Malibu Boats, Inc. · NASDAQ:MBUU
Malibu Boats — Q2 2015 Earnings Presentation
19 slides from Malibu Boats's earnings presentation, Feb 5, 2015
Slide 1: Second Quarter 2015 Earnings Results
MALIBU BOATS INC. Second Quarter 2015 Earnings Results February 5, 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation that are not purely historical, including statements regarding Malibu Boats, Inc.’s (“Malibu Boats”) intentions, hopes, beliefs, expectations, representations, projections, estimates, plans or predictions of the future are forward-looking 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 and Adjusted Fully Distributed Net Income. These measures have limitations as analytical tools and should not be considered
Slide 4: Jack Springer, Chief Executive Officer
MALIBU BOATS – EARNINGS RELEASE Jack Springer Chief Executive Officer MALIBU BOATS INC. + +2015: THE TRUTH IS ON THEINNOVATIONS MOST INDUSTRY WATER + THEINTRUTH IS ON EVER ONE YEAR, THE WATER + THE + 2015: MOSTTRUTH IS ONINNOVATIONS INDUSTRY THE WATER +INTHE ONETRUTH YEAR,ISEVER ON +THE 2
Slide 5: Net Sales and Quarter Commentary
Quarter Commentary Net Sales(2) • Record 2nd quarter net sales, gross profit, Adj. EBITDA, and EPS – Sales are up approximately 26% year-over-year • Slight net sales per unit decrease driven by consolidation – US Net sales per unit is up Adj. Fully Dist. Net Income (1) 1.6% • Negatively impacted by
Slide 6: Malibu Response LXR, Axis T23
Malibu Response LXR Axis T23 # + APPROACHING 40% MARKET SHARE IN NORTH AMERICA + APPROACHING 40% MARKET SHARE IN NORTH AMERICA +
Slide 7: Major Feature and Option Enhancements
G4 Tower Power Wedge II Malibu Viper II Dash MAJOR FEATURE AND OPTION ENHANCEMENTS + 60,000+ BOATS ON THE WATER—AND COUNTING + 60,000+ BOATS ON THE WATER—AND COUNTING + 60,000+ BOATS
Slide 8: Vertical Integration
Vertical Integration • Current Efforts – Towers – Board racks – Basic boat components • New Effort FY2016 – Trailers – CAPEX under $1mm – Attractive ROI + SURF GATE, THE ORIGINAL & BEST WAKESURF SYSTEM + SURF GATE, THE ORIGINAL & BEST WAKESURF SYSTEM + SURF
Slide 9: Market Commentary, Domestic Market Growth and Market Share
Market Commentary Domestic Market Growth (1) • Continued Retail Momentum – 1H Benefited from extended H1 CY2015 –15% selling season – 2H Growth expected to H2 CY2015 – Low double digit moderate – Boat show traffic and quality leads are up Market Share (1) • Dealer inventory is healthy – Estimated we
Slide 10: Key Takeaways
Key Takeaways • Boating industry in early innings of recovery and performance boat segment is outpacing • International challenges and positives • Reception of our new product, both models and features, is strong • Continuing to take advantage of investment opportunities – Australian acquisition – V
Slide 11: Wayne Wilson, Chief Financial Officer
MALIBU BOATS – EARNINGS RELEASE Wayne Wilson Chief Financial Officer MALIBU BOATS INC. # ++ 2015: 19 BOAT OF INDUSTRY MOST THE YEAR INNOVATIONS & 31 PRODUCTINEXCELLENCE ONE YEAR, AWARDS EVER + +2015: 19 BOAT MOSTOFINDUSTRY THE YEARINNOVATIONS & 31 PRODUCT IN EXCELLENCE AWA ONE YEAR, EVER
Slide 12: Net Sales and Volume Growth, Net Sales per Unit
Net Sales – 26.3% Growth (1) Volume – 27.9% Growth (1) Net Sales per Unit US – 1.6% Growth Net Sale per Unit Components • Year-over-year price increases • Increased optional feature selection • Offset by increased Axis mix compared to LY (1) The blue section of the graph represents incremental resul
Slide 13: Mix Comparison, Gross Profit and Adjusted Gross Margin
Mix Comparison Gross Profit – 20.9% Growth(1) Adjusted Gross Margin(1)(2) (1) Gross Profit adjusted for Australia acquisition related cost of goods sold of $577k. (2) The blue section of the graph represents incremental results from our Australian Licensee acquired on October 23, 2014. …AND PERFORMA
Slide 14: Adjusted EBITDA
Adjusted EBITDA – 19.9% Increase (1) Adj. EBITDA – Comparable Basis (1) (2) Adjusted EBITDA • Strong growth driven by increased volume and Australia acquisition • When adjusted for incremental public company expenses incurred in FY15 and not FY14 – Up ~25% (1) See Appendix for a reconciliation of No
Slide 15: Full Year Outlook
Full Year Outlook Metric Target Change Unit Volume Mid to high single digit – US Unchanged 180 Units – Australia Volume Growth Profile Accelerating through Q3 Unchanged Mix Axis slightly over 30% Unchanged Net Sale per Unit Low to mid single digits – US Unchanged Low single digits – Consolidated Gro
Slide 16: Appendix
APPENDIX ++ 2015: 2015: MOST MOST INDUSTRY INDUSTRY INNOVATIONS INNOVATIONS IN IN ONE ONE YEAR, YEAR, EVER EVER ++ 2015: 2015: MOST MOST INDUSTRY INDUSTRY INNOVATIONS INNOVATIONS IN IN ONE ONE YEAR, YEAR, EVER EVER
Slide 17: Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and 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 18: Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income
Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited): The following table sets forth a reconciliation of net income attributable to Malibu Boats, Inc. stockholders to Adjusted Fully Distributed Net Income for the periods presented (dollars in thousands, except per share data)
Slide 19: Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Footnotes)
Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited): (1) Represents management fees and out-of-pocket expenses paid pursuant to our management agreement with Malibu Boats Investor, LLC, an affiliate, which was terminated upon the closing of the IPO. (2) Represents legal and