Malibu Reports its Third Quarter

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Malibu Boats said its third quarter was a “tale of two environments,” with the covid-19 pandemic forcing production suspensions and shipping delays to dealers during the second half of the quarter.

Net sales decreased by $17.6 million, or 8.8 percent, to $182.3 million compared with the third quarter of fiscal year 2019. Unit volume was down by 298, or 14.2 percent, to 1,796 units compared with the same quarter last year.

“Through the greater part of the quarter, we delivered strong performance, as early boat-show season momentum extended into March,” CEO Jack Springer said in a statement. “However, retail strength shifted nearly overnight as the covid-19 virus ravaged the U.S. late in the quarter.”

The company suspended operations at all boatbuilding facilities — Malibu, Axis, Cobalt and Pursuit — March 24, with the shutdown lasting through late April and at some facilities into early May.

“The operational prowess of our team, coupled with our operational excellence and vertical integration infrastructure, allowed us to somewhat mitigate the substantial headwinds we faced and deliver operating margins ahead of expectations,” Springer said.

Net sales per unit increase by 6.3 percent, to $101,509 per unit, compared to the same period last year, partially offset by year-over-year price increases and options on new models.

Net sales per brand break down as follows:

  • Malibu and Axis Boats declined 4.5 percent, or $4.8 million, to $102.6 million, a decrease of 167 boats.
  • Cobalt was down 17.9 percent, or $10 million, to $46.0 million, a decrease of 124 boats.
  • Pursuit declined 7.6 percent, $2.8 million, to $33.7 million, a decrease of seven boats.

The declines in sales were chiefly driven by the suspension of production. The company had planned to reduce shipments and dealer inventories for the Cobalt brand.

“As we progress through murky waters, the extensive leadership experience of our management team through down cycles and our operational excellence will allow Malibu to further bolster our leadership position in marine,” Springer said.

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