Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 $0.01 | |
Trading Symbol | MBUU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001590976 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --06-30 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 20,839,687 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 10 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 253,497 | $ 180,984 |
Cost of sales | 193,745 | 135,243 |
Gross profit | 59,752 | 45,741 |
Operating expenses: | ||
Selling and marketing | 5,117 | 3,612 |
General and administrative | 16,091 | 11,654 |
Amortization | 1,856 | 1,524 |
Operating income | 36,688 | 28,951 |
Other expense, net: | ||
Other income, net | (13) | (10) |
Interest expense | 684 | 556 |
Other expense, net | 671 | 546 |
Income before provision for income taxes | 36,017 | 28,405 |
Provision for income taxes | 8,084 | 6,367 |
Net income | 27,933 | 22,038 |
Net income attributable to non-controlling interest | 989 | 945 |
Net income attributable to Malibu Boats, Inc. | 26,944 | 21,093 |
Comprehensive income: | ||
Net income | 27,933 | 22,038 |
Other comprehensive (loss) income: | ||
Change in cumulative translation adjustment | (835) | 630 |
Other comprehensive (loss) income | (835) | 630 |
Comprehensive income | 27,098 | 22,668 |
Less: comprehensive income attributable to non-controlling interest | 959 | 972 |
Comprehensive income attributable to Malibu Boats, Inc. | $ 26,139 | $ 21,696 |
Weighted average shares outstanding used in computing net income per share: | ||
Basic (in shares) | 20,849,981 | 20,651,929 |
Diluted (in shares) | 21,132,902 | 20,864,646 |
Net income available to Class A Common Stock per share | ||
Basic (in dollars per share) | $ 1.29 | $ 1.02 |
Diluted (in dollars per share) | $ 1.28 | $ 1.01 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Current assets | ||
Cash | $ 29,500 | $ 41,479 |
Trade receivables, net | 41,217 | 49,844 |
Inventories, net | 138,743 | 116,685 |
Prepaid expenses and other current assets | 9,109 | 4,775 |
Total current assets | 218,569 | 212,783 |
Property, plant and equipment, net | 141,561 | 132,913 |
Goodwill | 100,765 | 101,033 |
Other intangible assets, net | 233,455 | 235,363 |
Deferred tax assets | 47,339 | 48,022 |
Other assets | 12,230 | 12,670 |
Total assets | 753,919 | 742,784 |
Current liabilities | ||
Current maturities of long-term obligations | 76,250 | 4,250 |
Accounts payable | 51,216 | 45,992 |
Accrued expenses | 71,346 | 77,179 |
Income taxes and tax distribution payable | 8,332 | 3,209 |
Payable pursuant to tax receivable agreement, current portion | 3,773 | 3,773 |
Total current liabilities | 210,917 | 134,403 |
Deferred tax liabilities | 27,850 | 27,869 |
Other liabilities | 15,394 | 15,892 |
Payable pursuant to tax receivable agreement, less current portion | 44,441 | 44,441 |
Long-term debt | 46,861 | 139,025 |
Total liabilities | 345,463 | 361,630 |
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, 2021 and June 30, 2021 | 0 | 0 |
Additional paid in capital | 112,094 | 111,308 |
Accumulated other comprehensive loss | (2,474) | (1,639) |
Accumulated earnings | 290,496 | 263,552 |
Total stockholders' equity attributable to Malibu Boats, Inc. | 400,323 | 373,428 |
Non-controlling interest | 8,133 | 7,726 |
Total stockholders’ equity | 408,456 | 381,154 |
Total liabilities and stockholders' equity | 753,919 | 742,784 |
Class A Common Stock | ||
Stockholders' Equity | ||
Common stock | 207 | 207 |
Class B Common Stock | ||
Stockholders' Equity | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Jun. 30, 2021 |
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) | 20,839,687 | 20,847,019 |
Common stock, shares, outstanding (in shares) | 20,839,687 | 20,847,019 |
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) | 10 | 10 |
Common stock, shares, outstanding (in shares) | 10 | 10 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Additional Paid In Capital | Accumulated Other Comprehensive Loss | Accumulated Earnings | 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, 2020 | 20,596,000 | 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) | 9,000 | ||||||||
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 | 20,630,000 | 13 | |||||||
Ending balance at Sep. 30, 2020 | 284,935 | 105,228 | (2,502) | 174,804 | 7,201 | $ 204 | $ 0 | ||
Beginning balance (in shares) at Jun. 30, 2021 | 20,847,019 | 20,847,000 | 10 | 10 | |||||
Beginning balance at Jun. 30, 2021 | 381,154 | 111,308 | (1,639) | 263,552 | 7,726 | $ 207 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 27,933 | 26,944 | 989 | ||||||
Stock based compensation, net of withholding taxes on vested equity awards (in shares) | (7,000) | ||||||||
Stock based compensation, net of withholding taxes on vested equity awards | 728 | 728 | |||||||
Issuances of equity for services | $ 58 | 58 | |||||||
Issuances of equity for exercise of stock options (in shares) | 0 | ||||||||
Distributions to LLC Unit holders | $ (558) | (558) | |||||||
Foreign currency translation adjustment | (859) | (835) | (24) | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 20,839,687 | 20,840,000 | 10 | 10 | |||||
Ending balance at Sep. 30, 2021 | $ 408,456 | $ 112,094 | $ (2,474) | $ 290,496 | $ 8,133 | $ 207 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net income | $ 27,933 | $ 22,038 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Non-cash compensation expense | 1,258 | 811 |
Non-cash compensation to directors | 218 | 210 |
Depreciation | 4,918 | 3,486 |
Amortization | 1,856 | 1,524 |
Deferred income taxes | 660 | 2,325 |
Other items, net | 502 | 439 |
Change in operating assets and liabilities: | ||
Trade receivables | 8,608 | (17,247) |
Inventories | (22,209) | (6,939) |
Prepaid expenses and other assets | (4,677) | (3,032) |
Accounts payable | 5,518 | 16,001 |
Income taxes payable | 5,399 | 4,228 |
Accrued expenses | (5,778) | 8,184 |
Other liabilities | (520) | 734 |
Net cash provided by operating activities | 23,686 | 32,762 |
Investing activities: | ||
Purchases of property, plant and equipment | (13,892) | (5,432) |
Net cash used in investing activities | (13,892) | (5,432) |
Financing activities: | ||
Principal payments on long-term borrowings | (313) | 0 |
Payments on revolving credit facility | (20,000) | (8,800) |
Proceeds received from exercise of stock options | 0 | 300 |
Cash paid for withholding taxes on vested restricted stock | (516) | (148) |
Distributions to LLC Unit holders | (687) | (104) |
Net cash used in financing activities | (21,516) | (8,752) |
Effect of exchange rate changes on cash | (257) | 73 |
Changes in cash | (11,979) | 18,651 |
Cash—Beginning of period | 41,479 | 33,787 |
Cash—End of period | 29,500 | 52,438 |
Supplemental cash flow information: | ||
Cash paid for interest | 535 | 454 |
Cash paid for income taxes | $ 2,024 | $ 53 |
Organization, Basis of Presenta
Organization, Basis of Presentation, and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2021 | |
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"). The LLC was formed in 2006. The LLC, through its wholly owned subsidiary, Malibu Boats, LLC, (“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 sells its boats under eight brands -- Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes and Cobalt brands. The Company reports its results of operations under three reportable segments -- Malibu, Saltwater Fishing and Cobalt. 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 and subsidiaries for the year ended June 30, 2021, included in the Company's Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. 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 Acco unting Pronouncements In March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting, which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The elective amendments provide expedients to contract modification, affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by this guidance apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. This guidance is not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The guidance can be applied immediately through December 31, 2022. The Company will adopt this standard when LIBOR is discontinued and does not expect a material impact to its financial condition, results of operations or disclosures based on the current debt portfolio and capital structure. 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, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following tables disaggregate the Company's revenue by major product type and geography: Three Months Ended September 30, 2021 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 113,611 $ 76,409 $ 57,833 $ 247,853 Part and other sales 4,641 318 685 5,644 Total revenue $ 118,252 $ 76,727 $ 58,518 $ 253,497 Revenue by geography: North America $ 103,219 $ 73,712 $ 54,639 $ 231,570 International 15,033 3,015 3,879 21,927 Total revenue $ 118,252 $ 76,727 $ 58,518 $ 253,497 Three Months Ended September 30, 2020 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 93,994 $ 36,403 $ 43,405 $ 173,802 Part and other sales 5,837 268 1,077 7,182 Total revenue $ 99,831 $ 36,671 $ 44,482 $ 180,984 Revenue by geography: North America $ 95,918 $ 35,750 $ 43,953 $ 175,621 International 3,913 921 529 5,363 Total revenue $ 99,831 $ 36,671 $ 44,482 $ 180,984 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. Parts 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, 2021 | |
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 or loss attributable to the economic interest in the Company's subsidiary, the 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 the LLC is summarized as follows: As of September 30, 2021 As of June 30, 2021 Units Ownership % Units Ownership % Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC 600,919 2.8 % 600,919 2.8 % Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC 20,839,687 97.2 20,847,019 97.2 21,440,606 100.0 % 21,447,938 100.0 % 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, 2021, the Company did not issue any Class A Common Stock resulting in no LLC Units to be issued. During the three months ended September 30, 2021, 7,332 LLC Units were canceled in connection with the vesting of share-based equity awards to satisfy employee tax withholding requirements and the retirement of 7,332 trea sury 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), the 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, 2021 and June 30, 2021, tax distributions payable to non-controlling LLC Unit holders were $558 and $687, respectively. During the three months ended September 30, 2021 and 2020, tax distributions paid to the non-controlling LLC Unit holders were $687 and $104, 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. |
Acquisition of Maverick Boat Gr
Acquisition of Maverick Boat Group | 3 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition of Maverick Boat Group | Acquisition of Maverick Boat Group On December 31, 2020, the Company completed its acquisition of all the outstanding stock of Maverick Boat Group. The aggregate purchase price for the transaction was $150,675, funded with cash and borrowings under the Company's credit facilities. The aggregate purchase price was subject to certain adjustments, including customary adjustments for the amount of cash, indebtedness and working capital in the business at the closing date and subject to adjustment for certain capital expenditures made by Maverick Boat Group prior to closing at the Company’s request. The Company accounted for the transaction in accordance with ASC Topic 805, Business Combinations . The total consideration given to the stockholders of Maverick Boat Group has been allocated to the assets acquired and liabilities assumed based on estimates of fair value as of the date of the acquisition. The measurements of fair value were determined based upon estimates utilizing the assistance of third party valuation specialists. The following table summarizes the purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: Consideration: Cash consideration paid $ 150,675 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash $ 248 Accounts receivable 3,204 Inventories 7,756 Other current assets 194 Property, plant and equipment 22,618 Identifiable intangible assets 102,600 Other assets 4,410 Current liabilities (6,611) Deferred tax liabilities (28,528) Other liabilities (4,405) Fair value of assets acquired and liabilities assumed 101,486 Goodwill 49,189 Total purchase price $ 150,675 The fair value estimates for the Company's identifiable intangible assets acquired as part of the acquisition are as follows: Estimates of Fair Value Estimated Useful Life (in years) Definite-lived intangibles: Dealer relationships $ 47,900 20 Total definite-lived intangibles 47,900 Indefinite-lived intangible: Trade name 54,700 Total other intangible assets $ 102,600 The value allocated to inventories reflects the estimated fair value of the acquired inventory based on the expected sales price of the inventory, less an estimated cost to complete and a reasonable profit margin. The fair value of the identifiable intangible assets were determined based on the following approaches: Dealer Relationships - The value associated with Maverick Boat Group's dealer relationships is attributed to its long standing dealer distribution network. The estimate of fair value assigned to this asset was determined using the income approach, which requires an estimate or forecast of the expected future cash flows from the dealer relationships through the application of the multi-period excess earnings approach. The estimated remaining useful life of dealer relationships is approximately twenty years. Trade Name - The value attributed to Maverick Boat Group's trade names was determined using a variation of the income approach called the relief from royalty method, which requires an estimate or forecast of the expected future cash flows. The trade name has an indefinite life. The fair value of the definite-lived intangible assets are being amortized using the straight-line method to amortization expenses over their estimated useful lives. Indefinite-lived intangible assets are not amortized, but instead are evaluated for potential impairment on an annual basis in accordance with the provisions of ASC Topic 350, Intangibles—Goodwill and Other . The weighted average useful life of identifiable definite-lived intangible assets acquired was 20 years. Goodwill of $49,189 arising from the acquisition consists of expected synergies and cost savings as well as intangible assets that do not qualify for separate recognition. Pro Forma Financial Information (unaudited): The following unaudited pro forma consolidated results of operations for the three months ended September 30, 2021 and 2020, assumes that the acquisition of Maverick Boat Group occurred as of July 1, 2020. The unaudited interim pro forma financial information combines historical results of Malibu and Maverick Boat Group, with adjustments for depreciation and amortization attributable to fair value estimates on acquired tangible and intangible assets for the respective periods. Non-recurring pro forma adjustments associated with the fair value step up of inventory were included in the reported pro forma cost of sales and earnings. The unaudited interim pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal year 2021 or the results that may occur in the future: Three Months Ended September 30, 2021 2020 Net sales $ 253,497 $ 208,303 Net income 27,933 23,213 Net income attributable to Malibu Boats, Inc. 26,944 22,237 Basic earnings per share $ 1.29 $ 1.08 Diluted earnings per share $ 1.28 $ 1.07 |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consisted of the following: As of September 30, 2021 As of June 30, 2021 Raw materials $ 109,456 $ 92,324 Work in progress 20,269 15,862 Finished goods 9,018 8,499 Total inventories $ 138,743 $ 116,685 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021 As of June 30, 2021 Land $ 4,731 $ 4,600 Building and leasehold improvements 74,688 74,622 Machinery and equipment 71,915 66,792 Furniture and fixtures 9,997 9,600 Construction in process 29,815 22,005 191,146 177,619 Less: Accumulated depreciation (49,585) (44,706) Property, plant and equipment, net $ 141,561 $ 132,913 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021 were as follows: Malibu Saltwater Fishing Cobalt Consolidated Goodwill as of June 30, 2021 $ 12,528 $ 68,714 $ 19,791 $ 101,033 Effect of foreign currency changes on goodwill (268) — — (268) Goodwill as of September 30, 2021 $ 12,260 $ 68,714 $ 19,791 $ 100,765 The components of other intangible assets were as follows: As of September 30, 2021 As of June 30, 2021 Estimated Useful Life (in years) Weighted Average Remaining Useful Life Definite-lived intangibles: Dealer relationships $ 131,908 $ 159,394 15 - 20 17.3 Patent 2,600 3,986 15 10.8 Trade name 100 24,667 15 8.7 Non-compete agreement 50 53 10 3.1 Total 134,658 188,100 Less: Accumulated amortization (19,403) (70,937) Total definite-lived intangible assets, net 115,255 117,163 Indefinite-lived intangible: Trade name 118,200 118,200 Total other intangible assets, net $ 233,455 $ 235,363 Amortization expense recognized on all amortizable intangibles was $1,856 and $1,524 for the three months ended September 30, 2021 and 2020, respectively. The estimated future amortization of definite-lived intangible assets is as follows: Fiscal years ending June 30: Amount Remainder of 2022 $ 5,100 2023 6,819 2024 6,819 2025 6,815 2026 6,814 2027 and thereafter 82,888 $ 115,255 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following: As of September 30, 2021 As of June 30, 2021 Warranties $ 35,697 $ 35,035 Dealer incentives 7,992 12,479 Accrued compensation 15,429 19,965 Current operating lease liabilities 2,025 2,027 Accrued legal and professional fees 1,687 1,440 Customer deposits 5,689 3,449 Other accrued expenses 2,827 2,784 Total accrued expenses $ 71,346 $ 77,179 |
Product Warranties
Product Warranties | 3 Months Ended |
Sep. 30, 2021 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties Malibu and Axis brand boats have a limited warranty for a period up to five years. 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 year bow-to-stern warranty on all components manufactured or purchased (excluding hull and deck structural components), including canvas and upholstery. Gelcoat is covered up to three years for Cobalt and one year for Malibu and Axis. Pursuit brand boats have (1) a limited warranty for a period of up to five years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow to stern warranty of two years (excluding hull and deck structural components). Maverick, Pathfinder and Hewes brand boats have (1) a limited warranty for a period of up to five years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow to stern warranty of one year (excluding hull and deck structural components). Cobia brand boats have (1) a limited warranty for a period of up to ten years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow to stern warranty of three years (excluding hull and deck structural components). For each boat brand, there are certain materials, components or parts of the boat that are not covered by the Company’s warranty and certain components or parts that are separately warranted by the manufacturer or supplier (such as the engine). Engines that the Company manufactures for Malibu and Axis models have a limited warranty of up to five years or five-hundred hours. 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, 2021 2020 Beginning balance $ 35,035 $ 27,500 Add: Warranty expense 4,742 4,855 Less: Warranty claims paid (4,080) (3,278) Ending balance $ 35,697 $ 29,077 |
Financing
Financing | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing | Financing Outstanding debt consisted of the following: As of September 30, 2021 As of June 30, 2021 Term loan $ 99,063 $ 99,375 Revolving credit loan 25,000 45,000 Less unamortized debt issuance costs (952) (1,100) Total debt 123,111 143,275 Less current maturities 76,250 4,250 Long-term debt less current maturities $ 46,861 $ 139,025 Long-Term Debt As of September 30, 2021, the Company has a revolving credit facility with borrowing capacity of up to $170,000 and term loans with an aggregate principal amount of $99,063 outstanding. As of September 30, 2021, the Company had $25,000 outstanding under its revolving credit facility and $1,284 in outstanding letters of credit, with $143,716 available for borrowing. The revolving credit facility matures on July 1, 2024, a term loan made on December 30, 2020 in a principal amount of $25,000, of which $24,063 is outstanding as of September 30, 2021, (the “Incremental Term Loan”) matures on July 1, 2024 and term loans in a principal amount of $75,000 (the “Existing Term Loans,” and together with the Incremental Term Loans, the “Term Loans”) mature on July 1, 2022. On December 30, 2020, Boats LLC entered into the Third Amendment to its Credit Agreement. The Third Amendment added a $25,000 Incremental Term Loan facility with a maturity date of July 1, 2024 and increased the borrowing capacity of the revolving credit facility by $50,000 from $120,000 to $170,000. The Incremental Term Loan is subject to quarterly amortization at a rate of 5.0% per annum through December 31, 2022 and at a rate of 7.5% per annum through June 30, 2024 and accrues interest at the same interest rate applicable to other loans under the Credit Agreement as described below. 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 London Inter-bank Offered Rate ("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, 2021, the interest rate on the Company’s term loans and revolving credit facility was 1.33%. 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 Loans without any penalties. The Existing Term Loans require an amortization payment of approximately $3,000 on March 31, 2022 and the balance of the Existing Term Loans is due on the scheduled maturity date of July 1, 2022, each reflected as current maturities of long-term obligations. The Incremental Term Loan of $25,000 is subject to quarterly amortization at a rate of 5.0% per year through December 31, 2022, resulting in $1,250 being reflected as current maturities of long-term obligations, 7.5% per year through June 30, 2024 and the balance of the Incremental Term Loan is due on the scheduled maturity date of July 1, 2024. The Credit Agreement also requires 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. 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 $3,000 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 in fiscal year 2017, the Company capitalized $2,074 in deferred financing costs during fiscal 2017. In connection with Third Amendment entered into in December 2020, the Company capitalized $638 in deferred financing costs during the three months ended March 31, 2021. 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. The Company used proceeds from an offering on August 24, 2017 to repay $50,000 on its Existing Term Loans 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. 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, 2021, the Company was in compliance with the financial covenants contained in the Credit Agreement. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2021 | |
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. 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: Classification As of September 30, 2021 As of June 30, 2021 Assets Right-of-use assets Other assets $ 12,088 $ 12,606 Liabilities Current operating lease liabilities Accrued expenses $ 2,025 $ 2,027 Long-term operating lease liabilities Other liabilities 11,659 12,198 Total lease liabilities $ 13,684 $ 14,225 Classification Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Operating lease costs (1) Cost of sales $ 642 $ 508 Selling and marketing, and general and administrative 216 214 Sublease income Other income, net 10 10 Cash paid for amounts included in the measurement of operating lease liabilities Cash flows from operating activities 628 656 (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 as of September 30, 2021 and 2020 was 6.22 years and 7.17 years, respectively. As of September 30, 2021 and 2020, the weighted average discount rate determined based on the Company's incremental borrowing rate is 3.63% and 3.65%, respectively. Future annual minimum lease payments for the following fiscal years as of September 30, 2021 are as follows: Amount Remainder of 2022 $ 1,863 2023 2,502 2024 2,585 2025 2,310 2026 2,255 2027 and thereafter 3,759 Total 15,274 Less: imputed interest (1,590) Present value of lease liabilities $ 13,684 |
Tax Receivable Agreement Liabil
Tax Receivable Agreement Liability | 3 Months Ended |
Sep. 30, 2021 | |
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 the 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 450, Contingencies , since the contractual payment obligations were deemed to be probable and reasonably estimable. For purposes of the Tax Receivable Agreement, the benefit deemed realized by the Company is 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, 2021 As of June 30, 2021 Beginning fiscal year balance $ 48,214 $ 49,665 Additions (reductions) to tax receivable agreement: Exchange of LLC Units for Class A Common Stock — 2,142 Adjustment for change in estimated tax rate — (88) Payments under tax receivable agreement — (3,505) 48,214 48,214 Less: current portion under tax receivable agreement (3,773) (3,773) Ending balance $ 44,441 $ 44,441 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. 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, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company 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, 2021 and June 30, 2021, the Company maintained a total valuation allowance on each date of $15,279 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. The Company’s consolidated interim effective tax rate is based upon expected annual income from operations, statutory tax rates and tax laws in the various jurisdictions in which the Company operates. Significant or unusual items, including those related to the change in U.S. tax law as well as other adjustments to accruals for tax uncertainties, are recognized in the quarter in which the related event occurs. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act contains significant business tax provisions, including modifications to the rules limiting the deductibility of net operating losses (NOLs), expensing of qualified improvement property (QIP) and business interest in Internal Revenue Code Sections 172(a) and 163(j), respectively. The effects of the new legislation are recognized upon enactment. The Company did not recognize any significant impact to income tax expense for the three months ended September 30, 2021 and 2020, respectively, relating to the CARES Act. For the three months ended September 30, 2021 and 2020, the Company's effective tax rate on each date was 22.4%. For the three months ended September 30, 2021 and 2020, the Company's effective tax rate exceeded the statutory federal income tax rate of 21% primarily due to the impact of U.S. state taxes. This increase in tax rate in both periods was partially offset by the benefits from the foreign derived intangible income deduction, the research and development tax credit, and the impact of non-controlling interests in the LLC. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021, 611,998 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, 2021: Shares Weighted Average Exercise Price/Share Total outstanding options as of June 30, 2021 161,723 $ 32.64 Options granted — — Options exercised — — Outstanding options as of September 30, 2021 161,723 32.64 Exercisable as of September 30, 2021 134,237 $ 31.46 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, 2021: 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, 2021 314,916 $ 44.46 Granted 6,919 80.70 Vested (23,796) 37.83 Forfeited (3,123) 56.52 Total Non-vested Restricted Stock Units and Restricted Stock Awards as of September 30, 2021 294,916 $ 45.72 Stock compensation expense attributable to the Company's share-based equity awards was $1,258 and $811 for the three months ended September 30, 2021 and 2020, respectively. Stock compensation expense attributed to share-based equity awards issued und |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 Basic: Net income attributable to Malibu Boats, Inc. $ 26,944 $ 21,093 Shares used in computing basic net income per share: Weighted-average Class A Common Stock 20,620,623 20,435,866 Weighted-average participating restricted stock units convertible into Class A Common Stock 229,358 216,063 Basic weighted-average shares outstanding 20,849,981 20,651,929 Basic net income per share $ 1.29 $ 1.02 Diluted: Net income attributable to Malibu Boats, Inc. $ 26,944 $ 21,093 Shares used in computing diluted net income per share: Basic weighted-average shares outstanding 20,849,981 20,651,929 Restricted stock units granted to employees 140,674 133,213 Stock options granted to employees 87,557 36,928 Market performance awards granted to employees 54,690 42,576 Diluted weighted-average shares outstanding 1 21,132,902 20,864,646 Diluted net income per share $ 1.28 $ 1.01 1 The Company excluded 607,042 and 776,592 potentially dilutive shares from the calculation of diluted net income per share for the three months ended September 30, 2021 and 2020, 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, are not included in the calculation. Accordingly, basic and diluted net earnings per share of Class B Common Stock have not been presented. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Repurchase 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 $83,370 and $79,599 as of September 30, 2021 and June 30, 2021, 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, 2021, there were no repurchases and as of September 30, 2021, the Company has not been notified about any probable repossessions. Therefore, the Company did not carry a reserve for repurchases as of September 30, 2021 consistent with June 30, 2021. 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, 2021, the Company had no financing receivables and at June 30, 2021, the Company had $95 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's 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 9 Litigation Certain conditions may exist which could result in a loss, but which will only be resolved when future events occur. The Company, in consultation with its legal counsel, assesses such contingent liabilities, and such assessments inherently involve an exercise of judgment. If the assessment of a contingency indicates that it is probable that a loss has been incurred, the Company accrues for such contingent loss when it can be reasonably estimated. If the assessment indicates that a potentially material loss contingency is not probable but reasonably estimable, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. If the assessment of a contingency deemed to be both probable and reasonably estimable involves a range of possible losses, the amount within the range that appears at the time to be a better estimate than any other amount within the range would be accrued. When no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued even though the minimum amount in the range is not necessarily the amount of loss that will be ultimately determined. Estimates of potential legal fees and other directly related costs associated with contingencies are not accrued but rather are expensed as incurred. Except as disclosed below, management does not believe there are any pending claims (asserted or unasserted) that would have a material adverse impact on the Company's results of operations at September 30, 2021. Legal Proceedings Batchelder Matter The Company and its indirect subsidiary Malibu Boats, LLC (“Boats LLC”) are defendants in the product liability case Batchelder et al. v. Malibu Boats, LLC, f/k/a Malibu Boats, Inc.; Malibu Boats West, Inc., et. al., Superior Court of Rabun County, Georgia, Civil Action Case No. 2016-CV-0114-C, brought by Stephen Paul Batchelder and Margaret Mary Batchelder, individually, and as Administrators of the Estate of Ryan Paul Batchelder, deceased (“Plaintiffs”). Plaintiffs also sued the manufacturer of the boat at issue in the case, Malibu Boats West, Inc. (“West”). West is not, and has never been, a subsidiary of the Company but was a separate legal entity whose assets were purchased by Boats LLC in 2006. The case involves a personal injury accident in 2014 involving a 2000 model year boat that was manufactured by West. On August 28, 2021, the jury rejected the Plaintiffs’ design defect claims and found that the driver of the boat was 75% at fault for the accident. Notwithstanding those findings, the jury found that Boats LLC and West negligently failed to warn of a hazard posed by the relevant boat and that such failure was a proximate cause of the death of the decedent. The jury also found that Boats LLC is a legal successor of, and responsible for the liabilities of, West. The jury awarded compensatory damages of $80 million and apportioned 15% of such damages to Boats LLC and 10% of such damages to West. The jury also awarded $80 million of punitive damages against Boats LLC and $40 million of punitive damages against West. Based on the jury’s finding of successor liability, which Boats LLC contends is erroneous, immediately after the verdict the trial court entered judgment against West and Boats LLC, with a potential maximum liability to Boats LLC of $140 million, plus post-judgment interest. The Plaintiffs have also alleged that they have the right to receive pre-judgment interest and a portion of their attorney fees, which the Company disagrees with and intends to oppose. While the Company and Boats LLC maintain product liability insurance applicable to this case, such insurance coverage may be limited to $26 million. The Company has filed post-trial motions with the trial judge. In addition, the Company intends to appeal in the event that its post-trial motions are unsuccessful. Pending resolution of the post-trial and appeals process, the payment of any damages in this matter is expected to be stayed. Based on the current status of the process, the Company believes a loss is reasonably possible and that the potential range of loss could be from $0 to $140 million, plus post-judgment interest. As noted above, the Plaintiffs have also alleged that they have the right to receive pre-judgment interest and a portion of their attorney fees, which the Company disagrees with and intends to oppose. The Company did not carry a reserve for loss as of September 30, 2021. Skier's Choice Matter 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 opposed. On August 22, 2019, the motion for consolidation was referred by Judge Thomas Varlan to Magistrate Judge Bruce Guyton, and the two cases were stayed pending resolution of that motion. On November 27, 2019, Judge Guyton ordered the two cases to be consolidated. On January 7, 2020, the consolidated cases were reassigned to Judge Jon McCalla. On January 23, 2020, Judge McCalla issued a Scheduling Order, scheduling trial on the consolidated cases to begin on September 29, 2020. On July 23, 2020, the Company moved to dismiss its allegations of infringement of U.S. Patent No. 9,199,695, which Skier’s Choice opposed. On August 25, 2020, Judge McCalla issued a claim construction order and set a scheduling conference for August 27, 2020, for purposes of resetting the pretrial calendar and trial dates. On September 11, 2020, the Court issued a Scheduling Order resetting the trial for the consolidated cases to begin on January 25, 2021. On December 11, 2020, the Court issued an Order resetting the trial for the consolidated cases to begin on May 10, 2021. During the trial, the Court found that Skier’s Choice did not infringe one claim of the ’873 Patent, and also found that Skier’s Choice did infringe one claim of the ’777 Patent. On May 21, 2021, a jury returned a verdict finding that Skier’s Choice did not infringe three claims from the ’777 and ’161 Patents, and also found four claims from the ’777 and ’161 Patents to be invalid. Malibu did not pursue an appeal of the verdict. On June 4, 2021, Skier’s Choice filed a motion seeking an award of attorney’s fees and costs. Malibu opposed Skier’s Choice’s motion. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has three reportable segments, Malibu, Saltwater Fishing and Cobalt. The Malibu segment participates in the manufacturing, distribution, marketing and sale of Malibu and Axis performance sports boats throughout the world. The Saltwater Fishing segment participates in the manufacturing, distribution, marketing and sale throughout the world of Pursuit boats and the Maverick Boat Group brand boats (Maverick, Cobia, Pathfinder and Hewes). The Cobalt segment participates in the manufacturing, distribution, marketing and sale of Cobalt boats throughout the world. There is no country outside of the United States from which we (a) derived net sales equal to 10% of total net sales, or (b) attributed assets equal to 10% of total assets. Net sales are attributed to countries based on the location of the dealer. The following tables present financial information for the Company’s reportable segments for the three months ended September 30, 2021 and 2020, respectively, and the Company’s financial position at September 30, 2021 and June 30, 2021, respectively: Three Months Ended September 30, 2021 Malibu Saltwater Fishing Cobalt Consolidated Net sales $ 118,252 $ 76,727 $ 58,518 $ 253,497 Income before provision for income taxes $ 21,109 $ 6,992 $ 7,916 $ 36,017 Three Months Ended September 30, 2020 Malibu Saltwater Fishing Cobalt Consolidated Net sales $ 99,831 $ 36,671 $ 44,482 $ 180,984 Income before provision for income taxes $ 17,555 $ 6,074 $ 4,776 $ 28,405 As of September 30, 2021 As of June 30, 2021 Assets Malibu $ 229,643 $ 211,510 Saltwater Fishing 355,376 360,481 Cobalt 168,900 170,793 Total assets $ 753,919 $ 742,784 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn November 3, 2021, the Company's Board of Directors authorized a stock repurchase program to allow for the repurchase of up to $70,000 of its Class A Common Stock and the LLC's LLC Units (the “Repurchase Program”) for the period from November 8, 2021 to November 8, 2022. The Company intends to fund repurchases under the Repurchase Program from cash on hand. |
Organization, Basis of Presen_2
Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
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 and subsidiaries for the year ended June 30, 2021, included in the Company's Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. 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 Acco unting Pronouncements In March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting, which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The elective amendments provide expedients to contract modification, affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by this guidance apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. This guidance is not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The guidance can be applied immediately through December 31, 2022. The Company will adopt this standard when LIBOR is discontinued and does not expect a material impact to its financial condition, results of operations or disclosures based on the current debt portfolio and capital structure. 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, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables disaggregate the Company's revenue by major product type and geography: Three Months Ended September 30, 2021 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 113,611 $ 76,409 $ 57,833 $ 247,853 Part and other sales 4,641 318 685 5,644 Total revenue $ 118,252 $ 76,727 $ 58,518 $ 253,497 Revenue by geography: North America $ 103,219 $ 73,712 $ 54,639 $ 231,570 International 15,033 3,015 3,879 21,927 Total revenue $ 118,252 $ 76,727 $ 58,518 $ 253,497 Three Months Ended September 30, 2020 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 93,994 $ 36,403 $ 43,405 $ 173,802 Part and other sales 5,837 268 1,077 7,182 Total revenue $ 99,831 $ 36,671 $ 44,482 $ 180,984 Revenue by geography: North America $ 95,918 $ 35,750 $ 43,953 $ 175,621 International 3,913 921 529 5,363 Total revenue $ 99,831 $ 36,671 $ 44,482 $ 180,984 |
Non-controlling Interest (Table
Non-controlling Interest (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interest | The ownership of the LLC is summarized as follows: As of September 30, 2021 As of June 30, 2021 Units Ownership % Units Ownership % Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC 600,919 2.8 % 600,919 2.8 % Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC 20,839,687 97.2 20,847,019 97.2 21,440,606 100.0 % 21,447,938 100.0 % |
Acquisition of Maverick Boat _2
Acquisition of Maverick Boat Group (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price allocation based on the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: Consideration: Cash consideration paid $ 150,675 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash $ 248 Accounts receivable 3,204 Inventories 7,756 Other current assets 194 Property, plant and equipment 22,618 Identifiable intangible assets 102,600 Other assets 4,410 Current liabilities (6,611) Deferred tax liabilities (28,528) Other liabilities (4,405) Fair value of assets acquired and liabilities assumed 101,486 Goodwill 49,189 Total purchase price $ 150,675 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The fair value estimates for the Company's identifiable intangible assets acquired as part of the acquisition are as follows: Estimates of Fair Value Estimated Useful Life (in years) Definite-lived intangibles: Dealer relationships $ 47,900 20 Total definite-lived intangibles 47,900 Indefinite-lived intangible: Trade name 54,700 Total other intangible assets $ 102,600 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma consolidated results of operations for the three months ended September 30, 2021 and 2020, assumes that the acquisition of Maverick Boat Group occurred as of July 1, 2020. The unaudited interim pro forma financial information combines historical results of Malibu and Maverick Boat Group, with adjustments for depreciation and amortization attributable to fair value estimates on acquired tangible and intangible assets for the respective periods. Non-recurring pro forma adjustments associated with the fair value step up of inventory were included in the reported pro forma cost of sales and earnings. The unaudited interim pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal year 2021 or the results that may occur in the future: Three Months Ended September 30, 2021 2020 Net sales $ 253,497 $ 208,303 Net income 27,933 23,213 Net income attributable to Malibu Boats, Inc. 26,944 22,237 Basic earnings per share $ 1.29 $ 1.08 Diluted earnings per share $ 1.28 $ 1.07 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories, net consisted of the following: As of September 30, 2021 As of June 30, 2021 Raw materials $ 109,456 $ 92,324 Work in progress 20,269 15,862 Finished goods 9,018 8,499 Total inventories $ 138,743 $ 116,685 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net consisted of the following: As of September 30, 2021 As of June 30, 2021 Land $ 4,731 $ 4,600 Building and leasehold improvements 74,688 74,622 Machinery and equipment 71,915 66,792 Furniture and fixtures 9,997 9,600 Construction in process 29,815 22,005 191,146 177,619 Less: Accumulated depreciation (49,585) (44,706) Property, plant and equipment, net $ 141,561 $ 132,913 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the three months ended September 30, 2021 were as follows: Malibu Saltwater Fishing Cobalt Consolidated Goodwill as of June 30, 2021 $ 12,528 $ 68,714 $ 19,791 $ 101,033 Effect of foreign currency changes on goodwill (268) — — (268) Goodwill as of September 30, 2021 $ 12,260 $ 68,714 $ 19,791 $ 100,765 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The components of other intangible assets were as follows: As of September 30, 2021 As of June 30, 2021 Estimated Useful Life (in years) Weighted Average Remaining Useful Life Definite-lived intangibles: Dealer relationships $ 131,908 $ 159,394 15 - 20 17.3 Patent 2,600 3,986 15 10.8 Trade name 100 24,667 15 8.7 Non-compete agreement 50 53 10 3.1 Total 134,658 188,100 Less: Accumulated amortization (19,403) (70,937) Total definite-lived intangible assets, net 115,255 117,163 Indefinite-lived intangible: Trade name 118,200 118,200 Total other intangible assets, net $ 233,455 $ 235,363 |
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 2022 $ 5,100 2023 6,819 2024 6,819 2025 6,815 2026 6,814 2027 and thereafter 82,888 $ 115,255 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: As of September 30, 2021 As of June 30, 2021 Warranties $ 35,697 $ 35,035 Dealer incentives 7,992 12,479 Accrued compensation 15,429 19,965 Current operating lease liabilities 2,025 2,027 Accrued legal and professional fees 1,687 1,440 Customer deposits 5,689 3,449 Other accrued expenses 2,827 2,784 Total accrued expenses $ 71,346 $ 77,179 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 Beginning balance $ 35,035 $ 27,500 Add: Warranty expense 4,742 4,855 Less: Warranty claims paid (4,080) (3,278) Ending balance $ 35,697 $ 29,077 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Outstanding debt consisted of the following: As of September 30, 2021 As of June 30, 2021 Term loan $ 99,063 $ 99,375 Revolving credit loan 25,000 45,000 Less unamortized debt issuance costs (952) (1,100) Total debt 123,111 143,275 Less current maturities 76,250 4,250 Long-term debt less current maturities $ 46,861 $ 139,025 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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: Classification As of September 30, 2021 As of June 30, 2021 Assets Right-of-use assets Other assets $ 12,088 $ 12,606 Liabilities Current operating lease liabilities Accrued expenses $ 2,025 $ 2,027 Long-term operating lease liabilities Other liabilities 11,659 12,198 Total lease liabilities $ 13,684 $ 14,225 |
Lease, Cost | Classification Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Operating lease costs (1) Cost of sales $ 642 $ 508 Selling and marketing, and general and administrative 216 214 Sublease income Other income, net 10 10 Cash paid for amounts included in the measurement of operating lease liabilities Cash flows from operating activities 628 656 (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, 2021 are as follows: Amount Remainder of 2022 $ 1,863 2023 2,502 2024 2,585 2025 2,310 2026 2,255 2027 and thereafter 3,759 Total 15,274 Less: imputed interest (1,590) Present value of lease liabilities $ 13,684 |
Tax Receivable Agreement Liab_2
Tax Receivable Agreement Liability (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021 As of June 30, 2021 Beginning fiscal year balance $ 48,214 $ 49,665 Additions (reductions) to tax receivable agreement: Exchange of LLC Units for Class A Common Stock — 2,142 Adjustment for change in estimated tax rate — (88) Payments under tax receivable agreement — (3,505) 48,214 48,214 Less: current portion under tax receivable agreement (3,773) (3,773) Ending balance $ 44,441 $ 44,441 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021: Shares Weighted Average Exercise Price/Share Total outstanding options as of June 30, 2021 161,723 $ 32.64 Options granted — — Options exercised — — Outstanding options as of September 30, 2021 161,723 32.64 Exercisable as of September 30, 2021 134,237 $ 31.46 |
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, 2021: 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, 2021 314,916 $ 44.46 Granted 6,919 80.70 Vested (23,796) 37.83 Forfeited (3,123) 56.52 Total Non-vested Restricted Stock Units and Restricted Stock Awards as of September 30, 2021 294,916 $ 45.72 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 Basic: Net income attributable to Malibu Boats, Inc. $ 26,944 $ 21,093 Shares used in computing basic net income per share: Weighted-average Class A Common Stock 20,620,623 20,435,866 Weighted-average participating restricted stock units convertible into Class A Common Stock 229,358 216,063 Basic weighted-average shares outstanding 20,849,981 20,651,929 Basic net income per share $ 1.29 $ 1.02 Diluted: Net income attributable to Malibu Boats, Inc. $ 26,944 $ 21,093 Shares used in computing diluted net income per share: Basic weighted-average shares outstanding 20,849,981 20,651,929 Restricted stock units granted to employees 140,674 133,213 Stock options granted to employees 87,557 36,928 Market performance awards granted to employees 54,690 42,576 Diluted weighted-average shares outstanding 1 21,132,902 20,864,646 Diluted net income per share $ 1.28 $ 1.01 1 The Company excluded 607,042 and 776,592 potentially dilutive shares from the calculation of diluted net income per share for the three months ended September 30, 2021 and 2020, respectively, as these units would have been antidilutive. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021 and 2020, respectively, and the Company’s financial position at September 30, 2021 and June 30, 2021, respectively: Three Months Ended September 30, 2021 Malibu Saltwater Fishing Cobalt Consolidated Net sales $ 118,252 $ 76,727 $ 58,518 $ 253,497 Income before provision for income taxes $ 21,109 $ 6,992 $ 7,916 $ 36,017 Three Months Ended September 30, 2020 Malibu Saltwater Fishing Cobalt Consolidated Net sales $ 99,831 $ 36,671 $ 44,482 $ 180,984 Income before provision for income taxes $ 17,555 $ 6,074 $ 4,776 $ 28,405 As of September 30, 2021 As of June 30, 2021 Assets Malibu $ 229,643 $ 211,510 Saltwater Fishing 355,376 360,481 Cobalt 168,900 170,793 Total assets $ 753,919 $ 742,784 |
Organization, Basis of Presen_3
Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Sep. 30, 2021brandsegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of brands | brand | 8 |
Number of reportable segments | segment | 3 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 253,497 | $ 180,984 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 231,570 | 175,621 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 21,927 | 5,363 |
Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 247,853 | 173,802 |
Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 5,644 | 7,182 |
Malibu | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 118,252 | 99,831 |
Malibu | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 103,219 | 95,918 |
Malibu | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 15,033 | 3,913 |
Malibu | Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 113,611 | 93,994 |
Malibu | Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,641 | 5,837 |
Saltwater Fishing | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 76,727 | 36,671 |
Saltwater Fishing | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 73,712 | 35,750 |
Saltwater Fishing | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,015 | 921 |
Saltwater Fishing | Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 76,409 | 36,403 |
Saltwater Fishing | Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 318 | 268 |
Cobalt | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 58,518 | 44,482 |
Cobalt | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 54,639 | 43,953 |
Cobalt | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,879 | 529 |
Cobalt | Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 57,833 | 43,405 |
Cobalt | Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 685 | $ 1,077 |
Non-controlling Interest - Owne
Non-controlling Interest - Ownership (Details) - shares | Sep. 30, 2021 | Jun. 30, 2021 |
Class of Stock [Line Items] | ||
Units (in shares) | 21,440,606 | 21,447,938 |
Malibu Boats Holdings LLC | ||
Class of Stock [Line Items] | ||
Ownership % | 100.00% | 100.00% |
Non-controlling Interest in LLC | ||
Class of Stock [Line Items] | ||
Units (in shares) | 600,919 | 600,919 |
Non-controlling Interest in LLC | Malibu Boats Holdings LLC | ||
Class of Stock [Line Items] | ||
Ownership % | 2.80% | 2.80% |
Parent | ||
Class of Stock [Line Items] | ||
Units (in shares) | 20,839,687 | 20,847,019 |
Parent | Malibu Boats Holdings LLC | ||
Class of Stock [Line Items] | ||
Ownership % | 97.20% | 97.20% |
Non-controlling Interest - Narr
Non-controlling Interest - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Non-controlling Interest in LLC | |||
Noncontrolling Interest [Line Items] | |||
Tax distributions payable to non-controlling LLC Unit holders | $ 558 | $ 687 | |
Tax distributions paid to non-controlling LLC Unit holders | $ 687 | $ 104 | |
Treasury Stock, Common | |||
Noncontrolling Interest [Line Items] | |||
Treasury stock, shares, retired (in shares) | 7,332 |
Acquisition of Maverick Boat _3
Acquisition of Maverick Boat Group - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2021 | Jun. 30, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 100,765 | $ 101,033 | |
Maverick Boat Group, Inc. | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 150,675 | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 20 years | ||
Goodwill | $ 49,189 | ||
Maverick Boat Group, Inc. | Dealer relationships | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 20 years |
Acquisition of Maverick Boat _4
Acquisition of Maverick Boat Group - Purchase Price Allocation by Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2021 | Jun. 30, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 100,765 | $ 101,033 | |
Maverick Boat Group, Inc. | |||
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 150,675 | ||
Cash | 248 | ||
Accounts receivable | 3,204 | ||
Inventories | 7,756 | ||
Other current assets | 194 | ||
Property, plant and equipment | 22,618 | ||
Identifiable intangible assets | 102,600 | ||
Other assets | 4,410 | ||
Current liabilities | (6,611) | ||
Deferred tax liabilities | (28,528) | ||
Other liabilities | (4,405) | ||
Fair value of assets acquired and liabilities assumed | 101,486 | ||
Goodwill | 49,189 | ||
Total purchase price | $ 150,675 |
Acquisition of Maverick Boat _5
Acquisition of Maverick Boat Group - Fair Value of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2021 | Jun. 30, 2021 |
Business Acquisition [Line Items] | |||
Other intangible assets, net | $ 233,455 | $ 235,363 | |
Maverick Boat Group, Inc. | |||
Business Acquisition [Line Items] | |||
Definite-lived intangibles | $ 47,900 | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 20 years | ||
Other intangible assets, net | $ 102,600 | ||
Maverick Boat Group, Inc. | Trade name | |||
Business Acquisition [Line Items] | |||
Indefinite-lived intangible assets | 54,700 | ||
Maverick Boat Group, Inc. | Dealer relationships | |||
Business Acquisition [Line Items] | |||
Definite-lived intangibles | $ 47,900 | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 20 years |
Acquisition of Maverick Boat _6
Acquisition of Maverick Boat Group - Pro Forma Information (Details) - Maverick Boat Group, Inc. - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||
Net sales | $ 253,497 | $ 208,303 |
Net income | 27,933 | 23,213 |
Net income attributable to Malibu Boats, Inc. | $ 26,944 | $ 22,237 |
Basic earnings per share (in USD per share) | $ 1.29 | $ 1.08 |
Diluted earnings per share (in USD per share) | $ 1.28 | $ 1.07 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 109,456 | $ 92,324 |
Work in progress | 20,269 | 15,862 |
Finished goods | 9,018 | 8,499 |
Total inventories | $ 138,743 | $ 116,685 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 191,146 | $ 177,619 | |
Less: Accumulated depreciation | (49,585) | (44,706) | |
Property, plant and equipment, net | 141,561 | 132,913 | |
Depreciation expense | 4,918 | $ 3,486 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,731 | 4,600 | |
Building and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 74,688 | 74,622 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 71,915 | 66,792 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 9,997 | 9,600 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 29,815 | $ 22,005 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill as of June 30, 2021 | $ 101,033 |
Effect of foreign currency changes on goodwill | (268) |
Goodwill as of September 30, 2021 | 100,765 |
Malibu | |
Goodwill [Roll Forward] | |
Goodwill as of June 30, 2021 | 12,528 |
Effect of foreign currency changes on goodwill | (268) |
Goodwill as of September 30, 2021 | 12,260 |
Saltwater Fishing | |
Goodwill [Roll Forward] | |
Goodwill as of June 30, 2021 | 68,714 |
Effect of foreign currency changes on goodwill | 0 |
Goodwill as of September 30, 2021 | 68,714 |
Cobalt | |
Goodwill [Roll Forward] | |
Goodwill as of June 30, 2021 | 19,791 |
Effect of foreign currency changes on goodwill | 0 |
Goodwill as of September 30, 2021 | $ 19,791 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Goodwill [Line Items] | ||
Gross carrying amount | $ 134,658 | $ 188,100 |
Less: Accumulated amortization | (19,403) | (70,937) |
Total definite-lived intangible assets, net | 115,255 | 117,163 |
Total other intangible assets, net | 233,455 | 235,363 |
Trade name | ||
Goodwill [Line Items] | ||
Trade name | 118,200 | 118,200 |
Dealer relationships | ||
Goodwill [Line Items] | ||
Gross carrying amount | $ 131,908 | 159,394 |
Weighted Average Remaining Useful Life (in years) | 17 years 3 months 18 days | |
Dealer relationships | Minimum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 15 years | |
Dealer relationships | Maximum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 20 years | |
Patent | ||
Goodwill [Line Items] | ||
Gross carrying amount | $ 2,600 | 3,986 |
Weighted Average Remaining Useful Life (in years) | 10 years 9 months 18 days | |
Patent | Maximum | ||
Goodwill [Line Items] | ||
Estimated Useful Life (in years) | 15 years | |
Trade name | ||
Goodwill [Line Items] | ||
Gross carrying amount | $ 100 | 24,667 |
Estimated Useful Life (in years) | 15 years | |
Weighted Average Remaining Useful Life (in years) | 8 years 8 months 12 days | |
Non-compete agreement | ||
Goodwill [Line Items] | ||
Gross carrying amount | $ 50 | $ 53 |
Estimated Useful Life (in years) | 10 years | |
Weighted Average Remaining Useful Life (in years) | 3 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, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 1,856 | $ 1,524 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 5,100 | |
2023 | 6,819 | |
2024 | 6,819 | |
2025 | 6,815 | |
2026 | 6,814 | |
2027 and thereafter | 82,888 | |
Total definite-lived intangible assets, net | $ 115,255 | $ 117,163 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Payables and Accruals [Abstract] | ||
Warranties | $ 35,697 | $ 35,035 |
Dealer incentives | 7,992 | 12,479 |
Accrued compensation | 15,429 | 19,965 |
Current operating lease liabilities | 2,025 | 2,027 |
Accrued legal and professional fees | 1,687 | 1,440 |
Customer deposits | 5,689 | 3,449 |
Other accrued expenses | 2,827 | 2,784 |
Total accrued expenses | $ 71,346 | $ 77,179 |
Product Warranties (Details)
Product Warranties (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($)hour | Sep. 30, 2020USD ($) | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Product Warranty Liability [Line Items] | ||||||
Standard product warranty, hours (up to) | hour | 500 | |||||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||||
Beginning balance | $ 35,035 | $ 27,500 | ||||
Add: Warranty expense | 4,742 | 4,855 | ||||
Less: Warranty claims paid | (4,080) | (3,278) | ||||
Ending balance | $ 35,697 | $ 29,077 | ||||
Malibu, Axis and Cobalt Brand Boats | ||||||
Product Warranty Liability [Line Items] | ||||||
Standard product warranty, period (up to) (in years) | 5 years | |||||
Malibu and Axis Brand Boats | ||||||
Product Warranty Liability [Line Items] | ||||||
Standard product warranty, period (up to) (in years) | 5 years | |||||
Gelcoat warranty, period (up to) (in years) | 1 year | |||||
Malibu Brand Boats | ||||||
Product Warranty Liability [Line Items] | ||||||
Standard product warranty, period (up to) (in years) | 5 years | 3 years | ||||
Axis Boats | ||||||
Product Warranty Liability [Line Items] | ||||||
Standard product warranty, period (up to) (in years) | 5 years | 2 years | ||||
Cobalt | ||||||
Product Warranty Liability [Line Items] | ||||||
Structural warranty, period (up to) (in years) | 10 years | |||||
Bow-to-stern warranty on all components (in years) | 5 years | 5 years | 3 years | |||
Gelcoat warranty, period (up to) (in years) | 3 years | |||||
Maverick, Pathfinder, and Hewes Brand Boats | ||||||
Product Warranty Liability [Line Items] | ||||||
Standard product warranty, period (up to) (in years) | 5 years | |||||
Bow-to-stern warranty on all components (in years) | 1 year | |||||
Saltwater Fishing | ||||||
Product Warranty Liability [Line Items] | ||||||
Standard product warranty, period (up to) (in years) | 5 years | |||||
Bow-to-stern warranty on all components (in years) | 2 years | |||||
Cobia | ||||||
Product Warranty Liability [Line Items] | ||||||
Standard product warranty, period (up to) (in years) | 10 years | |||||
Bow-to-stern warranty on all components (in years) | 3 years |
Financing - Outstanding Debt (D
Financing - Outstanding Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Debt Disclosure [Abstract] | ||
Term loan | $ 99,063 | $ 99,375 |
Revolving credit loan | 25,000 | 45,000 |
Less unamortized debt issuance costs | (952) | (1,100) |
Total debt | 123,111 | 143,275 |
Less current maturities | 76,250 | 4,250 |
Long-term debt | $ 46,861 | $ 139,025 |
Financing - Narrative (Details)
Financing - Narrative (Details) - USD ($) | Mar. 31, 2022 | Dec. 30, 2020 | Aug. 24, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2018 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 29, 2020 | Jun. 30, 2017 |
Line of Credit Facility [Line Items] | |||||||||||
Long-term debt | $ 123,111,000 | $ 143,275,000 | |||||||||
Revolving credit loan | 25,000,000 | 45,000,000 | |||||||||
Term loan | 99,063,000 | 99,375,000 | |||||||||
Current maturities of long-term obligations | 76,250,000 | 4,250,000 | |||||||||
Debt issuance costs | 952,000 | $ 1,100,000 | |||||||||
Repayments of debt | 20,000,000 | $ 8,800,000 | |||||||||
Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 170,000,000 | 170,000,000 | $ 120,000,000 | ||||||||
Increase in maximum borrowing capacity | 50,000,000 | ||||||||||
Credit Agreement | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Long-term debt | 99,063,000 | ||||||||||
Outstanding letters of credit | 1,284,000 | ||||||||||
Purchase of stock (up to) | 3,000,000 | ||||||||||
Share repurchase (up to) | $ 35,000,000 | ||||||||||
Period of permitted share repurchases (in years) | 1 year | ||||||||||
Dividend and distributions (up to) | $ 10,000,000 | ||||||||||
Deferred finance costs | $ 2,074,000 | ||||||||||
Debt issuance costs | $ 671,000 | ||||||||||
Credit Agreement | Long-term Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Repayments of debt | $ 50,000,000 | ||||||||||
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] | |||||||||||
Revolving credit loan | 25,000,000 | ||||||||||
Available borrowing capacity | $ 143,716,000 | ||||||||||
Stated interest rate (as a percent) | 1.33% | ||||||||||
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% | ||||||||||
Third Amendment | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Deferred finance costs | $ 638,000 | ||||||||||
Incremental Term Loan | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Term loan | $ 25,000,000 | $ 24,063,000 | $ 25,000,000 | ||||||||
Current maturities of long-term obligations | $ 1,250,000 | ||||||||||
Incremental Term Loan | Secured Debt | Interest Rate through December 31, 2022 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Stated interest rate (as a percent) | 5.00% | 5.00% | |||||||||
Incremental Term Loan | Secured Debt | Interest Rate from January 1, 2023 through June 30, 2024 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Stated interest rate (as a percent) | 7.50% | 7.50% | |||||||||
Existing Term Loans | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Term loan | $ 75,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 6 years 2 months 19 days | 7 years 2 months 1 day |
Weighted average discount rate (as a percent) | 3.63% | 3.65% |
Leases - Schedule of Expense, A
Leases - Schedule of Expense, Assets and Liabilities, Lessee (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Assets | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Right-of-use assets | $ 12,088 | $ 12,606 | |
Liabilities | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses | Accrued expenses | |
Current operating lease liabilities | $ 2,025 | $ 2,027 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Long-term operating lease liabilities | $ 11,659 | $ 12,198 | |
Total lease liabilities | 13,684 | $ 14,225 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 628 | $ 656 | |
Cost of sales | |||
Liabilities | |||
Operating lease costs | 642 | 508 | |
Selling and marketing, and general and administrative | |||
Liabilities | |||
Operating lease costs | 216 | 214 | |
Other income, net | |||
Liabilities | |||
Sublease income | $ 10 | $ 10 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2022 | $ 1,863 | |
2023 | 2,502 | |
2024 | 2,585 | |
2025 | 2,310 | |
2026 | 2,255 | |
2027 and thereafter | 3,759 | |
Total | 15,274 | |
Less: imputed interest | (1,590) | |
Present value of lease liabilities | $ 13,684 | $ 14,225 |
Tax Receivable Agreement Liab_3
Tax Receivable Agreement Liability - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
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 | $ 114,242 | $ 114,242 |
Period of next annual payment (in days) | 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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | |
Tax Receivable Agreement [Roll Forward] | |||
Beginning fiscal year balance | $ 48,214 | ||
Additions (reductions) to tax receivable agreement: | |||
Payments under tax receivable agreement | 0 | $ (3,505) | |
Ending balance | 48,214 | 49,665 | |
Less: current portion under tax receivable agreement | (3,773) | $ (3,773) | |
Payable pursuant to tax receivable agreement, less current portion | 44,441 | $ 44,441 | |
Exchange of LLC Units for Class A Shares | |||
Additions (reductions) to tax receivable agreement: | |||
Exchange of LLC Units for Class A Common Stock | 0 | 2,142 | |
Adjustment for change in estimated tax rate | $ 0 | $ (88) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets, valuation allowance | $ 15,279 | $ 15,279 | |
Tax credit carryforwards, foreign | $ 580 | $ 580 | |
Effective tax rate (as a percent) | 22.40% | 22.40% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jan. 01, 2014 | |
Restricted Stock Units (RSUs) | Non-Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested (in shares) | 796 | ||
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) | 611,998 | ||
Stock compensation expense | $ 1,258 | $ 811 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) | 3 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Shares | |
Outstanding options at beginning of period (in shares) | shares | 161,723 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | 0 |
Outstanding options at end of period (in shares) | shares | 161,723 |
Exercisable at end of period (in shares) | shares | 134,237 |
Weighted Average Exercise Price/Share | |
Outstanding options at beginning of period (in dollars per share) | $ / shares | $ 32.64 |
Options granted (in dollars per share) | $ / shares | 0 |
Options exercised (in dollars per share) | $ / shares | 0 |
Outstanding options at end of period (in dollars per share) | $ / shares | 32.64 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 31.46 |
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, 2021$ / 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 | 314,916 |
Granted (in shares) | shares | 6,919 |
Vested (in shares) | shares | (23,796) |
Forfeited (in shares) | shares | (3,123) |
Total Non-vested Restricted Stock Units and Restricted Stock Awards at end of period (in shares) | shares | 294,916 |
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 | $ 44.46 |
Granted (in dollars per share) | $ / shares | 80.70 |
Vested (in dollars per share) | $ / shares | 37.83 |
Forfeited (in dollars per share) | $ / shares | 56.52 |
Total Non-vested Restricted Stock Units and Restricted Stock Awards at end of period (in dollars per share) | $ / shares | $ 45.72 |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Basic: | ||
Net income attributable to Malibu Boats, Inc. | $ 26,944 | $ 21,093 |
Shares used in computing basic net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,849,981 | 20,651,929 |
Basic net income per share (in dollars per share) | $ 1.29 | $ 1.02 |
Diluted: | ||
Net income attributable to Malibu Boats, Inc. | $ 26,944 | $ 21,093 |
Shares used in computing diluted net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,849,981 | 20,651,929 |
Diluted weighted-average shares outstanding (in shares) | 21,132,902 | 20,864,646 |
Diluted net income per share (in dollars per share) | $ 1.28 | $ 1.01 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 607,042 | 776,592 |
Class A Common Stock | ||
Shares used in computing basic net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,620,623 | 20,435,866 |
Shares used in computing diluted net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,620,623 | 20,435,866 |
Restricted Stock Units (RSUs) | ||
Shares used in computing diluted net income per share: | ||
Awards granted to employees (in shares) | 140,674 | 133,213 |
Employee Stock Option | ||
Shares used in computing diluted net income per share: | ||
Awards granted to employees (in shares) | 87,557 | 36,928 |
Performance Awards | ||
Shares used in computing diluted net income per share: | ||
Awards granted to employees (in shares) | 54,690 | 42,576 |
Fully Vested/Participating | Restricted Stock Units (RSUs) | ||
Shares used in computing basic net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 229,358 | 216,063 |
Shares used in computing diluted net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 229,358 | 216,063 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Thousands | Aug. 28, 2021USD ($) | May 21, 2021claim | May 10, 2021claim | Aug. 22, 2019action | Jun. 27, 2019action | Jan. 12, 2018patent | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) |
Loss Contingencies [Line Items] | ||||||||
Repurchase obligations | $ 83,370 | $ 79,599 | ||||||
Financing receivables | $ 0 | $ 95 | ||||||
Number of patents allegedly infringed upon | patent | 3 | |||||||
Number of actions | action | 2 | 2 | ||||||
Case extension period (in months) | 9 months | |||||||
Number of patents found not infringed upon | claim | 3 | 1 | ||||||
Number of patents found to be infringed upon | claim | 1 | |||||||
Number of patent claims found to be invalid | claim | 4 | |||||||
Batchelder et al. v. Malibu Boats, LLC | Pending Litigation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of plaintiff fault | 0.75 | |||||||
Percentage of damages awarded | 0.15 | |||||||
Estimate of possible loss | $ 140,000 | |||||||
Damages covered by insurance (up to) | 26,000 | |||||||
Batchelder et al. v. Malibu Boats, LLC | Pending Litigation | Compensatory Damages | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded | 80,000 | |||||||
Batchelder et al. v. Malibu Boats, LLC | Pending Litigation | Punitive Damages | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded | $ 80,000 | |||||||
Batchelder et al. v. Malibu Boats, LLC | Pending Litigation | Malibu Boats West, Inc. | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of damages awarded | 0.10 | |||||||
Damages awarded | $ 40,000 | |||||||
Minimum | Batchelder et al. v. Malibu Boats, LLC | Pending Litigation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimate of possible loss | $ 0 | |||||||
Maximum | Batchelder et al. v. Malibu Boats, LLC | Pending Litigation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimate of possible loss | $ 140,000 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Net sales | $ 253,497 | $ 180,984 | |
Income before provision for income taxes | 36,017 | 28,405 | |
Assets | 753,919 | $ 742,784 | |
Malibu | |||
Segment Reporting Information [Line Items] | |||
Net sales | 118,252 | 99,831 | |
Saltwater Fishing | |||
Segment Reporting Information [Line Items] | |||
Net sales | 76,727 | 36,671 | |
Cobalt | |||
Segment Reporting Information [Line Items] | |||
Net sales | 58,518 | 44,482 | |
Operating Segments | Malibu | |||
Segment Reporting Information [Line Items] | |||
Net sales | 118,252 | 99,831 | |
Income before provision for income taxes | 21,109 | 17,555 | |
Assets | 229,643 | 211,510 | |
Operating Segments | Saltwater Fishing | |||
Segment Reporting Information [Line Items] | |||
Net sales | 76,727 | 36,671 | |
Income before provision for income taxes | 6,992 | 6,074 | |
Assets | 355,376 | 360,481 | |
Operating Segments | Cobalt | |||
Segment Reporting Information [Line Items] | |||
Net sales | 58,518 | 44,482 | |
Income before provision for income taxes | 7,916 | $ 4,776 | |
Assets | $ 168,900 | $ 170,793 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) $ in Millions | Nov. 03, 2021USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Authorized repurchase amount | $ 70 |