Group 1 - Marine Products Corporation will release its financial results for Q2 2025 on July 24, 2025, before market opens [1] - A conference call to discuss the financial and operating results will take place on July 24, 2025, at 8:00 a.m. Eastern Time [1] - Participants can join the conference call via toll-free number or international dial-in, with a conference ID provided [2] Group 2 - Marine Products Corporation is a leading manufacturer of high-quality fiberglass boats under the brands Chaparral and Robalo [3] - The company offers a diverse range of products, including sterndrive models, outboard offerings, and sport fishing models [3] - Marine Products Corporation aims to increase market share and generate superior financial performance through product innovation and a strong dealer network [3]

Core Insights - MasterCraft Boat Company is returning as an official sponsor of the 2025 American Century Championship (ACC) in Lake Tahoe, showcasing its premium towboat lineup and engaging in various high-impact activations [1][2] Sponsorship and Activations - The company has been a sponsor for six years and will feature flagship models XStar 23 and XStar 25 during the event [1] - Key activations include a $300,000 hole-in-one prize, a national sweepstakes in collaboration with Travis Mathew, Ogio, and Callaway, and the philanthropic initiative "Surf to Save Lives" supporting St. Jude Children's Research Hospital [1][6] Prize and Promotions - The hole-in-one challenge at Hole 12 offers a fully loaded 2024 MasterCraft X24, valued at over $300,000 [3] - The X24 features advanced technology and luxury amenities, emphasizing its performance and design [4] Philanthropic Initiatives - "Surf to Save Lives" will track minutes logged by celebrities and athletes riding behind MasterCraft boats, contributing to a $75,000 donation commitment [6] - Childhood cancer survivor and MasterCraft athlete Alexa Score will lead demonstrations and support fundraising efforts [7] Product Display and Partnerships - MasterCraft will display the XStar 23 and XStar 25 at Hole 17, alongside a Chevrolet Silverado, highlighting the partnership with General Motors [8][9] - The XStar models include innovative features such as the Z100 tower and MAAX Audio for enhanced performance [9] Post-Event Activities - Following the ACC, MasterCraft will host two on-water activations in Tahoe, allowing attendees to experience the latest boat lineup [10][13] Company Background - MasterCraft Boat Holdings, Inc. is a leading innovator in premium recreational powerboats, with a history of industry-leading innovation since its founding in 1968 [11][12]

Core Insights - The 2025 Just Ride Tour, hosted by Malibu Boats, is set to return, offering an immersive on-water experience across North America with over 45 stops [5][7][11] - The tour features the Malibu Wakesetter 24 MXZ, towed by the Chevrolet Silverado 3500HD High Country, showcasing the performance of Malibu Boats [5][7] - The event emphasizes community engagement, allowing families and riders to connect with Malibu pro athletes for hands-on instruction and product demonstrations [2][4][8] Company Overview - Malibu Boats, based in Loudon, Tennessee, is a leading designer and manufacturer of recreational powerboats, including performance sport and sterndrive boats [14] - The company is recognized as a market leader in the performance sport boat category through its Malibu and Axis brands [14] - Malibu Boats collaborates with GM Marine to develop the Monsoon engine lineup, which powers their boats and enhances performance [9][10] Product Highlights - The Monsoon engine lineup includes the GM 6.2-liter supercharged V8 LT4 engine, delivering 607 horsepower and 606 lb-ft of torque, specifically adapted for marine use [9] - The Just Ride Tour showcases the capabilities of Malibu's boats, particularly the Wakesetter 24 MXZ, which is designed to create exceptional wakes and waves [6][9] Marketing and Sponsorship - The tour is supported by various sponsors, enhancing the overall experience for participants [10] - Malibu Boats aims to bring the Malibu lifestyle to communities, emphasizing the connection between boating enthusiasts and the brand [11]

Group 1 - MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) is currently facing a weak sales environment due to persistent high interest rates and declining consumer confidence, which adds to market uncertainty [1] - Despite the challenging conditions, the company has made significant progress in improving dealer inventory health [1] Group 2 - The investment philosophy highlighted focuses on identifying mispriced securities by understanding the underlying drivers of a company's financials, often revealed through a DCF model valuation [1]

Core Points - MasterCraft Boat Company has launched its third year of the Surf to Save Lives campaign, aiming to raise funds for St. Jude Children's Research Hospital, with a pledge of $75,000 in 2025, bringing the total raised since 2023 to $225,000 [1][2] - The campaign allows boaters nationwide to log their on-water activities through the MasterCraft Connect app, with MasterCraft donating $1 for every minute logged, up to a maximum of $75,000 [3] - The initiative is open to all boaters, not just MasterCraft owners, encouraging widespread participation in support of St. Jude's mission [3] Company Overview - MasterCraft is a leading innovator, designer, manufacturer, and marketer of premium performance sport boats, with a history of industry-leading innovation since its founding in 1968 [8][9] - The company is headquartered in Vonore, TN, and operates under three brands: MasterCraft, Crest, and Balise [9][10] Philanthropic Efforts - Over the past two years, MasterCraft has donated a total of $150,000 to St. Jude, reaching the maximum annual donation of $75,000 each year [2] - The campaign is supported by Alexa Score, a childhood cancer survivor and professional wakeboarder, who serves as the official spokesperson [5][6] - MasterCraft employees also have the opportunity to contribute through a dedicated Employee Giving Program [6]

Group 1 - Malibu Boats reported revenue of $228.66 million for the quarter ended March 2025, representing a 12.4% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $0.72, up from $0.63 in the same quarter last year, with an EPS surprise of +7.46% compared to the consensus estimate of $0.67 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $223.38 million by +2.37% [1] Group 2 - Key metrics indicate that Malibu Boats' net sales per unit totaled $159,792, which was below the average estimate of $166,199.50 [4] - The unit volume by segment was 1,431, surpassing the two-analyst average estimate of 1,346 [4] - Revenue by product showed mixed results: Malibu generated $102.20 million, significantly above the estimate of $67.55 million; Cobalt generated $54.60 million, below the estimate of $71.70 million; and Saltwater Fishing generated $71.90 million, below the estimate of $84.15 million, reflecting a year-over-year decline of -11.5% [4] Group 3 - Over the past month, shares of Malibu Boats returned +5%, while the Zacks S&P 500 composite increased by +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Net sales increased by 12.4% to $228.7 million, with unit volume rising by 12.8% to 1,431 units, driven primarily by increased unit volumes in the Malibu segment and favorable model mix across all segments [16][19] - Gross profit rose by 13.4% to $45.7 million, with gross margin as a percentage of sales increasing by 20 basis points to 20% [18] - Q3 GAAP net income surged by 119.4% to $13.2 million, while adjusted EBITDA increased by 16% to $28.3 million, with adjusted EBITDA margin rising by 40 basis points to 12.4% [19][20] - Non-GAAP adjusted fully distributed net income per share increased by 14.3% to $0.72 [20] Business Line Data and Key Metrics Changes - The Malibu and Axis brands accounted for approximately 52% of unit sales, while saltwater fishing represented 22.8%, and Cobalt made up the remaining 25.2% [17] - Consolidated net sales per unit decreased by 0.3% to $159,792, primarily due to an unfavorable segment mix [18] Market Data and Key Metrics Changes - Dealer inventories entering the selling season are healthy and well below last year's levels, with expectations to bring dealer inventories down to the mid-teens percentage [9][27] - Retail environment remains challenging due to elevated interest rates and macroeconomic uncertainty, affecting consumer sentiment and discretionary spending [9] Company Strategy and Development Direction - The company emphasizes innovation as a cornerstone of its competitive advantage, with nearly 40% of Malibu boat show unit sales driven by two new premium models introduced this year [11] - The company is committed to maintaining dealer health and operational excellence while navigating current market conditions [13] - A balanced approach is maintained, focusing on long-term dealer and brand health over short-term volume [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing industry softness but highlights solid execution and growth in Q3, with expectations for retail markets to decline by double digits for the full fiscal year [6][22] - The company does not expect tariffs to have a material impact on its cost structure for the remainder of fiscal 2025 and is deploying various tariff mitigation strategies [23] Other Important Information - Capital expenditures are expected to be tightened to $25 million to $30 million, with a modest reduction in share repurchases planned [21] - The company finished Q3 with over $39 million in cash and over $300 million in untapped liquidity on its credit facility [21] Q&A Session Summary Question: What would the goal be by June with respect to dealer inventory? - The company expects to bring dealer inventories down to the mid-teens percentage, below last year's levels [27][28] Question: How is the behavior of Malibu customers changing? - Retail is seeing some repeat buyers returning, particularly cash repeat buyers, while new buyers remain a small percentage of overall retail [30][31] Question: What are the competitor promotional activities like? - The company has maintained consistent promotional levels and does not expect to elevate them significantly, focusing on new product performance [36][37] Question: What is the company's tariff risk? - The company sources about 18% to 20% of its cost of sales from outside the US, with no singular large sources identified [45][46] Question: How is demand trending in the quarter? - Demand has followed a seasonal ramp but has not met previous expectations for robust growth [51] Question: What changes have occurred in the saltwater segment? - There was some improvement in the saltwater segment, particularly in Florida, but it did not return to growth [60] Question: What has changed in the cost structure leading to adjusted EBITDA pressure? - Adjustments were made to production levels based on market expectations, impacting overall financial projections [68] Question: How will capital allocation be managed in the current environment? - The company remains committed to capital allocation priorities but may modify tactics based on market realities [69]

Financial Data and Key Metrics Changes - Net sales increased by 12.4% to $228.7 million, with unit volume rising by 12.8% to 1,431 units, driven primarily by increased unit volumes in the Malibu segment and favorable model mix across all segments [15][16] - Gross profit rose by 13.4% to $45.7 million, with gross margin as a percentage of sales increasing by 20 basis points to 20% [16] - Q3 GAAP net income surged by 119.4% to $13.2 million, while adjusted EBITDA increased by 16% to $28.3 million, with adjusted EBITDA margin rising by 40 basis points to 12.4% [17][18] - Non-GAAP adjusted fully distributed net income per share increased by 14.3% to $0.72 [18] Business Line Data and Key Metrics Changes - The Malibu and Axis brands accounted for approximately 52% of unit sales, while saltwater fishing represented 22.8%, and Cobalt made up the remaining 25.2% [15] - Consolidated net sales per unit decreased by 0.3% to $159,792, primarily due to an unfavorable segment mix [16] Market Data and Key Metrics Changes - Dealer inventories entering the selling season are healthy and well below last year's levels, with expectations to bring dealer inventories down to the mid-teens percentage [7][24] - Retail environment remains challenging due to elevated interest rates and macroeconomic uncertainty, affecting consumer sentiment and discretionary spending [7][20] Company Strategy and Development Direction - The company emphasizes innovation as a cornerstone of its long-term strategy, with nearly 40% of Malibu boat show unit sales driven by two premium models introduced this year [10] - The company is committed to maintaining dealer health and operational excellence while navigating current market conditions [12][19] - A balanced approach is maintained, focusing on dealer health, operational excellence, and continued innovation [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market conditions, highlighting a strong balance sheet and robust cash flow generation [13][19] - The company has recalibrated expectations for the upcoming selling season, now expecting retail markets to be down double digits for the full fiscal year [20] - Management does not expect tariffs to have a material impact on the cost structure for the remainder of fiscal 2025 [21] Other Important Information - Capital expenditures are expected to be tightened to $25 million to $30 million, with a modest reduction in share repurchases planned [19] - The company generated over $15 million in cash from operations during the quarter and finished Q3 with over $39 million in cash on hand [18][19] Q&A Session Summary Question: What would the goal be by June with respect to dealer inventory? - The company expects to bring dealer inventories down to the mid-teens percentage, below last year's levels [24][25] Question: Insights into customer behavior, particularly repeat buyers and first-time buyers? - Retail trends show repeat buyers, especially cash buyers, returning, while new buyers remain a small percentage of overall retail [28][29] Question: What are the observations regarding competitor promotional activity? - The company has maintained consistent promotional levels and has not had to elevate them significantly due to strong new product performance [33][34] Question: How is the saltwater segment performing? - There was an improvement in the saltwater segment, particularly in Florida, but it did not bounce back to growth [56][57] Question: What has changed in the cost structure leading to adjusted EBITDA pressure? - Adjustments were made to production expectations based on market conditions, impacting overall financial projections [63]

Financial Performance - Q3 net sales reached $228.7 million, a 12.4% increase year-over-year, driven by higher unit volumes in the Malibu segment[17] - Gross margin increased to 20.0%, up 20 basis points year-over-year, due to fixed cost leveraging and operational performance[17] - Adjusted EBITDA for Q3 was $28.323 million compared to $24.409 million in the same period last year[36] - Adjusted EBITDA margin was 12.4%[17] Fiscal Year 2025 Outlook - Consolidated net sales are projected to be down 3% to 5%[34] - Adjusted EBITDA margin is expected to be between 9% and 10%[34] Strategic Initiatives - The company generated $15 million in operating cash flow and repurchased $10 million of shares, demonstrating disciplined capital allocation[13] - The company is implementing vertical integration strategies at Cobalt, Pursuit, and Maverick Boat Group to drive margin expansion[23] - The company is actively mitigating tariff-related cost impacts in FY25 to balance cost structure and enhance supply chain agility[13]

Core Insights - Malibu Boats, Inc. reported financial results for the third quarter of fiscal 2025, showing a significant recovery from previous losses, with net income increasing to $13.2 million compared to a loss of $67.8 million in the same quarter of fiscal 2024 [3][15][30]. Financial Performance - Net sales for the third quarter increased by $25.2 million, or 12.4%, to $228.7 million compared to the same period last year [5][6]. - Gross profit rose by 13.4% to $45.7 million, with a gross profit margin of 20.0%, up from 19.8% [4][13]. - Adjusted EBITDA increased by 16.0% to $28.3 million, with an adjusted EBITDA margin of 12.4% [6][15]. - The company achieved a net income margin of 5.8%, a significant improvement from a net loss margin of (33.3)% in the prior year [15][35]. Segment Performance - The Malibu segment saw net sales increase by $42.0 million, or 69.8%, to $102.2 million, driven by higher unit volumes and favorable model mix [8][9]. - Conversely, the Saltwater Fishing segment experienced a decline in net sales by $9.4 million, or 11.5%, to $71.9 million, attributed to lower retail activity [9][10]. - The Cobalt segment also faced a decrease in net sales by $7.4 million, or 12.0%, to $54.6 million, primarily due to reduced wholesale shipments [10]. Guidance and Market Outlook - For the full fiscal year 2025, Malibu anticipates a net sales decline ranging from 3% to 5% year-over-year, with an adjusted EBITDA margin expected to range from 9% to 10% [16][18]. - The company is focused on aligning dealer inventory levels with retail demand amid ongoing market challenges [3][4]. Operational Insights - The company emphasized maintaining dealer health and managing production to align with retail demand, despite softer-than-expected retail trends [3][4]. - Malibu Boats is actively monitoring international trade policies and tariff rates, with no anticipated material impact on its cost structure for the remainder of the fiscal year [3][4].