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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