Malibu Announces Q4 and Fiscal Year Results


(note: all amounts in US $)

Malibu Boats, Inc., headquartered in Loudon, Tennessee, announced its financial results for the fourth quarter and fiscal year ended June 30, 2016. The report mentions that although net sales are up, ‘currency-driven challenges’ have affected demand for the brand in Canada more recently.

“Fourth quarter results were solid with both our Malibu and Axis brands performing well,” says Jack Springer, Malibu’s Chief Executive Officer. “Malibu has continued its series of firsts with our fourth quarter being the best fourth quarter in company history based on net sales and unit volume. We have again exceeded our internal goals and projections for the year and remain pleased with the overall trends in the business. Demand for our product continues to be strong in the US and Australia. Currency headwinds persist in other parts of the world, diminishing demand in Canada, Europe, South America and other regions. Despite the currency headwinds, net sales for the quarter increased almost 10 percent.

“Our new product for fiscal year 2016 has performed exceptionally well, driving revenue and market share gains,” continues Springer. “Sales of the 25 LSV, M235, 20 VTX and A20 have all been strong and generated the demand we expected. The 23 LSV remains the best-selling boat in our market by a large margin and the 22 VLX remains in strong demand. Our Axis model line-up continues to grow and propel market share gains. Finishing fiscal year 2016 and entering into fiscal year 2017, channel inventories with our dealers are at near optimum levels and our prescient decision to scale back production in the fourth quarter of fiscal year 2016 has served us well.”

The company released the following highlights from its fourth quarter of Fiscal Year 2016:
• Net sales increased 9.8 percent to $66.7 million compared to the fourth quarter of fiscal year 2015.
• Unit volume increased 2.0 percent to 922 boats compared to the fourth quarter of fiscal year 2015.
• Net sales per unit increased 7.7 percent to $72,321 compared to the fourth quarter of fiscal year 2015, and net sales per unit in the U.S. increased 6.3 percent over the same period in fiscal year 2015.
• Gross profit increased 9.5 percent to $17.8 million compared to the fourth quarter of fiscal year 2015.
• Net income decreased 46.0 percent to $4.1 million, or $0.21 per share compared to the fourth quarter of fiscal year 2015.
• Adjusted EBITDA increased 13.8 percent to $13.5 million compared to the fourth quarter of fiscal year 2015.
• Adjusted fully distributed net income increased 12.9 percent to $7.3 million compared to the fourth quarter of fiscal year 2015.
• Adjusted fully distributed net income per share increased 18.8 percent to $0.38 per share on a fully distributed weighted average share count of 19.3 million shares of Class A Common Stock as compared to the fourth quarter of fiscal year 2015.

Highlights for Fiscal Year 2016
• Net sales increased 10.6 percent to $253.0 million compared to fiscal year 2015.
• Unit volume increased 4.8 percent to 3,569 boats compared to fiscal year 2015.
• Net sales per unit increased 5.5 percent to $70,878 compared to fiscal year 2015, and net sales per unit in the US increased 6.8 percent over the same period in fiscal year 2015.
• Gross profit increased 10.6 percent to $66.8 million compared to fiscal year 2015.
• Net income decreased 12.5 percent to $20.3 million, or $1.01 per share, compared to fiscal year 2015.
• Adjusted EBITDA increased 10.5 percent to $48.2 million compared to fiscal year 2015.
• Adjusted fully distributed net income increased 5.0 percent to $25.6 million compared to fiscal year 2015.
• Adjusted fully distributed net income per share increased 18.9 percent to $1.32 per share on a fully distributed weighted average share count of 19.4 million shares of Class A Common Stock as compared to fiscal year 2015.

Springer believes Malibu’s newly launch 2017 product will be positively received by dealers and consumers. “Our new 21 VLX, which is nationally advertised at US $79,995, is a ground-breaking new product,” he claims. “It is a 21 foot Wakesetter that is well appointed with features at a price that we believe no one else can match in our space. We believe this will invigorate sales from new buyers and customers who have been on the sidelines as boat prices have risen. Less than a year ago, we debuted the ultra-premium M235, which blends luxury and performance and is loaded with every technologically innovative feature we offer, and now we have introduced a new model in the 21 VLX that will appeal to a much larger customer demographic.”

For an in-depth report on Malibu’s fiscal Q4 results, click here.

Equity analyst, Quinn Foley, shared a skeptical outlook on Malibu Boat’s stock performance, which can be found here.

Malibu Boats, established in 1982, offers two brands of performance sport boats, Malibu and Axis Wake Research (Axis).