Malibu Boats, Inc. (MBUU) has reported a 35.21 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $6.90 million, or $0.39 a share in the quarter, compared with $5.10 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.37 million, or $0.38 a share compared with $5.83 million or $0.30 a share, a year ago.
Revenue during the quarter grew 11.83 percent to $67.66 million from $60.51 million in the previous year period. Gross margin for the quarter expanded 8 basis points over the previous year period to 26.33 percent. Total expenses were 82.77 percent of quarterly revenues, down from 85.16 percent for the same period last year. This has led to an improvement of 239 basis points in operating margin to 17.23 percent.
Operating income for the quarter was $11.66 million, compared with $8.98 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.62 million compared with $11.17 million in the prior year period. At the same time, adjusted EBITDA margin improved 168 basis points in the quarter to 20.13 percent from 18.45 percent in the last year period.
Jack Springer, chief executive officer, stated, "Malibu had a very good quarter with all of our key metrics: units, revenue, gross profit, net income and Adjusted EBITDA performing above expectations and prior year. While we continue to face international demand challenges, our business in the United States continues to be strong and factors here indicate that strength is expected to continue for the foreseeable future. "Malibu's new product continues to be a critical driver of our success. Our new boats drive the market generating demand while our new features and innovations have made us the market leader. Together, these factors will allow us to further separate ourselves from our competition."
Working capital increases sharply
Malibu Boats, Inc. has recorded an increase in the working capital over the last year. It stood at $20.04 million as at Dec. 31, 2016, up 46.20 percent or $6.33 million from $13.70 million on Dec. 31, 2015. Current ratio was at 1.51 as on Dec. 31, 2016, up from 1.36 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 8 days for the quarter from 37 days for the last year period. Days sales outstanding went down to 13 days for the quarter compared with 16 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding went down to 27 days for the quarter from 28 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 $55.09 million as on Dec. 31, 2016, down 27.03 percent or $20.41 million from $75.50 million on Dec. 31, 2015. Total debt was 25.53 percent of total assets as on Dec. 31, 2016, compared with 37.77 percent on Dec. 31, 2015. Interest coverage ratio improved to 315.16 for the quarter from 24.80 for the same period last year.
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