MBUU by the numbers

[DarkSide]

I found a couple things interesting in the past couple of earnings calls. 1. Malibu claims thier market share is either flat or slightly declining. 2. Production is up significantly at both BU and MC.

If BU is producing more boats and still losing share then the industry as a whole is growing very significantly, and that is a good thing for us consumers. It means more innovation and tougher competition. As the number of units goes up the cost of innovation goes down, thus encouraging even more innovation.

The downside for us as consumers is even with higher prices, production/sales are increasing. Not just with BU but with the entire industry. As long as you can raise production and prices simultaneously prices will continue to rise so boats aren't going to get cheaper anytime soon.

IXFE. ...your insights here are always appreciated

[IXFE]

I found a couple things interesting in the past couple of earnings calls. 1. Malibu claims thier market share is either flat or slightly declining. 2. Production is up significantly at both BU and MC.

If BU is producing more boats and still losing share then the industry as a whole is growing very significantly, and that is a good thing for us consumers. It means more innovation and tougher competition. As the number of units goes up the cost of innovation goes down, thus encouraging even more innovation.

The downside for us as consumers is even with higher prices, production/sales are increasing. Not just with BU but with the entire industry. As long as you can raise production and prices simultaneously prices will continue to rise so boats aren't going to get cheaper anytime soon.

IXFE. ...your insights here are always appreciated

Yeah, I'm delinquent this quarter. Haven't even listened to the earnings call yet. I'll get on it...

[DarkSide]

Yeah, I'm delinquent this quarter. Haven't even listened to the earnings call yet. I'll get on it...

Cool thing MC released their qtr today as well. BU gained share over MC, and if BU lost share, really not good for MC. Even though thier production was up, it was not up enough to hold thier position.

The year are releasing 3 boats per year so far we have X26, I don't see that as a market share capture, I expect 1 NXT, and ????

[DarkSide]

Another good quarter. No real revelations, Canada is hurting international sales.

A couple of interesting things from a different presentation.

[DarkSide]

And one more that is even more interesting. M235 NOT aimed at existing Malibu clientele but targeting a different group entirely.

Also makes it easy to see why each model was chosen for refreshing.

Edited February 3, 2016 by DarkSide

[TenTwentyOne]

Another good quarter. No real revelations, Canada is hurting international sales.

A couple of interesting things from a different presentation.

Kinda deceiving to only use a comparison year that was 7 years ago, and not show the progression in the last few years. Especially in excluding the data from the last time they showed the market share comparison........ And then say "capturing market share from competitors". That leads you to believe that the gain is still growing. However, if you pull the data from the last three years that is available, it shows-

Malibu stayed flat

MasterCraft gained share

Nautique gained share

Supra stayed flat

Others stayed flat

If Malibu hasn't gained a thing in 3 years, and it's two closest competitors have..... It might be time to stop proclaiming that they are "gaining market share from key competitors"

[thtrog]

And one more that is even more interesting. M235 NOT aimed at existing Malibu clientele but targeting a different group entirely.

Also makes it easy to see why each model was chosen for refreshing.

They succeeded then....When he inquired about my G purchase, I told Mr. Springer that the M235 lead me to looking outside Malibu.

[85 Barefoot]

Kinda deceiving to only use a comparison year that was 7 years ago, and not show the progression in the last few years. Especially in excluding the data from the last time they showed the market share comparison........ And then say "capturing market share from competitors". That leads you to believe that the gain is still growing. However, if you pull the data from the last three years that is available, it shows-

Malibu stayed flat

MasterCraft gained share

Nautique gained share

Supra stayed flat

Others stayed flat

If Malibu hasn't gained a thing in 3 years, and it's two closest competitors have..... It might be time to stop proclaiming that they are "gaining market share from key competitors"

Actually, the only year over year comparison that favors what you're saying is from 13 to 14, hardly the "progression in the last few years". I'm not sure where you're gathering that MC gained share over the last 3 years. The last 3 reported years they went from 24.3 to 21.9 to to 20.0 to 20.5. So in the last 3 years of reported units, MC has LOST more than 15% of its market share and Malibu is UP more than 10%.

[TenTwentyOne]

Actually, the only year over year comparison that favors what you're saying is from 13 to 14, hardly the "progression in the last few years". I'm not sure where you're gathering that MC gained share over the last 3 years. The last 3 reported years they went from 24.3 to 21.9 to to 20.0 to 20.5. So in the last 3 years of reported units, MC has LOST more than 15% of its market share and Malibu is UP more than 10%.

24.3 is from 2011, 21.9 is from 2012..... That was my whole point. That is more than 3 years ago, and ancient history IMO to be making current claims of "gaining market share"

From the Malibu info itself.... 9 months ending sept 13- 19.7, Year end 2013- 20.0, year end 2014- 21. No stated info for 2015 as of yet apparently....

Going from 19.7 to 21 is a growth, is it not? Going from 32.9 to 32 is not a growth.......

Ironic that you say "I'm not sure how you are gathering that MC gained share over the last three years", and then you post data from 4 and 5 years ago. Are you stuck in 2013?

Edited February 3, 2016 by TenTwentyOne

[85 Barefoot]

24.3 is from 2011, 21.9 is from 2012..... That was my whole point. That is more than 3 years ago, and ancient history IMO to be making current claims of "gaining market share"

From the Malibu info itself.... 9 months ending sept 13- 19.7, Year end 2013- 20.0, year end 2014- 21. No stated info for 2015 as of yet apparently....

Going from 19.7 to 21 is a growth, is it not? Going from 32.9 to 32 is not a growth.......

Ironic that you say "I'm not sure how you are gathering that MC gained share over the last three years", and then you post data from 4 and 5 years ago. Are you stuck in 2013?

No, what I'm saying is for your statement to be correct that MB is not gaining, there is but only one time period that is accurate. Every other metric from the years provided show growth for MB. 2015 totals obviously not tallied yet as there's a LOT of 2015 boats out there left to sell. Malibu can report sales now on those as every boat is sold to a dealer, but that is not the case for some other manufacturers who produce boats and wait to see where to send them.

I can't respond to your specifics as 19.7 doesn't show up for any manufacturer for any year and MB went from 32.8 to 32. There is but one year MB growth went backwards and MC went forward. You picked it out over every other time period of the information. In and of itself you're correct, but doesn't make any other growth claims inaccurate either.

[DarkSide]

They succeeded then....When he inquired about my G purchase, I told Mr. Springer that the M235 lead me to looking outside Malibu.

I saw an M235 last night for the first time. I was very impressed with the level of detail. The little things, none of which add anything to wake or wave performance but are still noticeable. Example swim platform lighting, on all other malibu you have a tiny led right below the rub rail shining down. On the 235 these lights are integrated into the grab handle. Thus reducing the number of holes drilled and the number of things you see. These lights right next to "Malibu" https://vault.myvzw.com/webcs/app/share/invite/cpodAvcwIJ hate excess crap, first thing I do is remove stickers/warning labela. Little things like that are everywhere. Seats have different hinges, so they no longer need struts to stay open, the power/breaker pannel etc. This is a much more refined boat.

Edited February 3, 2016 by DarkSide

[TenTwentyOne]

85- that 19.7 was from the data that Malibu was providing back when they first announced the intention to go public.

http://www.tradeonlytoday.com/2013/12/malibu-boats-cites-strengths-ipo-filing/

[85 Barefoot]

pretty strong FY 2016 for both profitability and volume (copied from Malibu's site which accompanied earnings call):

 

Highlights for Fiscal Year 2016

Net sales increased 10.6% to $253.0 million compared to fiscal year 2015.

Unit volume increased 4.8% to 3,569 boats compared to fiscal year 2015.

Net sales per unit increased 5.5% to $70,878 compared to fiscal year 2015, and net sales per unit in the U.S. increased 6.8% over the same period in fiscal year 2015.

Gross profit increased 10.6% to $66.8 million compared to fiscal year 2015.

Net income decreased 12.5% to $20.3 million, or $1.01 per share, compared to fiscal year 2015.

Adjusted EBITDA increased 10.5% to $48.2 million compared to fiscal year 2015.

Adjusted fully distributed net income increased 5.0% to $25.6 million compared to fiscal year 2015.

Adjusted fully distributed net income per share increased 18.9% to $1.32 per share on a fully distributed weighted average share count of 19.4 million shares of Class A Common Stock as compared to fiscal year 2015.

 

 

 

[teamerickson]

It's raining BUs!!!

[85 Barefoot]

For anyone paying attention, MBUU stock price hit an all time high today and is up an amazing 139% in 13 months.  Now market cap has crested more than HALF A BILLION DOLLARS.  

I know Bob is long gone, but I bet even he is shocked at what he started.  

[jeffmx]

[NWBU]

On 7/19/2017 at 2:38 PM, 85 Barefoot said:

For anyone paying attention, MBUU stock price hit an all time high today and is up an amazing 139% in 13 months.  Now market cap has crested more than HALF A BILLION DOLLARS.  

I know Bob is long gone, but I bet even he is shocked at what he started.  

Double that market cap now.

@IXFE Q4 and FY18 numbers coming out for you in the morning.

[85 Barefoot]

6 hours ago, NWBU said:

Double that market cap now.

@IXFE Q4 and FY18 numbers coming out for you in the morning.

30% in the last month...wow...

@IXFE...hope you're banking!  

[85 Barefoot]

HO LEE smoke...almost up 50% in the last month...10% in the last 24 hours...

[IXFE]

On 9/5/2018 at 4:37 PM, NWBU said:

Double that market cap now.

@IXFE Q4 and FY18 numbers coming out for you in the morning.

I’m way behind. Lots of catch up to do this weekend. 

[NWBU]

5 hours ago, IXFE said:

I’m way behind. Lots of catch up to do this weekend. 

No worries, I think 85 and I are about the only ones paying attention anyway.

To summarize, another great quarter/year for BU and results beat expectations, again. Strong towboat demand as we already know, Cobalt integration has gone better than expected and they see a lot of upside in both markets, as well as excitement about what Pursuit brings to the business. Meanwhile their stock has quadrupled in the last 2 years. 

Keep in mind that the tax reform in December 2017 caused adjustments that reduced annual net income by $16.7M (or 54%), and the Cobalt acquisition diluted gross margins since they had to sell through the high cost inventory.

Highlights for Fiscal Year 2018 (from press release)

Net sales increased 76.3% to $497.0 million compared to fiscal year 2017.

Unit volume increased 64.9% to 6,292 boats compared to fiscal year 2017.

Net sales per unit increased 6.9% to $78,990 per unit compared to fiscal year 2017.

Gross profit increased 60.4% to $120.3 million compared to fiscal year 2017.

Net income decreased 0.3% to $31.0 million, or $1.37 per share, compared to fiscal year 2017.

Adjusted EBITDA increased 66.4% to $92.7 million compared to fiscal year 2017.

Adjusted fully distributed net income increased 86.9% to $56.1 million compared to fiscal year 2017.

Adjusted fully distributed net income per share increased 66.7% to $2.60 per share on a fully distributed weighted average share count of 21.5 million shares of Class A Common Stock as compared to fiscal year 2017.

[NWBU]

I find this interesting since each fall there's talk about how price increases can't continue and assumptions that the boat makers are pocketing the increases each year. MBUU gross margin % for 2013-2018 is basically flat before decreasing with the Cobalt deal in fiscal 2018:

2013 - 26.1%

2014 - 26.6%

2015 and 2016 - 26.4%

2017 - 26.6%

2018 - 24.2%

[23LSVOwner]

5 hours ago, NWBU said:

I find this interesting since each fall there's talk about how price increases can't continue and assumptions that the boat makers are pocketing the increases each year. MBUU gross margin % for 2013-2018 is basically flat before decreasing with the Cobalt deal in fiscal 2018:

2013 - 26.1%

2014 - 26.6%

2015 and 2016 - 26.4%

2017 - 26.6%

2018 - 24.2%

 

It's all the greedy manufacturers fault! They shouldn't make any money! Everyone should get an obamaboat!

[Ryan1776]

My dad just sent me this..... 

Malibu Boats, Inc. (Nasdaq: MBUU) announced its financial results for the second quarter ended Dec. 31, 2018.

Highlights for Q2 of fiscal year 2019 include:

Net sales increased 45 percent to $165.8 million compared to the second quarter of fiscal year 2018.

Unit volume increased 18.2 percent to 1,760 boats compared to the second quarter of fiscal year 2018.

Net sales per unit increased 22.6 percent to $94,200 per unit compared to the second quarter of fiscal year 2018.

Gross profit increased 39.2 percent to $38.3 million compared to the second quarter of fiscal year 2018.

Net income increased 368.6 percent to $15.0 million, or $0.68 per share compared to the second quarter of fiscal year 2018.

Adjusted EBITDA increased 42.5 percent to $29.4 million compared to the second quarter of fiscal year 2018.

Adjusted fully distributed net income increased 64.5 percent to $18.8 million compared to the second quarter of fiscal year 2018.

Adjusted fully distributed net income per share increased 62.3 percent to $0.86 on a fully distributed weighted average share count of 21.8 million shares of Class A Common Stock as compared to the second quarter of fiscal year 2018.

Completed acquisition of assets of the Pursuit Boats division (“Pursuit”) of S2 Yachts, Inc. for $100.1 million on October 15, 2018.

 

22.6% PER UNIT!!!! HOLY SH*T

[TenTwentyOne]

56 minutes ago, Ryan1776 said:

 

 

22.6% PER UNIT!!!! HOLY SH*T

 

A lot of that is because of the cobalt acquisition and the inclusion of the figures on the big cobalts.

They didn’t jump the price of a Malibu by 22% in one year.