Malibu Boats announces record fourth quarter, fiscal 2018 results

Malibu Boats, Inc. today announced its financial results for the fourth quarter and fiscal year ended June 30, 2018.

“Our momentum during fiscal year 2018 extended into the fourth quarter, exceeding our expectations, driven by a robust retail demand environment, Cobalt’s increasing contributions, and strong operational execution,” said Jack Springer, chief executive officer of Malibu Boats.

All of the boat builder’s brands performed well, and model year 2018 products continued to be met with exceptional reception by Malibu’s customers, Springer said.

“While the global trade environment presents a number of uncertainties, our international business is a relatively small portion of our overall performance and we are confident that we have the strategies in place to mitigate its impact,” Springer added.

In August, Malibu announced the company had entered into an agreement to purchase Pursuit Boats from S2 Yachts, subject to certain closing conditions. Springer said Malibu expects to close the acquisition in the fourth calendar quarter of 2018.

“Pursuit will be an incredible addition to the Malibu family, as it maintains a strong reputation for luxurious appointments, innovation, and premium quality, and will be highly complementary to our business,” Springer said. “After closing the transaction, our strategy will be to increase throughput to meet growing demand, apply our operational excellence expertise to enhance margin and continue our track record of innovation and product development.”

Malibu’s fiscal year 2018 delivered strong growth and a clear, strategic path to continued growth and financial performance, Springer said. “Looking forward, we are optimistic about the strength of the economy and believe we are well-positioned to continue to perform well,” he added.

Fourth Quarter Results

Net sales for the three months ended June 30, 2018 increased $63.6 million, or 84.6 percent, to $138.7 million as compared to the three months ended June 30, 2017. Unit volume for the three months ended June 30, 2018, increased 704 units, or 70.1 percent, to 1,708 units as compared to the three months ended June 30, 2017.

The increase in net sales and unit volumes was driven primarily by the company’s acquisition of Cobalt Boats, LLC (“Cobalt”) in July 2017. Net sales and unit volumes attributable to Cobalt were $54.1 million and 638 units, respectively, for the three months ended June 30, 2018.

Net sales attributable to the Malibu U.S. segment increased $9.4 million, or 13.5 percent, to $78.6 million for the three months ended June 30, 2018, compared to the three months ended June 30, 2017.

Unit volumes attributable to the Malibu U.S. segment increased 65 units for the three months ended June 30, 2018, compared to the three months ended June 30, 2017. The increase in net sales and unit volume for the Malibu U.S. segment was driven primarily by continued strong demand for new and larger models such as the Malibu Wakesetter 23 LSV and Axis A24.

Net sales from Malibu Australia segment increased $0.1 million, or 1.6 percent, to $5.9 million for the three months ended June 30, 2018, compared to the three months ended June 30, 2017. Overall net sales per unit increased 8.5 percent to $81,182 per unit for the three months ended June 30, 2018, compared to the three months ended June 30, 2017.

Net sales per unit for the Malibu U.S. segment increased 6 percent to $79,575 per unit for the three months ended June 30, 2018, compared to the three months ended June 30, 2017, driven by mix of larger premium Malibu models which have a higher average selling price per unit as well as strong demand for optional features and year over year price increases.

Net sales per unit for the Cobalt segment was $84,809 per unit for the three months ended June 30, 2018.

Gross profit for the three months ended June 30, 2018 increased $13.5 million, or 67.4 percent, compared to the three months ended June 30, 2017.

The increase in gross profit was due mainly to higher unit volumes attributable to the acquisition of Cobalt.

Gross margin for the three months ended June 30, 2018 decreased 250 basis points from 26.7 percent to 24.2 percent over the same period in the prior fiscal year due to the acquisition of Cobalt.

Fiscal Year Results

Net sales for fiscal year 2018 increased $215.1 million, or 76.3 percent, to $497.0 million, compared to fiscal year 2017. Unit volume for fiscal year 2018 increased 2,477 units, or 64.9 percent, to 6,292 units compared to fiscal year 2017.

The increase in net sales and unit volumes was driven primarily by our acquisition of Cobalt in July 2017. Net sales and unit volumes attributable to Cobalt were $180.3 million and 2,232 units, respectively, for fiscal year 2018. Net sales attributable to our Malibu U.S. segment increased $34.3 million, or 13.2 percent, to $293.2 million for fiscal year 2018 compared to fiscal year 2017.

Unit volumes attributable to the Malibu U.S. segment increased 252 units for fiscal year 2018 compared to fiscal year 2017. The increase in net sales and unit volume for the Malibu U.S. segment was driven primarily by continued strong demand for our new and larger models such as the Malibu Wakesetter 23 LSV and Axis A24.

Net sales from the Malibu Australia segment increased $0.5 million, or 2 percent, to $23.4 million for fiscal year 2018 compared to fiscal year 2017. Overall net sales per unit increased 6.9 percent to $78,990 per unit for fiscal year 2018 compared to fiscal year 2017.

Net sales per unit for the Malibu U.S. segment increased 5.7 percent to $78,052 per unit for fiscal year 2018 compared to fiscal year 2017, driven by mix of new and premium models sold, strong demand for optional features and year over year price increases. Net sales per unit for our Cobalt segment was $80,786 per unit for the fiscal year 2018.

Cost of sales for fiscal year 2018 increased $169.8 million, or 82.1 percent, to $376.7 million compared to fiscal year 2017. The increase in cost of sales was driven primarily by our acquisition of Cobalt in July 2017 and an increase in unit volumes at our Malibu U.S. business.

Gross profit for fiscal year 2018 increased $45.3 million, or 60.4 percent, compared to fiscal year 2017. The increase in gross profit was due mainly to higher unit volumes attributable to the acquisition of Cobalt and the Malibu U.S. business mentioned above.

The company hosted a webcast and conference call to discuss fourth quarter fiscal year 2018 results this morning (Thursday, Sept. 6, 2018) at 8:30 a.m. Eastern Time. A replay of the webcast will also be archived on the company’s website for 12 months.