Malibu Boats reports 2Q results

Malibu Boats reported a net sales increase of 9.1 percent in its second quarter.
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Malibu Boats reported a net sales increase of 9.1 percent in its second quarter, bringing in $60.5 million, compared with $55.5 million in the same period a year earlier.

Unit volume increased 2.4 percent to 867 boats for the quarter that ended Dec. 31, including 81 units from Australia. Net sales per unit increased 6.5 percent to $69,787 and net sales per unit in the United States increased 7.5 percent to $72,526, compared with the year-earlier quarter.

Gross profit increased 12.1 percent to $15.9 million and gross margins increased 73 basis points to 26.2 percent. Adjusted EBITDA increased 7 percent to $11.2 million from the previous year. Adjusted net income of $5.8 million was in line with last year and adjusted net income per share increased 15.4 percent to 30 cents.

"Malibu completed another successful quarter, meeting or exceeding our internal financial and operating targets for the eighth straight quarter since our IPO. Despite the volatility in the macro environment, we have been steadfast with the execution of our strategy and achievement of our growth targets,” Malibu CEO Jack Springer said in a statement.

“This strategy is focused on owning the technology and innovation side of the industry, offering the best integrated wake and surfing system on the market, driving demand through consistent new product and feature launches, maximizing productivity and quality through vertical integration, controlling distribution through partnering with the best dealers across the industry and driving higher returns across the organization through a disciplined planning and production process.

“This strategy has served us well, and we continue to execute the business at a high level. Orders for our new-boat models — the Axis A20, the Malibu Wakesetter 20 VTX, the Malibu Wakesetter 25 LSV and the most premium performance sports boat ever built, the new Malibu M235 — were up in the first half of the fiscal year and we are pleased with our business at the boat shows thus far this season.

"The global macro trends across the industry remain mixed. While the recovery and strength in the U.S. market continues to more than offset currency-related weakness in Canada and other international markets, the latest decrease in oil and foreign currency prices and increased capital market volatility are things we are watching closely. “Conversely, we believe that increased precipitation in the western region of the United States could be a positive catalyst for what once was our largest region. Lastly, we expect the performance sports boat segment to outperform other marine segments and believe Malibu's strategy and strong execution positions us well to deliver industry-leading results.”