Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2020 | Nov. 03, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36290 | |
Entity Registrant Name | MALIBU BOATS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 5075 Kimberly Way, | |
Entity Address, City or Town | Loudon, | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37774 | |
Entity Tax Identification Number | 46-4024640 | |
City Area Code | (865) | |
Local Phone Number | 458-5478 | |
Title of 12(b) Security | Class A Common Stock, par value $0.01 | |
Trading Symbol | MBUU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001590976 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --06-30 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 20,720,683 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 13 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 180,984 | $ 172,080 |
Cost of sales | 135,243 | 132,079 |
Gross profit | 45,741 | 40,001 |
Operating expenses: | ||
Selling and marketing | 3,612 | 5,066 |
General and administrative | 11,654 | 10,668 |
Amortization | 1,524 | 1,584 |
Operating income | 28,951 | 22,683 |
Other (income) expense, net: | ||
Other income, net | (10) | (10) |
Interest expense | 556 | 1,167 |
Other (income) expense, net | 546 | 1,157 |
Income before provision for income taxes | 28,405 | 21,526 |
Provision for income taxes | 6,367 | 4,844 |
Net income | 22,038 | 16,682 |
Net income attributable to non-controlling interest | 945 | 823 |
Net income attributable to Malibu Boats, Inc. | 21,093 | 15,859 |
Comprehensive income: | ||
Net income | 22,038 | 16,682 |
Other comprehensive income (loss), net of tax: | ||
Change in cumulative translation adjustment | 630 | (623) |
Other comprehensive income (loss), net of tax | 630 | (623) |
Comprehensive income, net of tax | 22,668 | 16,059 |
Less: comprehensive income attributable to non-controlling interest, net of tax | 972 | 792 |
Comprehensive income attributable to Malibu Boats, Inc., net of tax | $ 21,696 | $ 15,267 |
Weighted average shares outstanding used in computing net income per share: | ||
Basic (in shares) | 20,651,929 | 20,830,121 |
Diluted (in shares) | 20,864,646 | 20,928,741 |
Earnings Per Share [Abstract] | ||
Basic (in dollars per share) | $ 1.02 | $ 0.76 |
Diluted (in dollars per share) | $ 1.01 | $ 0.76 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 |
Current assets | ||
Cash | $ 52,438 | $ 33,787 |
Trade receivables, net | 31,031 | 13,767 |
Inventories, net | 80,053 | 72,946 |
Prepaid expenses and other current assets | 5,925 | 3,954 |
Total current assets | 169,447 | 124,454 |
Property, plant and equipment, net | 95,741 | 94,310 |
Goodwill | 51,511 | 51,273 |
Other intangible assets, net | 138,421 | 139,892 |
Deferred tax assets | 51,075 | 52,935 |
Other assets | 14,023 | 14,482 |
Total assets | 520,218 | 477,346 |
Current liabilities | ||
Accounts payable | 31,292 | 15,846 |
Accrued expenses | 58,316 | 50,485 |
Income taxes and tax distribution payable | 4,088 | 243 |
Payable pursuant to tax receivable agreement, current portion | 3,589 | 3,589 |
Total current liabilities | 97,285 | 70,163 |
Deferred tax liabilities | 0 | 14 |
Other liabilities | 17,451 | 16,727 |
Payable pursuant to tax receivable agreement, less current portion | 46,406 | 46,076 |
Long-term debt | 74,141 | 82,839 |
Total liabilities | 235,283 | 215,819 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred Stock, par value $0.01 per share; 25,000,000 shares authorized; no shares issued and outstanding as of September 30, 2020 and June 30, 2020 | 0 | 0 |
Additional paid in capital | 105,228 | 103,797 |
Accumulated other comprehensive loss | (2,502) | (3,132) |
Accumulated earnings | 174,804 | 153,711 |
Total stockholders' equity attributable to Malibu Boats, Inc. | 277,734 | 254,580 |
Non-controlling interest | 7,201 | 6,947 |
Total stockholders’ equity | 284,935 | 261,527 |
Total liabilities and stockholders' equity | 520,218 | 477,346 |
Class A Common Stock | ||
Stockholders' Equity | ||
Common stock | 204 | 204 |
Class B Common Stock | ||
Stockholders' Equity | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2020 | Jun. 30, 2020 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 20,630,438 | 20,595,969 |
Common stock, shares, outstanding (in shares) | 20,630,438 | 20,595,969 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 13 | 15 |
Common stock, shares, outstanding (in shares) | 13 | 15 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Additional Paid In Capital | Accumulated Other Comprehensive Loss | Accumulated Earnings | Accumulated EarningsCumulative Effect, Period of Adoption, Adjustment | Non-controlling Interest in LLC | Class A Common Stock | Class A Common StockCommon Stock | Class B Common Stock | Class B Common StockCommon Stock |
Beginning balance (in shares) at Jun. 30, 2019 | 20,853,000 | 15 | |||||||||
Beginning balance at Jun. 30, 2019 | $ 210,353 | $ (1,703) | $ 113,004 | $ (2,828) | $ 93,852 | $ (1,703) | $ 6,118 | $ 207 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 16,682 | 15,859 | 823 | ||||||||
Stock based compensation, net of withholding taxes on vested equity awards (in shares) | (5,000) | ||||||||||
Stock based compensation, net of withholding taxes on vested equity awards | 435 | 435 | |||||||||
Issuances of equity for services | 80 | 80 | |||||||||
Repurchase and retirement of common stock (in shares) | (383,000) | ||||||||||
Repurchase and retirement of common stock | (11,123) | (11,119) | $ (4) | ||||||||
Distributions to LLC Unit holders | (399) | (399) | |||||||||
Foreign currency translation adjustment | (648) | (623) | (25) | ||||||||
Ending balance (in shares) at Sep. 30, 2019 | 20,465,000 | 15 | |||||||||
Ending balance at Sep. 30, 2019 | 213,677 | 102,400 | (3,451) | 108,008 | 6,517 | $ 203 | $ 0 | ||||
Beginning balance (in shares) at Jun. 30, 2020 | 20,595,969 | 20,596,000 | 15 | 15 | |||||||
Beginning balance at Jun. 30, 2020 | 261,527 | 103,797 | (3,132) | 153,711 | 6,947 | $ 204 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 22,038 | 21,093 | 945 | ||||||||
Stock based compensation, net of withholding taxes on vested equity awards (in shares) | (3,000) | ||||||||||
Stock based compensation, net of withholding taxes on vested equity awards | 658 | 658 | |||||||||
Issuances of equity for services | $ 59 | 59 | |||||||||
Issuances of equity for exercise of stock options (in shares) | 9,625 | 9,000 | |||||||||
Issuances of equity for exercise of stock options | $ 300 | 300 | |||||||||
Increase in payable pursuant to the tax receivable agreement | (330) | (330) | |||||||||
Increase in deferred tax asset from step-up in tax basis | 480 | 480 | |||||||||
Exchange of LLC Units for Class A Common Stock (in shares) | 28,000 | (2) | |||||||||
Exchange of LLC Units for Class A Common Stock | 0 | 264 | (264) | ||||||||
Distributions to LLC Unit holders | (449) | (449) | |||||||||
Foreign currency translation adjustment | 652 | 630 | 22 | ||||||||
Ending balance (in shares) at Sep. 30, 2020 | 20,630,438 | 20,630,000 | 13 | 13 | |||||||
Ending balance at Sep. 30, 2020 | $ 284,935 | $ 105,228 | $ (2,502) | $ 174,804 | $ 7,201 | $ 204 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities: | ||
Net income | $ 22,038 | $ 16,682 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Non-cash compensation expense | 811 | 677 |
Non-cash compensation to directors | 210 | 207 |
Depreciation | 3,486 | 3,097 |
Amortization | 1,524 | 1,584 |
Deferred income taxes | 2,325 | 1,454 |
Other items, net | 439 | 696 |
Change in operating assets and liabilities: | ||
Trade receivables | (17,247) | 4,817 |
Inventories | (6,939) | (7,626) |
Prepaid expenses and other assets | (3,032) | (1,728) |
Accounts payable | 16,001 | 8,378 |
Income taxes payable | 4,228 | 1,979 |
Accrued expenses | 8,184 | (2,029) |
Other liabilities | 734 | (475) |
Net cash provided by operating activities | 32,762 | 27,713 |
Investing activities: | ||
Purchases of property, plant and equipment | (5,432) | (10,704) |
Net cash used in investing activities | (5,432) | (10,704) |
Financing activities: | ||
Payments on revolving credit facility | (8,800) | 0 |
Proceeds received from exercise of stock option | 300 | 0 |
Cash paid for withholding taxes on vested restricted stock | (148) | (239) |
Distributions to LLC Unit holders | (104) | (568) |
Repurchase and retirement of common stock | 0 | (11,123) |
Net cash used in financing activities | (8,752) | (11,930) |
Effect of exchange rate changes on cash | 73 | (126) |
Changes in cash | 18,651 | 4,953 |
Cash—Beginning of period | 33,787 | 27,392 |
Cash—End of period | 52,438 | 32,345 |
Supplemental cash flow information: | ||
Cash paid for interest | 454 | 1,169 |
Cash paid for income taxes | $ 53 | $ 597 |
Organization, Basis of Presenta
Organization, Basis of Presentation, and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation, and Summary of Significant Accounting Policies | Organization, Basis of Presentation, and Summary of Significant Accounting Policies Organization Malibu Boats, Inc. (together with its subsidiaries, the “Company” or "Malibu"), a Delaware corporation formed on November 1, 2013, is the sole managing member of Malibu Boats Holdings, LLC, a Delaware limited liability company (the "LLC"). The Company operates and controls all of the LLC's business and affairs and, therefore, pursuant to Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) Topic 810, Consolidation, consolidates the financial results of the LLC and its subsidiaries, and records a non-controlling interest for the economic interest in the Company held by the non-controlling holders of units in the LLC ("LLC Units"). Malibu Boats Holdings, LLC was formed in 2006. The LLC, through its wholly owned subsidiary, Malibu Boats, LLC, is engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, recreational powerboats that are sold through a world-wide network of independent dealers. The Company currently sells its boats under four brands -- Malibu, Axis, Cobalt and Pursuit. The Company reports its results of operations under three reportable segments -- Malibu, Cobalt and Pursuit. COVID-19 Pandemic The COVID-19 pandemic has impacted the Company’s operations and financial results since the third quarter of fiscal year 2020 and continues to impact the Company. The Company elected to suspend operations at all of its facilities on March 24, 2020. The shut-down continued into the fourth quarter 2020 with operations resuming between late April and early May, depending on the facility. As a result, the Company was not able to ship boats to its dealers during the period of shut-down, which negatively impacted its net sales for the second half of fiscal year 2020. In addition, the COVID-19 pandemic has impacted and may continue to impact the operations of the Company’s dealers and suppliers. The future impact of COVID-19 on the Company’s financial condition and results of operations will depend on a number of factors, including factors that we may not be able to forecast at this time. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim condensed financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with GAAP for complete financial statements. Such statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Malibu Boats, Inc. and subsidiaries for the year ended June 30, 2020, included in the Company's Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments considered necessary to present fairly the Company’s financial position at September 30, 2020, and the results of its operations for the three month periods ended September 30, 2020 and 2019, and its cash flows for the three month periods ended September 30, 2020 and 2019. Operating results for the three months ended September 30, 2020, are not necessarily indicative of the results that may be expected for the full year ending June 30, 2021. Units and shares are presented as whole numbers while all dollar amounts are presented in thousands, unless otherwise noted. Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements include the operations and accounts of the Company and all subsidiaries thereof. All intercompany balances and transactions have been eliminated upon consolidation. Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and in November 2018 issued a subsequent amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. ASU 2018-19 will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of this amendment that have the contractual right to receive cash. On July 1, 2020, the Company adopted this standard and the adoption did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. There are no other new accounting pronouncements that are expected to have a significant impact on the Company's consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following table disaggregates the Company's revenue by major product type and geography: Three Months Ended September 30, 2020 Malibu Cobalt Pursuit Consolidated Revenue by product: Boat and trailer sales $ 93,994 $ 43,405 $ 36,403 $ 173,802 Part and other sales 5,837 1,077 268 7,182 Total revenue $ 99,831 $ 44,482 $ 36,671 $ 180,984 Revenue by geography: North America $ 95,918 $ 43,953 $ 35,750 $ 175,621 International 3,913 529 921 5,363 Total revenue $ 99,831 $ 44,482 $ 36,671 $ 180,984 Three Months Ended September 30, 2019 Malibu Cobalt Pursuit Consolidated Revenue by product: Boat and trailer sales $ 82,083 $ 49,300 $ 35,806 $ 167,189 Part and other sales 3,797 851 243 4,891 Total revenue $ 85,880 $ 50,151 $ 36,049 $ 172,080 Revenue by geography: North America $ 78,917 $ 48,758 $ 32,251 $ 159,926 International 6,963 1,393 3,798 12,154 Total revenue $ 85,880 $ 50,151 $ 36,049 $ 172,080 Boat and Trailer Sales Consists of sales of boats and trailers to the Company's dealer network, net of sales returns, discounts, rebates and free flooring incentives. Boat and trailer sales also includes optional boat features. Sales returns consist of boats returned by dealers under our warranty program. Rebates, free flooring and discounts are incentives that the Company provides to its dealers based on sales of eligible products. Part and Other Sales Consists primarily of parts and accessories sales, royalty income and clothing sales. Parts and accessories sales include replacement and aftermarket boat parts and accessories sold to the Company's dealer network. Royalty income is earned from license agreements with various boat manufacturers, including Nautique, Chaparral, Mastercraft, and Tige related to the use of the Company's intellectual property. |
Non-controlling Interest
Non-controlling Interest | 3 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interest | Non-controlling InterestThe non-controlling interest on the unaudited interim condensed consolidated statement of operations and comprehensive income represents the portion of earnings attributable to the economic interest in the Company's subsidiary, Malibu Boats Holdings, LLC, held by the non-controlling LLC Unit holders. Non-controlling interest on the unaudited interim condensed consolidated balance sheets represents the portion of net assets of the Company attributable to the non-controlling LLC Unit holders, based on the portion of the LLC Units owned by such Unit holders. The ownership of Malibu Boats Holdings, LLC is summarized as follows: As of September 30, 2020 As of June 30, 2020 Units Ownership % Units Ownership % Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC 702,869 3.3 % 730,652 3.4 % Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC 20,630,438 96.7 20,595,969 96.6 21,333,307 100.0 % 21,326,621 100.0 % Issuance of Additional LLC Units Under the first amended and restated limited liability company agreement of the LLC, as amended (the "LLC Agreement"), the Company is required to cause the LLC to issue additional LLC Units to the Company when the Company issues additional shares of Class A Common Stock. Other than in connection with the issuance of Class A Common Stock in connection with an equity incentive program, the Company must contribute to the LLC net proceeds and property, if any, received by the Company with respect to the issuance of such additional shares of Class A Common Stock. The Company must cause the LLC to issue a number of LLC Units equal to the number of shares of Class A Common Stock issued such that, at all times, the number of LLC Units held by the Company equals the number of outstanding shares of Class A Common Stock. During the three months ended September 30, 2020, the Company caused the LLC to issue a total of 37,408 LLC Units to the Company in connection with (i) the issuance of Class A Common Stock to LLC Unit holders in exchange of their LLC Units and (ii) the issuance of Class A Common Stock for the exercise of options granted under the Malibu Boats, Inc. Incentive Plan. During the three months ended September 30, 2020, 2,939 LLC Units were canceled in connection with the vesting of share-based equity awards to satisfy employee tax withholding requirements and the retirement of 2,939 treasury shares in accordance with the LLC Agreement. Distributions and Other Payments to Non-controlling Unit Holders Distributions for Taxes As a limited liability company (treated as a partnership for income tax purposes), Malibu Boats Holdings, LLC does not incur significant federal, state or local income taxes, as these taxes are primarily the obligations of its members. As authorized by the LLC Agreement, the LLC is required to distribute cash, to the extent that the LLC has cash available, on a pro rata basis, to its members to the extent necessary to cover the members’ tax liabilities, if any, with respect to their share of LLC earnings. The LLC makes such tax distributions to its members based on an estimated tax rate and projections of taxable income. If the actual taxable income of the LLC multiplied by the estimated tax rate exceeds the tax distributions made in a calendar year, the LLC may make true-up distributions to its members, if cash or borrowings are available for such purposes. As of September 30, 2020 and June 30, 2020, tax distributions payable to non-controlling LLC Unit holders were $449 a nd $104, respectively. During the three months ended September 30, 2020 and 2019, tax distributions paid to the non-controlling LLC Unit holders were $104 and $568, respectively. Other Distributions Pursuant to the LLC Agreement, the Company has the right to determine when distributions will be made to LLC members and the amount of any such distributions. If the Company authorizes a distribution, such distribution will be made to the members of the LLC (including the Company) pro rata in accordance with the percentages of their respective LLC units. |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consisted of the following: As of September 30, 2020 As of June 30, 2020 Raw materials $ 55,140 $ 52,530 Work in progress 14,758 10,778 Finished goods 10,155 9,638 Total inventories $ 80,053 $ 72,946 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net consisted of the following: As of September 30, 2020 As of June 30, 2020 Land $ 2,540 $ 2,540 Building and leasehold improvements 56,597 54,318 Machinery and equipment 54,806 55,831 Furniture and fixtures 7,344 7,031 Construction in process 10,750 10,470 132,037 130,190 Less: Accumulated depreciation (36,296) (35,880) Property, plant and equipment, net $ 95,741 $ 94,310 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill for the three months ended September 30, 2020 were as follows: Goodwill as of June 30, 2020 $ 51,273 Effect of foreign currency changes on goodwill 238 Goodwill as of September 30, 2020 $ 51,511 The components of other intangible assets were as follows: As of September 30, 2020 As of June 30, 2020 Estimated Useful Life (in years) Weighted Average Remaining Useful Life Definite-lived intangibles: Dealer relationships $ 111,377 $ 111,293 8 - 20 17.0 Patent 3,986 3,986 12-15 11.8 Trade name 24,667 24,667 15 1.2 Non-compete agreement 50 48 10 4.1 Total 140,080 139,994 Less: Accumulated amortization (65,159) (63,602) Total definite-lived intangible assets, net 74,921 76,392 Indefinite-lived intangible: Trade name 63,500 63,500 Total other intangible assets, net $ 138,421 $ 139,892 Amortization expense recognized on all amortizable intangibles was $1,524 and $1,584 for the three months ended September 30, 2020 and 2019, respectively. The estimated future amortization of definite-lived intangible assets is as follows: Fiscal years ending June 30: Amount Remainder of 2021 $ 4,536 2022 4,559 2023 4,422 2024 4,422 2025 4,419 2026 and thereafter 52,563 $ 74,921 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following: As of September 30, 2020 As of June 30, 2020 Warranties $ 29,077 $ 27,500 Dealer incentives 11,201 7,777 Accrued compensation 9,347 9,885 Current operating lease liabilities 1,983 2,006 Accrued legal and professional fees 2,181 1,055 Other accrued expenses 4,527 2,262 Total accrued expenses $ 58,316 $ 50,485 |
Product Warranties
Product Warranties | 3 Months Ended |
Sep. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties Malibu and Axis brand boats have a limited warranty for a period up to five years for both Malibu and Axis brand boats. The Company’s Cobalt brand boats have (1) a structural warranty of up to ten years which covers the hull, deck joints, bulkheads, floor, transom, stringers, and motor mount and (2) a five The Company’s standard warranties require it or its dealers to repair or replace defective products during the warranty period at no cost to the consumer. The Company estimates warranty costs it expects to incur and records a liability for such costs at the time the product revenue is recognized. The Company utilizes historical claims trends and analytical tools to develop the estimate of its warranty obligation on a per boat basis, by brand and warranty year. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Beginning in model year 2016, the Company increased the term of its limited warranty for Malibu brand boats from three years to five years and for Axis brand boats from two years to five years. Beginning in model year 2018, the Company increased the term of its bow-to-stern warranty for Cobalt brand boats from three years to five years. As a result of these changes, all of the Company’s Malibu, Axis and Cobalt brand boats with historical claims experience that are no longer covered under warranty had warranty terms shorter than the current warranty term of five years. Accordingly, the Company has little to no historical claims experience for warranty years four and five, and as such, these estimates give rise to a higher level of estimation uncertainty. Future warranty claims may differ from the Company’s estimate of the warranty liability, which could lead to changes in the Company’s warranty liability in future periods. Changes in the Company’s product warranty liability, which is included in accrued expenses on the unaudited interim condensed consolidated balance sheets, were as follows: Three Months Ended September 30, 2020 2019 Beginning balance $ 27,500 $ 23,820 Add: Warranty expense 4,855 3,906 Less: Warranty claims paid (3,278) (2,692) Ending balance $ 29,077 $ 25,034 |
Financing
Financing | 3 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Financing | Financing Outstanding debt consisted of the following: As of September 30, 2020 As of June 30, 2020 Term loan $ 75,000 $ 75,000 Revolving credit loan — 8,800 Less unamortized debt issuance costs (859) (961) Total debt 74,141 82,839 Less current maturities — — Long-term debt less current maturities $ 74,141 $ 82,839 Long-Term Debt The Company currently has a revolving credit facility with borrowing capacity of up to $120,000 and a $75,000 term loan outstanding. As of September 30, 2020, the Company had no amounts outstanding under its revolving credit facility and $1,185 in outstanding letters of credit. The Company repaid $8,800 on the revolving credit facility in September 2020. The revolving credit facility matures on July 1, 2024 and the term loan matures on July 1, 2022. The revolving credit facility and term loan are governed by a credit agreement (the “Credit Agreement”) with Malibu Boats, LLC (“Boats LLC”) as the borrower and Truist Financial Corp., as the administrative agent, swingline lender and issuing bank. The obligations of Boats LLC under the Credit Agreement are guaranteed by the LLC, and, subject to certain exceptions, the present and future domestic subsidiaries of Boats LLC, and all such obligations are secured by substantially all of the assets of the LLC, Boats LLC and such subsidiary guarantors. Malibu Boats, Inc. is not a party to the Credit Agreement. Borrowings under the Credit Agreement bear interest at a rate equal to either, at the Company's option, (i) the highest of the prime rate, the Federal Funds Rate plus 0.5%, or one-month LIBOR plus 1% (the “Base Rate”) or (ii) LIBOR, in each case plus an applicable margin ranging from 1.25% to 2.25% with respect to LIBOR borrowings and 0.25% to 1.25% with respect to Base Rate borrowings. The applicable margin will be based upon the consolidated leverage ratio of the LLC and its subsidiaries calculated on a consolidated basis. As of September 30, 2020, the interest rate on the Company’s term loan and revolving credit facility was 1.40%. The Company is required to pay a commitment fee for any unused portion of the revolving credit facility which will range from 0.20% to 0.40% per annum, depending on the LLC’s and its subsidiaries’ consolidated leverage ratio. The Credit Agreement permits prepayment of the term loan without any penalties. On August 17, 2017 the Company made a voluntary principal payment on the term loan in the amount of $50,000 with a portion of the net proceeds from its equity offering completed on August 14, 2017. The Company exercised its option to apply the prepayment in forward order to principal installments on its term loan through December 31, 2021 and a portion of the principal installments due on March 31, 2022. As a result, the term loan is subject to a quarterly installment of approximately $3,000 on March 31, 2022 and the balance of the term loan is due on the scheduled maturity date of July 1, 2022. The Credit Agreement is also subject to prepayments from the net cash proceeds received by Boats LLC or any guarantors from certain asset sales and recovery events, subject to certain reinvestment rights, and from excess cash flow, subject to the terms and conditions of the Credit Agreement. As of September 30, 2020, the outstanding principal amount of the Company’s term loan and revolving credit facility was $75,000. The Credit Agreement contains certain customary representations and warranties, and notice requirements for the occurrence of specific events such as the occurrence of any event of default, or pending or threatened litigation. The Credit Agreement also requires compliance with certain customary financial covenants, including a minimum ratio of EBITDA to fixed charges and a maximum ratio of total debt to EBITDA. The Credit Agreement contains certain restrictive covenants, which, among other things, place limits on certain activities of the loan parties under the Credit Agreement, such as the incurrence of additional indebtedness and additional liens on property and limit the future payment of dividends or distributions. For example, the Credit Agreement generally prohibits the LLC, Boats LLC and the subsidiary guarantors from paying dividends or making distributions, including to the Company. The credit facility permits, however, (i) distributions based on a member’s allocated taxable income, (ii) distributions to fund payments that are required under the LLC’s tax receivable agreement, (iii) purchase of stock or stock options of the LLC from former officers, directors or employees of loan parties or payments pursuant to stock option and other benefit plans up to $2,000 in any fiscal year, and (iv) share repurchase payments up to $35,000 in any fiscal year subject to one-year carry forward and compliance with other financial covenants. In addition, the LLC may make dividends and distributions of up to $10,000 in any fiscal year, subject to compliance with other financial covenants. In connection with entering into the Credit Agreement, the Company capitalized $2,074 in deferred financing costs during fiscal 2017. These costs, in addition to the unamortized balance related to costs associated with the Company's previous credit facility of $671, are being amortized over the term of the Credit Agreement into interest expense using the effective interest method and presented as a direct offset to the total debt outstanding on the consolidated balance sheet. As described above, the Company used proceeds from an offering on August 24, 2017 to repay $50,000 on its term loan under the Credit Agreement and exercised its option to apply the prepayment to principal installments through December 31, 2021, and a portion of principal installments due on March 31, 2022. Accordingly, no principal payments are required under the Credit Agreement until March 31, 2022, and as such, all borrowings as of September 30, 2020 and June 30, 2020, are reflected as noncurrent. The $50,000 repayment resulted in a write off of deferred financing costs of $829 in fiscal year 2018, which was included in amortization expense on the consolidated statement of operations and comprehensive income. Covenant Compliance As of September 30, 2020, the Company was in compliance with the covenants contained in the Credit Agreement. Interest Rate Swap On July 1, 2015, the Company entered into a five Derivatives and Hedging, all derivative instruments are recorded on the unaudited interim condensed consolidated balance sheets at fair value as either short term or long term assets or liabilities based on their anticipated settlement date. The Company has elected not to designate its interest rate swap as a hedge for accounting purposes; therefore, changes in the fair value of the derivative instrument were being recognized in earnings in the Company's unaudited interim condensed consolidated statements of operations and comprehensive income. The swap matured on March 31, 2020. For the three months ended September 30, 2019, the Company recorded a loss of $38 for the change in fair value of the interest rate swap, which was included in interest expense in the unaudited interim condensed consolidated statements of operations and comprehensive income. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain manufacturing facilities, warehouses, office space, land, and equipment. The Company determines if a contract is a lease or contains an embedded lease at the inception of the agreement. The Company recorded right-of-use assets, included in other assets on the balance sheet, totaling $16,142 as of July 1, 2019. Leases with an initial term of 12 months or less are not recorded on the unaudited interim condensed consolidated balance sheet. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The Company's lease liabilities do not include future lease payments related to options to extend or terminate lease agreements as it is not reasonably certain those options will be exercised. Other information concerning the Company's operating leases accounted for under ASC Topic 842, Leases is as follows (in thousands): Classification As of September 30, 2020 As of June 30, 2020 Assets Right-of-use assets Other assets $ 13,867 $ 14,315 Liabilities Current operating lease liabilities Accrued expenses $ 1,983 $ 2,006 Long-term operating lease liabilities Other liabilities 13,568 14,013 Total lease liabilities $ 15,551 $ 16,019 Classification Three Months Ended September 30, 2020 Three months ended September 30, 2019 Operating lease costs (1) Cost of sales $ 508 $ 477 Selling, general and administrative 214 223 Sublease income Other income (expense) 10 10 Cash paid for amounts included in the measurement of operating lease liabilities Cash flows from operating activities 656 647 (1) Includes short-term leases, which are insignificant, and are not included in the lease liability. The lease liability for operating leases that contain variable escalating rental payments with scheduled increases that are based on the lesser of a stated percentage increase or the cumulative increase in an index, are determined using the stated percentage increase. The weighted average remaining lease term for the three months ended September 30, 2020 and 2019 was 7.17 years and 7.97 years, respectively . The weighted average discount rate determined based on the Company's incremental borrowing rate is 3.65%, as of September 30, 2020 and 2019. Future annual minimum lease payments for the following fiscal years as of September 30, 2020 are as follows: Amount Remainder of 2021 $ 1,904 2022 2,403 2023 2,454 2024 2,582 2025 2,310 2026 and thereafter 6,014 Total 17,667 Less imputed interest (2,116) Present value of lease liabilities $ 15,551 |
Tax Receivable Agreement Liabil
Tax Receivable Agreement Liability | 3 Months Ended |
Sep. 30, 2020 | |
Tax Receivable Agreement [Abstract] | |
Tax Receivable Agreement Liability | Tax Receivable Agreement Liability The Company has a tax receivable agreement with the pre-IPO owners of the LLC that provides for payment by the Company to the pre-IPO owners (or their permitted assignees) of 85% of the amount of the benefits, if any, that the Company is deemed to realize as a result of (i) increases in tax basis and (ii) certain other tax benefits related to the Company entering into the tax receivable agreement, including those attributable to payments under the tax receivable agreement. These contractual payment obligations are obligations of the Company and not of the LLC. The Company's tax receivable agreement liability was determined on an undiscounted basis in accordance with ASC Topic 450, Contingencies , since the contractual payment obligations were deemed to be probable and reasonably estimable. The tax receivable agreement further provides that, upon certain mergers, asset sales or other forms of business combinations or other changes of control, the Company (or its successor) would owe to the pre-IPO owners of the LLC a lump-sum payment equal to the present value of all forecasted future payments that would have otherwise been made under the tax receivable agreement that would be based on certain assumptions, including a deemed exchange of LLC Units and that the Company would have sufficient taxable income to fully utilize the deductions arising from the increased tax basis and other tax benefits related to entering into the tax receivable agreement. The Company also is entitled to terminate the tax receivable agreement, which, if terminated, would obligate the Company to make early termination payments to the pre-IPO owners of the LLC. In addition, a pre-IPO owner may elect to unilaterally terminate the tax receivable agreement with respect to such pre-IPO owner, which would obligate the Company to pay to such existing owner certain payments for tax benefits received through the taxable year of the election. For purposes of the tax receivable agreement, the benefit deemed realized by the Company will be computed by comparing the actual income tax liability of the Company (calculated with certain assumptions) to the amount of such taxes that the Company would have been required to pay had there been no increase to the tax basis of the assets of the LLC as a result of the purchases or exchanges, and had the Company not entered into the tax receivable agreement. The following table reflects the changes to the Company's tax receivable agreement liability: As of September 30, 2020 As of June 30, 2020 Payable pursuant to tax receivable agreement $ 49,665 $ 53,754 Additions (reductions) to tax receivable agreement: Exchange of LLC Units for Class A Common Stock 330 1,041 Adjustment for change in estimated tax rate — (1,672) Payments under tax receivable agreement — (3,458) 49,995 49,665 Less current portion under tax receivable agreement (3,589) (3,589) Payable pursuant to tax receivable agreement, less current portion $ 46,406 $ 46,076 When estimating the expected tax rate to use in order to determine the tax benefit expected to be recognized from the Company’s increased tax basis as a result of exchanges of LLC Units by the pre-IPO owners of the LLC, the Company continuously monitors changes in its overall tax posture, including changes resulting from new legislation and changes as a result of new jurisdictions in which the Company is subject to tax. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Malibu Boats, Inc. is taxed as a C corporation for U.S. income tax purposes and is therefore subject to both federal and state taxation at a corporate level. The LLC continues to operate in the United States as a partnership for U.S. federal income tax purposes. Income taxes are computed in accordance with ASC Topic 740, Income Taxes , and reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize the benefit of some or all of its deferred tax assets, such deferred tax assets will be adjusted through the Company’s provision for income taxes in the period in which this determination is made. As of September 30, 2020 and June 30, 2020, the Company maintained a total valuation allowance of $14,650 and $14,582, respectively, against deferred tax assets related to state net operating losses and future amortization deductions (with respect to the Section 754 election) that are reported in the Tennessee corporate tax return without offsetting income, which is taxable at the LLC. This also includes a valuation allowance in the amount of $580 related to foreign tax credit carryforward that is not expected to be utilized in the future. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company adopted a long term incentive plan which became effective on January 1, 2014, and reserves for issuance up to 1,700,000 shares of Malibu Boats, Inc. Class A Common Stock for the Company’s employees, consultants, members of its board of directors and other independent contractors at the discretion of the compensation committee. Incentive stock awards authorized under the Incentive Plan include unrestricted shares of Class A Common Stock, stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent awards and performance awards. As of September 30, 2020, 716,050 shares remain available for future issuance under the long term incentive plan. The following is a summary of the changes in the Company's stock options for the three months ended September 30, 2020: Shares Weighted Average Exercise Price/Share Total outstanding options as of June 30, 2020 173,348 $ 32.61 Options granted — — Options exercised (9,625) 31.14 Outstanding options as of September 30, 2020 163,723 32.70 Exercisable as of September 30, 2020 77,744 $ 31.50 The following is a summary of the changes in non-vested restricted stock units and restricted stock awards for the three months ended September 30, 2020: Number of Restricted Stock Units and Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Total Non-vested Restricted Stock Units and Restricted Stock Awards as of June 30, 2020 277,696 $ 35.43 Granted 1,125 51.95 Vested (13,187) 18.72 Forfeited (890) 34.30 Total Non-vested Restricted Stock Units and Restricted Stock Awards as of September 30, 2020 264,744 $ 36.34 Stock compensation expense attributable to the Company's share-based equity awards was $811 |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net Earnings Per Share Basic net income per share of Class A Common Stock is computed by dividing net income attributable to the Company's earnings by the weighted average number of shares of Class A Common Stock outstanding during the period. The weighted average number of shares of Class A Common Stock outstanding used in computing basic net income per share includes fully vested restricted stock units awarded to directors that are entitled to participate in distributions to common shareholders through receipt of additional units of equivalent value to the dividends paid to Class A Common Stock holders. Diluted net income per share of Class A Common Stock is computed similarly to basic net income per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents using the treasury method, if dilutive. The Company’s LLC Units and non-qualified stock options are considered common stock equivalents for this purpose. The number of additional shares of Class A Common Stock related to these common stock equivalents and stock options are calculated using the treasury stock method. Stock awards with a performance condition that are based on the attainment of a specified amount of earnings are only included in the computation of diluted earnings per share to the extent that the performance condition would be achieved based on the current amount of earnings, and only if the effect would be dilutive. Stock awards with a market condition that are based on the performance of the Company's stock price in relation to a market index over a specified time period are only included in the computation of diluted earnings per share to the extent that the shares would be issued based on the current market price of the Company's stock in relation to the market index, and only if the effect would be dilutive. Basic and diluted net income per share of Class A Common Stock has been computed as follows (in thousands, except share and per share amounts): Three Months Ended September 30, 2020 2019 Basic: Net income attributable to Malibu Boats, Inc. $ 21,093 $ 15,859 Shares used in computing basic net income per share: Weighted-average Class A Common Stock 20,435,866 20,635,978 Weighted-average participating restricted stock units convertible into Class A Common Stock 216,063 194,143 Basic weighted-average shares outstanding 20,651,929 20,830,121 Basic net income per share $ 1.02 $ 0.76 Diluted: Net income attributable to Malibu Boats, Inc. $ 21,093 $ 15,859 Shares used in computing diluted net income per share: Basic weighted-average shares outstanding 20,651,929 20,830,121 Restricted stock units granted to employees 133,213 98,620 Stock options granted to employees 36,928 — Market performance awards granted to employees 42,576 — Diluted weighted-average shares outstanding 1 20,864,646 20,928,741 Diluted net income per share $ 1.01 $ 0.76 1 The Company excluded 776,592 and 1,102,975 potentially dilutive shares from the calculation of diluted net income per share for the three months ended September 30, 2020 and 2019, respectively, as these units would have been antidilutive. The shares of Class B Common Stock do not share in the earnings or losses of Malibu Boats, Inc. and, therefore, not included in the calculation. Accordingly, basic and diluted net earnings per share of Class B Common Stock has not been presented. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesRepurchase Commitments In connection with its dealers’ wholesale floor plan financing of boats, the Company has entered into repurchase agreements with various lending institutions. The reserve methodology used to record an estimated expense and loss reserve in each accounting period is based upon an analysis of likely repurchases based on current field inventory and likelihood of repurchase. Subsequent to the inception of the repurchase commitment, the Company evaluates the likelihood of repurchase and adjusts the estimated loss reserve accordingly. When a potential loss reserve is recorded it is presented in accrued liabilities in the accompanying unaudited interim condensed consolidated balance sheet. If the Company were obligated to repurchase a significant number of units under any repurchase agreement, its business, operating results and financial condition could be adversely affected. The total amount financed under the floor financing programs with repurchase obligations was $101,476 and $161,356 as of September 30, 2020 and June 30, 2020, respectively. Repurchases and subsequent sales are recorded as a revenue transaction. The net difference between the repurchase price and the resale price is recorded against the loss reserve and presented in cost of sales in the accompanying unaudited interim condensed consolidated statements of operations and comprehensive income. During the three months ended September 30, 2020, there were no repurchases and as of September 30, 2020, the Company has not been notified about any probable repossessions. Therefore, the Company did not carry a reserve for repurchases as of September 30, 2020 consistent with June 30, 2020. The Company has collateralized receivables financing arrangements with a third-party floor plan financing provider for European dealers. Under terms of these arrangements, the Company transfers the right to collect a trade receivable to the financing provider in exchange for cash but agrees to repurchase the receivable if the dealer defaults. Since the transfer of the receivable to the financing provider does not meet the conditions for a sale under ASC Topic 860 , Transfers and Servicing , the Company continues to report the transferred trade receivable in other current assets with an offsetting balance recorded as a secured obligation in accrued expenses in the Company's unaudited condensed consolidated balance sheets. As of September 30, 2020 and June 30, 2020, the Company had financing receivables of $44 and $375, respectively, recorded in other current assets and accrued expenses related to these arrangements. Contingencies Product Liability The Company is engaged in a business that exposes it to claims for product liability and warranty claims in the event the Company’s products actually or allegedly fail to perform as expected or the use of the Company’s products results, or is alleged to result, in property damage, personal injury or death. Although the Company maintains product and general liability insurance of the types and in the amounts that the Company believes are customary for the industry, the Company is not fully insured against all such potential claims. The Company may have the ability to refer claims to its suppliers and their insurers to pay the costs associated with any claims arising from the suppliers’ products. The Company’s insurance covers such claims that are not adequately covered by a supplier’s insurance and provides for excess secondary coverage above the limits provided by the Company’s suppliers. The Company may experience legal claims in excess of its insurance coverage or claims that are not covered by insurance, either of which could adversely affect its business, financial condition and results of operations. Adverse determination of material product liability and warranty claims made against the Company could have a material adverse effect on its financial condition and harm its reputation. In addition, if any of the Company products are, or are alleged to be, defective, the Company may be required to participate in a recall of that product if the defect or alleged defect relates to safety. These and other claims that the Company faces could be costly to the Company and require substantial management attention. Refer to Note 8 for discussion of warranty claims. The Company insures against product liability claims and believes there are no material product liability claims as of September 30, 2020 that would not be covered by our insurance. Legal Proceedings On January 12, 2018, the Company filed suit against Skier’s Choice, Inc., or "Skier’s Choice," in the U.S. District Court for the Eastern District of Tennessee, seeking monetary and injunctive relief. The Company's complaint alleges Skier’s Choice’s infringement of three utility patents - U.S. Patent Nos. 9,260,161, 8,578,873, and 9,199,695 - related to wake surfing technology. Skier’s Choice denied liability arising from the causes of action alleged in the Company's complaint and filed counterclaims alleging invalidity of the asserted patents. On June 19, 2019, the Company filed a second action against Skier’s Choice in the U.S. District Court for the Eastern District of Tennessee, seeking monetary and injunctive relief. The Company’s complaint alleges Skier’s Choice’s surf systems on its Moomba and Supra lines of boats infringe U.S. Patent No. 10,322,777, a patent related to wake surfing technology. Skier’s Choice denied liability arising from the causes of action alleged in the Company's complaint and filed counterclaims alleging invalidity of the asserted patents. On June 27, 2019, Skier’s Choice filed a motion to consolidate these two actions, and to continue deadlines in the earlier case for nine months, which the Company |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following tables present financial information for the Company’s reportable segments for the three months ended September 30, 2020 and 2019, respectively, and the Company’s financial position at September 30, 2020 and June 30, 2020, respectively: Three Months Ended September 30, 2020 Malibu Cobalt Pursuit Total Net sales $ 99,831 $ 44,482 $ 36,671 $ 180,984 Income before provision for income taxes $ 17,555 $ 4,776 $ 6,074 $ 28,405 Three months ended September 30, 2019 Malibu Cobalt Pursuit Total Net sales $ 85,880 $ 50,151 $ 36,049 $ 172,080 Income before provision for income taxes $ 11,461 $ 5,907 $ 4,158 $ 21,526 As of September 30, 2020 As of June 30, 2020 Assets Malibu $ 216,690 $ 194,502 Cobalt 166,570 153,820 Pursuit 136,958 129,024 Total assets $ 520,218 $ 477,346 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On November 3, 2020, the Company's Compensation Committee granted approximately 33,000 restricted stock units, 25,000 restricted stock awards, and up to a maximum of 64,000 restricted stock awards with performance or market conditions to certain key employees. The closing price of our Class A Common Stock on the date of the grant was $54.47 per share. |
Organization, Basis of Presen_2
Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim condensed financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with GAAP for complete financial statements. Such statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Malibu Boats, Inc. and subsidiaries for the year ended June 30, 2020, included in the Company's Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments considered necessary to present fairly the Company’s financial position at September 30, 2020, and the results of its operations for the three month periods ended September 30, 2020 and 2019, and its cash flows for the three month periods ended September 30, 2020 and 2019. Operating results for the three months ended September 30, 2020, are not necessarily indicative of the results that may be expected for the full year ending June 30, 2021. Units and shares are presented as whole numbers while all dollar amounts are presented in thousands, unless otherwise noted. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements include the operations and accounts of the Company and all subsidiaries thereof. All intercompany balances and transactions have been eliminated upon consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and in November 2018 issued a subsequent amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. ASU 2018-19 will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of this amendment that have the contractual right to receive cash. On July 1, 2020, the Company adopted this standard and the adoption did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. There are no other new accounting pronouncements that are expected to have a significant impact on the Company's consolidated financial statements and related disclosures. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates the Company's revenue by major product type and geography: Three Months Ended September 30, 2020 Malibu Cobalt Pursuit Consolidated Revenue by product: Boat and trailer sales $ 93,994 $ 43,405 $ 36,403 $ 173,802 Part and other sales 5,837 1,077 268 7,182 Total revenue $ 99,831 $ 44,482 $ 36,671 $ 180,984 Revenue by geography: North America $ 95,918 $ 43,953 $ 35,750 $ 175,621 International 3,913 529 921 5,363 Total revenue $ 99,831 $ 44,482 $ 36,671 $ 180,984 Three Months Ended September 30, 2019 Malibu Cobalt Pursuit Consolidated Revenue by product: Boat and trailer sales $ 82,083 $ 49,300 $ 35,806 $ 167,189 Part and other sales 3,797 851 243 4,891 Total revenue $ 85,880 $ 50,151 $ 36,049 $ 172,080 Revenue by geography: North America $ 78,917 $ 48,758 $ 32,251 $ 159,926 International 6,963 1,393 3,798 12,154 Total revenue $ 85,880 $ 50,151 $ 36,049 $ 172,080 |
Non-controlling Interest (Table
Non-controlling Interest (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interest | The ownership of Malibu Boats Holdings, LLC is summarized as follows: As of September 30, 2020 As of June 30, 2020 Units Ownership % Units Ownership % Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC 702,869 3.3 % 730,652 3.4 % Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC 20,630,438 96.7 20,595,969 96.6 21,333,307 100.0 % 21,326,621 100.0 % |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories, net consisted of the following: As of September 30, 2020 As of June 30, 2020 Raw materials $ 55,140 $ 52,530 Work in progress 14,758 10,778 Finished goods 10,155 9,638 Total inventories $ 80,053 $ 72,946 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net consisted of the following: As of September 30, 2020 As of June 30, 2020 Land $ 2,540 $ 2,540 Building and leasehold improvements 56,597 54,318 Machinery and equipment 54,806 55,831 Furniture and fixtures 7,344 7,031 Construction in process 10,750 10,470 132,037 130,190 Less: Accumulated depreciation (36,296) (35,880) Property, plant and equipment, net $ 95,741 $ 94,310 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the three months ended September 30, 2020 were as follows: Goodwill as of June 30, 2020 $ 51,273 Effect of foreign currency changes on goodwill 238 Goodwill as of September 30, 2020 $ 51,511 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The components of other intangible assets were as follows: As of September 30, 2020 As of June 30, 2020 Estimated Useful Life (in years) Weighted Average Remaining Useful Life Definite-lived intangibles: Dealer relationships $ 111,377 $ 111,293 8 - 20 17.0 Patent 3,986 3,986 12-15 11.8 Trade name 24,667 24,667 15 1.2 Non-compete agreement 50 48 10 4.1 Total 140,080 139,994 Less: Accumulated amortization (65,159) (63,602) Total definite-lived intangible assets, net 74,921 76,392 Indefinite-lived intangible: Trade name 63,500 63,500 Total other intangible assets, net $ 138,421 $ 139,892 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization of definite-lived intangible assets is as follows: Fiscal years ending June 30: Amount Remainder of 2021 $ 4,536 2022 4,559 2023 4,422 2024 4,422 2025 4,419 2026 and thereafter 52,563 $ 74,921 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: As of September 30, 2020 As of June 30, 2020 Warranties $ 29,077 $ 27,500 Dealer incentives 11,201 7,777 Accrued compensation 9,347 9,885 Current operating lease liabilities 1,983 2,006 Accrued legal and professional fees 2,181 1,055 Other accrued expenses 4,527 2,262 Total accrued expenses $ 58,316 $ 50,485 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Changes in the Company’s product warranty liability, which is included in accrued expenses on the unaudited interim condensed consolidated balance sheets, were as follows: Three Months Ended September 30, 2020 2019 Beginning balance $ 27,500 $ 23,820 Add: Warranty expense 4,855 3,906 Less: Warranty claims paid (3,278) (2,692) Ending balance $ 29,077 $ 25,034 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Outstanding debt consisted of the following: As of September 30, 2020 As of June 30, 2020 Term loan $ 75,000 $ 75,000 Revolving credit loan — 8,800 Less unamortized debt issuance costs (859) (961) Total debt 74,141 82,839 Less current maturities — — Long-term debt less current maturities $ 74,141 $ 82,839 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Assets And Liabilities, Lessee | Other information concerning the Company's operating leases accounted for under ASC Topic 842, Leases is as follows (in thousands): Classification As of September 30, 2020 As of June 30, 2020 Assets Right-of-use assets Other assets $ 13,867 $ 14,315 Liabilities Current operating lease liabilities Accrued expenses $ 1,983 $ 2,006 Long-term operating lease liabilities Other liabilities 13,568 14,013 Total lease liabilities $ 15,551 $ 16,019 |
Lease, Cost | Classification Three Months Ended September 30, 2020 Three months ended September 30, 2019 Operating lease costs (1) Cost of sales $ 508 $ 477 Selling, general and administrative 214 223 Sublease income Other income (expense) 10 10 Cash paid for amounts included in the measurement of operating lease liabilities Cash flows from operating activities 656 647 (1) Includes short-term leases, which are insignificant, and are not included in the lease liability. |
Lessee, Operating Lease, Liability, Maturity | Future annual minimum lease payments for the following fiscal years as of September 30, 2020 are as follows: Amount Remainder of 2021 $ 1,904 2022 2,403 2023 2,454 2024 2,582 2025 2,310 2026 and thereafter 6,014 Total 17,667 Less imputed interest (2,116) Present value of lease liabilities $ 15,551 |
Tax Receivable Agreement Liab_2
Tax Receivable Agreement Liability (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Tax Receivable Agreement [Abstract] | |
Tax Receivable Agreement Liability | The following table reflects the changes to the Company's tax receivable agreement liability: As of September 30, 2020 As of June 30, 2020 Payable pursuant to tax receivable agreement $ 49,665 $ 53,754 Additions (reductions) to tax receivable agreement: Exchange of LLC Units for Class A Common Stock 330 1,041 Adjustment for change in estimated tax rate — (1,672) Payments under tax receivable agreement — (3,458) 49,995 49,665 Less current portion under tax receivable agreement (3,589) (3,589) Payable pursuant to tax receivable agreement, less current portion $ 46,406 $ 46,076 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation, Stock Options, Activity | The following is a summary of the changes in the Company's stock options for the three months ended September 30, 2020: Shares Weighted Average Exercise Price/Share Total outstanding options as of June 30, 2020 173,348 $ 32.61 Options granted — — Options exercised (9,625) 31.14 Outstanding options as of September 30, 2020 163,723 32.70 Exercisable as of September 30, 2020 77,744 $ 31.50 |
Schedule of Summary of the Changes in Non-vested Restricted | The following is a summary of the changes in non-vested restricted stock units and restricted stock awards for the three months ended September 30, 2020: Number of Restricted Stock Units and Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Total Non-vested Restricted Stock Units and Restricted Stock Awards as of June 30, 2020 277,696 $ 35.43 Granted 1,125 51.95 Vested (13,187) 18.72 Forfeited (890) 34.30 Total Non-vested Restricted Stock Units and Restricted Stock Awards as of September 30, 2020 264,744 $ 36.34 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share | Basic and diluted net income per share of Class A Common Stock has been computed as follows (in thousands, except share and per share amounts): Three Months Ended September 30, 2020 2019 Basic: Net income attributable to Malibu Boats, Inc. $ 21,093 $ 15,859 Shares used in computing basic net income per share: Weighted-average Class A Common Stock 20,435,866 20,635,978 Weighted-average participating restricted stock units convertible into Class A Common Stock 216,063 194,143 Basic weighted-average shares outstanding 20,651,929 20,830,121 Basic net income per share $ 1.02 $ 0.76 Diluted: Net income attributable to Malibu Boats, Inc. $ 21,093 $ 15,859 Shares used in computing diluted net income per share: Basic weighted-average shares outstanding 20,651,929 20,830,121 Restricted stock units granted to employees 133,213 98,620 Stock options granted to employees 36,928 — Market performance awards granted to employees 42,576 — Diluted weighted-average shares outstanding 1 20,864,646 20,928,741 Diluted net income per share $ 1.01 $ 0.76 1 The Company excluded 776,592 and 1,102,975 potentially dilutive shares from the calculation of diluted net income per share for the three months ended September 30, 2020 and 2019, respectively, as these units would have been antidilutive. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, By Segment | The following tables present financial information for the Company’s reportable segments for the three months ended September 30, 2020 and 2019, respectively, and the Company’s financial position at September 30, 2020 and June 30, 2020, respectively: Three Months Ended September 30, 2020 Malibu Cobalt Pursuit Total Net sales $ 99,831 $ 44,482 $ 36,671 $ 180,984 Income before provision for income taxes $ 17,555 $ 4,776 $ 6,074 $ 28,405 Three months ended September 30, 2019 Malibu Cobalt Pursuit Total Net sales $ 85,880 $ 50,151 $ 36,049 $ 172,080 Income before provision for income taxes $ 11,461 $ 5,907 $ 4,158 $ 21,526 As of September 30, 2020 As of June 30, 2020 Assets Malibu $ 216,690 $ 194,502 Cobalt 166,570 153,820 Pursuit 136,958 129,024 Total assets $ 520,218 $ 477,346 |
Organization, Basis of Presen_3
Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Details) - reportable_segment | 3 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | 3 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 180,984 | $ 172,080 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 175,621 | 159,926 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 5,363 | 12,154 |
Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 173,802 | 167,189 |
Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 7,182 | 4,891 |
Malibu | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 99,831 | 85,880 |
Malibu | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 95,918 | 78,917 |
Malibu | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,913 | 6,963 |
Malibu | Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 93,994 | 82,083 |
Malibu | Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 5,837 | 3,797 |
Cobalt | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 44,482 | 50,151 |
Cobalt | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 43,953 | 48,758 |
Cobalt | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 529 | 1,393 |
Cobalt | Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 43,405 | 49,300 |
Cobalt | Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,077 | 851 |
Pursuit | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 36,671 | 36,049 |
Pursuit | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 35,750 | 32,251 |
Pursuit | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 921 | 3,798 |
Pursuit | Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 36,403 | 35,806 |
Pursuit | Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 268 | $ 243 |
Non-controlling Interest - Owne
Non-controlling Interest - Ownership (Details) - shares | Sep. 30, 2020 | Jun. 30, 2020 |
Class of Stock [Line Items] | ||
Units (in shares) | 21,333,307 | 21,326,621 |
Ownership % | 100.00% | 100.00% |
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC | Malibu Boat LLC | ||
Class of Stock [Line Items] | ||
Units (in shares) | 702,869 | 730,652 |
Ownership % | 3.30% | 3.40% |
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC | Parent Company | ||
Class of Stock [Line Items] | ||
Units (in shares) | 20,630,438 | 20,595,969 |
Ownership % | 96.70% | 96.60% |
Non-controlling Interest - Narr
Non-controlling Interest - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | |
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC | |||
Noncontrolling Interest [Line Items] | |||
Tax distributions payable to non-controlling LLC Unit holders | $ 449 | $ 104 | |
Tax distributions paid to non-controlling LLC Unit holders | $ 104 | $ 568 | |
Class A Common Stock | |||
Noncontrolling Interest [Line Items] | |||
Issuance LLC Units (in shares) | 37,408 | ||
Treasury Stock, Common | |||
Noncontrolling Interest [Line Items] | |||
Treasury stock, shares, retired (in shares) | 2,939 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 55,140 | $ 52,530 |
Work in progress | 14,758 | 10,778 |
Finished goods | 10,155 | 9,638 |
Total inventories | $ 80,053 | $ 72,946 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property equipment, gross | $ 132,037 | $ 130,190 | |
Less: Accumulated depreciation | (36,296) | (35,880) | |
Property, plant and equipment, net | 95,741 | 94,310 | |
Depreciation expense | 3,486 | $ 3,097 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property equipment, gross | 2,540 | 2,540 | |
Building and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property equipment, gross | 56,597 | 54,318 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property equipment, gross | 54,806 | 55,831 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property equipment, gross | 7,344 | 7,031 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property equipment, gross | $ 10,750 | $ 10,470 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill as of June 30, 2020 | $ 51,273 |
Effect of foreign currency changes on goodwill | 238 |
Goodwill as of September 30, 2020 | $ 51,511 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 140,080 | $ 139,994 |
Less: Accumulated amortization | (65,159) | (63,602) |
Total definite-lived intangible assets, net | 74,921 | 76,392 |
Total other intangible assets, net | 138,421 | 139,892 |
Trade name | ||
Goodwill [Line Items] | ||
Trade name | 63,500 | 63,500 |
Dealer relationships | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 111,377 | 111,293 |
Weighted Average Remaining Useful Life (in years) | 17 years | |
Dealer relationships | Minimum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 8 years | |
Dealer relationships | Maximum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 20 years | |
Patent | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 3,986 | 3,986 |
Weighted Average Remaining Useful Life (in years) | 11 years 9 months 18 days | |
Patent | Minimum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 12 years | |
Patent | Maximum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 15 years | |
Trade name | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 24,667 | 24,667 |
Estimated Useful Life (in years) | 15 years | |
Weighted Average Remaining Useful Life (in years) | 1 year 2 months 12 days | |
Non-compete agreement | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 50 | $ 48 |
Estimated Useful Life (in years) | 10 years | |
Weighted Average Remaining Useful Life (in years) | 4 years 1 month 6 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 1,524 | $ 1,584 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 4,536 | |
2022 | 4,559 | |
2023 | 4,422 | |
2024 | 4,422 | |
2025 | 4,419 | |
2026 and thereafter | 52,563 | |
Total definite-lived intangible assets, net | $ 74,921 | $ 76,392 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 |
Payables and Accruals [Abstract] | ||
Warranties | $ 29,077 | $ 27,500 |
Dealer incentives | 11,201 | 7,777 |
Accrued compensation | 9,347 | 9,885 |
Current operating lease liabilities | 1,983 | 2,006 |
Accrued legal and professional fees | 2,181 | 1,055 |
Other accrued expenses | 4,527 | 2,262 |
Total accrued expenses | $ 58,316 | $ 50,485 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2017 | Jun. 30, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 27,500 | $ 23,820 | ||
Add: Warranty expense | 4,855 | 3,906 | ||
Less: Warranty claims paid | (3,278) | (2,692) | ||
Ending balance | $ 29,077 | $ 25,034 | ||
Malibu, Axis and Cobalt Brand Boats | ||||
Product Warranty Liability [Line Items] | ||||
Standard product warranty, period (up to) | 5 years | |||
Malibu and Axis Brand Boats | ||||
Product Warranty Liability [Line Items] | ||||
Standard product warranty, period (up to) | 5 years | |||
Gelcoat warranty, period (up to) | 1 year | |||
Malibu Brand Boats | ||||
Product Warranty Liability [Line Items] | ||||
Standard product warranty, period (up to) | 5 years | 3 years | ||
Axis Boats | ||||
Product Warranty Liability [Line Items] | ||||
Standard product warranty, period (up to) | 5 years | 2 years | ||
Cobalt | ||||
Product Warranty Liability [Line Items] | ||||
Structural warranty, period (up to) | 10 years | |||
Bow-to-stern warranty on all components | 5 years | 3 years | ||
Gelcoat warranty, period (up to) | 3 years | |||
Pursuit | ||||
Product Warranty Liability [Line Items] | ||||
Standard product warranty, period (up to) | 5 years | |||
Bow-to-stern warranty on all components | 2 years |
Financing - Outstanding Debt (D
Financing - Outstanding Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 |
Debt Disclosure [Abstract] | ||
Term loan | $ 75,000 | $ 75,000 |
Revolving credit loan | 0 | 8,800 |
Less unamortized debt issuance costs | (859) | (961) |
Total debt | 74,141 | 82,839 |
Less current maturities | 0 | 0 |
Long-term debt less current maturities | $ 74,141 | $ 82,839 |
Financing - Narrative (Details)
Financing - Narrative (Details) - USD ($) | Mar. 31, 2022 | Aug. 24, 2017 | Aug. 17, 2017 | Jul. 01, 2015 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2017 |
Line of Credit Facility [Line Items] | ||||||||||
Long-term debt | $ 74,141,000 | $ 74,141,000 | $ 82,839,000 | |||||||
Repayments of debt | 8,800,000 | $ 0 | ||||||||
Term loan | 75,000,000 | 75,000,000 | 75,000,000 | |||||||
Debt issuance costs | 859,000 | 859,000 | $ 961,000 | |||||||
Derivative, term of contract | 5 years | |||||||||
Fixed quarterly interest rate (as a percent) | 1.52% | |||||||||
Derivative notional amount | $ 39,250,000 | |||||||||
Outstanding balance (equal to) (as a percent) | 50.00% | |||||||||
Derivative, loss on derivative | $ 38,000 | |||||||||
Credit Agreement | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | 120,000,000 | 120,000,000 | ||||||||
Long-term debt | 75,000,000 | 75,000,000 | ||||||||
Outstanding letters of credit | 1,185,000 | 1,185,000 | ||||||||
Repayments of debt | 8,800,000 | |||||||||
Purchase of stock (up to) | 2,000,000 | |||||||||
Share repurchase (up to) | 35,000,000 | |||||||||
Dividend and distributions (up to) | 10,000,000 | |||||||||
Deferred finance costs | $ 2,074,000 | |||||||||
Debt issuance costs | 671,000 | 671,000 | ||||||||
Credit Agreement | Long-term Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Repayments of debt | $ 50,000,000 | |||||||||
Term loan | 75,000,000 | 75,000,000 | ||||||||
Write off of deferred debt issuance cost | $ 829,000 | |||||||||
Credit Agreement | Long-term Debt | Forecast | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, periodic payment | $ 3,000,000 | |||||||||
Credit Agreement | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Available borrowing capacity | $ 0 | $ 0 | ||||||||
Stated interest rate (as a percent) | 1.40% | 1.40% | ||||||||
Credit Agreement | Revolving Credit Facility | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, unused capacity, commitment fee rate (as a percent) | 0.20% | |||||||||
Credit Agreement | Revolving Credit Facility | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, unused capacity, commitment fee rate (as a percent) | 0.40% | |||||||||
Credit Agreement | Revolving Credit Facility | Federal Funds | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 0.50% | |||||||||
Credit Agreement | Revolving Credit Facility | Base Rate | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 1.00% | |||||||||
Credit Agreement | Revolving Credit Facility | Base Rate | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 0.25% | |||||||||
Credit Agreement | Revolving Credit Facility | Base Rate | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 1.25% | |||||||||
Credit Agreement | Revolving Credit Facility | LIBOR | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 1.25% | |||||||||
Credit Agreement | Revolving Credit Facility | LIBOR | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 2.25% | |||||||||
Credit Agreement | Long-term Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Repayments of debt | $ 50,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jul. 01, 2019 |
Leases [Abstract] | ||||
Operating lease, right-of-use asset | $ 13,867 | $ 14,315 | $ 16,142 | |
Weighted average remaining lease term | 7 years 2 months 1 day | 7 years 11 months 19 days | ||
Weighted average discount rate (as a percent) | 3.65% | 3.65% |
Leases - Schedule of Expense, A
Leases - Schedule of Expense, Assets and Liabilities, Lessee (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Jul. 01, 2019 | |
Assets | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | ||
Right-of-use assets | $ 13,867 | $ 14,315 | $ 16,142 | |
Liabilities | ||||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent | ||
Current operating lease liabilities | $ 1,983 | $ 2,006 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | ||
Long-term operating lease liabilities | $ 13,568 | $ 14,013 | ||
Total lease liabilities | 15,551 | $ 16,019 | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 656 | $ 647 | ||
Cost of sales | ||||
Liabilities | ||||
Operating lease costs | 508 | 477 | ||
Selling, general and administrative | ||||
Liabilities | ||||
Operating lease costs | 214 | 223 | ||
Other income (expense) | ||||
Liabilities | ||||
Sublease income | $ 10 | $ 10 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2021 | $ 1,904 | |
2022 | 2,403 | |
2023 | 2,454 | |
2024 | 2,582 | |
2025 | 2,310 | |
2026 and thereafter | 6,014 | |
Total | 17,667 | |
Less imputed interest | (2,116) | |
Present value of lease liabilities | $ 15,551 | $ 16,019 |
Tax Receivable Agreement Liab_3
Tax Receivable Agreement Liability - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Tax Receivable Agreement [Abstract] | ||
Tax receivable agreement, proportion of realized cash saving in tax to pass through (as a percent) | 85.00% | |
Investment in subsidiaries | $ 111,991 | $ 111,511 |
Period of next annual payment | 75 days |
Tax Receivable Agreement Liab_4
Tax Receivable Agreement Liability - Schedule of Tax Agreement Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Jun. 30, 2020 | |
Tax Receivable Agreement [Roll Forward] | ||
Payable pursuant to tax receivable agreement | $ 49,665 | $ 53,754 |
Additions (reductions) to tax receivable agreement: | ||
Payments under tax receivable agreement | 0 | (3,458) |
Payable pursuant to tax receivable agreement | 49,995 | 49,665 |
Less current portion under tax receivable agreement | (3,589) | (3,589) |
Payable pursuant to tax receivable agreement, less current portion | 46,406 | 46,076 |
Exchange of LLC Units for Class A Shares | ||
Additions (reductions) to tax receivable agreement: | ||
Exchange of LLC Units for Class A Common Stock | 330 | 1,041 |
Adjustment for change in estimated tax rate | $ 0 | $ (1,672) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets, valuation allowance | $ 14,650 | $ 14,582 | |
Tax credit carryforwards, foreign | $ 580 | $ 580 | |
Effective tax rate (as a percent) | 22.40% | 22.50% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jan. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 811 | $ 677 | |
Restricted Stock Units (RSUs) | Non-Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested (in shares) | 1,125 | ||
Long-Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance in the Long-Term Incentive Plan (in shares) | 1,700,000 | ||
Remaining shares available for future issuance (in shares) | 716,050 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) | 3 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Shares | |
Outstanding options at beginning of period (in shares) | shares | 173,348 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | (9,625) |
Outstanding options at end of period (in shares) | shares | 163,723 |
Weighted Average Exercise Price/Share | |
Outstanding options at beginning of period (in dollars per share) | $ / shares | $ 32.61 |
Options granted (in dollars per share) | $ / shares | 0 |
Options exercised (in dollars per share) | $ / shares | 31.14 |
Outstanding options at end of period (in dollars per share) | $ / shares | $ 32.70 |
Exercisable at end of period (in shares) | shares | 77,744 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 31.50 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Changes in Non-vested Restricted Shares (Details) - Restricted Stock Units and Restricted Stock Awards | 3 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Restricted Stock Units and Restricted Stock Awards Outstanding | |
Total Non-vested Restricted Stock Units and Restricted Stock Awards at beginning of period (in shares) | shares | 277,696 |
Granted (in shares) | shares | 1,125 |
Vested (in shares) | shares | (13,187) |
Forfeited (in shares) | shares | (890) |
Total Non-vested Restricted Stock Units and Restricted Stock Awards at end of period (in shares) | shares | 264,744 |
Weighted Average Grant Date Fair Value | |
Total Non-vested Restricted Stock Units and Restricted Stock Awards at beginning of period (in dollars per share) | $ / shares | $ 35.43 |
Granted (in usd per share) | $ / shares | 51.95 |
Vested (in usd per share) | $ / shares | 18.72 |
Forfeited (in usd per share) | $ / shares | 34.30 |
Total Non-vested Restricted Stock Units and Restricted Stock Awards at end of period (in dollars per share) | $ / shares | $ 36.34 |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Basic: | ||
Net income attributable to Malibu Boats, Inc. | $ 21,093 | $ 15,859 |
Shares used in computing basic net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,651,929 | 20,830,121 |
Basic net income per share (in dollars per share) | $ 1.02 | $ 0.76 |
Diluted: | ||
Net income attributable to Malibu Boats, Inc. | $ 21,093 | $ 15,859 |
Shares used in computing diluted net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,651,929 | 20,830,121 |
Diluted weighted-average shares outstanding (in shares) | 20,864,646 | 20,928,741 |
Diluted net income per share (in dollars per share) | $ 1.01 | $ 0.76 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 776,592 | 1,102,975 |
Class A Common Stock | ||
Shares used in computing basic net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,435,866 | 20,635,978 |
Shares used in computing diluted net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,435,866 | 20,635,978 |
Restricted Stock Units (RSUs) | ||
Shares used in computing diluted net income per share: | ||
Awards granted to employees (in shares) | 133,213 | 98,620 |
Employee Stock Option | ||
Shares used in computing diluted net income per share: | ||
Awards granted to employees (in shares) | 36,928 | 0 |
Performance Awards | ||
Shares used in computing diluted net income per share: | ||
Awards granted to employees (in shares) | 42,576 | 0 |
Fully Vested/Participating | Restricted Stock Units (RSUs) | ||
Shares used in computing basic net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 216,063 | 194,143 |
Shares used in computing diluted net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 216,063 | 194,143 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Thousands | Nov. 27, 2019actions | Aug. 22, 2019actions | Jul. 27, 2019actions | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |||||
Repurchase obligations | $ 101,476 | $ 161,356 | |||
Financing receivables | $ 44 | $ 375 | |||
Number of actions | actions | 2 | 2 | 2 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 180,984 | $ 172,080 | |
Income before provision for income taxes | 28,405 | 21,526 | |
Assets | 520,218 | $ 477,346 | |
Malibu | |||
Segment Reporting Information [Line Items] | |||
Net sales | 99,831 | 85,880 | |
Cobalt | |||
Segment Reporting Information [Line Items] | |||
Net sales | 44,482 | 50,151 | |
Pursuit | |||
Segment Reporting Information [Line Items] | |||
Net sales | 36,671 | 36,049 | |
Operating Segments | Malibu | |||
Segment Reporting Information [Line Items] | |||
Net sales | 99,831 | 85,880 | |
Income before provision for income taxes | 17,555 | 11,461 | |
Assets | 216,690 | 194,502 | |
Operating Segments | Cobalt | |||
Segment Reporting Information [Line Items] | |||
Net sales | 44,482 | 50,151 | |
Income before provision for income taxes | 4,776 | 5,907 | |
Assets | 166,570 | 153,820 | |
Operating Segments | Pursuit | |||
Segment Reporting Information [Line Items] | |||
Net sales | 36,671 | 36,049 | |
Income before provision for income taxes | 6,074 | $ 4,158 | |
Assets | $ 136,958 | $ 129,024 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - Subsequent Event shares in Thousands | Nov. 03, 2020$ / sharesshares |
Restricted Stock Units (RSUs) | |
Subsequent Event [Line Items] | |
Grants in period (in shares) | 33 |
Restricted Stock Awards | |
Subsequent Event [Line Items] | |
Grants in period (in shares) | 25 |
Restricted Stock Awards with Performance or Market Conditions | |
Subsequent Event [Line Items] | |
Grants in period (in shares) | 64 |
Class A Common Stock | |
Subsequent Event [Line Items] | |
Share price (in USD per share) | $ / shares | $ 54.47 |