Malibu Boats(MBUU) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For fiscal year 2022, net sales increased nearly 31% to a record $1.2 billion, with gross margin at 25.5% and adjusted EBITDA growing 30% to a record $247 million [9][39] - In Q4, net sales increased 27.6% to $353.2 million, with unit volume up 10.3% to 2,596 boats, and gross profit increased 29.5% to $89.6 million [34][36] Business Line Data and Key Metrics Changes - Malibu and Axis brands represented approximately 56.9% of unit sales, Cobalt 22.7%, and saltwater fishing 20.4% [34] - Consolidated net sales per unit increased 15.7% to approximately $136,000, driven by price increases and a favorable model mix [34] Market Data and Key Metrics Changes - Cobalt's outboard market share increased from 4.4% in June 2018 to 18.1% year to date in June 2022, reflecting a 600 basis point increase in the last year [19][20] - Retail demand remained strong, with orders extending well into the first half of fiscal year 2023 [12][14] Company Strategy and Development Direction - The company aims to ramp up production capabilities through a vertically integrated model, enhancing operational excellence and premium brand offerings [10][30] - New product launches for fiscal year 2023 include multiple new models across brands, focusing on innovation and customer experience [22][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply chain disruptions and inflation, emphasizing the resilience of the Malibu consumer [13][29] - Expectations for fiscal year 2023 include mid to high single-digit net sales growth, with a slight decrease in adjusted EBITDA margin anticipated [42][43] Other Important Information - The acquisition of Malibu Electronics is expected to enhance production capabilities and improve volume output [38][90] - Channel inventories are at historical lows, providing opportunities for growth as supply chains normalize [16][90] Q&A Session Summary Question: Thoughts on July SSI data and warranty registrations - Management noted that SSI data is problematic and internal warranty numbers indicate a different story [46][48] Question: Channel restock opportunity - Channel inventory remains low, particularly in saltwater segments, with expectations for improvement in the second half of the year [49][51] Question: Economic perspective and demand trends - Management observed strong demand for larger boats, with a resilient demographic less affected by economic conditions [58][59] Question: Valuations in the boat space - Current market conditions have led to higher valuations, but potential softening may bring more assets to market [61][62] Question: Production and retail demand expectations - Production remains high, with expectations for a down high single-digit percentage in retail demand for the fiscal year [67]