Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2023 | Oct. 25, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $0.01 | |
Trading Symbol | MBUU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001590976 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --06-30 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,397,303 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 255,830 | $ 302,211 |
Cost of sales | 199,036 | 227,606 |
Gross profit | 56,794 | 74,605 |
Operating expenses: | ||
Selling and marketing | 5,752 | 5,186 |
General and administrative | 20,705 | 19,220 |
Amortization | 1,715 | 1,716 |
Operating income | 28,622 | 48,483 |
Other expense, net: | ||
Other (income) expense, net | (10) | 70 |
Interest expense | 884 | 1,285 |
Other expense, net | 874 | 1,355 |
Income before provision for income taxes | 27,748 | 47,128 |
Provision for income taxes | 6,978 | 11,023 |
Net income | 20,770 | 36,105 |
Net income attributable to non-controlling interest | 511 | 1,222 |
Net income attributable to Malibu Boats, Inc. | 20,259 | 34,883 |
Comprehensive income: | ||
Net income | 20,770 | 36,105 |
Other comprehensive (loss) income: | ||
Change in cumulative translation adjustment | (751) | (1,436) |
Other comprehensive (loss) | (751) | (1,436) |
Comprehensive income | 20,019 | 34,669 |
Less: comprehensive income attributable to non-controlling interest | 493 | 1,173 |
Comprehensive income attributable to Malibu Boats, Inc. | $ 19,526 | $ 33,496 |
Weighted-average shares outstanding used in computing net income per share: | ||
Basic (in shares) | 20,586,487 | 20,459,849 |
Diluted (in shares) | 20,684,230 | 20,632,727 |
Net income available to Class A Common Stock per share: | ||
Basic (in dollars per share) | $ 0.98 | $ 1.70 |
Diluted (in dollars per share) | $ 0.98 | $ 1.69 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Current assets | ||
Cash | $ 45,462 | $ 78,937 |
Trade receivables, net | 64,846 | 68,381 |
Inventories, net | 174,128 | 171,189 |
Prepaid expenses and other current assets | 12,083 | 7,827 |
Total current assets | 296,519 | 326,334 |
Property, plant and equipment, net | 237,548 | 204,792 |
Goodwill | 100,389 | 100,577 |
Other intangible assets, net | 219,717 | 221,458 |
Deferred tax assets | 58,566 | 62,573 |
Other assets | 9,668 | 10,190 |
Total assets | 922,407 | 925,924 |
Current liabilities | ||
Accounts payable | 37,995 | 40,402 |
Accrued expenses | 109,478 | 187,078 |
Income taxes and tax distribution payable | 839 | 847 |
Payable pursuant to tax receivable agreement, current portion | 4,111 | 4,111 |
Total current liabilities | 152,423 | 232,438 |
Deferred tax liabilities | 28,650 | 28,453 |
Other liabilities | 9,468 | 9,926 |
Payable pursuant to tax receivable agreement, less current portion | 39,354 | 39,354 |
Long-term debt | 65,000 | 0 |
Total liabilities | 294,895 | 310,171 |
Commitments and contingencies (See Note 15) | ||
Stockholders' Equity | ||
Preferred Stock, par value $0.01 per share; 25,000,000 shares authorized; no shares issued and outstanding as of September 30, 2023 and June 30, 2023 | 0 | 0 |
Additional paid in capital | 78,194 | 86,321 |
Accumulated other comprehensive loss | (5,091) | (4,340) |
Accumulated earnings | 545,956 | 525,697 |
Total stockholders' equity attributable to Malibu Boats, Inc. | 619,261 | 607,882 |
Non-controlling interest | 8,251 | 7,871 |
Total stockholders’ equity | 627,512 | 615,753 |
Total liabilities and stockholders' equity | 922,407 | 925,924 |
Class A Common Stock | ||
Stockholders' Equity | ||
Common Stock, par value $0.01 per share | 202 | 204 |
Class B Common Stock | ||
Stockholders' Equity | ||
Common Stock, par value $0.01 per share | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Jun. 30, 2023 |
Common stock, shares issued (in shares) | 12 | |
Common stock, shares outstanding (in shares) | 12 | |
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) | 20,404,413 | 20,603,822 |
Common stock, shares outstanding (in shares) | 20,404,413 | 20,603,822 |
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) | 12 | |
Common stock, shares outstanding (in shares) | 12 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid In Capital | Accumulated Other Comprehensive Loss | Accumulated Earnings | Non-controlling Interest in LLC |
Beginning balance (in shares) at Jun. 30, 2022 | 20,501,000 | 10 | |||||||
Beginning balance at Jun. 30, 2022 | $ 513,568 | $ 203 | $ 0 | $ 85,294 | $ (3,507) | $ 421,184 | $ 10,394 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 36,105 | 34,883 | 1,222 | ||||||
Stock based compensation, net of withholding taxes on vested equity awards (in shares) | (12,000) | ||||||||
Stock based compensation, net of withholding taxes on vested equity awards | 743 | 743 | |||||||
Issuances of equity for services | 67 | 67 | |||||||
Repurchase and retirement of common stock (in shares) | (144,000) | ||||||||
Repurchase and retirement of common stock | (7,868) | $ (1) | (7,867) | ||||||
Distributions to LLC Unit holders | (696) | (696) | |||||||
Foreign currency translation adjustment | (1,479) | (1,436) | (43) | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 20,345,000 | 10 | |||||||
Ending balance at Sep. 30, 2022 | $ 540,440 | $ 202 | $ 0 | 78,237 | (4,943) | 456,067 | 10,877 | ||
Beginning balance (in shares) at Jun. 30, 2023 | 12 | 20,603,822 | 20,603,000 | 12 | |||||
Beginning balance at Jun. 30, 2023 | $ 615,753 | $ 204 | $ 0 | 86,321 | (4,340) | 525,697 | 7,871 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 20,770 | 20,259 | 511 | ||||||
Stock based compensation, net of withholding taxes on vested equity awards | 1,443 | 1,443 | |||||||
Issuances of equity for services | 47 | 47 | |||||||
Repurchase and retirement of common stock (in shares) | (199,000) | ||||||||
Repurchase and retirement of common stock | (9,619) | $ (2) | (9,617) | ||||||
Distributions to LLC Unit holders | (114) | (114) | |||||||
Foreign currency translation adjustment | (768) | (751) | (17) | ||||||
Ending balance (in shares) at Sep. 30, 2023 | 20,404,413 | 12 | 20,404,000 | 12 | |||||
Ending balance at Sep. 30, 2023 | $ 627,512 | $ 202 | $ 0 | $ 78,194 | $ (5,091) | $ 545,956 | $ 8,251 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Net income | $ 20,770 | $ 36,105 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Non-cash compensation expense | 1,460 | 1,635 |
Non-cash compensation to directors | 297 | 290 |
Depreciation | 6,324 | 5,296 |
Amortization | 1,715 | 1,716 |
Deferred income taxes | 4,199 | 1,137 |
Other items, net | 533 | 617 |
Change in operating assets and liabilities: | ||
Trade receivables | 3,501 | 5,153 |
Inventories | (3,217) | (25,714) |
Prepaid expenses and other assets | (4,549) | (3,784) |
Accounts payable | (1,995) | 7,154 |
Income taxes payable | 675 | 8,846 |
Accrued expenses | (77,650) | (6,195) |
Other liabilities | (474) | (567) |
Net cash (used in) provided by operating activities | (48,411) | 31,689 |
Investing activities: | ||
Purchases of property, plant and equipment | (39,527) | (12,362) |
Net cash used in investing activities | (39,527) | (12,362) |
Financing activities: | ||
Proceeds from revolving credit facility | 75,000 | 121,700 |
Principal payments on long-term borrowings | 0 | (23,125) |
Payments on revolving credit facility | (10,000) | (147,000) |
Payment of deferred financing costs | 0 | (1,362) |
Cash paid for withholding taxes on vested restricted stock | 0 | (871) |
Distributions to LLC Unit holders | (776) | (1,045) |
Repurchase and retirement of common stock | (9,619) | (7,868) |
Net cash provided by (used in) financing activities | 54,605 | (59,571) |
Effect of exchange rate changes on cash | (142) | (449) |
Changes in cash | (33,475) | (40,693) |
Cash—Beginning of period | 78,937 | 83,744 |
Cash—End of period | 45,462 | 43,051 |
Supplemental cash flow information: | ||
Cash paid for interest | 95 | 1,056 |
Cash paid for income taxes | $ 579 | $ 760 |
Organization, Basis of Presenta
Organization, Basis of Presentation, and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2023 | |
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. (“MBI” and, 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, 2023, 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 There are no 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, 2023 | |
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, 2023 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 99,439 $ 92,252 $ 57,104 $ 248,795 Part and other sales 5,566 370 1,099 7,035 Net Sales $ 105,005 $ 92,622 $ 58,203 $ 255,830 Revenue by geography: North America $ 97,055 $ 91,865 $ 57,456 $ 246,376 International 7,950 757 747 9,454 Net Sales $ 105,005 $ 92,622 $ 58,203 $ 255,830 Three Months Ended September 30, 2022 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 140,163 $ 91,893 $ 63,630 $ 295,686 Part and other sales 5,005 340 1,180 6,525 Net Sales $ 145,168 $ 92,233 $ 64,810 $ 302,211 Revenue by geography: North America $ 130,650 $ 88,941 $ 62,281 $ 281,872 International 14,518 3,292 2,529 20,339 Net Sales $ 145,168 $ 92,233 $ 64,810 $ 302,211 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 the Company's warranty program. Rebates, free flooring and discounts are incentives that the Company provides to its dealers based on sales of eligible products. Part and Other Sales Consists primarily of parts and accessories sales, royalty income and clothing sales. Parts and accessories sales include replacement and aftermarket boat parts and accessories sold to the Company's dealer network. Royalty income is earned from license agreements with various boat manufacturers, including Nautique, Chaparral, Mastercraft, and Tige related to the use of the Company's intellectual property. |
Non-controlling Interest
Non-controlling Interest | 3 Months Ended |
Sep. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interest | Non-controlling InterestThe non-controlling interest on the unaudited interim condensed consolidated statements 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, 2023 As of June 30, 2023 Units Ownership % Units Ownership % Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC 455,919 2.2 % 455,919 2.2 % Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC 20,404,413 97.8 % 20,603,822 97.8 % 20,860,332 100.0 % 21,059,741 100.0 % 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, 2023, the Company did not cause the LLC to issue any LLC Units to the Company. During the three months ended September 30, 2023, 133 LLC Units were canceled in connection with the reversal of previously vested awards and the retirement of 133 treasury shares in accordance with the LLC Agreement . Also during the three months ended September 30, 2023 , 199,276 LLC Units were redeemed and canceled by the LLC in connection with the purchase and retirement of 199,276 treasury shares under the Company's stock repurchase program that expires on November 8, 2023. 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, 2023 and June 30, 2023, tax distributions payable to non-controlling LLC Unit holders were $114 and $776, respectively. During the three months ended September 30, 2023 and 2022, tax distributions paid to the non-controlling LLC Unit holders were $776 and $1,045, respectively. Other Distributions Pursuant to the LLC Agreement, the Company has the right to determine when distributions will be made to LLC members and the amount of any such distributions. If the Company authorizes a distribution, such distribution will be made to the members of the LLC (including the Company) pro rata in accordance with the percentages of their respective LLC Units. |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consisted of the following: As of September 30, 2023 As of June 30, 2023 Raw materials $ 136,266 $ 142,948 Work in progress 25,585 19,222 Finished goods 12,277 9,019 Total inventories $ 174,128 $ 171,189 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 As of June 30, 2023 Land $ 4,905 $ 4,905 Building and leasehold improvements 119,442 119,324 Machinery and equipment 107,498 103,362 Furniture and fixtures 12,819 12,672 Construction in process 82,132 47,482 326,796 287,745 Less: Accumulated depreciation (89,248) (82,953) Property, plant and equipment, net $ 237,548 $ 204,792 Depreciation expense was $6,324 and $5,296 for the three months ended September 30, 2023 and 2022, respectively, substantially all of which was recorded in cost of sales. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 were as follows: Malibu Saltwater Fishing Cobalt Consolidated Goodwill as of June 30, 2023 $ 12,072 $ 68,714 $ 19,791 $ 100,577 Effect of foreign currency changes on goodwill (188) — — (188) Goodwill as of September 30, 2023 $ 11,884 $ 68,714 $ 19,791 $ 100,389 The components of other intangible assets were as follows: As of September 30, 2023 As of June 30, 2023 Estimated Useful Life (in years) Weighted-Average Remaining Useful Life Definite-lived intangibles: Dealer relationships $ 131,659 $ 131,725 15 - 20 15.4 Patent 2,600 2,600 15 8.8 Trade name 100 100 15 6.7 Non-compete agreement 45 46 10 1.1 Total 134,404 134,471 Less: Accumulated amortization (32,887) (31,213) Total definite-lived intangible assets, net 101,517 103,258 Indefinite-lived intangible: Trade name 118,200 118,200 Total other intangible assets, net $ 219,717 $ 221,458 Amortization expense recognized on all amortizable intangibles was $1,715 and $1,716 for the three months ended September 30, 2023 and 2022, respectively. Estimated future amortization expenses as of September 30, 2023 are as follows: Fiscal years ending June 30: Amount Remainder of 2024 $ 5,088 2025 6,799 2026 6,797 2027 6,797 2028 6,797 2029 and thereafter 69,239 $ 101,517 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following: As of September 30, 2023 As of June 30, 2023 Warranties $ 41,597 $ 41,709 Dealer incentives 18,517 14,996 Accrued compensation 17,188 19,671 Current operating lease liabilities 2,324 2,324 Litigation settlement — 100,000 Accrued legal and professional fees 21,866 1,899 Customer deposits 4,202 4,054 Other accrued expenses 3,784 2,425 Total accrued expenses $ 109,478 $ 187,078 Litigation settlement represents the settlement of product liability cases in June 2023 for $100,000. Accrued legal and professional fees includes approximately $21,000 in insurance coverage proceeds that are subject in certain cases to reservations of rights by the insurance carriers. The proceeds will be considered a liability in accrued expenses until the resolution of the litigation. For more information, refer to Note 15 |
Product Warranties
Product Warranties | 3 Months Ended |
Sep. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties The Company's Malibu and Axis brand boats have a limited warranty for a period up to five years. The Company's Cobalt brand boats have (1) a structural warranty of up to ten years which covers the hull, deck joints, bulkheads, floor, transom, stringers, and motor mount and (2) a five 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. Accordingly, the Company has less historical claims experience for warranty years four five 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, 2023 2022 Beginning balance $ 41,709 $ 38,673 Add: Warranty expense 6,414 6,405 Less: Warranty claims paid (6,526) (5,679) Ending balance $ 41,597 $ 39,399 |
Financing
Financing | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Financing | Financing Outstanding debt consisted of the following: As of September 30, 2023 As of June 30, 2023 Term loan $ — $ — Revolving credit loan 65,000 — Total debt 65,000 — Less current maturities — — Long-term debt less current maturities $ 65,000 $ — Long-Term Debt On July 8, 2022, Boats LLC entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) which provides Boats LLC with a revolving credit facility in an aggregate principal amount of up to $350,000. As of September 30, 2023, the Company had $65,000 outstanding under its revolving credit facility and $1,578 in outstanding letters of credit, with $283,422 available for borrowing. The revolving credit facility matures on July 8, 2027. We have the option to request that lenders increase the amount available under the revolving credit facility by, or obtain incremental term loans of, up to $200,000, subject to the terms of the Credit Agreement and only if existing or new lenders choose to provide additional term or revolving commitments. 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 (as defined in the Credit Agreement) plus 0.5%, or one-month Term SOFR (as defined in the Credit Agreement) plus 1% (the “Base Rate”) or (ii) SOFR (as defined in the Credit Agreement), in each case plus an applicable margin ranging from 1.25% to 2.00% with respect to SOFR borrowings and 0.25% to 1.00% with respect to Base Rate borrowings. The applicable margin is based upon the consolidated leverage ratio of the LLC and its subsidiaries. As of September 30, 2023, the interest rate on the Company’s revolving credit facility was 6.72%. The Company is required to pay a commitment fee for any unused portion of the revolving credit facility which ranges from 0.15% to 0.30% per annum, depending on the LLC’s and its subsidiaries’ consolidated leverage ratio. 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 consisting of a minimum ratio of EBITDA to interest expense and a maximum ratio of total debt to EBITDA. The Credit Agreement contains certain customary restrictive covenants regarding indebtedness, liens, fundamental changes, investments, share repurchases, dividends and distributions, disposition of assets, transactions with affiliates, negative pledges, hedging transactions, certain prepayments of indebtedness, accounting changes and governmental regulation. 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 $5,000 in any fiscal year, and (iv) repurchases of the Company's outstanding stock and LLC Units. In addition, the LLC may make unlimited dividends and distributions if its consolidated leverage ratio is 2.75 or less and certain other conditions are met, subject to compliance with certain financial covenants. The Credit Agreement also contains customary events of default. If an event of default has occurred and continues beyond any applicable cure period, the administrative agent may (i) accelerate all outstanding obligations under the Credit Agreement or (ii) terminate the commitments, amongst other remedies. Additionally, the lenders are not obligated to fund any new borrowing under the Credit Agreement while an event of default is continuing. Covenant Compliance As of September 30, 2023, the Company was in compliance with the financial covenants contained in the Credit Agreement. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2023 | |
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 sheets. 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, 2023 As of June 30, 2023 Assets Right-of-use assets Other assets $ 8,358 $ 8,808 Liabilities Current operating lease liabilities Accrued expenses $ 2,324 $ 2,324 Long-term operating lease liabilities Other liabilities 7,317 7,843 Total lease liabilities $ 9,641 $ 10,167 Classification Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Operating lease costs (1) Cost of sales $ 705 $ 667 Selling and marketing, and general and administrative 240 219 Sublease income Other (income) expense, net (10) (10) Cash paid for amounts included in the measurement of operating lease liabilities Cash flows from operating activities 664 623 (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, 2023 and 2022 was 4.34 years and 5.31 years, respectively. As of September 30, 2023 and 2022, the weighted-average discount rate determined based on the Company's incremental borrowing rate is 3.69% and 3.64%, respectively. Future annual minimum lease payments for the following fiscal years as of September 30, 2023 are as follows: Amount Remainder of 2024 $ 1,992 2025 2,370 2026 2,274 2027 2,258 2028 1,505 2029 and thereafter 1 Total 10,400 Less: imputed interest (759) Present value of lease liabilities $ 9,641 |
Tax Receivable Agreement Liabil
Tax Receivable Agreement Liability | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 As of June 30, 2023 Beginning fiscal year balance $ 43,465 $ 45,541 Additions (reductions) to tax receivable agreement: Exchange of LLC Units for Class A Common Stock — 1,710 Adjustment for change in estimated state tax rate or benefits — 188 Payments under tax receivable agreement — (3,974) 43,465 43,465 Less: current portion under tax receivable agreement (4,111) (4,111) Ending balance $ 39,354 $ 39,354 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. As of September 30, 2023 and June 30, 2023, the Company recorded deferred tax assets of $118,148 associated with basis differences in assets upon acquiring an interest in the LLC and pursuant to making an election under Section 754 of the Internal Revenue Code of 1986 (the "Internal Revenue Code"), as amended. The aggregate Tax Receivable Agreement liability represents 85% of the tax benefits that the Company expects to receive in connection with the Section 754 election. In accordance with the Tax Receivable Agreement, the next annual payment is anticipated approximately 75 days after filing the federal tax return due by April 15, 2024. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2023 | |
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. Maverick Boat Group is separately subject to U.S. federal and state income tax with respect to its net taxable income. 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, 2023 and June 30, 2023, the Company maintained a total valuation allowance of $16,895 and $16,876, respectively, against deferred tax assets related to state net operating losses and future amortization deductions (with respect to the Section 754 election) that are reported in the Tennessee corporate tax return without offsetting income, which is taxable at the LLC. These also include 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 August 16, 2022, the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”) was signed into law. The Inflation Reduction Act contains significant business tax provisions, including an excise tax on stock buybacks (1% for transactions beginning January 1, 2023), increased funding for IRS tax enforcement, expanded energy incentives promoting clean energy investment, and a 15% corporate minimum tax on certain large corporations. 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, 2023 relating to the Inflation Reduction Act. For the three months ended September 30, 2023 and 2022, the Company's effective tax rate was 25.1% and 23.4%, respectively. For the three months ended September 30, 2023 and 2022, 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. For the three months ended September 30, 2023, this increase in tax rate was partially offset by the benefit of the foreign derived intangible income deduction. For the three months ended September 30, 2022, this increase in tax rate was partially offset by a windfall benefit generated by certain stock-based compensation as well as the benefit of the foreign derived intangible income deduction. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationThe 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, 2023, 403,182 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, 2023: Shares Weighted-Average Exercise Price/Share Total outstanding options as of June 30, 2023 17,973 $ 37.55 Options granted — — Options exercised — — Outstanding options as of September 30, 2023 17,973 37.55 Exercisable as of September 30, 2023 17,973 $ 37.55 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, 2023: 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, 2023 324,824 $ 57.98 Granted 802 58.66 Vested (802) 58.66 Forfeited (3,026) 56.72 Total Non-vested Restricted Stock Units and Restricted Stock Awards as of September 30, 2023 321,798 $ 57.99 Stock-based compensation expense attributable to the Company's share-based equity awards was $1,460 and $1,635 for the three months ended September 30, 2023 and 2022, respectively. Stock-based compensation expense attributed to share-based equity awards issued und |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Sep. 30, 2023 | |
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 stockholders 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, 2023 2022 Basic: Net income attributable to Malibu Boats, Inc. $ 20,259 $ 34,883 Shares used in computing basic net income per share: Weighted-average Class A Common Stock 20,322,239 20,215,758 Weighted-average participating restricted stock units convertible into Class A Common Stock 264,248 244,091 Basic weighted-average shares outstanding 20,586,487 20,459,849 Basic net income per share $ 0.98 $ 1.70 Diluted: Net income attributable to Malibu Boats, Inc. $ 20,259 $ 34,883 Shares used in computing diluted net income per share: Basic weighted-average shares outstanding 20,586,487 20,459,849 Restricted stock units granted to employees 65,118 90,924 Stock options granted to employees 5,409 14,767 Market performance awards granted to employees 27,216 67,187 Diluted weighted-average shares outstanding 1 20,684,230 20,632,727 Diluted net income per share $ 0.98 $ 1.69 1 The Company excluded 470,262 and 628,436 potentially dilutive shares from the calculation of diluted net income per share for the three months ended September 30, 2023 and 2022, respectively. The shares of Class B Common Stock do not share in the earnings or losses of Malibu Boats, Inc. and are therefore not included in the calculation. Accordingly, basic and diluted net income per share of Class B Common Stock have not been presented. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2023 | |
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 sheets. 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 $400,747 and $385,448 as of September 30, 2023 and June 30, 2023, 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, 2023 and 2022, there were no repurchases and as of September 30, 2023, the Company has not been notified about any probable repossessions. Therefore, the Company did not carry a reserve for repurchases as of September 30, 2023 consistent with June 30, 2023. 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 interim condensed consolidated balance sheets. As of September 30, 2023 and June 30, 2023, the Company had no financing receivables recorded in other current assets and accrued expenses related to these arrangements. Roane County Property Purchase On March 28, 2023, the Company entered into a Purchase and Sale Agreement (the “Purchase Agreement”) to purchase certain real property, improvements and other assets from the seller for a cash purchase price of approximately $33,300. As of June 30, 2023, the Company had deposited approximately $7,800 in escrow pursuant to the Purchase Agreement. On July 25, 2023, the transaction closed and the Company paid the remaining $25,500 balance of the purchase price. In addition to the purchase price, the Company has incurred approximately $5,300 of capital expenditures through September 30, 2023 to update the facility to meet its operational needs and expects to incur additional capital expenditures of approximately $14,100 with respect to the facility. 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 8 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. Management does not believe there are any pending claims (asserted or unasserted) as of September 30, 2023 that would have a material adverse impact on the Company's results of operations, financial condition or cash flows. Legal Proceedings Insurance Litigation MBI and its indirect subsidiary Boats LLC were 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 (the “Batchelder I Matter”), brought by, among others, Stephan Paul Batchelder and Margaret Mary Batchelder as Administrators of the Estate of Ryan Paul Batchelder, deceased (“Batchelder I Plaintiffs”). Boats LLC was also a defendant in a related product liability case, Stephan Paul Batchelder and Margaret Mary Batchelder, as Natural Guardians of Josh Patrick Batchelder, a minor; Darin Batchelder, individually, and as Natural Guardian of Zach Batchelder, a minor; and Kayla Batchelder (the “Batchelder II Plaintiffs” and, together with the Batchelder I Plaintiffs, the “Batchelder Plaintiffs”) v. Malibu Boats, LLC v. Dennis Michael Ficarra; Superior Court of Rabun County, Civil Action File No. 2022-CV-0034 (the “Batchelder II Matter” and, together with the Batchelder I Matter, the “Batchelder Matters”). On June 30, 2023, MBI and Boats LLC entered into a Confidential General Release and Settlement Agreement (the “Settlement Agreement”) with the Batchelder Plaintiffs in settlement of the Batchelder Matters and all matters related to the Batchelder Matters. Pursuant to the Settlement Agreement, among other things, Malibu Boats, Inc., or Boats LLC, as the case may be, paid (or caused to be paid) to the Batchelder Plaintiffs and their agents a total of $100,000, of which (a) $40,000 was paid to the Batchelder Plaintiffs and their agents promptly following the execution of the Settlement Agreement and (b) $60,000 was placed in an escrow account and held by the Escrow Agent pursuant to the terms of an Escrow Agreement. All conditions for releasing the $60,000 placed in the escrow account have been satisfied. MBI and its subsidiaries, including Boats LLC, maintain liability insurance applicable to the Batchelder Matters described above with coverage up to $26,000. As of September 30, 2023, the Company had received approximately $21,000 in insurance coverage proceeds, subject in certain cases to reservations of rights by the insurance carriers. The Company contends that the insurance carriers are responsible for the entirety of the $100,000 settlement amount and related expenses, and therefore, the insurers’ payments to date are well below what they should have tendered to Boats LLC. Accordingly, on July 3, 2023, Boats LLC filed a complaint against Federal Insurance Company and Starr Indemnity & Liability Company alleging that the insurers unreasonably failed to comply with their obligations by refusing, negligently, and in bad faith, to settle covered claims within their available policy limits prior to trial. The Company intends to vigorously pursue its claims against its insurers to recover the full $100,000 settlement amount and expenses (less any monies already tendered without reservation by the carriers). However, the Company cannot predict the outcome of such litigation. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Sep. 30, 2023 | |
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 the Company (a) derived net sales equal to 10% of total net sales for the three months ended September 30, 2023, or (b) attributed assets equal to 10% of total assets as of September 30, 2023. 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, 2023 and 2022, respectively, and the Company’s financial position at September 30, 2023 and June 30, 2023, respectively: Three Months Ended September 30, 2023 Malibu Saltwater Fishing Cobalt Consolidated Net sales $ 105,005 $ 92,622 $ 58,203 $ 255,830 Income before provision for income taxes $ 11,937 $ 8,995 $ 6,816 $ 27,748 Three Months Ended September 30, 2022 Malibu Saltwater Fishing Cobalt Consolidated Net sales $ 145,168 $ 92,233 $ 64,810 $ 302,211 Income before provision for income taxes $ 27,916 $ 10,260 $ 8,952 $ 47,128 As of September 30, 2023 As of June 30, 2023 Assets Malibu $ 235,411 $ 249,447 Saltwater Fishing 437,102 432,806 Cobalt 249,894 243,671 Total assets $ 922,407 $ 925,924 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn October 26, 2023, the Company's Board of Directors authorized a stock repurchase program to allow for the repurchase of up to $100,000 of its Class A Common Stock and the LLC's LLC Units (the “2023 Repurchase Program”) for the period from November 8, 2023 to November 8, 2024. The Company intends to fund repurchases under the 2023 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, 2023 | |
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, 2023, 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 There are no 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, 2023 | |
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, 2023 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 99,439 $ 92,252 $ 57,104 $ 248,795 Part and other sales 5,566 370 1,099 7,035 Net Sales $ 105,005 $ 92,622 $ 58,203 $ 255,830 Revenue by geography: North America $ 97,055 $ 91,865 $ 57,456 $ 246,376 International 7,950 757 747 9,454 Net Sales $ 105,005 $ 92,622 $ 58,203 $ 255,830 Three Months Ended September 30, 2022 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 140,163 $ 91,893 $ 63,630 $ 295,686 Part and other sales 5,005 340 1,180 6,525 Net Sales $ 145,168 $ 92,233 $ 64,810 $ 302,211 Revenue by geography: North America $ 130,650 $ 88,941 $ 62,281 $ 281,872 International 14,518 3,292 2,529 20,339 Net Sales $ 145,168 $ 92,233 $ 64,810 $ 302,211 |
Non-controlling Interest (Table
Non-controlling Interest (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Non-controlling Interest | The ownership of the LLC is summarized as follows: As of September 30, 2023 As of June 30, 2023 Units Ownership % Units Ownership % Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC 455,919 2.2 % 455,919 2.2 % Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC 20,404,413 97.8 % 20,603,822 97.8 % 20,860,332 100.0 % 21,059,741 100.0 % |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories, net consisted of the following: As of September 30, 2023 As of June 30, 2023 Raw materials $ 136,266 $ 142,948 Work in progress 25,585 19,222 Finished goods 12,277 9,019 Total inventories $ 174,128 $ 171,189 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following: As of September 30, 2023 As of June 30, 2023 Land $ 4,905 $ 4,905 Building and leasehold improvements 119,442 119,324 Machinery and equipment 107,498 103,362 Furniture and fixtures 12,819 12,672 Construction in process 82,132 47,482 326,796 287,745 Less: Accumulated depreciation (89,248) (82,953) Property, plant and equipment, net $ 237,548 $ 204,792 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the three months ended September 30, 2023 were as follows: Malibu Saltwater Fishing Cobalt Consolidated Goodwill as of June 30, 2023 $ 12,072 $ 68,714 $ 19,791 $ 100,577 Effect of foreign currency changes on goodwill (188) — — (188) Goodwill as of September 30, 2023 $ 11,884 $ 68,714 $ 19,791 $ 100,389 |
Components of Finite-Lived Intangible Assets | The components of other intangible assets were as follows: As of September 30, 2023 As of June 30, 2023 Estimated Useful Life (in years) Weighted-Average Remaining Useful Life Definite-lived intangibles: Dealer relationships $ 131,659 $ 131,725 15 - 20 15.4 Patent 2,600 2,600 15 8.8 Trade name 100 100 15 6.7 Non-compete agreement 45 46 10 1.1 Total 134,404 134,471 Less: Accumulated amortization (32,887) (31,213) Total definite-lived intangible assets, net 101,517 103,258 Indefinite-lived intangible: Trade name 118,200 118,200 Total other intangible assets, net $ 219,717 $ 221,458 |
Components of Indefinite-Lived Intangible Assets | The components of other intangible assets were as follows: As of September 30, 2023 As of June 30, 2023 Estimated Useful Life (in years) Weighted-Average Remaining Useful Life Definite-lived intangibles: Dealer relationships $ 131,659 $ 131,725 15 - 20 15.4 Patent 2,600 2,600 15 8.8 Trade name 100 100 15 6.7 Non-compete agreement 45 46 10 1.1 Total 134,404 134,471 Less: Accumulated amortization (32,887) (31,213) Total definite-lived intangible assets, net 101,517 103,258 Indefinite-lived intangible: Trade name 118,200 118,200 Total other intangible assets, net $ 219,717 $ 221,458 |
Schedule of Future Amortization of Definite-Lived Intangible Assets | Estimated future amortization expenses as of September 30, 2023 are as follows: Fiscal years ending June 30: Amount Remainder of 2024 $ 5,088 2025 6,799 2026 6,797 2027 6,797 2028 6,797 2029 and thereafter 69,239 $ 101,517 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: As of September 30, 2023 As of June 30, 2023 Warranties $ 41,597 $ 41,709 Dealer incentives 18,517 14,996 Accrued compensation 17,188 19,671 Current operating lease liabilities 2,324 2,324 Litigation settlement — 100,000 Accrued legal and professional fees 21,866 1,899 Customer deposits 4,202 4,054 Other accrued expenses 3,784 2,425 Total accrued expenses $ 109,478 $ 187,078 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Changes in 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, 2023 2022 Beginning balance $ 41,709 $ 38,673 Add: Warranty expense 6,414 6,405 Less: Warranty claims paid (6,526) (5,679) Ending balance $ 41,597 $ 39,399 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Outstanding debt consisted of the following: As of September 30, 2023 As of June 30, 2023 Term loan $ — $ — Revolving credit loan 65,000 — Total debt 65,000 — Less current maturities — — Long-term debt less current maturities $ 65,000 $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 As of June 30, 2023 Assets Right-of-use assets Other assets $ 8,358 $ 8,808 Liabilities Current operating lease liabilities Accrued expenses $ 2,324 $ 2,324 Long-term operating lease liabilities Other liabilities 7,317 7,843 Total lease liabilities $ 9,641 $ 10,167 |
Schedule of Lease Cost | Classification Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Operating lease costs (1) Cost of sales $ 705 $ 667 Selling and marketing, and general and administrative 240 219 Sublease income Other (income) expense, net (10) (10) Cash paid for amounts included in the measurement of operating lease liabilities Cash flows from operating activities 664 623 (1) Includes short-term leases, which are insignificant, and are not included in the lease liability. |
Schedule of Future Minimum Lease Payments for Operating Leases | Future annual minimum lease payments for the following fiscal years as of September 30, 2023 are as follows: Amount Remainder of 2024 $ 1,992 2025 2,370 2026 2,274 2027 2,258 2028 1,505 2029 and thereafter 1 Total 10,400 Less: imputed interest (759) Present value of lease liabilities $ 9,641 |
Tax Receivable Agreement Liab_2
Tax Receivable Agreement Liability (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Tax Receivable Agreement [Abstract] | |
Changes to Tax Receivable Agreement | The following table reflects the changes to the Company's tax receivable agreement liability: As of September 30, 2023 As of June 30, 2023 Beginning fiscal year balance $ 43,465 $ 45,541 Additions (reductions) to tax receivable agreement: Exchange of LLC Units for Class A Common Stock — 1,710 Adjustment for change in estimated state tax rate or benefits — 188 Payments under tax receivable agreement — (3,974) 43,465 43,465 Less: current portion under tax receivable agreement (4,111) (4,111) Ending balance $ 39,354 $ 39,354 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of 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, 2023: Shares Weighted-Average Exercise Price/Share Total outstanding options as of June 30, 2023 17,973 $ 37.55 Options granted — — Options exercised — — Outstanding options as of September 30, 2023 17,973 37.55 Exercisable as of September 30, 2023 17,973 $ 37.55 |
Schedule of Summary of the Changes in Non-vested Restricted Stock | 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, 2023: 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, 2023 324,824 $ 57.98 Granted 802 58.66 Vested (802) 58.66 Forfeited (3,026) 56.72 Total Non-vested Restricted Stock Units and Restricted Stock Awards as of September 30, 2023 321,798 $ 57.99 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 Basic: Net income attributable to Malibu Boats, Inc. $ 20,259 $ 34,883 Shares used in computing basic net income per share: Weighted-average Class A Common Stock 20,322,239 20,215,758 Weighted-average participating restricted stock units convertible into Class A Common Stock 264,248 244,091 Basic weighted-average shares outstanding 20,586,487 20,459,849 Basic net income per share $ 0.98 $ 1.70 Diluted: Net income attributable to Malibu Boats, Inc. $ 20,259 $ 34,883 Shares used in computing diluted net income per share: Basic weighted-average shares outstanding 20,586,487 20,459,849 Restricted stock units granted to employees 65,118 90,924 Stock options granted to employees 5,409 14,767 Market performance awards granted to employees 27,216 67,187 Diluted weighted-average shares outstanding 1 20,684,230 20,632,727 Diluted net income per share $ 0.98 $ 1.69 1 The Company excluded 470,262 and 628,436 potentially dilutive shares from the calculation of diluted net income per share for the three months ended September 30, 2023 and 2022, respectively. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022, respectively, and the Company’s financial position at September 30, 2023 and June 30, 2023, respectively: Three Months Ended September 30, 2023 Malibu Saltwater Fishing Cobalt Consolidated Net sales $ 105,005 $ 92,622 $ 58,203 $ 255,830 Income before provision for income taxes $ 11,937 $ 8,995 $ 6,816 $ 27,748 Three Months Ended September 30, 2022 Malibu Saltwater Fishing Cobalt Consolidated Net sales $ 145,168 $ 92,233 $ 64,810 $ 302,211 Income before provision for income taxes $ 27,916 $ 10,260 $ 8,952 $ 47,128 As of September 30, 2023 As of June 30, 2023 Assets Malibu $ 235,411 $ 249,447 Saltwater Fishing 437,102 432,806 Cobalt 249,894 243,671 Total assets $ 922,407 $ 925,924 |
Organization, Basis of Presen_3
Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Sep. 30, 2023 brand segment | |
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, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 255,830 | $ 302,211 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 246,376 | 281,872 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 9,454 | 20,339 |
Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 248,795 | 295,686 |
Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 7,035 | 6,525 |
Malibu | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 105,005 | 145,168 |
Malibu | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 97,055 | 130,650 |
Malibu | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 7,950 | 14,518 |
Malibu | Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 99,439 | 140,163 |
Malibu | Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 5,566 | 5,005 |
Saltwater Fishing | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 92,622 | 92,233 |
Saltwater Fishing | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 91,865 | 88,941 |
Saltwater Fishing | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 757 | 3,292 |
Saltwater Fishing | Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 92,252 | 91,893 |
Saltwater Fishing | Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 370 | 340 |
Cobalt | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 58,203 | 64,810 |
Cobalt | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 57,456 | 62,281 |
Cobalt | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 747 | 2,529 |
Cobalt | Boat and trailer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 57,104 | 63,630 |
Cobalt | Part and other sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,099 | $ 1,180 |
Non-controlling Interest - Owne
Non-controlling Interest - Ownership (Details) - Malibu Boats Holdings LLC - shares | Sep. 30, 2023 | Jun. 30, 2023 |
Class of Stock [Line Items] | ||
Units (in shares) | 20,860,332 | 21,059,741 |
Ownership (as a percent) | 100% | 100% |
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC | ||
Class of Stock [Line Items] | ||
Units (in shares) | 455,919 | 455,919 |
Ownership (as a percent) | 2.20% | 2.20% |
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC | ||
Class of Stock [Line Items] | ||
Units (in shares) | 20,404,413 | 20,603,822 |
Ownership (as a percent) | 97.80% | 97.80% |
Non-controlling Interest - Narr
Non-controlling Interest - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Noncontrolling Interest [Line Items] | |||
Cancelled shares due to vesting of employee awards (in shares) | 133 | ||
Common units, retired (in shares) | 133 | ||
Non-controlling Interest in LLC | |||
Noncontrolling Interest [Line Items] | |||
Tax distributions payable to non-controlling LLC Unit holders | $ 114 | $ 776 | |
Distribution paid to noncontrolling interests | $ 776 | $ 1,045 | |
Repurchase Agreements | |||
Noncontrolling Interest [Line Items] | |||
Stock repurchased during period (in shares) | 199,276 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 136,266 | $ 142,948 |
Work in progress | 25,585 | 19,222 |
Finished goods | 12,277 | 9,019 |
Total inventories | $ 174,128 | $ 171,189 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 326,796 | $ 287,745 | |
Less: Accumulated depreciation | (89,248) | (82,953) | |
Property, plant and equipment, net | 237,548 | 204,792 | |
Depreciation expense | 6,324 | $ 5,296 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,905 | 4,905 | |
Building and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 119,442 | 119,324 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 107,498 | 103,362 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 12,819 | 12,672 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 82,132 | $ 47,482 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill as of June 30, 2023 | $ 100,577 |
Effect of foreign currency changes on goodwill | (188) |
Goodwill as of September 30, 2023 | 100,389 |
Malibu | |
Goodwill [Roll Forward] | |
Goodwill as of June 30, 2023 | 12,072 |
Effect of foreign currency changes on goodwill | (188) |
Goodwill as of September 30, 2023 | 11,884 |
Saltwater Fishing | |
Goodwill [Roll Forward] | |
Goodwill as of June 30, 2023 | 68,714 |
Effect of foreign currency changes on goodwill | 0 |
Goodwill as of September 30, 2023 | 68,714 |
Cobalt | |
Goodwill [Roll Forward] | |
Goodwill as of June 30, 2023 | 19,791 |
Effect of foreign currency changes on goodwill | 0 |
Goodwill as of September 30, 2023 | $ 19,791 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Components of Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 134,404 | $ 134,471 |
Less: Accumulated amortization | (32,887) | (31,213) |
Total definite-lived intangible assets, net | 101,517 | 103,258 |
Indefinite-lived intangible: | ||
Total other intangible assets, net | 219,717 | 221,458 |
Trade name | ||
Indefinite-lived intangible: | ||
Trade name | 118,200 | 118,200 |
Dealer relationships | ||
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 131,659 | 131,725 |
Weighted-Average Remaining Useful Life (in years) | 15 years 4 months 24 days | |
Dealer relationships | Minimum | ||
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in years) | 15 years | |
Dealer relationships | Maximum | ||
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in years) | 20 years | |
Patent | ||
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 2,600 | 2,600 |
Estimated Useful Life (in years) | 15 years | |
Weighted-Average Remaining Useful Life (in years) | 8 years 9 months 18 days | |
Trade name | ||
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 100 | 100 |
Estimated Useful Life (in years) | 15 years | |
Weighted-Average Remaining Useful Life (in years) | 6 years 8 months 12 days | |
Non-compete agreement | ||
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 45 | $ 46 |
Estimated Useful Life (in years) | 10 years | |
Weighted-Average Remaining Useful Life (in years) | 1 year 1 month 6 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 1,715 | $ 1,716 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2024 | $ 5,088 | |
2025 | 6,799 | |
2026 | 6,797 | |
2027 | 6,797 | |
2028 | 6,797 | |
2029 and thereafter | 69,239 | |
Total definite-lived intangible assets, net | $ 101,517 | $ 103,258 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Payables and Accruals [Abstract] | ||
Warranties | $ 41,597 | $ 41,709 |
Dealer incentives | 18,517 | 14,996 |
Accrued compensation | 17,188 | 19,671 |
Current operating lease liabilities | 2,324 | 2,324 |
Litigation settlement | 0 | 100,000 |
Accrued legal and professional fees | 21,866 | 1,899 |
Customer deposits | 4,202 | 4,054 |
Other accrued expenses | 3,784 | 2,425 |
Total accrued expenses | $ 109,478 | $ 187,078 |
Accrued Expenses - Narrative (D
Accrued Expenses - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Loss Contingencies [Line Items] | ||
Litigation settlement | $ 0 | $ 100,000 |
Settled Litigation | Product Liability Cases | ||
Loss Contingencies [Line Items] | ||
Litigation settlement | $ 100,000 |
Product Warranties - Narrative
Product Warranties - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period, year four | 4 years | ||||
Standard product warranty, period, year five | 5 years | ||||
Malibu and Axis Brand Boats | Gelcoat | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 1 year | ||||
Malibu and Axis Brand Boats | Engines | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, term, hours | 500 hours | ||||
Cobalt | Structural Warranty | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 5 years | ||||
Cobalt | Bow-to-stern | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 5 years | 3 years | |||
Saltwater Fishing | Bow-to-stern | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 2 years | ||||
Maverick, Pathfinder, and Hewes Brand Boats | Bow-to-stern | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 1 year | ||||
Cobia | Bow-to-stern | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 3 years | ||||
Malibu Brand Boats | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 5 years | 3 years | |||
Axis Boats | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 5 years | 2 years | |||
Maximum | Malibu and Axis Brand Boats | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 5 years | ||||
Maximum | Malibu and Axis Brand Boats | Engines | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 5 years | ||||
Maximum | Cobalt | Structural Warranty | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 10 years | ||||
Maximum | Cobalt | Gelcoat | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 3 years | ||||
Maximum | Saltwater Fishing | Structural Warranty And Gelcoat | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 5 years | ||||
Maximum | Maverick, Pathfinder, and Hewes Brand Boats | Structural Warranty And Gelcoat | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 5 years | ||||
Maximum | Cobia | Structural Warranty And Gelcoat | |||||
Product Warranty Liability [Line Items] | |||||
Standard product warranty, period | 10 years |
Product Warranties - Schedule o
Product Warranties - Schedule of Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 41,709 | $ 38,673 |
Add: Warranty expense | 6,414 | 6,405 |
Less: Warranty claims paid | (6,526) | (5,679) |
Ending balance | $ 41,597 | $ 39,399 |
Financing - Schedule of Debt (D
Financing - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Line of Credit Facility [Line Items] | ||
Total debt | $ 65,000 | $ 0 |
Less current maturities | 0 | 0 |
Long-term debt less current maturities | 65,000 | 0 |
Long-term Debt | Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Total debt | 0 | 0 |
Line of Credit | Revolving Credit Facility | Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Total debt | $ 65,000 | $ 0 |
Financing - Narrative (Details)
Financing - Narrative (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Jul. 08, 2022 | |
Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 1,578,000 | |
Effective interest rate (as a percent) | 6.72% | |
Maximum amount, purchase of stock or stock options (up to) | $ 5,000,000 | |
Consolidated leverage ratio | 2.75 | |
Incremental Term Loans | ||
Line of Credit Facility [Line Items] | ||
Outstanding principal | $ 200,000,000 | |
Revolving Credit Facility | Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Remaining borrowing capacity | $ 283,422,000 | |
Revolving Credit Facility | Credit Agreement | Minimum | ||
Line of Credit Facility [Line Items] | ||
Unused capacity, commitment fee percentage (as a percent) | 0.15% | |
Revolving Credit Facility | Credit Agreement | Maximum | ||
Line of Credit Facility [Line Items] | ||
Unused capacity, commitment fee percentage (as a percent) | 0.30% | |
Revolving Credit Facility | Credit Agreement | Federal Funds | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.50% | |
Revolving Credit Facility | Credit Agreement | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percent) | 1% | |
Revolving Credit Facility | Credit Agreement | Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.25% | |
Revolving Credit Facility | Credit Agreement | Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percent) | 1% | |
Revolving Credit Facility | Credit Agreement | SOFR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.25% | |
Revolving Credit Facility | Credit Agreement | SOFR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percent) | 2% | |
Line of Credit | Revolving Credit Facility | Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 350,000,000 | |
Incremental term loans, amount | $ 65,000,000 |
Leases - Schedule of Assets And
Leases - Schedule of Assets And Liabilities, Lessee (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Assets | ||
Right-of-use assets | $ 8,358 | $ 8,808 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Liabilities | ||
Current operating lease liabilities | $ 2,324 | $ 2,324 |
Long-term operating lease liabilities | 7,317 | 7,843 |
Total lease liabilities | $ 9,641 | $ 10,167 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses | Accrued expenses |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Leased Assets [Line Items] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 664 | $ 623 |
Cost of sales | ||
Operating Leased Assets [Line Items] | ||
Operating lease costs | 705 | 667 |
Selling and marketing, and general and administrative | ||
Operating Leased Assets [Line Items] | ||
Operating lease costs | 240 | 219 |
Other (income) expense, net | ||
Operating Leased Assets [Line Items] | ||
Sublease income | $ (10) | $ (10) |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2023 | Sep. 30, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 4 years 4 months 2 days | 5 years 3 months 21 days |
Weighted average discount rate (as a percent) | 3.69% | 3.64% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2024 | $ 1,992 | |
2025 | 2,370 | |
2026 | 2,274 | |
2027 | 2,258 | |
2028 | 1,505 | |
2029 and thereafter | 1 | |
Total | 10,400 | |
Less: imputed interest | (759) | |
Present value of lease liabilities | $ 9,641 | $ 10,167 |
Tax Receivable Agreement Liab_3
Tax Receivable Agreement Liability - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | |
Tax Receivable Agreement [Abstract] | ||
Tax receivable agreement, percentage of realized cash saving in tax to be pass through (as a percent) | 85% | |
Investment in subsidiaries | $ 118,148 | $ 118,148 |
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, 2023 | Jun. 30, 2023 | |
Tax Receivable Agreement [Roll Forward] | ||
Beginning fiscal year balance | $ 43,465 | $ 45,541 |
Additions (reductions) to tax receivable agreement: | ||
Exchange of LLC Units for Class A Common Stock | 0 | 1,710 |
Adjustment for change in estimated state tax rate or benefits | 0 | 188 |
Payments under tax receivable agreement | 0 | (3,974) |
Ending fiscal year balance | 43,465 | 43,465 |
Less: current portion under tax receivable agreement | (4,111) | (4,111) |
Ending balance | $ 39,354 | $ 39,354 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |||
Valuation allowance | $ 16,895 | $ 16,876 | |
Foreign tax credits | $ 580 | $ 580 | |
Effective tax rate (as a percent) | 25.10% | 23.40% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jan. 01, 2014 | |
Restricted Stock Units (RSUs) | Non-Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested (in shares) | 802 | ||
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 | ||
Number of shares available for grant (in shares) | 403,182 | ||
Stock compensation expense | $ 1,460 | $ 1,635 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) | 3 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Outstanding options at beginning of period (in shares) | shares | 17,973 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | 0 |
Outstanding options at end of period (in shares) | shares | 17,973 |
Exercisable at end of period (in shares) | shares | 17,973 |
Weighted-Average Exercise Price/Share | |
Outstanding options at beginning of period (in dollars per share) | $ / shares | $ 37.55 |
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 | 37.55 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 37.55 |
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, 2023 $ / shares shares | |
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 | 324,824 |
Granted (in shares) | shares | 802 |
Vested (in shares) | shares | (802) |
Forfeited (in shares) | shares | (3,026) |
Total Non-vested Restricted Stock Units and Restricted Stock Awards at end of period (in shares) | shares | 321,798 |
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 | $ 57.98 |
Granted (in dollars per share) | $ / shares | 58.66 |
Vested (in dollars per share) | $ / shares | 58.66 |
Forfeited (in dollars per share) | $ / shares | 56.72 |
Total Non-vested Restricted Stock Units and Restricted Stock Awards at end of period (in dollars per share) | $ / shares | $ 57.99 |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Basic: | ||
Net income attributable to Malibu Boats, Inc. | $ 20,259 | $ 34,883 |
Shares used in computing basic net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,586,487 | 20,459,849 |
Basic net income per share (in dollars per share) | $ 0.98 | $ 1.70 |
Diluted: | ||
Net income attributable to Malibu Boats, Inc. | $ 20,259 | $ 34,883 |
Shares used in computing diluted net income per share: | ||
Basic weighted-average shares outstanding (in shares) | 20,586,487 | 20,459,849 |
Diluted weighted-average shares outstanding (in shares) | 20,684,230 | 20,632,727 |
Diluted net income per share (in dollars per share) | $ 0.98 | $ 1.69 |
Antidilutive securities (in shares) | 470,262 | 628,436 |
Restricted Stock Units (RSUs) | ||
Basic: | ||
Weighted average number of shares issued, basic (in shares) | 264,248 | 244,091 |
Shares used in computing diluted net income per share: | ||
Awards granted to employees (in shares) | 65,118 | 90,924 |
Stock Options | ||
Shares used in computing diluted net income per share: | ||
Awards granted to employees (in shares) | 5,409 | 14,767 |
Performance Awards | ||
Shares used in computing diluted net income per share: | ||
Awards granted to employees (in shares) | 27,216 | 67,187 |
Class A Common Stock | ||
Basic: | ||
Weighted average number of shares issued, basic (in shares) | 20,322,239 | 20,215,758 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | ||||
Jul. 25, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 28, 2023 USD ($) | Sep. 30, 2023 USD ($) unit | Sep. 30, 2022 USD ($) unit | |
Loss Contingencies [Line Items] | |||||
Floor financing, repurchase obligations | $ 385,448 | $ 400,747 | |||
Number of repurchase units | unit | 0 | 0 | |||
Financing receivables | 0 | $ 0 | |||
Purchases of property, plant and equipment | $ 25,500 | $ 33,300 | 39,527 | $ 12,362 | |
Escrow deposit | 7,800 | ||||
Capital expenditures incurred | 5,300 | ||||
Capital expenditures in accounts payable | $ 14,100 | ||||
Batchelder et al. v. Malibu Boats, LLC | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement, amount paid | 100,000 | 100,000 | |||
Litigation settlement, escrow amount | 60,000 | ||||
Insurance coverage | 26,000 | ||||
Proceeds from insurance coverage | $ 21,000 | ||||
Batchelder et al. v. Malibu Boats, LLC | Batchelder Plaintiffs | |||||
Loss Contingencies [Line Items] | |||||
Payments for legal settlements | $ 40,000 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 255,830 | $ 302,211 | |
Income before provision for income taxes | 27,748 | 47,128 | |
Total assets | 922,407 | $ 925,924 | |
Malibu | |||
Segment Reporting Information [Line Items] | |||
Net sales | 105,005 | 145,168 | |
Income before provision for income taxes | 11,937 | 27,916 | |
Total assets | 235,411 | 249,447 | |
Saltwater Fishing | |||
Segment Reporting Information [Line Items] | |||
Net sales | 92,622 | 92,233 | |
Income before provision for income taxes | 8,995 | 10,260 | |
Total assets | 437,102 | 432,806 | |
Cobalt | |||
Segment Reporting Information [Line Items] | |||
Net sales | 58,203 | 64,810 | |
Income before provision for income taxes | 6,816 | $ 8,952 | |
Total assets | $ 249,894 | $ 243,671 |
Subsequent Events (Details)
Subsequent Events (Details) | Oct. 26, 2023 USD ($) |
Subsequent Event | 2023 Repurchase Program | Class A Common Stock | |
Subsequent Event [Line Items] | |
Authorized repurchase amount | $ 100,000,000 |