The following is a summary of the Malibu Boats, Inc. (MBUU) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Malibu Boats reported a decrease in Q3 net sales by 46% to $203.4 million compared to the previous year.

• Adjusted EBITDA fell by 69% to $24.4 million, and gross margins decreased by 650 basis points to 20%.

• Consolidated net sales per unit increased 12.7% to $160,299 per unit owing to inflation.

• Despite a revenue decrease over 40%, the company generated a free cash flow of $12 million, indicating resilience in their business model.

Business Progress:

• Amid economic uncertainties, Malibu Boats has seen gains in its Cobalt's brand share over the year.

• The company plans to consolidate production and cut capita expenditure to improve free cash flow.

• They plan to return at least $40 million annually to shareholders via share buybacks and/or dividends in fiscal year '25.

• The focus is also on building their M&A pipeline, expecting to pursue accretive acquisitions aided by their cash flow profile and unlevered balance sheet.

• Despite seeing a softened retail environment, they anticipate better performance from Cobalt and Pursuit brands and aim to stimulate consumer demand with increased promotional activities.

• With confidence in their long-term strategy, the company plans proactive capital allocation for stock buybacks and potentially attractive acquisitions.

More details: Malibu Boats IR

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