MBUU by the numbers

[Nitrousbird]

Technically true... but not for long. I forgot to mention in my notes... MBUU is in the process of acquiring boat production in Australia. They build aprox. 300 boats/year.

From a financial and plant capacity perspective, wouldn't it be cheaper to kill the Australian plant and just export US built boats there? Or is that what they are planning?

[shawndoggy]

Wow, seems like running a business from halfway around the planet for only 300 boats presents a lot of risk but not much upside?

[IXFE]

It's not just about 300 boats in Australia. They say they have ambitious plans for international expansion. Why else would they be hosting a big event in Cancun? They view the Australian plant as a gateway to the other half of the world.

[justgary]

Wow, seems like running a business from halfway around the planet for only 300 boats presents a lot of risk but not much upside?

And 300 boats is 10% of the US production. If they made the same margins as in the US, adding Australia would add over $2M to their profit each year. Somehow McD's pulls it off and probably an average $5 sale per customer.

[wakebrdr94]

http://investors.malibuboats.com/releasedetail.cfm?releaseid=854572

[shawndoggy]

Anybody have any update on the Malibu / Nautique surfgate litigation?

[shawndoggy]

And any thoughts on canadian economic / currency crash re how it will impact US boat sales there? Aren't the "world's biggest" malibu and MC dealers in Canada?

[oldjeep]

And any thoughts on canadian economic / currency crash re how it will impact US boat sales there? Aren't the "world's biggest" malibu and MC dealers in Canada?

Well Wizard Lake is the #1 ranked Malibu dealer - not sure if that is purely most sales or if there is more to do with it. Our local dealer is #2

[DocPhil]

Anybody have any update on the Malibu / Nautique surfgate litigation?

I know this is a slightly non important point but have you seen that video of the pavati surf system? It is literally identical to NSS. Could a multimillion dollar fledgling company really overlook that?

Are they banking on the fact that CC will win?

Or do they not realize how important a functioning surf system is in the current inboard marketplace?

[shawndoggy]

Icbw but I thought I read somewhere that pavati had licensed it from correct craft? Sorry no cite for that and like I said could've just hallucinated that.

[TenTwentyOne]

I know this is a slightly non important point but have you seen that video of the pavati surf system? It is literally identical to NSS. Could a multimillion dollar fledgling company really overlook that?

Are they banking on the fact that CC will win?

Or do they not realize how important a functioning surf system is in the current inboard marketplace?

Pavati Allegedly purchased rights from CC to use the system. I suppose CC probably didn't figure them as huge competition, and Pavati figured they would use a well tested system that was easiest to implement to their hulls. Makes sense....

That is just hearsay.....

[oldjeep]

Pavati Allegedly purchased rights from CC to use the system. I suppose CC probably didn't figure them as huge competition, and Pavati figured they would use a well tested system that was easiest to implement to their hulls. Makes sense....

That is just hearsay.....

So if that is the case then Malibu really might have no reason to go after Pavoti, the (theoretically) illegal license fees they would have collected become part of the suit and if they win they could either decide to continue licensing to Pavoti or tell them to stop using it.

[DocPhil]

^^^^is that correct SD?

if you license a product then the parent company loses the rights to that license do you lose yours too?

[shawndoggy]

^^^^is that correct SD?

if you license a product then the parent company loses the rights to that license do you lose yours too?

LOL I'm no IP guru. But in general, you can't let someone use something you yourself do not own (or have a right to sublicense). Unless, doc, you would like a share of the golden gate bridge, in which case I can make you one heck of a deal.

Edited January 26, 2015 by shawndoggy

[Cory]

I wasn't aware CC had obtained a patent on NSS. Assuming CC did, if Malibu wins the patent dispute, then Malibu will probably approach the other players in the industry with systems that Malibu believes also infringe their patent(s) and either seek licenses or injunctions. I suspect Malibu wants injunctions in the hopes they will sell more boats. The win over CC will give Malibu a much stronger position. If Malibu seeks licenses (either they want the license revenue or the courts aren't willing to grant injunctive relief for reasons of equity), then Pavati may potentially have to obtain a license from both CC and Malibu to use an NSS type surf system.

Most electronic things we use today are covered by more than one patent from more than one company. That's the nature of our complex technological society.

[Sunscape fan]

And any thoughts on canadian economic / currency crash re how it will impact US boat sales there? Aren't the "world's biggest" malibu and MC dealers in Canada?

The crappy dollar is the only thing keeping me from upgrading to a '15 LSV. I just can't stomach an extra 23% just cause the dollar sucks. If I got an extra 23% for my boat from the dealer, then I might consider it...but that isn't gonna happen

Edited February 2, 2015 by Sunscape fan

[Cory]

The crappy dollar is the only thing keeping me from upgrading to a '15 LSV. I just can't stomach an extra 23% just cause the dollar sucks. If I got an extra 23% for my boat from the dealer, then I might consider it...but that isn't gonna happen

Presumably your trade in has risen by 23% in value also??? Make a deal to Wizard Lake Marine on one of their early 2015 MY built boats. They imported those before most of the drop on your dollar, so their Canadian dollar price will be lower on those boats.

Edited February 2, 2015 by Cory

[Sunscape fan]

Presumably your trade in has risen by 23% in value also??? Make a deal to Wizard Lake Marine on one of their early 2015 MY built boats. They imported those before most of the drop on your dollar, so their Canadian dollar price will be lower on those boats.

I tried to do just that on a '15 metallic black and white 23 LSV. But the difference was too high. And they wouldn't budge. They wouldn't even come down a little citing the Canadian dollar as the reason. And this was in November when it wasn't quite as bad as it is now.

[Cory]

I tried to do just that on a '15 metallic black and white 23 LSV. But the difference was too high. And they wouldn't budge. They wouldn't even come down a little citing the Canadian dollar as the reason. And this was in November when it wasn't quite as bad as it is now.

They aren't hurting yet. Wait and see how spring plays out. If they have a lot of inventory on hand after April 15th (when they have to start paying interest on those stock boats), they may be more willing to negotiate. It will be interesting to see how things play out for Wizard Lake. So many things are changing so fast on them right now.

Edited February 2, 2015 by Cory

[Sunscape fan]

They aren't hurting yet. Wait and see how spring plays out. If they have a lot of inventory on hand after April 15th (when they have to start paying interest on those stock boats), they may be more willing to negotiate. It will be interesting to see how things play out for Wizard Lake. So many things are changing so fast on them right now.

Yes and I check their website regularly....the new boats keep showing up...they have a huge amount of new and used inventory. Some boats look amazing...others I think to myself "what the heck were they thinking??!"

So we shall see what the summer brings. With oil prices down and rigs slowing down, there's gonna be a lot of oil workers in Alberta (and those in BC who commute) either out of work or in steep decline. Be interesting to see how that affects the prices

[oldjeep]

Interesting. Have not found out the details on this yet

Edit - must have to do with this since the expiration dates are the same

http://www.streetinsider.com/Corporate+News/Malibu+Boats+(MBUU)+Announces+$70M+Modified+Dutch+Auction+Tender/10369662.html

Re. MBUU position in account ********:

CUSIP: 56117J100

Description: MALIBU BOATS INC CL A

The above-listed stock is part of a non-mandatory reorganization or tender offer, which currently expires on 04/09/2015.

Where to find more information:

For offers initiated by the company, information can often be found on the company's website.

If the offer was initiated by a third party, additional information can be obtained by contacting your local Scottrade team.

For mini-tender offers, the US Securities and Exchange Commission has urged caution. To review an SEC educational piece entitled "Mini-Tender Offers: Tips for Investors," go to http://www.sec.gov/investor/pubs/minitend.htm.

Edited March 17, 2015 by oldjeep

[shawndoggy]

All the deets (interesting!)

http://www.sec.gov/Archives/edgar/data/1590976/000119312515090175/d888089dex99a1a.htm

[oldjeep]

All the deets (interesting!)

http://www.sec.gov/Archives/edgar/data/1590976/000119312515090175/d888089dex99a1a.htm

So for a novice - basically Malibu is doing a share buy back with an 80 million dollar loan? What I don't get is that the price range is in the range that they have been trading at. As an investor - why bother when you could sell them on the open market? Or is the target of this the original shareholders who want a way out all at once without driving the price down?

Edited March 17, 2015 by oldjeep

[shawndoggy]

"The primary purpose of the Offer is to return cash to the Company’s stockholders and the LLC’s unitholders by providing them with the opportunity to tender all or a portion of their Securities and, thereby, receive a return of some or all of their investment if they so elect. In addition, if we complete the Offer, stockholders and unitholders who do not participate in the Offer will automatically increase their relative percentage interest in the Company and the LLC, respectively, and our future operations."

[shawndoggy]

So for a novice - basically Malibu is doing a share buy back with an 80 million dollar loan? What I don't get is that the price range is in the range that they have been trading at. As an investor - why bother when you could sell them on the open market? Or is the target of this the original shareholders who want a way out all at once without driving the price down?

I think that's right. According to the offer, Black Canyon owns approx $90M worth of shares (@ $21 per), and according to the docs they've committed to tender all they own @ $21 per share. So if nobody else tenders, Black Canyon mostly cashes out (and leaves everyone else with the bill) or you can get out now too and dilute how much cash they get out with in this round.