Malibu Boats, Inc. · NASDAQ:MBUU
Malibu Boats — Q1 FY2021 Earnings Presentation
21 slides from Malibu Boats's earnings presentation, Nov 6, 2020
Slide 1: Malibu Boats, Inc. First Quarter Fiscal 2021 Earnings Results
1 Malibu Boats, Inc. First Quarter Fiscal 2021 Earnings Results November 6, 2020
Slide 2: Forward Looking Statements
2 FORWARD LOOKING STATEMENTS 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,
Slide 3: Use & Definition of Non-GAAP Financial Measure
3 USE & DEFINITION OF NON-GAAP FINANCIAL MEASURE 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 me
Slide 4: Three Months Ended Fiscal Q1 2021
4 THREE MONTHS ENDED FISCAL Q1 2021 AFDNI PER SHARE (1) • Delivered strong results that exceeded expectations $1.13 and delivered market share gains $0.83 • Net sales are up 5.2% year-over-year to $181.0 million Q1 FY20 Q1 FY21 ◦ Supported by strong demand, an efficient production restart, operation
Slide 5: Key Takeaways
5 KEY TAKEAWAYS • Outperformed the industry and drove market share gains in the first quarter as a result of our strategic and operational expertise • New consumers and lifelong enthusiasts continued to drive demand to historic levels • Saw a strong market at retail, with margin growth driven by con
Slide 6: Market Commentary
6 MARKET COMMENTARY Domestic Market Market Share • Marine industry has experienced significant Expected Growth tailwinds as a result of COVID-19 CY20(1) • Malibu #1 in Premium, Entry and Total • First-time boaters and lifelong enthusiasts • Malibu/Axis market performance sport boats continue to driv
Slide 7: New Product Introductions
7 NEW PRODUCT INTRODUCTIONS Cobalt R6, R6 O/B and R8 Malibu M220 Malibu Wakesetter 23 LSV Malibu fast-fill ballast system Pursuit S428
Slide 8: Cobalt & Pursuit Facility Expansion
8 COBALT & PURSUIT FACILITY EXPANSION • Expansion of our cruiser plant and small boat plant is complete • New Pursuit large boat plant is up and running, where we are • The third and last phase of our plant improvement is now manufacturing the new S 378 and other larger models over 32 underway, whic
Slide 9: Operational Excellence & Vertical Integration
9 OPERATIONAL EXCELLENCE & VERTICAL INTEGRATION OPERATIONAL EXCELLENCE VERTICAL INTEGRATION • Culture centered on superior employees building the highest • Vertical integration strategy is a competitive differentiator across quality products in the most efficient manner all brands, driving overall g
Slide 10: Malibu's Growth Strategy
10 MALIBU’S GROWTH STRATEGY STRATEGIC ACQUISITIONS OF PREMIUM VERTICAL COMPANIES INTEGRATION PRODUCT & DISTRIBUTION WHITE INNOVATION SPACES
Slide 11: 1st Quarter Fiscal 2021 Comparable Results
11 1ST QUARTER FISCAL 2021 COMPARABLE RESULTS NET SALES VOLUME $172.1 $181.0 1,727 1,635 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 NET SALES PER UNIT MIX COMPARISON $110.7 Q1 FY20 Q1 FY21 $99.6 Malibu/Axis: Malibu/Axis: 58.7% 63.1% Pursuit: 8.9% Pursuit: 8.3% Q1 FY20 Q1 FY21 Cobalt: 33.0% Cobalt: 28.0%
Slide 12: 1st Quarter Fiscal 2021 Comparable Results
12 1ST QUARTER FISCAL 2021 COMPARABLE RESULTS GROSS MARGIN GROSS PROFIT 25.3% $45.7 23.2% $40.0 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 ADJ EBITDA MARGIN (1) ADJ. EBITDA (1) 20.1% $36.3 16.5% $28.4 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 1.See Appendix for a reconciliation of Non-GAAP Adjusted EBITDA to Net Income.
Slide 13: FY21 Full Year Outlook
13 FY21 FULL YEAR OUTLOOK METRIC TARGET Consolidated Net Sales Up ~20% Adjusted EBITDA Margin Approaching ~20%
Slide 14: Long-Term Financial Targets
14 LONG-TERM FINANCIAL TARGETS METRIC TARGET Annual Net Sales Growth ~10% Adjusted EBITDA Margin % >20% Long-term EPS Annual Growth >15%
Slide 15: Appendix
APPENDIX o>) Four Iconic Brands, One Great Company PURSUIT
Slide 16: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin
16 RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN 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 Months Ende
Slide 17: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin
17 RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (1) Represents legal and advisory fees related to our litigation with Skier's Choice, Inc. (2) Represents equity-based incentives awarded to key employees under the Malibu Boats, Inc. Long-Term Incentive Plan and
Slide 18: Reconciliation of Net Income to Adjusted Fully Distributed Net Income
18 RECONCILIATION OF NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK TO ADJUSTED FULLY DISTRIBUTED NET INCOME OF CLASS A COMMON STOCK (UNAUDITED): The following table sets forth a reconciliation of net income attributable to Malibu Boats, Inc. to Adjusted Fully Distributed Net Income for the periods
Slide 19: Reconciliation of Net Income to Adjusted Fully Distributed Net Income
19 RECONCILIATION OF NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK TO ADJUSTED FULLY DISTRIBUTED NET INCOME OF CLASS A COMMON STOCK (UNAUDITED): The following table sets forth a reconciliation of net income attributable to Malibu Boats, Inc. to Adjusted Fully Distributed Net Income for the periods
Slide 20: Reconciliation of Net Income to Adjusted Fully Distributed Net Income
20 RECONCILIATION OF NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK TO ADJUSTED FULLY DISTRIBUTED NET INCOME OF CLASS A COMMON STOCK (UNAUDITED): The following table sets forth a reconciliation of net income attributable to Malibu Boats, Inc. to Adjusted Fully Distributed Net Income for the periods
Slide 21: Reconciliation of Net Income to Adjusted Fully Distributed Net Income
21 RECONCILIATION OF NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK TO ADJUSTED FULLY DISTRIBUTED NET INCOME OF CLASS A COMMON STOCK (UNAUDITED): (1) Represents legal and advisory fees related to our litigation with Skier's Choice, Inc. (2) For the three months ended September 30, 2020 and 2019, re