Malibu Boats, Inc. · NASDAQ:MBUU
Malibu Boats — Q4 2018 Earnings Presentation
21 slides from Malibu Boats's earnings presentation, Sep 6, 2018
Slide 1: Fourth Quarter Fiscal 2018 Earnings Results
Malibu Boats, Inc. Fourth Quarter Fiscal 2018 Earnings Results September 6th, 2018
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: Use and Definition of Non-GAAP Financial Measures
Use and Definition of Non-GAAP Financial Measures This presentation includes the following financial measures defined as non-GAAP financial measures by the SEC: Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Fully Distributed Net Income and Adjusted Fully Distributed Net Income per Share. These m
Slide 4: 4th Quarter Financial Highlights
4th Quarter Financial Highlights ◦ Record 4th quarter net sales, gross profit, Adjusted EBITDA, and AFDNI per share AFDNI Per Share(1) th $0.76 ◦ Net sales are up 84.6% year-over-year Gr ow $0.43 .7% 76 ◦ Net sales per unit increased 8.5% ▪ Inclusion of Cobalt Q4 FY17 Q4 FY18 ▪ Y/Y price increases ▪
Slide 5: Jack Springer, Chief Executive Officer
Jack Springer Chief Executive Officer MALIBU BOATS, INC.
Slide 6: Market Commentary
Market Commentary ◦ Retail Momentum Domestic Market Growth(1) ▪ Healthy growth ▪ Consistent results across the country CY18 ski/wake expected up ~7% CY18 ▪ Dealer sentiment near all-time high ▪ Seeing the impact of strong consumer Cobalt addressable market up ~5% confidence and higher disposable inc
Slide 7: Key Takeaways
Key Takeaways ◦ Malibu operating and financial performance has been excellent producing strong results ◦ The marine environment provides attractive opportunities ▪ Performance Sports Boats continues to grow mid to high single digits ▪ Cobalt is taking share in a growing sterndrive/outboard addressab
Slide 8: Wayne Wilson, Chief Financial Officer
Wayne Wilson Chief Financial Officer MALIBU BOATS, INC.
Slide 9: 4th Quarter Fiscal 2018 Comparable Results
4th Quarter Fiscal 2018 Comparable Results Net Sales Volume $138.7 1,708 th Grow % th 4.6 ow $75.1 8 Gr .1% 1,004 70 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Net Sales per Unit Net Sales Per Unit Components $81.2 $74.8 ◦ The Inclusion of Cobalt h o wt Gr ◦ Year-over-year price increases 8.5% ◦ Mix of larger
Slide 10: 4th Quarter Fiscal 2018 Comparable Results
4th Quarter Fiscal 2018 Comparable Results Gross Margin Gross Profit $33.5 h o wt 26.7% Gr $20.0 .4% 24.2% 67 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Adjusted EBITDA(1) Mix Comparison $25.9 Q4 FY17 Q4 FY18 th Grow % Axis: $15.5 .5 67 Axis: Cobalt: 20.3% 30.6% 37.4% Malibu: 69.4% Malibu: Q4 FY17 Q4 FY18 42.3
Slide 11: Fiscal Year 2018 Comparable Results
Fiscal Year 2018 Comparable Results Net Sales Volume $497.0 6,292 h th o wt row $281.9 Gr % G .3% 3,815 4.9 76 6 FY17 FY18 FY17 FY18 Net Sales per Unit Net Sales Per Unit Components $73.9 $79.0 ◦ Year-over-year price increases h ro wt G 6.9 % ◦ Mix of larger models including Malibu 23 LSV, Axis A24
Slide 12: Fiscal Year 2018 Comparable Results
Fiscal Year 2018 Comparable Results Gross Margin Gross Profit th ow $120.3 26.6% Gr $75.0 .4% 24.2% 60 FY17 FY18 FY17 FY18 Adjusted EBITDA(1) Mix Comparison $92.7 h FY17 FY18 o wt $55.7 Gr Axis: % Axis: 19.5% 66.4 29.3% Cobalt: 35.5% Malibu: 70.7% Malibu: FY17 FY18 45.0% 1. See Appendix for a reconc
Slide 13: Pursuit Acquisition
Pursuit Acquisition Purchase Price Multiple ~6.5x June 2018 TTM EBITDA Expected Close Q2 Fiscal 2019 Annual Unit Volume ~550 units Net Sales per Unit ~$225K Gross Margin % Low 20s Depreciation % of Net Sales <2% >$.35 per share, excluding amortization and Annual EPS Accretion purchase accounting adj
Slide 14: FY19 Full Year Outlook
FY19 Full Year Outlook Metric Target Unit Volume Increase in mid-single digits Net Sales Approaching high-single digit growth Gross Margin % Modest Increase Acquisition, Integration and Engine Expense ~$6 million Adjusted EBITDA Margin Modest Increase Capital Expenditures ~$15 million 1. See Appendi
Slide 15: Appendix
Appendix 15
Slide 16: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin (Unaudited): The following table sets forth a reconciliation of net income as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated (dollars in thousands): Three M
Slide 17: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin (Unaudited): Provision for income taxes for fiscal year 2018 reflects the impact of the Tax Cuts and Jobs Act of 2017 (the "Tax Act") adopted in December 2017, which among (1) other items, lowered the U.S. corporate
Slide 18: Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income
Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited): The following table shows the reconciliation of the numerator and denominator for net income available to Class A Common Stock per share to Adjusted Fully Distributed Net Income per Share of Class A Common Stock for the pe
Slide 19: Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income
Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited): The following table shows the reconciliation of net income available to Class A Common Stock per share to Adjusted Fully Distributed Net Income per Share of Class A Common Stock for the periods presented (certain totals fo
Slide 20: Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income
Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited): Provision for income taxes for fiscal year 2018 reflects the impact of the Tax Act adopted in December 2017, which among other items, lowered the U.S. corporate income tax rate from 35% to 21%, effective January 1, (1) 201
Slide 21: Malibu Boats, Inc. locations
e BOATS INC i. =S=MNahifu 4 OUR MISSION: AT MALIBU BOATS WE CREATE THE ULTIMATE ON THE WATER LIFESTYLE. —E MALIBU. MALIBU MALIBU ‘COBALT TENNESSEE CALIFORNIA AUSTRALIA KANSAS 5075 Kimberly Way 1 Malibu Court 813 Hope Court 1715 North 8th Street Loudon, TN 37774. Merced, CA 95341 Albury, N.S.W. 2640