Malibu Boats, Inc. Announces Fourth Quarter Fiscal 2024 Results
Malibu Boats, Inc. (MBUU) reported its Q4 and fiscal year 2024 results, showing significant declines across key financial metrics. Net sales decreased 57.4% to $158.7 million in Q4, while unit volume fell 59.0% to 1,045 units. For the full fiscal year, net sales dropped 40.3% to $829.0 million, with unit volume down 45.4% to 5,385 units. The company reported a net loss of $19.6 million for Q4 and $56.4 million for the full year. Adjusted EBITDA also declined significantly. The company attributed these results to lower wholesale shipments driven by weakening retail demand and elevated dealer channel inventory levels. Despite challenges, Malibu Boats remains focused on navigating near-term headwinds while positioning for future growth.
Malibu Boats, Inc. (MBUU) ha riportato i risultati del quarto trimestre e dell'anno fiscale 2024, evidenziando cali significativi in vari indicatori finanziari chiave. Le vendite nette sono diminuite del 57,4% raggiungendo 158,7 milioni di dollari nel Q4, mentre il volume delle unità è sceso del 59,0% a 1.045 unità. Per l'intero anno fiscale, le vendite nette sono calate del 40,3% a 829,0 milioni di dollari, con il volume delle unità in diminuzione del 45,4% a 5.385 unità. L'azienda ha riportato una perdita netta di 19,6 milioni di dollari per il Q4 e 56,4 milioni di dollari per l'intero anno. Anche l'EBITDA rettificato ha subito un notevole calo. L'azienda ha attribuito questi risultati a spedizioni all'ingrosso inferiori, influenzate da una domanda al dettaglio in declino e livelli elevati di inventario nei canali dei rivenditori. Nonostante le sfide, Malibu Boats rimane concentrata nel gestire le difficoltà a breve termine mentre si posiziona per una crescita futura.
Malibu Boats, Inc. (MBUU) informó sus resultados del cuarto trimestre y del año fiscal 2024, mostrando una caída significativa en métricas financieras clave. Las ventas netas disminuyeron un 57.4% alcanzando 158.7 millones de dólares en el Q4, mientras que el volumen de unidades cayó un 59.0% a 1,045 unidades. Para el año fiscal completo, las ventas netas cayeron un 40.3% a 829.0 millones de dólares, con el volumen de unidades en descenso del 45.4% a 5,385 unidades. La compañía reportó una pérdida neta de 19.6 millones de dólares para el Q4 y 56.4 millones de dólares para el año completo. El EBITDA ajustado también disminuyó significativamente. La empresa atribuyó estos resultados a envíos mayoristas más bajos impulsados por una demanda minorista debilitada y niveles elevados de inventario en el canal de distribuidores. A pesar de los desafíos, Malibu Boats se mantiene enfocada en navegar por las dificultades a corto plazo mientras se posiciona para un crecimiento futuro.
말리부 보트, Inc. (MBUU)는 2024 회계 연도 4분기 결과를 발표하며 주요 재무 지표에서 상당한 감소를 보였습니다. 넷 판매액은 57.4% 감소하여 1억 5,870만 달러에 달했고, 단위 수량은 59.0% 감소하여 1,045대로 줄었습니다. 전체 회계 연도 동안 넷 판매액은 40.3% 감소하여 8억 2,900만 달러였으며, 단위 수량은 45.4% 감소하여 5,385대로 떨어졌습니다. 회사는 4분기에 1,960만 달러의 순손실을 보고하였고, 전체 연도에는 5,640만 달러의 순손실을 기록했습니다. 조정된 EBITDA도 크게 감소했습니다. 말리부 보트사는 이러한 결과를 소매 수요 약화와 높은 딜러 채널 재고 수준에 따른 도매 출하량 감소로 설명했습니다. 도전 과제가 있음에도 불구하고 말리부 보트사는 단기적으로 어려움을 극복하며 미래 성장에 대비하고 있습니다.
Malibu Boats, Inc. (MBUU) a publié ses résultats du quatrième trimestre et de l'exercice 2024, montrant des baisses significatives dans les principaux indicateurs financiers. Les ventes nettes ont diminué de 57,4 % pour atteindre 158,7 millions de dollars au Q4, tandis que le volume des unités a chuté de 59,0 % à 1 045 unités. Pour l'exercice complet, les ventes nettes ont baissé de 40,3 % pour s'établir à 829,0 millions de dollars, avec un volume d'unités en baisse de 45,4 % à 5 385 unités. L'entreprise a déclaré une perte nette de 19,6 millions de dollars pour le Q4 et 56,4 millions de dollars pour l'ensemble de l'année. L'EBITDA ajusté a également considérablement diminué. L'entreprise a attribué ces résultats à une baisse des expéditions en gros, exacerbée par une demande au détail en déclin et des niveaux d'inventaire élevés dans le canal des distributeurs. Malgré ces défis, Malibu Boats reste concentrée sur la navigation à court terme des turbulences tout en se positionnant pour une croissance future.
Malibu Boats, Inc. (MBUU) hat seine Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 bekannt gegeben, wobei erhebliche Rückgänge bei den wichtigsten Finanzkennzahlen zu verzeichnen sind. Der Nettoumsatz ist um 57,4% auf 158,7 Millionen US-Dollar gesunken im Q4, während das Stückvolumen um 59,0% auf 1.045 Einheiten gefallen ist. Für das gesamte Geschäftsjahr ging der Nettoumsatz um 40,3% auf 829,0 Millionen US-Dollar zurück, wobei das Stückvolumen um 45,4% auf 5.385 Einheiten gesunken ist. Das Unternehmen berichtete von einem Nettoverlust von 19,6 Millionen US-Dollar im Q4 und 56,4 Millionen US-Dollar für das gesamte Jahr. Auch das angepasste EBITDA ist erheblich gesunken. Das Unternehmen führte diese Ergebnisse auf eine geringere Großhandelsverschiffung zurück, die durch eine schwächelnde Einzelhandelsnachfrage und hohe Bestände im Händlerkanal verursacht wurde. Trotz der Herausforderungen bleibt Malibu Boats darauf fokussiert, kurzzeitige Gegenwinde zu navigieren und sich auf zukünftiges Wachstum vorzubereiten.
- Positive cash flow generation in Q4
- Debt paid down completely
- Cash returned to shareholders
- Progress made in normalizing inventory levels
- Dealer network upgraded
- Net sales decreased 57.4% in Q4 and 40.3% for the full year
- Unit volume fell 59.0% in Q4 and 45.4% for the full year
- Net loss of $19.6 million in Q4, increased 8.6% year-over-year
- Full-year net loss of $56.4 million, a 152.3% decrease from previous year's profit
- Adjusted EBITDA decreased 104.5% to -$4.1 million in Q4
- Gross profit margin declined 1,960 basis points to 7.9% in Q4
- Increased promotional costs across all segments
- Elevated dealer channel inventory levels
Insights
Malibu Boats' Q4 FY2024 results paint a challenging picture for the recreational boating industry. Net sales plummeted
The gross profit margin contracted sharply from
Looking ahead, management's guidance for FY2025 of low single-digit net sales growth and Adjusted EBITDA margin of
The recreational boating market is facing significant headwinds, as evidenced by Malibu Boats' results. The
Interestingly, the Saltwater Fishing segment showed some resilience, with net sales per unit increasing
The company's efforts to normalize inventory levels through reduced wholesale shipments are necessary but painful in the short term. This strategy, combined with increased promotional activities, suggests a market reset that could extend into FY2025. Investors should watch for signs of stabilization in retail demand and inventory levels as indicators of a potential market recovery.
Malibu Boats' results reflect a broader industry downturn in the recreational boating sector. The
The company's strategy to address elevated channel inventory through reduced wholesale shipments is prudent but comes at a cost to short-term financial performance. The increase in promotional costs and dealer flooring program expenses suggests a highly competitive environment where manufacturers are vying for consumer demand.
The resilience of the Saltwater Fishing segment, with its higher net sales per unit, could be a bright spot. This may indicate a shift towards higher-end, more versatile boats among committed boating enthusiasts. However, the overall market contraction remains the dominant force shaping the industry landscape in the near term.
LOUDON, Tenn., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Malibu Boats, Inc. (Nasdaq: MBUU) today announced its financial results for the fourth quarter and fiscal year ended June 30, 2024.
Fourth Quarter Fiscal 2024 Highlights Compared to Fourth Quarter Fiscal 2023
- Net sales decreased
57.4% to$158.7 million - Unit volume decreased
59.0% to 1,045 units - Gross profit decreased
87.8% to$12.5 million - General and administrative expenses decreased to
$21.6 million - Net loss increased
8.6% to a net loss of$19.6 million - Adjusted EBITDA decreased
104.5% to$(4.1) million - Net loss available to Class A Common Stock per share (diluted) increased
9.3% to a net loss of$0.94 per share - Adjusted fully distributed net income per share decreased
113.1% to$(0.39) per share on a fully distributed weighted average share count of 21.0 million shares of Class A Common Stock
Fiscal Year 2024 Highlights Compared to Fiscal Year 2023
- Net sales decreased
40.3% to$829.0 million - Unit volume decreased
45.4% to 5,385 units - Gross profit decreased
58.1% to$147.1 million - General and administrative expenses decreased to
$76.3 million - Net income decreased
152.3% to a net loss of$56.4 million - Adjusted EBITDA decreased
71.0% to$82.2 million - Net income available to Class A Common Stock per share (diluted) decreased
154.2% to net loss of$2.74 per share - Adjusted fully distributed net income per share decreased
79.1% to$1.92 on a fully distributed weighted average share count of 21.1 million shares of Class A Common Stock
“As the new CEO of Malibu Boats, I am committed to our goal of navigating the near-term headwinds while enhancing our roadmap for strategic growth. I am excited about the opportunity to continue our presence as the premier manufacturer of recreational powerboats. Our focus on developing premium products for all our brands remains unwavering as we introduce our new Model Year 2025 lineup,” commented Steve Menneto, Chief Executive Officer of Malibu Boats, Inc. “The deep-rooted history of innovation across our premium brands and feature-rich product portfolio, along with our steadfast commitment to operational excellence, deeply resonates with me. I am excited by the tremendous opportunity to further our mission and drive value to our employees, customers, and shareholders. I look forward to working closely with the entire Malibu Boats family as we demonstrate our resilience through current market headwinds while leveraging our strengths to accelerate our long runway for growth.”
“Despite a softened retail demand environment, we are pleased with our execution as we closed out the fiscal fourth quarter,” commented Bruce Beckman, Chief Financial Officer of Malibu Boats, Inc. “We generated positive cash flow, paid down our remaining debt and returned cash to shareholders. We also made significant progress returning inventory to more normalized levels while upgrading our dealer network. Looking ahead to the next fiscal year, while we expect continued market challenges in the near term, we remain optimistic about the business's potential in a more normalized market. We remain well-positioned to execute on our foundational strengths, navigating the cycle with our flexible cost structure and positioning ourselves to expand our market share and drive profitable growth for our shareholders.”
Results of Operations for the Fourth Quarter and Fiscal Year 2024 (Unaudited)
| Three Months Ended June 30, | Fiscal Year Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In thousands, except unit and per unit data) | ||||||||||||||||
| Net Sales | $ | 158,712 | $ | 372,303 | $ | 829,035 | $ | 1,388,365 | ||||||||
| Gross Profit | $ | 12,493 | $ | 102,462 | $ | 147,095 | $ | 351,295 | ||||||||
| Gross Profit Margin | 7.9 | % | 27.5 | % | 17.7 | % | 25.3 | % | ||||||||
| Net (Loss) Income | $ | (19,598 | ) | $ | (18,043 | ) | $ | (56,443 | ) | $ | 107,910 | |||||
| Net (Loss) Income Margin | (12.3 | )% | (4.9 | )% | (6.8 | )% | 7.8 | % | ||||||||
| Adjusted EBITDA | $ | (4,090 | ) | $ | 90,099 | $ | 82,237 | $ | 284,036 | |||||||
| Adjusted EBITDA Margin | (2.6 | )% | 24.2 | % | 9.9 | % | 20.5 | % | ||||||||
Comparison of the Fourth Quarter Ended June 30, 2024 to the Fourth Quarter Ended June 30, 2023
Net sales for the three months ended June 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 June 30, 2024 decreased
Gross profit for the three months ended June 30, 2024 decreased
Selling and marketing expenses for the three months ended June 30, 2024 decreased
Operating loss for the three months ended June 30, 2024 increased to
Comparison of the Fiscal Year Ended June 30, 2024 to the Fiscal Year Ended June 30, 2023
Net sales for fiscal year 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 fiscal year 2024 decreased
Gross profit for fiscal year 2024 decreased
Selling and marketing expense for fiscal year 2024 decreased
Operating (loss) income for fiscal year 2024 decreased to a 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 acquisition and integration related expenses, costs related to the Company’s vertical integration initiatives and litigation expenses 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 fourth quarter and fiscal year 2024 results on Thursday, August 29, 2024, at 8:30 a.m. Eastern Time. Investors and analysts can participate on the conference call by dialing (833) 630-1956 or (412) 317-1837 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 http://investors.malibuboats.com. 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 (Loss) Income and Adjusted Fully Distributed Net (Loss) 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 goodwill and other intangible asset impairment expense, abandonment of construction in process, litigation settlements, certain professional fees, non-cash compensation expense and adjustments to our tax receivable agreement liability. 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 (Loss) Income as net (loss) income attributable to Malibu Boats, Inc. (i) excluding income (benefit) 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 (benefit) expense on fully distributed net (loss) income before income taxes at our estimated effective income tax rate. Adjusted Fully Distributed Net (Loss) 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 (Loss) 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 (Loss) 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 (Loss) Income is susceptible to varying calculations, the Adjusted Fully Distributed Net (Loss) 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 (Loss) 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 optimism for the Company's potential in a more normalized market; our goal of navigating the near-term headwinds while enhancing our roadmap for strategic growth; and our guidance for fiscal year 2025 net sales and Adjusted EBITDA margin.
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, 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 and our ability to transition to a new Chief Executive Officer; 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 rising 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; and 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 June 30, | Fiscal Year Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 158,712 | $ | 372,303 | $ | 829,035 | $ | 1,388,365 | |||||||
| Cost of sales | 146,219 | 269,841 | 681,940 | 1,037,070 | |||||||||||
| Gross profit | 12,493 | 102,462 | 147,095 | 351,295 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling and marketing | 4,870 | 5,449 | 22,784 | 24,009 | |||||||||||
| General and administrative | 21,570 | 117,962 | 76,323 | 175,694 | |||||||||||
| Goodwill and other intangible asset impairment | — | — | 88,389 | — | |||||||||||
| Abandonment of construction in process | 8,735 | — | 8,735 | — | |||||||||||
| Amortization | 1,697 | 1,697 | 6,811 | 6,808 | |||||||||||
| Operating (loss) income | (24,379 | ) | (22,646 | ) | (55,947 | ) | 144,784 | ||||||||
| Other expense (income), net: | |||||||||||||||
| Other expense (income), net | 29 | 178 | (4 | ) | 331 | ||||||||||
| Interest (income) expense | (9 | ) | 118 | 1,842 | 2,962 | ||||||||||
| Other expense, net | 20 | 296 | 1,838 | 3,293 | |||||||||||
| (Loss) income before (benefit) provision for income taxes | (24,399 | ) | (22,942 | ) | (57,785 | ) | 141,491 | ||||||||
| (Benefit) provision for income taxes | (4,801 | ) | (4,899 | ) | (1,342 | ) | 33,581 | ||||||||
| Net (loss) income | (19,598 | ) | (18,043 | ) | (56,443 | ) | 107,910 | ||||||||
| Net (loss) income attributable to non-controlling interest | (377 | ) | (623 | ) | (531 | ) | 3,397 | ||||||||
| Net (loss) income attributable to Malibu Boats, Inc. | $ | (19,221 | ) | $ | (17,420 | ) | $ | (55,912 | ) | $ | 104,513 | ||||
| Comprehensive (loss) income: | |||||||||||||||
| Net (loss) income | $ | (19,598 | ) | $ | (18,043 | ) | $ | (56,443 | ) | $ | 107,910 | ||||
| Other comprehensive income (loss): | |||||||||||||||
| Change in cumulative translation adjustment | 582 | (213 | ) | 142 | (833 | ) | |||||||||
| Other comprehensive income (loss) | 582 | (213 | ) | 142 | (833 | ) | |||||||||
| Comprehensive (loss) income | (19,016 | ) | (18,256 | ) | (56,301 | ) | 107,077 | ||||||||
| Less: comprehensive (loss) income attributable to non-controlling interest | (366 | ) | (630 | ) | (516 | ) | 3,371 | ||||||||
| Comprehensive (loss) income attributable to Malibu Boats, Inc., net of tax | $ | (18,650 | ) | $ | (17,626 | ) | $ | (55,785 | ) | $ | 103,706 | ||||
| Weighted average shares outstanding used in computing net (loss) income per share: | |||||||||||||||
| Basic | 20,395,625 | 20,611,175 | 20,439,449 | 20,501,844 | |||||||||||
| Diluted | 20,395,625 | 20,611,175 | 20,439,449 | 20,641,173 | |||||||||||
| Net (loss) income available to Class A Common Stock per share: | |||||||||||||||
| Basic | $ | (0.94 | ) | $ | (0.86 | ) | $ | (2.74 | ) | $ | 5.10 | ||||
| Diluted | $ | (0.94 | ) | $ | (0.86 | ) | $ | (2.74 | ) | $ | 5.06 | ||||
| MALIBU BOATS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share data) | |||||||
| June 30, 2024 | June 30, 2023 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash | $ | 26,945 | $ | 78,937 | |||
| Trade receivables, net | 23,141 | 68,381 | |||||
| Inventories, net | 145,573 | 171,189 | |||||
| Prepaid expenses and other current assets | 6,470 | 7,827 | |||||
| Total current assets | 202,129 | 326,334 | |||||
| Property, plant and equipment, net | 244,601 | 204,792 | |||||
| Goodwill | 51,415 | 100,577 | |||||
| Other intangible assets, net | 175,449 | 221,458 | |||||
| Deferred tax asset | 58,097 | 62,573 | |||||
| Other assets | 7,933 | 10,190 | |||||
| Total assets | $ | 739,624 | $ | 925,924 | |||
| Liabilities | |||||||
| Current liabilities | |||||||
| Accounts payable | 19,152 | 40,402 | |||||
| Accrued expenses | 119,430 | 187,078 | |||||
| Income taxes and distribution payable | 4 | 847 | |||||
| Payable pursuant to tax receivable agreement, current portion | — | 4,111 | |||||
| Total current liabilities | 138,586 | 232,438 | |||||
| Deferred tax liabilities | 17,661 | 28,453 | |||||
| Other liabilities | 8,045 | 9,926 | |||||
| Payable pursuant to tax receivable agreement, less current portion | 40,613 | 39,354 | |||||
| Total liabilities | 204,905 | 310,171 | |||||
| Stockholders' Equity | |||||||
| Class A Common Stock, par value | 200 | 204 | |||||
| Class B Common Stock, par value | — | — | |||||
| Preferred Stock, par value | — | — | |||||
| Additional paid in capital | 64,222 | 86,321 | |||||
| Accumulated other comprehensive loss, net of tax | (4,198 | ) | (4,340 | ) | |||
| Accumulated earnings | 469,785 | 525,697 | |||||
| Total stockholders' equity attributable to Malibu Boats, Inc. | 530,009 | 607,882 | |||||
| Non-controlling interest | 4,710 | 7,871 | |||||
| Total stockholders’ equity | 534,719 | 615,753 | |||||
| Total liabilities and stockholders' equity | $ | 739,624 | $ | 925,924 | |||
MALIBU BOATS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
Reconciliation of Net (Loss) Income to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin (Unaudited):
The following table sets forth a reconciliation of net (loss) income as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated (dollars in thousands):
| Three Months Ended June 30, | Fiscal Year Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (19,598 | ) | $ | (18,043 | ) | $ | (56,443 | ) | $ | 107,910 | ||||
| (Benefit) provision for income taxes | (4,801 | ) | (4,899 | ) | (1,342 | ) | 33,581 | ||||||||
| Interest (income) expense | (9 | ) | 118 | 1,842 | 2,962 | ||||||||||
| Depreciation | 6,967 | 5,765 | 26,178 | 21,912 | |||||||||||
| Amortization | 1,697 | 1,697 | 6,811 | 6,808 | |||||||||||
| Goodwill and other intangible asset impairment 1 | — | — | 88,389 | — | |||||||||||
| Abandonment of construction in process 2 | 8,735 | — | 8,735 | — | |||||||||||
| Litigation settlement 3 | — | 100,000 | — | 100,000 | |||||||||||
| Professional fees 4 | 1,110 | 4,781 | 3,096 | 4,781 | |||||||||||
| Stock-based compensation expense 5 | 1,773 | 492 | 4,935 | 5,894 | |||||||||||
| Adjustments to tax receivable agreement liability 6 | 36 | 188 | 36 | 188 | |||||||||||
| Adjusted EBITDA | $ | (4,090 | ) | $ | 90,099 | $ | 82,237 | $ | 284,036 | ||||||
| Net Sales | $ | 158,712 | $ | 372,303 | $ | 829,035 | $ | 1,388,365 | |||||||
| Net (Loss) Income Margin 7 | (12.3 | )% | (4.9 | )% | (6.8 | )% | 7.8 | % | |||||||
| Adjusted EBITDA Margin 7 | (2.6 | )% | 24.2 | % | 9.9 | % | 20.5 | % | |||||||
| (1) | Represents impairment of goodwill and trade names related to our Maverick Boat Group reporting unit in the amounts of | |
| (2) | For the three and twelve months ended June 30, 2024, we recorded a non-cash charge of | |
| (3) | Represents settlement of product liability cases in June 2023 for | |
| (4) | Represents legal and advisory fees related to ongoing litigation related to Batchelder matters for fiscal year 2024 and legal and advisory fees related to product liability cases that were settled for | |
| (5) | 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. | |
| (6) | For fiscal year 2024, we recognized other expense from an adjustment in our tax receivable agreement liability due to an increase in the state tax rate used in computing our future tax obligations and in turn, an increase in the future benefit we expect to pay under our tax receivable agreement with pre-IPO owners. For fiscal year 2023, we recognized other expense from an adjustment in our tax receivable agreement liability mainly derived by future benefits from Tennessee net operating losses at Malibu Boats, Inc. | |
| (7) | 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 June 30, | Fiscal Year Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Reconciliation of numerator 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: | |||||||||||||||
| Net (loss) income attributable to Malibu Boats, Inc. | $ | (19,221 | ) | $ | (17,420 | ) | $ | (55,912 | ) | $ | 104,513 | ||||
| (Benefit) provision for income taxes | (4,801 | ) | (4,899 | ) | (1,342 | ) | 33,581 | ||||||||
| Litigation settlement 1 | — | 100,000 | — | 100,000 | |||||||||||
| Professional fees 2 | 1,110 | 4,781 | 3,096 | 4,781 | |||||||||||
| Acquisition and integration related expenses 3 | 1,659 | 1,659 | 6,672 | 6,654 | |||||||||||
| Stock-based compensation expense 4 | 1,773 | 492 | 4,935 | 5,894 | |||||||||||
| Goodwill and other intangible asset impairment 5 | — | — | 88,389 | — | |||||||||||
| Abandonment of construction in process 6 | 8,735 | — | 8,735 | — | |||||||||||
| Adjustments to tax receivable agreement liability 7 | 36 | 188 | 36 | 188 | |||||||||||
| Net (loss) income attributable to non-controlling interest 7 | (377 | ) | (623 | ) | (531 | ) | 3,397 | ||||||||
| Fully distributed net (loss) income before income taxes | (11,086 | ) | 84,178 | 54,078 | 259,008 | ||||||||||
| Income tax (benefit) expense on fully distributed income before income taxes 9 | (2,716 | ) | 20,455 | 13,249 | 62,939 | ||||||||||
| Adjusted Fully Distributed Net (Loss) Income | $ | (8,370 | ) | $ | 63,723 | $ | 40,829 | $ | 196,069 | ||||||
| Three Months Ended June 30, | Fiscal Year Ended June 30, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| Reconciliation of 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: | ||||||||
| Weighted average shares outstanding of Class A Common Stock used for basic net income per share: | 20,395,625 | 20,611,175 | 20,439,449 | 20,501,844 | ||||
| Adjustments to weighted average shares of Class A Common Stock: | ||||||||
| Weighted-average LLC units held by non-controlling unit holders 10 | 321,419 | 455,919 | 395,528 | 543,909 | ||||
| Weighted-average unvested restricted stock awards issued to management 11 | 287,221 | 258,655 | 266,557 | 272,116 | ||||
| Adjusted weighted average shares of Class A Common Stock outstanding used in computing Adjusted Fully Distributed Net (Loss) Income per Share of Class A Common Stock: | 21,004,265 | 21,325,749 | 21,101,534 | 21,317,869 | ||||
The following table shows the reconciliation of 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:
| Three Months Ended June 30, | Fiscal Year Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net (loss) income available to Class A Common Stock per share | $ | (0.94 | ) | $ | (0.86 | ) | $ | (2.74 | ) | $ | 5.10 | |||||
| Impact of adjustments: | ||||||||||||||||
| (Benefit) provision for income taxes | (0.24 | ) | (0.24 | ) | (0.07 | ) | 1.64 | |||||||||
| Litigation settlement 1 | — | 4.85 | — | 4.88 | ||||||||||||
| Professional fees 2 | 0.05 | 0.23 | 0.15 | 0.23 | ||||||||||||
| Acquisition and integration related expenses 3 | 0.08 | 0.08 | 0.33 | 0.32 | ||||||||||||
| Stock-based compensation expense 4 | 0.09 | 0.02 | 0.24 | 0.29 | ||||||||||||
| Goodwill and other intangible asset impairment 5 | — | — | 4.32 | — | ||||||||||||
| Abandonment of construction in process 6 | 0.43 | — | 0.43 | — | ||||||||||||
| Adjustment to tax receivable agreement liability 7 | — | 0.01 | — | 0.01 | ||||||||||||
| Net (loss) income attributable to non-controlling interest 8 | (0.02 | ) | (0.03 | ) | (0.03 | ) | 0.17 | |||||||||
| Fully distributed net (loss) income per share before income taxes | (0.55 | ) | 4.06 | 2.63 | 12.64 | |||||||||||
| Impact of income tax benefit (expense) on fully distributed income before income taxes 9 | 0.13 | (0.99 | ) | (0.65 | ) | (3.07 | ) | |||||||||
| Impact of decreased share count 12 | 0.03 | (0.09 | ) | (0.06 | ) | (0.38 | ) | |||||||||
| Adjusted Fully Distributed Net (Loss) Income per Share of Class A Common Stock | $ | (0.39 | ) | $ | 2.98 | $ | 1.92 | $ | 9.19 | |||||||
| (1) | Represents settlement of product liability cases in June 2023 for | |
| (2) | Represents legal and advisory fees related to ongoing litigation related to Batchelder matters for fiscal year 2024 and legal and advisory fees related to product liability cases that were settled for | |
| (3) | For fiscal years 2024, 2023 and 2022, represents amortization of intangibles acquired in connection with the acquisition of Maverick Boat Group, Pursuit and Cobalt. | |
| (4) | 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. | |
| (5) | Represents impairment of goodwill and trade names related to our Maverick Boat Group reporting unit in the amounts of | |
| (6) | For the three and twelve months ended June 30, 2024, we recorded a non-cash charge of | |
| (7) | For fiscal year 2024, we recognized other expense from an adjustment in our tax receivable agreement liability due to an increase in the state tax rate used in computing our future tax obligations and in turn, an increase in the future benefit we expect to pay under our tax receivable agreement with pre-IPO owners. For fiscal year 2023, we recognized other expense from an adjustment in our tax receivable agreement liability mainly derived by future benefits from Tennessee net operating losses at Malibu Boats, Inc. | |
| (8) | 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. | |
| (9) | Reflects income tax expense at an estimated normalized annual effective income tax rate of | |
| (10) | 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. | |
| (11) | 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. | |
| (12) | 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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