Malibu Boats, Inc., the designer, manufacturer and marketer of the Malibu, Axis, Cobalt, Pursuit, Cobia, Pathfinder, Maverick and Hewes boat brands, reported net sales for the fourth quarter ended June 30 increased 5.4 percent year-over-year (YoY) to $372.3 million.

The increase in net sales for the quarter was reportedly driven primarily by increased unit volumes in the Saltwater Fishing segment and a favorable model mix across all segments. These gains were said to be partially offset by lower unit volumes in the Malibu and Cobalt segments and by increased dealer flooring program costs in the Malibu segment resulting from higher interest rates and increased inventory levels.

Unit volume for the period decreased 1.8 percent, to 2,550 units compared to the year-ago period. Unit volume decreased primarily due to reduced wholesale restocking demand at the Malibu and Cobalt segments as channel inventory normalized to pre-COVID levels combined with lower retail activity, partially offset by strong wholesale restocking demand in the Saltwater Fishing segment.

Malibu segment net sales decreased 9.4 percent YoY to $160.3 million. Unit volumes attributable to the Malibu segment decreased 15.2 percent. The decrease in net sales was said to be driven by a decrease in units and increased dealer flooring program costs, partially offset by a favorable model mix.

Saltwater Fishing segment net sales increased 33.6 percent YoY to $128.7 million and unit volumes increased 37.0 percent for the period. The increase in net sales was said to be driven by increased units, inflation-driven year-over-year price increases and a favorable model mix.

Cobalt segment net sales increased 4.3 percent YoY to $83.3 million in fiscal Q4. Unit volumes attributable to Cobalt decreased 2.9 percent period. The increase in net sales was said to be driven by a favorable model mix and partially offset by decreased unit volume.

Overall consolidated net sales per unit increased 7.3 percent YoY to $146,001 per unit for the three months ended June 30. Net sales per unit for the Malibu segment increased 6.8 percent to $127,966 per unit, and net sales per unit for the Saltwater Fishing segment decreased 2.5 percent to $177,241, driven by an unfavorable model mix, partially offset by inflation-driven year-over-year price increases, and net sales per unit for the Cobalt segment increased 7.4 percent to $145,856 per unit for the fiscal fourth quarter, driven a favorable model mix.

Gross margin for the fiscal fourth quarter increased 210 basis points from 25.4 percent of sales in the year-ago period to 27.5 percent in Q4 this year, driven by overall better performance in the Saltwater Fishing segment.

Selling and marketing expenses 1.8 percent YoY to $5.4 million, driven primarily by an increase in travel and promotional events for the three months ended June 30. As a percentage of sales, selling and marketing expenses remained flat at 1.5 percent of sales.

Malibu posted an operating loss of $22.6 million in the fourth quarter compared to operating income of $65.4 million in the prior year period. The company posted a net loss of $18.0 million in fiscal Q4 versus net income of $49.7 million in fiscal Q4 last year.

Adjusted EBITDA increased 21.9 percent to $90.1 million from $73.9 million in the year-ago period.

Fiscal Full-Year Year 2023 Results:

  • Net sales increased 14.3 percent to $1.39 billion
  • Unit volume increased 6.6 percent to 9,863 units
  • Gross profit increased 13.3 percent to $351.3 million
  • General and administrative expenses increased to $175.7 million primarily due to a settlement of a litigation matter for $100.0 million, which the company expects will be tax deductible for federal and state income tax purposes
  • Net income decreased 34.0 percent to $107.9 million
  • Adjusted EBITDA increased 15.2 percent to $284.0 million
  • Net income available to Class A Common Stock per share (diluted) decreased 32.6 percent to $5.06 per share
  • Adjusted fully distributed net income per share increased 16.2 percent to $9.19 a share

Fiscal 2024 Guidance
For the full fiscal year 2024, Malibu anticipates a net sales decline in the mid- to high-teens year-over-year and an Adjusted EBITDA margin down 300 to 400 basis points year-over-year.

Photo courtesy Malibu Boats