Q3 2021 Malibu Boats Inc Earnings Call
Okay.
Good morning, and welcome to Malibu boats conference call to discuss third quarter fiscal year 'twenty 'twenty. One results at this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Please be advised that the reproduction of this.
Call in whole or in part is not permitted without written authorization of Malibu boats and as a reminder, this call is being recorded.
On the call today from management are Mr. Jack Springer, Chief Executive Officer, Mr. Wayne Wilson, Chief Financial Officer, and Mr. Ritchie Anderson, Chief operating Officer, I will turn the call over to Mr. Wilson to get started please go ahead Sir.
Thank you.
And good morning, everyone.
On the call Jack will provide commentary on the business and I will discuss our third quarter financials. We will then open the call for questions.
A press release covering the company's fiscal third quarter 'twenty 'twenty. One results was issued today and a copy of that press release can be found in the Investor Relations section of the company's website.
I also want to remind everyone that management's remarks on this call may contain certain forward looking statements, including predictions expectations estimates or other information that might be considered forward looking and that actual results could differ materially from those projected on today's call.
You should not place undue reliance on these forward looking statements, which speak only as of today and the company undertakes no obligation to update them for any new information or future events.
Factors that might affect future results are discussed in our filings with the SEC.
And we encourage you to review our SEC filings for a more detailed description of these risk factors.
Please also note that we will be referring to certain non-GAAP financial measures on today's call such as adjusted EBITDA adjusted EBITDA margin adjusted fully distributed net income and adjusted fully distributed net income per share.
Reconciliations of these non-GAAP financial measures to GAAP financial measures are included in our earnings release I.
I will now turn the call over to Jack Springer.
And thank you for joining the call.
We delivered another record setting quarter, marking the best quarter in company's history from a unit ship revenue gross profit and earnings perspective, simply put an exceptional quarter as the retail environment remains on fire and we continue to perform very well.
Importantly, Maverick was last thing on the cake, adding additional growth on top of an already outstanding quarter.
Our results once again highlight the agility of our team and strength of our flexible business model, which allowed us to post breakneck production levels for Malibu and pursuit that significantly exceeded historical levels.
Further we wasted no time igniting our newest edition Maverick boat company as they scored their fourth best production month in their history in the month of March.
All of this was achieved despite the unique set of supply chain constraints on logistics issues, resulting from COVID-19 repercussions.
Texas Winter storm, and the Kansas record setting freeze.
For the fiscal third quarter net sales increased nearly 50% to $273 million.
Gross margin increased to 26, 4%.
Adjusted EBITDA increased 57% to $57 million and adjusted EBITDA margin increased 90 basis points to 29% we fully.
We anticipate reaching our fiscal year 2020 one guidance, we raised last quarter and we are increasing our guidance again this quarter.
As the boating industry continues to experience blistering consumer demand, we are committed to delivering as many boats as possible to our sustainable and loyal customer base.
In addition, the magnitude of new customers. We are seeing entered the marine space is ice cream on the Apple pie.
Foundation of our business industry, leading innovation, a well developed vertical integration of infrastructure and operational excellence will power our steadfast path toward continued industry domination.
Customers continue to place custom orders blocking toward larger more expensive boats and invariably selecting additional features and options with command higher asp's and fuel the margin profile per boats.
Demand has continued its unprecedented trajectory with approximately 90% of all boats being built on our from fiscal fourth quarter being retail. So this is unprecedented.
By relying on our proven operational excellence initiatives, we remain confident but we will be able to maintain this record momentum throughout the remainder of our fiscal year 2021 and into 2022.
However, while we continue the postproduction what rates well ahead of historic levels during the third quarter. The supply chain remains fragile as a result of COVID-19 related challenges, which to date, we have been able to expertly navigate.
The quarter brought additional unique supply chain challenges with the Texas winter storms in Kansas free that tempered our growth somewhat at cobalt.
During the period of February record low temperatures in Kansas, We pause cobalt operations from the other shape for three days to conserve power for the town.
As the largest user of power and the time, we felt it was necessary to support our surrounding communities. During this trying time and make sure citizens have the power to heat their homes.
Petroleum related plants in Texas were also significantly hampered by the Texas storms affecting the availability of key materials, primarily resin that is needed to build boats.
The storms directly impact, resulting from Malibu and cobalt production being curtailed at various points during the quarter.
I am extremely proud of our teams in each of our brands to quickly navigate the resulting supply constraints and still deliver a record setting quarter.
During the quarter, we did not let off the accelerator as we sped toward our production development and the expansion targets more specifically during the quarter. We completed the final phase of cobalt expansion and improvement project, allowing further increases in production Kathy we will begin to see in fiscal 2022.
This expansion and improvement of the gel coat elimination areas, along with our footprint expansion for small boats and cruisers already completed in phases, one and two will enable up to a 50% revenue capacity increase overtime.
At the end of the third quarter, we broke ground to begin our 110000 square foot addition that maverick there.
This project is expected to take about 12 months and positions Maverick to increase production by 30% to 40% in units and even more in revenue as we will be able to build a greater number of larger boats with higher margin profiles.
This expansion will enable us to seize additional untapped demand.
This formula May sound familiar as it is almost exactly what we did at pursuit and this year, we are seeing that huge payback as pursuit has outperformed even our expectations for every financial metric.
As summer approaches, we are selling more boats and roasted peanuts at a baseball game.
The lack of boat shows has had exactly zero impact on orders.
Given the virtual environment, we had a state of the art virtual boat show format for Malibu, and axis, which generated a huge increase in leads.
We hosted VIP events for pursuit, and cobalt showcasing our new models and engaging with prospects and purchasers of lock in a very healthy control environment.
Lastly, we placed an increased emphasis on our digital marketing for all brands ultimately driving substantial lead generation and reducing the sales cycle.
As a result, all brands are sold out for the rest of model year 2021.
Once model year 2022 is open for orders, we fully expect the first half of the year to be book confirming the insatiable thirst for innovative and industry leading boats.
Maverick is proving to be another home run and a perfect fit with our Malibu family of brands. The integration has gone very smoothly and we're already seeing positive results from our demonstrated integration methodology, while identifying many opportunities for growth to come.
As we mentioned before orders in house from Maverick provided a 12 to 18 months of runway without taking another order.
While we have a strong opportunity to expand distribution from Maverick products, We will not act on this opportunity until we can supply existing dealers with all of the boats that they need.
Whether it would be maverick pursue or our other brands, we are committed to servicing our current dealers burst.
This will likely put any dealer expansion plans on hold until fiscal 2023.
Channel inventories remain at their lowest historical levels ever and with 90% of boats produced in the fourth quarter or any retail. So it means there will be very little provision for stock inventory at dealers.
We see most orders continuing to be retail so well into fiscal 2022, and now believe any meaningful increase in channel inventory will not be until fiscal 2023 at some point.
We also believe that inventory in the channel will not reach historically acceptable levels until fiscal 'twenty 'twenty four in our view, we have an unprecedented unprecedented 24 to 36 month ramp period to get back to normal levels based on the current retail environment.
Had it not been for the unique supply chain disruptions in the third quarter sales and gross production rates would have been even stronger we have seen a continuation of supply chain constraints in April specifically with resin and film outboard engines, which are either in port on the west coast are waiting to be accepted into the west coast ports.
We expect to continue to manage through supply chain issues through the fourth quarter and I have the utmost confidence in our team's ability to navigate any additional headwinds as demonstrated by our revised outlook for the fiscal year that we increased today.
Looking ahead, our team's unwavering commitment to our growth strategy will enable us to continue progressing on our strategic initiatives and advancement of innovation within the marine industry. We view this as a great opportunity for our brands to sustain growth, allowing dealers to have only the newest and the best models age.
Inventory on promotions are almost non existent, allowing dealers to command high margins, making them stronger as well.
We continue to see gross margin benefit from our operational excellence efficiencies and our unparalleled vertical integration strategy, which allows us to take control of a greater portion of our supply chain further differentiating Malibu from our competition.
And as always our proven acquisition strategy of acquiring premium companies with improvement opportunities remains a focus.
As we wrap up fiscal year 2021, I could not be prouder of our teams at each brand.
They have been the reason that we were able to report such a record setting results quarter after quarter.
Our team's commitment to leading the boating industry as a rep is our recipe for consistent victory in our largest catalysts for future growth.
The people on our team and our dealers make this happen we are achieving long term sustainable success and I am confident we will continue to be the clear winner in the boating space to deliver value to our shareholders.
I will now turn the call over to Wayne to take you through our financial performance in more detail.
Thanks, Jack and.
In the third quarter net sales increased 49, 8% to $273 $2 million and unit volume increased 36, 6% to 2000, and 454 boats compared to the prior year period.
This increase was driven by broad based strength in our market as evidenced by larger more expensive models across all businesses additional volume at Malibu and pursuit and our acquisition of Maverick.
The Malibu and Axis brands represented approximately 57% of unit sales or 1385 boats cobalt represented 21% or 504 boats and saltwater fishing made up the remaining 565 boats.
Consolidated net sales per unit increased nine 7% to approximately $111300 compared to the prior year period, primarily driven by a favorable mix across all of our brands.
Gross profit increased 57, 1% to.
To $72 million and gross margin was 26, 4% an increase of 130 basis points from the prior year period.
Selling and marketing expenses increased two 1%.
Zero per $1 million to $4 7 million in the third quarter of.
2021, compared to the 2022 period.
As a percentage of sales selling and marketing expense decreased 80 basis points.
General and administrative expenses increased 98% or $8 8 million to $18 $4 million as compared to the prior year period. The increase was primarily driven by acquisition and integration related costs due to the acquisition of Maverick as a percentage of sales G&A expense, excluding amortization increased 140 basis points to six.
7%.
Net income for the third quarter increased 47, 2% to $35 $1 million adjusted EBITDA for the third quarter increased 56, 7% to $57 million and adjusted EBITDA margin increased 90 basis points to 29%.
Non-GAAP adjusted fully distributed net income per share increased 61, 1% to $1 82 per share. This is calculated using a normalized C Corp tax rate of 23, 6% and a fully distributed weighted average share count of approximately $21 7 million shares for.
For a reconciliation of adjusted EBITDA and adjusted fully distributed net income per share to GAAP metrics. Please see the table in our earnings release.
Our team continues to execute at an extraordinarily high level as we deliver robust growth and margin expansion in spite of the challenges thrown our way we look forward to the remainder of our fiscal year 2021 with continued confidence as we leverage on.
Unparalleled retail demand for all of our brands drive further innovation deliver on our proven acquisition strategy and capitalize on our operational excellence.
We now expect full year revenue growth approaching 38% year over year, and adjusted EBITDA margins of approximately 25%.
As mentioned last quarter. This takes into account the impact of our acquisition of Maverick boat group for the second half of the fiscal year.
In closing our team continues to excel in today's dynamic environment. We are encouraged by the sustained heightened retail demand that our brands have been able to capture and are confident in our team's ability to harness and capitalize on this record low mentum into fiscal 'twenty through 'twenty two and beyond.
With that I'd like to open the call up for questions.
If you would like to ask a question. Please press Star then the number one on your telephone keypad again that is star then the number one on your first question is from Brett Andress with Keybanc.
Hi.
Hey, guys.
So so rolling all of these variables together like Texas, Kansas et cetera is there any way to frame up.
Maybe what unconstrained production or unconstrained margins look like for you in this environment I guess, just any sense of.
What you think is being left on the table here in the near term.
You know I think in the third quarter. The primary brands that were affected were cobalt Malibu cobalt was in the neighborhood of 75 to 80 units or so because the three days and various things like that Malibu was not particularly any days loss, but just based upon how the supply chain was working.
Certain day, who might not have been done on the same number of both US and then they rose 70 boats or so.
So Brett I think that that kind of speaks to the quarter, we're making tweaks and I think that as we get into model year 'twenty, two we're going to be able to take production up even more than where we have it today and the other thing that I would point to is that simple.
That change is going to continue to improve in my opinion.
Excuse me the further that we get away from the Texas freeze.
On the better off we are theres going to be more and more of the plants coming online and it's not going to be the issue and then I think that largely from a COVID-19 aspect. We're a year into this and people who recognize the constraints that are there and the number of people that they need in the environment that we're in from a hot retail standpoint.
So I think that we will continue to be able to build into 2022.
Got it okay.
And then just a few around retail.
One what are you seeing so far in April share in.
In terms of retail trends and then two as we get into May and June with inventories. So low in the field how are you thinking about either.
Our ability or the industry industry's ability to satisfy demand I mean are you still seeing customers put down deposits and wait for their boat even until after summer.
Yeah. So the first question Brad is not mitigated with whoever I'm talking to our dealers. It is just as hard as it has been and I think that when you're speaking terms with 90% of our units for the fourth quarter of retail so that bears that out.
We are still saying I didn't mean to I guess a couple of dealers have told me and I think this is pervasive across the industry is that there are waiting lists they're the shortage of used boats is just as significant as it is for new boats and so people are literally getting into a mantra or a mindset of I'm going to give my knee.
I'm on a listen I'll take the boat whenever it's available.
Yes.
Just to add to Jack's points, there with respect to April we literally just saw the largest flooring pay off ever for the month of April.
So so I think that's an early indication for us of the strength of retail into April while you don't have necessarily registration statistics, either from Ssi or even internally.
Might lag a little bit, but that's a relatively real time metrics. So.
On just incredible velocity.
Got it and then just a quick one how much is retail sold for fiscal 2022 at this point.
We've got to put the orders in yet, but I suspect that for the first half of the year you can't really speak to the second half yet but for the first half I think it's going to be probably well above 80%.
Alright awesome. Thanks, guys.
Thanks.
Your next question is from Mike Swartz with Jewish Securities.
Hey, Good morning, guys I think Jack you made you made the comment.
In your prepared remarks about having visibility out 24 to 36 months just given.
The the demand strength and then the lack of inventory at retail.
Give us a sense just from an operating on a production standpoint, what what that level of visibility means.
When you're planning production and in thinking about throughput over the next couple of years.
Yeah, I wouldn't say that we have visibility what I was trying to convey mark is that based upon the the heavy retail selling and we thought that by this time, we would at least be starting to put inventory into the channel. We think that we have that ramp up period of 24 to 36 months to get inventory levels back to where they would be.
As far as the bill or cutting into the production plans you know we've made a ton of investment in our facilities pursuit being one we'll see that increase we saw some of the increase this year, we will continue to see that over the coming years. What we said is that we will be able to double revenue or.
Over about a three year period, so we're well on our weighted that Maverick, we will have that completed in the fourth quarter of next year.
Easily barring anything that picks up and so we will be able to generate that call. It 40%, 50% increase in revenue over the coming period of time with cobalt, we are already seeing it manifested in our cruisers, we were taken up the cruiser count there and then as we finish now the small boat plant.
Then we will see that start picking up in the second half of this year and we continue to make investments in Malibu and there's some tweaks that we can make as well as additional investment that will help us to take.
Malibu if this continues to be the case.
And then just maybe for Wayne just in terms of the I guess the implied June quarter outlook.
Relative to your full year guidance.
Maybe give us a sense of what you're embedding in that outlook in terms of any production issues or issues sourcing product do you have on a maybe.
Cushing and therefore for anything that May go wrong.
Yeah no good question.
I would say.
If you look at our performance historically Q3 has been the strongest.
All our fiscal quarters.
And this year is no different in that way.
But as Jack said in his prepared remarks that day.
The resin situation I mean, there are challenges out there.
Some cushion it's a relatively fluid situation.
And so when we were on our last call. We said there was a decent amount of cushion and I think we demonstrated that in our performance in the quarter. The end of this quarter I think.
That's a that's a pretty solid guide there's upside, but theres just a lot of variability in that scheduling right now.
Okay, great. Thanks, a lot.
Thank you.
Your next question is from Joe <unk> with Raymond James.
Hey, guys good morning.
Just wanted to morning.
Shifting over to the margin side for a second you guys have gotten on.
To your target margin of 20% EBITDA margins earlier than you expected in large part due to the work that you've done at cobalt and pursuit for example, but what do you see on the big margin drivers going forward beyond the pursuit playbook that you guys can be following that with Maverick for example.
Beyond Maverick, Yeah, I would I think you hit it I do on them.
Kinda enunciate that a little bit we will continue to see margin uplift at pursuit.
We've got plans for bigger boats and then those bigger boats will have a higher margin per unit.
Maverick, we're same exact recipe in that we're going to be able to build more boats.
We're going to be able to build larger boats I think one of the things that I'll point out with cobalt is you've seen a pretty big increase this quarter on on the cobalt ISP and that's driven by a couple of things on new product. The arsenic series that we brought out a cobalt has been a huge impact in terms of net ASP, but the other is <unk>.
Bringing that large plant expansion online and building more boats in those larger boats. That's also influencing that ISP. So then you move over to vertical integration. We always have two to three opportunities on the table vertical integration always adds tens of basis points too.
Our margin lines and so we'll continue to grow that and then as you know you can imagine.
We had a phenomenal quarter record setting quarter, but when you have certain constraints that you're running into it's going to have an impact on your efficiency will continue to drive those efficiencies is all of our plants and so we you know what.
The final bullet down we probably have easily six to eight different variables that can continue to drive margin.
That's very helpful. Jack. Thank you just one quick housekeeping item, if you could break out.
Maybe the sales contribution from Maverick in the quarter.
Yes.
We're planning on on breaking that out I mean, I think you can probably back into it decently based off of ASP performance.
And the implied asps within the segment.
But what I would tell you is that.
Sequentially and year over year, its up we have been able to get more and more units out. If I were described the fiscal year. They're obviously all of the sales in Q1 and Q2 were produced out of the new factory.
And.
That meant for a meaningful increase in terms of boats actually produced out of our Fort Pierce fat.
Factory, you've seen a sequential growth into Q3.
In that business.
Because we've kind of assimilated into that new new factory and been able to increase throughput. So.
Not going to break it out specifically, but I think the part of the margin reflection is the strength of that pursuit business.
And Maverick was right on top of our plan.
So.
Understood. Okay. Thanks, guys.
Thank you.
Your next question is from Jamie Katz with Morningstar.
Hi, good morning, nice quarter, Thanks for taking my question.
Do you have any any commentary on inflation, it's something that we've been here creeping into a lot of commentary across different industries. So maybe thinking about how that might constrain.
Gross margin upside and then we've also foreign debt.
On the purchase decision at retail is a true.
Availability of fraud.
And I think historically the story was that Malibu was faster than the competitive set.
Production and.
Getting to the dealer, but I'm wondering if maybe that check on this.
Quarter with weather has changed that at least temporarily.
Sure on the.
Inflation side, our politicians say, there's no inflation.
But we know that there is inflation.
And so I think that what you've heard from other industries is accurate the thing I'll point on we're gonna have inflation. We're in it's going to manifest itself into model year 'twenty, two but I think that the important thing and I believe this is the case for all marine companies.
The inflation that's in place that's going to be passed along.
As it relates to affecting the margin. This is such a white hot environment and there is such a scarcity of product that I don't think it's going to cause anybody about it I'll ask when you consider our demographics I'm very bullish on the market as a whole and then it'll continue to be very strong.
On the availability of product when we're talking about the units that we're talking about is a it's a pretty small amount. So there is no doubt that in our minds. We can continue to produce our competition in almost every brand certainly malibu and axis and the Malibu axis cobalt pursuit.
We're going to win the day, and we'll be able to produce our competition.
Okay, and then this might be a little premature to ask but.
Do you think about going into like the year end sales.
Given the environment.
Does it make sense from maybe continue to prune the magnitude of that.
On in order to true up.
Dealer inventory base.
No.
We didnt prudent last year, we doubled it so what we did is I think we put more retail customers in play.
As long as we can ride as long as you have a buyer thats going to buy boats and put their seat in the ceded a boat you want to capture that and so I think it becomes incumbent upon us to continue to have the accelerator pressed to the floor. That's how we win that's how we've always one but then also.
Do everything we can to increase counts from the various brands and start putting inventory into the channel earlier, which we believe that we can do both.
Thanks.
Your next question is from Alex Milwaukee with Bamberg.
Good morning, guys. Thanks for taking my questions.
You noted that you can't really expand the distribution footprint until FY 'twenty. Three however, given the production capabilities that likely exceed some other manufacturers with the supply chain constraints are you seeing potential dealer wins and share gains coming out of the problems on the back end of it.
Yeah, Yeah, absolutely I think you know if you had.
If you had the opportunity to increase your distribution today, that's going to add to the market share, but I think that just given our production capabilities and our dealers.
And I don't want to leave them out we have phenomenal dealers and then our product I believe that we will continue to add those tens of basis points in every brand on market share.
Got it Okay and then it sounds like there's some money left on the table, especially at Malibu and cobalt you think there is actually a revenue benefit from the two segments given that some people have to purchase a model year 'twenty two boats on a higher cost in short with this just result in better revenues. If you view that business is over a two year period.
Yeah, I think that's the case.
Believe that that's probably the case for all the marine companies. There. There's only so much we're going to be able to do in 2022, and then it'll roll into 'twenty. Three so I do think that there will be enhanced revenue that comes as a result from that.
Great. Thanks, Jack.
Your next question is from Ken Kevin Condon with Baird.
Hi, Good morning, everyone and thanks for taking my question on I wanted to ask you a little bit about the retail sold orders that you guys have been talking about you've had some success.
Selling production plots rather than I guess, the boats that already exists and longer term as customers are okay. Now waiting for a boat do you see a potential change in.
The way consumers purchase boats.
You know, maybe a greater desire to be able to specify exactly what they want their content.
It seems like it's been good for your Asps on the ear virtual tools and virtual boat shows.
Some of that activity could stick around long term.
The pandemic, if you will but just wanted to get your thoughts on that.
Yeah, I don't think it's going to be material.
We may see some some count if you look at it you can talk about stock boats produced in a year versus retail sold boats. It may go up two or three or four percentage points.
One of the things that I've cautioned in every quarter is there will come a point in time in which we are back to normality dealers will have channel inventory there'll be stock on the floor that a person can get right away depending on the time of year, you're going to have a higher stock than lower and so I think theres going to be normality.
That comes back into play it may not be until 2023 of 2024, but it will come back so.
It may be slightly higher but.
There is an element.
Being able to go into a dealer and buy a boat that day and have it delivered on Saturday and I don't think that will ever be lost on the end consumer.
And our market already has had a median probably out index for lot of the broader marine market in that custom and our business overall.
Has already had a heavy element of that is just enhanced at this point in time.
Awesome Thanks for that.
Thank you.
Your next question is from Eric Wold with B Riley Securities.
Thanks, Good morning, guys.
A couple of questions kind of on two follow ups.
Going back to the the supply chain issues on.
That you saw on the quarter was that predominantly just efficiency of the plants and availability of.
Parts.
Was there also a meaningful.
Input cost impact of the suppliers raising prices at the ladder did you did you take price to completely offset that even knowing that this is probably the short labor.
Impact and do those price hike stick if you did.
No we don't I mean in the middle of a quarter like this we would not raise prices on our dealers are on our customers. There were some minimal price increases, but we just stomach them. The real issue comes back to RASM you on the Texas plants being shut down and you have a one time phenomenon that had a <unk>.
<unk> term impact that's continuing to mitigate we think over the next couple of months and that was really the driver for any lost opportunity.
Got it and then last question given the success, you're seeing with <unk>.
On the virtual events and digital marketing.
Low impact on on demand.
Why go back to traditional.
Traditional kind of boat show experience in the past I guess, how do you think about how you'll adapt going forward and if you.
If there is no impact on volume from physical to virtual World, Let's say for example, what would be the.
The cost savings or efficiency look at being 100% virtual.
Well I think again it comes back to the environment that we're in is really driving that virtual we could hold the boat show today and if there were stock in the boat shows people would go in they would touch and feel and buy that vote at the boat show.
But in the case of today you have a boat show in there Theres still inventory look at it comes back again to that normality I do believe without a doubt that you.
You have this new environment, and it's going to be more important in the FERC in the future to be virtual and it's going to enhance your ability to sell boats and I believe that it will enhance the quickness of the sales cycle, but when we get back to a scenario where stock is in the channel and boat shows are ongoing.
That's going to be back to taking precedence.
Got it thanks Jack.
There are no further questions at this time I will now turn the call over to Mr. Jack Springer for closing remarks.
Thank you very much.
In summary of the quarter, we delivered a record setting third quarter and the best quarter in the company's history on almost every financial and operating metrics, we posted production levels for Malibu and pursuit that significantly exceeded historical levels for the quarter and we posted a fourth best production month ever from Maverick in March.
We have been and will continue to capitalize on the hot retail environment, which will further support growth and strong earnings and we remain optimistic that these tail winds will remain elevated beyond calendar year 2021.
Our operational excellence and vertical integration strategies remains second to none and a competitive differentiator continuing to drive profitability and unlocking maximum value from our product portfolio.
Leveraging the agility of our team and the strength of our flexible business model, our strong third quarter performance demonstrated Malibu resilience, providing us with even more confidence. So we will reach our new fiscal year 2021 guidance that we raised this morning.
As the clear leader in the industry and with a long track record of exceptional financial performance.
We are very well positioned to deliver continued value creation for our shareholders I.
I would like to thank you for your continued support as we sustain our growth journey I hope those and those around you remain safe and healthy have a great day.
This concludes today's conference call. Thank you for participating you may now disconnect.