Malibu Boats reported an 82 percent increase in net sales, to $140.4 million, in the third quarter and a 69.4 percent uptick in unit volume, to 1,786 boats, versus the year prior.
Gross profit for the quarter increased $15 million, or 70.2 percent, to $36.4 million versus the third quarter in 2017, driven by the company’s acquisition of Cobalt Boats last summer.
Cost of sales increased $48.3 million, or 86.5 percent, to $104.1 million, compared to 2017, which the company attributed to the Cobalt purchase and an increase in unit volumes in Malibu’s U.S. business.
Gross margin for the quarter decreased 180 basis points, from 27.7 percent to 25.9 percent, over the same period in the prior fiscal year due to the acquisition of Cobalt and an increase in unit volumes.
“The results of the third quarter were strong,” Malibu CEO Jack Springer said in a statement. “This performance continues to be driven by robust retail demand in the United States, along with Malibu’s operating efficiencies. Channel inventories are at or near optimum levels, which is inspiring dealer confidence despite unfavorable weather during the early-spring selling season.”
The company’s 2018 model year boats are performing well, including new Cobalt models, Springer said.
“From an operational perspective, the Cobalt integration is going smoothly, and the Cobalt team is immersing itself into our culture,” Springer said. “Further, our operational excellence initiatives continue to drive improvement at Malibu, and it is having a quicker and better impact with the Cobalt integration than originally anticipated.”
On the international front, Canada continues its slow recovery, while Australia — Malibu’s second largest market — remains a contributor, Springer said.
“Lastly, market share gains are accelerating for both Malibu and Cobalt, where we already hold a commanding lead,” he said.
Adjusted EBITDA increased 70.1 percent to $28.5 million, compared to the third quarter of fiscal 2017.
Operating income for the third quarter increased to $23.9 million from $13 million, and net income increased 89.9 percent to $16.8 million from $8.8 million; net income margin increased to 12 percent from 11.5 percent.