Malibu Boats, Inc. announced its financial results for the second quarter ended Dec. 31, 2019.
Highlights for the second quarter of fiscal year 2020 included a net sales increase of 8.6% to $180.1 million compared to the second quarter of fiscal year 2019. Unit volume increased 2.5% to 1,804 boats compared to the same period last year. Net sales per unit increased 6% to $99,840 per unit compared to the second quarter of fiscal year 2019.
In addition to the highlights above, gross profit increased 4.1% to $39.9 million and net income increased 17.3% to $17.6 million, or $0.81 per share compared to the second quarter of fiscal year 2019.
“Our momentum extended into the second fiscal quarter of 2020. We delivered strong financial and operational results driven by robust growth across our brands, and at the same time, we very successfully overcame the headwinds as a result of the UAW strike and the impact it had on our engine supply,” Malibu Boats Inc. CEO Jack Springer said. “In addition, the Malibu team’s dedication to operational excellence, coupled with our commitment to enhancing our best-in-class vertical integration initiatives, supported operating margin expansion during the quarter. Initial feedback from January boat shows supports our belief of continued healthy market conditions and underscored the strength of our model year 2020 products.”
Net sales attributable to the company’s Malibu segment increased $7.3 million, or 8.1%, to $97.3 million for the three months ended Dec. 31, 2019, compared to the three months ended Dec. 31, 2018, which Springer said was driven primarily by higher sales of new, more expensive models and optional features, which led to a higher net sales per unit for Malibu and Axis models partially offset by the slight decrease in overall units sold. Net sales was also said to have been impacted by year-over-year price increases on all of our Malibu and Axis models.
Net sales from the company’s Cobalt segment increased $3.1 million, or 6.9%, to $49.0 million for the quarter. Springer said the increase in Cobalt net sales was driven by an increase in units sold and year-over-year price increases on Cobalt models.
Net sales from the company’s Pursuit segment increased $3.9 million, or 12.9%, to $33.8 million, for the quarter, which Springer said was driven by an increase in units sold and year-over-year price increases, offset by the lower average selling price due to the mix of models sold.
“Our superior product innovation and cadence of new model introductions has propelled further market share gains across our brands during 2019. In addition, our initiatives to expand production capacity for Cobalt and Pursuit are on track, and once completed, will position us to further extend our leadership positions in these important markets. As we look to the balance of fiscal year 2020, we remain confident that we can maintain our strong track record of consistent profitable growth and increasing value for our shareholders.”