Malibu Boats reports 1Q results

Net sales at Malibu Boats increased 20.1 percent in the company’s first quarter to $57.2 million from the quarter a year earlier.
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Net sales at Malibu Boats increased 20.1 percent in the company’s first quarter to $57.2 million from the quarter a year earlier and unit volume increased 22.6 percent to 825 boats.

That included 79 units from Australia.

Net sales per unit decreased 2 percent to $69,382 and net sales per unit in the United States increased 2 percent to $72,245, for the fiscal 2016 quarter that ended Sept. 30, compared with the year-earlier quarter — a theme among companies challenged by the strong U.S. dollar.

"Malibu had another excellent quarter, meeting or exceeding our financial and operating targets for the seventh straight quarter since our IPO,” CEO Jack Springer said in a statement. “The U.S. market, our largest market by far, continues to perform well and more than offsets any currency-related challenges we face in Canada and other international markets.”

Gross profit increased 21.6 percent, to $14.7 million, and gross margin increased 30 basis points to 25.7 percent compared with the previous year’s quarter.

Adjusted EBITDA increased 17.3 percent to $9.4 million from the same period in the prior fiscal year.

Adjusted fully distributed net income increased 9.5 percent to $4.7 million, or 25 cents a share, compared with the year-earlier quarter.

“In the first fiscal quarter we have already introduced three new boats: the Axis A20, the Wakesetter 20 VTX and the Wakesetter 25 LSV,” Springer said. “Orders for the new models were up significantly in the first quarter and all three have been very well received.”

The company debuted the Wakesetter 25 LSV as its newest wakeboarding and wakesurfing competition boat at the Malibu Evolution Pro season-ending event. Early sales are “well ahead of initial projections,” Springer said.

“We have one additional boat we plan to formally unveil later this month,” Springer said. “This will be a very special boat for that most discerning customer who wants the absolute best performance, combined with the ultimate experience in luxury and premium lifestyle. We believe it will be the most attention-getting, best performing boat released in the performance sports segment in years.”

"Malibu began manufacturing our own trailers in July as part of our continued vertical integration plan,” Springer said. “This introduction has gone very well and is already paying dividends for us. We manufacture far more boat components than any of our competitors, providing significant advantage to our dealers and retail customers on both the operating and value sides of the equation. We expect the continued growth in our segment and strong execution will continue to deliver industry-leading results."

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