Malibu reports results for Q2 FY 2019
Malibu Boats, Inc. (Nasdaq: MBUU) announced its financial results for the second quarter ended Dec. 31, 2018.
Highlights for Q2 of fiscal year 2019 include:
- Net sales increased 45 percent to $165.8 million compared to the second quarter of fiscal year 2018.
- Unit volume increased 18.2 percent to 1,760 boats compared to the second quarter of fiscal year 2018.
- Net sales per unit increased 22.6 percent to $94,200 per unit compared to the second quarter of fiscal year 2018.
- Gross profit increased 39.2 percent to $38.3 million compared to the second quarter of fiscal year 2018.
- Net income increased 368.6 percent to $15.0 million, or $0.68 per share compared to the second quarter of fiscal year 2018.
- Adjusted EBITDA increased 42.5 percent to $29.4 million compared to the second quarter of fiscal year 2018.
- Adjusted fully distributed net income increased 64.5 percent to $18.8 million compared to the second quarter of fiscal year 2018.
- Adjusted fully distributed net income per share increased 62.3 percent to $0.86 on a fully distributed weighted average share count of 21.8 million shares of Class A Common Stock as compared to the second quarter of fiscal year 2018.
- Completed acquisition of assets of the Pursuit Boats division (“Pursuit”) of S2 Yachts, Inc. for $100.1 million on October 15, 2018.
“We saw ongoing momentum in our business during the second fiscal quarter of 2019, as demand for our product at Malibu, Cobalt and Pursuit, which we closed on October 15th, continues to be very strong. Dealers’ orders remain robust, which has created a strong order book across all of our brands and channel inventories are at near optimal levels. In the first half of fiscal 2019, we introduced a number of new boats and features, all of which have been incredibly well-received by customers and dealers alike. In addition, our operational excellence initiatives are bearing fruit as we are seeing positive results in gross margins in our comparable year- over-year business where we expanded margins meaningfully,” said Jack Springer, Chief Executive Officer of Malibu Boats, Inc.
Net sales for the three months ended Dec. 31, 2018 increased $51.4 million, or 45 percent, to $165.8 million as compared to the three months ended Dec. 31, 2017. Unit volume for the three months ended Dec. 31, 2018, increased 271 units, or 18.2 percent, to 1,760 units as compared to the same time last year.
Net sales attributable to our Malibu U.S. segment increased $14.6 million, or 21.5 percent, to $82.7 million for the three months ended Dec. 31, 2018, compared to the three months ended Dec. 31, 2017. Unit volumes attributable to our Malibu U.S. segment increased 112 units for the three months ended Dec. 31, 2018, compared to the three months ended Dec. 31, 2017. The increase in net sales and unit volume for Malibu U.S. was driven primarily by strong demand for new models and optional features.
Net sales from our Cobalt segment increased $6.5 million, or 16.5 percent, to $45.9 million for the three months ended Dec. 31, 2018, compared to the three months ended December 31, 2017. Unit volumes attributable to Cobalt increased 35 units for the three months ended December 31, 2018 compared to the three months ended
Dec. 31, 2017. The increase in Cobalt net sales and unit volume was driven primarily by strong demand for our R series models.
Since Malibu’s acquisition of Pursuit on Oct. 15, 2018, net sales and unit volume contributed by Pursuit were $29.9 million and 111 units, respectively, for the three months ended Dec. 31, 2018.
Net sales from our Malibu Australia segment increased $0.4 million, or 5.4 percent, to $7.3 million for the three months ended Dec. 31, 2018, compared to the three months ended Dec.31, 2017.
Overall consolidated net sales per unit increased 22.6 percent to $94,200 for the three months ended Dec. 31, 2018, compared to the three months ended Dec. 31, 2017.
“Our second quarter results reinforce our ability to deliver consistent profitable growth, while leveraging our world-class brands. As we look forward, we remain optimistic about the outlook for the marine industry and broader economy. We are laser-focused on continued execution and even better performance from Malibu, Cobalt and Pursuit, and believe we are well-positioned to deliver increasing value for our stakeholders,” Springer said.
