Malibu Boats, Inc. · NASDAQ:MBUU
Malibu Boats — Corporate Update (November 2016)
7 slides from Malibu Boats's corporate update, Nov 14, 2016
Slide 1: Engine Vertical Integration Initiative Project Overview
Malibu Boats, Inc. Engine Vertical Integration Initiative Project Overview November 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements can be identified by such words and phrases as “believes,” “anticipates,” “expects,” “intends,” “estimates,” “may,
Slide 3: Strategic Rationale
Strategic Rationale • Next step in Malibu’s vertical integration strategy – Largest dollar procured part – More direct control around product path – design, innovation, calibration, integration – Firmer control on supply chain – Contracted supply – Follows historical success in towers and trailers •
Slide 4: Execution Plan
Execution Plan • 2-plus year project plan to launch engine marinization – Building adjacent to our facility has been acquired – Engine block supply agreement has been executed – Next major phases are engine marinization design/testing and facility modification • Attracted seasoned team to deliver en
Slide 5: Financial Overview
Financial Overview • Expected total investment up to $18 million over the next three years, split between – Capital investment • Building – purchased for ~$3 million • Capital improvements • Equipment • Tooling – Startup spend • Pre-production salaries • Engineering services • Prototyping • Customer
Slide 6: Financial Overview
Financial Overview • The table below lays out our cash outlay expectations • Target return profile – Approximately 200 basis points of Adjusted EBITDA margin expansion – Up to 10% accretive to EPS in first fully operational year – About a 3-year payback FY2016 Beyond Total Capital Expenditures ~$6MM
Slide 7: Final Thoughts
Final Thoughts • Significant long-term strategic benefits • Sound execution plan with experienced personnel and with minimal risk • Attractive target return on investment • Capital outlay is not expected to prevent other strategic actions