest |
|
493 |
|
|
|
1,173 |
|
Comprehensive income attributable to Malibu Boats, Inc. |
$ |
19,526 |
|
|
$ |
33,496 |
|
|
|
|
|
Weighted-average
shares outstanding used in computing net income per
share: |
|
|
|
Basic |
|
20,586,487 |
|
|
|
20,459,849 |
|
Diluted |
|
20,684,230 |
|
|
|
20,632,727 |
|
Net income available
to Class A Common Stock per share: |
|
|
|
Basic |
$ |
0.98 |
|
|
$ |
1.70 |
|
Diluted |
$ |
0.98 |
|
|
$ |
1.69 |
|
MALIBU BOATS, INC. AND SUBSIDIARIES |
|
Condensed Consolidated Balance Sheets
(Unaudited) |
(In thousands, except share and per share
data) |
|
September 30, 2023 |
|
June 30, 2023 |
Assets |
|
|
|
Current assets |
|
|
|
Cash |
$ |
45,462 |
|
|
$ |
78,937 |
|
Trade receivables, net |
|
64,846 |
|
|
|
68,381 |
|
Inventories, net |
|
174,128 |
|
|
|
171,189 |
|
Prepaid expenses and other current assets |
|
12,083 |
|
|
|
7,827 |
|
Total current assets |
|
296,519 |
|
|
|
326,334 |
|
Property, plant and equipment,
net |
|
237,548 |
|
|
|
204,792 |
|
Goodwill |
|
100,389 |
|
|
|
100,577 |
|
Other intangible assets,
net |
|
219,717 |
|
|
|
221,458 |
|
Deferred tax asset |
|
58,566 |
|
|
|
62,573 |
|
Other assets |
|
9,668 |
|
|
|
10,190 |
|
Total assets |
$ |
922,407 |
|
|
$ |
925,924 |
|
Liabilities |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
37,995 |
|
|
$ |
40,402 |
|
Accrued expenses |
|
109,478 |
|
|
|
187,078 |
|
Income taxes and tax distribution payable |
|
839 |
|
|
|
847 |
|
Payable pursuant to tax receivable agreement, current portion |
|
4,111 |
|
|
|
4,111 |
|
Total current liabilities |
|
152,423 |
|
|
|
232,438 |
|
Deferred tax liabilities |
|
28,650 |
|
|
|
28,453 |
|
Other liabilities |
|
9,468 |
|
|
|
9,926 |
|
Payable pursuant to tax receivable agreement, less current
portion |
|
39,354 |
|
|
|
39,354 |
|
Long-term debt |
|
65,000 |
|
|
|
— |
|
Total liabilities |
|
294,895 |
|
|
|
310,171 |
|
|
|
|
|
Stockholders'
Equity |
|
|
|
Class A Common Stock, par
value $0.01 per share, 100,000,000 shares authorized; 20,404,413
shares issued and outstanding as of September 30, 2023;
20,603,822 issued and outstanding as of June 30, 2023 |
|
202 |
|
|
|
204 |
|
Class B Common Stock, par
value $0.01 per share, 25,000,000 shares authorized; 12 shares
issued and outstanding as of September 30, 2023 and
June 30, 2023 |
|
— |
|
|
|
— |
|
Preferred Stock, par value
$0.01 per share; 25,000,000 shares authorized; no shares issued and
outstanding as of September 30, 2023 and June 30,
2023 |
|
— |
|
|
|
— |
|
Additional paid in
capital |
|
78,194 |
|
|
|
86,321 |
|
Accumulated other
comprehensive loss |
|
(5,091 |
) |
|
|
(4,340 |
) |
Accumulated earnings |
|
545,956 |
|
|
|
525,697 |
|
Total stockholders' equity attributable to Malibu
Boats, Inc. |
|
619,261 |
|
|
|
607,882 |
|
Non-controlling interest |
|
8,251 |
|
|
|
7,871 |
|
Total stockholders’ equity |
|
627,512 |
|
|
|
615,753 |
|
Total liabilities and stockholders' equity |
$ |
922,407 |
|
|
$ |
925,924 |
|
MALIBU BOATS, INC. AND SUBSIDIARIES |
|
Reconciliation of Non-GAAP Financial Measures |
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
(Unaudited): |
The following table sets forth a reconciliation of net income as
determined in accordance with GAAP to Adjusted EBITDA and
presentation of Net Income Margin and Adjusted EBITDA Margin for
the periods indicated (dollars in thousands): |
|
Three Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
20,770 |
|
|
$ |
36,105 |
|
Provision for income
taxes |
|
6,978 |
|
|
|
11,023 |
|
Interest expense |
|
884 |
|
|
|
1,285 |
|
Depreciation |
|
6,324 |
|
|
|
5,296 |
|
Amortization |
|
1,715 |
|
|
|
1,716 |
|
Professional fees 1 |
|
857 |
|
|
|
— |
|
Stock-based compensation
expense 2 |
|
1,460 |
|
|
|
1,635 |
|
Adjusted EBITDA |
$ |
38,988 |
|
|
$ |
57,060 |
|
Net Sales |
$ |
255,830 |
|
|
$ |
302,211 |
|
Net Income Margin 3 |
|
8.1 |
% |
|
|
11.9 |
% |
Adjusted EBITDA Margin 3 |
|
15.2 |
% |
|
|
18.9 |
% |
(1) |
|
For the three months ended September 30, 2023, represents
legal and advisory fees related to product liability cases that
were settled for $100.0 million in June 2023. |
(2) |
|
Represents equity-based
incentives awarded to certain of our employees under the Malibu
Boats, Inc. Long-Term Incentive Plan and profit interests issued
under the previously existing limited liability company agreement
of the LLC. |
(3) |
|
We calculate net income margin as
net income divided by net sales and we define adjusted EBITDA
margin as adjusted EBITDA divided by net sales. |
Reconciliation of Non-GAAP Adjusted Fully Distributed Net
Income (Unaudited): |
The following
table shows the reconciliation of the numerator and denominator for
net income available to Class A Common Stock per share to Adjusted
Fully Distributed Net Income per Share of Class A Common Stock for
the periods presented (in thousands except share and per share
data): |
|
|
Three Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
Reconciliation of
numerator for net income available to Class A Common Stock per
share to Adjusted Fully Distributed Net Income per Share of Class A
Common Stock: |
|
|
|
Net income attributable to
Malibu Boats, Inc. |
$ |
20,259 |
|
|
$ |
34,883 |
|
Provision for income
taxes |
|
6,978 |
|
|
|
11,023 |
|
Professional fees 1 |
|
857 |
|
|
|
— |
|
Acquisition related expenses
2 |
|
1,677 |
|
|
|
1,677 |
|
Stock-based compensation
expense 3 |
|
1,460 |
|
|
|
1,635 |
|
Net income attributable to
non-controlling interest 4 |
|
511 |
|
|
|
1,222 |
|
Fully distributed net income
before income taxes |
|
31,742 |
|
|
|
50,440 |
|
Income tax expense on fully
distributed income before income taxes 5 |
|
7,777 |
|
|
|
12,276 |
|
Adjusted fully distributed net
income |
$ |
23,965 |
|
|
$ |
38,164 |
|
|
Three Months Ended September 30, |
|
2023 |
|
|
|
2022 |
|
Reconciliation of
denominator for net income available to Class A Common Stock per
share to Adjusted Fully Distributed Net Income per Share of Class A
Common Stock: |
|
|
|
|
|
|
Weighted-average shares
outstanding of Class A Common Stock used for basic net income per
share: |
20,586,487 |
|
|
|
20,459,849 |
|
Adjustments to
weighted-average shares of Class A Common Stock: |
|
|
|
|
|
|
Weighted-average LLC units held by non-controlling unit holders
6 |
455,919 |
|
|
|
600,919 |
|
Weighted-average unvested restricted stock awards issued to
management 7 |
232,584 |
|
|
|
254,781 |
|
Adjusted weighted-average
shares of Class A Common Stock outstanding used in computing
Adjusted Fully Distributed Net Income per Share of Class A Common
Stock: |
21,274,990 |
|
|
|
21,315,549 |
|
The following
table shows the reconciliation of net income available to Class A
Common Stock per share to Adjusted Fully Distributed Net Income per
Share of Class A Common Stock for the periods presented: |
|
|
Three Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
Net income available to Class
A Common Stock per share |
$ |
0.98 |
|
|
$ |
1.70 |
|
Impact of adjustments: |
|
|
|
Provision for income taxes |
|
0.34 |
|
|
|
0.54 |
|
Professional fees 1 |
|
0.04 |
|
|
|
— |
|
Acquisition related expenses 2 |
|
0.08 |
|
|
|
0.08 |
|
Stock-based compensation expense 3 |
|
0.07 |
|
|
|
0.08 |
|
Net income attributable to non-controlling interest 4 |
|
0.02 |
|
|
|
0.06 |
|
Fully distributed net income
per share before income taxes |
|
1.53 |
|
|
|
2.46 |
|
Impact of income tax expense on fully distributed income before
income taxes 5 |
|
(0.38 |
) |
|
|
(0.60 |
) |
Impact of increased share count 8 |
|
(0.02 |
) |
|
|
(0.07 |
) |
Adjusted Fully Distributed Net
Income per Share of Class A Common Stock |
$ |
1.13 |
|
|
$ |
1.79 |
|
(1) |
|
For the three months ended September 30, 2023, represents
legal and advisory fees related to product liability cases that
were settled for $100.0 million in June 2023. |
(2) |
|
For the three months ended
September 30, 2023 and 2022, represents amortization of
intangibles acquired in connection with the acquisitions of
Maverick Boat Group, Pursuit and Cobalt. |
(3) |
|
Represents equity-based
incentives awarded to certain of our employees under the Malibu
Boats, Inc. Long-Term Incentive Plan and profit interests issued
under the previously existing limited liability company agreement
of the LLC. |
(4) |
|
Reflects the elimination of the
non-controlling interest in the LLC as if all LLC members had fully
exchanged their LLC Units for shares of Class A Common Stock. |
(5) |
|
Reflects income tax expense at an
estimated normalized annual effective income tax rate of 24.5% and
24.3% of income before income taxes for the three months ended
September 30, 2023 and 2022, respectively, assuming the
conversion of all LLC Units into shares of Class A Common Stock.
The estimated normalized annual effective income tax rate for
fiscal year 2024 is based on the federal statutory rate plus a
blended state rate adjusted for the research and development tax
credit, the foreign derived intangible income deduction, and
foreign income taxes attributable to our Australian
subsidiary. |
(6) |
|
Represents the weighted-average
shares outstanding of LLC Units held by non-controlling interests
assuming they were exchanged into Class A Common Stock on a
one-for-one basis. |
(7) |
|
Represents the weighted-average
unvested restricted stock awards included in outstanding shares
during the applicable period that were convertible into Class A
Common Stock and granted to members of management. |
(8) |
|
Reflects impact of increased
share counts assuming the exchange of all weighted-average shares
outstanding of LLC Units into shares of Class A Common Stock and
the conversion of all weighted-average unvested restricted stock
awards included in outstanding shares granted to members of
management. |
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