On October 31, 2023, Malibu Boats Inc (MBUU, Financial) released its financial results for the first quarter ended September 30, 2023. The company reported a 15.3% decrease in net sales to $255.8 million, compared to the same period in the previous fiscal year. Unit volume also decreased by 24.1% to 1,698 units, and gross profit fell by 23.9% to $56.8 million.
Financial Performance
Net income for the quarter decreased by 42.5% to $20.8 million, while diluted earnings per share fell by 42.0% to $0.98. Adjusted EBITDA also decreased by 31.7% to $39.0 million. Despite these decreases, the company's financial results surpassed expectations amidst a challenging retail environment.
Segment Performance
Net sales for the Malibu segment decreased by 27.7% to $105.0 million, primarily due to lower wholesale shipments driven by decreased retail activity. The Saltwater Fishing segment saw a slight increase in net sales by 0.4% to $92.6 million, driven by inflation-driven year-over-year price increases and a favorable model mix. The Cobalt segment experienced a decrease in net sales by 10.2% to $58.2 million, primarily due to a decrease in units and increased dealer flooring program costs.
Management Commentary
As we moved through the quarter, the retail environment markedly deteriorated with the sense of urgency that customers had over the last few years largely gone, coupled with a challenged interest rate and macroeconomic landscape. Despite this rapidly evolving operating landscape, our financial results for the fiscal first quarter surpassed our expectations. This is a testament to our team’s superior execution, combined with the inherent strength across our lineup of brands," commented Jack Springer, Chief Executive Officer of Malibu Boats, Inc.
Fiscal 2024 Guidance
For the full fiscal year 2024, Malibu Boats Inc (MBUU, Financial) anticipates a net sales decline in the high teens to low twenties year-over-year and an Adjusted EBITDA margin down 350-450 basis points year-over-year.
About Malibu Boats Inc (MBUU, Financial)
Based in Loudon, Tennessee, Malibu Boats, Inc. (MBUU) is a leading designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats. The company is the market leader in the performance sport boat category through its Malibu and Axis boat brands.
Explore the complete 8-K earnings release (here) from Malibu Boats Inc for further details.
