The numbers don’t tell the whole story.
Malibu Boats Inc.’s net sales dropped 39.1 percent to $118.7 million in the fourth quarter, and unit volume decreased almost 44 percent to 1,117 boats compared to the fourth quarter of fiscal 2019.
Gross profit also decreased to the tune of more than 50 percent to $23.6 million compared to the fourth quarter last year, and net income dropped 68.2 percent to $6.5 million.
Despite these sharp declines, company performance exceeded expectations, said Malibu CEO Jack Springer. After temporarily suspending production prior to the start of the quarter and extending the shutdowns into the fourth quarter, the company moved quickly to reopen plants to meet the demand for boats at the beginning of the summer season.
“Our superior execution, combined with the strength of our brands, supported better-than-expected results in an incredibly volatile environment during our fiscal fourth quarter,” said Springer in a statement.
“Due to our planning and adaptable operations, we were able to reopen all brand production at pre-shutdown levels,” he said. “Our ability to resume the same production on day one of our reopening is a testament to our vertical integration strategy, operational expertise and supply chain management.”
For fiscal 2020, net sales decreased 4.5 percent to $653.2 million compared to fiscal 2019, and unit volume dropped 12.5 percent to 6,444 boats for the year.
Net sales-per-unit increased 9.1 percent to $101,360 compared to the year prior, and net income decreased 7.2 percent to $64.7 million, or $2.98 per share.
“Moving into fiscal year 2021, we remain incredibly well-positioned,” said Springer. “Our decision to roll out our model year 2021 products earlier than in years past and expand our innovative portfolio of boats across all of our brands gives us an edge with both loyal Malibu customers and first time boat buyers.”
“Our new Malibu Wakesetter 23 LSV, the best-selling boat in the history of performance boats, the Axis Wake A24, the Malibu Wakesetter 24 MXZ and Cobalt R6 have all generated overwhelmingly positive feedback from dealers and customers, and each will meaningfully improve the customer experience and drive continued demand,” said Springer.
“While tremendous uncertainty remains as a result of the Covid-19 pandemic, we are laser-focused on executing our proven strategy to deliver long-term value for our shareholders, including new product development, innovation and our vertical integration initiatives,” added Springer.