Malibu Boats (MBUU) Will Pay $20M in PCMW Settlement; Revises Q4, FY14 Results

Malibu Boats (Nasdaq: MBUU) announced the resolution of the litigation between it and Pacific Coast Marine Windshields Ltd. ("PCMW") relating to intellectual property rights claimed by PCMW in windshields used by the Company (the "Litigation Matter"), subject to the execution of a definitive settlement agreement which is expected to occur on or prior to September 29, 2014. The settlement has resulted in a revision of the Company's fourth fiscal quarter and fiscal year 2014 results, which were previously disclosed in a press release dated September 11, 2014.

The parties to the Litigation Matter have agreed that the Company will pay $20.0 million in cash to the plaintiffs, PCMW and Darren Bach, upon entry into a definitive settlement agreement or such later date as the parties agree, and the parties have released each other from all past and present claims. Further, the plaintiffs, including PCMW, have agreed not to sue on now-existing intellectual property rights. Accordingly, the Company has revised its fourth fiscal quarter and fiscal year 2014 financial results to reflect the one-time charge taken in connection with the settlement.

As a result, general and administrative expenses for the three months ended June 30, 2014 increased by $20.0 million to $24.7 million. Net loss for the fourth quarter was $10.6 million, or $0.39 per diluted share, compared to the previously disclosed net income of $5.4 million, or $0.16 per diluted share. General and administrative expenses for the fiscal year ended June 30, 2014 increased by $20.0 million to $40.0 million. Net loss for the fiscal year ended June 30, 2014 was $1.2 million, or $0.42 per diluted share for the period from February 5, 2014 to June 30, 2014, compared to the previously disclosed net income of $14.8 million, or $0.12 per diluted share for the period from February 5, 2014 to June 30, 2014. Adjusted EBITDA, adjusted EBITDA margin, adjusted fully distributed net income, and adjusted fully distributed net income per share for the fourth quarter and fiscal year ended June 30, 2014 were unchanged.

Jack Springer, Chief Executive Officer, stated, "We are very pleased to have reached a settlement of this long-standing litigation and to put this matter behind us. The settlement enables us to now fully focus on our current and future opportunities."

You May Also Be Interested In

• Tesla touts acceleration of new models, but Q1 results fall short of estimates
• IDEX Corp. (IEX) Tops Q1 EPS by 13c ; Offers Guidance
• Weatherford International plc (WFRD) Tops Q1 EPS by 6c