Press release
Malibu Boats, Inc. Provides Business Update on COVID-19
Suspends operations at manufacturing facilities to protect employeesEnhances financial strength and flexibilityWithdraws fiscal year 2020 outlook LOUDON,
About this update from Malibu Boats, Inc.
[{"type":"text","content":"Suspends operations at manufacturing facilities to protect employeesEnhances financial strength and flexibilityWithdraws fiscal year 2020 outlook\n LOUDON, Tenn., March 24, 2020 (GLOBE NEWSWIRE) -- Malibu Boats, Inc. (Nasdaq: MBUU), announced today several key actions to ensure the health and safety of its key stakeholders. “We are all navigating uncharted waters, as uncertainty in the broader macro-economic environment has reached unprecedented levels. In this moment, the health and safety of our employees, dealers and customers remain our top priority. As a result, we made the difficult decision to suspend operations at our manufacturing facilities out of an abundance of caution for the communities we serve,” commented Malibu Boats’ Chief Executive Officer, Jack Springer. “Despite the volatility in the global markets, Malibu remains in an excellent financial position. To ensure we maintain sufficient liquidity, we have drawn just under $100 million on our current revolver to support operations and strategic investments in the event of a prolonged lower demand environment. Further, our historical commitment to operational excellence and vertical integration initiatives will allow us to withstand the downward retail momentum that is beginning to reverberate throughout the world. These strategies will allow us to remain nimble and align our cost structure quickly to lowered retail demand to preserve margins,” continued Mr. Springer. Mr. Springer concluded, “Given that the uncertainty and rapid spread of this virus and its ultimate impact on the broader macro-environment is unknown at this point, we believe it is prudent to withdraw our fiscal year 2020 outlook at this time. We believe our discipline in both good times and bad will enable Malibu to extend our leadership position in the broader marine industry.” Suspends Operations at Manufacturing Facilities Malibu Boats will be closing its manufacturing facilities, effective March 24, 2020 through April 6, 2020. Enhances Financial Strength and Flexibility The Company has drawn $98.8 million on its revolver under its current credit agreement to ensure sufficient liquidity. As of March 23, 2020, Malibu had cash and cash equivalents in excess of $130 million. Withdraws Fiscal Year 2020 Outlook The Company is withdrawing fiscal year 2020 outlook provided on February 6, 2020, given th...