21 hours ago, MJHSupra said:

For sure.  I just wanted to be nice about it. 

Could be worst, back in March 2020 it was $18.73.  Then it rose to $81.04 in one year (2021).  Crazy COVID times . . . 

It never got that low in all of 2020. The lowest was…

I don’t know exactly how Malibu structures their dealer incentives but many companies in the marine industry do tier pricing based on spend levels… So you have to spend over X$ in order to get the discount x%.

That is why tons of company in our industry and others are pumped full of inventory. Manufactures raised the dollar and quantity amounts to get their tiered pricing from the Covid boom and continued, forcing that upon dealerships.. ultimately, most of it was the dealers decision to take on whatever they decided to buy however in this Tommy’s situation sounds like there was some other stuff going on… “ allegedly” ..

Even assuming it was utilized at 160,000,000 (I’ve seen no authority it was, credit availability isn’t utilization), and the rate was 5%, that’s $8M a year.  If they did 1,000 boats a year that’s spread out to $8,000 a boat IF it was floor planned a whole year. Thats a line item of note for sure but not insane when you think about it because 1) most boats obviously sell much faster than a year 2) they were selling more than 1,000 if they did 1/3 of malibus product, and 3) unlikely they were actually floor planning $160,000,000.  
 

Now, obviously that’s for PAST considerations.  Market at a standstill going forward?  That’s an issue.  

1 hour ago, Mazevedo said:

Concern is under load (surfing) if the connection would hold up to the resistance of the water....

The connectors that @formulaben linked are screw lock and sealed.  They aren't going to come apart in moving water.  I would be much more concerned that you install them correctly so that the gland at the cable entrance has a chance to actually seal and not flood the back of the connector with water.

On 4/11/2024 at 8:26 AM, dizzygti said:

Sales trends can be assumed from the numbers I posted in that link.  Like you said, next earnings report will be telling.

Why would anyone believe the data. I think I’ve been saying stuff at dealerships is not selling hot for a long while… yet mfg numbers were contradictory and now we find out why.
 

I highly doubt Tommy’s was the only dealerships being pumped up. I also don’t think this is a Malibu only problem. Basically dealers are going to be sitting on inventory longer and moving less while many are pumped full.. Pain is coming..

Ultimately someone at Tommy’s bought into the idea that sales would magically continue at COVID boom numbers and beyond?? What’s confusing to me is why the Bank would have even financed this based on Tommy’s performance??? LOC/Loans of this size ALWAYS have bankers doing some sort of fiduciary limit on what the customer has a likelihood of paying back..too many things NOT adding up here!!!  CEOs get paid for stock performance so obviously all CEOs want to do is increase stock prices . Their incentive programs are tied to it. Banks want to make a crap ton off of interest And something smells fishy how this even got approved… 50M -160M … that’s crazy Their cash flow can’t even service the interest in good times with low rates let alone now!!!! This likely why I said a while back banks were putting halts and reducing limits in floor plan financing 

obviously somebody at the banks getting canned on this one..