UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

	

 
  
FORM 8-K

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

Date of Report (Date of earliest event reported): May 3, 2017

	

MALIBU BOATS, INC.
(Exact Name of Registrant as specified in its charter)
Commission file number: 001-36290

					
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)	 	 	

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

	
		
o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 	 	
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 	 	
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 	 	
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

Item 2.02. Results of Operations and Financial Condition.
On May 3, 2017, Malibu Boats, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal 2017 third quarter ended March 31, 2017 . A copy of the Company’s press release is being furnished hereto as Exhibit 99.1 and incorporated into this Item by reference.        

Item 9.01 Financial Statements and Exhibits.
(d)    Exhibits
The following exhibit is being furnished as part of this report:

	
			
Exhibit No.	 	Description	
 	 	 	
Exhibit 99.1	 	Press Release dated May 3, 2017	

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 hereunto duly authorized.

			
 	 	Malibu Boats, Inc.	
 	 	 	
Date: May 3, 2017	 	/s/ Jack Springer	
 	 	Jack Springer	
 	 	Chief Executive Officer	

Exhibit 99.1

MALIBU BOATS, INC. ANNOUNCES THIRD QUARTER FISCAL 2017 RESULTS
Loudon, TN - May 3, 2017 - Malibu Boats, Inc. (Nasdaq: MBUU) today announced its financial results for the third quarter of fiscal 2017 ended March 31, 2017 .
Highlights for the Third Quarter of Fiscal 2017
		
•	Net sales increased 12.6% to $77.1 million compared to the third quarter of fiscal 2016 .	
		
•	Unit volume increased  10.4%  to  1,054 boats compared to the third quarter of fiscal 2016 .	
		
•	Net sales per unit increased 2.0% to $ 73,196 and net sales per unit in the U.S. increased 1.2% to $72,749 compared to the third quarter of fiscal 2016 .	
		
•	Gross profit increased 16.1% to $21.4 million compared to the third quarter of fiscal 2016 .	
		
•	Net income increased 35.9% to $8.8 million , or $0.45 per share compared to the third quarter of fiscal 2016 .	
		
•	Adjusted EBITDA increased 19.0% to $16.8 million compared to the third quarter of fiscal 2016 .	
		
•	Adjusted fully distributed net income increased 22.2% to $9.4 million compared to the third quarter of fiscal 2016 .	
		
•	Adjusted fully distributed net income per share increased 22.5% to $0.49 o n a fully distributed weighted average share count of  19.3 million  shares of Class A Common Stock as compared to the third quarter of fiscal 2016 .	
Jack Springer, Chief Executive Officer, stated, "We continue to experience strong growth and performance at Malibu. Our unit sales, revenue, gross profit, net income and Adjusted EBITDA are all company records for our fiscal third quarter. Our business in the United States continues to experience good growth while Canada is performing slightly better than last year and Australia remains consistently strong for Malibu. Our market share remains at record levels and our best-in-class operations continue to drive strong margins.
Malibu's leadership delivering new product to market continues, led by the strength of demand for our new boats for 2017 as well as innovations and features that surpass the competition. In addition, our new product platform is generating demand and we have every confidence this trend will continue into the foreseeable future.
Mr. Springer continued, "We are pleased to see the slight rebound in Canada this year despite currency rates being high and the oil and gas environment still soft. Demand in other parts of the world remain soft and we expect that those areas will remain flat. However, we are confident that North America will continue to grow, with the U.S. domestic market leading the way.”

1 

Exhibit 99.1

Results of Operations for the Third Quarter of Fiscal 2017

																	
 	 	Three Months Ended March 31,	 	Nine Months Ended March 31,	
 	 	2017	 	2016	 	2017	 	2016	
 	 	(In thousands, except unit and per unit data)	
Net sales	 	$	77,149		 	$	68,539		 	$	206,831		 	$	186,285		
Cost of sales	 	55,787		 	50,133		 	151,833		 	137,290		
Gross profit	 	21,362		 	18,406		 	54,998		 	48,995		
Operating expenses:	 	 	 	 	 	 	 	 	
Selling and marketing	 	1,789		 	1,574		 	6,362		 	5,998		
General and administrative	 	5,997		 	4,462		 	15,514		 	13,281		
Amortization	 	550		 	545		 	1,649		 	1,637		
Operating income	 	13,026		 	11,825		 	31,473		 	28,079		
Other expense, net:	 	 	 	 	 	 	 	 	
Other income	 	41		 	40		 	116		 	64		
Interest expense	 	(416	)	 	(1,249	)	 	(883	)	 	(2,927	)	
Other expense, net	 	(375	)	 	(1,209	)	 	(767	)	 	(2,863	)	
Income before provision for income taxes	 	12,651		 	10,616		 	30,706		 	25,216		
Provision for income taxes	 	3,805		 	4,109		 	9,897		 	9,011		
Net income	 	8,846		 	6,507		 	20,809		 	16,205		
Net income attributable to non-controlling interest	 	833		 	731		 	2,115		 	1,767		
Net income attributable to Malibu Boats, Inc.	 	$	8,013		 	$	5,776		 	$	18,694		 	$	14,438		
 	 	 	 	 	 	 	 	 	
Unit volumes	 	1,054		 	955		 	2,811		 	2,647		
Net sales per unit	 	$	73,196		 	$	71,769		 	$	73,579		 	$	70,376		
Comparison of the Third Quarter Ended March 31, 2017 to the Third Quarter Ended March 31, 2016
Net sales for the three months ended March 31, 2017 increased $8.6 million , or 12.6% , to $77.1 million as compared to the three months ended March 31, 2016 . Included in net sales for each of the three months ended March 31, 2017 and March 31, 2016 were net sales of $5.5 million , attributable to our Australian business. Unit volume for the three months ended March 31, 2017 increased 99 units, or 10.4% , to 1,054 units as compared to the three months ended March 31, 2016 driven by demand for our new models such as the Malibu Wakesetter 21 VLX and 22 and 24 MXZs. Net sales per unit increased 2.0% to $73,196 per unit for the three months ended March 31, 2017 compared to the three months ended March 31, 2016 , primarily driven by year over year price increases and lower discount activity, offset by a mix shift to our new Response and 21 VLX models. Net sales per unit in the U.S. increased 1.2% to $72,749 for the three months ended March 31, 2017 compared to the three months ended March 31, 2016 .
Cost of sales for the three months ended March 31, 2017 increased $5.7 million , or 11.3% , to $55.8 million as compared to the three months ended March 31, 2016 . The increase in cost of sales was driven primarily by increased volumes, higher labor costs per unit, and an increase in warranty expense. Included in cost of sales were $0.1 million in costs related to our engines vertical integration initiative.
Gross profit for the three months ended March 31, 2017 increased $3.0 million , or 16.1% , to $21.4 million compared to the three months ended March 31, 2016 . The increase in gross profit was due mainly to higher volumes. Gross margin for the three months ended March 31, 2017 increased 80 basis points from 26.9% to 27.7% over the same period in the prior fiscal year. The increase in gross margin was driven primarily by lower material cost per unit, offset by increases in labor and warranty expense.

2 

Exhibit 99.1

Selling and marketing expenses for the three month period ended March 31, 2017 increased $0.2 million or 13.7% , compared to the three months ended March 31, 2016 . As a percentage of sales, selling and marketing expenses were flat over the same period. General and administrative expenses for the three months ended March 31, 2017 increased $1.5 million , or 34.4% , to $6.0 million as compared to the three months ended March 31, 2016 , largely due to an increase in legal expenses incurred in connection with ongoing litigation matters as well as higher incentive compensation and development costs associated with our engines vertical integration initiative which we initiated in fiscal year 2017.
Operating income for the third quarter of fiscal 2017 increased to $13.0 million from $11.8 million in the third quarter of fiscal 2016 . Net income for the third quarter of fiscal 2017 increased 35.9% to $8.8 million while net income margin increased to 11.5% from 9.5% in the third quarter of fiscal 2016 . Adjusted EBITDA in the third quarter of fiscal 2017 increased 19.0% to $16.8 million from $14.1 million , while Adjusted EBITDA margin increased to 21.8% from 20.6% in the third quarter of fiscal 2016 .
Webcast and Conference Call Information
The Company will host a webcast and conference call to discuss third quarter fiscal 2017 results on Wednesday, May 3, 2017, at 8:30 a.m. Eastern Time. Investors and analysts can participate on the conference call by dialing (855) 433-0928 or (484) 756-4263 and using Conference ID #10710106 .
Alternatively, interested parties can listen to a live webcast of the conference call by logging on to the Investor Relations section on the Company’s website at http://investors.malibuboats.com . A replay of the webcast will also be archived on the Company’s website for twelve months.
About Malibu Boats, Inc.
Malibu Boats is a leading designer, manufacturer and marketer of performance sport boats, with the #1 market share position in the United States since 2010. The Company has two brands of performance sport boats, Malibu and Axis Wake Research (Axis). Since inception in 1982, the Company has been a consistent innovator in the powerboat industry, designing products that appeal to an expanding range of recreational boaters and water sports enthusiasts whose passion for boating and water sports is a key aspect of their lifestyle.
Forward Looking Statements
This press release includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements can be identified by such words and phrases as “believes,” “anticipates,” “expects,” “intends,” “estimates,” “may,” “will,” “should,” “continue” and similar expressions, comparable terminology or the negative thereof, and includes the statement in this press release regarding the expected demand and outlook for our product.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to: general industry, economic and business conditions, demand for our products, changes in consumer preferences, competition within our industry, our reliance on our network of independent dealers, our ability to manage our manufacturing levels and our large fixed cost base, the successful introduction of our new products, and other factors affecting us detailed from time to time in our filings with the Securities and Exchange Commission. Many of these risks and uncertainties are outside our control, and there may be other risks and uncertainties which we do not currently anticipate because they relate to events and depend on circumstances that may or may not occur in the future. Although we believe that the expectations reflected in any forward-looking statements are based on reasonable assumptions at the time made, we can give no assurance that our expectations will be achieved. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation (and we expressly disclaim any obligation) to update or supplement any forward-looking statements that may become untrue because of subsequent events, whether because of new information, future events, changes in assumptions or otherwise. Comparison of results for current and prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

3 

Exhibit 99.1

Use and Definition of Non-GAAP Financial Measures
This release includes the following financial measures defined as non-GAAP financial measures by the SEC: Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Fully Distributed Net Income. These measures have limitations as analytical tools 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 these non-GAAP financial measures should also not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of these non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
We define Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, amortization and non-cash, non-recurring or non-operating expenses, including certain professional fees, acquisition and integration related expenses, non-cash compensation expense and certain product development costs. 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 are useful because they allow management to evaluate our operating performance and compare the results of our operations from period to period and against our peers 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.
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 Units ("LLC Units") of Malibu Boats Holdings, LLC (the "LLC") 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 (assuming no income attributable to non-controlling interests) 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 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 press release, may differ from and may, therefore, not be comparable to similarly titled measures used by other companies.
A reconciliation of our net income as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin, and of our net income attributable to Malibu Boats, Inc. to Adjusted Fully Distributed Net Income is provided under "Reconciliation of Non-GAAP Financial Measures".

Investor Contacts                     

Malibu Boats, Inc.
Wayne Wilson
Chief Financial Officer
(865) 458-5478

4 

Exhibit 99.1

Zac Lemons
Investor Relations
(865) 458-5478
InvestorRelations@MalibuBoats.com

5 

Exhibit 99.1

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 March 31,	 	Nine Months Ended March 31,	
 	2017	 	2016	 	2017	 	2016	
Net sales	$	77,149		 	$	68,539		 	$	206,831		 	$	186,285		
Cost of sales	55,787		 	50,133		 	151,833		 	137,290		
Gross profit	21,362		 	18,406		 	54,998		 	48,995		
Operating expenses:	 	 	 	 	 	 	 	
Selling and marketing	1,789		 	1,574		 	6,362		 	5,998		
General and administrative	5,997		 	4,462		 	15,514		 	13,281		
Amortization	550		 	545		 	1,649		 	1,637		
Operating income	13,026		 	11,825		 	31,473		 	28,079		
Other expense, net:	 	 	 	 	 	 	 	
Other income	41		 	40		 	116		 	64		
Interest expense	(416	)	 	(1,249	)	 	(883	)	 	(2,927	)	
Other expense, net	(375	)	 	(1,209	)	 	(767	)	 	(2,863	)	
Income before provision for income taxes	12,651		 	10,616		 	30,706		 	25,216		
Provision for income taxes	3,805		 	4,109		 	9,897		 	9,011		
Net income	$	8,846		 	$	6,507		 	20,809		 	16,205		
Net income attributable to non-controlling interest	833		 	731		 	2,115		 	1,767		
Net income attributable to Malibu Boats, Inc.	$	8,013		 	$	5,776		 	$	18,694		 	$	14,438		
 	 	 	 	 	 	 	 	
Comprehensive income:	
Net income	$	8,846		 	$	6,507		 	$	20,809		 	$	16,205		
Other comprehensive income, net of tax:	 	 	 	 	 	 	 	
Change in cumulative translation adjustment	867		 	686		 	378		 	37		
Other comprehensive income, net of tax	867		 	686		 	378		 	37		
Comprehensive income, net of tax	9,713		 	7,193		 	21,187		 	16,242		
Less: comprehensive income attributable to non-controlling interest, net of tax	$	923		 	$	808		 	2,153		 	1,774		
Comprehensive income attributable to Malibu Boats, Inc., net of tax	$	8,790		 	$	6,385		 	$	19,034		 	$	14,468		
 	 	 	 	 	 	 	 	
Weighted average shares outstanding used in computing net income per share:	
Basic	17,877,152		 	17,975,714		 	17,799,221		 	17,968,106		
Diluted	17,962,286		 	18,002,858		 	17,887,266		 	18,022,339		
Net income available to Class A Common Stock per share:	
Basic	$	0.45		 	$	0.32		 	$	1.05		 	$	0.80		
Diluted	$	0.45		 	$	0.32		 	$	1.05		 	$	0.80		

6 

Exhibit 99.1

MALIBU BOATS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)

	
								
 	March 31, 2017	 	June 30, 2016	
Assets	 		 	 		
Current assets	 		 	 		
Cash	$	32,295		 	$	25,921		
Trade receivables, net	14,724		 	14,690		
Inventories, net	27,365		 	20,431		
Prepaid expenses and other current assets	2,311		 	2,707		
Income tax receivable	—		 	965		
Total current assets	76,695		 	64,714		
Property and equipment, net	21,954		 	17,813		
Goodwill	12,654		 	12,470		
Other intangible assets, net	10,133		 	11,703		
Deferred tax asset	113,480		 	115,594		
Other assets	108		 	32		
Total assets	$	235,024		 	$	222,326		
Liabilities	 		 	 		
Current liabilities	 		 	 		
Current maturities of long-term debt	$	—		 	$	8,000		
Accounts payable	18,979		 	16,158		
Accrued expenses	21,414		 	19,055		
Income taxes and tax distribution payable	1,803		 	427		
Payable pursuant to tax receivable agreement, current portion	4,360		 	4,189		
Total current liabilities	46,556		 	47,829		
Deferred tax liabilities	609		 	685		
Payable pursuant to tax receivable agreement	90,612		 	89,561		
Long-term debt	55,152		 	63,086		
Other long-term liabilities	275		 	1,136		
Total liabilities	193,204		 	202,297		
Stockholders' Equity	 		 	 		
Class A Common Stock, par value $0.01 per share, 100,000,000 shares authorized; 17,930,617 shares issued and outstanding as of March 31, 2017; 17,690,874 issued and outstanding as of June 30, 2016	179		 	176		
Class B Common Stock, par value $0.01 per share, 25,000,000 shares authorized; 19 shares issued and outstanding as of March 31, 2017; 23 shares issued and outstanding as of June 30, 2016	—		 	—		
Preferred Stock, par value $0.01 per share; 25,000,000 shares authorized; no shares issued and outstanding as of March 31, 2017 and June 30, 2016	—		 	—		
Additional paid in capital 1	50,545		 	45,947		
Accumulated other comprehensive loss	(2,093	)	 	(2,471	)	
Accumulated deficit	(9,585	)	 	(28,302	)	
Total stockholders' equity attributable to Malibu Boats, Inc.	39,046		 	15,350		
Non-controlling interest	2,774		 	4,679		
Total stockholders’ equity 1	41,820		 	20,029		
Total liabilities and stockholders' equity	$	235,024		 	$	222,326		
1 For fiscal year 2016, we identified an immaterial error related to the understatement of deferred tax assets and paid in capital attributable to a book to tax difference in our investment in the LLC. The correction of this error resulted in an increase in deferred tax assets of $1,796 with a corresponding increase for the same amount in additional paid in capital within stockholder's equity on the audited consolidated balance sheet as of June 30, 2016.

7 

Exhibit 99.1

MALIBU BOATS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures

Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin (Unaudited):
The following table sets forth a reconciliation of net income as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated (dollars in thousands):

																
 	Three Months Ended March 31,	 	Nine Months Ended March 31,	
 	2017	 	2016	 	2017	 	2016	
Net income	$	8,846		 	$	6,507		 	$	20,809		 	$	16,205		
Provision for income taxes	3,805		 	4,109		 	9,897		 	9,011		
Interest expense	416		 	1,249		 	883		 	2,927		
Depreciation	1,050		 	833		 	3,044		 	2,449		
Amortization	550		 	545		 	1,649		 	1,637		
Professional fees 1	1,159		 	404		 	3,145		 	622		
Marine Power litigation judgment 2	—		 	—		 	(1,330	)	 	—		
Acquisition and integration related expenses 3	—		 	—		 	—		 	401		
Stock-based compensation expense 4	325		 	459		 	1,070		 	1,464		
Engine development 5	630		 	—		 	1,090		 	—		
Adjusted EBITDA	$	16,781		 	$	14,106		 	$	40,257		 	$	34,716		
Adjusted EBITDA margin	21.8	%	 	20.6	%	 	19.5	%	 	18.6	%	

		
(1)	Represents legal and advisory fees related to our litigation with MasterCraft Boat Company, LLC ("MasterCraft").	
(2)	Represents the reduction in a one-time charge related to a judgment rendered against us in connection with a lawsuit by Marine Power Holdings, LLC ("Marine Power") where the court amended the judgment to $1.9 million.	
(3)	Represents legal and advisory fees as well as integration related costs incurred in connection with certain acquisition activities.	
(4)	Represents equity-based incentives awarded to key 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.	
(5)	Represents costs incurred in connection with our vertical integration of engines including product development costs and supplier transition performance incentives.	

8 

Exhibit 99.1

Reconciliation of Non-GAAP Adjusted Fully Distributed Net Income (Unaudited):
The following table sets forth a reconciliation of net income attributable to Malibu Boats, Inc. to Adjusted Fully Distributed Net Income for the periods presented (dollars in thousands, except share and per share data):

																	
 	 	Three Months Ended March 31,	 	Nine Months Ended March 31,	
 	 	2017	 	2016	 	2017	 	2016	
 	 	 	 	 	 	 	 	 	
Net income attributable to Malibu Boats, Inc.	 	$	8,013		 	$	5,776		 	$	18,694		 	$	14,438		
Provision for income taxes	 	3,805		 	4,109		 	9,897		 	9,011		
Professional fees 1	 	1,159		 	404		 	3,145		 	622		
Acquisition and integration related expenses 2	 	—		 	—		 	—		 	401		
Fair market value adjustment for interest rate swap 3	 	(116	)	 	510		 	(941	)	 	685		
Stock-based compensation expense 4	 	325		 	459		 	1,070		 	1,464		
Marine Power litigation judgment 5	 	—		 	—		 	(1,330	)	 	—		
Engine development 6	 	630		 	—		 	1,090		 	—		
Net income attributable to non-controlling interest 7	 	833		 	731		 	2,115		 	1,767		
Fully distributed net income before income taxes	 	14,649		 	11,989		 	33,740		 	28,388		
Income tax expense on fully distributed income before income taxes 8	 	5,201		 	4,256		 	11,978		 	10,078		
Adjusted fully distributed net income	 	9,448		 	7,733		 	$	21,762		 	$	18,310		
 	 	 	 	 	 	 	 	 	
Adjusted Fully Distributed Net Income per share of Class A Common Stock 9 :	 	 	 	 	 	 	 	 	
Basic	 	$	0.49		 	$	0.40		 	$	1.13		 	$	0.94		
Diluted	 	$	0.49		 	$	0.40		 	$	1.13		 	$	0.94		
 	 	 	 	 	 	 	 	 	
Weighted average shares of Class A Common Stock outstanding used in computing Adjusted Fully Distributed Net Income 10 :	 	 	 	 	 	 	 	 	
Basic	 	19,343,738		 	19,380,638		 	19,289,438		 	19,375,330		
Diluted	 	19,343,738		 	19,380,638		 	19,289,438		 	19,375,330		

9 

Exhibit 99.1

	
		
(1)	Represents legal and advisory fees related to our litigation with MasterCraft.	
(2)	Represents legal and advisory fees as well as integration related costs incurred in connection with certain acquisition activities.	
(3)	Represents the change in the fair value of our interest rate swap entered into on July 1, 2015.	
(4)	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.	
(5)	Represents the reduction in a one-time charge related to a judgment rendered against us in connection with a lawsuit by Marine Power where the court amended the judgment to $1.9 million.	
(6)	Represents costs incurred in connection with our vertical integration of engines including product development costs and supplier transition performance incentives.	
(7)	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.	
(8)	Reflects income tax expense at an estimated normalized annual effective income tax rate of 35.5% of income before income taxes for the three and nine months ended March 31, 2017 and 2016, assuming the conversion of all LLC Units into shares of Class A Common Stock. The estimated normalized annual effective income tax rate is based on the federal statutory rate plus a blended state rate adjusted for deductions under Section 199 of the Internal Revenue Code of 1986, as amended, state taxes attributable to the LLC, and foreign income taxes attributable to our Australian based subsidiary.	
(9)	Adjusted fully distributed net income divided by the shares of Class A Common Stock outstanding in (10) below.	
(10)	Represents the weighted average shares outstanding during the applicable period calculated as (i) the weighted average shares outstanding during the applicable period of Class A Common Stock, (ii) 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 and (iii) the weighted average fully vested restricted stock units outstanding during the applicable period that were convertible into Class A Common Stock and granted to directors for their services.	

10