Malibu beats revenue expectations in Q2

Author:
Publish date:
Gross margins softened as a result of the company’s acquisition of Pursuit boats for $100 million.

Gross margins softened as a result of the company’s acquisition of Pursuit boats for $100 million.

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.”

Related

A Record Q2 for Brunswick

With strong global demand in all its business segments, Brunswick Corp. reported another stellar quarter, posting a 57 percent jump in net sales.

OneWater Adds PartsVu

The online marketplace for marine parts, accessories and electronics posted $25 million in sales over the last year.

Groupe Beneteau Updates Revenue Forecasts, More

The builder saw gains in its boat and luxury-home sectors and made several acquisitions, including a majority stake in Dream Yacht Group.

Golden Manufacturing Expands

The fabricator of aluminum boat lifts and aluminum and concrete floating docks adds 18,000 square feet to its Fort Myers, Fla., headquarters.

GetMyBoat Takes You to the Movies

The boat rental marketplace site teams with Disney’s Jungle Cruise for a contest to win a boat trip or movie tickets.

ConMar Adds to Sales Team

The manufacturers’ representatives add industry vet Brain Steele.

Will Canada Reopen to Boaters?

Set to open its borders to fully vaccinated U.S. residents next month, our neighbor to the north could be facing a strike by Canadian border guards and customs officials. Plus, the Great Lakes welcomes a newly designated marine sanctuary.