Malibu Boats, Inc. reported significant declines in financial performance for the three months ended September 30, 2024, compared to the same period in 2023. Net sales fell to $171.6 million, a decrease of 32.9% from $255.8 million in the prior year. This decline was attributed to reduced unit sales across all segments, with total units sold dropping by 39.7% to 1,024 units. The Malibu segment experienced the most substantial decrease, with sales down 46.7% to $56.0 million, while the Saltwater Fishing and Cobalt segments saw decreases of 30.1% and 12.7%, respectively.
Gross profit also suffered, decreasing by 50.3% to $28.2 million, resulting in a gross margin decline from 22.2% to 16.4%. The company reported an operating loss of $5.6 million, a stark contrast to the operating income of $28.6 million recorded in the same quarter of 2023. The net loss for the quarter was $5.1 million, compared to a net income of $20.8 million in the prior year, marking a significant shift in profitability.
The company's total assets increased to $759.1 million as of September 30, 2024, up from $739.6 million at the end of June 2024. However, total stockholders' equity decreased to $522.4 million from $534.7 million during the same period. Current liabilities rose slightly to $142.8 million, with accounts payable increasing significantly to $31.6 million.
Malibu Boats faced challenges in the recreational powerboat industry, including high interest rates and fluctuating demand, which impacted dealer inventory levels. The company noted that while current dealer inventory has returned to historical seasonal levels, further reductions are anticipated due to high flooring costs and a soft retail environment.
In terms of strategic developments, Malibu Boats initiated a stock repurchase program, authorizing up to $50 million for Class A Common Stock and LLC Units, effective from November 8, 2024, to June 30, 2025. The company also reported a goodwill impairment loss of $49.2 million in the Saltwater Fishing segment during the quarter.
Despite these challenges, Malibu Boats aims to increase market share through new product development and improved distribution strategies. The company continues to navigate a highly competitive landscape while managing its financial and operational adjustments.
About MALIBU BOATS, INC.
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