Malibu Boats, Inc. · NASDAQ:MBUU
Malibu Boats — 2016 ICR Conference
24 slides from Malibu Boats's conference presentation, Jan 13, 2016
Slide 1: Malibu Boats, Inc. Investor Presentation - ICR
Malibu Boats, Inc. Investor Presentation - ICR January 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes “forward-looking statements,” within the meaning of the U.S. Securities Act of 1933, as amended and the U.S. Securities Act of 1934, as amended. All statements in this presentation that are not purely historical, including, without limitation, stateme
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 Free Cash Flow (“FCF”). These measures have limitations
Slide 4: Company Overview
COMPANY OVERVIEW The All-New Malibu 25 LSV 4
Slide 5: Investment Highlights
Investment Highlights At IPO - February 2014 December 2015 •Still #1 Market Share at approximately 32%; 1,100+ bps vs. •#1 Market Share in Performance Sport Boats closest competitor •Poised to Take Advantage of the Boating Market •Boat market has recovered another >10% with Malibu Recovery parti
Slide 6: Growth Company with Seven Straight Quarters of Performance Since IPO
Malibu: Growth Company with Seven Straight Quarters of Performance Since IPO NET SALES ($MM)(1) ADJUSTED EBITDA ($MM)(1)(2) 1. FYE June 30; F1Q ended Sep. 30th. 6 2. See Appendix for a reconciliation of Adjusted EBITDA to net income.
Slide 7: Broad, Differentiated Product Offering
Broad, Differentiated Product Offering Premium Performance / Recreational Boats Retail Price $60K – $180K Length 20 – 25 ft. 8 Models Ski Boats Length 20 – 21 ft. Length 20 –24 3 Models ft. 5 Models Entry Performance / Recreational Boats Retail Price $40K – $75K Retail Price $45K – $85K Tournament Q
Slide 8: Investment Highlights
INVESTMENT HIGHLIGHTS Launched in 2009
Slide 9: In the Early Stages of the Market Recovery
In the Early Stages of the Market Recovery NEW UNIT U.S. PERFORMANCE SPORT BOAT RETAIL SALES • U.S. performance sport boat sales grew 18% in 2014 • 2014 sales remained 39% below average annual new unit sales volume between 2001 and 2007 and 46% below the new units sold at the market peak in 2006 Sou
Slide 10: Performance Sports Boats Taking Share
Performance Sports Boats Taking Share Performance sport boats are capturing meaningful market share within the powerboat segment and the sterndrive category in particular • U.S. performance sport boat sales continue to grow meaningfully. The sterndrive market continues to struggle as the utility of
Slide 11: Market Share
Market Share #1 U.S. PERFORMANCE SPORT BOAT MARKET SHARE SIGNIFICANT SHARE GAINS FROM COMPETITORS Other • Capturing market share from our closest competitors through our innovative and • Leading U.S. performance sport boat diverse product offering market share from 2010 – 2015 • Key performance spor
Slide 12: Market Segmentation Analysis
Market Segmentation Analysis • We believe the premium segment accounts for approximately 75% of market size • Represents the largest market share opportunity • Is the emphasis of Malibu’s new product introductions for Model Year 2016 • Premium segment represented ~55% of the annual dollar growth 12
Slide 13: Model Year 2016 Target Markets
Model Year 2016 Target Markets • Malibu has introduced 4 2 New Models for MY2016 1 New Model for MY2016 new boats for MY2016 Axis A20 and Malibu 20 VTX Malibu 25 LSV • All 4 models address significant market share T a opportunities r T g • TARGET a e r t Malibu has a 0% market g share in the super p
Slide 14: The New Malibu M235
The New Malibu M235 14
Slide 15: Operational Excellence
Operational Excellence We believe we are the industry leader in operational excellence… …and our financial performance proves it • Competitive prices • Results in value for dealers = strong business model • Delivers value to end customers • Significant vertical integration • In-house machine shop wh
Slide 16: Financial Overview
FINANCIAL OVERVIEW 16
Slide 17: Proven Performance
Proven Performance NET SALES ($MM)(1) ADJUSTED EBITDA ($MM)(1)(2) 1. FYE June 30; F1Q ended Sep. 30th. 17 2. See Appendix for a reconciliation of Adjusted EBITDA to net income.
Slide 18: Adjusted Fully Distributed Net Income (AFDNI)
Adjusted Fully Distributed Net Income (AFDNI) • AFDNI per share grew 42% from fiscal year 2014 to 2015 • Q1 2016 AFDNI was 32% higher than Q1 2015 18
Slide 19: Free Cash Flow
Free Cash Flow • Strong free cash flow generation is a result of healthy operating margins and low capital requirements (recurring CapEx ~2% of sales) • Highly efficient working capital cycle FREE CASH FLOW ($MM)(1)(2) FCF% of 87% 91% 84% 86% 88% 81% 86% Adjusted EBITDA 1. FYE June 30; F1Q ended Sep
Slide 20: Long-Term Performance Targets
Long-Term Performance Targets METRIC TARGET Revenue Growth 10% + Adjusted EBITDA Margin 20% + Long-Term EPS Growth 15% + 20
Slide 21: Appendix
APPENDIX BEST-SELLING 23-FOOT PERFORMANCE SPORT BOAT IN THE HISTORY OF THE INDUSTRY
Slide 22: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income (Loss) to Non- GAAP Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow (Unaudited): Fiscal Year Ended June 30, Three Months Ended Sept 30, Twelve Months Ending September ($ in millions) 2012 2013 2014 2015 2014 2015 30, 2015 Net (Loss) Income $ 11,106 $ 17,984 $
Slide 23: Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income
Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited): Three Months Ended September 30, 2015 2014 Net income attributable to Malibu Boats, Inc. $ 3,558 $ 1,380 Income Tax Provision 1,986 907 1 Professional fees 170 2,551 2 Acquisition and integration related expenses 330 397 3
Slide 24: Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (footnotes)
Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited): (1) Represents legal and advisory fees related to our intellectual property litigation with Pacific Coast Marine Windshields Ltd., Nautique Boat Company, Inc., and MasterCraft Boat Company, LLC. (2) Represents legal and ad