Mastercraft IPO

[Jordan]

http://www.streetinsider.com/IPOs/MasterCraft+Files+for+$100M+IPO/10516920.html

 

Mastercraft going public

 

 

 

 

 

 

[klindy]

Interesting.

[Razorskier1]

Not surprised. Private equity investors have a timeline.

[oldjeep]

Wasn't aware the owning company was based out of MN

. You would think they would have a bigger presence here.

[eleeski]

Wait, is that what we have to do to purchase a Mastercraft? IPO, bond issues or some other creative financing can raise enough money to take a new boat home. Maybe.

 

Seriously, good luck to Mastercraft with this activity. We really do need strong boat companies in our sport.

 

Eric

[Jordan]

2014....

 

20.5% of the market

177 million in sales

Just under 20 million in profit

[ntx]

If I remember correctly when malibu went public about a year ago, it was offered at 17.00. It has gotten has high as 24. Currently In the 19 to 21 range. It will be interesting to see what mastercraft starts at.

[MattP]

@Jordan do you have those numbers for Malibu?

[Razorskier1]

@MattP. I can get the details. MBUU market share is in the 30's. Revenue this year forecast at $227mm. They report earnings tomorrow morning before the market open.

[Jordan]

For Malibu...2014

 

Market share a few points higher than MC (190m versus 177m in revenue)

$190 million in sales

Lost $4.6 million

[Razorskier1]

MBUU made $4.7mm last year and was free cash flow positive. For June 15 fiscal year they are forecast to make over $32mm. Operating profit margin around 14%. They have really improved manufacturing efficiency and have been selling high priced wake boats. The average selling price factory to dealer is $67,000. Boat volumes are also showing a nice recovery still from the recession. The best ever years for "performance sport boats" as a category was about 13,000 units. Currently about half that level.

[MattP]

@Jordan @Razorskier1 Lost or made ~4.6M?

[Chef23]

@MattP you can see most of the numbers the way Malibu presents them to investors/analysts here:

 

http://files.shareholder.com/downloads/AMDA-2F4INY/138404823x0x813076/cbe47d38-1cc2-4e8a-9bcc-046e2d04620a/Investor_Presentation_for_Q2_2015_-_Winter_-_Orlando_-_for_print.pdf

 

It is from a March 2015 analyst presentation.

 

If you read the presentation you can see they are heavily focused on the wake and surf markets. The only mention of ski boats is the LXR as a new model.

[Jordan]

@MattP according to their SEC filings they lost $4.676 million in fiscal 2014...

 

http://investors.malibuboats.com/secfiling.cfm?filingID=1590976-14-43&CIK=1590976#MBUU-6302014X10K_HTM_S9B5185DDBD22507EA66B727DE7982841

 

[Razorskier1]

Made. They are very profitable

[Jordan]

Fiscal Year Ended

June 30, 2014

 

Net Sales ...................................................................................$ 190,935

Gross Profit........................................................................................50,794

Operating (loss) income..........................................................................(455)

Net (loss) income ................................................................................(1,188)

Net (loss) income attributable to non-controlling interest.....................3,488

Net loss attributable to Malibu Boats, Inc..........................................$ (4,676)

Basic loss per share of Class A Common Stock........................................$(0.42)

Diluted loss per share of Class A Common Stock.....................................$(0.42)

 

 

 

 

Sorry for the formatting issues

 

Information straight from there 10K.....filed with the SEC

 

 

 

 

 

 

 

 

 

 

 

 

 

[ForrestGump]

@Jordan The 4.7M Fiscal '14 loss included a one time charge of $20M from the lawsuit they lost. So operationally they made $15M and some change.

[RAWSki]

Not every company should go public, IMO the ski boat business if one of them. Investors want returns year after year, a private company can have 'ups and downs' but still make money for it's ownership and provide jobs.

[Razorskier1]

10K is required reporting. Often has little to do with actual cash flow, and more to do with regulatory requirements. Important reading, but only part of the story. MBUU is profitable and generating free cash flow. Their capex requirements for both maintenance and expansion are very modest. They recently took on some debt to retire some stock (mostly done to reduce the private equity ownership, now down to 23%) and because they can afford some debt given strong free cash flow. For the June 16 and June 17 fiscal years they should generate more than $30mm in free cash flow per year while growing adjusted earnings per share at a double digit clip. I spoke with management less than two months ago and continue to be impressed with their strategic focus and efficiency of operations.

 

@RAWSki -- absolutely agree. The pressures public companies to both consistently beat investor expectations on a quarterly basis AND manage for the long-term are sometimes at odds. As a private company, you have the luxury of investing for the future without worrying about how shareholders will deal with it.

[Jordan]

Never commented on the company's Cash Flow.....

 

Always read the 10k, to calculate FCF also....a lot more truth gets published in required filings than at investor presentations.

[auskier]

would that have included the purchase of the australian factory as well?

[MattP]

http://www.knoxnews.com/business/mastercraft-closes-successful-ipo_73953595