Malibu Boats, Inc. (Nasdaq: MBUU) today announced its financial
results for the second quarter ended December 31, 2023.
Second Quarter Fiscal
2024 Highlights Compared to
Second Quarter Fiscal
2023:
- Net sales decreased 37.7% to $211.1
million
- Unit volume decreased 43.7% to
1,373 units
- Gross profit decreased 50.5% to $37.5
million
- Net income decreased 72.1% to $10.1
million
- Adjusted EBITDA decreased 60.2% to
$22.9 million
- Net income available to Class A Common
Stock per share (diluted) decreased 71.5% to $0.49 per share
- Adjusted fully distributed net income
per share decreased 68.9% to $0.57 per share on a fully distributed
weighted-average share count of 21.1 million shares of
Class A Common Stock
“Our second quarter results, historically our slowest time of
the year, were impacted by weak retail demand,” commented Jack
Springer, Chief Executive Officer of Malibu Boats, Inc. “We are
recalibrating wholesale production to match retail demand as
seasonality, along with continued interest rate pressures has
resulted in elevated inventory levels. While the current
macroeconomic outlook creates uncertainty, we are starting to see
some positive signs following our Year End Sales event for Malibu,
demonstrating the resiliency of our brands. The upcoming boat show
season will serve as an additional indicator of retail recovery, as
we believe it will reflect the continuing consumer interest for our
larger, feature-rich boats.”
“Looking ahead, while we are optimistic about our ability to
return to growth as the market recovers, we will remain lean and
nimble. Our operational capabilities, highly variable cost
structure and strong team enables Malibu to execute in any choppy
environment. These strengths, which we have demonstrated year after
year, allow us to continue to be aggressive and continue to invest
in the business. As always, we will lead the way as the premier
recreational power boat manufacturer as we strive to take advantage
of strategic opportunities during down cycles, continue growing our
market share, and position ourselves to drive long-term value for
our shareholders.” continued Mr. Springer.
Second Quarter Fiscal
2024 Results (Unaudited)
| |
Three Months Ended December 31, |
|
Six Months Ended December 31, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| |
(Dollars In Thousands) |
|
Net Sales |
$ |
211,074 |
|
|
$ |
338,732 |
|
|
$ |
466,904 |
|
|
$ |
640,943 |
|
| Gross Profit |
$ |
37,475 |
|
|
$ |
75,654 |
|
|
$ |
94,269 |
|
|
$ |
150,259 |
|
| Gross Profit Margin |
|
17.8 |
% |
|
|
22.3 |
% |
|
|
20.2 |
% |
|
|
23.4 |
% |
| Net Income |
$ |
10,144 |
|
|
$ |
36,396 |
|
|
$ |
30,914 |
|
|
$ |
72,501 |
|
| Net Income Margin |
|
4.8 |
% |
|
|
10.7 |
% |
|
|
6.6 |
% |
|
|
11.3 |
% |
| Adjusted EBITDA |
$ |
22,930 |
|
|
$ |
57,610 |
|
|
$ |
61,918 |
|
|
$ |
114,670 |
|
| Adjusted EBITDA Margin |
|
10.9 |
% |
|
|
17.0 |
% |
|
|
13.3 |
% |
|
|
17.9 |
% |
Net sales for the three months ended December 31, 2023
decreased $127.7 million, or 37.7%, to $211.1 million as compared
to the three months ended December 31, 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 in our Malibu and
Saltwater Fishing segments and inflation-driven year-over-year
price increases. Unit volume for the three months ended
December 31, 2023, decreased 1,066 units, or 43.7%, to 1,373
units as compared to the three months ended December 31, 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 $81.8
million, or 51.7%, to $76.4 million for the three months ended
December 31, 2023, compared to the three months ended
December 31, 2022. Unit volumes attributable to our Malibu
segment decreased 712 units for the three months ended
December 31, 2023, compared to the three months ended
December 31, 2022, primarily due to lower wholesale shipments
driven by lower retail activity during the period and elevated
dealer channel inventory levels. 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
decreased $22.9 million, or 21.6%, to $82.7 million, for the three
months ended December 31, 2023, compared to the three months
ended December 31, 2022. Unit volume decreased 188 units for
the three months ended December 31, 2023 compared to the three
months ended December 31, 2022. 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 Cobalt segment decreased $23.0
million, or 30.7%, to $52.0 million for the three months ended
December 31, 2023, compared to the three months ended
December 31, 2022. Unit volumes attributable to Cobalt
decreased 166 units for the three months ended December 31,
2023 compared to the three months ended December 31, 2022. The
decrease in net sales was driven primarily by a decrease in units
and increased dealer flooring program costs, partially offset by
inflation-driven year-over-year price increases.
Overall consolidated net sales per unit increased 10.7% to
$153,732 per unit for the three months ended December 31,
2023, compared to the three months ended December 31, 2022.
Net sales per unit for our Malibu segment increased 5.0% to
$126,056 per unit for the three months ended December 31,
2023, compared to the three months ended December 31, 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 14.7% to $204,279 per unit for the three months ended
December 31, 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 1.1% to $143,511 per unit for the
three months ended December 31, 2023, compared to the three
months ended December 31, 2022, driven by inflation-driven
year-over-year price increases, partially offset by increased
dealer flooring program costs and unfavorable model mix.
Cost of sales for the three months ended December 31, 2023
decreased $89.5 million, or 34.0%, to $173.6 million as compared to
the three months ended December 31, 2022. The decrease in cost
of sales was primarily driven by a 37.7% decrease in net sales due
to lower unit volumes, partially offset by higher per unit material
and labor costs of $4.2 million and $7.0 million for the Malibu and
Saltwater Fishing segments, respectively. The increase in per unit
material and labor costs was primarily driven by increased prices
due to inflationary pressures and a model mix that corresponds to
higher cost per unit in our Malibu and Saltwater Fishing
segments.
Gross profit for the three months ended December 31, 2023
decreased $38.2 million, or 50.5%, to $37.5 million compared to the
three months ended December 31, 2022. The decrease in gross
profit was driven primarily by lower net sales partially offset by
decreased cost of sales for the reasons noted above. Gross margin
for the three months ended December 31, 2023 decreased 450
basis points from 22.3% to 17.8% driven by fixed cost deleverage
due to lower sales, increased mix of the Saltwater Fishing segment
and increased dealer flooring program costs.
Selling and marketing expenses for the three months ended
December 31, 2023 decreased $0.6 million, or 9.5% to $5.6
million compared to the three months ended December 31, 2022.
The decrease was driven primarily by a decrease in marketing
events. As a percentage of sales, selling and marketing expenses
increased 90 basis points to 2.7% for the three months ended
December 31, 2023 compared to 1.8% for the three months ended
December 31, 2022. General and administrative expenses for the
three months ended December 31, 2023 decreased $3.6 million,
or 19.0%, to $15.4 million as compared to the three months ended
December 31, 2022 driven primarily by a decrease in
personnel-related expenses, partially offset by increased
information technology costs and professional fees. As a percentage
of sales, general and administrative expenses increased 170 basis
points to 7.3% for the three months ended December 31, 2023
compared to 5.6% for the three months ended December 31, 2022.
Amortization expense remained flat at $1.7 million for the three
months ended December 31, 2023.
Operating income for the second quarter of fiscal year 2024
decreased to $14.7 million from $48.7 million in the second quarter
of fiscal year 2023. Net income for the second quarter of fiscal
year 2024 decreased 72.1% to $10.1 million from $36.4 million and
net income margin decreased to 4.8% from 10.7% in the second
quarter of fiscal year 2023. Adjusted EBITDA in the second quarter
of fiscal year 2024 decreased 60.2% to $22.9 million from $57.6
million, while Adjusted EBITDA margin decreased to 10.9% from 17.0%
in the second quarter of fiscal year 2023.
Fiscal 2024 Guidance
For the full fiscal year 2024, Malibu anticipates net sales
decline ranging from the mid-to-high thirties percentage,
year-over-year, and Adjusted EBITDA margin down 800 to 900 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
second quarter of fiscal year 2024 results on Tuesday,
January 30, 2024, 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 potential
positive retail demand trends from upcoming boat shows, our outlook
for the marine industry and broader economy 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.Bruce BeckmanChief Financial
Officer(865) 458-5478InvestorRelations@MalibuBoats.com
| |
|
MALIBU BOATS, INC. AND
SUBSIDIARIESCondensed Consolidated Statements of
Operations and Comprehensive Income (Unaudited)(In
thousands, except share and per share data) |
| |
| |
Three Months Ended December
31, |
|
Six Months Ended December
31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net sales |
$ |
211,074 |
|
|
$ |
338,732 |
|
|
$ |
466,904 |
|
|
$ |
640,943 |
|
| Cost of sales |
|
173,599 |
|
|
|
263,078 |
|
|
|
372,635 |
|
|
|
490,684 |
|
| Gross profit |
|
37,475 |
|
|
|
75,654 |
|
|
|
94,269 |
|
|
|
150,259 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Selling and marketing |
|
5,610 |
|
|
|
6,198 |
|
|
|
11,362 |
|
|
|
11,384 |
|
|
General and administrative |
|
15,440 |
|
|
|
19,057 |
|
|
|
36,145 |
|
|
|
38,277 |
|
|
Amortization |
|
1,713 |
|
|
|
1,715 |
|
|
|
3,428 |
|
|
|
3,431 |
|
| Operating income |
|
14,712 |
|
|
|
48,684 |
|
|
|
43,334 |
|
|
|
97,167 |
|
| Other expense, net: |
|
|
|
|
|
|
|
|
Other (income) expense, net |
|
(9 |
) |
|
|
193 |
|
|
|
(19 |
) |
|
|
263 |
|
|
Interest expense |
|
671 |
|
|
|
910 |
|
|
|
1,555 |
|
|
|
2,195 |
|
| Other expense, net |
|
662 |
|
|
|
1,103 |
|
|
|
1,536 |
|
|
|
2,458 |
|
| Income before provision for
income taxes |
|
14,050 |
|
|
|
47,581 |
|
|
|
41,798 |
|
|
|
94,709 |
|
| Provision for income
taxes |
|
3,906 |
|
|
|
11,185 |
|
|
|
10,884 |
|
|
|
22,208 |
|
|
Net income |
|
10,144 |
|
|
|
36,396 |
|
|
|
30,914 |
|
|
|
72,501 |
|
| Net income attributable to
non-controlling interest |
|
263 |
|
|
|
1,234 |
|
|
|
774 |
|
|
|
2,456 |
|
|
Net income attributable to Malibu Boats, Inc. |
$ |
9,881 |
|
|
$ |
35,162 |
|
|
$ |
30,140 |
|
|
$ |
70,045 |
|
| |
|
|
|
|
|
|
|
| Comprehensive
income: |
|
|
|
|
|
|
|
| Net income |
$ |
10,144 |
|
|
$ |
36,396 |
|
|
$ |
30,914 |
|
|
$ |
72,501 |
|
| Other comprehensive income
(loss): |
|
|
|
|
|
|
|
|
Change in cumulative translation adjustment |
|
1,427 |
|
|
|
1,227 |
|
|
|
676 |
|
|
|
(209 |
) |
| Other comprehensive income
(loss) |
|
1,427 |
|
|
|
1,227 |
|
|
|
676 |
|
|
|
(209 |
) |
|
Comprehensive income |
|
11,571 |
|
|
|
37,623 |
|
|
|
31,590 |
|
|
|
72,292 |
|
| Less: comprehensive income
attributable to non-controlling interest |
|
300 |
|
|
|
1,276 |
|
|
|
793 |
|
|
|
2,449 |
|
|
Comprehensive income attributable to Malibu Boats, Inc. |
$ |
11,271 |
|
|
$ |
36,347 |
|
|
$ |
30,797 |
|
|
$ |
69,843 |
|
| |
|
|
|
|
|
|
|
| Weighted-average
shares outstanding used in computing net income per
share: |
|
|
|
|
|
|
|
| Basic |
|
20,375,750 |
|
|
|
20,404,583 |
|
|
|
20,481,119 |
|
|
|
20,432,216 |
|
| Diluted |
|
20,450,204 |
|
|
|
20,516,025 |
|
|
|
20,567,218 |
|
|
|
20,559,752 |
|
| Net income available
to Class A Common Stock per share: |
|
|
|
|
|
|
|
| Basic |
$ |
0.49 |
|
|
$ |
1.73 |
|
|
$ |
1.47 |
|
|
$ |
3.43 |
|
| Diluted |
$ |
0.49 |
|
|
$ |
1.72 |
|
|
$ |
1.47 |
|
|
$ |
3.41 |
|
| |
|
MALIBU BOATS, INC. AND
SUBSIDIARIESCondensed Consolidated Balance Sheets
(Unaudited)(In thousands, except share and per
share data) |
| |
| |
December 31, 2023 |
|
June 30, 2023 |
| Assets |
|
|
|
| Current assets |
|
|
|
|
Cash |
$ |
55,722 |
|
|
$ |
78,937 |
|
|
Trade receivables, net |
|
27,493 |
|
|
|
68,381 |
|
|
Inventories, net |
|
157,766 |
|
|
|
171,189 |
|
|
Prepaid expenses and other current assets |
|
11,968 |
|
|
|
7,827 |
|
|
Total current assets |
|
252,949 |
|
|
|
326,334 |
|
| Property, plant and equipment,
net |
|
245,131 |
|
|
|
204,792 |
|
| Goodwill |
|
100,733 |
|
|
|
100,577 |
|
| Other intangible assets,
net |
|
218,049 |
|
|
|
221,458 |
|
| Deferred tax asset |
|
54,045 |
|
|
|
62,573 |
|
| Other assets |
|
9,089 |
|
|
|
10,190 |
|
|
Total assets |
$ |
879,996 |
|
|
$ |
925,924 |
|
|
Liabilities |
|
|
|
| Current liabilities |
|
|
|
|
Accounts payable |
$ |
27,967 |
|
|
$ |
40,402 |
|
|
Accrued expenses |
|
106,716 |
|
|
|
187,078 |
|
|
Income taxes and tax distribution payable |
|
74 |
|
|
|
847 |
|
|
Payable pursuant to tax receivable agreement, current portion |
|
4,111 |
|
|
|
4,111 |
|
|
Total current liabilities |
|
138,868 |
|
|
|
232,438 |
|
|
Deferred tax liabilities |
|
29,123 |
|
|
|
28,453 |
|
|
Other liabilities |
|
8,989 |
|
|
|
9,926 |
|
|
Payable pursuant to tax receivable agreement, less current
portion |
|
39,354 |
|
|
|
39,354 |
|
|
Long-term debt |
|
35,000 |
|
|
|
— |
|
|
Total liabilities |
|
251,334 |
|
|
|
310,171 |
|
| |
|
|
|
| Stockholders'
Equity |
|
|
|
| Class A Common Stock, par
value $0.01 per share, 100,000,000 shares authorized; 20,298,626
shares issued and outstanding as of December 31, 2023;
20,603,822 issued and outstanding as of June 30, 2023 |
|
201 |
|
|
|
204 |
|
| Class B Common Stock, par
value $0.01 per share, 25,000,000 shares authorized; 12 shares
issued and outstanding as of December 31, 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 December 31, 2023 and June 30,
2023 |
|
— |
|
|
|
— |
|
| Additional paid in
capital |
|
67,745 |
|
|
|
86,321 |
|
| Accumulated other
comprehensive loss |
|
(3,664 |
) |
|
|
(4,340 |
) |
| Accumulated earnings |
|
555,837 |
|
|
|
525,697 |
|
|
Total stockholders' equity attributable to Malibu
Boats, Inc. |
|
620,119 |
|
|
|
607,882 |
|
| Non-controlling interest |
|
8,543 |
|
|
|
7,871 |
|
|
Total stockholders’ equity |
|
628,662 |
|
|
|
615,753 |
|
|
Total liabilities and stockholders' equity |
$ |
879,996 |
|
|
$ |
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 December 31, |
|
Six Months Ended December 31, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net income |
$ |
10,144 |
|
|
$ |
36,396 |
|
|
$ |
30,914 |
|
|
$ |
72,501 |
|
| Provision for income
taxes |
|
3,906 |
|
|
|
11,185 |
|
|
|
10,884 |
|
|
|
22,208 |
|
| Interest expense |
|
671 |
|
|
|
910 |
|
|
|
1,555 |
|
|
|
2,195 |
|
| Depreciation |
|
6,343 |
|
|
|
5,388 |
|
|
|
12,667 |
|
|
|
10,684 |
|
| Amortization |
|
1,713 |
|
|
|
1,715 |
|
|
|
3,428 |
|
|
|
3,431 |
|
| Professional fees 1 |
|
290 |
|
|
|
— |
|
|
|
1,147 |
|
|
|
— |
|
| Stock-based compensation
expense 2 |
|
(137 |
) |
|
|
2,016 |
|
|
|
1,323 |
|
|
|
3,651 |
|
|
Adjusted EBITDA |
$ |
22,930 |
|
|
$ |
57,610 |
|
|
$ |
61,918 |
|
|
$ |
114,670 |
|
|
Net Sales |
$ |
211,074 |
|
|
$ |
338,732 |
|
|
$ |
466,904 |
|
|
$ |
640,943 |
|
|
Net Income Margin 3 |
|
4.8 |
% |
|
|
10.7 |
% |
|
|
6.6 |
% |
|
|
11.3 |
% |
|
Adjusted EBITDA Margin 3 |
|
10.9 |
% |
|
|
17.0 |
% |
|
|
13.3 |
% |
|
|
17.9 |
% |
|
(1 |
) |
For the three and six months ended December 31, 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 December 31, |
|
Six Months Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
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. |
$ |
9,881 |
|
|
$ |
35,162 |
|
|
$ |
30,140 |
|
|
$ |
70,045 |
|
| Provision for income
taxes |
|
3,906 |
|
|
|
11,185 |
|
|
|
10,884 |
|
|
|
22,208 |
|
| Professional fees 1 |
|
290 |
|
|
|
— |
|
|
|
1,147 |
|
|
|
— |
|
| Acquisition related expenses
2 |
|
1,677 |
|
|
|
1,677 |
|
|
|
3,354 |
|
|
|
3,354 |
|
| Stock-based compensation
expense 3 |
|
(137 |
) |
|
|
2,016 |
|
|
|
1,323 |
|
|
|
3,651 |
|
| Net income attributable to
non-controlling interest 4 |
|
263 |
|
|
|
1,234 |
|
|
|
774 |
|
|
|
2,456 |
|
| Fully distributed net income
before income taxes |
|
15,880 |
|
|
|
51,274 |
|
|
|
47,622 |
|
|
|
101,714 |
|
| Income tax expense on fully
distributed income before income taxes 5 |
|
3,890 |
|
|
|
12,441 |
|
|
|
11,667 |
|
|
|
24,717 |
|
| Adjusted fully distributed net
income |
$ |
11,990 |
|
|
$ |
38,833 |
|
|
$ |
35,955 |
|
|
$ |
76,997 |
|
| |
Three Months Ended December 31, |
|
Six Months Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
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: |
20,375,750 |
|
|
20,404,583 |
|
|
20,481,119 |
|
|
20,432,216 |
|
| 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 |
|
|
455,919 |
|
|
600,919 |
|
|
Weighted-average unvested restricted stock awards issued to
management 7 |
259,652 |
|
|
284,830 |
|
|
246,118 |
|
|
269,806 |
|
| 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: |
21,091,321 |
|
|
21,290,332 |
|
|
21,183,156 |
|
|
21,302,941 |
|
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 December 31, |
|
Six Months Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net income available to Class
A Common Stock per share |
$ |
0.49 |
|
|
$ |
1.73 |
|
|
$ |
1.47 |
|
|
$ |
3.43 |
|
| Impact of adjustments: |
|
|
|
|
|
|
|
|
Provision for income taxes |
|
0.19 |
|
|
|
0.55 |
|
|
|
0.53 |
|
|
|
1.09 |
|
|
Professional fees 1 |
|
0.02 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
|
Acquisition related expenses 2 |
|
0.08 |
|
|
|
0.08 |
|
|
|
0.16 |
|
|
|
0.16 |
|
|
Stock-based compensation expense 3 |
|
(0.01 |
) |
|
|
0.10 |
|
|
|
0.06 |
|
|
|
0.18 |
|
|
Net income attributable to non-controlling interest 4 |
|
0.01 |
|
|
|
0.06 |
|
|
|
0.03 |
|
|
|
0.12 |
|
| Fully distributed net income
per share before income taxes |
|
0.78 |
|
|
|
2.52 |
|
|
|
2.31 |
|
|
|
4.98 |
|
|
Impact of income tax expense on fully distributed income before
income taxes 5 |
|
(0.19 |
) |
|
|
(0.61 |
) |
|
|
(0.57 |
) |
|
|
(1.21 |
) |
|
Impact of increased share count 8 |
|
(0.02 |
) |
|
|
(0.08 |
) |
|
|
(0.04 |
) |
|
|
(0.15 |
) |
| Adjusted Fully Distributed Net
Income per Share of Class A Common Stock |
$ |
0.57 |
|
|
$ |
1.83 |
|
|
$ |
1.70 |
|
|
$ |
3.62 |
|
|
(1 |
) |
For the three and six months ended December 31, 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 and six months ended December 31, 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 December 31, 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. |
Malibu Boats (NASDAQ:MBUU)
Historical Stock Chart
From Apr 2024 to May 2024
Malibu Boats (NASDAQ:MBUU)
Historical Stock Chart
From May 2023 to May 2024
