Malibu announces Q4, fiscal 2019 results

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The Pursuit acquisition drove increases in net sales and unit volumes.

The Pursuit acquisition drove increases in net sales and unit volumes.

Net sales at Malibu Boats Inc. increased 40.5 percent to $194.8 million in the fourth quarter, compared to the fourth quarter of 2018, and unit volume for the quarter increased 284 units, or 16.6 percent, to 1,992 units for the quarter.

The company attributed those increases primarily to its acquisition of Pursuit Boats in October 2018.

"Pursuit and Cobalt, together with our Malibu and Axis brands, have created a well-rounded, premium portfolio that brings to market a lineup of innovative boats that are resonating with customers,” said Malibu Boats CEO Jack Springer in a statement.

Net sales attributable to Malibu’s U.S. segment increased $16.9 million, or 21.4 percent, to $95.4 million during the quarter versus last year, and Malibu’s unit volumes increased 134 units domestically.

The increase in net sales and unit volume for Malibu U.S. was driven primarily by demand for new models and optional features, which led to a higher net sales per unit for Malibu and Axis models, according to the company.

Malibu recently unveiled three new models — the Axis A20, designed to deliver value in an “entry-level small package;” the Malibu 20 VTX, designed for skiing, wakeboarding and wakesurfing; and the more luxury-positioned Malibu Wakesetter 23 MXZ.

Net sales were also impacted by year-over-year price increases on all Malibu and Axis models, the company said.

Net sales from the Cobalt segment increased $2.3 million, or 4.3 percent, to $56.5 million for the quarter, and unit volumes were roughly flat (with a two-unit decrease).

Net sales and unit volume contributed by Pursuit were $36.4 million and 152 units, respectively.

Gross profits increased $14.2 million, or 42.3 percent, compared to the fourth quarter of 2018, due mainly to higher unit volumes from the Pursuit acquisition.

Gross margins increased 30 basis points, from 24.2 percent to 24.5 percent, over the same period in the prior fiscal year, primarily as a result of increased operational efficiency initiatives.

Net sales for fiscal year 2019 increased $187 million, or 37.6 percent, to $684 million, compared to fiscal year 2018. Unit volume for fiscal year 2019 increased 1,070 units, or 17 percent, to 7,362 units, compared to 2018.

The increase in net sales and unit volumes was again driven primarily by the Pursuit acquisition, as well as increased demand for Malibu, Axis and Cobalt brands, coupled with year-over-year price increases.

"Our vertical integration initiatives are also progressing on target, as our Malibu Monsoon engines are now completely integrated into 100 percent of our Malibu and Axis boats and the beginning of fiscal year 2020 saw us unveil our own flooring for all Malibu and Axis boats,” said Springer.

“While certainly not as large of scale as the Malibu Monsoon engine, the profitability profile of our new flooring vertical integration initiative is as strong, or stronger, than our other vertical integration initiatives over the years,” he said. “In addition, we expect to finalize our expansion of Cobalt by the second quarter of fiscal year 2020, and are progressing nicely with the capacity expansion initiative at Pursuit.”

For the year, Malibu’s U.S. segment increased $55.8 million, or 19 percent, to $349 million for fiscal year 2019 compared to fiscal year 2018.

Unit volumes attributable to Malibu U.S. segment increased 456 units for fiscal year 2019 compared to fiscal year 2018. The increase in net sales and unit volume for Malibu U.S. was driven primarily by strong demand for new models and optional features, which led to a higher net sales per unit for Malibu and Axis models. Net sales was also impacted by year-over-year price increases on all of Malibu and Axis models.

Net sales from our Cobalt segment increased $26.2 million, or 14.6 percent, to $206.6 million for fiscal year 2019. Unit volumes attributable to Cobalt increased 177 units, driven primarily by strong demand for the R series models. Net sales was also impacted by year-over-year price increases on all Cobalt models.

Net sales and unit volume contributed by Pursuit were $102.8 million and 406 units, respectively, for fiscal year 2019.

Our overall net sales per unit increased 17.6 percent to $92,912 per unit for fiscal year 2019 compared to fiscal year 2018.

Net sales per unit for the Malibu U.S. segment increased 6.1 percent to $82,837 per unit, driven by strong demand for new models and optional features and year-over-year price increases, the company said.

Net sales per unit for the Cobalt segment increased 6.2 percent to $85,761 per unit for fiscal year 2019 compared to fiscal year 2018, driven by a favorable mix of R series models, which have a higher average selling price, as well as year-over-year price increases. Net sales per unit for Pursuit for fiscal year 2019 was $253,219. 

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