Company Overview - MasterCraft Boat Holdings, Inc. (MCFT) shares increased by 13.9% to close at $16.75, following a notable trading volume and a previous loss of 14.8% over the past four weeks [1] - The surge in share price is linked to President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, which has renewed investor optimism [1] Earnings Expectations - MasterCraft is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year decline of 51.4% [2] - Revenue projections stand at $75.37 million, down 21.3% compared to the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for MasterCraft has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] - In comparison, Malibu Boats (MBUU), a competitor in the same industry, saw a 12.6% increase in its stock price, closing at $28.35, but has returned -19.6% over the past month [3] Competitor Analysis - Malibu Boats has a revised consensus EPS estimate of $0.66, which is a 4.8% increase from the previous year, but has seen a change of -6.2% over the past month [4] - Malibu currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to MasterCraft [4]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Malibu Boats (MBUU) as a strong value stock based on its financial metrics and rankings [2][4][7] Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market using fundamental analysis and established metrics [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3] Group 2: Malibu Boats (MBUU) Financial Metrics - MBUU holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [4] - The stock has a P/E ratio of 12.13, significantly lower than the industry average of 30.77, suggesting it is undervalued [4] - MBUU's P/S ratio is 1.02, which is comparable to the industry average of 1.03, indicating solid sales performance [5] - The P/CF ratio for MBUU is 18.89, which is attractive compared to the industry's average of 28.41, reflecting a strong cash outlook [6] - Over the past 52 weeks, MBUU's P/CF has ranged from 8.21 to 22.01, with a median of 11.37, further supporting its undervaluation [6] Group 3: Investment Outlook - The combination of MBUU's financial metrics and strong earnings outlook positions it as a compelling value stock at the moment [7]

Group 1 - Malibu Boats, Inc. reported fiscal Q2 results for late-2024, exceeding expectations with a smaller decline than anticipated, leading to an initial increase in stock price [1] - The company is focused on small cap investments, emphasizing the importance of understanding financial drivers and utilizing DCF model valuation to identify mispriced securities [1] Group 2 - The investment philosophy of the company encompasses a broad approach, not confined to traditional value, dividend, or growth investing, but rather assessing all prospects to determine risk-to-reward [1]

Core Viewpoint - Malibu Boats, Inc. (MBUU) reported second-quarter fiscal 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, although both metrics declined year-over-year [1][3]. Financial Performance - Adjusted earnings per share (EPS) for the fiscal second quarter were 31 cents, surpassing the Zacks Consensus Estimate of 21 cents, down from 57 cents in the prior-year quarter [3]. - Quarterly revenues reached $200.3 million, exceeding the Zacks Consensus Estimate of $191 million by 5.1%, but reflecting a 5.1% decline year-over-year due to lower unit volumes in the Malibu and Saltwater Fishing segments [4]. - The Malibu segment's net sales decreased 3% year-over-year to $74.1 million, while the Saltwater Fishing segment saw a 15.2% decline to $70.2 million, primarily due to reduced wholesale shipments [5]. - Conversely, revenues from the Cobalt segment increased 7.8% year-over-year to $56 million, driven by higher unit sales and inflation-related price increases [6]. Operating Highlights - Selling and marketing expenses rose 6.7% year-over-year to $6 million, accounting for 3.0% of sales, an increase of 30 basis points [7]. - General and administrative expenses surged to $26.5 million from $15.4 million in the prior-year quarter, influenced by legal fees and compensation costs [8]. - Operating income fell to $3.2 million from $14.7 million year-over-year, while adjusted EBITDA decreased to $16.9 million from $22.9 million, with an adjusted EBITDA margin of 8.4% compared to 10.9% in the previous year [9]. Balance Sheet - As of December 31, 2024, cash totaled $35.1 million, up from $26.9 million on June 30, 2024, while inventory slightly decreased to $144.9 million from $145.6 million [10]. - Long-term debt stood at $23 million as of December 31, 2024 [11]. Fiscal Outlook - For fiscal 2025, the company anticipates net sales to be flat to down low single digits year-over-year, with an expected adjusted EBITDA margin of approximately 10% [12].

Core Viewpoint - Malibu Boats reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, but down from $0.57 per share a year ago, indicating a 47.62% earnings surprise [1] - The company generated revenues of $200.28 million for the quarter, surpassing the Zacks Consensus Estimate by 5.10%, although this represents a decline from $211.07 million year-over-year [2] Earnings Performance - Over the last four quarters, Malibu Boats has surpassed consensus EPS estimates three times, demonstrating a positive trend in earnings performance [2] - The recent earnings report reflects a significant surprise, with a previous expectation of a loss of $0.15 per share turning into an actual earnings of $0.08, resulting in a 153.33% surprise [1] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] - Current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $238.35 million, and for the current fiscal year, it is $2.35 on revenues of $845.66 million [7] Industry Context - The Leisure and Recreation Products industry, to which Malibu Boats belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions could be beneficial for investors [5]

Financial Performance - Net sales for the three months ended December 31, 2024, were $200.28 million, a decrease of 5.4% compared to $211.07 million for the same period in 2023[13]. - Gross profit for the six months ended December 31, 2024, was $65.63 million, down 30.4% from $94.27 million in the same period of 2023[13]. - Operating income for the three months ended December 31, 2024, was $3.18 million, a significant decline from $14.71 million in the same period of 2023[13]. - Net income attributable to Malibu Boats, Inc. for the three months ended December 31, 2024, was $2.36 million, compared to $9.88 million for the same period in 2023, representing a decrease of 76.1%[13]. - The company reported a comprehensive loss of $0.36 million for the three months ended December 31, 2024, compared to a comprehensive income of $11.57 million for the same period in 2023[13]. - The net loss for the six months ended December 31, 2024, was $2,726,000, compared to a net income of $30,914,000 for the same period in 2023[23]. - Adjusted EBITDA for the six months ended December 31, 2024, was $26.8 million, compared to $61.9 million for the same period in 2023[152]. - Basic net income per share for the three months ended December 31, 2024, was $0.12, a decrease from $0.49 in the same period of 2023[83]. - Diluted net income per share for the three months ended December 31, 2024, was also $0.12, compared to $0.49 for the same period in 2023[83]. Assets and Liabilities - Total current assets increased to $206.45 million as of December 31, 2024, compared to $202.13 million as of June 30, 2024[15]. - Total liabilities increased to $224.27 million as of December 31, 2024, from $204.91 million as of June 30, 2024[15]. - Cash balance as of December 31, 2024, was $35.12 million, an increase from $26.95 million as of June 30, 2024[15]. - The total stockholders' equity as of December 31, 2024, was $514,402,000[18]. - Outstanding debt as of December 31, 2024, was $23,000, with no term loan outstanding[49]. - The revolving credit facility has $325,272 available for borrowing as of December 31, 2024, with an interest rate of 7.75%[50][52]. Sales and Revenue Breakdown - Boat and trailer sales for the six months ended December 31, 2024, totaled $361.7 million, down from $456.9 million in the prior year, reflecting a decline of 20.8%[31]. - North America accounted for $190.6 million of consolidated net sales for the three months ended December 31, 2024, representing 95.2% of total sales[31]. - The company’s international sales for the three months ended December 31, 2024, were $9.7 million, accounting for 4.8% of total net sales[31]. - The Malibu segment reported net sales of $74.1 million for the three months ended December 31, 2024, down from $76.4 million in the same period of 2023[101]. - The Saltwater Fishing segment's net sales decreased to $70.2 million in Q4 2024 from $82.7 million in Q4 2023, representing a decline of 15.1%[101]. - The Cobalt segment achieved net sales of $56.0 million for the three months ended December 31, 2024, compared to $52.0 million in the same period of 2023, marking an increase of 7.4%[101]. Expenses and Costs - Non-cash compensation expense increased to $4,033,000 in 2024 from $1,323,000 in 2023[23]. - Depreciation expenses rose to $15,198,000 in 2024, up from $12,667,000 in 2023[23]. - General and administrative expenses increased by $11.1 million, or 71.9%, to $26.5 million for the three months ended December 31, 2024[133]. - General and administrative expenses increased by $17.6 million, or 48.8%, to $53.8 million for the six months ended December 31, 2024, primarily due to legal settlements and increased compensation expenses[145]. - Cost of sales for the three months ended December 31, 2024, decreased by $10.7 million, or 6.2%, to $162.9 million compared to the same period in 2023[131]. - Gross profit decreased by $28.6 million, or 30.4%, to $65.6 million for the six months ended December 31, 2024, with gross margin decreasing from 20.2% to 17.6%[144]. Legal and Compliance Matters - The company is involved in multiple legal proceedings, including a securities class action alleging violations of the Securities Exchange Act of 1934[95][96]. - The company entered into a Settlement Agreement to pay $3.5 million to the Tommy's Boats estate, contingent upon certain conditions being met[94]. - The company maintains liability insurance with coverage up to $26,000 related to the Batchelder Matters, having received approximately $21,000 in insurance proceeds as of December 31, 2024[93]. - The company continues to pursue claims against insurance carriers to recover the full $100,000 settlement amount related to the Batchelder Matters[93]. Future Outlook and Strategy - Malibu Boats, Inc. continues to face challenges including increased costs and reliance on third-party suppliers, impacting future performance expectations[10]. - The company anticipates a continued decline in the retail market for fiscal 2025 due to high dealer flooring costs and a soft retail environment[112]. - The company aims to increase market share through new product development and improved distribution despite facing aggressive competition in the industry[113]. - The company has over 400 dealer locations globally, with one dealer, OneWater Marine, representing more than 10% of consolidated net sales in fiscal year 2024[109]. Stock and Shareholder Information - The company repurchased and retired Class A Common Stock amounting to $20,199,000 during the six months ended December 31, 2024[23]. - As of December 31, 2024, Malibu Boats had $50.0 million available for share repurchases under the 2024 Repurchase Program[35]. - The company has authorized a stock repurchase program for up to $100.0 million of its Class A Common Stock and LLC Units from November 8, 2023, to November 8, 2024[171]. - The company repurchased 240,981 shares of Class A Common Stock for $10.1 million during the three months ended December 31, 2024[170].

MALIBU BOATS, INC." Malibu Boats, Inc. Second Quarter Fiscal 2025 Earnings Results January 30, 2025 USE & DEFINITION OF NON-GAAP FINANCIAL MEASURE This presentation includes the following financial measures defined as non-GHAP financial measures by the Securities and Exchange Commission: Adjusted EBITDA , Adjusted EBI Fully Distributed Net (Loss) Income and Adiusted Fully Distributed Net (Lass) Income ver Share. These measures have linitations as and tructures on and structured as an alt more meaningflul th ...

Financial Performance - Net sales for Q2 FY2025 decreased by 5.1% to $200.3 million compared to Q2 FY2024[4] - Unit volume for Q2 FY2025 decreased by 11.0% to 1,222 units compared to Q2 FY2024[4] - GAAP net income for Q2 FY2025 decreased by 76.1% to $2.4 million compared to $10.1 million in Q2 FY2024[4] - Adjusted EBITDA for Q2 FY2025 decreased by 26.3% to $16.9 million compared to $22.9 million in Q2 FY2024[4] - Operating income for Q2 FY2025 decreased to $3.2 million from $14.7 million in Q2 FY2024[13] - Net income for the three months ended December 31, 2024, was $2,421,000, compared to $10,144,000 for the same period in 2023, reflecting a decrease of 76.1%[32] - Adjusted EBITDA for the six months ended December 31, 2024, was $26,785,000, down 56.8% from $61,918,000 in the prior year[32] - The net income margin for the six months ended December 31, 2024, was (0.7)%, down from 6.6% in 2023[32] Sales and Revenue - Net sales attributable to the Saltwater Fishing segment decreased by 15.2% to $70.2 million in Q2 FY2025[7] - Net sales per unit for the Malibu segment increased by 12.0% to $141,141 per unit in Q2 FY2025[9] - Net sales for the three months ended December 31, 2024, were $200,280,000, a decrease from $211,074,000 in the same period of 2023, representing a decline of about 5%[28] - Net sales for the three months ended December 31, 2024, were $200,280,000, a decrease of 5.8% compared to $211,074,000 in 2023[32] Expenses and Costs - General and administrative expenses increased by 71.9% to $26.5 million in Q2 FY2025 compared to Q2 FY2024[12] - The company reported a litigation settlement expense of $3,500,000 for the six months ended December 31, 2024[32] - The company incurred professional fees of $2,035,000 for the three months ended December 31, 2024, compared to $290,000 in the same period of 2023[36] Guidance and Outlook - Full-year guidance for FY2025 anticipates net sales to be flat to down low single digits year-over-year[14] - The company anticipates ramping up production in the third fiscal quarter of 2025, indicating a positive outlook for future performance[24] Assets and Cash Position - Total assets as of December 31, 2024, were $738,676,000, slightly down from $739,624,000 as of June 30, 2024[29] - Cash increased to $35,118,000 as of December 31, 2024, from $26,945,000 as of June 30, 2024, reflecting an increase of approximately 30%[30] Risks and Legal Matters - The company faces risks including reliance on third-party suppliers and potential disruptions in operations, which could impact future performance[25] - The company is awaiting a decision from the Bankruptcy Court regarding claims related to Tommy's Boats, which may impact future financial obligations[33]

Core Viewpoint - Malibu Boats, Inc. reported a challenging second quarter for fiscal 2025, with decreased net sales and unit volumes, prompting adjustments in production levels and full-year guidance due to weaker retail market trends [3][17]. Financial Performance - Net sales for the three months ended December 31, 2024, decreased by $10.8 million, or 5.1%, to $200.3 million compared to the same period in 2023 [5][6]. - Unit volume decreased by 151 units, or 11.0%, to 1,222 units for the same period [5][6]. - Gross profit for the quarter was $37.4 million, a slight decrease of 0.2% from $37.5 million in the prior year [4][13]. - Net income decreased by 76.1% to $2.4 million, with a net income margin of 1.2%, down from 4.8% [4][16]. - Adjusted EBITDA fell by 26.3% to $16.9 million, with an adjusted EBITDA margin of 8.4%, down from 10.9% [4][16]. Segment Performance - Net sales in the Malibu segment decreased by $2.3 million, or 3.0%, to $74.1 million, with unit volumes down by 81 units [8]. - The Saltwater Fishing segment saw a more significant decline, with net sales down $12.6 million, or 15.2%, to $70.2 million, and unit volumes decreased by 88 units [9]. - Conversely, the Cobalt segment experienced growth, with net sales increasing by $4.1 million, or 7.8%, to $56.0 million, driven by higher unit volumes [10]. Cost and Expense Analysis - Cost of sales decreased by $10.7 million, or 6.2%, to $162.9 million, primarily due to lower unit volumes [12]. - Selling and marketing expenses increased by 6.7% to $6.0 million, while general and administrative expenses surged by 71.9% to $26.5 million, largely due to legal fees and incentive pay [14][15]. Guidance and Future Outlook - For the full fiscal year 2025, Malibu anticipates net sales to be flat to down low single digits year-over-year, with an adjusted EBITDA margin of approximately 10% [17].

The Zacks Leisure and Recreation Products industry faces challenges due to high inflation, uncertainty surrounding the Federal Reserve’s future rate cut plans and a decline in consumer confidence. However, a positive fitness product sales trend, driven by growing health and fitness awareness, bodes well for the industry. Industry participants who design, market, retail and distribute products for the outdoor and recreation market are witnessing solid demand. Stocks like Amer Sports, Inc. (AS) , Pool Corpora ...