Malibu Boats, Inc. Announces First Quarter Fiscal 2025 Results
Malibu Boats (MBUU) reported challenging Q1 fiscal 2025 results with significant declines across key metrics. Net sales decreased 32.9% to $171.6 million, while unit volume fell 39.7% to 1,024 units. The company posted a net loss of $5.1 million compared to a profit last year, with earnings per share dropping to -$0.25. Gross profit decreased 50.3% to $28.2 million, and Adjusted EBITDA fell 74.6% to $9.9 million. Despite these challenges, the company maintains a positive outlook, projecting low single-digit net sales growth for fiscal 2025 with Adjusted EBITDA margin ranging from 10-12%.
Malibu Boats (MBUU) ha riportato risultati difficili per il primo trimestre dell'anno fiscale 2025, con significative flessioni in tutti i principali indicatori. Le vendite nette sono diminuite del 32,9% a $171,6 milioni, mentre il volume delle unità è calato del 39,7% a 1.024 unità. L'azienda ha registrato una perdita netta di $5,1 milioni rispetto a un profitto dell'anno precedente, con gli utili per azione che sono scesi a -$0,25. Il utile lordo è diminuito del 50,3% a $28,2 milioni, e il Adjusted EBITDA è sceso del 74,6% a $9,9 milioni. Nonostante queste difficoltà, l'azienda mantiene un outlook positivo, prevedendo una crescita delle vendite nette a basse cifre singole per l'anno fiscale 2025, con un margine Adjusted EBITDA che varia tra il 10% e il 12%.
Malibu Boats (MBUU) reportó resultados desafiantes para el primer trimestre del ejercicio fiscal 2025, con importantes caídas en todos los indicadores clave. Las ventas netas disminuyeron un 32,9% a $171,6 millones, mientras que el volumen de unidades cayó un 39,7% a 1,024 unidades. La compañía tuvo una pérdida neta de $5,1 millones en comparación con las ganancias del año pasado, con ganancias por acción cayendo a -$0,25. El beneficio bruto se redujo un 50,3% a $28,2 millones, y el Adjusted EBITDA cayó un 74,6% a $9,9 millones. A pesar de estos desafíos, la empresa mantiene una perspectiva positiva, proyectando un crecimiento de las ventas netas de un solo dígito bajo para el ejercicio 2025, con un margen de Adjusted EBITDA que oscila entre el 10% y el 12%.
말리부 보트 (MBUU)는 2025 회계연도 첫 분기 결과가 어려움을 겪으며 주요 지표 전반에 걸쳐 상당한 감소를 보고했습니다. 순매출은 32.9% 감소하여 1억 7,160만 달러에 달했으며, 단위 판매량은 39.7% 감소하여 1,024대에 이르렀습니다. 회사는 작년도 이익과 비교하여 순손실 510만 달러를 기록했으며, 주당 수익은 -$0.25로 떨어졌습니다. 총수익은 50.3% 감소하여 2,820만 달러에 이르렀고, 조정 EBITDA는 74.6% 감소하여 990만 달러에 불과했습니다. 이러한 어려움에도 불구하고 회사는 긍정적인 전망을 유지하고 있으며, 2025 회계연도에 순매출 성장률이 저조한 단일 자릿수 대로 예상하며, 조정 EBITDA 마진은 10-12% 범위를 유지할 것으로 보고 있습니다.
Malibu Boats (MBUU) a annoncé des résultats difficiles pour le premier trimestre de l'exercice fiscal 2025, avec des baisses significatives dans tous les principaux indicateurs. Les ventes nettes ont chuté de 32,9 % pour atteindre 171,6 millions de dollars, tandis que le volume des unités a diminué de 39,7 % pour s'établir à 1 024 unités. L'entreprise a enregistré une perte nette de 5,1 millions de dollars par rapport à un bénéfice l'année dernière, avec un bénéfice par action tombant à -0,25 $. Le bénéfice brut a diminué de 50,3 % pour atteindre 28,2 millions de dollars, et l'Adjusted EBITDA a chuté de 74,6 % à 9,9 millions de dollars. Malgré ces défis, l'entreprise maintient une perspective positive, prévoyant une croissance des ventes nettes à un chiffre bas pour l'exercice fiscal 2025, avec une marge d'EBITDA ajustée oscillant entre 10 et 12 %.
Malibu Boats (MBUU) berichtete über herausfordernde Ergebnisse im ersten Quartal des Geschäftsjahres 2025 mit erheblichen Rückgängen in den wichtigsten Kennzahlen. Der Nettoverkauf verringerte sich um 32,9% auf 171,6 Millionen USD, während das Verkaufsvolumen um 39,7% auf 1.024 Einheiten fiel. Das Unternehmen verzeichnete einen Nettoverlust von 5,1 Millionen USD im Vergleich zu einem Gewinn im Vorjahr, mit einem Rückgang des Gewinns pro Aktie auf -0,25 USD. Der Bruttogewinn fiel um 50,3% auf 28,2 Millionen USD, und das Adjusted EBITDA sank um 74,6% auf 9,9 Millionen USD. Trotz dieser Herausforderungen behält das Unternehmen einen positiven Ausblick bei und prognostiziert ein niedriges einstelliges Wachstum der Nettoverkäufe für das Geschäftsjahr 2025, mit einer Adjusted EBITDA-Marge von 10-12%.
- Repurchased $10 million of common stock during the quarter
- Projects low single-digit net sales growth for fiscal 2025
- Net sales per unit increased 11.2% to $167,559
- Net sales decreased 32.9% to $171.6 million
- Unit volume declined 39.7% to 1,024 units
- Net income turned to a loss of $5.1 million from $20.8 million profit
- Gross profit margin decreased 580 basis points to 16.4%
- Adjusted EBITDA fell 74.6% to $9.9 million
- Operating income turned negative at -$5.6 million
Insights
The Q1 FY2025 results reveal significant challenges for Malibu Boats, with concerning declines across key metrics. Net sales dropped 32.9% to
Despite these headwinds, there are some stabilizing factors: the company maintained pricing power with an
The
The recreational boat industry is showing clear signs of cyclical weakness, with Malibu's results reflecting broader market conditions. Dealer inventory management and reduced retail activity are driving the significant volume declines across all segments - Malibu (-46.7%), Saltwater Fishing (-30.1%) and Cobalt (-12.7%).
The upcoming boat show season will be important for gauging consumer sentiment and potential recovery timing. While macroeconomic pressures persist, the company's ability to maintain price increases and favorable mix suggests the premium boat segment remains relatively resilient. The planned Investor Day in 2025 indicates management's confidence in their long-term strategy despite near-term challenges.
LOUDON, Tenn., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Malibu Boats, Inc. (Nasdaq: MBUU) today announced its financial results for the first quarter ended September 30, 2024.
First Quarter Fiscal 2025 Highlights Compared to First Quarter Fiscal 2024:
- Net sales decreased
32.9% to$171.6 million - Unit volume decreased
39.7% to 1,024 units - Gross profit decreased
50.3% to$28.2 million - GAAP net income decreased
124.8% to a net loss of$5.1 million - GAAP net income available to Class A Common Stock per share (diluted) decreased
125.5% to a net loss of$0.25 per share - Adjusted EBITDA decreased
74.6% to$9.9 million - Adjusted fully distributed net income per share decreased
92.9% to$0.08 per share on a fully distributed weighted-average share count of 20.6 million shares of Class A Common Stock
"During the first fiscal quarter, we continued to navigate a challenging retail environment. While we see some encouraging signs from a macro perspective, our team remains focused on managing the factors within our control, particularly through disciplined inventory management and executing our strategic initiatives," commented Steve Menneto, Chief Executive Officer of Malibu Boats, Inc. "As we enter the boat show season, we are excited to display our 2025 lineup, which has already received strong initial reactions. This season presents an important opportunity to connect with customers and demonstrate the cutting-edge innovation and quality that sets us apart. Looking ahead, we are also pleased to announce that we plan to host an Investor Day during calendar year 2025, during which we will provide further insights into our long-term vision to drive Malibu into its next chapter of growth."
“As expected, our financial performance this quarter reflects sequential improvements across revenues and margins as we scaled back promotional activity and continued showcasing our operating efficiencies. We are pleased with our execution in reducing our channel inventories and we anticipate wholesale shipments to improve as we progress through the remainder of the fiscal year," commented Bruce Beckman, Chief Financial Officer of Malibu Boats, Inc. "Additionally, we continue to execute on our capital allocation strategy, repurchasing an additional
First Quarter Fiscal 2025 Results (Unaudited)
| Three Months Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| (Dollars In Thousands) | |||||||
| Net Sales | $ | 171,580 | $ | 255,830 | |||
| Gross Profit | $ | 28,209 | $ | 56,794 | |||
| Gross Profit Margin | 16.4 | % | 22.2 | % | |||
| Net (Loss) Income | $ | (5,147 | ) | $ | 20,770 | ||
| Net (Loss) Income Margin | (3.0)% | 8.1 | % | ||||
| Adjusted EBITDA | $ | 9,895 | $ | 38,988 | |||
| Adjusted EBITDA Margin | 5.8 | % | 15.2 | % | |||
Net sales for the three months ended September 30, 2024 decreased
Net sales attributable to our Malibu segment decreased
Net sales attributable to our Saltwater Fishing segment decreased
Net sales attributable to our Cobalt segment decreased
Overall consolidated net sales per unit increased
Cost of sales for the three months ended September 30, 2024 decreased
Gross profit for the three months ended September 30, 2024 decreased
Selling and marketing expenses for the three months ended September 30, 2024 decreased
Operating (loss) income for the first quarter of fiscal year 2025 decreased to an operating loss of
Fiscal 2025 Guidance
For the full fiscal year 2025, Malibu anticipates net sales increase percentage in the low single digits year-over-year and Adjusted EBITDA margin ranging from
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 2025 results on Thursday, October 31, 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 (loss) 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 (loss) income before interest expense, income taxes, depreciation, amortization, and non-cash, non-recurring or non-operating expenses, including certain professional fees, litigation settlements 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 (loss) 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 (loss) 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. Adjusted EBITDA has limitations as an analytical tool and should not be considered as an alternative to, or more meaningful than, net (loss) income as determined in accordance with GAAP or as an indicator of our liquidity.
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 (loss) income attributable to Malibu Boats, Inc. (i) excluding income tax (benefit) 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 (benefit) 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 (loss) 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 (loss) 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 (Loss) 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 (loss) income as determined in accordance with GAAP to Adjusted EBITDA and the numerator and denominator for our net (loss) 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 our expectations for our financial performance for fiscal year 2025, our reaction to our 2025 lineup of boats, our expectations regarding wholesale shipments in the remainder of the fiscal year, our positioning to react to dynamic market conditions, 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: our large fixed cost base; our ability to execute our manufacturing strategy; our ability to accurately forecast demand for our products; 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; our reliance on certain suppliers for our engines and outboard motors; climate events in areas where we operate; our ability to meet our manufacturing workforce needs; our dependence on key management employees; 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 enhance existing products and develop and market new or enhanced products; our ability to protect our intellectual property; compromises or disruptions to our network and information systems; risks inherent in operating in foreign jurisdictions; general economic conditions; the continued strength and positive perception of our brands; the sale of boats previously held in inventory by our former dealer, Tommy's Boats; increased consumer preference for used boats, alternative fuel-powered boats or the supply of new boats by competitors in excess of demand; the seasonality of our business; competition within our industry and with other activities for consumers’ scarce leisure time; changes in currency exchange rates; inflation and heightened interest rates; 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 risks associated with litigation, investigation and regulatory proceedings; an impairment in the carrying value of goodwill, trade names and other long-lived assets; any failure to comply with laws and regulations including environmental, workplace safety and other regulatory requirements; covenants in our credit agreement governing our revolving credit facility which may limit our operating flexibility; our obligation to make certain payments under a tax receivable 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 Beckman
Chief Financial Officer
(865) 458-5478
InvestorRelations@MalibuBoats.com
| MALIBU BOATS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (In thousands, except share and per share data) | |||||||
| Three Months Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Net sales | $ | 171,580 | $ | 255,830 | |||
| Cost of sales | 143,371 | 199,036 | |||||
| Gross profit | 28,209 | 56,794 | |||||
| Operating expenses: | |||||||
| Selling and marketing | 4,864 | 5,752 | |||||
| General and administrative | 27,240 | 20,705 | |||||
| Amortization | 1,716 | 1,715 | |||||
| Operating (loss) income | (5,611 | ) | 28,622 | ||||
| Other expense (income), net: | |||||||
| Other (income), net | (10 | ) | (10 | ) | |||
| Interest expense | 396 | 884 | |||||
| Other expense, net | 386 | 874 | |||||
| (Loss) income before (benefit) provision for income taxes | (5,997 | ) | 27,748 | ||||
| (Benefit) provision for income taxes | (850 | ) | 6,978 | ||||
| Net (loss) income | (5,147 | ) | 20,770 | ||||
| Net (loss) income attributable to non-controlling interest | (99 | ) | 511 | ||||
| Net (loss) income attributable to Malibu Boats, Inc. | $ | (5,048 | ) | $ | 20,259 | ||
| Comprehensive (loss) income: | |||||||
| Net (loss) income | $ | (5,147 | ) | $ | 20,770 | ||
| Other comprehensive income (loss) : | |||||||
| Change in cumulative translation adjustment | 968 | (751 | ) | ||||
| Other comprehensive income (loss) | 968 | (751 | ) | ||||
| Comprehensive (loss) income | (4,179 | ) | 20,019 | ||||
| Less: comprehensive (loss) income attributable to non-controlling interest, net of tax | (80 | ) | 493 | ||||
| Comprehensive (loss) income attributable to Malibu Boats, Inc., net of tax | $ | (4,099 | ) | $ | 19,526 | ||
| Weighted-average shares outstanding used in computing net (loss) income per share: | |||||||
| Basic | 20,025,742 | 20,586,487 | |||||
| Diluted | 20,025,742 | 20,684,230 | |||||
| Net (loss) income available to Class A Common Stock per share: | |||||||
| Basic | $ | (0.25 | ) | $ | 0.98 | ||
| Diluted | $ | (0.25 | ) | $ | 0.98 | ||
| MALIBU BOATS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share data) | |||||||
| September 30, 2024 | June 30, 2024 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash | $ | 27,659 | $ | 26,945 | |||
| Trade receivables, net | 34,767 | 23,141 | |||||
| Inventories, net | 146,872 | 145,573 | |||||
| Prepaid expenses and other current assets | 12,280 | 6,470 | |||||
| Total current assets | 221,578 | 202,129 | |||||
| Property, plant and equipment, net | 245,492 | 244,601 | |||||
| Goodwill | 51,645 | 51,415 | |||||
| Other intangible assets, net | 173,760 | 175,449 | |||||
| Deferred tax assets | 59,312 | 58,097 | |||||
| Other assets | 7,350 | 7,933 | |||||
| Total assets | $ | 759,137 | $ | 739,624 | |||
| Liabilities | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 31,609 | $ | 19,152 | |||
| Accrued expenses | 110,892 | 119,430 | |||||
| Income taxes and tax distribution payable | 260 | 4 | |||||
| Total current liabilities | 142,761 | 138,586 | |||||
| Deferred tax liabilities | 17,773 | 17,661 | |||||
| Other liabilities | 7,619 | 8,045 | |||||
| Payable pursuant to tax receivable agreement | 40,613 | 40,613 | |||||
| Long-term debt | 28,000 | — | |||||
| Total liabilities | 236,766 | 204,905 | |||||
| Stockholders' Equity | |||||||
| Class A Common Stock, par value | 197 | 200 | |||||
| Class B Common Stock, par value | — | — | |||||
| Preferred Stock, par value | — | — | |||||
| Additional paid in capital | 56,041 | 64,222 | |||||
| Accumulated other comprehensive loss, net of tax | (3,230 | ) | (4,198 | ) | |||
| Accumulated earnings | 464,737 | 469,785 | |||||
| Total stockholders' equity attributable to Malibu Boats, Inc. | 517,745 | 530,009 | |||||
| Non-controlling interest | 4,626 | 4,710 | |||||
| Total stockholders’ equity | 522,371 | 534,719 | |||||
| Total liabilities and stockholders' equity | $ | 759,137 | $ | 739,624 | |||
MALIBU BOATS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
Reconciliation of Net (Loss) Income to Non-GAAP Adjusted EBITDA (Unaudited):
The following table sets forth a reconciliation of net (loss) income as determined in accordance with GAAP to Adjusted EBITDA and presentation of Net (Loss) Income Margin and Adjusted EBITDA Margin for the periods indicated (dollars in thousands):
| Three Months Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Net (loss) income | $ | (5,147 | ) | $ | 20,770 | ||
| (Benefit) provision for income taxes | (850 | ) | 6,978 | ||||
| Interest expense | 396 | 884 | |||||
| Depreciation | 7,374 | 6,324 | |||||
| Amortization | 1,716 | 1,715 | |||||
| Professional fees 1 | 1,006 | 857 | |||||
| Litigation settlement2 | 3,500 | — | |||||
| Stock-based compensation expense 3 | 1,900 | 1,460 | |||||
| Adjusted EBITDA | $ | 9,895 | $ | 38,988 | |||
| Net Sales | $ | 171,580 | $ | 255,830 | |||
| Net (Loss) Income Margin 4 | (3.0)% | 8.1 | % | ||||
| Adjusted EBITDA Margin 4 | 5.8 | % | 15.2 | % | |||
| (1 | ) | For the three months ended September 30, 2024, represents legal and advisory fees related to ongoing litigation with the Company's insurance carriers related to the Batchelder matters for fiscal year 2025. For the three months ended September 30, 2023, represents legal and advisory fees related to product liability cases that were settled in June 2023. |
| (2 | ) | Represents amount the Company has agreed to pay pursuant to a settlement agreement with Mark E. Andrews, Chapter 11 Trustee for Tommy's Fort Worth, LLC and its affiliate debtors . The Settlement Agreement remains subject to approval by the Bankruptcy Court. |
| (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 | ) | We calculate net (loss) income margin as net (loss) 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 (Loss) Income (Unaudited):
The following table shows the reconciliation of the numerator and denominator for net (loss) income available to Class A Common Stock per share to Adjusted Fully Distributed Net (Loss) 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, | ||||||
| 2024 | 2023 | |||||
| Reconciliation of numerator for net (loss) income available to Class A Common Stock per share to Adjusted Fully Distributed Net Income per Share of Class A Common Stock: | ||||||
| Net (loss) income attributable to Malibu Boats, Inc. | $ | (5,048 | ) | $ | 20,259 | |
| (Benefit) provision for income taxes | (850 | ) | 6,978 | |||
| Professional fees 1 | 1,006 | 857 | ||||
| Acquisition and integration related expenses 2 | 1,677 | 1,677 | ||||
| Stock-based compensation expense 3 | 1,900 | 1,460 | ||||
| Litigation settlement4 | 3,500 | — | ||||
| Net (loss) income attributable to non-controlling interest 5 | (99 | ) | 511 | |||
| Fully distributed net income before income taxes | 2,086 | 31,742 | ||||
| Income tax expense on fully distributed income before income taxes 6 | 511 | 7,777 | ||||
| Adjusted fully distributed net income | $ | 1,575 | $ | 23,965 | ||
| Three Months Ended September 30, | |||
| 2024 | 2023 | ||
| Reconciliation of denominator for net (loss) 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 (loss) income per share: | 20,025,742 | 20,586,487 | |
| Adjustments to weighted-average shares of Class A Common Stock: | |||
| Weighted-average LLC units held by non-controlling unit holders 7 | 321,419 | 455,919 | |
| Weighted-average unvested restricted stock awards issued to management 8 | 290,914 | 232,584 | |
| 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: | 20,638,075 | 21,274,990 | |
The following table shows the reconciliation of net (loss) 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, | |||||||
| 2024 | 2023 | ||||||
| Net (loss) income available to Class A Common Stock per share | $ | (0.25 | ) | $ | 0.98 | ||
| Impact of adjustments: | |||||||
| (Benefit) provision for income taxes | (0.04 | ) | 0.34 | ||||
| Professional fees 1 | 0.05 | 0.04 | |||||
| Acquisition and integration related expenses 2 | 0.08 | 0.08 | |||||
| Stock-based compensation expense 3 | 0.09 | 0.07 | |||||
| Litigation settlement4 | 0.17 | — | |||||
| Net (loss) income attributable to non-controlling interest 5 | — | 0.02 | |||||
| Fully distributed net income per share before income taxes | 0.10 | 1.53 | |||||
| Impact of income tax expense on fully distributed income before income taxes 6 | (0.03 | ) | (0.38 | ) | |||
| Impact of increased share count 9 | 0.01 | (0.02 | ) | ||||
| Adjusted Fully Distributed Net Income per Share of Class A Common Stock | $ | 0.08 | $ | 1.13 | |||
| (1 | ) | For the three months ended September 30, 2024, represents legal and advisory fees related to ongoing litigation with the Company's insurance carriers related to the Batchelder matters for fiscal year 2025. For the three months ended September 30, 2023, represents legal and advisory fees related to product liability cases that were settled in June 2023. |
| (2 | ) | For the three months ended September 30, 2024 and 2023, 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 | ) | Represents amount the Company has agreed to pay pursuant to a settlement agreement with Mark E. Andrews, Chapter 11 Trustee for Tommy's Fort Worth, LLC and its affiliate debtors. The Settlement Agreement remains subject to approval by the Bankruptcy Court. |
| (5 | ) | 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. |
| (6 | ) | Reflects income tax expense at an estimated normalized annual effective income tax rate of |
| (7 | ) | 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. |
| (8 | ) | 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. |
| (9 | ) | 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. |
FAQ
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