10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-36290

MALIBU BOATS, INC.

(Exact Name of Registrant as specified in its charter)

Delaware	5075 Kimberly Way, Loudon, Tennessee 37774	46-4024640
(State or other jurisdiction of incorporation or organization)	(Address of principal executive offices, including zip code)	(I.R.S. Employer Identification No.)
	(865) 458-5478
	(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.01	MBUU	Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large Accelerated Filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes	☐	No	☑

Class A Common Stock, par value $0.01, outstanding as of January 25, 2024:	20,430,767	shares
Class B Common Stock, par value $0.01, outstanding as of January 25, 2024:	12	shares

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TABLE OF CONTENTS

 

		Page
PART I	FINANCIAL INFORMATION	1
Item 1.	Financial Statements	1
	Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)	1
	Condensed Consolidated Balance Sheets (Unaudited)	2
	Condensed Consolidated Statements of Stockholders' Equity (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows (Unaudited)	5
	Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	38
PART II	OTHER INFORMATION	39
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	39
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	40
SIGNATURES		41

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical facts contained in this Form 10-Q are forward-looking statements, including statements regarding demand for our products and expected industry trends, our business strategy and plans, our prospective products or products under development, our vertical integration initiatives, our acquisition strategy and management’s objectives for future operations. In particular, many of the statements under the heading “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” constitute forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” the negative of these terms, or by other similar expressions that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions, involving known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Such factors include, but are not limited to: general industry, economic and business conditions; our ability to execute our manufacturing strategy; our large fixed cost base; increases in the cost of, or unavailability of, raw materials, component parts and transportation costs; disruptions in our suppliers’ operations; our reliance on third-party suppliers for raw materials and components and any interruption of our informal supply arrangements; our reliance on certain suppliers for our engines and outboard motors; our ability to meet our manufacturing workforce needs; exposure to workers' compensation claims and other workplace liabilities; our ability to grow our business through acquisitions and integrate such acquisitions to fully realize their expected benefits; our growth strategy which may require us to secure significant additional capital; our ability to protect our intellectual property; disruptions to our network and information systems; our success at developing and implementing a new enterprise resource planning system; risks inherent in operating in foreign jurisdictions; a natural disaster, global pandemic or other disruption at our manufacturing facilities; increases in income tax rates or changes in income tax laws; our dependence on key personnel; our ability to enhance existing products and market new or enhanced products; the continued strength of our brands; the seasonality of our business; intense competition within our industry; increased consumer preference for used boats or the supply of new boats by competitors in excess of demand; competition with other activities for consumers’ scarce leisure time; changes in currency exchange rates; inflation and increases in interest rates; an increase in energy and fuel costs; our reliance on our network of independent dealers and increasing competition for dealers; the financial health of our dealers and their continued access to financing; our obligation to repurchase inventory of certain dealers; our exposure to claims for product liability and warranty claims; changes to U.S. trade policy, tariffs and import/export regulations; any failure to comply with laws and regulations including environmental, workplace safety and other regulatory requirements; our holding company structure; covenants in our credit agreement governing our revolving credit facility which may limit our operating flexibility; our variable rate indebtedness which subjects us to interest rate risk; our obligation to make certain payments under a tax receivables agreement; and any failure to maintain effective internal control over financial reporting or disclosure controls or procedures. We discuss many of these factors, risks and uncertainties in greater detail under the heading “Item 1A. Risk Factors” in our Form 10-K for the year ended June 30, 2023, filed with the Securities and Exchange Commission on August 29, 2023, as such disclosures may be amended, supplemented or superseded from time to time by other reports we file with the Securities and Exchange Commission, including subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q.

You should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from those suggested by the forward-looking statements for various reasons. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of this Form 10-Q to conform these statements to actual results or to changes in our expectations.

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Part I - Financial Information

Item 1. Financial Statements

MALIBU BOATS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

(In thousands, except share and per share data)

	Three Months Ended  December 31,				Six Months Ended  December 31,
	2023		2022		2023		2022
Net sales	$	211,074	$	338,732	$	466,904	$	640,943
Cost of sales	173,599		263,078		372,635		490,684
Gross profit	37,475		75,654		94,269		150,259
Operating expenses:
Selling and marketing	5,610		6,198		11,362		11,384
General and administrative	15,440		19,057		36,145		38,277
Amortization	1,713		1,715		3,428		3,431
Operating income	14,712		48,684		43,334		97,167
Other expense, net:
Other (income) expense, net	(9)		193		(19)		263
Interest expense	671		910		1,555		2,195
Other expense, net	662		1,103		1,536		2,458
Income before provision for income taxes	14,050		47,581		41,798		94,709
Provision for income taxes	3,906		11,185		10,884		22,208
Net income	10,144		36,396		30,914		72,501
Net income attributable to non-controlling interest	263		1,234		774		2,456
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045
Comprehensive income:
Net income	$	10,144	$	36,396	$	30,914	$	72,501
Other comprehensive income (loss):
Change in cumulative translation adjustment	1,427		1,227		676		(209)
Other comprehensive income (loss)	1,427		1,227		676		(209)
Comprehensive income	11,571		37,623		31,590		72,292
Less: comprehensive income attributable to non-controlling interest	300		1,276		793		2,449
Comprehensive income attributable to Malibu Boats, Inc.	$	11,271	$	36,347	$	30,797	$	69,843
Weighted-average shares outstanding used in computing net income per share:
Basic	20,375,750		20,404,583		20,481,119		20,432,216
Diluted	20,450,204		20,516,025		20,567,218		20,559,752
Net income available to Class A Common Stock per share:
Basic	$	0.49	$	1.73	$	1.47	$	3.43
Diluted	$	0.49	$	1.72	$	1.47	$	3.41

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements (Unaudited).

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MALIBU BOATS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except share and per share data)

	December 31, 2023		June 30, 2023
Assets
Current assets
Cash	$	55,722	$	78,937
Trade receivables, net	27,493		68,381
Inventories, net	157,766		171,189
Prepaid expenses and other current assets	11,968		7,827
Total current assets	252,949		326,334
Property, plant and equipment, net	245,131		204,792
Goodwill	100,733		100,577
Other intangible assets, net	218,049		221,458
Deferred tax assets	54,045		62,573
Other assets	9,089		10,190
Total assets	$	879,996	$	925,924
Liabilities
Current liabilities
Accounts payable	$	27,967	$	40,402
Accrued expenses	106,716		187,078
Income taxes and tax distribution payable	74		847
Payable pursuant to tax receivable agreement, current portion	4,111		4,111
Total current liabilities	138,868		232,438
Deferred tax liabilities	29,123		28,453
Other liabilities	8,989		9,926
Payable pursuant to tax receivable agreement, less current portion	39,354		39,354
Long-term debt	35,000		—
Total liabilities	251,334		310,171
Commitments and contingencies (See Note 15)
Stockholders' Equity
Class A Common Stock, par value $0.01 per share, 100,000,000 shares authorized; 20,298,626 shares issued and outstanding as of December 31, 2023; 20,603,822 issued and outstanding as of June 30, 2023	201		204
Class B Common Stock, par value $0.01 per share, 25,000,000 shares authorized; 12 shares issued and outstanding as of December 31, 2023 and June 30, 2023	—		—
Preferred Stock, par value $0.01 per share; 25,000,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and June 30, 2023	—		—
Additional paid in capital	67,745		86,321
Accumulated other comprehensive loss	(3,664)		(4,340)
Accumulated earnings	555,837		525,697
Total stockholders' equity attributable to Malibu Boats, Inc.	620,119		607,882
Non-controlling interest	8,543		7,871
Total stockholders’ equity	628,662		615,753
Total liabilities and stockholders' equity	$	879,996	$	925,924

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements (Unaudited).

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MALIBU BOATS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders' Equity (Unaudited)

(In thousands, except number of Class B shares)

 

	Class A Common Stock			Class B Common Stock			Additional Paid In Capital		Accumulated Other Comprehensive Loss		Accumulated Earnings		Non-controlling Interest in LLC		Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Balance at June 30, 2023	20,603	$	204	12	$	—	$	86,321	$	(4,340)	$	525,697	$	7,871	$	615,753
Net income	—	—		—	—		—		—		20,259		511		20,770
Stock based compensation, net of withholding taxes on vested equity awards	—	—		—	—		1,443		—		—		—		1,443
Issuances of equity for services	—	—		—	—		47		—		—		—		47
Repurchase and retirement of common stock	(199)	(2)		—	—		(9,617)		—		—		—		(9,619)
Distributions to LLC Unit holders	—	—		—	—		—		—		—		(114)		(114)
Foreign currency translation adjustment	—	—		—	—		—		(751)		—		(17)		(768)
Balance at September 30, 2023	20,404	$	202	12	$	—	$	78,194	$	(5,091)	$	545,956	$	8,251	$	627,512
Net income	—	—		—	—		—		—		9,881		263		10,144
Stock based compensation, net of withholding taxes on vested equity awards	109	1		—	—		(1,364)		—		—		—		(1,363)
Issuances of equity for services	12	—		—	—		1,037		—		—		—		1,037
Repurchase and retirement of common stock	(226)	(2)		—	—		(10,122)		—		—		—		(10,124)
Foreign currency translation adjustment	—	—		—	—		—		1,427		—		29		1,456
Balance at December 31, 2023	20,299	$	201	12	$	—	$	67,745	$	(3,664)	$	555,837	$	8,543	$	628,662

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	Class A Common Stock			Class B Common Stock			Additional Paid In Capital		Accumulated Other Comprehensive Loss		Accumulated Earnings		Non-controlling Interest in LLC		Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Balance at June 30, 2022	20,501	$	203	10	$	—	$	85,294	$	(3,507)	$	421,184	$	10,394	$	513,568
Net income	—	—		—	—		—		—		34,883		1,222		36,105
Stock based compensation, net of withholding taxes on vested equity awards	(12)	—		—	—		743		—		—		—		743
Issuances of equity for services	—	—		—	—		67		—		—		—		67
Repurchase and retirement of common stock	(144)	(1)		—	—		(7,867)		—		—		—		(7,868)
Distributions to LLC Unit holders	—	—		—	—		—		—		—		(696)		(696)
Foreign currency translation adjustment	—	—		—	—		—		(1,436)		—		(43)		(1,479)
Balance at September 30, 2022	20,345	$	202	10	$	—	$	78,237	$	(4,943)	$	456,067	$	10,877	$	540,440
Net income	—	—		—	—		—		—		35,162		1,234		36,396
Stock based compensation, net of withholding taxes on vested equity awards	128	1		—	—		22		—		—		—		23
Issuances of equity for services	2	—		—	—		948		—		—		—		948
Distributions to LLC Unit holders	—	—		—	—		—		—		—		(688)		(688)
Foreign currency translation adjustment	—	—		—	—		—		1,227		—		36		1,263
Balance at December 31, 2022	20,475	$	203	10	$	—	$	79,207	$	(3,716)	$	491,229	$	11,459	$	578,382

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements (Unaudited).

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MALIBU BOATS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

	Six Months Ended December 31,
	2023		2022
Operating activities:
Net income	$	30,914	$	72,501
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash compensation expense	1,323		3,651
Non-cash compensation to directors	1,419		579
Depreciation	12,667		10,684
Amortization	3,428		3,431
Deferred income taxes	9,205		2,556
Other items, net	1,100		792
Change in operating assets and liabilities:
Trade receivables	40,922		(3,846)
Inventories	13,776		(28,569)
Prepaid expenses and other assets	(4,483)		(4,287)
Accounts payable	(13,315)		(4,151)
Income taxes payable	24		501
Accrued expenses	(80,308)		(1,924)
Other liabilities	(963)		(1,106)
Net cash provided by operating activities	15,709		50,812
Investing activities:
Purchases of property, plant and equipment	(52,101)		(22,339)
Proceeds from sale or disposal of property, plant and equipment	14		—
Net cash used in investing activities	(52,087)		(22,339)
Financing activities:
Proceeds from revolving credit facility	75,000		141,700
Principal payments on long-term borrowings	—		(23,125)
Payments on revolving credit facility	(40,000)		(167,000)
Payment of deferred financing costs	—		(1,362)
Cash paid for withholding taxes on vested restricted stock	(1,217)		(2,866)
Distributions to LLC Unit holders	(890)		(1,741)
Repurchase and retirement of common stock	(19,743)		(7,868)
Net cash provided by (used in) financing activities	13,150		(62,262)
Effect of exchange rate changes on cash	13		(107)
Changes in cash	(23,215)		(33,896)
Cash—Beginning of period	78,937		83,744
Cash—End of period	$	55,722	$	49,848
Supplemental cash flow information:
Cash paid for interest	$	1,637	$	1,219
Cash paid for income taxes	1,955		20,168

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements (Unaudited).

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MALIBU BOATS, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

(Dollars in thousands, except per unit and share and per share data)

1. Organization, Basis of Presentation, and Summary of Significant Accounting Policies

Organization

Malibu Boats, Inc. (“MBI” and, together with its subsidiaries, the “Company” or "Malibu"), a Delaware corporation formed on November 1, 2013, is the sole managing member of Malibu Boats Holdings, LLC, a Delaware limited liability company (the "LLC"). The Company operates and controls all of the LLC's business and affairs and, therefore, pursuant to Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) Topic 810, Consolidation, consolidates the financial results of the LLC and its subsidiaries, and records a non-controlling interest for the economic interest in the Company held by the non-controlling holders of units in the LLC ("LLC Units"). The LLC was formed in 2006. The LLC, through its wholly owned subsidiary, Malibu Boats, LLC, (“Boats LLC”), is engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, recreational powerboats that are sold through a world-wide network of independent dealers. The Company sells its boats under eight brands -- Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes and Cobalt brands. The Company reports its results of operations under three reportable segments -- Malibu, Saltwater Fishing and Cobalt.

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim condensed financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with GAAP for complete financial statements. Such statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Malibu and subsidiaries for the year ended June 30, 2023, included in the Company's Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Units and shares are presented as whole numbers while all dollar amounts are presented in thousands, unless otherwise noted.

Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements include the operations and accounts of the Company and all subsidiaries thereof. All intercompany balances and transactions have been eliminated upon consolidation.

Recent Accounting Pronouncements

In November, 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures" which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant expenses. The updated standard is effective for annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.

In December, 2023, the FASB issued ASU No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires two primary enhancements of 1) disaggregated information on a reporting entity’s effective tax rate reconciliation, and 2) information on income taxes paid. For public business entities, the new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.

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2. Revenue Recognition

The following tables disaggregate the Company's revenue by major product type and geography:

	Three Months Ended December 31, 2023								Six Months Ended December 31, 2023
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Consolidated
Revenue by product:
Boat and trailer sales	$	74,272	$	82,480	$	51,391	$	208,143	$	173,711	$	174,732	$	108,495	$	456,938
Part and other sales	2,117		254		560		2,931		7,683		624		1,659		9,966
Net Sales	$	76,389	$	82,734	$	51,951	$	211,074	$	181,394	$	175,356	$	110,154	$	466,904
Revenue by geography:
North America	$	69,123	$	78,329	$	51,636	$	199,088	$	166,178	$	170,195	$	109,092	$	445,465
International	7,266		4,405		315		11,986		15,216		5,161		1,062		21,439
Net Sales	$	76,389	$	82,734	$	51,951	$	211,074	$	181,394	$	175,356	$	110,154	$	466,904

	Three Months Ended December 31, 2022								Six Months Ended December 31, 2022
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Consolidated
Revenue by product:
Boat and trailer sales	$	155,011	$	105,363	$	73,830	$	334,204	$	295,174	$	197,256	$	137,460	$	629,890
Part and other sales	3,155		222		1,151		4,528		8,160		562		2,331		11,053
Net Sales	$	158,166	$	105,585	$	74,981	$	338,732	$	303,334	$	197,818	$	139,791	$	640,943
Revenue by geography:
North America	$	140,924	$	104,154	$	71,986	$	317,064	$	271,574	$	193,095	$	134,267	$	598,936
International	17,242		1,431		2,995		21,668		31,760		4,723		5,524		42,007
Net Sales	$	158,166	$	105,585	$	74,981	$	338,732	$	303,334	$	197,818	$	139,791	$	640,943

Boat and Trailer Sales

Consists of sales of boats and trailers to the Company's dealer network, net of sales returns, discounts, rebates and free flooring incentives. Boat and trailer sales also includes optional boat features. Sales returns consist of boats returned by dealers under the Company's warranty program. Rebates, free flooring and discounts are incentives that the Company provides to its dealers based on sales of eligible products.

Part and Other Sales

Consists primarily of parts and accessories sales, royalty income and clothing sales. Parts and accessories sales include replacement and aftermarket boat parts and accessories sold to the Company's dealer network. Royalty income is earned from license agreements with various boat manufacturers, including Nautique, Chaparral, Mastercraft, and Tige related to the use of the Company's intellectual property.

3. Non-controlling Interest

The non-controlling interest on the unaudited interim condensed consolidated statements of operations and comprehensive income represents the portion of earnings attributable to the economic interest in the Company's subsidiary, the LLC, held by the non-controlling LLC Unit holders. Non-controlling interest on the unaudited interim condensed consolidated balance sheets represents the portion of net assets of the Company attributable to the non-controlling LLC Unit holders, based on the portion

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of the LLC Units owned by such Unit holders. The ownership of the LLC is summarized as follows:

	As of December 31, 2023			As of June 30, 2023
	Units	Ownership %		Units	Ownership %
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC	455,919	2.2	%	455,919	2.2	%
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC	20,298,626	97.8	%	20,603,822	97.8	%
	20,754,545	100.0	%	21,059,741	100.0	%

Issuance of Additional LLC Units

Under the first amended and restated limited liability company agreement of the LLC, as amended (the "LLC Agreement"), the Company is required to cause the LLC to issue additional LLC Units to the Company when the Company issues additional shares of Class A Common Stock. Other than in connection with the issuance of Class A Common Stock in connection with an equity incentive program, the Company must contribute to the LLC net proceeds and property, if any, received by the Company with respect to the issuance of such additional shares of Class A Common Stock. The Company must cause the LLC to issue a number of LLC Units equal to the number of shares of Class A Common Stock issued such that, at all times, the number of LLC Units held by the Company equals the number of outstanding shares of Class A Common Stock. During the six months ended December 31, 2023, the Company caused the LLC to issue a total of 158,228 LLC Units to the Company in connection with (i) the Company's issuance of Class A Common Stock to non-employee directors for their services, (ii) the issuance of Class A Common Stock for the vesting of awards granted under the Malibu Boats, Inc. Long-Term Incentive Plan (the "Incentive Plan") and (iii) the issuance of restricted Class A Common Stock granted under the Incentive Plan. During the six months ended December 31, 2023, 17,804 LLC Units were canceled in connection with the vesting of share-based equity awards to satisfy employee tax withholding requirements, 20,080 LLC Units were canceled in connection with the vesting of stock awards with a market condition that was deemed to not be achieved and the retirement of 38,017 treasury shares in accordance with the LLC Agreement. Also during the six months ended December 31, 2023, 425,407 LLC Units were redeemed and canceled by the LLC in connection with the purchase and retirement of 425,407 treasury shares under the Company's stock repurchase program that expired on November 8, 2023, and the Company’s new stock repurchase program that was authorized for the period from November 8, 2023 to November 8, 2024.

Distributions and Other Payments to Non-controlling Unit Holders

Distributions for Taxes

As a limited liability company (treated as a partnership for income tax purposes), the LLC does not incur significant federal, state or local income taxes, as these taxes are primarily the obligations of its members. As authorized by the LLC Agreement, the LLC is required to distribute cash, to the extent that the LLC has cash available, on a pro rata basis, to its members to the extent necessary to cover the members’ tax liabilities, if any, with respect to their share of LLC earnings. The LLC makes such tax distributions to its members based on an estimated tax rate and projections of taxable income. If the actual taxable income of the LLC multiplied by the estimated tax rate exceeds the tax distributions made in a calendar year, the LLC may make true-up distributions to its members, if cash or borrowings are available for such purposes. As of December 31, 2023 and June 30, 2023, tax distributions payable to non-controlling LLC Unit holders were $0 and $776, respectively. During the six months ended December 31, 2023 and 2022, tax distributions paid to the non-controlling LLC Unit holders were $890 and $1,741, respectively.

Other Distributions

Pursuant to the LLC Agreement, the Company has the right to determine when distributions will be made to LLC members and the amount of any such distributions. If the Company authorizes a distribution, such distribution will be made to the members of the LLC (including the Company) pro rata in accordance with the percentages of their respective LLC Units.

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4. Inventories

Inventories, net consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Raw materials	$	120,373	$	142,948
Work in progress	23,802		19,222
Finished goods	13,591		9,019
Total inventories	$	157,766	$	171,189

5. Property, Plant and Equipment

Property, plant and equipment, net consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Land	$	4,905	$	4,905
Building and leasehold improvements	119,773		119,324
Machinery and equipment	108,775		103,362
Furniture and fixtures	13,324		12,672
Construction in process	93,944		47,482
	340,721		287,745
Less: Accumulated depreciation	(95,590)		(82,953)
Property, plant and equipment, net	$	245,131	$	204,792

Depreciation expense was $6,343 and $5,388 for the three months ended December 31, 2023 and 2022, respectively, and $12,667 and $10,684 for the six months ended December 31, 2023 and 2022, respectively, substantially all of which was recorded in cost of sales.

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6. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the six months ended December 31, 2023 were as follows:

	Malibu		Saltwater Fishing		Cobalt		Consolidated
Goodwill as of June 30, 2023	$	12,072	$	68,714	$	19,791	$	100,577
Effect of foreign currency changes on goodwill	156		—		—		156
Goodwill as of December 31, 2023	$	12,228	$	68,714	$	19,791	$	100,733

The components of other intangible assets were as follows:

	As of December 31, 2023		As of June 30, 2023		Estimated Useful Life (in years)	Weighted-Average Remaining Useful Life (in years)
Definite-lived intangibles:
Dealer relationships	$	131,780	$	131,725	15-20	15.1
Patent	2,600		2,600		15	8.5
Trade name	100		100		15	6.5
Non-compete agreement	48		46		10	0.8
Total	134,528		134,471
Less: Accumulated amortization	(34,679)		(31,213)
Total definite-lived intangible assets, net	99,849		103,258
Indefinite-lived intangible:
Trade name	118,200		118,200
Total other intangible assets, net	$	218,049	$	221,458

Amortization expense recognized on all amortizable intangibles was $1,713 and $1,715 for the three months ended December 31, 2023 and 2022, respectively, and $3,428 and $3,431 for the six months ended December 31, 2023 and 2022, respectively.

Estimated future amortization expenses as of December 31, 2023 are as follows:

Fiscal years ending June 30:	Amount
Remainder of 2024	$	3,378
2025	6,807
2026	6,805
2027	6,805
2028	6,805
2029 and thereafter	69,249
	$	99,849

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7. Accrued Expenses

Accrued expenses consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Warranties	$	40,587	$	41,709
Dealer incentives	21,911		14,996
Accrued compensation	12,525		19,671
Current operating lease liabilities	2,283		2,324
Litigation settlement	—		100,000
Accrued legal and professional fees	21,715		1,899
Customer deposits	5,412		4,054
Other accrued expenses	2,283		2,425
Total accrued expenses	$	106,716	$	187,078

Litigation settlement represents the settlement of product liability cases in June 2023 for $100,000. Accrued legal and professional fees includes approximately $21,000 in insurance coverage proceeds that are subject in certain cases to reservations of rights by the insurance carriers. The proceeds will be considered a liability in accrued expenses until the resolution of the litigation. For more information, refer to Note 15 of our condensed consolidated financial statements included elsewhere in this report.

8. Product Warranties

The Company's Malibu and Axis brand boats have a limited warranty for a period up to five years. The Company's Cobalt brand boats have (1) a structural warranty of up to ten years which covers the hull, deck joints, bulkheads, floor, transom, stringers, and motor mount and (2) a five year bow-to-stern warranty on all components manufactured or purchased (excluding hull and deck structural components), including canvas and upholstery. Gelcoat is covered up to three years for Cobalt and one year for Malibu and Axis. Pursuit brand boats have (1) a limited warranty for a period of up to five years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow-to-stern warranty of two years (excluding hull and deck structural components). Maverick, Pathfinder and Hewes brand boats have (1) a limited warranty for a period of up to five years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow-to-stern warranty of one year (excluding hull and deck structural components). Cobia brand boats have (1) a limited warranty for a period of up to ten years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow-to-stern warranty of three years (excluding hull and deck structural components). For each boat brand, there are certain materials, components or parts of the boat that are not covered by the Company’s warranty and certain components or parts that are separately warranted by the manufacturer or supplier (such as the engine). Engines that the Company manufactures for Malibu and Axis models have a limited warranty of up to five years or five-hundred hours.

The Company’s standard warranties require it or its dealers to repair or replace defective products during the warranty period at no cost to the consumer. The Company estimates warranty costs it expects to incur and records a liability for such costs at the time the product revenue is recognized. The Company utilizes historical claims trends and analytical tools to develop the estimate of its warranty obligation on a per boat basis, by brand and warranty year. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Beginning in model year 2016, the Company increased the term of its limited warranty for Malibu brand boats from three years to five years and for Axis brand boats from two years to five years. Beginning in model year 2018, the Company increased the term of its bow-to-stern warranty for Cobalt brand boats from three years to five years. Accordingly, the Company has less historical claims experience for warranty years four and five, and as such, these estimates give rise to a higher level of estimation uncertainty. Future warranty claims may differ from the Company’s estimate of the warranty liability, which could lead to changes in the Company’s warranty liability in future periods.

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Changes in the Company’s product warranty liability, which is included in accrued expenses on the unaudited interim condensed consolidated balance sheets, were as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Beginning balance	$	41,597	$	39,399	$	41,709	$	38,673
Add: Warranty expense	6,622		6,682		13,037		13,087
Less: Warranty claims paid	(7,632)		(5,568)		(14,159)		(11,247)
Ending balance	$	40,587	$	40,513	$	40,587	$	40,513

9. Financing

Outstanding debt consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Term loan	$	—	$	—
Revolving credit loan	35,000		—
Total debt	35,000		—
Less current maturities	—		—
Long-term debt less current maturities	$	35,000	$	—

Long-Term Debt

On July 8, 2022, Boats LLC entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) which provides Boats LLC with a revolving credit facility in an aggregate principal amount of up to $350,000. As of December 31, 2023, the Company had $35,000 outstanding under its revolving credit facility and $1,578 in outstanding letters of credit, with $313,422 available for borrowing. The revolving credit facility matures on July 8, 2027. Boats LLC has the option to request that lenders increase the amount available under the revolving credit facility by, or obtain incremental term loans of, up to $200,000, subject to the terms of the Credit Agreement and only if existing or new lenders choose to provide additional term or revolving commitments.

The obligations of Boats LLC under the Credit Agreement are guaranteed by the LLC, and, subject to certain exceptions, the present and future domestic subsidiaries of Boats LLC, and all such obligations are secured by substantially all of the assets of the LLC, Boats LLC and such subsidiary guarantors. Malibu Boats, Inc. is not a party to the Credit Agreement.

Borrowings under the Credit Agreement bear interest at a rate equal to either, at the Company's option, (i) the highest of the prime rate, the Federal Funds Rate (as defined in the Credit Agreement) plus 0.5%, or one-month Term SOFR (as defined in the Credit Agreement) plus 1% (the “Base Rate”) or (ii) SOFR (as defined in the Credit Agreement), in each case plus an applicable margin ranging from 1.25% to 2.00% with respect to SOFR borrowings and 0.25% to 1.00% with respect to Base Rate borrowings. The applicable margin is based upon the consolidated leverage ratio of the LLC and its subsidiaries. As of December 31, 2023, the interest rate on the Company’s revolving credit facility was 6.41%. The Company is required to pay a commitment fee for any unused portion of the revolving credit facility which ranges from 0.15% to 0.30% per annum, depending on the LLC’s and its subsidiaries’ consolidated leverage ratio.

The Credit Agreement contains certain customary representations and warranties, and notice requirements for the occurrence of specific events such as the occurrence of any event of default or pending or threatened litigation. The Credit Agreement also requires compliance with certain customary financial covenants consisting of a minimum ratio of EBITDA to interest expense and a maximum ratio of total debt to EBITDA. The Credit Agreement contains certain customary restrictive covenants regarding indebtedness, liens, fundamental changes, investments, share repurchases, dividends and distributions, disposition of assets, transactions with affiliates, negative pledges, hedging transactions, certain prepayments of indebtedness, accounting changes and governmental regulation. For example, the Credit Agreement generally prohibits the LLC, Boats LLC and the subsidiary guarantors from paying dividends or making distributions, including to the Company. The credit facility permits, however, (i) distributions based on a member’s allocated taxable income, (ii) distributions to fund payments that are required under the LLC’s tax receivable agreement, (iii) purchase of stock or stock options of the LLC from former officers,

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directors or employees of loan parties or payments pursuant to stock option and other benefit plans up to $5,000 in any fiscal year, and (iv) repurchases of the Company's outstanding stock and LLC Units. In addition, the LLC may make unlimited dividends and distributions if its consolidated leverage ratio is 2.75 or less and certain other conditions are met, subject to compliance with certain financial covenants.

The Credit Agreement also contains customary events of default. If an event of default has occurred and continues beyond any applicable cure period, the administrative agent may (i) accelerate all outstanding obligations under the Credit Agreement or (ii) terminate the commitments, amongst other remedies. Additionally, the lenders are not obligated to fund any new borrowing under the Credit Agreement while an event of default is continuing.

Covenant Compliance

As of December 31, 2023, the Company was in compliance with the financial covenants contained in the Credit Agreement.

10. Leases

The Company leases certain manufacturing facilities, warehouses, office space, land, and equipment. The Company determines if a contract is a lease or contains an embedded lease at the inception of the agreement. Leases with an initial term of 12 months or less are not recorded on the unaudited interim condensed consolidated balance sheets. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The Company's lease liabilities do not include future lease payments related to options to extend or terminate lease agreements as it is not reasonably certain those options will be exercised.

Other information concerning the Company's operating leases accounted for under ASC Topic 842, Leases is as follows:

Classification		As of December 31, 2023		As of June 30, 2023
Assets
Right-of-use assets	Other assets	$	7,866	$	8,808
Liabilities
Current operating lease liabilities	Accrued expenses	$	2,283	$	2,324
Long-term operating lease liabilities	Other liabilities	6,790		7,843
Total lease liabilities		$	9,073	$	10,167

Classification		Three Months Ended December 31, 2023		Three Months Ended December 31, 2022		Six Months Ended December 31, 2023		Six Months Ended December 31, 2022
Operating lease costs (1)	Cost of sales	$	639	$	646	$	1,344	$	1,313
	Selling and marketing, and general and administrative	204		237		444		456
Sublease income	Other (income) expense, net	(9)		(9)		(19)		(19)
Cash paid for amounts included in the measurement of operating lease liabilities	Cash flows from operating activities	666		622		1,330		1,245

(1) Includes short-term leases, which are insignificant, and are not included in the lease liability.

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The lease liability for operating leases that contain variable escalating rental payments with scheduled increases that are based on the lesser of a stated percentage increase or the cumulative increase in an index, are determined using the stated percentage increase.

The weighted-average remaining lease term as of December 31, 2023 and 2022 was 4.08 years and 5.08 years, respectively. As of December 31, 2023 and 2022, the weighted-average discount rate determined based on the Company's incremental borrowing rate is 3.69% and 3.64%, respectively.

Future annual minimum lease payments for the following fiscal years as of December 31, 2023 are as follows:

	Amount
Remainder of 2024	$	1,336
2025	2,373
2026	2,274
2027	2,258
2028	1,505
2029 and thereafter	1
Total	9,747
Less: imputed interest	(674)
Present value of lease liabilities	$	9,073

11. Tax Receivable Agreement Liability

The Company has a Tax Receivable Agreement with the pre-IPO owners of the LLC that provides for the payment by the Company to the pre-IPO owners (or their permitted assignees) of 85% of the amount of the benefits, if any, that the Company is deemed to realize as a result of (i) increases in tax basis and (ii) certain other tax benefits related to the Company entering into the Tax Receivable Agreement, including those attributable to payments under the Tax Receivable Agreement. These contractual payment obligations are obligations of the Company and not of the LLC. The Company's Tax Receivable Agreement liability was determined on an undiscounted basis in accordance with ASC 450, Contingencies, since the contractual payment obligations were deemed to be probable and reasonably estimable.

For purposes of the Tax Receivable Agreement, the benefit deemed realized by the Company is computed by comparing the actual income tax liability of the Company (calculated with certain assumptions) to the amount of such taxes that the Company would have been required to pay had there been no increase to the tax basis of the assets of the LLC as a result of the purchases or exchanges, and had the Company not entered into the Tax Receivable Agreement.

The following table reflects the changes to the Company's tax receivable agreement liability:

	As of December 31, 2023		As of June 30, 2023
Beginning fiscal year balance	$	43,465	$	45,541
Additions (reductions) to tax receivable agreement:
Exchange of LLC Units for Class A Common Stock	—		1,710
Adjustment for change in estimated state tax rate or benefits	—		188
Payments under tax receivable agreement	—		(3,974)
	43,465		43,465
Less: current portion under tax receivable agreement	(4,111)		(4,111)
Ending balance	$	39,354	$	39,354

The Tax Receivable Agreement further provides that, upon certain mergers, asset sales or other forms of business combinations or other changes of control, the Company (or its successor) would owe to the pre-IPO owners of the LLC a lump-sum payment equal to the present value of all forecasted future payments that would have otherwise been made under the Tax Receivable Agreement that would be based on certain assumptions, including a deemed exchange of LLC Units and that the Company would have sufficient taxable income to fully utilize the deductions arising from the increased tax basis and other tax benefits related to entering into the Tax Receivable Agreement. The Company also is entitled to terminate the Tax Receivable Agreement, which, if terminated, would obligate the Company to make early termination payments to the pre-IPO owners of

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the LLC. In addition, a pre-IPO owner may elect to unilaterally terminate the Tax Receivable Agreement with respect to such pre-IPO owner, which would obligate the Company to pay to such existing owner certain payments for tax benefits received through the taxable year of the election.

When estimating the expected tax rate to use in order to determine the tax benefit expected to be recognized from the Company’s increased tax basis as a result of exchanges of LLC Units by the pre-IPO owners of the LLC, the Company continuously monitors changes in its overall tax posture, including changes resulting from new legislation and changes as a result of new jurisdictions in which the Company is subject to tax.

As of December 31, 2023 and June 30, 2023, the Company recorded deferred tax assets of $118,148 associated with basis differences in assets upon acquiring an interest in the LLC and pursuant to making an election under Section 754 of the Internal Revenue Code of 1986 (the "Internal Revenue Code"), as amended. The aggregate Tax Receivable Agreement liability represents 85% of the tax benefits that the Company expects to receive in connection with the Section 754 election. In accordance with the Tax Receivable Agreement, the next annual payment is anticipated approximately 75 days after filing the federal tax return due by April 15, 2024.

12. Income Taxes

The Company is taxed as a C corporation for U.S. income tax purposes and is therefore subject to both federal and state taxation at a corporate level. The LLC continues to operate in the United States as a partnership for U.S. federal income tax purposes. Maverick Boat Group is separately subject to U.S. federal and state income tax with respect to its net taxable income.

Income taxes are computed in accordance with ASC Topic 740, Income Taxes, and reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize the benefit of some or all of its deferred tax assets, such deferred tax assets will be adjusted through the Company’s provision for income taxes in the period in which this determination is made.

As of December 31, 2023 and June 30, 2023, the Company maintained a total valuation allowance of $16,753 and $16,876, respectively, against deferred tax assets related to state net operating losses and future amortization deductions (with respect to the Section 754 election) that are reported in the Tennessee corporate tax return without offsetting income, which is taxable at the LLC. These also include a valuation allowance in the amount of $580 related to foreign tax credit carryforward that is not expected to be utilized in the future.

The Company’s consolidated interim effective tax rate is based upon expected annual income from operations, statutory tax rates and tax laws in the various jurisdictions in which the Company operates. Significant or unusual items, including those related to the change in U.S. tax law as well as other adjustments to accruals for tax uncertainties, are recognized in the quarter in which the related event occurs. On August 16, 2022, the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”) was signed into law. The Inflation Reduction Act contains significant business tax provisions, including an excise tax on stock buybacks (1% for transactions beginning January 1, 2023), increased funding for IRS tax enforcement, expanded energy incentives promoting clean energy investment, and a 15% corporate minimum tax on certain large corporations. The effects of the new legislation are recognized upon enactment. The Company did not recognize any significant impact to income tax expense for the six months ended December 31, 2023 relating to the Inflation Reduction Act.

For the three months ended December 31, 2023 and 2022, the Company's effective tax rate was 27.8% and 23.5%, respectively. For the six months ended December 31, 2023 and 2022, the Company's effective tax rate was 26.0% and 23.4%, respectively. For the three months ended December 31, 2023 and 2022, the Company's effective tax rate exceeded the statutory federal income tax rate of 21% primarily due to the impact of U.S. state taxes. For the three and six months ended December 31, 2023, this increase in the effective tax rate was also driven by a shortfall expense generated by certain stock-based compensation. For the three and six months ended December 31, 2022, the increase in the effective tax rate over the statutory federal income tax rate was partially offset by a windfall benefit generated by certain stock-based compensation as well as the benefits from the foreign derived intangible income deduction, the research and development tax credit, and the impact of non-controlling interests in the LLC.

13. Stock-Based Compensation

The Company adopted a long term incentive plan which became effective on January 1, 2014, and reserves for issuance up to 1,700,000 shares of Malibu Boats, Inc. Class A Common Stock for the Company’s employees, consultants, members of its board of directors and other independent contractors at the discretion of the compensation committee. Incentive stock awards

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authorized under the Incentive Plan include unrestricted shares of Class A Common Stock, stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent awards and performance awards. As of December 31, 2023, 204,722 shares remain available for future issuance under the long term incentive plan.

On November 6, 2023, under the Incentive Plan, Malibu Boats, Inc. granted approximately 79,000 restricted service-based stock units and 35,000 restricted service-based stock awards to employees. The grant date fair value of these awards was $5,116 based on a stock price of $44.87 per share on the date of grant. Approximately 70% of the awards vest ratably over three years and approximately 30% of the awards vest ratably over four years. Stock-based compensation expense attributable to the service-based units and awards is amortized on a straight-line basis over the requisite service period.

On November 6, 2023, under the Incentive Plan, Malibu Boats, Inc. granted to employees a target amount of approximately 26,000 restricted stock awards with a performance condition. The number of shares that will ultimately be issued, if any, is based on the attainment of a specified amount of earnings during the fiscal year ending June 30, 2026. The maximum number of shares that can be issued if an elevated earnings target is met is approximately 39,000. The grant date fair value of the awards were estimated to be $1,167, based on a stock price of $44.87. These shares are not expected to vest based on the expectation that the related performance criteria will not be met. Compensation costs associated with the performance awards are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation.

On November 6, 2023, under the Incentive Plan, Malibu Boats, Inc. granted to employees a target amount of approximately 26,000 stock awards with a market condition. The number of shares that will ultimately be issued, if any, is based on a total shareholder return ("TSR") computation that involves comparing the movement in Malibu Boats, Inc.'s stock price to movement in a market index from the grant date through November 6, 2026. The maximum number of shares that can be issued if an elevated TSR target is met is approximately 52,000. The grant date fair value of the awards were estimated to be $1,284, which is estimated using a Monte Carlo simulation. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair market value for the stock award. Compensation costs are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation.

On November 27, 2023, under the Incentive Plan, Malibu Boats, Inc. granted two awards to its newly-appointed Chief Financial Officer. The two service-based stock awards include approximately 7,000 units that will vest over two years and approximately 6,000 units that will vest over four years. The combined grant date fair value of these awards was $600 based on a stock price of $44.85 per share on the date of grant.

The following is a summary of the changes in the Company's stock options for the six months ended December 31, 2023:

	Shares	Weighted-Average Exercise Price/Share
Total outstanding options as of June 30, 2023	17,973	$	37.55
Options granted	—	—
Options exercised	—	—
Outstanding options as of December 31, 2023	17,973	37.55
Exercisable as of December 31, 2023	17,973	$	37.55

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The following is a summary of the changes in non-vested restricted stock units and restricted stock awards for the six months ended December 31, 2023:

	Number of Restricted Stock Units and Restricted Stock Awards Outstanding	Weighted-Average Grant Date Fair Value
Total Non-vested Restricted Stock Units and Restricted Stock Awards as of June 30, 2023	324,824	$	57.98
Granted	230,031	44.95
Vested	(91,683)	54.79
Forfeited	(24,983)	54.57
Total Non-vested Restricted Stock Units and Restricted Stock Awards as of December 31, 2023	438,189	$	52.00

Stock-based compensation expense attributable to the Company's share-based equity awards was $(137) and $2,016 for the three months ended December 31, 2023 and 2022, respectively and $1,323 and $3,651 for the six months ended December 31, 2023 and 2022, respectively. During the three months ended December 31, 2023, the Company determined achievement of the fiscal year 2022 and fiscal year 2023 performance based awards to be improbable. As a result, the Company reversed approximately $1,600 in previously recognized stock-based compensation expense. Stock-based compensation expense attributed to share-based equity awards issued under the Incentive Plan is recognized on a straight-line basis over the terms of the respective awards and is included in general and administrative expense in the Company's unaudited interim condensed consolidated statements of operations and comprehensive income. Awards vesting during the three and six months ended December 31, 2023 include 10,675 and 11,477 fully vested restricted stock units issued to non-employee directors for their service as directors for the Company.

14. Net Earnings Per Share

Basic net income per share of Class A Common Stock is computed by dividing net income attributable to the Company's earnings by the weighted-average number of shares of Class A Common Stock outstanding during the period. The weighted-average number of shares of Class A Common Stock outstanding used in computing basic net income per share includes fully vested restricted stock units awarded to directors that are entitled to participate in distributions to common stockholders through receipt of additional units of equivalent value to the dividends paid to Class A Common Stock holders.

Diluted net income per share of Class A Common Stock is computed similarly to basic net income per share except the weighted-average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents using the treasury method, if dilutive. The Company's LLC Units and non-qualified stock options are considered common stock equivalents for this purpose. The number of additional shares of Class A Common Stock related to these common stock equivalents and stock options are calculated using the treasury stock method.

Stock awards with a performance condition that are based on the attainment of a specified amount of earnings are only included in the computation of diluted earnings per share to the extent that the performance condition would be achieved based on the current amount of earnings, and only if the effect would be dilutive.

Stock awards with a market condition that are based on the performance of the Malibu Boats, Inc.'s stock price in relation to a market index over a specified time period are only included in the computation of diluted earnings per share to the extent that the shares would be issued based on the current market price of the Malibu Boats, Inc.'s stock in relation to the market index, and only if the effect would be dilutive.

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Basic and diluted net income per share of Class A Common Stock has been computed as follows (in thousands, except share and per share amounts):

	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Basic:
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	20,103,458		20,149,634		20,212,849		20,182,696
Weighted-average participating restricted stock units convertible into Class A Common Stock	272,292		254,949		268,270		249,520
Basic weighted-average shares outstanding	20,375,750		20,404,583		20,481,119		20,432,216
Basic net income per share	$	0.49	$	1.73	$	1.47	$	3.43
Diluted:
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	20,375,750		20,404,583		20,481,119		20,432,216
Restricted stock units granted to employees	24,108		49,725		44,613		64,419
Stock options granted to employees	3,899		11,889		4,654		13,289
Market performance awards granted to employees	46,447		49,828		36,832		49,828
Diluted weighted-average shares outstanding 1	20,450,204		20,516,025		20,567,218		20,559,752
Diluted net income per share	$	0.49	$	1.72	$	1.47	$	3.41

1 The Company excluded (i) 597,673 and 761,150 potentially dilutive shares from the calculation of diluted net income per share for the three months ended December 31, 2023 and 2022, respectively, and (ii) 533,968 and 761,150 potentially dilutive shares from the calculation of diluted net income per share for the six months ended December 31, 2023 and 2022, respectively.

The shares of Class B Common Stock do not share in the earnings or losses of Malibu Boats, Inc. and are therefore not included in the calculation. Accordingly, basic and diluted net income per share of Class B Common Stock have not been presented.

15. Commitments and Contingencies

Repurchase Commitments

In connection with its dealers’ wholesale floor plan financing of boats, the Company has entered into repurchase agreements with various lending institutions. The reserve methodology used to record an estimated expense and loss reserve in each accounting period is based upon an analysis of likely repurchases based on current field inventory and likelihood of repurchase. Subsequent to the inception of the repurchase commitment, the Company evaluates the likelihood of repurchase and adjusts the estimated loss reserve accordingly. When a potential loss reserve is recorded, it is presented in accrued liabilities in the accompanying unaudited interim condensed consolidated balance sheets. If the Company were obligated to repurchase a significant number of units under any repurchase agreement, its business, operating results and financial condition could be adversely affected. The total amount financed under the floor financing programs with repurchase obligations was $478,364 and $385,448 as of December 31, 2023 and June 30, 2023, respectively.

Repurchases and subsequent sales are recorded as a revenue transaction. The net difference between the repurchase price and the resale price is recorded against the loss reserve and presented in cost of sales in the accompanying unaudited interim condensed consolidated statements of operations and comprehensive income. During the three and six months ended December 31, 2023 and 2022, there were no repurchases and as of December 31, 2023, the Company has not been notified about any probable repossessions. Therefore, the Company did not carry a reserve for repurchases as of December 31, 2023 consistent with June 30, 2023.

The Company has collateralized receivables financing arrangements with a third-party floor plan financing provider for

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European dealers. Under terms of these arrangements, the Company transfers the right to collect a trade receivable to the financing provider in exchange for cash but agrees to repurchase the receivable if the dealer defaults. Since the transfer of the receivable to the financing provider does not meet the conditions for a sale under ASC Topic 860, Transfers and Servicing, the Company continues to report the transferred trade receivable in other current assets with an offsetting balance recorded as a secured obligation in accrued expenses in the Company's unaudited interim condensed consolidated balance sheets. As of December 31, 2023 and June 30, 2023, the Company had no financing receivables recorded in other current assets and accrued expenses related to these arrangements.

Roane County Property Purchase

On March 28, 2023, the Company entered into a Purchase and Sale Agreement (the “Purchase Agreement”) to purchase certain real property, improvements and other assets from the seller for a cash purchase price of approximately $33,300. As of June 30, 2023, the Company had deposited approximately $7,800 in escrow pursuant to the Purchase Agreement. On July 25, 2023, the transaction closed and the Company paid the remaining $25,500 balance of the purchase price. In addition to the purchase price, the Company has incurred approximately $11,500 of capital expenditures through December 31, 2023 to update the facility to meet its operational needs and expects to incur additional capital expenditures of approximately $7,900 with respect to the facility.

Contingencies

Product Liability

The Company is engaged in a business that exposes it to claims for product liability and warranty claims in the event the Company’s products actually or allegedly fail to perform as expected or the use of the Company’s products results, or is alleged to result, in property damage, personal injury or death. Although the Company maintains product and general liability insurance of the types and in the amounts that the Company believes are customary for the industry, the Company is not fully insured against all such potential claims. The Company may have the ability to refer claims to its suppliers and their insurers to pay the costs associated with any claims arising from the suppliers’ products. The Company’s insurance covers such claims that are not adequately covered by a supplier’s insurance and provides for excess secondary coverage above the limits provided by the Company’s suppliers.

The Company may experience legal claims in excess of its insurance coverage or claims that are not covered by insurance, either of which could adversely affect its business, financial condition and results of operations. Adverse determination of material product liability and warranty claims made against the Company could have a material adverse effect on its financial condition and harm its reputation. In addition, if any of the Company's products are, or are alleged to be, defective, the Company may be required to participate in a recall of that product if the defect or alleged defect relates to safety. These and other claims that the Company faces could be costly to the Company and require substantial management attention. Refer to Note 8 for discussion of warranty claims. The Company insures against product liability claims and believes there are no product liability claims as of December 31, 2023 that will have a material adverse impact on the Company’s results of operations, financial condition or cash flows.

Litigation

Certain conditions may exist which could result in a loss, but which will only be resolved when future events occur. The Company, in consultation with its legal counsel, assesses such contingent liabilities, and such assessments inherently involve an exercise of judgment. If the assessment of a contingency indicates that it is probable that a loss has been incurred, the Company accrues for such contingent loss when it can be reasonably estimated. If the assessment indicates that a potentially material loss contingency is not probable but reasonably estimable, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. If the assessment of a contingency deemed to be both probable and reasonably estimable involves a range of possible losses, the amount within the range that appears at the time to be a better estimate than any other amount within the range would be accrued. When no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued even though the minimum amount in the range is not necessarily the amount of loss that will be ultimately determined. Estimates of potential legal fees and other directly related costs associated with contingencies are not accrued but rather are expensed as incurred. Management does not believe there are any pending claims (asserted or unasserted) as of December 31, 2023 that would have a material adverse impact on the Company's results of operations, financial condition or cash flows.

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Legal Proceedings

Insurance Litigation

MBI and its indirect subsidiary Boats LLC were defendants in the product liability case Batchelder et al. v. Malibu Boats, LLC, f/k/a Malibu Boats, Inc.; Malibu Boats West, Inc., et. al., Superior Court of Rabun County, Georgia, Civil Action Case No. 2016-CV-0114-C (the “Batchelder I Matter”), brought by, among others, Stephan Paul Batchelder and Margaret Mary Batchelder as Administrators of the Estate of Ryan Paul Batchelder, deceased (“Batchelder I Plaintiffs”). Boats LLC was also a defendant in a related product liability case, Stephan Paul Batchelder and Margaret Mary Batchelder, as Natural Guardians of Josh Patrick Batchelder, a minor; Darin Batchelder, individually, and as Natural Guardian of Zach Batchelder, a minor; and Kayla Batchelder (the “Batchelder II Plaintiffs” and, together with the Batchelder I Plaintiffs, the “Batchelder Plaintiffs”) v. Malibu Boats, LLC v. Dennis Michael Ficarra; Superior Court of Rabun County, Civil Action File No. 2022-CV-0034 (the “Batchelder II Matter” and, together with the Batchelder I Matter, the “Batchelder Matters”). On June 30, 2023, MBI and Boats LLC entered into a Confidential General Release and Settlement Agreement (the “Settlement Agreement”) with the Batchelder Plaintiffs in settlement of the Batchelder Matters and all matters related to the Batchelder Matters. Pursuant to the Settlement Agreement, among other things, Malibu Boats, Inc., or Boats LLC, as the case may be, paid (or caused to be paid) to the Batchelder Plaintiffs and their agents a total of $100,000.

MBI and its subsidiaries, including Boats LLC, maintain liability insurance applicable to the Batchelder Matters described above with coverage up to $26,000. As of December 31, 2023, the Company had received approximately $21,000 in insurance coverage proceeds, subject in certain cases to reservations of rights by the insurance carriers. The Company contends that the insurance carriers are responsible for the entirety of the $100,000 settlement amount and related expenses, and therefore, the insurers’ payments to date are well below what they should have tendered to Boats LLC. Accordingly, on July 3, 2023, Boats LLC filed a complaint against Federal Insurance Company (a Chubb subsidiary) and Starr Indemnity & Liability Company alleging that the insurers unreasonably failed to comply with their obligations by refusing, negligently, and in bad faith, to settle covered claims within their available policy limits prior to trial. The Company intends to vigorously pursue its claims against its insurers to recover the full $100,000 settlement amount and expenses (less any monies already tendered without reservation by the carriers). However, the Company cannot predict the outcome of such litigation.

16. Segment Reporting

The Company has three reportable segments, Malibu, Saltwater Fishing and Cobalt. The Malibu segment participates in the manufacturing, distribution, marketing and sale of Malibu and Axis performance sports boats throughout the world. The Saltwater Fishing segment participates in the manufacturing, distribution, marketing and sale throughout the world of Pursuit boats and the Maverick Boat Group brand boats (Maverick, Cobia, Pathfinder and Hewes). The Cobalt segment participates in the manufacturing, distribution, marketing and sale of Cobalt boats throughout the world.

There is no country outside of the United States from which the Company (a) derived net sales equal to 10% of total net sales for the three and six months ended December 31, 2023, or (b) attributed assets equal to 10% of total assets as of December 31, 2023. Net sales are attributed to countries based on the location of the dealer. The following tables present financial information for the Company’s reportable segments for the three and six months ended December 31, 2023 and 2022, respectively, and the Company’s financial position at December 31, 2023 and June 30, 2023, respectively:

	Three Months Ended December 31, 2023								Six Months Ended December 31, 2023
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Total
Net sales	$	76,389	$	82,734	$	51,951	$	211,074	$	181,394	$	175,356	$	110,154	$	466,904
Income before provision for income taxes	$	3,905	$	5,865	$	4,280	$	14,050	$	15,842	$	14,860	$	11,096	$	41,798
	Three Months Ended December 31, 2022								Six Months Ended December 31, 2022
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Total
Net sales	$	158,166	$	105,585	$	74,981	$	338,732	$	303,334	$	197,818	$	139,791	$	640,943
Income before provision for income taxes	$	29,055	$	11,021	$	7,505	$	47,581	$	56,971	$	21,281	$	16,457	$	94,709

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	As of December 31, 2023		As of June 30, 2023
Assets
Malibu	$	196,436	$	249,447
Saltwater Fishing	429,394		432,806
Cobalt	254,166		243,671
Total assets	$	879,996	$	925,924

17. Subsequent Events

Between January 1, 2024 and January 30, 2024, three non-controlling LLC Units holders exchanged 131,000 LLC Units for 131,000 shares of Class A Common Stock. No shares of Class B Common Stock were retired in connection with the exchanges.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the unaudited interim condensed consolidated financial statements and notes thereto included herein.

Malibu Boats, Inc. is a Delaware corporation with its principal offices in Loudon, Tennessee. We use the terms “Malibu,” the “Company,” “we,” “us,” “our” or similar references to refer to Malibu Boats, Inc., its subsidiary, Malibu Boats Holdings, LLC, or the LLC, and its subsidiary Malibu Boats, LLC, or Boats, LLC and its consolidated subsidiaries, including Cobalt Boats, LLC, PB Holdco, LLC, through which we acquired the assets of Pursuit, and MBG Holdco, Inc., through which we acquired all of the outstanding stock of Maverick Boat Group, Inc.

Overview

We are a leading designer, manufacturer and marketer of a diverse range of recreational powerboats, including performance sport boats, sterndrive and outboard boats. Our product portfolio of premium brands are used for a broad range of recreational boating activities including, among others, water sports, general recreational boating and fishing. Our passion for consistent innovation, which has led to propriety technology such as Surf Gate, has allowed us to expand the market for our products by introducing consumers to new and exciting recreational activities. We design products that appeal to an expanding range of recreational boaters and water sports enthusiasts whose passion for boating and water sports is a key component of their active lifestyle and provide consumers with a better customer-inspired experience. With performance, quality, value and multi-purpose features, our product portfolio has us well positioned to broaden our addressable market and achieve our goal of increasing our market share in the expanding recreational boating industry.

We currently sell our boats under eight brands as shown in the table below, and we report our results of operations under three reportable segments, Malibu, Saltwater Fishing and Cobalt. See Note 16 to our unaudited interim condensed consolidated financial statements for more information about our reporting segments.

		% of Net Sales
Segment	Brands	Six Months Ended December 31, 2023	Fiscal year ended June 30, 2023
Malibu	Malibu	38.8%	45.8%
	Axis
Saltwater Fishing	Pursuit	37.6%	32.4%
	Maverick
	Cobia
	Pathfinder
	Hewes
Cobalt	Cobalt	23.6%	21.8%

Our Malibu segment participates in the manufacturing, distribution, marketing and sale throughout the world of Malibu and Axis performance sports boats. Our flagship Malibu boats offer our latest innovations in performance, comfort and convenience, and are designed for consumers seeking a premium performance sport boat experience. We are the market leader in the United States in the performance sport boat category through our Malibu and Axis boat brands. Our Axis boats appeal to consumers who desire a more affordable performance sport boat product but still demand high performance, functional simplicity and the option to upgrade key features. Retail prices of our Malibu and Axis boats typically range from $80,000 to $300,000.

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Our Saltwater Fishing segment participates in the manufacturing, distribution, marketing and sale throughout the world of Pursuit boats and the Maverick Boat Group family of boats (Maverick, Cobia, Pathfinder and Hewes). Our Pursuit boats expand our product offerings into the saltwater outboard fishing market and include center console, dual console and offshore models. In December 2020, we acquired Maverick Boat Group and added Maverick, Cobia, Pathfinder and Hewes to our brands. Our Maverick Boat Group family of boats are highly complementary to Pursuit, expanding our saltwater outboard offerings with a strong focus in length segments under 30 feet. We are among the market leaders in the fiberglass outboard fishing boat category with the brands in our Saltwater Fishing segment. Retail prices for our Saltwater Fishing boats typically range from $45,000 to $1,400,000.

Our Cobalt segment participates in the manufacturing, distribution, marketing and sale throughout the world of Cobalt boats. Our Cobalt boats consist of mid to large-sized luxury cruisers and bowriders that we believe offer the ultimate experience in comfort, performance and quality. We are the market leader in the United States in the 20’ - 40’ segment of the sterndrive boat category through our Cobalt brand. Retail prices for our Cobalt boats typically range from $75,000 to $625,000.

We sell our boats through a dealer network that we believe is the strongest in the recreational powerboat category. As of June 30, 2023, our worldwide distribution channel consisted of over 400 dealer locations globally. Our dealer base is an important part of our consumers’ experience, our marketing efforts and our brands. We devote significant time and resources to find, develop and improve the performance of our dealers and believe our dealer network gives us a distinct competitive advantage.

On a consolidated basis, we achieved second quarter fiscal 2024 net sales, gross profit, net income and adjusted EBITDA of $211.1 million, $37.5 million, $10.1 million and $22.9 million, respectively, compared to $338.7 million, $75.7 million, $36.4 million and $57.6 million, respectively, for the second quarter of fiscal 2023. For the second quarter of fiscal 2024, net sales decreased 37.7%, gross profit decreased 50.5%, net income decreased 72.1% and adjusted EBITDA decreased 60.2% as compared to the second quarter of fiscal 2023. For the definition of adjusted EBITDA and a reconciliation to net income, see “GAAP Reconciliation of Non-GAAP Financial Measures.”

Outlook

During the COVID-19 pandemic, domestic retail demand for recreational powerboats increased to the highest levels seen by the industry in decades as consumers turned to boating as a form of outdoor, socially-distanced, recreation.

The combination of strong retail market activity in calendar years 2020 and 2021 along with supply chain disruptions in calendar year 2021 that continued through calendar year 2022 depleted inventory levels at our dealers in calendar year 2022 below pre-COVID levels.

Current inventory levels are now above pre-pandemic levels across most of our segments as retail activity slowed at a more rapid pace than wholesale shipments. Now, as channel inventory is slightly above normalized levels, we believe wholesale demand will be directly dependent on the underlying retail activity for our products in the second half of fiscal year 2024. We have experienced a softening in retail demand during the first half of fiscal year 2024, in particular in entry level and lower priced boats, which we expect will continue into the second half of fiscal year 2024. In response, we are recalibrating our wholesale production to match retail demand.

We aim to increase our market share across the boating categories in which we compete through new product development, improved distribution, new models, and innovative features. Our industry, however, is highly competitive, and our competitors have become more aggressive in their product introductions, expanded their distribution capabilities, and launched surf systems competitive with our patented Surf Gate system. We believe our strong brands, new product pipeline, strong dealer network and ability to increase production will allow us to maintain, and potentially expand, our leading market position in performance sports boats. We also believe that our track record of expanding our market share with our Malibu and Axis brands is directly transferable to our Cobalt, Pursuit and Maverick Boat Group brands.

As discussed above, our financial results and operations have been, and could continue to be, impacted by events outside of our control, including inflationary pressures, supply chain disruptions, rising prices for our suppliers and labor shortages. Numerous other variables also have the potential to impact our volumes, both positively and negatively. For instance, elevated interest rates, which we are currently experiencing and expect to continue to experience in the near term, has reduced retail consumer appetite for our product and reduced the appetite and availability for credit for our dealers and retail consumers.

Factors Affecting Our Results of Operations

We believe that our results of operations and our growth prospects are affected by a number of factors, such as the economic environment and consumer demand for our products, our ability to develop new products and innovate, our product

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mix, our ability to manage manufacturing costs, sales cycles and inventory levels, the strength of our dealer network, our ability to offer dealer financing and incentives and our vertical integration efforts. We discuss each of these factors in more detail under the heading “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations--Factors Affecting Our Results of Operations” in our Form 10-K for the year ended June 30, 2023. While we do not have control of all factors affecting our results from operations, we work diligently to influence and manage those factors which we can impact to enhance our results of operations.

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Components of Results of Operations

Net Sales

We generate revenue from the sale of boats to our dealers. The substantial majority of our net sales are derived from the sale of boats, including optional features included at the time of the initial wholesale purchase of the boat. Net sales consists of the following:

•Gross sales from:

•Boat and trailer sales—consists of sales of boats and trailers to our dealer network. Nearly all of our boat sales include optional feature upgrades purchased by the consumer, which increase the average selling price of our boats; and

•Parts and other sales—consists of sales of replacement and aftermarket boat parts and accessories to our dealer network; and consists of royalty income earned from license agreements with various boat manufacturers, including Nautique, Chaparral, Mastercraft, and Tige related to the use of our intellectual property.

•Net sales are net of:

•Sales returns—consists primarily of contractual repurchases of boats either repossessed by the floor plan financing provider from the dealer or returned by the dealer under our warranty program; and

•Rebates and free flooring—consists of incentives, rebates and free flooring, we provide to our dealers based on sales of eligible products. For our Malibu and Cobalt segments, if a domestic dealer meets its monthly or quarterly commitment volume, as well as other terms of the dealer performance program, the dealer is entitled to a specified rebate. For our Saltwater Fishing segment, if a dealer meets its quarterly or annual retail volume goals, the dealer is entitled to a specific rebate applied to their wholesale volume purchased. For Malibu, Cobalt and select Saltwater Fishing models, our dealers that take delivery of current model year boats in the offseason, typically July through April in the U.S., are also entitled to have us pay the interest to floor the boat until the earlier of (1) the sale of the unit or (2) a date near the end of the current model year, which incentive we refer to as “free flooring.” From time to time, we may extend the flooring program to eligible models beyond the offseason period.

Cost of Sales

Our cost of sales includes all of the costs to manufacture our products, including raw materials, components, supplies, direct labor and factory overhead. For components and accessories manufactured by third-party vendors, such costs represent the amounts invoiced by the vendors. Shipping costs and depreciation expense related to manufacturing equipment and facilities are also included in cost of sales. Warranty costs associated with the repair or replacement of our boats under warranty are also included in cost of sales.

Operating Expenses

Our operating expenses include selling and marketing, general and administrative costs and amortization costs. Each of these items includes personnel and related expenses, supplies, non-manufacturing overhead, third-party professional fees and various other operating expenses. Further, selling and marketing expenditures include the cost of advertising and various promotional sales incentive programs. General and administrative expenses include, among other things, salaries, benefits and other personnel related expenses for employees engaged in product development, engineering, finance, information technology, human resources and executive management. Other costs include outside legal and accounting fees, investor relations, risk management (insurance) and other administrative costs. General and administrative expenses also include product development expenses associated with our vertical integration initiative and acquisition or integration related expenses. Amortization expenses are associated with the amortization of intangibles.

Other Expense, Net

Other expense, net consists of interest expense and other income or expense, net. Interest expense consists of interest charged under our outstanding debt and amortization of deferred financing costs on our credit facilities. Other income or expense includes adjustments to our tax receivable agreement liability and sublease income.

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Income Taxes

Malibu Boats, Inc. is subject to U.S. federal and state income tax in multiple jurisdictions with respect to our allocable share of any net taxable income of the LLC. The LLC is a pass-through entity for federal purposes but incurs income tax in certain state jurisdictions. Maverick Boat Group is separately subject to U.S. federal and state income tax with respect to its net taxable income.

Net Income Attributable to Non-controlling Interest

As of each of December 31, 2023 and 2022, we had a 97.8% and a 97.1%, respectively, controlling economic interest and 100% voting interest in the LLC and, therefore, we consolidate the LLC's operating results for financial statement purposes. Net income attributable to non-controlling interest represents the portion of net income attributable to the non-controlling LLC members.

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Results of Operations

The table below sets forth our unaudited interim consolidated results of operations, expressed in thousands (except unit volume and net sales per unit) and as a percentage of net sales, for the periods presented. Our unaudited interim consolidated financial results for these periods are not necessarily indicative of the consolidated financial results that we will achieve in future periods. Certain totals for the table below will not sum to exactly 100% due to rounding.

	Three Months Ended December 31,								Six Months Ended December 31,
	2023				2022				2023				2022
	$		% Revenue		$		% Revenue		$		% Revenue		$		% Revenue
Net sales	211,074		100.0	%	338,732		100.0	%	466,904		100.0	%	640,943		100.0	%
Cost of sales	173,599		82.2	%	263,078		77.7	%	372,635		79.8	%	490,684		76.6	%
Gross profit	37,475		17.8	%	75,654		22.3	%	94,269		20.2	%	150,259		23.4	%
Operating expenses:
Selling and marketing	5,610		2.7	%	6,198		1.8	%	11,362		2.4	%	11,384		1.8	%
General and administrative	15,440		7.3	%	19,057		5.6	%	36,145		7.7	%	38,277		6.0	%
Amortization	1,713		0.8	%	1,715		0.5	%	3,428		0.7	%	3,431		0.5	%
Operating income	14,712		7.0	%	48,684		14.4	%	43,334		9.3	%	97,167		15.1	%
Other expense, net:
Other (income) expense, net	(9)		—	%	193		0.1	%	(19)		—	%	263		—	%
Interest expense	671		0.3	%	910		0.3	%	1,555		0.3	%	2,195		0.3	%
Other expense, net	662		0.3	%	1,103		0.4	%	1,536		0.3	%	2,458		0.3	%
Income before provision for income taxes	14,050		6.7	%	47,581		14.0	%	41,798		9.0	%	94,709		14.8	%
Provision for income taxes	3,906		1.9	%	11,185		3.3	%	10,884		2.3	%	22,208		3.5	%
Net income	10,144		4.8	%	36,396		10.7	%	30,914		6.6	%	72,501		11.3	%
Net income attributable to non-controlling interest	263		0.1	%	1,234		0.3	%	774		0.2	%	2,456		0.4	%
Net income attributable to Malibu Boats, Inc.	9,881		4.7	%	35,162		10.4	%	30,140		6.5	%	70,045		10.9	%
	Three Months Ended December 31,								Six Months Ended December 31,
	2023				2022				2023				2022
	Unit Volumes		% Total		Unit Volumes		% Total		Unit Volumes		% Total		Unit Volumes		% Total
Volume by Segment
Malibu	606		44.1	%	1,318		54.0	%	1,410		45.9	%	2,536		54.2	%
Saltwater Fishing	405		29.5	%	593		24.3	%	896		29.2	%	1,141		24.4	%
Cobalt	362		26.4	%	528		21.7	%	765		24.9	%	999		21.4	%
Total units	1,373		100.0	%	2,439		100.0	%	3,071		100.0	%	4,676		100.0	%
Net sales per unit	$	153,732			$	138,882			$	152,036			$	137,071

Comparison of the Three Months Ended December 31, 2023 to the Three Months Ended December 31, 2022

Net Sales

Net sales for the three months ended December 31, 2023 decreased $127.7 million, or 37.7%, to $211.1 million as compared to the three months ended December 31, 2022. The decrease in net sales was driven primarily by decreased unit volumes across all segments resulting primarily from decreased retail demand and increased dealer flooring program costs across all segments resulting from higher interest rates and increased inventory levels, partially offset by a favorable model mix in our Malibu and Saltwater Fishing segments and inflation-driven year-over-year price increases. Unit volume for the three months ended December 31, 2023, decreased 1,066 units, or 43.7%, to 1,373 units as compared to the three months ended

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December 31, 2022. Our unit volume decreased primarily due to lower wholesale shipments across all segments driven by lower retail activity during the period.

Net sales attributable to our Malibu segment decreased $81.8 million, or 51.7%, to $76.4 million for the three months ended December 31, 2023, compared to the three months ended December 31, 2022. Unit volumes attributable to our Malibu segment decreased 712 units for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, primarily due to lower wholesale shipments driven by lower retail activity during the period and elevated dealer channel inventory levels. The decrease in net sales was driven by a decrease in units and increased dealer flooring program costs, partially offset by a favorable model mix and inflation-driven year-over-year price increases.

Net sales attributable to our Saltwater Fishing segment decreased $22.9 million, or 21.6%, to $82.7 million, for the three months ended December 31, 2023, compared to the three months ended December 31, 2022. Unit volume decreased 188 units for the three months ended December 31, 2023 compared to the three months ended December 31, 2022. The decrease in net sales was driven by a decrease in units and increased dealer flooring program costs, partially offset by a favorable model mix and inflation-driven year-over-year price increases.

Net sales attributable to our Cobalt segment decreased $23.0 million, or 30.7%, to $52.0 million for the three months ended December 31, 2023, compared to the three months ended December 31, 2022. Unit volumes attributable to Cobalt decreased 166 units for the three months ended December 31, 2023 compared to the three months ended December 31, 2022. The decrease in net sales was driven primarily by a decrease in units and increased dealer flooring program costs, partially offset by inflation-driven year-over-year price increases.

Overall consolidated net sales per unit increased 10.7% to $153,732 per unit for the three months ended December 31, 2023, compared to the three months ended December 31, 2022. Net sales per unit for our Malibu segment increased 5.0% to $126,056 per unit for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, driven by a favorable model mix and inflation-driven year-over-year price increases, partially offset by increased dealer flooring program costs. Net sales per unit for our Saltwater Fishing segment increased 14.7% to $204,279 per unit for the three months ended December 31, 2023 driven by a favorable model mix and inflation-driven year-over-year price increases, partially offset by increased dealer flooring program costs. Net sales per unit for our Cobalt segment increased 1.1% to $143,511 per unit for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, driven by inflation-driven year-over-year price increases, partially offset by increased dealer flooring program costs and unfavorable model mix.

Cost of Sales

Cost of sales for the three months ended December 31, 2023 decreased $89.5 million, or 34.0%, to $173.6 million as compared to the three months ended December 31, 2022. The decrease in cost of sales was primarily driven by a 37.7% decrease in net sales due to lower unit volumes, partially offset by higher per unit material and labor costs of $4.2 million and $7.0 million for the Malibu and Saltwater Fishing segments, respectively. The increase in per unit material and labor costs was primarily driven by increased prices due to inflationary pressures and a model mix that corresponds to higher cost per unit in our Malibu and Saltwater Fishing segments.

Gross Profit

Gross profit for the three months ended December 31, 2023 decreased $38.2 million, or 50.5%, to $37.5 million compared to the three months ended December 31, 2022. The decrease in gross profit was driven primarily by lower net sales partially offset by decreased cost of sales for the reasons noted above. Gross margin for the three months ended December 31, 2023 decreased 450 basis points from 22.3% to 17.8% driven primarily by fixed cost deleverage due to lower sales, primarily by increased mix of the Saltwater Fishing segment and increased dealer flooring program costs.

Operating Expenses

Selling and marketing expenses for the three months ended December 31, 2023 decreased $0.6 million, or 9.5% to $5.6 million compared to the three months ended December 31, 2022. The decrease was driven primarily by a decrease in marketing events. As a percentage of sales, selling and marketing expenses increased 90 basis points to 2.7% for the three months ended December 31, 2023 compared to 1.8% for the three months ended December 31, 2022. General and administrative expenses for the three months ended December 31, 2023 decreased $3.6 million, or 19.0%, to $15.4 million as compared to the three months ended December 31, 2022 driven primarily by a decrease in personnel-related expenses, partially offset by increased information technology costs and professional fees. As a percentage of sales, general and administrative expenses increased 170 basis points to 7.3% for the three months ended December 31, 2023 compared to 5.6% for the three months ended December 31, 2022. Amortization expense remained flat at $1.7 million for the three months ended December 31, 2023.

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Other Expense, Net

Other expense, net for the three months ended December 31, 2023 decreased by $0.4 million, or 40.0% to $0.7 million, compared to the three months ended December 31, 2022. The decrease in other expense resulted primarily from decreased interest expense during the three months ended December 31, 2023 compared to the three months ended December 31, 2022.

Provision for Income Taxes

Our provision for income taxes for the three months ended December 31, 2023, decreased $7.3 million, or 65.1%, to $3.9 million compared to the three months ended December 31, 2022. The decrease primarily resulted from decreased pre-tax earnings. For the three months ended December 31, 2023 and 2022, our effective tax rate of 27.8% and 23.5%, respectively, exceeded the statutory federal income tax rate of 21% primarily due to the impact of U.S. state taxes. For the three months ended December 31, 2023, this increase in the effective tax rate was also driven by a shortfall expense generated by certain stock-based compensation. For the three months ended December 31, 2022, the increase in the effective tax rate over the statutory federal income tax rate was partially offset by a windfall benefit generated by certain stock-based compensation as well as the benefits from the foreign derived intangible income deduction, the research and development tax credit, and the impact of non-controlling interests in the LLC.

Non-controlling Interest

Non-controlling interest represents the ownership interests of the members of the LLC other than us and the amount recorded as non-controlling interest in our unaudited interim condensed consolidated statements of operations and comprehensive income is computed by multiplying pre-tax income for the applicable period, by the percentage ownership in the LLC not directly attributable to us. For the three months ended December 31, 2023 and 2022, the weighted-average non-controlling interest attributable to ownership interests in the LLC not directly attributable to us was 2.2% and 2.9%, respectively.

Comparison of the Six Months Ended December 31, 2023 to the Six Months Ended December 31, 2022

Net Sales

Net sales for the six months ended December 31, 2023 decreased $174.0 million, or 27.2%, to $466.9 million as compared to the six months ended December 31, 2022. The decrease in net sales was driven primarily by decreased unit volumes across all segments resulting primarily from decreased retail demand and increased dealer flooring program costs across all segments resulting from higher interest rates and increased inventory levels, partially offset by a favorable model mix across all segments and inflation-driven year-over-year price increases. Unit volume for the six months ended December 31, 2023, decreased 1,605 units, or 34.3%, to 3,071 units as compared to the six months ended December 31, 2022. Our unit volume decreased primarily due to lower wholesale shipments across all segments driven by lower retail activity during the period.

Net sales attributable to our Malibu segment decreased $121.9 million, or 40.2%, to $181.4 million for the six months ended December 31, 2023, compared to the six months ended December 31, 2022. Unit volumes attributable to our Malibu segment decreased 1,126 units for the six months ended December 31, 2023, compared to the six months ended December 31, 2022, primarily due to lower wholesale shipments driven by lower retail activity during the period and elevated dealer channel inventory levels. The decrease in net sales was driven by a decrease in units and increased dealer flooring program costs, partially offset by a favorable model mix and inflation-driven year-over-year price increases.

Net sales attributable to our Saltwater Fishing segment decreased $22.5 million, or 11.4%, to $175.4 million, for the six months ended December 31, 2023, compared to the six months ended December 31, 2022. Unit volume decreased 245 units for the six months ended December 31, 2023 compared to the six months ended December 31, 2022. The decrease in net sales was driven by a decrease in units and increased dealer flooring program costs, partially offset by favorable model mix and inflation-driven year-over-year price increases.

Net sales attributable to our Cobalt segment decreased $29.6 million, or 21.2%, to $110.2 million for the six months ended December 31, 2023, compared to the six months ended December 31, 2022. Unit volumes attributable to Cobalt decreased 234 units for the six months ended December 31, 2023 compared to the six months ended December 31, 2022. The decrease in net sales was driven primarily by a decrease in units and increased dealer flooring program costs, partially offset by a favorable model mix and inflation-driven year-over-year price increases.

Overall consolidated net sales per unit increased 10.9% to $152,036 per unit for the six months ended December 31, 2023, compared to the six months ended December 31, 2022. Net sales per unit for our Malibu segment increased 7.6% to $128,648 per unit for the six months ended December 31, 2023, compared to the six months ended December 31, 2022, driven by a favorable model mix and inflation-driven year-over-year price increases, partially offset by increased dealer flooring program costs. Net sales per unit for our Saltwater Fishing segment increased 12.9% to $195,710 per unit for the six months ended

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December 31, 2023 driven by a favorable model mix and inflation-driven year-over-year price increases, partially offset by increased dealer flooring program costs. Net sales per unit for our Cobalt segment increased 2.9% to $143,992 per unit for the six months ended December 31, 2023, compared to the six months ended December 31, 2022, driven by a favorable model mix and inflation-driven year-over-year price increases, partially offset by increased dealer flooring program costs.

Cost of Sales

Cost of sales for the six months ended December 31, 2023 decreased $118.0 million, or 24.1%, to $372.6 million as compared to the six months ended December 31, 2022. The decrease in cost of sales was primarily driven by a 27.2% decrease in net sales due to lower unit volumes, partially offset by higher per unit material and labor costs of $11.3 million, $13.4 million, and $2.0 million for the Malibu, Saltwater Fishing and Cobalt segments, respectively. The increase in per unit material and labor costs was primarily driven by increased prices due to inflationary pressures and a model mix that corresponds to higher cost per unit across all of our segments.

Gross Profit

Gross profit for the six months ended December 31, 2023 decreased $56.0 million, or 37.3%, to $94.3 million compared to the six months ended December 31, 2022. The decrease in gross profit was driven primarily by lower net sales due to lower unit volumes partially offset by the decreased cost of sales for the reasons noted above. Gross margin for the six months ended December 31, 2023 decreased 320 basis points from 23.4% to 20.2% driven by fixed cost deleverage due to lower sales, increased mix of the Saltwater Fishing segment and increased dealer flooring program costs.

Operating Expenses

Selling and marketing expenses remained flat at $11.4 million for the six months ended December 31, 2023 As a percentage of sales, selling and marketing expenses increased 60 basis points to 2.4% for the six months ended December 31, 2023 compared to 1.8% for the six months ended December 31, 2022. General and administrative expenses for the six months ended December 31, 2023 decreased $2.1 million, or 5.6%, to $36.1 million as compared to the six months ended December 31, 2022 driven primarily by a decrease in personnel-related expenses partially offset by increased information technology expenses. As a percentage of sales, general and administrative expenses increased 170 basis points to 7.7% for the six months ended December 31, 2023 compared to 6.0% for the six months ended December 31, 2022. Amortization expense remained flat at $3.4 million for the six months ended December 31, 2023.

Other Expense, Net

Other expense, net for the six months ended December 31, 2023 decreased by $0.9 million, or 37.5% to $1.5 million, compared to the six months ended December 31, 2022. The decrease in other expense resulted primarily from decreased interest expense during the six months ended December 31, 2023 compared to the six months ended December 31, 2022.

Provision for Income Taxes

Our provision for income taxes for the six months ended December 31, 2023, decreased $11.3 million, or 51.0%, to $10.9 million compared to the six months ended December 31, 2022. The decrease primarily resulted from decreased pre-tax earnings. For the six months ended December 31, 2023 and 2022, our effective tax rate of 26.0% and 23.4%, respectively, exceeded the statutory federal income tax rate of 21% primarily due to the impact of U.S. state taxes. For the six months ended December 31, 2023, this increase in the effective tax rate was also driven by a shortfall expense generated by certain stock-based compensation. For the six months ended December 31, 2022, the increase in the effective tax rate over the statutory federal income tax rate was partially offset by a windfall benefit generated by certain stock-based compensation as well as the benefits from the foreign derived intangible income deduction, the research and development tax credit, and the impact of non- controlling interests in the LLC.

Non-controlling Interest

Non-controlling interest represents the ownership interests of the members of the LLC other than us and the amount recorded as non-controlling interest in our unaudited interim condensed consolidated statements of operations and comprehensive income is computed by multiplying pre-tax income for the applicable period, by the percentage ownership in the LLC not directly attributable to us. For the six months ended December 31, 2023 and 2022, the weighted-average non-controlling interest attributable to ownership interests in the LLC not directly attributable to us was 2.2% and 2.9%, respectively.

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GAAP Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures that are used by management as well as by investors, commercial bankers, industry analysts and other users of our financial statements.

We define adjusted EBITDA as net income before interest expense, income taxes, depreciation, amortization and non-cash, non-recurring or non-operating expenses, including certain professional fees and non-cash compensation expense. We define adjusted EBITDA margin as adjusted EBITDA divided by net sales. Adjusted EBITDA and adjusted EBITDA margin are not measures of net income as determined by GAAP. Management believes adjusted EBITDA and adjusted EBITDA margin allow investors to evaluate the Company’s operating performance and compare our results of operations from period to period on a consistent basis by excluding items that management does not believe are indicative of our core operating performance. Management uses adjusted EBITDA to assist in highlighting trends in our operating results without regard to our financing methods, capital structure and non-recurring or non-operating expenses. We exclude the items listed above from net income in arriving at adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures, the methods by which assets were acquired and other factors. Adjusted EBITDA has limitations as an analytical tool and should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our liquidity. Certain items excluded from adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historical costs of depreciable assets. Our presentation of adjusted EBITDA and adjusted EBITDA margin should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of adjusted EBITDA and adjusted EBITDA margin may not be comparable to other similarly titled measures of other companies.

The following table sets forth a reconciliation of net income as determined in accordance with GAAP to adjusted EBITDA and presentation of net income margin and adjusted EBITDA margin for the periods indicated (dollars in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
	2023			2022			2023			2022
Net income	$	10,144		$	36,396		$	30,914		$	72,501
Provision for income taxes	3,906			11,185			10,884			22,208
Interest expense	671			910			1,555			2,195
Depreciation	6,343			5,388			12,667			10,684
Amortization	1,713			1,715			3,428			3,431
Professional fees 1	290			—			1,147			—
Stock-based compensation expense 2	(137)			2,016			1,323			3,651
Adjusted EBITDA	$	22,930		$	57,610		$	61,918		$	114,670
Net Sales	$	211,074		$	338,732		$	466,904		$	640,943
Net Income Margin 3	4.8		%	10.7		%	6.6		%	11.3		%
Adjusted EBITDA Margin 3	10.9		%	17.0		%	13.3		%	17.9		%

(1)	For the three and six months ended December 31, 2023, represents legal and advisory fees related to product liability cases that were settled for $100.0 million in June 2023.
(2)	Represents equity-based incentives awarded to certain of our employees under the Malibu Boats, Inc. Long-Term Incentive Plan and profit interests issued under the previously existing limited liability company agreement of the LLC. See Note 13 to our unaudited interim condensed consolidated financial statements included elsewhere in this Quarterly Report.
(3)	We calculate net income margin as net income divided by net sales and we define adjusted EBITDA margin as adjusted EBITDA divided by net sales.

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Adjusted Fully Distributed Net Income

We define Adjusted Fully Distributed Net Income as net income attributable to Malibu Boats, Inc. (i) excluding income tax expense, (ii) excluding the effect of non-recurring or non-cash items, (iii) assuming the exchange of all LLC Units into shares of Class A Common Stock, which results in the elimination of non-controlling interest in the LLC, and (iv) reflecting an adjustment for income tax expense on fully distributed net income before income taxes at our estimated effective income tax rate. Adjusted Fully Distributed Net Income is a non-GAAP financial measure because it represents net income attributable to Malibu Boats, Inc., before non-recurring or non-cash items and the effects of non-controlling interests in the LLC.

We use Adjusted Fully Distributed Net Income to facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results prepared in accordance with GAAP, provides a more complete understanding of factors and trends affecting our business than GAAP measures alone.

We believe Adjusted Fully Distributed Net Income assists our board of directors, management and investors in comparing our net income on a consistent basis from period to period because it removes non-cash or non-recurring items, and eliminates the variability of non-controlling interest as a result of member owner exchanges of LLC Units into shares of Class A Common Stock.

In addition, because Adjusted Fully Distributed Net Income is susceptible to varying calculations, the Adjusted Fully Distributed Net Income measures, as presented in this Quarterly Report, may differ from and may, therefore, not be comparable to similarly titled measures used by other companies.

The following table shows the reconciliation of the numerator and denominator for net income available to Class A Common Stock per share to Adjusted Fully Distributed Net Income per Share of Class A Common Stock for the periods presented (in thousands except share and per share data):

	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Reconciliation of numerator for net income available to Class A Common Stock per share to Adjusted Fully Distributed Net Income per Share of Class A Common Stock:
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045
Provision for income taxes	3,906		11,185		10,884		22,208
Professional fees 1	290		—		1,147		—
Acquisition related expenses 2	1,677		1,677		3,354		3,354
Stock-based compensation expense 3	(137)		2,016		1,323		3,651
Net income attributable to non-controlling interest 4	263		1,234		774		2,456
Fully distributed net income before income taxes	15,880		51,274		47,622		101,714
Income tax expense on fully distributed income before income taxes 5	3,890		12,441		11,667		24,717
Adjusted fully distributed net income	$	11,990	$	38,833	$	35,955	$	76,997

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	Three Months Ended December 31,		Six Months Ended December 31,
	2023	2022	2023	2022
Reconciliation of denominator for net income available to Class A Common Stock per share to Adjusted Fully Distributed Net Income per Share of Class A Common Stock:
Weighted-average shares outstanding of Class A Common Stock used for basic net income per share:	20,375,750	20,404,583	20,481,119	20,432,216
Adjustments to weighted-average shares of Class A Common Stock:
Weighted-average LLC Units held by non-controlling unit holders 6	455,919	600,919	455,919	600,919
Weighted-average unvested restricted stock awards issued to management 7	259,652	284,830	246,118	269,806
Adjusted weighted-average shares of Class A Common Stock outstanding used in computing Adjusted Fully Distributed Net Income per Share of Class A Common Stock:	21,091,321	21,290,332	21,183,156	21,302,941

The following table shows the reconciliation of net income available to Class A Common Stock per share to Adjusted Fully Distributed Net Income per Share of Class A Common Stock for the periods presented:

	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Net income available to Class A Common Stock per share	$	0.49	$	1.73	$	1.47	$	3.43
Impact of adjustments:
Provision for income taxes	0.19		0.55		0.53		1.09
Professional fees 1	0.02		—		0.06		—
Acquisition related expenses 2	0.08		0.08		0.16		0.16
Stock-based compensation expense 3	(0.01)		0.10		0.06		0.18
Net income attributable to non-controlling interest 4	0.01		0.06		0.03		0.12
Fully distributed net income per share before income taxes	0.78		2.52		2.31		4.98
Impact of income tax expense on fully distributed income before income taxes 5	(0.19)		(0.61)		(0.57)		(1.21)
Impact of increased share count 8	(0.02)		(0.08)		(0.04)		(0.15)
Adjusted Fully Distributed Net Income per Share of Class A Common Stock	$	0.57	$	1.83	$	1.70	$	3.62

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(1)	For the three and six months ended December 31, 2023, represents legal and advisory fees related to product liability cases that were settled for $100.0 million in June 2023.
(2)	For the three and six months ended December 31, 2023 and 2022, represents amortization of intangibles acquired in connection with the acquisitions of Maverick Boat Group, Pursuit and Cobalt.
(3)	Represents equity-based incentives awarded to certain of our employees under the Malibu Boats, Inc. Long-Term Incentive Plan and profit interests issued under the previously existing limited liability company agreement of the LLC. See Note 13 to our unaudited interim condensed consolidated financial statements included elsewhere in this Quarterly Report.
(4)	Reflects the elimination of the non-controlling interest in the LLC as if all LLC members had fully exchanged their LLC Units for shares of Class A Common Stock.
(5)	Reflects income tax expense at an estimated normalized annual effective income tax rate of 24.5% and 24.3% of income before income taxes for the three and six months ended December 31, 2023 and 2022, respectively, assuming the conversion of all LLC Units into shares of Class A Common Stock. The estimated normalized annual effective income tax rate for fiscal year 2024 is based on the federal statutory rate plus a blended state rate adjusted for the research and development tax credit, the foreign derived intangible income deduction, and foreign income taxes attributable to our Australian subsidiary.
(6)	Represents the weighted-average shares outstanding of LLC Units held by non-controlling interests assuming they were exchanged into Class A Common Stock on a one-for-one basis.
(7)	Represents the weighted-average unvested restricted stock awards included in outstanding shares during the applicable period that were convertible into Class A Common Stock and granted to members of management.
(8)	Reflects impact of increased share counts assuming the exchange of all weighted-average shares outstanding of LLC Units into shares of Class A Common Stock and the conversion of all weighted-average unvested restricted stock awards included in outstanding shares granted to members of management.

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Liquidity and Capital Resources

Overview and Primary Sources of Cash

Our primary uses of cash have been for funding working capital and capital investments, repayments under our debt arrangements, acquisitions, cash distributions to members of the LLC, cash payments under our tax receivable agreement and stock repurchases under our stock repurchase program. For both the short term and the long term, our sources of cash to meet these needs have primarily been operating cash flows, borrowings under our revolving credit facility and short and long-term debt financings from banks and financial institutions. We believe that our cash on hand, cash generated by operating activities and funds available under our revolving credit facility will be sufficient to finance our operating activities for at least the next twelve months and beyond. In the first quarter of fiscal year 2024, we had a one-time payment of $100.0 million with respect to a settlement agreement entered in connection with the settlement of all Batchelder-related product liability matters. We borrowed $75.0 million under the revolving credit facility to fund a portion of that payment and, subsequently, repaid $10.0 million and $30.0 million under the revolving credit facility during the first quarter and second quarter, respectively, of fiscal year 2024. See Note 15 to our unaudited interim condensed consolidated financial statements for more information about the settlement of the product liability matters.

Material Cash Requirements

Capital Expenditures. For fiscal year 2023, we incurred approximately $54.8 million in capital expenditures related to the completion of our Tooling Design Center as well as new models, capacity enhancements and vertical integration initiatives. We expect capital expenditures between $70.0 million and $80.0 million for fiscal year 2024, (of which we have incurred approximately $53.0 million through the first half of fiscal year 2024), primarily for the outfitting of our Roane County property and investments in new models, capacity enhancements and vertical integration initiatives. Other investment opportunities, such as potential strategic acquisitions, may require additional funding.

Roane County Property Purchase and Related Improvements. On March 28, 2023, we entered into a Purchase and Sale Agreement (the “Purchase Agreement”) to purchase certain real property, improvements and other assets from the seller for a cash purchase price of approximately $33.3 million. On July 25, 2023, the transaction closed and we paid the $25.5 million balance of the purchase price. In addition to the purchase price, we have incurred approximately $11.5 million of capital expenditures through December 31, 2023 to update the facility to meet our operational needs and expect to incur additional capital expenditures of approximately $7.9 million with respect to the facility.

Principal and Interest Payments. On July 8, 2022, we entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement provides us with a revolving credit facility in an aggregate principal amount of up to $350.0 million. As of December 31, 2023, we had $35.0 million outstanding under our revolving credit facility and $1.6 million in outstanding letters of credit, with $313.4 million available for borrowing. The revolving credit facility matures on July 8, 2027. Assuming no additional repayments or borrowings on our revolving credit facility after December 31, 2023, our interest payments would be approximately $2.3 million within the next 12 months based on the interest rate at December 31, 2023 of 6.41%. See below under “Revolving Credit Facility” for additional information regarding our revolving credit facility, including the interest rate applicable to any borrowing under such facility.

Tax Receivable Agreement. We entered into a tax receivable agreement with our pre-IPO owners at the time of our initial public offering. Under the tax receivables agreement, we pay the pre-IPO owners (or any permitted assignees) 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize, or in some circumstances are deemed to realize, as a result of an expected increase in our share of tax basis in LLC’s tangible and intangible assets, including increases attributable to payments made under the tax receivable agreement. These obligations will not be paid if we do not realize cash tax savings. We estimate that approximately $4.1 million will be due under the tax receivable agreement within the next 12 months. In accordance with the tax receivable agreement, the next payment is anticipated to occur approximately 75 days after filing the federal tax return which is due on April 15, 2024.

Operating Lease Obligations. Lease commitments consist principally of leases for our manufacturing facilities. Our expected operating lease payments due within the next 12 months are $2.6 million and our total committed lease payments are $9.7 million as of December 31, 2023. Additional information regarding our operating leases is available in Note 10 of our unaudited interim condensed consolidated financial statements included elsewhere in this Quarterly Report.

Purchase Obligations. In the ordinary course of business, we enter into purchase orders from a variety of suppliers, primarily for raw materials, in order to manage our various operating needs. The orders are expected to be purchased throughout fiscal year 2024 and 2025. We or the vendor can generally terminate the purchase orders at any time. These purchase orders do not contain any termination payments or other penalties if cancelled. As of December 31, 2023, we had purchase orders in the amount of $68.0 million due within the next 12 months.

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Stock Repurchase Program.Our Board of Directors authorized a stock repurchase program (the"2022 Repurchase Program") to allow for the repurchase of up to $100.0 million of our Class A Common Stock and the LLC's LLC Units for the period from November 8, 2022 to November 8, 2023. Between July 1, 2023 and November 8, 2023, we repurchased 261,962 shares of Class A Common Stock for $12.4 million in cash including related fees and expenses under the 2022 Repurchase Program which expired on November 8, 2023. On October 26, 2023, our Board of Directors authorized a new stock repurchase program (the"2023 Repurchase Program") to allow for the repurchase of up to $100.0 million of our Class A Common Stock and the LLC's LLC Units for the period from November 8, 2023 to November 8, 2024. Between November 8, 2023 and December 31, 2023, we repurchased 163,445 shares of Class A Common Stock for $7.3 million in cash including related fees and expenses under the 2023 Repurchase Program. As of December 31, 2023, $92.9 million remained available under the 2023 Repurchase Program. We may repurchase shares of our common stock at any time or from time to time, without prior notice, subject to market conditions and other considerations. We have no obligation to repurchase any shares of our common stock under the share repurchase program. We intend to fund stock repurchases from cash on hand.

Our future capital requirements beyond the next 12 months will depend on many factors, including the general economic environment in which we operate and our ability to generate cash flow from operations, which are more uncertain as a result of inflation, increasing interest rates, increasing fuel prices. Our liquidity needs during this uncertain time will depend on multiple factors, including our ability to continue operations and production of boats, the performance of our dealers and suppliers, the impact of the general economy on our dealers, suppliers and retail customers, the availability of sufficient amounts of financing, and our operating performance.

The following table summarizes the cash flows from operating, investing and financing activities (dollars in thousands):

	Six Months Ended December 31,
	2023		2022
Total cash provided by (used in):
Operating activities	$	15,709	$	50,812
Investing activities	(52,087)		(22,339)
Financing activities	13,150		(62,262)
Impact of currency exchange rates on cash balances	13		(107)
(Decrease) in cash	$	(23,215)	$	(33,896)

Operating Activities

Net cash provided by operating activities was $15.7 million for the six months ended December 31, 2023, compared to net cash provided by operating activities of $50.8 million for the six months ended December 31, 2022, a change of $35.1 million. The decrease in cash provided by operating activities resulted from a decrease of $34.1 million in net income (after consideration of non-cash items included in net income, primarily related to depreciation, amortization, deferred tax assets and non-cash compensation) coupled with net decrease in operating assets and liabilities of $1.0 million related to a one-time payment of $100.0 million with respect to a settlement agreement entered in connection with all Batchelder-related product liability matters as well as the timing of collections of accounts receivables, payments for accruals and payables, and purchases of inventory.

Investing Activities

Net cash used in investing activities was $52.1 million for the six months ended December 31, 2023, and $22.3 million for the six months ended December 31, 2022. Net cash used for investing activities for the six months ended December 31, 2023 was primarily related to increased capital expenditures compared to the six months ended December 31, 2022.

Financing Activities

Net cash provided by financing activities was $13.2 million for the six months ended December 31, 2023, compared to net cash used in financing activities of $62.3 million for the six months ended December 31, 2022, a change of $75.4 million. During the six months ended December 31, 2023, we borrowed $35.0 million, net of repayments, under our revolving credit facility and repurchased $19.7 million of our Class A Common Stock under our current stock repurchase program. We also paid $1.2 million on taxes for shares withheld upon the vesting of restricted stock awards and paid $0.9 million in distributions to LLC Unit holders. During the six months ended December 31, 2022, we repaid $23.1 million on our term loans, repaid $167.0 million, net of borrowings, under our revolving credit facility and repurchased $7.9 million of our Class A Common Stock

36

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under our prior stock repurchase program. We also paid $2.9 million on taxes for shares withheld upon the vesting of restricted stock awards, paid $1.7 million in distributions to LLC Unit holders and paid $1.4 million in deferred financing costs.

Revolving Credit Facility

On July 8, 2022, Boats LLC entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) which provides Boats LLC with a revolving credit facility in an aggregate principal amount of up to $350.0 million. As of December 31, 2023 the Company had $35.0 million outstanding under its revolving credit facility and $1.6 million in outstanding letters of credit, with $313.4 million available for borrowing. The revolving credit facility matures on July 8, 2027. Boats LLC has the option to request that lenders increase the amount available under the revolving credit facility by, or obtain incremental term loans of, up to $200.0 million, subject to the terms of the Credit Agreement and only if existing or new lenders choose to provide additional term or revolving commitments.

Our indirect subsidiary, Malibu Boats, LLC is the borrower under the Credit Agreement and its obligations are guaranteed by the LLC and, subject to certain exceptions, the present and future domestic subsidiaries of Malibu Boats, LLC, and all such obligations are secured by substantially all of the assets of the LLC, Malibu Boats, LLC and such subsidiary guarantors. Malibu Boats, Inc. is not a party to the Credit Agreement.

All borrowings under the Credit Agreement bear interest at a rate equal to either, at our option, (i) the highest of the prime rate, the Federal Funds Rate plus 0.5%, or one-month Term SOFR plus 1% (the “Base Rate”) or (ii) SOFR, in each case plus an applicable margin ranging from 1.25% to 2.00% with respect to SOFR borrowings and 0.25% to 1.00% with respect to Base Rate borrowings. The applicable margin will be based upon the consolidated leverage ratio of the LLC and its subsidiaries. We are required to pay a commitment fee for the unused portion of the revolving credit facility, which will range from 0.15% to 0.30% per annum, depending on the LLC’s and its subsidiaries’ consolidated leverage ratio.

The Credit Agreement contains certain customary representations and warranties, and notice requirements for the occurrence of specific events such as the occurrence of any event of default or pending or threatened litigation. The Credit Agreement also requires compliance with certain customary financial covenants consisting of a minimum ratio of EBITDA to interest expense and a maximum ratio of total debt to EBITDA. The Credit Agreement contains restrictive covenants regarding indebtedness, liens, fundamental changes, investments, share repurchases, dividends and distributions, disposition of assets, transactions with affiliates, negative pledges, hedging transactions, certain prepayments of indebtedness, accounting changes and governmental regulation.

The Credit Agreement also contains customary events of default. If an event of default has occurred and continues beyond any applicable cure period, the administrative agent may (i) accelerate all outstanding obligations under the Credit Agreement or (ii) terminate the commitments, amongst other remedies. Additionally, the lenders are not obligated to fund any new borrowing under the Credit Agreement while an event of default is continuing.

Repurchase Commitments

Our dealers have arrangements with certain finance companies to provide secured floor plan financing for the purchase of our boats. These arrangements indirectly provide liquidity to us by financing dealer purchases of our products, thereby minimizing the use of our working capital in the form of accounts receivable. A majority of our sales are financed under similar arrangements, pursuant to which we receive payment within a few days of shipment of the product. We have agreed to repurchase products repossessed by the finance companies if a dealer defaults on its debt obligations to a finance company and the boat is returned to us, subject to certain limitations. Our financial exposure under these agreements is limited to the difference between the amounts unpaid by the dealer with respect to the repossessed product plus costs of repossession and the amount received on the resale of the repossessed product. During the six months ended December 31, 2023 and 2022, we did not repurchase any boats under our repurchase agreements. An adverse change in retail sales could require us to repurchase repossessed units upon an event of default by any of our dealers, subject to the annual limitation.

Critical Accounting Policies

As of December 31, 2023, there were no significant changes in the application of our critical accounting policies or estimation procedures from those presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Refer to our Annual Report on Form 10-K for the year ended June 30, 2023, for a complete discussion on the Company’s market risk. There have been no material changes in market risk from those disclosed in the Company's Form 10-K for the year ended June 30, 2023.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

As of the end of the period covered by this Quarterly Report, we carried out an evaluation under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures. Based upon this evaluation, our chief executive officer and chief financial officer have concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of December 31, 2023.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II - Other Information

Item 1. Legal Proceedings

The discussion of legal matters under the section entitled "Legal Proceedings" is incorporated by reference from Note 15 of our unaudited interim condensed consolidated financial statements included elsewhere in this Quarterly Report.

Item 1A. Risk Factors

During the quarter ended December 31, 2023, there were no material changes to the risk factors discussed in Part I, Item 1A. "Risk Factors” of our Annual Report on Form 10-K for the year ended June 30, 2023.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Unregistered Sales of Equity Securities

None.

Repurchase of Class A Common Stock

This table provides information with respect to purchases by us of shares of our Class A Common Stock under our stock repurchase programs during the quarter ended December 31, 2023 (in thousands except share and per share data).

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan (1)
October 1, 2023 through October 31, 2023	—	$	—	—	$	—
November 1, 2023 through November 8, 2023	62,686	44.40		261,962	—
November 9, 2023 through November 30, 2023	160,935	43.72		160,935	92,964
December 1, 2023 through December 31, 2023	2,510	44.23		163,445	92,853
Total	226,131	$	44.23	163,445	$	92,853

(1) On November 3, 2022, our Board of Directors authorized a stock repurchase program (the "2022 Repurchase Program") to allow for the repurchase of up to $100.0 million of our Class A Common Stock and the LLC's LLC Units for the period from November 8, 2022 to November 8, 2023. Upon repurchase, the shares were classified as treasury stock and then subsequently retired. In accordance with the terms of the LLC’s limited liability company agreement, an equal number of LLC Units were also canceled. During the three months ended December 31, 2023, we repurchased 62,686 shares of Class A Common Stock for $2.8 million in cash under the 2022 Repurchase Program which expired on November 8, 2023. On October 26, 2023, our Board of Directors authorized a new stock repurchase program (the "2023 Repurchase Program") to allow for the repurchase of up to $100.0 million of our Class A Common Stock and the LLC's LLC Units for the period from November 8, 2023 to November 8, 2024. During the three months ended December 31, 2023, we repurchased 163,445 shares of Class A Common Stock for $7.3 million in cash under the 2023 Repurchase Program. Our share repurchase programs do not obligate us to repurchase a minimum amount of shares. Under the programs, shares of Class A Common Stock may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

Exhibit No.	Description
3.1	Certificate of Incorporation of Malibu Boats, Inc. 1
3.2	Amended and Restated Bylaws of Malibu Boats, Inc. 2
3.3	Certificate of Formation of Malibu Boats Holdings, LLC 1
3.4	First Amended and Restated Limited Liability Company Agreement of Malibu Boats Holdings, LLC, dated as of February 5, 2014 3
3.4.1	First Amendment, dated as of February 5, 2014, to First Amended and Restated Limited Liability Company Agreement of Malibu Boats Holdings, LLC 4
3.4.2	Second Amendment, dated as of June 27, 2014, to First Amended and Restated Limited Liability Company Agreement of Malibu Boats Holdings, LLC 5
4.1	Description of Class A Common Stock
4.2	Form of Class A Common Stock Certificate 1
4.3	Form of Class B Common Stock Certificate 1
4.4	Exchange Agreement, dated as of February 5, 2014, by and among Malibu Boats, Inc. and Affiliates of Black Canyon Capital LLC and Horizon Holdings, LLC 3
4.5	Exchange Agreement, dated as of February 5, 2014, by and among Malibu Boats, Inc. and the Members of Malibu Boats Holdings, LLC 3
4.6	Tax Receivable Agreement, dated as of February 5, 2014, by and among Malibu Boats, Inc., Malibu Boats Holdings, LLC and the Other Members of Malibu Boats Holdings, LLC 3
10.1	Employment Agreement dated November 7, 2023, between Bruce Beckman and Malibu Boats, Inc.6
31.1	Certificate of the Chief Executive Officer of Malibu Boats, Inc. pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certificate of the Chief Financial Officer of Malibu Boats, Inc. pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of the Chief Executive Officer and Chief Financial Officer of Malibu Boats, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 were formatted in Inline XBRL: (i) Condensed Consolidated Statements of Operations and Comprehensive Income, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2023, formatted in Inline XBRL (Included as Exhibit 101).

(1)    Filed as an exhibit to Amendment No. 1 to the Company’s registration statement on Form S-1 (Registration No. 333-192862) filed on January 8, 2014.

(2)    Filed as an exhibit to the Company's Quarterly Report on Form 10-Q (File No. 001-36290) filed on February 7, 2023.

(3)    Filed as an exhibit to the Company’s Current Report on Form 8-K (File No. 001-36290) filed on February 6, 2014.

(4)    Filed as an exhibit to the Company's Quarterly Report on Form 10-Q/A (File No. 001-36290) filed on May 13, 2014.

(5)    Filed as an exhibit to the Company's Current Report on Form 8-K (File No. 001-36290) filed on June 27, 2014.

(6)    Filed as an exhibit to the Company's Current Report on Form 8-K (File No. 001-36290) filed on November 8, 2023.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

January 30, 2024	MALIBU BOATS, INC.
	By:	/s/ Jack Springer
		Jack Springer, Chief Executive Officer
		(Principal Executive Officer)
	By:	/s/ Bruce Beckman
		Bruce Beckman, Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

41

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jack Springer, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2023 of Malibu Boats, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: January 30, 2024

/s/ Jack Springer

Jack Springer

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Bruce Beckman, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2023 of Malibu Boats, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: January 30, 2024

/s/ Bruce Beckman

Bruce Beckman

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350), Jack Springer, Chief Executive Officer of Malibu Boats, Inc. (the “Company”), and Bruce Beckman, Chief Financial Officer of the Company, each hereby certifies that, to the best of his knowledge:

(1)	The Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2023, to which this Certification is attached as Exhibit 32.1 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act, and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

In Witness Whereof, the undersigned have set their hands hereto as of the 30th day of January, 2024.

/s/ Bruce Beckman	/s/ Jack D. Springer
Bruce Beckman	Jack D. Springer
Chief Financial Officer	Chief Executive Officer

This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Malibu Boats, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

XML

Cover Page - shares	6 Months Ended
	Dec. 31, 2023	Jan. 25, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	001-36290
Entity Registrant Name	MALIBU BOATS, INC.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	5075 Kimberly Way
Entity Address, City or Town	Loudon
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37774
Entity Tax Identification Number	46-4024640
City Area Code	865
Local Phone Number	458-5478
Title of 12(b) Security	Class A Common Stock, par value $0.01
Trading Symbol	MBUU
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001590976
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--06-30
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		20,430,767
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		12

XML

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net sales	$ 211,074	$ 338,732	$ 466,904	$ 640,943
Cost of sales	173,599	263,078	372,635	490,684
Gross profit	37,475	75,654	94,269	150,259
Operating expenses:
Selling and marketing	5,610	6,198	11,362	11,384
General and administrative	15,440	19,057	36,145	38,277
Amortization	1,713	1,715	3,428	3,431
Operating income	14,712	48,684	43,334	97,167
Other expense, net:
Other (income) expense, net	(9)	193	(19)	263
Interest expense	671	910	1,555	2,195
Other expense, net	662	1,103	1,536	2,458
Income before provision for income taxes	14,050	47,581	41,798	94,709
Provision for income taxes	3,906	11,185	10,884	22,208
Net income	10,144	36,396	30,914	72,501
Net income attributable to non-controlling interest	263	1,234	774	2,456
Net income attributable to Malibu Boats, Inc.	9,881	35,162	30,140	70,045
Comprehensive income:
Net income	10,144	36,396	30,914	72,501
Other comprehensive income (loss):
Change in cumulative translation adjustment	1,427	1,227	676	(209)
Other comprehensive income (loss)	1,427	1,227	676	(209)
Comprehensive income	11,571	37,623	31,590	72,292
Less: comprehensive income attributable to non-controlling interest	300	1,276	793	2,449
Comprehensive income attributable to Malibu Boats, Inc.	$ 11,271	$ 36,347	$ 30,797	$ 69,843
Weighted-average shares outstanding used in computing net income per share:
Basic (in shares)	20,375,750	20,404,583	20,481,119	20,432,216
Diluted (in shares)	20,450,204	20,516,025	20,567,218	20,559,752
Net income available to Class A Common Stock per share:
Basic (in dollars per share)	$ 0.49	$ 1.73	$ 1.47	$ 3.43
Diluted (in dollars per share)	$ 0.49	$ 1.72	$ 1.47	$ 3.41

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Current assets
Cash	$ 55,722	$ 78,937
Trade receivables, net	27,493	68,381
Inventories, net	157,766	171,189
Prepaid expenses and other current assets	11,968	7,827
Total current assets	252,949	326,334
Property, plant and equipment, net	245,131	204,792
Goodwill	100,733	100,577
Other intangible assets, net	218,049	221,458
Deferred tax assets	54,045	62,573
Other assets	9,089	10,190
Total assets	879,996	925,924
Current liabilities
Accounts payable	27,967	40,402
Accrued expenses	106,716	187,078
Income taxes and tax distribution payable	74	847
Payable pursuant to tax receivable agreement, current portion	4,111	4,111
Total current liabilities	138,868	232,438
Deferred tax liabilities	29,123	28,453
Other liabilities	8,989	9,926
Payable pursuant to tax receivable agreement, less current portion	39,354	39,354
Long-term debt	35,000	0
Total liabilities	251,334	310,171
Commitments and contingencies (See Note 15)
Stockholders' Equity
Preferred Stock, par value $0.01 per share; 25,000,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and June 30, 2023	0	0
Additional paid in capital	67,745	86,321
Accumulated other comprehensive loss	(3,664)	(4,340)
Accumulated earnings	555,837	525,697
Total stockholders' equity attributable to Malibu Boats, Inc.	620,119	607,882
Non-controlling interest	8,543	7,871
Total stockholders’ equity	628,662	615,753
Total liabilities and stockholders' equity	879,996	925,924
Class A Common Stock
Stockholders' Equity
Common stock	201	204
Class B Common Stock
Stockholders' Equity
Common stock	$ 0	$ 0

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2023	Jun. 30, 2023
Common stock, shares issued (in shares)		12
Common stock, shares outstanding (in shares)		12
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	20,298,626	20,603,822
Common stock, shares outstanding (in shares)	20,298,626	20,603,822
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	12
Common stock, shares outstanding (in shares)	12

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive Loss	Accumulated Earnings	Non-controlling Interest in LLC
Beginning balance (in shares) at Jun. 30, 2022				20,501,000	10
Beginning balance at Jun. 30, 2022	$ 513,568			$ 203	$ 0	$ 85,294	$ (3,507)	$ 421,184	$ 10,394
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,105							34,883	1,222
Stock based compensation, net of withholding taxes on vested equity awards (in shares)				12,000
Stock based compensation, net of withholding taxes on vested equity awards	743					743
Issuances of equity for services	67					67
Repurchase and retirement of common stock (in shares)				(144,000)
Repurchase and retirement of common stock	(7,868)			$ (1)		(7,867)
Distributions to LLC Unit holders	(696)								(696)
Foreign currency translation adjustment	(1,479)						(1,436)		(43)
Ending balance (in shares) at Sep. 30, 2022				20,345,000	10
Ending balance at Sep. 30, 2022	540,440			$ 202	$ 0	78,237	(4,943)	456,067	10,877
Beginning balance (in shares) at Jun. 30, 2022				20,501,000	10
Beginning balance at Jun. 30, 2022	513,568			$ 203	$ 0	85,294	(3,507)	421,184	10,394
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	72,501
Ending balance (in shares) at Dec. 31, 2022				20,475,000	10
Ending balance at Dec. 31, 2022	578,382			$ 203	$ 0	79,207	(3,716)	491,229	11,459
Beginning balance (in shares) at Sep. 30, 2022				20,345,000	10
Beginning balance at Sep. 30, 2022	540,440			$ 202	$ 0	78,237	(4,943)	456,067	10,877
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,396							35,162	1,234
Stock based compensation, net of withholding taxes on vested equity awards (in shares)				128,000
Stock based compensation, net of withholding taxes on vested equity awards	23			$ 1		22
Issuance of equity for services (in shares)				2,000
Issuances of equity for services	948					948
Distributions to LLC Unit holders	(688)								(688)
Foreign currency translation adjustment	1,263						1,227		36
Ending balance (in shares) at Dec. 31, 2022				20,475,000	10
Ending balance at Dec. 31, 2022	$ 578,382			$ 203	$ 0	79,207	(3,716)	491,229	11,459
Beginning balance (in shares) at Jun. 30, 2023	12	20,603,822		20,603,000	12
Beginning balance at Jun. 30, 2023	$ 615,753			$ 204	$ 0	86,321	(4,340)	525,697	7,871
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,770							20,259	511
Stock based compensation, net of withholding taxes on vested equity awards	1,443					1,443
Issuances of equity for services	47					47
Repurchase and retirement of common stock (in shares)				(199,000)
Repurchase and retirement of common stock	(9,619)			$ (2)		(9,617)
Distributions to LLC Unit holders	(114)								(114)
Foreign currency translation adjustment	(768)						(751)		(17)
Ending balance (in shares) at Sep. 30, 2023				20,404,000	12
Ending balance at Sep. 30, 2023	$ 627,512			$ 202	$ 0	78,194	(5,091)	545,956	8,251
Beginning balance (in shares) at Jun. 30, 2023	12	20,603,822		20,603,000	12
Beginning balance at Jun. 30, 2023	$ 615,753			$ 204	$ 0	86,321	(4,340)	525,697	7,871
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	30,914
Ending balance (in shares) at Dec. 31, 2023		20,298,626	12	20,299,000	12
Ending balance at Dec. 31, 2023	628,662			$ 201	$ 0	67,745	(3,664)	555,837	8,543
Beginning balance (in shares) at Sep. 30, 2023				20,404,000	12
Beginning balance at Sep. 30, 2023	627,512			$ 202	$ 0	78,194	(5,091)	545,956	8,251
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,144							9,881	263
Stock based compensation, net of withholding taxes on vested equity awards (in shares)				109,000
Stock based compensation, net of withholding taxes on vested equity awards	(1,363)			$ 1		(1,364)
Issuance of equity for services (in shares)				12,000
Issuances of equity for services	1,037					1,037
Repurchase and retirement of common stock (in shares)				(226,000)
Repurchase and retirement of common stock	(10,124)			$ (2)		(10,122)
Foreign currency translation adjustment	1,456						1,427		29
Ending balance (in shares) at Dec. 31, 2023		20,298,626	12	20,299,000	12
Ending balance at Dec. 31, 2023	$ 628,662			$ 201	$ 0	$ 67,745	$ (3,664)	$ 555,837	$ 8,543

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating activities:
Net income	$ 30,914	$ 72,501
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash compensation expense	1,323	3,651
Non-cash compensation to directors	1,419	579
Depreciation	12,667	10,684
Amortization	3,428	3,431
Deferred income taxes	9,205	2,556
Other items, net	1,100	792
Change in operating assets and liabilities:
Trade receivables	40,922	(3,846)
Inventories	13,776	(28,569)
Prepaid expenses and other assets	(4,483)	(4,287)
Accounts payable	(13,315)	(4,151)
Income taxes payable	24	501
Accrued expenses	(80,308)	(1,924)
Other liabilities	(963)	(1,106)
Net cash provided by operating activities	15,709	50,812
Investing activities:
Purchases of property, plant and equipment	(52,101)	(22,339)
Proceeds from sale or disposal of property, plant and equipment	14	0
Net cash used in investing activities	(52,087)	(22,339)
Financing activities:
Proceeds from revolving credit facility	75,000	141,700
Principal payments on long-term borrowings	0	(23,125)
Payments on revolving credit facility	(40,000)	(167,000)
Payment of deferred financing costs	0	(1,362)
Cash paid for withholding taxes on vested restricted stock	(1,217)	(2,866)
Distributions to LLC Unit holders	(890)	(1,741)
Repurchase and retirement of common stock	(19,743)	(7,868)
Net cash provided by (used in) financing activities	13,150	(62,262)
Effect of exchange rate changes on cash	13	(107)
Changes in cash	(23,215)	(33,896)
Cash—Beginning of period	78,937	83,744
Cash—End of period	55,722	49,848
Supplemental cash flow information:
Cash paid for interest	1,637	1,219
Cash paid for income taxes	$ 1,955	$ 20,168

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Organization, Basis of Presentation, and Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Basis of Presentation, and Summary of Significant Accounting Policies

Organization, Basis of Presentation, and Summary of Significant Accounting Policies

Organization

Malibu Boats, Inc. (“MBI” and, together with its subsidiaries, the “Company” or "Malibu"), a Delaware corporation formed on November 1, 2013, is the sole managing member of Malibu Boats Holdings, LLC, a Delaware limited liability company (the "LLC"). The Company operates and controls all of the LLC's business and affairs and, therefore, pursuant to Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) Topic 810, Consolidation, consolidates the financial results of the LLC and its subsidiaries, and records a non-controlling interest for the economic interest in the Company held by the non-controlling holders of units in the LLC ("LLC Units"). The LLC was formed in 2006. The LLC, through its wholly owned subsidiary, Malibu Boats, LLC, (“Boats LLC”), is engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, recreational powerboats that are sold through a world-wide network of independent dealers. The Company sells its boats under eight brands -- Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes and Cobalt brands. The Company reports its results of operations under three reportable segments -- Malibu, Saltwater Fishing and Cobalt.

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim condensed financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with GAAP for complete financial statements. Such statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Malibu and subsidiaries for the year ended June 30, 2023, included in the Company's Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Units and shares are presented as whole numbers while all dollar amounts are presented in thousands, unless otherwise noted.

Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements include the operations and accounts of the Company and all subsidiaries thereof. All intercompany balances and transactions have been eliminated upon consolidation.

Recent Accounting Pronouncements

In November, 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures" which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant expenses. The updated standard is effective for annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.

In December, 2023, the FASB issued ASU No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires two primary enhancements of 1) disaggregated information on a reporting entity’s effective tax rate reconciliation, and 2) information on income taxes paid. For public business entities, the new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.

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Revenue Recognition

6 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following tables disaggregate the Company's revenue by major product type and geography:

	Three Months Ended December 31, 2023								Six Months Ended December 31, 2023
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Consolidated
Revenue by product:
Boat and trailer sales	$	74,272	$	82,480	$	51,391	$	208,143	$	173,711	$	174,732	$	108,495	$	456,938
Part and other sales	2,117		254		560		2,931		7,683		624		1,659		9,966
Net Sales	$	76,389	$	82,734	$	51,951	$	211,074	$	181,394	$	175,356	$	110,154	$	466,904
Revenue by geography:
North America	$	69,123	$	78,329	$	51,636	$	199,088	$	166,178	$	170,195	$	109,092	$	445,465
International	7,266		4,405		315		11,986		15,216		5,161		1,062		21,439
Net Sales	$	76,389	$	82,734	$	51,951	$	211,074	$	181,394	$	175,356	$	110,154	$	466,904

	Three Months Ended December 31, 2022								Six Months Ended December 31, 2022
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Consolidated
Revenue by product:
Boat and trailer sales	$	155,011	$	105,363	$	73,830	$	334,204	$	295,174	$	197,256	$	137,460	$	629,890
Part and other sales	3,155		222		1,151		4,528		8,160		562		2,331		11,053
Net Sales	$	158,166	$	105,585	$	74,981	$	338,732	$	303,334	$	197,818	$	139,791	$	640,943
Revenue by geography:
North America	$	140,924	$	104,154	$	71,986	$	317,064	$	271,574	$	193,095	$	134,267	$	598,936
International	17,242		1,431		2,995		21,668		31,760		4,723		5,524		42,007
Net Sales	$	158,166	$	105,585	$	74,981	$	338,732	$	303,334	$	197,818	$	139,791	$	640,943

Boat and Trailer Sales

Consists of sales of boats and trailers to the Company's dealer network, net of sales returns, discounts, rebates and free flooring incentives. Boat and trailer sales also includes optional boat features. Sales returns consist of boats returned by dealers under the Company's warranty program. Rebates, free flooring and discounts are incentives that the Company provides to its dealers based on sales of eligible products.

Part and Other Sales

Consists primarily of parts and accessories sales, royalty income and clothing sales. Parts and accessories sales include replacement and aftermarket boat parts and accessories sold to the Company's dealer network. Royalty income is earned from license agreements with various boat manufacturers, including Nautique, Chaparral, Mastercraft, and Tige related to the use of the Company's intellectual property.

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Non-controlling Interest

6 Months Ended

Dec. 31, 2023

Noncontrolling Interest [Abstract]

Non-controlling Interest

Non-controlling Interest

The non-controlling interest on the unaudited interim condensed consolidated statements of operations and comprehensive income represents the portion of earnings attributable to the economic interest in the Company's subsidiary, the LLC, held by the non-controlling LLC Unit holders. Non-controlling interest on the unaudited interim condensed consolidated balance sheets represents the portion of net assets of the Company attributable to the non-controlling LLC Unit holders, based on the portion

of the LLC Units owned by such Unit holders. The ownership of the LLC is summarized as follows:

	As of December 31, 2023			As of June 30, 2023
	Units	Ownership %		Units	Ownership %
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC	455,919	2.2	%	455,919	2.2	%
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC	20,298,626	97.8	%	20,603,822	97.8	%
	20,754,545	100.0	%	21,059,741	100.0	%

Issuance of Additional LLC Units

Under the first amended and restated limited liability company agreement of the LLC, as amended (the "LLC Agreement"), the Company is required to cause the LLC to issue additional LLC Units to the Company when the Company issues additional shares of Class A Common Stock. Other than in connection with the issuance of Class A Common Stock in connection with an equity incentive program, the Company must contribute to the LLC net proceeds and property, if any, received by the Company with respect to the issuance of such additional shares of Class A Common Stock. The Company must cause the LLC to issue a number of LLC Units equal to the number of shares of Class A Common Stock issued such that, at all times, the number of LLC Units held by the Company equals the number of outstanding shares of Class A Common Stock. During the six months ended December 31, 2023, the Company caused the LLC to issue a total of 158,228 LLC Units to the Company in connection with (i) the Company's issuance of Class A Common Stock to non-employee directors for their services, (ii) the issuance of Class A Common Stock for the vesting of awards granted under the Malibu Boats, Inc. Long-Term Incentive Plan (the "Incentive Plan") and (iii) the issuance of restricted Class A Common Stock granted under the Incentive Plan. During the six months ended December 31, 2023, 17,804 LLC Units were canceled in connection with the vesting of share-based equity awards to satisfy employee tax withholding requirements, 20,080 LLC Units were canceled in connection with the vesting of stock awards with a market condition that was deemed to not be achieved and the retirement of 38,017 treasury shares in accordance with the LLC Agreement. Also during the six months ended December 31, 2023, 425,407 LLC Units were redeemed and canceled by the LLC in connection with the purchase and retirement of 425,407 treasury shares under the Company's stock repurchase program that expired on November 8, 2023, and the Company’s new stock repurchase program that was authorized for the period from November 8, 2023 to November 8, 2024.

Distributions and Other Payments to Non-controlling Unit Holders

Distributions for Taxes

As a limited liability company (treated as a partnership for income tax purposes), the LLC does not incur significant federal, state or local income taxes, as these taxes are primarily the obligations of its members. As authorized by the LLC Agreement, the LLC is required to distribute cash, to the extent that the LLC has cash available, on a pro rata basis, to its members to the extent necessary to cover the members’ tax liabilities, if any, with respect to their share of LLC earnings. The LLC makes such tax distributions to its members based on an estimated tax rate and projections of taxable income. If the actual taxable income of the LLC multiplied by the estimated tax rate exceeds the tax distributions made in a calendar year, the LLC may make true-up distributions to its members, if cash or borrowings are available for such purposes. As of December 31, 2023 and June 30, 2023, tax distributions payable to non-controlling LLC Unit holders were $0 and $776, respectively. During the six months ended December 31, 2023 and 2022, tax distributions paid to the non-controlling LLC Unit holders were $890 and $1,741, respectively.

Other Distributions

Pursuant to the LLC Agreement, the Company has the right to determine when distributions will be made to LLC members and the amount of any such distributions. If the Company authorizes a distribution, such distribution will be made to the members of the LLC (including the Company) pro rata in accordance with the percentages of their respective LLC Units.

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Inventories

6 Months Ended

Dec. 31, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories, net consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Raw materials	$	120,373	$	142,948
Work in progress	23,802		19,222
Finished goods	13,591		9,019
Total inventories	$	157,766	$	171,189

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Property, Plant and Equipment

6 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment, net consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Land	$	4,905	$	4,905
Building and leasehold improvements	119,773		119,324
Machinery and equipment	108,775		103,362
Furniture and fixtures	13,324		12,672
Construction in process	93,944		47,482
	340,721		287,745
Less: Accumulated depreciation	(95,590)		(82,953)
Property, plant and equipment, net	$	245,131	$	204,792

Depreciation expense was $6,343 and $5,388 for the three months ended December 31, 2023 and 2022, respectively, and $12,667 and $10,684 for the six months ended December 31, 2023 and 2022, respectively, substantially all of which was recorded in cost of sales.

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Goodwill and Other Intangible Assets

6 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the six months ended December 31, 2023 were as follows:

	Malibu		Saltwater Fishing		Cobalt		Consolidated
Goodwill as of June 30, 2023	$	12,072	$	68,714	$	19,791	$	100,577
Effect of foreign currency changes on goodwill	156		—		—		156
Goodwill as of December 31, 2023	$	12,228	$	68,714	$	19,791	$	100,733

The components of other intangible assets were as follows:

	As of December 31, 2023		As of June 30, 2023		Estimated Useful Life (in years)	Weighted-Average Remaining Useful Life (in years)
Definite-lived intangibles:
Dealer relationships	$	131,780	$	131,725	15-20	15.1
Patent	2,600		2,600		15	8.5
Trade name	100		100		15	6.5
Non-compete agreement	48		46		10	0.8
Total	134,528		134,471
Less: Accumulated amortization	(34,679)		(31,213)
Total definite-lived intangible assets, net	99,849		103,258
Indefinite-lived intangible:
Trade name	118,200		118,200
Total other intangible assets, net	$	218,049	$	221,458

Amortization expense recognized on all amortizable intangibles was $1,713 and $1,715 for the three months ended December 31, 2023 and 2022, respectively, and $3,428 and $3,431 for the six months ended December 31, 2023 and 2022, respectively.

Estimated future amortization expenses as of December 31, 2023 are as follows:

Fiscal years ending June 30:	Amount
Remainder of 2024	$	3,378
2025	6,807
2026	6,805
2027	6,805
2028	6,805
2029 and thereafter	69,249
	$	99,849

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Accrued Expenses

6 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Warranties	$	40,587	$	41,709
Dealer incentives	21,911		14,996
Accrued compensation	12,525		19,671
Current operating lease liabilities	2,283		2,324
Litigation settlement	—		100,000
Accrued legal and professional fees	21,715		1,899
Customer deposits	5,412		4,054
Other accrued expenses	2,283		2,425
Total accrued expenses	$	106,716	$	187,078

Litigation settlement represents the settlement of product liability cases in June 2023 for $100,000. Accrued legal and professional fees includes approximately $21,000 in insurance coverage proceeds that are subject in certain cases to reservations of rights by the insurance carriers. The proceeds will be considered a liability in accrued expenses until the resolution of the litigation. For more information, refer to Note 15 of our condensed consolidated financial statements included elsewhere in this report.

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Product Warranties

6 Months Ended

Dec. 31, 2023

Product Warranties Disclosures [Abstract]

Product Warranties

Product Warranties

The Company's Malibu and Axis brand boats have a limited warranty for a period up to five years. The Company's Cobalt brand boats have (1) a structural warranty of up to ten years which covers the hull, deck joints, bulkheads, floor, transom, stringers, and motor mount and (2) a five year bow-to-stern warranty on all components manufactured or purchased (excluding hull and deck structural components), including canvas and upholstery. Gelcoat is covered up to three years for Cobalt and one year for Malibu and Axis. Pursuit brand boats have (1) a limited warranty for a period of up to five years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow-to-stern warranty of two years (excluding hull and deck structural components). Maverick, Pathfinder and Hewes brand boats have (1) a limited warranty for a period of up to five years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow-to-stern warranty of one year (excluding hull and deck structural components). Cobia brand boats have (1) a limited warranty for a period of up to ten years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow-to-stern warranty of three years (excluding hull and deck structural components). For each boat brand, there are certain materials, components or parts of the boat that are not covered by the Company’s warranty and certain components or parts that are separately warranted by the manufacturer or supplier (such as the engine). Engines that the Company manufactures for Malibu and Axis models have a limited warranty of up to five years or five-hundred hours.

The Company’s standard warranties require it or its dealers to repair or replace defective products during the warranty period at no cost to the consumer. The Company estimates warranty costs it expects to incur and records a liability for such costs at the time the product revenue is recognized. The Company utilizes historical claims trends and analytical tools to develop the estimate of its warranty obligation on a per boat basis, by brand and warranty year. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Beginning in model year 2016, the Company increased the term of its limited warranty for Malibu brand boats from three years to five years and for Axis brand boats from two years to five years. Beginning in model year 2018, the Company increased the term of its bow-to-stern warranty for Cobalt brand boats from three years to five years. Accordingly, the Company has less historical claims experience for warranty years four and five, and as such, these estimates give rise to a higher level of estimation uncertainty. Future warranty claims may differ from the Company’s estimate of the warranty liability, which could lead to changes in the Company’s warranty liability in future periods.

Changes in the Company’s product warranty liability, which is included in accrued expenses on the unaudited interim condensed consolidated balance sheets, were as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Beginning balance	$	41,597	$	39,399	$	41,709	$	38,673
Add: Warranty expense	6,622		6,682		13,037		13,087
Less: Warranty claims paid	(7,632)		(5,568)		(14,159)		(11,247)
Ending balance	$	40,587	$	40,513	$	40,587	$	40,513

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Financing

6 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Financing

Financing

Outstanding debt consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Term loan	$	—	$	—
Revolving credit loan	35,000		—
Total debt	35,000		—
Less current maturities	—		—
Long-term debt less current maturities	$	35,000	$	—

Long-Term Debt

On July 8, 2022, Boats LLC entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) which provides Boats LLC with a revolving credit facility in an aggregate principal amount of up to $350,000. As of December 31, 2023, the Company had $35,000 outstanding under its revolving credit facility and $1,578 in outstanding letters of credit, with $313,422 available for borrowing. The revolving credit facility matures on July 8, 2027. Boats LLC has the option to request that lenders increase the amount available under the revolving credit facility by, or obtain incremental term loans of, up to $200,000, subject to the terms of the Credit Agreement and only if existing or new lenders choose to provide additional term or revolving commitments.

The obligations of Boats LLC under the Credit Agreement are guaranteed by the LLC, and, subject to certain exceptions, the present and future domestic subsidiaries of Boats LLC, and all such obligations are secured by substantially all of the assets of the LLC, Boats LLC and such subsidiary guarantors. Malibu Boats, Inc. is not a party to the Credit Agreement.

Borrowings under the Credit Agreement bear interest at a rate equal to either, at the Company's option, (i) the highest of the prime rate, the Federal Funds Rate (as defined in the Credit Agreement) plus 0.5%, or one-month Term SOFR (as defined in the Credit Agreement) plus 1% (the “Base Rate”) or (ii) SOFR (as defined in the Credit Agreement), in each case plus an applicable margin ranging from 1.25% to 2.00% with respect to SOFR borrowings and 0.25% to 1.00% with respect to Base Rate borrowings. The applicable margin is based upon the consolidated leverage ratio of the LLC and its subsidiaries. As of December 31, 2023, the interest rate on the Company’s revolving credit facility was 6.41%. The Company is required to pay a commitment fee for any unused portion of the revolving credit facility which ranges from 0.15% to 0.30% per annum, depending on the LLC’s and its subsidiaries’ consolidated leverage ratio.

The Credit Agreement contains certain customary representations and warranties, and notice requirements for the occurrence of specific events such as the occurrence of any event of default or pending or threatened litigation. The Credit Agreement also requires compliance with certain customary financial covenants consisting of a minimum ratio of EBITDA to interest expense and a maximum ratio of total debt to EBITDA. The Credit Agreement contains certain customary restrictive covenants regarding indebtedness, liens, fundamental changes, investments, share repurchases, dividends and distributions, disposition of assets, transactions with affiliates, negative pledges, hedging transactions, certain prepayments of indebtedness, accounting changes and governmental regulation. For example, the Credit Agreement generally prohibits the LLC, Boats LLC and the subsidiary guarantors from paying dividends or making distributions, including to the Company. The credit facility permits, however, (i) distributions based on a member’s allocated taxable income, (ii) distributions to fund payments that are required under the LLC’s tax receivable agreement, (iii) purchase of stock or stock options of the LLC from former officers,

directors or employees of loan parties or payments pursuant to stock option and other benefit plans up to $5,000 in any fiscal year, and (iv) repurchases of the Company's outstanding stock and LLC Units. In addition, the LLC may make unlimited dividends and distributions if its consolidated leverage ratio is 2.75 or less and certain other conditions are met, subject to compliance with certain financial covenants.

The Credit Agreement also contains customary events of default. If an event of default has occurred and continues beyond any applicable cure period, the administrative agent may (i) accelerate all outstanding obligations under the Credit Agreement or (ii) terminate the commitments, amongst other remedies. Additionally, the lenders are not obligated to fund any new borrowing under the Credit Agreement while an event of default is continuing.

Covenant Compliance

As of December 31, 2023, the Company was in compliance with the financial covenants contained in the Credit Agreement.

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Leases

6 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

The Company leases certain manufacturing facilities, warehouses, office space, land, and equipment. The Company determines if a contract is a lease or contains an embedded lease at the inception of the agreement. Leases with an initial term of 12 months or less are not recorded on the unaudited interim condensed consolidated balance sheets. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The Company's lease liabilities do not include future lease payments related to options to extend or terminate lease agreements as it is not reasonably certain those options will be exercised.

Other information concerning the Company's operating leases accounted for under ASC Topic 842, Leases is as follows:

Classification		As of December 31, 2023		As of June 30, 2023
Assets
Right-of-use assets	Other assets	$	7,866	$	8,808
Liabilities
Current operating lease liabilities	Accrued expenses	$	2,283	$	2,324
Long-term operating lease liabilities	Other liabilities	6,790		7,843
Total lease liabilities		$	9,073	$	10,167

Classification		Three Months Ended December 31, 2023		Three Months Ended December 31, 2022		Six Months Ended December 31, 2023		Six Months Ended December 31, 2022
Operating lease costs (1)	Cost of sales	$	639	$	646	$	1,344	$	1,313
	Selling and marketing, and general and administrative	204		237		444		456
Sublease income	Other (income) expense, net	(9)		(9)		(19)		(19)
Cash paid for amounts included in the measurement of operating lease liabilities	Cash flows from operating activities	666		622		1,330		1,245

(1) Includes short-term leases, which are insignificant, and are not included in the lease liability.

The lease liability for operating leases that contain variable escalating rental payments with scheduled increases that are based on the lesser of a stated percentage increase or the cumulative increase in an index, are determined using the stated percentage increase.

The weighted-average remaining lease term as of December 31, 2023 and 2022 was 4.08 years and 5.08 years, respectively. As of December 31, 2023 and 2022, the weighted-average discount rate determined based on the Company's incremental borrowing rate is 3.69% and 3.64%, respectively.

Future annual minimum lease payments for the following fiscal years as of December 31, 2023 are as follows:

	Amount
Remainder of 2024	$	1,336
2025	2,373
2026	2,274
2027	2,258
2028	1,505
2029 and thereafter	1
Total	9,747
Less: imputed interest	(674)
Present value of lease liabilities	$	9,073

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Tax Receivable Agreement Liability

6 Months Ended

Dec. 31, 2023

Tax Receivable Agreement [Abstract]

Tax Receivable Agreement Liability

Tax Receivable Agreement Liability

The Company has a Tax Receivable Agreement with the pre-IPO owners of the LLC that provides for the payment by the Company to the pre-IPO owners (or their permitted assignees) of 85% of the amount of the benefits, if any, that the Company is deemed to realize as a result of (i) increases in tax basis and (ii) certain other tax benefits related to the Company entering into the Tax Receivable Agreement, including those attributable to payments under the Tax Receivable Agreement. These contractual payment obligations are obligations of the Company and not of the LLC. The Company's Tax Receivable Agreement liability was determined on an undiscounted basis in accordance with ASC 450, Contingencies, since the contractual payment obligations were deemed to be probable and reasonably estimable.

For purposes of the Tax Receivable Agreement, the benefit deemed realized by the Company is computed by comparing the actual income tax liability of the Company (calculated with certain assumptions) to the amount of such taxes that the Company would have been required to pay had there been no increase to the tax basis of the assets of the LLC as a result of the purchases or exchanges, and had the Company not entered into the Tax Receivable Agreement.

The following table reflects the changes to the Company's tax receivable agreement liability:

	As of December 31, 2023		As of June 30, 2023
Beginning fiscal year balance	$	43,465	$	45,541
Additions (reductions) to tax receivable agreement:
Exchange of LLC Units for Class A Common Stock	—		1,710
Adjustment for change in estimated state tax rate or benefits	—		188
Payments under tax receivable agreement	—		(3,974)
	43,465		43,465
Less: current portion under tax receivable agreement	(4,111)		(4,111)
Ending balance	$	39,354	$	39,354

The Tax Receivable Agreement further provides that, upon certain mergers, asset sales or other forms of business combinations or other changes of control, the Company (or its successor) would owe to the pre-IPO owners of the LLC a lump-sum payment equal to the present value of all forecasted future payments that would have otherwise been made under the Tax Receivable Agreement that would be based on certain assumptions, including a deemed exchange of LLC Units and that the Company would have sufficient taxable income to fully utilize the deductions arising from the increased tax basis and other tax benefits related to entering into the Tax Receivable Agreement. The Company also is entitled to terminate the Tax Receivable Agreement, which, if terminated, would obligate the Company to make early termination payments to the pre-IPO owners of

the LLC. In addition, a pre-IPO owner may elect to unilaterally terminate the Tax Receivable Agreement with respect to such pre-IPO owner, which would obligate the Company to pay to such existing owner certain payments for tax benefits received through the taxable year of the election.

When estimating the expected tax rate to use in order to determine the tax benefit expected to be recognized from the Company’s increased tax basis as a result of exchanges of LLC Units by the pre-IPO owners of the LLC, the Company continuously monitors changes in its overall tax posture, including changes resulting from new legislation and changes as a result of new jurisdictions in which the Company is subject to tax.

As of December 31, 2023 and June 30, 2023, the Company recorded deferred tax assets of $118,148 associated with basis differences in assets upon acquiring an interest in the LLC and pursuant to making an election under Section 754 of the Internal Revenue Code of 1986 (the "Internal Revenue Code"), as amended. The aggregate Tax Receivable Agreement liability represents 85% of the tax benefits that the Company expects to receive in connection with the Section 754 election. In accordance with the Tax Receivable Agreement, the next annual payment is anticipated approximately 75 days after filing the federal tax return due by April 15, 2024.

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Income Taxes

6 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company is taxed as a C corporation for U.S. income tax purposes and is therefore subject to both federal and state taxation at a corporate level. The LLC continues to operate in the United States as a partnership for U.S. federal income tax purposes. Maverick Boat Group is separately subject to U.S. federal and state income tax with respect to its net taxable income.

Income taxes are computed in accordance with ASC Topic 740, Income Taxes, and reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize the benefit of some or all of its deferred tax assets, such deferred tax assets will be adjusted through the Company’s provision for income taxes in the period in which this determination is made.

As of December 31, 2023 and June 30, 2023, the Company maintained a total valuation allowance of $16,753 and $16,876, respectively, against deferred tax assets related to state net operating losses and future amortization deductions (with respect to the Section 754 election) that are reported in the Tennessee corporate tax return without offsetting income, which is taxable at the LLC. These also include a valuation allowance in the amount of $580 related to foreign tax credit carryforward that is not expected to be utilized in the future.

The Company’s consolidated interim effective tax rate is based upon expected annual income from operations, statutory tax rates and tax laws in the various jurisdictions in which the Company operates. Significant or unusual items, including those related to the change in U.S. tax law as well as other adjustments to accruals for tax uncertainties, are recognized in the quarter in which the related event occurs. On August 16, 2022, the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”) was signed into law. The Inflation Reduction Act contains significant business tax provisions, including an excise tax on stock buybacks (1% for transactions beginning January 1, 2023), increased funding for IRS tax enforcement, expanded energy incentives promoting clean energy investment, and a 15% corporate minimum tax on certain large corporations. The effects of the new legislation are recognized upon enactment. The Company did not recognize any significant impact to income tax expense for the six months ended December 31, 2023 relating to the Inflation Reduction Act.

For the three months ended December 31, 2023 and 2022, the Company's effective tax rate was 27.8% and 23.5%, respectively. For the six months ended December 31, 2023 and 2022, the Company's effective tax rate was 26.0% and 23.4%, respectively. For the three months ended December 31, 2023 and 2022, the Company's effective tax rate exceeded the statutory federal income tax rate of 21% primarily due to the impact of U.S. state taxes. For the three and six months ended December 31, 2023, this increase in the effective tax rate was also driven by a shortfall expense generated by certain stock-based compensation. For the three and six months ended December 31, 2022, the increase in the effective tax rate over the statutory federal income tax rate was partially offset by a windfall benefit generated by certain stock-based compensation as well as the benefits from the foreign derived intangible income deduction, the research and development tax credit, and the impact of non-controlling interests in the LLC.

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Stock-Based Compensation

6 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company adopted a long term incentive plan which became effective on January 1, 2014, and reserves for issuance up to 1,700,000 shares of Malibu Boats, Inc. Class A Common Stock for the Company’s employees, consultants, members of its board of directors and other independent contractors at the discretion of the compensation committee. Incentive stock awards

authorized under the Incentive Plan include unrestricted shares of Class A Common Stock, stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent awards and performance awards. As of December 31, 2023, 204,722 shares remain available for future issuance under the long term incentive plan.

On November 6, 2023, under the Incentive Plan, Malibu Boats, Inc. granted approximately 79,000 restricted service-based stock units and 35,000 restricted service-based stock awards to employees. The grant date fair value of these awards was $5,116 based on a stock price of $44.87 per share on the date of grant. Approximately 70% of the awards vest ratably over three years and approximately 30% of the awards vest ratably over four years. Stock-based compensation expense attributable to the service-based units and awards is amortized on a straight-line basis over the requisite service period.

On November 6, 2023, under the Incentive Plan, Malibu Boats, Inc. granted to employees a target amount of approximately 26,000 restricted stock awards with a performance condition. The number of shares that will ultimately be issued, if any, is based on the attainment of a specified amount of earnings during the fiscal year ending June 30, 2026. The maximum number of shares that can be issued if an elevated earnings target is met is approximately 39,000. The grant date fair value of the awards were estimated to be $1,167, based on a stock price of $44.87. These shares are not expected to vest based on the expectation that the related performance criteria will not be met. Compensation costs associated with the performance awards are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation.

On November 6, 2023, under the Incentive Plan, Malibu Boats, Inc. granted to employees a target amount of approximately 26,000 stock awards with a market condition. The number of shares that will ultimately be issued, if any, is based on a total shareholder return ("TSR") computation that involves comparing the movement in Malibu Boats, Inc.'s stock price to movement in a market index from the grant date through November 6, 2026. The maximum number of shares that can be issued if an elevated TSR target is met is approximately 52,000. The grant date fair value of the awards were estimated to be $1,284, which is estimated using a Monte Carlo simulation. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair market value for the stock award. Compensation costs are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation.

On November 27, 2023, under the Incentive Plan, Malibu Boats, Inc. granted two awards to its newly-appointed Chief Financial Officer. The two service-based stock awards include approximately 7,000 units that will vest over two years and approximately 6,000 units that will vest over four years. The combined grant date fair value of these awards was $600 based on a stock price of $44.85 per share on the date of grant.

The following is a summary of the changes in the Company's stock options for the six months ended December 31, 2023:

	Shares	Weighted-Average Exercise Price/Share
Total outstanding options as of June 30, 2023	17,973	$	37.55
Options granted	—	—
Options exercised	—	—
Outstanding options as of December 31, 2023	17,973	37.55
Exercisable as of December 31, 2023	17,973	$	37.55

The following is a summary of the changes in non-vested restricted stock units and restricted stock awards for the six months ended December 31, 2023:

	Number of Restricted Stock Units and Restricted Stock Awards Outstanding	Weighted-Average Grant Date Fair Value
Total Non-vested Restricted Stock Units and Restricted Stock Awards as of June 30, 2023	324,824	$	57.98
Granted	230,031	44.95
Vested	(91,683)	54.79
Forfeited	(24,983)	54.57
Total Non-vested Restricted Stock Units and Restricted Stock Awards as of December 31, 2023	438,189	$	52.00

Stock-based compensation expense attributable to the Company's share-based equity awards was $(137) and $2,016 for the three months ended December 31, 2023 and 2022, respectively and $1,323 and $3,651 for the six months ended December 31, 2023 and 2022, respectively. During the three months ended December 31, 2023, the Company determined achievement of the fiscal year 2022 and fiscal year 2023 performance based awards to be improbable. As a result, the Company reversed approximately $1,600 in previously recognized stock-based compensation expense. Stock-based compensation expense attributed to share-based equity awards issued under the Incentive Plan is recognized on a straight-line basis over the terms of the respective awards and is included in general and administrative expense in the Company's unaudited interim condensed consolidated statements of operations and comprehensive income. Awards vesting during the three and six months ended December 31, 2023 include 10,675 and 11,477 fully vested restricted stock units issued to non-employee directors for their service as directors for the Company.

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Net Earnings Per Share

6 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Earnings Per Share

Net Earnings Per Share

Basic net income per share of Class A Common Stock is computed by dividing net income attributable to the Company's earnings by the weighted-average number of shares of Class A Common Stock outstanding during the period. The weighted-average number of shares of Class A Common Stock outstanding used in computing basic net income per share includes fully vested restricted stock units awarded to directors that are entitled to participate in distributions to common stockholders through receipt of additional units of equivalent value to the dividends paid to Class A Common Stock holders.

Diluted net income per share of Class A Common Stock is computed similarly to basic net income per share except the weighted-average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents using the treasury method, if dilutive. The Company's LLC Units and non-qualified stock options are considered common stock equivalents for this purpose. The number of additional shares of Class A Common Stock related to these common stock equivalents and stock options are calculated using the treasury stock method.

Stock awards with a performance condition that are based on the attainment of a specified amount of earnings are only included in the computation of diluted earnings per share to the extent that the performance condition would be achieved based on the current amount of earnings, and only if the effect would be dilutive.

Stock awards with a market condition that are based on the performance of the Malibu Boats, Inc.'s stock price in relation to a market index over a specified time period are only included in the computation of diluted earnings per share to the extent that the shares would be issued based on the current market price of the Malibu Boats, Inc.'s stock in relation to the market index, and only if the effect would be dilutive.

Basic and diluted net income per share of Class A Common Stock has been computed as follows (in thousands, except share and per share amounts):

	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Basic:
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	20,103,458		20,149,634		20,212,849		20,182,696
Weighted-average participating restricted stock units convertible into Class A Common Stock	272,292		254,949		268,270		249,520
Basic weighted-average shares outstanding	20,375,750		20,404,583		20,481,119		20,432,216
Basic net income per share	$	0.49	$	1.73	$	1.47	$	3.43
Diluted:
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	20,375,750		20,404,583		20,481,119		20,432,216
Restricted stock units granted to employees	24,108		49,725		44,613		64,419
Stock options granted to employees	3,899		11,889		4,654		13,289
Market performance awards granted to employees	46,447		49,828		36,832		49,828
Diluted weighted-average shares outstanding 1	20,450,204		20,516,025		20,567,218		20,559,752
Diluted net income per share	$	0.49	$	1.72	$	1.47	$	3.41

1 The Company excluded (i) 597,673 and 761,150 potentially dilutive shares from the calculation of diluted net income per share for the three months ended December 31, 2023 and 2022, respectively, and (ii) 533,968 and 761,150 potentially dilutive shares from the calculation of diluted net income per share for the six months ended December 31, 2023 and 2022, respectively.

The shares of Class B Common Stock do not share in the earnings or losses of Malibu Boats, Inc. and are therefore not included in the calculation. Accordingly, basic and diluted net income per share of Class B Common Stock have not been presented.

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Commitments and Contingencies

6 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Repurchase Commitments

In connection with its dealers’ wholesale floor plan financing of boats, the Company has entered into repurchase agreements with various lending institutions. The reserve methodology used to record an estimated expense and loss reserve in each accounting period is based upon an analysis of likely repurchases based on current field inventory and likelihood of repurchase. Subsequent to the inception of the repurchase commitment, the Company evaluates the likelihood of repurchase and adjusts the estimated loss reserve accordingly. When a potential loss reserve is recorded, it is presented in accrued liabilities in the accompanying unaudited interim condensed consolidated balance sheets. If the Company were obligated to repurchase a significant number of units under any repurchase agreement, its business, operating results and financial condition could be adversely affected. The total amount financed under the floor financing programs with repurchase obligations was $478,364 and $385,448 as of December 31, 2023 and June 30, 2023, respectively.

Repurchases and subsequent sales are recorded as a revenue transaction. The net difference between the repurchase price and the resale price is recorded against the loss reserve and presented in cost of sales in the accompanying unaudited interim condensed consolidated statements of operations and comprehensive income. During the three and six months ended December 31, 2023 and 2022, there were no repurchases and as of December 31, 2023, the Company has not been notified about any probable repossessions. Therefore, the Company did not carry a reserve for repurchases as of December 31, 2023 consistent with June 30, 2023.

The Company has collateralized receivables financing arrangements with a third-party floor plan financing provider for

European dealers. Under terms of these arrangements, the Company transfers the right to collect a trade receivable to the financing provider in exchange for cash but agrees to repurchase the receivable if the dealer defaults. Since the transfer of the receivable to the financing provider does not meet the conditions for a sale under ASC Topic 860, Transfers and Servicing, the Company continues to report the transferred trade receivable in other current assets with an offsetting balance recorded as a secured obligation in accrued expenses in the Company's unaudited interim condensed consolidated balance sheets. As of December 31, 2023 and June 30, 2023, the Company had no financing receivables recorded in other current assets and accrued expenses related to these arrangements.

Roane County Property Purchase

On March 28, 2023, the Company entered into a Purchase and Sale Agreement (the “Purchase Agreement”) to purchase certain real property, improvements and other assets from the seller for a cash purchase price of approximately $33,300. As of June 30, 2023, the Company had deposited approximately $7,800 in escrow pursuant to the Purchase Agreement. On July 25, 2023, the transaction closed and the Company paid the remaining $25,500 balance of the purchase price. In addition to the purchase price, the Company has incurred approximately $11,500 of capital expenditures through December 31, 2023 to update the facility to meet its operational needs and expects to incur additional capital expenditures of approximately $7,900 with respect to the facility.

Contingencies

Product Liability

The Company is engaged in a business that exposes it to claims for product liability and warranty claims in the event the Company’s products actually or allegedly fail to perform as expected or the use of the Company’s products results, or is alleged to result, in property damage, personal injury or death. Although the Company maintains product and general liability insurance of the types and in the amounts that the Company believes are customary for the industry, the Company is not fully insured against all such potential claims. The Company may have the ability to refer claims to its suppliers and their insurers to pay the costs associated with any claims arising from the suppliers’ products. The Company’s insurance covers such claims that are not adequately covered by a supplier’s insurance and provides for excess secondary coverage above the limits provided by the Company’s suppliers.

The Company may experience legal claims in excess of its insurance coverage or claims that are not covered by insurance, either of which could adversely affect its business, financial condition and results of operations. Adverse determination of material product liability and warranty claims made against the Company could have a material adverse effect on its financial condition and harm its reputation. In addition, if any of the Company's products are, or are alleged to be, defective, the Company may be required to participate in a recall of that product if the defect or alleged defect relates to safety. These and other claims that the Company faces could be costly to the Company and require substantial management attention. Refer to Note 8 for discussion of warranty claims. The Company insures against product liability claims and believes there are no product liability claims as of December 31, 2023 that will have a material adverse impact on the Company’s results of operations, financial condition or cash flows.

Litigation

Certain conditions may exist which could result in a loss, but which will only be resolved when future events occur. The Company, in consultation with its legal counsel, assesses such contingent liabilities, and such assessments inherently involve an exercise of judgment. If the assessment of a contingency indicates that it is probable that a loss has been incurred, the Company accrues for such contingent loss when it can be reasonably estimated. If the assessment indicates that a potentially material loss contingency is not probable but reasonably estimable, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. If the assessment of a contingency deemed to be both probable and reasonably estimable involves a range of possible losses, the amount within the range that appears at the time to be a better estimate than any other amount within the range would be accrued. When no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued even though the minimum amount in the range is not necessarily the amount of loss that will be ultimately determined. Estimates of potential legal fees and other directly related costs associated with contingencies are not accrued but rather are expensed as incurred. Management does not believe there are any pending claims (asserted or unasserted) as of December 31, 2023 that would have a material adverse impact on the Company's results of operations, financial condition or cash flows.

Legal Proceedings

Insurance Litigation

MBI and its indirect subsidiary Boats LLC were defendants in the product liability case Batchelder et al. v. Malibu Boats, LLC, f/k/a Malibu Boats, Inc.; Malibu Boats West, Inc., et. al., Superior Court of Rabun County, Georgia, Civil Action Case No. 2016-CV-0114-C (the “Batchelder I Matter”), brought by, among others, Stephan Paul Batchelder and Margaret Mary Batchelder as Administrators of the Estate of Ryan Paul Batchelder, deceased (“Batchelder I Plaintiffs”). Boats LLC was also a defendant in a related product liability case, Stephan Paul Batchelder and Margaret Mary Batchelder, as Natural Guardians of Josh Patrick Batchelder, a minor; Darin Batchelder, individually, and as Natural Guardian of Zach Batchelder, a minor; and Kayla Batchelder (the “Batchelder II Plaintiffs” and, together with the Batchelder I Plaintiffs, the “Batchelder Plaintiffs”) v. Malibu Boats, LLC v. Dennis Michael Ficarra; Superior Court of Rabun County, Civil Action File No. 2022-CV-0034 (the “Batchelder II Matter” and, together with the Batchelder I Matter, the “Batchelder Matters”). On June 30, 2023, MBI and Boats LLC entered into a Confidential General Release and Settlement Agreement (the “Settlement Agreement”) with the Batchelder Plaintiffs in settlement of the Batchelder Matters and all matters related to the Batchelder Matters. Pursuant to the Settlement Agreement, among other things, Malibu Boats, Inc., or Boats LLC, as the case may be, paid (or caused to be paid) to the Batchelder Plaintiffs and their agents a total of $100,000.

MBI and its subsidiaries, including Boats LLC, maintain liability insurance applicable to the Batchelder Matters described above with coverage up to $26,000. As of December 31, 2023, the Company had received approximately $21,000 in insurance coverage proceeds, subject in certain cases to reservations of rights by the insurance carriers. The Company contends that the insurance carriers are responsible for the entirety of the $100,000 settlement amount and related expenses, and therefore, the insurers’ payments to date are well below what they should have tendered to Boats LLC. Accordingly, on July 3, 2023, Boats LLC filed a complaint against Federal Insurance Company (a Chubb subsidiary) and Starr Indemnity & Liability Company alleging that the insurers unreasonably failed to comply with their obligations by refusing, negligently, and in bad faith, to settle covered claims within their available policy limits prior to trial. The Company intends to vigorously pursue its claims against its insurers to recover the full $100,000 settlement amount and expenses (less any monies already tendered without reservation by the carriers). However, the Company cannot predict the outcome of such litigation.

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Segment Reporting

6 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has three reportable segments, Malibu, Saltwater Fishing and Cobalt. The Malibu segment participates in the manufacturing, distribution, marketing and sale of Malibu and Axis performance sports boats throughout the world. The Saltwater Fishing segment participates in the manufacturing, distribution, marketing and sale throughout the world of Pursuit boats and the Maverick Boat Group brand boats (Maverick, Cobia, Pathfinder and Hewes). The Cobalt segment participates in the manufacturing, distribution, marketing and sale of Cobalt boats throughout the world.

There is no country outside of the United States from which the Company (a) derived net sales equal to 10% of total net sales for the three and six months ended December 31, 2023, or (b) attributed assets equal to 10% of total assets as of December 31, 2023. Net sales are attributed to countries based on the location of the dealer. The following tables present financial information for the Company’s reportable segments for the three and six months ended December 31, 2023 and 2022, respectively, and the Company’s financial position at December 31, 2023 and June 30, 2023, respectively:

	Three Months Ended December 31, 2023								Six Months Ended December 31, 2023
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Total
Net sales	$	76,389	$	82,734	$	51,951	$	211,074	$	181,394	$	175,356	$	110,154	$	466,904
Income before provision for income taxes	$	3,905	$	5,865	$	4,280	$	14,050	$	15,842	$	14,860	$	11,096	$	41,798
	Three Months Ended December 31, 2022								Six Months Ended December 31, 2022
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Total
Net sales	$	158,166	$	105,585	$	74,981	$	338,732	$	303,334	$	197,818	$	139,791	$	640,943
Income before provision for income taxes	$	29,055	$	11,021	$	7,505	$	47,581	$	56,971	$	21,281	$	16,457	$	94,709

	As of December 31, 2023		As of June 30, 2023
Assets
Malibu	$	196,436	$	249,447
Saltwater Fishing	429,394		432,806
Cobalt	254,166		243,671
Total assets	$	879,996	$	925,924

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Subsequent Events

6 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Between January 1, 2024 and January 30, 2024, three non-controlling LLC Units holders exchanged 131,000 LLC Units for 131,000 shares of Class A Common Stock. No shares of Class B Common Stock were retired in connection with the exchanges.

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Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim condensed financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with GAAP for complete financial statements. Such statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Malibu and subsidiaries for the year ended June 30, 2023, included in the Company's Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Units and shares are presented as whole numbers while all dollar amounts are presented in thousands, unless otherwise noted.

Principles of Consolidation

Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements include the operations and accounts of the Company and all subsidiaries thereof. All intercompany balances and transactions have been eliminated upon consolidation.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November, 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures" which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant expenses. The updated standard is effective for annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.

In December, 2023, the FASB issued ASU No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires two primary enhancements of 1) disaggregated information on a reporting entity’s effective tax rate reconciliation, and 2) information on income taxes paid. For public business entities, the new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.

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Revenue Recognition (Tables)

6 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following tables disaggregate the Company's revenue by major product type and geography:

	Three Months Ended December 31, 2023								Six Months Ended December 31, 2023
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Consolidated
Revenue by product:
Boat and trailer sales	$	74,272	$	82,480	$	51,391	$	208,143	$	173,711	$	174,732	$	108,495	$	456,938
Part and other sales	2,117		254		560		2,931		7,683		624		1,659		9,966
Net Sales	$	76,389	$	82,734	$	51,951	$	211,074	$	181,394	$	175,356	$	110,154	$	466,904
Revenue by geography:
North America	$	69,123	$	78,329	$	51,636	$	199,088	$	166,178	$	170,195	$	109,092	$	445,465
International	7,266		4,405		315		11,986		15,216		5,161		1,062		21,439
Net Sales	$	76,389	$	82,734	$	51,951	$	211,074	$	181,394	$	175,356	$	110,154	$	466,904

	Three Months Ended December 31, 2022								Six Months Ended December 31, 2022
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Consolidated
Revenue by product:
Boat and trailer sales	$	155,011	$	105,363	$	73,830	$	334,204	$	295,174	$	197,256	$	137,460	$	629,890
Part and other sales	3,155		222		1,151		4,528		8,160		562		2,331		11,053
Net Sales	$	158,166	$	105,585	$	74,981	$	338,732	$	303,334	$	197,818	$	139,791	$	640,943
Revenue by geography:
North America	$	140,924	$	104,154	$	71,986	$	317,064	$	271,574	$	193,095	$	134,267	$	598,936
International	17,242		1,431		2,995		21,668		31,760		4,723		5,524		42,007
Net Sales	$	158,166	$	105,585	$	74,981	$	338,732	$	303,334	$	197,818	$	139,791	$	640,943

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Non-controlling Interest (Tables)

6 Months Ended

Dec. 31, 2023

Noncontrolling Interest [Abstract]

Schedule of Non-controlling Interest

The ownership of the LLC is summarized as follows:

	As of December 31, 2023			As of June 30, 2023
	Units	Ownership %		Units	Ownership %
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC	455,919	2.2	%	455,919	2.2	%
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC	20,298,626	97.8	%	20,603,822	97.8	%
	20,754,545	100.0	%	21,059,741	100.0	%

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Inventories (Tables)

6 Months Ended

Dec. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories, net consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Raw materials	$	120,373	$	142,948
Work in progress	23,802		19,222
Finished goods	13,591		9,019
Total inventories	$	157,766	$	171,189

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Property, Plant and Equipment (Tables)

6 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment, net consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Land	$	4,905	$	4,905
Building and leasehold improvements	119,773		119,324
Machinery and equipment	108,775		103,362
Furniture and fixtures	13,324		12,672
Construction in process	93,944		47,482
	340,721		287,745
Less: Accumulated depreciation	(95,590)		(82,953)
Property, plant and equipment, net	$	245,131	$	204,792

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill for the six months ended December 31, 2023 were as follows:

	Malibu		Saltwater Fishing		Cobalt		Consolidated
Goodwill as of June 30, 2023	$	12,072	$	68,714	$	19,791	$	100,577
Effect of foreign currency changes on goodwill	156		—		—		156
Goodwill as of December 31, 2023	$	12,228	$	68,714	$	19,791	$	100,733

Schedule of Components of Finite-Lived Intangible Assets

The components of other intangible assets were as follows:

	As of December 31, 2023		As of June 30, 2023		Estimated Useful Life (in years)	Weighted-Average Remaining Useful Life (in years)
Definite-lived intangibles:
Dealer relationships	$	131,780	$	131,725	15-20	15.1
Patent	2,600		2,600		15	8.5
Trade name	100		100		15	6.5
Non-compete agreement	48		46		10	0.8
Total	134,528		134,471
Less: Accumulated amortization	(34,679)		(31,213)
Total definite-lived intangible assets, net	99,849		103,258
Indefinite-lived intangible:
Trade name	118,200		118,200
Total other intangible assets, net	$	218,049	$	221,458

Schedule of Components of Indefinite-Lived Intangible Assets

The components of other intangible assets were as follows:

	As of December 31, 2023		As of June 30, 2023		Estimated Useful Life (in years)	Weighted-Average Remaining Useful Life (in years)
Definite-lived intangibles:
Dealer relationships	$	131,780	$	131,725	15-20	15.1
Patent	2,600		2,600		15	8.5
Trade name	100		100		15	6.5
Non-compete agreement	48		46		10	0.8
Total	134,528		134,471
Less: Accumulated amortization	(34,679)		(31,213)
Total definite-lived intangible assets, net	99,849		103,258
Indefinite-lived intangible:
Trade name	118,200		118,200
Total other intangible assets, net	$	218,049	$	221,458

Schedule of Future Amortization of Definite-Lived Intangible Assets

Estimated future amortization expenses as of December 31, 2023 are as follows:

Fiscal years ending June 30:	Amount
Remainder of 2024	$	3,378
2025	6,807
2026	6,805
2027	6,805
2028	6,805
2029 and thereafter	69,249
	$	99,849

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Accrued Expenses (Tables)

6 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Warranties	$	40,587	$	41,709
Dealer incentives	21,911		14,996
Accrued compensation	12,525		19,671
Current operating lease liabilities	2,283		2,324
Litigation settlement	—		100,000
Accrued legal and professional fees	21,715		1,899
Customer deposits	5,412		4,054
Other accrued expenses	2,283		2,425
Total accrued expenses	$	106,716	$	187,078

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Product Warranties (Tables)

6 Months Ended

Dec. 31, 2023

Product Warranties Disclosures [Abstract]

Schedule of Changes in Product Warranties

Changes in the Company’s product warranty liability, which is included in accrued expenses on the unaudited interim condensed consolidated balance sheets, were as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Beginning balance	$	41,597	$	39,399	$	41,709	$	38,673
Add: Warranty expense	6,622		6,682		13,037		13,087
Less: Warranty claims paid	(7,632)		(5,568)		(14,159)		(11,247)
Ending balance	$	40,587	$	40,513	$	40,587	$	40,513

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Financing (Tables)

6 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Schedule of Outstanding Debt

Outstanding debt consisted of the following:

	As of December 31, 2023		As of June 30, 2023
Term loan	$	—	$	—
Revolving credit loan	35,000		—
Total debt	35,000		—
Less current maturities	—		—
Long-term debt less current maturities	$	35,000	$	—

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Leases (Tables)

6 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of Assets And Liabilities, Lessee

Other information concerning the Company's operating leases accounted for under ASC Topic 842, Leases is as follows:

Classification		As of December 31, 2023		As of June 30, 2023
Assets
Right-of-use assets	Other assets	$	7,866	$	8,808
Liabilities
Current operating lease liabilities	Accrued expenses	$	2,283	$	2,324
Long-term operating lease liabilities	Other liabilities	6,790		7,843
Total lease liabilities		$	9,073	$	10,167

Schedule of Lease Cost

Classification		Three Months Ended December 31, 2023		Three Months Ended December 31, 2022		Six Months Ended December 31, 2023		Six Months Ended December 31, 2022
Operating lease costs (1)	Cost of sales	$	639	$	646	$	1,344	$	1,313
	Selling and marketing, and general and administrative	204		237		444		456
Sublease income	Other (income) expense, net	(9)		(9)		(19)		(19)
Cash paid for amounts included in the measurement of operating lease liabilities	Cash flows from operating activities	666		622		1,330		1,245

(1) Includes short-term leases, which are insignificant, and are not included in the lease liability.

Schedule of Future Minimum Lease Payments for Operating Leases

Future annual minimum lease payments for the following fiscal years as of December 31, 2023 are as follows:

	Amount
Remainder of 2024	$	1,336
2025	2,373
2026	2,274
2027	2,258
2028	1,505
2029 and thereafter	1
Total	9,747
Less: imputed interest	(674)
Present value of lease liabilities	$	9,073

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Tax Receivable Agreement Liability (Tables)

6 Months Ended

Dec. 31, 2023

Tax Receivable Agreement [Abstract]

Schedule of Changes to Tax Receivable Agreement

The following table reflects the changes to the Company's tax receivable agreement liability:

	As of December 31, 2023		As of June 30, 2023
Beginning fiscal year balance	$	43,465	$	45,541
Additions (reductions) to tax receivable agreement:
Exchange of LLC Units for Class A Common Stock	—		1,710
Adjustment for change in estimated state tax rate or benefits	—		188
Payments under tax receivable agreement	—		(3,974)
	43,465		43,465
Less: current portion under tax receivable agreement	(4,111)		(4,111)
Ending balance	$	39,354	$	39,354

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Stock-Based Compensation (Tables)

6 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

The following is a summary of the changes in the Company's stock options for the six months ended December 31, 2023:

	Shares	Weighted-Average Exercise Price/Share
Total outstanding options as of June 30, 2023	17,973	$	37.55
Options granted	—	—
Options exercised	—	—
Outstanding options as of December 31, 2023	17,973	37.55
Exercisable as of December 31, 2023	17,973	$	37.55

Schedule of Summary of the Changes in Non-vested Restricted Stock

The following is a summary of the changes in non-vested restricted stock units and restricted stock awards for the six months ended December 31, 2023:

	Number of Restricted Stock Units and Restricted Stock Awards Outstanding	Weighted-Average Grant Date Fair Value
Total Non-vested Restricted Stock Units and Restricted Stock Awards as of June 30, 2023	324,824	$	57.98
Granted	230,031	44.95
Vested	(91,683)	54.79
Forfeited	(24,983)	54.57
Total Non-vested Restricted Stock Units and Restricted Stock Awards as of December 31, 2023	438,189	$	52.00

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Net Earnings Per Share (Tables)

6 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income Per Share

Basic and diluted net income per share of Class A Common Stock has been computed as follows (in thousands, except share and per share amounts):

	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Basic:
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045
Shares used in computing basic net income per share:
Weighted-average Class A Common Stock	20,103,458		20,149,634		20,212,849		20,182,696
Weighted-average participating restricted stock units convertible into Class A Common Stock	272,292		254,949		268,270		249,520
Basic weighted-average shares outstanding	20,375,750		20,404,583		20,481,119		20,432,216
Basic net income per share	$	0.49	$	1.73	$	1.47	$	3.43
Diluted:
Net income attributable to Malibu Boats, Inc.	$	9,881	$	35,162	$	30,140	$	70,045
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding	20,375,750		20,404,583		20,481,119		20,432,216
Restricted stock units granted to employees	24,108		49,725		44,613		64,419
Stock options granted to employees	3,899		11,889		4,654		13,289
Market performance awards granted to employees	46,447		49,828		36,832		49,828
Diluted weighted-average shares outstanding 1	20,450,204		20,516,025		20,567,218		20,559,752
Diluted net income per share	$	0.49	$	1.72	$	1.47	$	3.41

1 The Company excluded (i) 597,673 and 761,150 potentially dilutive shares from the calculation of diluted net income per share for the three months ended December 31, 2023 and 2022, respectively, and (ii) 533,968 and 761,150 potentially dilutive shares from the calculation of diluted net income per share for the six months ended December 31, 2023 and 2022, respectively.

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Segment Reporting (Tables)

6 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables present financial information for the Company’s reportable segments for the three and six months ended December 31, 2023 and 2022, respectively, and the Company’s financial position at December 31, 2023 and June 30, 2023, respectively:

	Three Months Ended December 31, 2023								Six Months Ended December 31, 2023
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Total
Net sales	$	76,389	$	82,734	$	51,951	$	211,074	$	181,394	$	175,356	$	110,154	$	466,904
Income before provision for income taxes	$	3,905	$	5,865	$	4,280	$	14,050	$	15,842	$	14,860	$	11,096	$	41,798
	Three Months Ended December 31, 2022								Six Months Ended December 31, 2022
	Malibu		Saltwater Fishing		Cobalt		Consolidated		Malibu		Saltwater Fishing		Cobalt		Total
Net sales	$	158,166	$	105,585	$	74,981	$	338,732	$	303,334	$	197,818	$	139,791	$	640,943
Income before provision for income taxes	$	29,055	$	11,021	$	7,505	$	47,581	$	56,971	$	21,281	$	16,457	$	94,709

	As of December 31, 2023		As of June 30, 2023
Assets
Malibu	$	196,436	$	249,447
Saltwater Fishing	429,394		432,806
Cobalt	254,166		243,671
Total assets	$	879,996	$	925,924

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Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Details)	6 Months Ended
	Dec. 31, 2023 brand segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of brands | brand	8
Number of reportable segments | segment	3

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Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 211,074	$ 338,732	$ 466,904	$ 640,943
North America
Disaggregation of Revenue [Line Items]
Net sales	199,088	317,064	445,465	598,936
International
Disaggregation of Revenue [Line Items]
Net sales	11,986	21,668	21,439	42,007
Boat and trailer sales
Disaggregation of Revenue [Line Items]
Net sales	208,143	334,204	456,938	629,890
Part and other sales
Disaggregation of Revenue [Line Items]
Net sales	2,931	4,528	9,966	11,053
Malibu
Disaggregation of Revenue [Line Items]
Net sales	76,389	158,166	181,394	303,334
Malibu | North America
Disaggregation of Revenue [Line Items]
Net sales	69,123	140,924	166,178	271,574
Malibu | International
Disaggregation of Revenue [Line Items]
Net sales	7,266	17,242	15,216	31,760
Malibu | Boat and trailer sales
Disaggregation of Revenue [Line Items]
Net sales	74,272	155,011	173,711	295,174
Malibu | Part and other sales
Disaggregation of Revenue [Line Items]
Net sales	2,117	3,155	7,683	8,160
Saltwater Fishing
Disaggregation of Revenue [Line Items]
Net sales	82,734	105,585	175,356	197,818
Saltwater Fishing | North America
Disaggregation of Revenue [Line Items]
Net sales	78,329	104,154	170,195	193,095
Saltwater Fishing | International
Disaggregation of Revenue [Line Items]
Net sales	4,405	1,431	5,161	4,723
Saltwater Fishing | Boat and trailer sales
Disaggregation of Revenue [Line Items]
Net sales	82,480	105,363	174,732	197,256
Saltwater Fishing | Part and other sales
Disaggregation of Revenue [Line Items]
Net sales	254	222	624	562
Cobalt
Disaggregation of Revenue [Line Items]
Net sales	51,951	74,981	110,154	139,791
Cobalt | North America
Disaggregation of Revenue [Line Items]
Net sales	51,636	71,986	109,092	134,267
Cobalt | International
Disaggregation of Revenue [Line Items]
Net sales	315	2,995	1,062	5,524
Cobalt | Boat and trailer sales
Disaggregation of Revenue [Line Items]
Net sales	51,391	73,830	108,495	137,460
Cobalt | Part and other sales
Disaggregation of Revenue [Line Items]
Net sales	$ 560	$ 1,151	$ 1,659	$ 2,331

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Non-controlling Interest - Schedule of Non-controlling Interest (Details) - Malibu Boats Holdings LLC - shares	Dec. 31, 2023	Jun. 30, 2023
Class of Stock [Line Items]
Units (in shares)	20,754,545	21,059,741
Ownership (as a percent)	100.00%	100.00%
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC
Class of Stock [Line Items]
Units (in shares)	455,919	455,919
Ownership (as a percent)	2.20%	2.20%
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC
Class of Stock [Line Items]
Units (in shares)	20,298,626	20,603,822
Ownership (as a percent)	97.80%	97.80%

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Non-controlling Interest - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Noncontrolling Interest [Line Items]
Cancelled shares due to vesting of employee awards (in shares)	17,804
Cancelled shares in connection with the vesting of stock awards with a market condition (in shares)	20,080
Common units, retired (in shares)	38,017
Non-controlling Interest in LLC
Noncontrolling Interest [Line Items]
Tax distributions payable to non-controlling LLC Unit holders	$ 0		$ 776
Distribution paid to noncontrolling interests	$ 890	$ 1,741
Repurchase Agreements
Noncontrolling Interest [Line Items]
Stock redeemed and canceled during period (in shares)	425,407
Class A Common Stock
Noncontrolling Interest [Line Items]
Shares issued during period (in shares)	158,228

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Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 120,373	$ 142,948
Work in progress	23,802	19,222
Finished goods	13,591	9,019
Total inventories	$ 157,766	$ 171,189

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Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 340,721		$ 340,721		$ 287,745
Less: Accumulated depreciation	(95,590)		(95,590)		(82,953)
Property, plant and equipment, net	245,131		245,131		204,792
Depreciation expense	6,343	$ 5,388	12,667	$ 10,684
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	4,905		4,905		4,905
Building and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	119,773		119,773		119,324
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	108,775		108,775		103,362
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	13,324		13,324		12,672
Construction in process
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 93,944		$ 93,944		$ 47,482

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Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill as of June 30, 2023	$ 100,577
Effect of foreign currency changes on goodwill	156
Goodwill as of December 31, 2023	100,733
Malibu
Goodwill [Roll Forward]
Goodwill as of June 30, 2023	12,072
Effect of foreign currency changes on goodwill	156
Goodwill as of December 31, 2023	12,228
Saltwater Fishing
Goodwill [Roll Forward]
Goodwill as of June 30, 2023	68,714
Effect of foreign currency changes on goodwill	0
Goodwill as of December 31, 2023	68,714
Cobalt
Goodwill [Roll Forward]
Goodwill as of June 30, 2023	19,791
Effect of foreign currency changes on goodwill	0
Goodwill as of December 31, 2023	$ 19,791

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Goodwill and Other Intangible Assets - Schedule of Components of Other Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 134,528	$ 134,471
Less: Accumulated amortization	(34,679)	(31,213)
Total definite-lived intangible assets, net	99,849	103,258
Indefinite-lived intangible:
Total other intangible assets, net	218,049	221,458
Trade name
Indefinite-lived intangible:
Trade name	118,200	118,200
Dealer relationships
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 131,780	131,725
Weighted-Average Remaining Useful Life (in years)	15 years 1 month 6 days
Dealer relationships | Minimum
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	15 years
Dealer relationships | Maximum
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	20 years
Patent
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 2,600	2,600
Estimated Useful Life (in years)	15 years
Weighted-Average Remaining Useful Life (in years)	8 years 6 months
Trade name
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 100	100
Estimated Useful Life (in years)	15 years
Weighted-Average Remaining Useful Life (in years)	6 years 6 months
Non-compete agreement
Schedule of Finite Lived Intangible Assets and Infinite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 48	$ 46
Estimated Useful Life (in years)	10 years
Weighted-Average Remaining Useful Life (in years)	9 months 18 days

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Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1,713	$ 1,715	$ 3,428	$ 3,431

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Goodwill and Other Intangible Assets - Estimated Future Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 3,378
2025	6,807
2026	6,805
2027	6,805
2028	6,805
2029 and thereafter	69,249
Total definite-lived intangible assets, net	$ 99,849	$ 103,258

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Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Payables and Accruals [Abstract]
Warranties	$ 40,587	$ 41,709
Dealer incentives	21,911	14,996
Accrued compensation	12,525	19,671
Current operating lease liabilities	2,283	2,324
Litigation settlement	0	100,000
Accrued legal and professional fees	21,715	1,899
Customer deposits	5,412	4,054
Other accrued expenses	2,283	2,425
Total accrued expenses	$ 106,716	$ 187,078

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Accrued Expenses - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Loss Contingencies [Line Items]
Litigation settlement	$ 0	$ 100,000
Batchelder et al. v. Malibu Boats, LLC
Loss Contingencies [Line Items]
Proceeds from insurance coverage	$ 21,000
Settled Litigation | Product Liability Cases
Loss Contingencies [Line Items]
Litigation settlement		$ 100,000

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Product Warranties - Narrative (Details)	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Product Warranty Liability [Line Items]
Standard product warranty, period, year four	4 years
Standard product warranty, period, year five	5 years
Malibu and Axis Brand Boats | Gelcoat
Product Warranty Liability [Line Items]
Standard product warranty, period	1 year
Malibu and Axis Brand Boats | Engines
Product Warranty Liability [Line Items]
Standard product warranty, term, hours	500 hours
Cobalt | Structural Warranty
Product Warranty Liability [Line Items]
Standard product warranty, period	5 years
Cobalt | Bow-to-stern
Product Warranty Liability [Line Items]
Standard product warranty, period		5 years	3 years
Saltwater Fishing | Bow-to-stern
Product Warranty Liability [Line Items]
Standard product warranty, period	2 years
Maverick, Pathfinder, and Hewes Brand Boats | Bow-to-stern
Product Warranty Liability [Line Items]
Standard product warranty, period	1 year
Cobia | Bow-to-stern
Product Warranty Liability [Line Items]
Standard product warranty, period	3 years
Malibu Brand Boats
Product Warranty Liability [Line Items]
Standard product warranty, period				5 years	3 years
Axis Boats
Product Warranty Liability [Line Items]
Standard product warranty, period				5 years	2 years
Maximum | Malibu and Axis Brand Boats
Product Warranty Liability [Line Items]
Standard product warranty, period	5 years
Maximum | Malibu and Axis Brand Boats | Engines
Product Warranty Liability [Line Items]
Standard product warranty, period	5 years
Maximum | Cobalt | Structural Warranty
Product Warranty Liability [Line Items]
Standard product warranty, period	10 years
Maximum | Cobalt | Gelcoat
Product Warranty Liability [Line Items]
Standard product warranty, period	3 years
Maximum | Saltwater Fishing | Structural Warranty And Gelcoat
Product Warranty Liability [Line Items]
Standard product warranty, period	5 years
Maximum | Maverick, Pathfinder, and Hewes Brand Boats | Structural Warranty And Gelcoat
Product Warranty Liability [Line Items]
Standard product warranty, period	5 years
Maximum | Cobia | Structural Warranty And Gelcoat
Product Warranty Liability [Line Items]
Standard product warranty, period	10 years

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Product Warranties - Schedule of Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 41,597	$ 39,399	$ 41,709	$ 38,673
Add: Warranty expense	6,622	6,682	13,037	13,087
Less: Warranty claims paid	(7,632)	(5,568)	(14,159)	(11,247)
Ending balance	$ 40,587	$ 40,513	$ 40,587	$ 40,513

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Financing - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Line of Credit Facility [Line Items]
Total debt	$ 35,000	$ 0
Less current maturities	0	0
Long-term debt less current maturities	35,000	0
Long-Term Debt | Credit Agreement
Line of Credit Facility [Line Items]
Total debt	0	0
Line of Credit | Revolving Credit Facility | Credit Agreement
Line of Credit Facility [Line Items]
Total debt	$ 35,000	$ 0

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Financing - Narrative (Details) - USD ($)	6 Months Ended
	Dec. 31, 2023	Jul. 08, 2022
Credit Agreement
Line of Credit Facility [Line Items]
Letters of credit outstanding	$ 1,578,000
Effective interest rate (as a percent)	6.41%
Maximum amount, purchase of stock or stock options (up to)	$ 5,000,000
Consolidated leverage ratio	2.75
Incremental Term Loans
Line of Credit Facility [Line Items]
Outstanding principal		$ 200,000,000
Revolving Credit Facility | Credit Agreement
Line of Credit Facility [Line Items]
Remaining borrowing capacity	$ 313,422,000
Revolving Credit Facility | Credit Agreement | Minimum
Line of Credit Facility [Line Items]
Unused capacity, commitment fee percentage (as a percent)	0.15%
Revolving Credit Facility | Credit Agreement | Maximum
Line of Credit Facility [Line Items]
Unused capacity, commitment fee percentage (as a percent)	0.30%
Revolving Credit Facility | Credit Agreement | Federal Funds
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	0.50%
Revolving Credit Facility | Credit Agreement | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	1.00%
Revolving Credit Facility | Credit Agreement | Base Rate | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	0.25%
Revolving Credit Facility | Credit Agreement | Base Rate | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	1.00%
Revolving Credit Facility | Credit Agreement | SOFR | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	1.25%
Revolving Credit Facility | Credit Agreement | SOFR | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	2.00%
Line of Credit | Revolving Credit Facility | Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 350,000,000
Incremental term loans, amount	$ 35,000,000

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Leases - Schedule of Assets and Liabilities, Lessee (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Assets
Right-of-use assets	$ 7,866	$ 8,808
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets	Other assets
Liabilities
Current operating lease liabilities	$ 2,283	$ 2,324
Long-term operating lease liabilities	6,790	7,843
Total lease liabilities	$ 9,073	$ 10,167
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses	Accrued expenses
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other liabilities	Other liabilities

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Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Operating Leased Assets [Line Items]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 666	$ 622	$ 1,330	$ 1,245
Cost of sales
Operating Leased Assets [Line Items]
Operating lease costs	639	646	1,344	1,313
Selling and marketing, and general and administrative
Operating Leased Assets [Line Items]
Operating lease costs	204	237	444	456
Other (income) expense, net
Operating Leased Assets [Line Items]
Sublease income	$ (9)	$ (9)	$ (19)	$ (19)

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Leases - Narrative (Details)	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted average remaining lease term (in years)	4 years 29 days	5 years 29 days
Weighted average discount rate (as a percent)	3.69%	3.64%

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Leases - Schedule of Operating Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Amount
Remainder of 2024	$ 1,336
2025	2,373
2026	2,274
2027	2,258
2028	1,505
2029 and thereafter	1
Total	9,747
Less: imputed interest	(674)
Present value of lease liabilities	$ 9,073	$ 10,167

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Tax Receivable Agreement Liability - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Tax Receivable Agreement [Abstract]
Tax receivable agreement, percentage of realized cash saving in tax to be pass through (as a percent)	85.00%
Investment in subsidiaries	$ 118,148	$ 118,148
Period of next annual payment (in days)	75 days

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Tax Receivable Agreement Liability - Schedule of Tax Agreement Liability (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Tax Receivable Agreement [Roll Forward]
Beginning fiscal year balance	$ 43,465	$ 45,541
Additions (reductions) to tax receivable agreement:
Exchange of LLC Units for Class A Common Stock	0	1,710
Adjustment for change in estimated state tax rate or benefits	0	188
Payments under tax receivable agreement	0	(3,974)
Ending fiscal year balance	43,465	43,465
Less: current portion under tax receivable agreement	(4,111)	(4,111)
Ending balance	$ 39,354	$ 39,354

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Valuation allowance	$ 16,753		$ 16,753		$ 16,876
Foreign tax credits	$ 580		$ 580		$ 580
Effective tax rate (as a percent)	27.80%	23.50%	26.00%	23.40%

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Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended
	Nov. 27, 2023 USD ($) award $ / shares shares	Nov. 06, 2023 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 USD ($)	Jan. 01, 2014 shares
Restricted Stock Units (RSUs) | Non-Employee Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)			10,675		11,477
Restricted Stock Units and Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)					230,031
Vested (in shares)					91,683
Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense | $			$ (1,600)
Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance in the Long-Term Incentive Plan (in shares)							1,700,000
Number of shares available for grant (in shares)			204,722		204,722
Stock compensation expense | $			$ (137)	$ 2,016	$ 1,323	$ 3,651
Long-Term Incentive Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)		79,000
Long-Term Incentive Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)		35,000
Long-Term Incentive Plan | Restricted Stock Units and Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period | $		$ 5,116
Share price (in dollars per share) | $ / shares		$ 44.87
Long-Term Incentive Plan | Restricted Stock Units and Restricted Stock Awards | Period one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting percentage (as a percent)		70.00%
Restricted stock vesting period (in years)		3 years
Long-Term Incentive Plan | Restricted Stock Units and Restricted Stock Awards | Period two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting percentage (as a percent)		30.00%
Restricted stock vesting period (in years)		4 years
Long-Term Incentive Plan | Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)		26,000
Grants in period | $		$ 1,167
Share price (in dollars per share) | $ / shares		$ 44.87
Maximum number of shares available for issue if target is met		39,000
Long-Term Incentive Plan | Stock Awards with Market Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)		26,000
Grants in period | $		$ 1,284
Maximum number of shares available for issue if target is met		52,000
Long-Term Incentive Plan | Service Based Stock Award | Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period | $	$ 600
Share price (in dollars per share) | $ / shares	$ 44.85
Number of awards granted | award	2
Long-Term Incentive Plan | Service Based Stock Award | Period one | Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)	7,000
Restricted stock vesting period (in years)	2 years
Long-Term Incentive Plan | Service Based Stock Award | Period two | Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)	6,000
Restricted stock vesting period (in years)	4 years

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Stock-Based Compensation - Stock Options (Details)	6 Months Ended
	Dec. 31, 2023 $ / shares shares
Shares
Outstanding options at beginning of period (in shares) | shares	17,973
Options granted (in shares) | shares	0
Options exercised (in shares) | shares	0
Outstanding options at end of period (in shares) | shares	17,973
Exercisable at end of period (in shares) | shares	17,973
Weighted-Average Exercise Price/Share
Outstanding options at beginning of period (in dollars per share) | $ / shares	$ 37.55
Options granted (in dollars per share) | $ / shares	0
Options exercised (in dollars per share) | $ / shares	0
Outstanding options at end of period (in dollars per share) | $ / shares	37.55
Exercisable at end of period (in dollars per share) | $ / shares	$ 37.55

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Stock-Based Compensation - Summary of Changes in Non-vested Restricted Shares (Details) - Restricted Stock Units and Restricted Stock Awards	6 Months Ended
	Dec. 31, 2023 $ / shares shares
Number of Restricted Stock Units and Restricted Stock Awards Outstanding
Total Non-vested Restricted Stock Units and Restricted Stock Awards at beginning of period (in shares) | shares	324,824
Granted (in shares) | shares	230,031
Vested (in shares) | shares	(91,683)
Forfeited (in shares) | shares	(24,983)
Total Non-vested Restricted Stock Units and Restricted Stock Awards at end of period (in shares) | shares	438,189
Weighted-Average Grant Date Fair Value
Total Non-vested Restricted Stock Units and Restricted Stock Awards at beginning of period (in dollars per share) | $ / shares	$ 57.98
Granted (in dollars per share) | $ / shares	44.95
Vested (in dollars per share) | $ / shares	54.79
Forfeited (in dollars per share) | $ / shares	54.57
Total Non-vested Restricted Stock Units and Restricted Stock Awards at end of period (in dollars per share) | $ / shares	$ 52.00

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Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Basic:
Net income attributable to Malibu Boats, Inc.	$ 9,881	$ 35,162	$ 30,140	$ 70,045
Shares used in computing basic net income per share:
Basic weighted-average shares outstanding (in shares)	20,375,750	20,404,583	20,481,119	20,432,216
Basic net income per share (in dollars per share)	$ 0.49	$ 1.73	$ 1.47	$ 3.43
Diluted:
Net income attributable to Malibu Boats, Inc.	$ 9,881	$ 35,162	$ 30,140	$ 70,045
Shares used in computing diluted net income per share:
Basic weighted-average shares outstanding (in shares)	20,375,750	20,404,583	20,481,119	20,432,216
Diluted weighted-average shares outstanding (in shares)	20,450,204	20,516,025	20,567,218	20,559,752
Diluted net income per share (in dollars per share)	$ 0.49	$ 1.72	$ 1.47	$ 3.41
Antidilutive securities (in shares)	597,673	761,150	533,968	761,150
Restricted Stock Units (RSUs)
Shares used in computing basic net income per share:
Weighted average number of shares issued, basic (in shares)	272,292	254,949	268,270	249,520
Shares used in computing diluted net income per share:
Awards granted to employees (in shares)	24,108	49,725	44,613	64,419
Stock Options
Shares used in computing diluted net income per share:
Awards granted to employees (in shares)	3,899	11,889	4,654	13,289
Performance Awards
Shares used in computing diluted net income per share:
Awards granted to employees (in shares)	46,447	49,828	36,832	49,828
Class A Common Stock
Shares used in computing basic net income per share:
Weighted average number of shares issued, basic (in shares)	20,103,458	20,149,634	20,212,849	20,182,696

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Commitments and Contingencies (Details) $ in Thousands				3 Months Ended		6 Months Ended
	Jul. 25, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 28, 2023 USD ($)	Dec. 31, 2023 USD ($) unit	Dec. 31, 2022 unit	Dec. 31, 2023 USD ($) unit	Dec. 31, 2022 USD ($) unit
Loss Contingencies [Line Items]
Floor financing, repurchase obligations		$ 385,448		$ 478,364		$ 478,364
Number of repurchase units | unit				0	0	0	0
Financing receivables		0		$ 0		$ 0
Purchases of property, plant and equipment	$ 25,500		$ 33,300			52,101	$ 22,339
Escrow deposit		7,800
Capital expenditures incurred						11,500
Capital expenditures in accounts payable	$ 7,900
Batchelder et al. v. Malibu Boats, LLC
Loss Contingencies [Line Items]
Litigation settlement, amount paid		100,000				100,000
Insurance coverage		$ 26,000
Proceeds from insurance coverage						$ 21,000

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Segment Reporting - Narrative (Details)	6 Months Ended
	Dec. 31, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	3

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Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Segment Reporting Information [Line Items]
Net sales	$ 211,074	$ 338,732	$ 466,904	$ 640,943
Income before provision for income taxes	14,050	47,581	41,798	94,709
Total assets	879,996		879,996		$ 925,924
Malibu
Segment Reporting Information [Line Items]
Net sales	76,389	158,166	181,394	303,334
Income before provision for income taxes	3,905	29,055	15,842	56,971
Total assets	196,436		196,436		249,447
Saltwater Fishing
Segment Reporting Information [Line Items]
Net sales	82,734	105,585	175,356	197,818
Income before provision for income taxes	5,865	11,021	14,860	21,281
Total assets	429,394		429,394		432,806
Cobalt
Segment Reporting Information [Line Items]
Net sales	51,951	74,981	110,154	139,791
Income before provision for income taxes	4,280	$ 7,505	11,096	$ 16,457
Total assets	$ 254,166		$ 254,166		$ 243,671

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Subsequent Events (Details) - Subsequent Event	1 Months Ended
	Jan. 30, 2024 numberOfUnitHolder shares
Subsequent Event [Line Items]
Number of noncontrolling LLC unit holders | numberOfUnitHolder	3
Common units exchanged (in shares)	131,000
Class A Common Stock
Subsequent Event [Line Items]
Number of shares exchanged for LLC units (in shares)	131,000
Class B Common Stock
Subsequent Event [Line Items]
Stock retired (in shares)	0