Malibu Boats, Inc. (NASDAQ:MBUU) Q2 2019 Earnings Conference Call Transcript
Feb 06, 2019 • 08:30 am ET
Good morning, and welcome to Malibu Boats Conference Call to discuss Second Quarter Fiscal Year 2019 Results. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. Please be advised that reproduction of this call in whole or in part is not permitted without written authorization of Malibu Boat. And as a reminder, this call is being recorded.
On the call today from management are Mr. Jack Springer, Chief Executive Officer; Mr. Wayne Wilson, Chief Financial Officer; and Mr. Ritchie Anderson, Chief Operating Officer.
I will turn the call over to Mr. Wilson to get started. Please go ahead, sir.
Wayne R. Wilson
Thank you, and good morning everyone. On the call, Jack will provide commentary on the business, and I will discuss our second quarter financials and outlook for fiscal 2019. We will then open the call for questions.
A press release covering the Company's second quarter fiscal year 2019 results was issued today and a copy of that press release can be found in the Investor Relations section of the Company's website.
I also want to remind everyone that management's remarks on this call may contain certain forward-looking statements, including predictions, expectations, estimates, or other information that might be considered forward-looking and that actual results could differ materially from those projected on today's call. You should not place under reliance on these forward-looking statements, which speak only as of today, and the Company undertakes no obligation to update them for any new information or future events. Factors that might affect future results are discussed in our filings with the SEC, and we encourage you to review our SEC filings for a more detailed description of these risk factors.
Please also note that we will be referring to certain non-GAAP financial measures on today's call, such as adjusted EBITDA, adjusted EBITDA margin, adjusted fully distributed net income and adjusted fully distributed net income per share. Reconciliations of these non-GAAP financial measures to GAAP financial measures are included in our earnings release.
I'll now turn the call over to Jack Springer.
Jack D. Springer
Thank you, Wayne, and thank you for joining the call. Malibu had another outstanding quarter continuing our practice of exceptional performance. For the quarter, net sales increased 45% to $165.8 million, adjusted EBITDA increased $29.4 million or 42.5%, and adjusted fully distributed earnings increased 62.3% to $0.86 per share.
Our second quarter performance is continued evidence of successful operational execution at our Malibu and Cobalt businesses, which expanded gross margins meaningfully year-over-year. Our strategic well executed M&A strategy of acquiring great brands with meaningful upside is again being evidenced by the additional Pursuit Boats during the quarter. The Pursuit acquisition closed on October the 15th, 2018. The 2.5 months of their performance is included in the quarterly results. We have been pleased with the rapid progress we have made to assimilate Pursuit into our Company and the best is yet to come. As we have said, the key to