Financial Data and Key Metrics Changes - Third quarter revenue decreased to $657 million, with same store sales down by 9% [7][13] - Adjusted net income for the quarter was $11 million, or $0.49 per diluted share, compared to $34.8 million, or $1.51 per diluted share last year [15] - Third quarter adjusted EBITDA was $35.5 million, down from $70.4 million last year [16] - Gross profit margin decreased from the prior year, but consolidated gross margin remained above 30% due to strong performance in higher margin businesses [7][14] Business Line Data and Key Metrics Changes - New boat margins are near historic lows, contributing to pressure on overall margins [7][13] - Higher margin businesses, including finance and insurance, superyacht services, storage, and marina operations, helped maintain gross margins [7][14] - Adjusted selling, general, and administrative expenses decreased by about $11 million year-to-date [8][14] Market Data and Key Metrics Changes - Consumer caution increased since April, leading to a noticeable decline in retail demand across the recreational industry [6][9] - Inventory levels increased year-over-year by approximately $26 million due to softer than expected sales [16] - Customer deposits decreased due to timing of large orders and a softer retail environment [16] Company Strategy and Development Direction - The company is focused on disciplined execution and investing in higher margin businesses to enhance profitability when the market stabilizes [10][19] - Continued investment in digital tools and customer experience enhancements is a priority for long-term success [6][10] - The company is optimistic about early signs of stabilization in the market, with manufacturers adjusting production to align inventory with retail demand [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook due to ongoing economic uncertainty but remains confident in the long-term strategy [19][58] - The company anticipates challenges in September similar to those faced in June, but is working hard to make same store sales positive [35][36] - There is a belief that pent-up demand exists, with consumers delaying purchases due to economic uncertainties [71][72] Other Important Information - The company has repurchased approximately 6% of its outstanding stock during the fiscal year [17] - A non-cash goodwill impairment charge of over $69 million was recorded, reflecting macroeconomic uncertainty [15] Q&A Session Summary Question: Why is there no improvement in consumer confidence despite a rebound in the stock market? - Management noted that consumer confidence dropped significantly after April due to various uncertainties, but there are signs of improvement in July [26][28] Question: How should same store sales be expected for the fourth quarter? - Management indicated that while they are working hard to make same store sales positive, it is prudent to expect a decline [35][36] Question: What factors need to change for the promotional environment to improve? - Management highlighted that excess inventories and ongoing uncertainties are driving the current promotional environment [47] Question: Are manufacturers making adjustments to drive inventories lower? - Management confirmed that manufacturers are working to align production with retail activity to avoid excess inventory [52] Question: How is the Florida market recovering post-hurricanes? - Management indicated that certain areas in Florida are still not fully recovered from the hurricanes, impacting sales [54] Question: Has the view on broader recovery in boat retail shifted? - Management stated that their long-term view remains unchanged despite the current tough period [58][59]

Financial Data and Key Metrics Changes - Second quarter sales decreased by 3% to $67.7 million, driven by a 13% decrease in the number of boats sold, partially offset by a 10% increase in price and mix [10] - Gross profit decreased to $12.9 million, but gross profit margin increased by 20 basis points to 19.1% [10] - SG&A expenses rose by 9% to $8.1 million, with SG&A as a percentage of sales increasing by 130 basis points to 12% [11] - Diluted EPS fell to $0.12 from $0.14 in the previous year [11] - EBITDA decreased to $5.6 million from $6.5 million last year [12] - Year-to-date operating cash flow was $90.2 million, with free cash flow at $8.6 million [12] - The company ended the quarter with $50 million in cash and no debt [12] Business Line Data and Key Metrics Changes - The company noted that retail sales declined industry-wide during the first four months of 2025, but managed to reduce field inventory by 11% year over year [6] - The introduction of new models last year was well received, and the company is excited about the 2026 model year rollout with several portfolio-wide changes [8][14] Market Data and Key Metrics Changes - The company observed that channel inventory levels are stabilizing, and there are positive signs of declining inventory levels [5] - Interest rates remain elevated, but potential rate cuts could stimulate spending among dealers and consumers [6][8] Company Strategy and Development Direction - The company is focused on positioning its brands for improved future demand and maximizing returns on investments [6] - There is an ongoing evaluation of acquisition opportunities and partnerships to enhance the company's portfolio [14] - The company aims to maintain strong relationships with dealers regarding channel inventory management [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the industry working through excess inventory and the potential for improved sales in the second half of 2025 [5] - The company is closely monitoring tariff changes and their impact on input costs, including engines and materials [7] - Management highlighted the importance of maintaining dialogue with government representatives regarding trade negotiations [8] Other Important Information - The company plans to demonstrate new models to dealers at the August year meeting [14] - The company has maintained a strong balance sheet, positioning itself as a buyer of choice for high-quality assets [14] Q&A Session Summary - There were no questions during the Q&A session [15]

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]

Financial Data and Key Metrics Changes - The company reported record revenue of over $631 million for March, reflecting strong execution and digital marketing efforts [7][17] - Same store sales grew by 11%, driven by aggressive pricing and promotional initiatives [8][19] - GAAP net income for the quarter was $3.3 million, or $0.14 per diluted share, an improvement from the previous year [19] - Adjusted EBITDA for the second quarter was $30.9 million, up 5% year-over-year [20] Business Line Data and Key Metrics Changes - The company experienced historically low margins on new and used boats due to aggressive pricing strategies [9][18] - Diversification into higher margin businesses, such as marinas and superyacht services, has helped mitigate cyclical volatility [9][12] - The gross margin for the quarter was 30%, remaining flat compared to the previous fiscal year [18] Market Data and Key Metrics Changes - The company noted a decline in overall unit volume year-over-year, particularly in the pontoon and value-oriented segments [17][18] - Premium categories performed better, indicating a shift in sales mix towards higher average price point products [17][18] Company Strategy and Development Direction - The company is focused on a customer-centric approach and leveraging technology for competitive advantage [6][7] - Strategic initiatives include selectively closing, consolidating, or expanding locations to align with growth opportunities [10] - The company is committed to building relationships in iconic destinations and enhancing its global superyacht and marina presence [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain economic climate and its impact on retail demand, particularly due to tariffs [6][16] - The company is tempering expectations for near-term growth and recognizing a slower recovery pace in the industry [25] - Despite challenges, management remains confident in the long-term strategic position within the premium segment [25] Other Important Information - The company has been recognized as a great place to work for two consecutive years, highlighting strong team tenure and culture [13] - The balance sheet remains strong, with cash and cash equivalents exceeding $203 million [20] Q&A Session Summary Question: Can you provide details on the disaggregation of the 11% same store sales growth? - Management indicated that the growth was driven by a shift towards premium product mix, despite unit declines in key segments [27][29] Question: What are the direct tariff costs impacting the company? - Management clarified that the guidance reduction is primarily due to macro consumer concerns rather than direct tariff costs [39][40] Question: How is the promotional environment affecting inventory levels? - Management noted that the industry is making progress in clearing aged inventory, with expectations for improved conditions in the summer [48][49] Question: How is consumer demand in the superyacht division? - Management reported strong bookings for the summer season in the Mediterranean, indicating resilience in the superyacht segment [82][84] Question: How does the company view its capital allocation strategy in the current environment? - Management emphasized a prudent approach to acquisitions while focusing on synergies between higher margin businesses [87][88]