Malibu Boats(MBUU) - 2025 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended December 31, 2024, were $200.28 million, a decrease of 5.4% compared to$ 211.07 million for the same period in 2023[13]. - Gross profit for the six months ended December 31, 2024, was $65.63 million, down 30.4% from$ 94.27 million in the same period of 2023[13]. - Operating income for the three months ended December 31, 2024, was $3.18 million, a significant decline from$ 14.71 million in the same period of 2023[13]. - Net income attributable to Malibu Boats, Inc. for the three months ended December 31, 2024, was $2.36 million, compared to$ 9.88 million for the same period in 2023, representing a decrease of 76.1%[13]. - The company reported a comprehensive loss of $0.36 million for the three months ended December 31, 2024, compared to a comprehensive income of$ 11.57 million for the same period in 2023[13]. - The net loss for the six months ended December 31, 2024, was $2,726,000, compared to a net income of$ 30,914,000 for the same period in 2023[23]. - Adjusted EBITDA for the six months ended December 31, 2024, was $26.8 million, compared to$ 61.9 million for the same period in 2023[152]. - Basic net income per share for the three months ended December 31, 2024, was $0.12, a decrease from$ 0.49 in the same period of 2023[83]. - Diluted net income per share for the three months ended December 31, 2024, was also $0.12, compared to$ 0.49 for the same period in 2023[83]. Assets and Liabilities - Total current assets increased to $206.45 million as of December 31, 2024, compared to$ 202.13 million as of June 30, 2024[15]. - Total liabilities increased to $224.27 million as of December 31, 2024, from$ 204.91 million as of June 30, 2024[15]. - Cash balance as of December 31, 2024, was $35.12 million, an increase from$ 26.95 million as of June 30, 2024[15]. - The total stockholders' equity as of December 31, 2024, was $514,402,000[18]. - Outstanding debt as of December 31, 2024, was$ 23,000, with no term loan outstanding[49]. - The revolving credit facility has $325,272 available for borrowing as of December 31, 2024, with an interest rate of 7.75%[50][52]. Sales and Revenue Breakdown - Boat and trailer sales for the six months ended December 31, 2024, totaled$ 361.7 million, down from $456.9 million in the prior year, reflecting a decline of 20.8%[31]. - North America accounted for$ 190.6 million of consolidated net sales for the three months ended December 31, 2024, representing 95.2% of total sales[31]. - The company’s international sales for the three months ended December 31, 2024, were $9.7 million, accounting for 4.8% of total net sales[31]. - The Malibu segment reported net sales of$ 74.1 million for the three months ended December 31, 2024, down from $76.4 million in the same period of 2023[101]. - The Saltwater Fishing segment's net sales decreased to$ 70.2 million in Q4 2024 from $82.7 million in Q4 2023, representing a decline of 15.1%[101]. - The Cobalt segment achieved net sales of$ 56.0 million for the three months ended December 31, 2024, compared to $52.0 million in the same period of 2023, marking an increase of 7.4%[101]. Expenses and Costs - Non-cash compensation expense increased to$ 4,033,000 in 2024 from $1,323,000 in 2023[23]. - Depreciation expenses rose to$ 15,198,000 in 2024, up from $12,667,000 in 2023[23]. - General and administrative expenses increased by$ 11.1 million, or 71.9%, to $26.5 million for the three months ended December 31, 2024[133]. - General and administrative expenses increased by$ 17.6 million, or 48.8%, to $53.8 million for the six months ended December 31, 2024, primarily due to legal settlements and increased compensation expenses[145]. - Cost of sales for the three months ended December 31, 2024, decreased by$ 10.7 million, or 6.2%, to $162.9 million compared to the same period in 2023[131]. - Gross profit decreased by$ 28.6 million, or 30.4%, to $65.6 million for the six months ended December 31, 2024, with gross margin decreasing from 20.2% to 17.6%[144]. Legal and Compliance Matters - The company is involved in multiple legal proceedings, including a securities class action alleging violations of the Securities Exchange Act of 1934[95][96]. - The company entered into a Settlement Agreement to pay$ 3.5 million to the Tommy's Boats estate, contingent upon certain conditions being met[94]. - The company maintains liability insurance with coverage up to $26,000 related to the Batchelder Matters, having received approximately$ 21,000 in insurance proceeds as of December 31, 2024[93]. - The company continues to pursue claims against insurance carriers to recover the full $100,000 settlement amount related to the Batchelder Matters[93]. Future Outlook and Strategy - Malibu Boats, Inc. continues to face challenges including increased costs and reliance on third-party suppliers, impacting future performance expectations[10]. - The company anticipates a continued decline in the retail market for fiscal 2025 due to high dealer flooring costs and a soft retail environment[112]. - The company aims to increase market share through new product development and improved distribution despite facing aggressive competition in the industry[113]. - The company has over 400 dealer locations globally, with one dealer, OneWater Marine, representing more than 10% of consolidated net sales in fiscal year 2024[109]. Stock and Shareholder Information - The company repurchased and retired Class A Common Stock amounting to$ 20,199,000 during the six months ended December 31, 2024[23]. - As of December 31, 2024, Malibu Boats had $50.0 million available for share repurchases under the 2024 Repurchase Program[35]. - The company has authorized a stock repurchase program for up to$ 100.0 million of its Class A Common Stock and LLC Units from November 8, 2023, to November 8, 2024[171]. - The company repurchased 240,981 shares of Class A Common Stock for $10.1 million during the three months ended December 31, 2024[170].