Malibu Boats Inc. increased net sales 45 percent to $165.8 million in the second quarter, and grew unit volume 18.2 percent to 1,760 boats.
That beat Wall Street’s revenue expectations of $150 million for the quarter.
Net sales attributable to Malibu’s U.S. segment increased $14.6 million, or 21.5 percent, to $82.7 million, and U.S. volume increased 112 units.
The increase in net sales and unit volume for Malibu U.S. was driven primarily by strong demand for new models and optional features, according to the company.
Cobalt’s net sales increased $6.5 million, or 16.5 percent, to $45.9 million in the second quarter, and unit volumes grew 35 units; the company attributed Cobalt’s growth in sales and units to strong demand for the R series models.
Since Malibu purchased Pursuit boats from S2 Yachts on Oct. 15, net sales and unit volume contributed by Pursuit were $29.9 million and 111 units.
"Dealers' orders remain robust, which has created a strong order book across all of our brands and channel inventories are at near optimal levels,” said Malibu Boats CEO Jack Springer in a statement.
“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,” said Springer. “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,”
Gross profit increased $10.8 million in the second quarter, or 39.2 percent, to $38.3 million, due mainly to higher unit volumes.
Gross margin for the quarter softened, decreasing 100 basis points from 24.1 percent to 23.1 percent, primarily due to $0.9 million of additional expense related to the fair value step-up of Pursuit inventory acquired and sold during the period, according to the company.
Gross margins increased year-over- year for the company’s comparable businesses primarily as a result of operational efficiency initiatives.
Net income increased 368.6 percent to $15 million, or $0.68 per share and adjusted EBITDA increased 42.5 percent to $29.4 million compared to the second quarter of fiscal 2018.
“Our second quarter results reinforce our ability to deliver consistent profitable growth, while leveraging our world-class brands,” said Springer. “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.”