PATH FINDER BOATS UPDATE
PATH FINDER BOATS FULL

We believe this will give us an advantage over the first and early second quarters of fiscal 2023. At this time of the year, in the freshwater environment, that is important because buyers want the boat right away to enjoy the last few weeks of the season before cold weather. Led by Malibu and Cobalt, we have consistently increased production volumes to keep pace with strong retail orders and have already begun to build back inventory in the channel in these segments. Across all of our brands, we are performing at very high levels. With our tried and proven experience successfully navigating through challenging market cycles, we are confident in our strategic and operational capabilities, coupled with our ability to execute in any macro environment. The strength of the Malibu consumer has proven resilient. As a result, we have orders extending well into the first half of fiscal year 2023, and they show no signs of slowing. However, retail demand bounced back with a dealer seeing a quick recovery around Memorial Day that carried through the quarter end. With many competitors across our segments raising prices into the double digits year over year, we are proud to deliver our industry-leading innovation with minimal price increases comparatively, which will be a competitive advantage.Īs many boat manufacturers experienced, we did see a slight pause with the delayed spring. During the fiscal year, we did a masterful job of optimizing price in a difficult supply constrained environment compared to the broader marine industry. Retail demand remained very strong and has continued to support extremely robust ASPs across all brands. We look to carry this momentum forward into the 2023 fiscal year supported by our new Malibu products. Malibu continues to set the tone, led by our operational excellence, premium brands and unmatched manufacturing capabilities across our differentiated portfolio. As a result, we supported strong order volumes and ultimately exceeded our full-year guide. During the fiscal year, we have met unwavering demand by amping up our production capabilities through our vertically integrated model. Gross margin remained strong at 25.5%, and adjusted EBITDA grew 30% to a record $247 million, while adjusted EBITDA margin remained relatively consistent at 20.3%. For fiscal year 2022, net sales increased nearly 31% to a record $1.2 billion. Despite persistent supply chain and inflationary headwinds impacting the broader marine industry, our differentiated operating model, vertical integration capabilities and strategic leadership continues to shine through, helping us persevere and be the market leader. Fiscal year 2022 was another record for Malibu Boats, which included fantastic fourth-quarter results that surpassed expectations. Thank you, Wayne, and thank you all for joining the call. Jack Springer - Chief Executive Officer and Director 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, fully distributed net income and adjusted fully distributed net income per share. Factors that might affect future results are discussed in our filings with SEC, and we encourage you to review our SEC filings for a more detailed description of these risk factors.

PATH FINDER BOATS UPDATE

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.

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.

PATH FINDER BOATS FULL

A press release covering the company's fiscal fourth quarter and full year 2022 results was issued today, and a copy of that press release can be found in the Investor Relations section of the company's website. We will then open the call for questions. On the call, Jack will provide commentary on the business, and I will discuss our fiscal fourth quarter and full year 2022 financials.

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