Malibu Boats releases Q3 results
Malibu Boats, Inc. (Nasdaq: MBUU) has announced its financial results for the third quarter ended March 31, 2023.
Third Quarter Fiscal 2023 Highlights Compared to Third Quarter Fiscal 2022:
- Net sales increased 9.0% to $375.1 million
- Unit volume increased 2.9% to 2,637 units
- Gross profit increased 1.5% to $98.6 million
- Net income decreased 2.5% to $53.5 million
- Adjusted EBITDA decreased 0.6% to $79.3 million
- Net income available to Class A Common Stock per share (diluted) remained flat at $2.51 per share
- Adjusted fully distributed net income per share decreased 0.8% to $2.59 per share on a fully distributed weighted-average share count of 21.3 million shares of Class A Common Stock
Jack Spring, CEO of Malibu Boats commented:
We delivered another solid quarter with sales growing 9.0% for another record quarter and net income and adjusted EBITDA coming in as expected. Our operational execution has been, and will continue to be, the hallmark of our success. The Malibu team demonstrated their resilience as we navigated through a, at times, choppy fiscal third quarter. We have made great strides in normalizing our channel inventory, particularly within our Malibu and Cobalt segments, allowing our dealers to be poised to satisfy customer demand as we enter the prime selling season. Within our Saltwater Fishing segment, demand throughout the boat show season was unwavering and at peak levels for the larger shows, and we feel particularly well positioned in this growing segment.
Our commitment to growth and vertical integration remains our top priority as we continue to lead the way as one of the premier recreational boats manufacturers. Regardless of the environment, we are strategically advancing our leadership in the market to expand our manufacturing capacity, grow our distribution network, and bring key capabilities in-house, from engines to tooling. I am confident in our team’s ability to execute on our next growth phase and look forward to delivering value for our stakeholders as we close out another successful fiscal year.
Net sales for the three months ended March 31, 2023 increased $30.8 million, or 9.0%, to $375.1 million as compared to the three months ended March 31, 2022. The increase in net sales was driven primarily by increased unit volumes in Saltwater Fishing and Cobalt segments. Unit volume for the three months ended March 31, 2023, increased 75 units, or 2.9%, to 2,637 units as compared to the three months ended March 31, 2022.
Net sales attributable to Malibu segment decreased $6.3 million, or 3.5%, to $172.6 million for the three months ended March 31, 2023, compared to the three months ended March 31, 2022. Unit volumes attributable to our Malibu segment decreased 119 units for the three months ended March 31, 2023, compared to the three months ended March 31, 2022.
Net sales attributable to Saltwater Fishing segment increased $29.0 million, or 31.0%, to $122.7 million, for the three months ended March 31, 2023, compared to the three months ended March 31, 2022. Unit volume increased 167 units for the three months ended March 31, 2023 compared to the three months ended March 31, 2022.
Net sales attributable to Cobalt segment increased $8.1 million, or 11.3%, to $79.9 million for the three months ended March 31, 2023, compared to the three months ended March 31, 2022. Unit volumes attributable to Cobalt increased 27 units for the three months ended March 31, 2023 compared to the three months ended March 31, 2022.
Gross profit for the three months ended March 31, 2023 increased $1.5 million, or 1.5%, to $98.6 million compared to the three months ended March 31, 2022. The increase in gross profit was driven primarily by higher sales revenue partially offset by the increased cost of sales for the reasons noted above. Gross margin for the three months ended March 31, 2023 decreased 190 basis points from 28.2% to 26.3% driven primarily by increased mix of the Saltwater Fishing segment and increased dealer flooring program costs.
