Company Quick10K Filing
Malibu Boats
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 21 $771
10-Q 2020-02-06 Quarter: 2019-12-31
10-Q 2019-11-07 Quarter: 2019-09-30
10-K 2019-08-29 Annual: 2019-06-30
10-Q 2019-05-09 Quarter: 2019-03-31
10-Q 2019-02-06 Quarter: 2018-12-31
10-Q 2018-11-06 Quarter: 2018-09-30
10-K 2018-09-06 Annual: 2018-06-30
10-Q 2018-05-02 Quarter: 2018-03-31
10-Q 2018-02-09 Quarter: 2017-12-31
10-Q 2017-11-08 Quarter: 2017-09-30
10-K 2017-09-08 Annual: 2017-06-30
10-Q 2017-05-03 Quarter: 2017-03-31
10-Q 2017-02-01 Quarter: 2016-12-31
10-Q 2016-11-02 Quarter: 2016-09-30
10-K 2016-09-09 Annual: 2016-06-30
10-Q 2016-05-06 Quarter: 2016-03-31
10-Q 2016-02-04 Quarter: 2015-12-31
10-Q 2015-11-04 Quarter: 2015-09-30
10-K 2015-09-10 Annual: 2015-06-30
10-Q 2015-05-08 Quarter: 2015-03-31
10-Q 2015-02-09 Quarter: 2014-12-31
10-Q 2014-11-07 Quarter: 2014-09-30
10-K 2014-09-25 Annual: 2014-06-30
10-Q 2014-05-12 Quarter: 2014-03-31
10-Q 2014-03-11 Quarter: 2013-12-31
8-K 2020-03-19 Off-BS Arrangement, Regulation FD, Exhibits
8-K 2020-02-06 Earnings, Exhibits
8-K 2019-11-07 Earnings, Exhibits
8-K 2019-11-06 Shareholder Vote
8-K 2019-08-29 Earnings, Exhibits
8-K 2019-07-16 Officers
8-K 2019-07-01 Officers, Other Events
8-K 2019-06-18 Other Events
8-K 2019-05-14 Enter Agreement, Exhibits
8-K 2019-05-09 Earnings, Exhibits
8-K 2019-02-06 Earnings, Exhibits
8-K 2018-11-06 Earnings, Exhibits
8-K 2018-11-02 Shareholder Vote
8-K 2018-10-15 M&A, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2018-09-12 Regulation FD, Exhibits
8-K 2018-09-09 Sale of Shares, Officers
8-K 2018-09-06 Earnings, Exhibits
8-K 2018-08-21 Enter Agreement, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2018-08-02 Sale of Shares
8-K 2018-05-02 Earnings, Exhibits
8-K 2018-02-09 Earnings, Exhibits
MBUU 2019-12-31
Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 exhibit101-rsaexecutiv.htm
EX-31.1 q22020-exhibit311.htm
EX-31.2 q22020-exhibit312.htm
EX-32 q22020-exhibit32.htm

Malibu Boats Earnings 2019-12-31

MBUU 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
TGP 956 5,385 3,502 0 0 0 0 2,721 0%
FRO 944 3,078 1,914 0 0 0 0 2,617 0%
CKH 1,033 1,530 718 821 0 41 114 1,273 0% 11.2 3%
TDW 618 1,754 679 478 124 -171 -71 679 26% -9.6 -10%
GLOP 854 2,489 0 0 0 0 854 0%
GOGL 852 2,951 1,428 0 0 0 0 1,829 0%
SBLK 815 3,022 1,502 0 0 0 0 601 0%
MBUU 769 480 266 733 176 74 113 851 24% 7.5 15%
GMLP 742 2,241 1,481 0 0 0 0 1,756 0%
KNOP 591 1,837 1,105 0 0 0 0 1,636 0%

Document
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Table of Contents

 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, 2019
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
 
malibulogoprinta67.jpg
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 February 5, 2020:
20,584,619

shares
Class B Common Stock, par value $0.01, outstanding as of February 5, 2020:
15

shares

1

Table of Contents

TABLE OF CONTENTS
 
 
 
 
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


1

Table of Contents

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,
 
2019
 
2018
 
2019
 
2018
Net sales
$
180,112

 
$
165,793

 
$
352,192

 
$
289,276

Cost of sales
140,244

 
127,478

 
272,323

 
220,460

Gross profit
39,868

 
38,315

 
79,869

 
68,816

Operating expenses:
 

 
 

 
 

 
 

Selling and marketing
4,666

 
4,601

 
9,732

 
8,099

General and administrative
10,078

 
11,232

 
20,746

 
20,203

Amortization
1,537

 
1,538

 
3,121

 
2,818

Operating income
23,587

 
20,944

 
46,270

 
37,696

Other (income) expense, net:
 

 
 

 
 

 
 

Other income, net
(9
)
 
(17
)
 
(19
)
 
(34
)
Interest expense
957

 
1,844

 
2,124

 
3,015

Other expense, net
948

 
1,827

 
2,105

 
2,981

Income before provision for income taxes
22,639

 
19,117

 
44,165

 
34,715

Provision for income taxes
5,041

 
4,119

 
9,885

 
7,702

Net income
17,598

 
14,998

 
34,280

 
27,013

Net income attributable to non-controlling interest
876

 
741

 
1,699

 
1,458

Net income attributable to Malibu Boats, Inc.
$
16,722

 
$
14,257

 
$
32,581

 
$
25,555

 
 
 
 
 
 
 
 
Comprehensive income:
Net income
$
17,598

 
$
14,998

 
$
34,280

 
$
27,013

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Change in cumulative translation adjustment
615

 
(367
)
 
(8
)
 
(771
)
Other comprehensive income (loss), net of tax
615

 
(367
)
 
(8
)
 
(771
)
Comprehensive income, net of tax
18,213

 
14,631

 
34,272

 
26,242

Less: comprehensive income attributable to non-controlling interest, net of tax
907

 
723

 
1,699

 
1,416

Comprehensive income attributable to Malibu Boats, Inc., net of tax
$
17,306

 
$
13,908

 
$
32,573

 
$
24,826

 
 
 
 
 
 
 
 
Weighted average shares outstanding used in computing net income per share:
Basic
20,591,241

 
20,875,243

 
20,710,681

 
20,758,095

Diluted
20,701,473

 
20,990,313

 
20,816,830

 
20,883,868

Net income available to Class A Common Stock per share:
 
 
 
 
 
 
 
Basic
$
0.81

 
$
0.68

 
$
1.57

 
$
1.23

Diluted
$
0.81

 
$
0.68

 
$
1.57

 
$
1.22


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

2

Table of Contents

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

 
December 31, 2019
 
June 30, 2019
Assets
 

 
 

Current assets
 

 
 

Cash
$
27,707

 
$
27,392

Trade receivables, net
15,637

 
27,961

Inventories, net
76,783

 
67,768

Prepaid expenses and other current assets
5,989

 
4,530

Total current assets
126,116

 
127,651

Property, plant and equipment, net
81,368

 
65,756

Goodwill
51,396

 
51,404

Other intangible assets, net
142,934

 
146,061

Deferred tax assets
57,586

 
60,407

Other assets
15,305

 
35

Total assets
$
474,705

 
$
451,314

Liabilities
 

 
 

Current liabilities
 

 
 

Accounts payable
$
24,774

 
$
21,174

Accrued expenses
52,596

 
49,097

Income taxes and tax distribution payable
494

 
1,469

Payable pursuant to tax receivable agreement, current portion
3,592

 
3,592

Total current liabilities
81,456

 
75,332

Deferred tax liabilities
117

 
145

Other liabilities
16,772

 
1,689

Payable pursuant to tax receivable agreement, less current portion
50,162

 
50,162

Long-term debt
93,837

 
113,633

Total liabilities
242,344

 
240,961

Commitments and contingencies (See Note 17)


 


Stockholders' Equity
 

 
 

Class A Common Stock, par value $0.01 per share, 100,000,000 shares authorized; 20,583,449 shares issued and outstanding as of December 31, 2019; 20,852,640 issued and outstanding as of June 30, 2019
204

 
207

Class B Common Stock, par value $0.01 per share, 25,000,000 shares authorized; 15 shares issued and outstanding as of December 31, 2019; 15 shares issued and outstanding as of June 30, 2019

 

Preferred Stock, par value $0.01 per share; 25,000,000 shares authorized; no shares issued and outstanding as of December 31, 2019 and June 30, 2019

 

Additional paid in capital
103,291

 
113,004

Accumulated other comprehensive loss
(2,836
)
 
(2,828
)
Accumulated earnings
124,730

 
93,852

Total stockholders' equity attributable to Malibu Boats, Inc.
225,389

 
204,235

Non-controlling interest
6,972

 
6,118

Total stockholders’ equity
232,361

 
210,353

Total liabilities and stockholders' equity
$
474,705

 
$
451,314

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

3

Table of Contents

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, 2019
 
20,853

$
207

 
15

$

 
$
113,004

 
$
(2,828
)
 
$
93,852

 
$
6,118

 
$
210,353

Net income
 


 


 

 

 
15,859

 
823

 
16,682

Stock based compensation, net of withholding taxes on vested equity awards
 
(5
)

 


 
435

 

 

 

 
435

Issuances of equity for services
 


 


 
80

 

 

 

 
80

Repurchase and retirement of common stock
 
(383
)
(4
)
 


 
(11,119
)
 

 

 

 
(11,123
)
Cumulative-effect transition adjustment for ASC 842
 


 


 

 

 
(1,703
)
 

 
(1,703
)
Distributions to LLC Unit holders
 


 


 

 

 

 
(399
)
 
(399
)
Foreign currency translation adjustment
 


 


 

 
(623
)
 

 
(25
)
 
(648
)
Balance at September 30, 2019
 
20,465

$
203

 
15

$

 
$
102,400

 
$
(3,451
)
 
$
108,008

 
$
6,517

 
$
213,677

Net income
 


 


 

 

 
16,722

 
876

 
17,598

Stock based compensation, net of withholding taxes on vested equity awards
 
116

1

 


 
236

 

 

 

 
237

Issuances of equity for services
 
2


 


 
655

 

 

 

 
655

Distributions to LLC Unit holders
 


 


 

 

 

 
(446
)
 
(446
)
Foreign currency translation adjustment
 


 


 

 
615

 

 
25

 
640

Balance at December 31, 2019
 
20,583

$
204

 
15

$

 
$
103,291

 
$
(2,836
)
 
$
124,730

 
$
6,972

 
$
232,361



4

Table of Contents

 
 
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, 2018
 
20,555

$
204

 
17

$

 
$
108,360

 
$
(1,984
)
 
$
27,789

 
$
5,502

 
$
139,871

Net Income
 


 


 

 

 
11,298

 
717

 
12,015

Stock based compensation, net of withholding taxes on vested equity awards
 
(4
)

 


 
(50
)
 

 

 

 
(50
)
Issuances of equity for services
 


 


 
71

 

 

 

 
71

Issuances of equity for exercise of options
 
26


 


 
672

 

 

 

 
672

Increase in payable pursuant to the tax receivable agreement
 


 


 
(2,553
)
 

 

 

 
(2,553
)
Increase in deferred tax asset from step-up in tax basis
 


 


 
3,138

 

 

 

 
3,138

Exchange of LLC for Class A Common Stock
 
199

2

 


 
1,047

 

 

 
(1,047
)
 
2

Cancellation of Class B Common Stock
 


 
(1
)

 

 

 

 

 

Distributions to LLC Unit Holders
 


 


 

 

 

 
(354
)
 
(354
)
Foreign currency translation adjustment
 


 


 

 
(404
)
 

 
(15
)
 
(419
)
Balance at September 30, 2018
 
20,776

$
206

 
16

$

 
$
110,685

 
$
(2,388
)
 
$
39,087

 
$
4,803

 
$
152,393

Net Income
 


 


 

 

 
14,257

 
741

 
14,998

Stock based compensation, net of withholding taxes on vested equity awards
 
57

1

 


 
(12
)
 

 

 

 
(11
)
Issuances of equity for services
 


 


 
597

 

 

 

 
597

Issuances of equity for exercise of options
 
3


 


 
77

 

 

 

 
77

Distributions to LLC Unit Holders
 


 


 

 

 
2

 
(364
)
 
(362
)
Foreign currency translation adjustment
 


 


 

 
(367
)
 

 
(20
)
 
(387
)
Balance at December 31, 2018
 
20,836

$
207


16

$


$
111,347


$
(2,755
)

$
53,346


$
5,160


$
167,305



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


5

Table of Contents

MALIBU BOATS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
 
Six Months Ended December 31,
 
2019
 
2018
Operating activities:
 
 
 
Net income
$
34,280

 
$
27,013

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Non-cash compensation expense
1,490

 
1,131

Non-cash compensation to directors
415

 
421

Depreciation
6,102

 
4,358

Amortization
3,121

 
2,818

Deferred income taxes
2,794

 
2,617

Other items, net
1,034

 
217

Change in operating assets and liabilities:
 
 
 
Trade receivables
12,125

 
11,231

Inventories
(9,022
)
 
(16,073
)
Prepaid expenses and other assets
(675
)
 
(2,006
)
Accounts payable
1,155

 
2,169

Income taxes payable
(1,234
)
 
(2,112
)
Accrued expenses
1,668

 
3,694

Other liabilities
(744
)
 
134

Net cash provided by operating activities
52,509

 
35,612

Investing activities:
 
 
 
Purchases of property, plant and equipment
(19,313
)
 
(6,837
)
Payment for acquisition, net of cash acquired

 
(100,073
)
Net cash used in investing activities
(19,313
)
 
(106,910
)
Financing activities:
 
 
 
Proceeds from revolving credit facility

 
50,000

Payments on revolving credit facility
(20,000
)
 
(15,000
)
Proceeds received from exercise of stock option

 
749

Cash paid for withholding taxes on vested restricted stock
(811
)
 
(1,186
)
Distributions to LLC Unit holders
(969
)
 
(909
)
Repurchase and retirement of common stock
(11,123
)
 

Net cash (used in) provided by in financing activities
(32,903
)
 
33,654

Effect of exchange rate changes on cash
22

 
(76
)
Changes in cash
315

 
(37,720
)
Cash—Beginning of period
27,392

 
61,623

Cash—End of period
$
27,707

 
$
23,903

 
 
 
 
Supplemental cash flow information:
 
 
 
Cash paid for interest
$
2,133

 
$
2,361

Cash paid for income taxes
7,300

 
6,628


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

6

Table of Contents

MALIBU BOATS, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements
(Dollars in thousands, except per unit and per share data)
1. Organization, Basis of Presentation, and Summary of Significant Accounting Policies
Organization
Malibu Boats, Inc. (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"). Malibu Boats Holdings, LLC was formed in 2006 with Malibu's acquisition by an investor group, including affiliates of Black Canyon Capital LLC, Horizon Holdings, LLC and then-current management. The LLC, through its wholly owned subsidiary, Malibu 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. On July 6, 2017, the Company acquired all outstanding units of Cobalt Boats, LLC (“Cobalt”) further expanding the Company's product offering across a broader segment of the recreational boating industry including performance sport boats, sterndrive and outboard boats. As a result of the acquisition, the Company consolidates the financial results of Cobalt. On October 15, 2018, the Company's subsidiary Malibu Boats, LLC, purchased the assets of Pursuit Boats ("Pursuit") from S2 Yachts, Inc., expanding the Company's product offering into the fiberglass outboard fishing boat market.
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 Boats, Inc. and subsidiaries for the year ended June 30, 2019, included in the Company's Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments considered necessary to present fairly the Company’s financial position at December 31, 2019, and the results of its operations for the three and six month periods ended December 31, 2019 and December 31, 2018, and its cash flows for the six month periods ended December 31, 2019 and December 31, 2018. Operating results for the three and six months ended December 31, 2019, are not necessarily indicative of the results that may be expected for the full year ending June 30, 2020. Certain reclassifications have been made to the prior period presentation to conform to the current period presentation. Units and shares are presented as whole numbers while all dollar amounts are presented in thousands, unless otherwise noted.
Segment Information
Effective July 1, 2019, the Company revised its segment reporting to conform to changes in its internal management reporting based on the Company’s boat manufacturing operations. Segment information has been revised for comparison purposes for all periods presented in the condensed consolidated financial statements. The Company previously had four reportable segments, Malibu U.S., Malibu Australia, Cobalt and Pursuit. The Company now aggregates Malibu U.S. and Malibu Australia into one reportable segment as they have similar economic characteristics and qualitative factors. As a result the Company now has three reportable segments, Malibu, Cobalt and Pursuit. See Note 18 for revised segment information for the current and prior periods.
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 February 2016, the FASB issued Accounting Standards Update (ASU) 2016‑02, Leases (Topic 842).  The amendments in this update create ASC Topic 842, Leases, and supersede the requirements in ASC Topic 840, Leases.  ASC Topic 842 requires lessees to recognize on the balance sheet a right‑of‑use asset, representing its right to use the underlying asset for the

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lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. In June 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvement, which provides entities with an additional (optional) transition method to adopt the new lease standard.  Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. On July 1, 2019, the Company adopted the new leasing standard and all the related amendments. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification.
The Company made an accounting policy election to not record leases with an initial term of 12 months or less on the balance sheet. The Company also elected the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all payments associated with a lease contract are accounted for as lease cost.
The adoption of ASC Topic 842 did not have a material impact on the Company’s consolidated results of operations, equity or cash flows as of the adoption date. Under the optional transition approach, comparative information was not restated, but will continue to be reported under the standards in effect for those periods. See Note 11 for further information regarding the Company’s leases.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and in November 2018 issued a subsequent amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. ASU 2018-19 will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of this amendment that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019, and is effective for the Company’s fiscal year beginning July 1, 2020. The adoption of the ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows.
There are no other new accounting pronouncements that are expected to have a significant impact on the Company's consolidated financial statements and related disclosures.
2. Revenue Recognition
The following table disaggregates the Company's revenue by major product type and geography:
 
Three Months Ended December 31, 2019
 
Six Months Ended December 31, 2019
 
Malibu
 
Cobalt
 
Pursuit
 
Consolidated
 
Malibu
 
Cobalt
 
Pursuit
 
Consolidated
Revenue by product:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Boat and trailer sales
$
94,350

 
$
48,579

 
$
33,715

 
$
176,644

 
$
176,433

 
$
97,879

 
$
69,521

 
$
343,833

Part and other sales
2,977

 
415

 
76

 
3,468

 
6,774

 
1,266

 
319

 
8,359

Total revenue
$
97,327

 
$
48,994

 
$
33,791

 
$
180,112

 
$
183,207

 
$
99,145

 
$
69,840

 
$
352,192

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by geography:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
89,643

 
$
46,822

 
$
33,114

 
$
169,579

 
$
168,560

 
$
95,580

 
$
65,365

 
$
329,505

International
7,684

 
2,172

 
677

 
10,533

 
14,647

 
3,565

 
4,475

 
22,687

Total revenue
$
97,327

 
$
48,994

 
$
33,791

 
$
180,112

 
$
183,207

 
$
99,145

 
$
69,840

 
$
352,192


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Three Months Ended December 31, 2018
 
Six Months Ended December 31, 2018
 
Malibu
 
Cobalt
 
Pursuit
 
Consolidated
 
Malibu
 
Cobalt
 
Pursuit
 
Consolidated
Revenue by product:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Boat and trailer sales
$
87,878

 
$
45,360

 
$
29,852

 
$
163,090

 
$
159,789

 
$
92,799

 
$
29,852

 
$
282,440

Part and other sales
2,142

 
486

 
75

 
2,703

 
5,454

 
1,307

 
75

 
6,836

Total revenue
$
90,020

 
$
45,846

 
$
29,927

 
$
165,793

 
$
165,243

 
$
94,106

 
$
29,927

 
$
289,276

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by geography:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
82,282

 
$
43,171

 
$
26,833

 
$
152,286

 
$
150,140

 
$
88,145

 
$
26,833

 
$
265,118

International
7,738

 
2,675

 
3,094

 
13,507

 
15,103

 
5,961

 
3,094

 
24,158

Total revenue
$
90,020

 
$
45,846

 
$
29,927

 
$
165,793

 
$
165,243

 
$
94,106

 
$
29,927

 
$
289,276

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 our 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 statement of operations and comprehensive income represents the portion of earnings attributable to the economic interest in the Company's subsidiary, Malibu Boats Holdings, 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 Malibu Boats Holdings, LLC is summarized as follows:
 
As of December 31, 2019
 
As of June 30, 2019
 
Units
 
Ownership %
 
Units
 
Ownership %
Non-controlling LLC Unit holders ownership in Malibu Boats Holdings, LLC
830,152

 
3.9
%
 
830,152

 
3.8
%
Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC
20,583,449

 
96.1
%
 
20,852,640

 
96.2
%
 
21,413,601

 
100.0
%
 
21,682,792

 
100.0
%

Issuance of Additional LLC Units
Under the first amended and restated limited liability 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, 2019, the Company caused the LLC to issue a total of 129,946 LLC Units to the Company in connection with (i) the Company's issuance of Class A Common Stock to a non-employee director for her 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, 201915,733 LLC Units were canceled in connection with the vesting of share-based equity

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awards to satisfy employee tax withholding requirements and the retirement of 15,733 treasury shares in accordance with the LLC Agreement. During the six months ended December 31, 2019, 383,404 LLC Units were redeemed and canceled by the LLC in connection with the purchase and retirement of 383,404 treasury shares under the Company's stock repurchase program.
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), Malibu Boats Holdings, 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