Malibu Boats Inc (MBUU) has reported a 6.24 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3.78 million, or $0.21 a share in the quarter, compared with $3.56 million, or $0.20 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.94 million, or $0.26 a share compared with $4.75 million or $0.25 a share, a year ago.
Revenue during the quarter grew 8.35 percent to $62.02 million from $57.24 million in the previous year period. Gross margin for the quarter contracted 19 basis points over the previous year period to 25.51 percent. Total expenses were 89.06 percent of quarterly revenues, up from 87.29 percent for the same period last year. That has resulted in a contraction of 177 basis points in operating margin to 10.94 percent.
Operating income for the quarter was $6.79 million, compared with $7.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.86 million compared with $9.44 million in the prior year period. At the same time, adjusted EBITDA margin contracted 61 basis points in the quarter to 15.89 percent from 16.50 percent in the last year period.
Jack Springer, chief executive officer stated, "Malibu has again had the best first quarter in units, revenue, net income and Adjusted EBITDA in our history. We continue to meet expectations despite various international and economic uncertainties. While we continue to monitor such factors, we believe we have anticipated and positioned Malibu to be successful despite these influences. The new product we deliver each year has been a critical driver of our success. We are fortunate that the new boats we have brought to market have been well accepted and have propelled our market share to the highest level in our history. Malibu also continues to be the company of innovation and advanced technology. Our new products and features continue to be compelling and drive the advantages of owning a Malibu boat."
Working capital increases sharply
Malibu Boats Inc has recorded an increase in the working capital over the last year. It stood at $14.58 million as at Sep. 30, 2016, up 50.50 percent or $4.89 million from $9.69 million on Sep. 30, 2015. Current ratio was at 1.33 as on Sep. 30, 2016, up from 1.25 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 16 days for the quarter from 39 days for the last year period. Days sales outstanding went up to 19 days for the quarter compared with 17 days for the same period last year.
Days inventory outstanding has decreased to 24 days for the quarter compared with 48 days for the previous year period. At the same time, days payable outstanding went up to 27 days for the quarter from 26 for the same period last year.
Debt comes down significantly
Malibu Boats Inc has recorded a decline in total debt over the last one year. It stood at $56.15 million as on Sep. 30, 2016, down 27.08 percent or $20.85 million from $77 million on Sep. 30, 2015. Total debt was 26.31 percent of total assets as on Sep. 30, 2016, compared with 39.43 percent on Sep. 30, 2015. Interest coverage ratio improved to 15.78 for the quarter from 5.53 for the same period last year.
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