Malibu Boats Q3 Earnings Exceed Expectations On Higher Unit Volumes, Plans Capacity Expansion

• Malibu Boats Inc MBUU reported third-quarter FY23 sales growth of 9% year-on-year, to $375.12 million, beating the analyst consensus of $343.18 million.
• The manufacturer of recreational powerboats recorded adjusted EPS of $2.59, down 0.8% Y/Y, beating the analyst consensus of $2.36.
• The revenue increase was driven primarily by increased unit volumes in the company's Saltwater Fishing and Cobalt segments, a favorable model mix across all segments, and inflation-driven Y/Y price increases. Unit volume increased by 2.9% to 2,637 units.
• The gross profit increased by 1.5% to $98.6 million, with the margin contracting 190 basis points from 28.2% to 26.3%.
• Adjusted EBITDA decreased 0.6% Y/Y to $79.3 million.
• The company held $35.16 million in cash as of quarter-end.
• "We have made great strides in normalizing our channel inventory, particularly within our Malibu and Cobalt segments, allowing our dealers to be poised to satisfy customer demand as we enter the prime selling season," CEO Jack Springer said.
• The company plans to expand its manufacturing capacity, grow its distribution network, and bring key capabilities in-house, from engines to tooling. 
• Outlook: For FY23, Malibu anticipates slightly more than 10% Y/Y net sales growth. Earlier, the company expected net sales growth percentage in the mid to high single digits Y/Y.
• Adjusted EBITDA margin is expected to be down slightly Y/Y.
• MBUU Price Action: Malibu Boats shares are trading higher by 3.24% at $58.43 Wednesday at publication.

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