Tommy’s Boats lands in receivership as legal battles add up

[Horton]

it's official this time

https://www.crainsgrandrapids.com/news/retail/embroiled-in-three-lawsuits-tommys-boats-lands-in-receivership/

[buechsr]

MBUU quarterly financials released an hour ago…I’m not Warren Buffett, but I  don’t think this looks good:

https://stockhouse.com/news/press-releases/2024/05/02/malibu-boats-inc-announces-third-quarter-fiscal-2024-results

Link to earning call at 8:30 this am on malibuboats.com

 

[The_MS]

Its only going to get worse for many boat manufacturers. Credit cards nation wide are maxed out and interest rates are still very high for people to take 10 year loans on boats.  You will be seeing some super deals on pontoons and runabouts by mid summer. 

[Mastercrafter]

56 minutes ago, The_MS said:

Its only going to get worse for many boat manufacturers. Credit cards nation wide are maxed out and interest rates are still very high for people to take 10 year loans on boats.  You will be seeing some super deals on pontoons and runabouts by mid summer. 

Unfortunately I think boats are going to be the least of our country's collective worry in a while here. 

 

[UWSkier]

The MC earnings call next week will be highly suggestive of whether this is a MBUU problem or an industry problem.

[buechsr]

10 minutes ago, UWSkier said:

The MC earnings call next week will be highly suggestive of whether this is a MBUU problem or an industry problem.

Last qtr:

 

[stevezie]

2 hours ago, Mastercrafter said:

Unfortunately I think boats are going to be the least of our country's collective worry in a while here. 

 

Well the value of our money has been roughly cut in half over the last five years.  Taking that into consideration, this is trending mostly with inflation.

The problem with many recreational vehicles like boats, is they have completely abandoned any approach to affordability and created product lines all about high cost, high profit products.  For a significant chunk of their customer base, most of their products were only affordable via low interest rates.  This was great when it was cheap to borrow money.  Now that interest rates have gone up, a significant part of their customer based either can't afford their products because the total cost is too high, or they are simply choosing not to buy because they would lose the low rate they have on their current boat.  

The damage is happening across all markets for all "discretionary" high cost toys.  The UTV market is a flooded with inventory.  You can't give campers away.  Harley-Davidson business is way down.  

Generally speaking, the market for used boats under $40k hasn't been impacted in the same way as boats over $40k.  

[Drago]

That ⬆️ @stevezie, and, just speculating here, also I think the boat market is saturated. Very few customers out there anyway.

[Hallpass]

They can just forgive that Credit Card debt, right?  🙄

[kmenard]

@stevezie I am trying to buy a camper and the person selling it was asking more than JD Power said it was worth...she thinks she will get more money for it as the season starts...guess we will see.

[DW]

Sadly although one could expect it, Malibu owners are starting to report various locations being locked or closed.  The habit of borrowing and borrowing cheap money for toys doesn’t always end well.

[markn]

I will check out the Tommy's here in Clermont, FL.  They sold a ton of boats here, but lately, their lot is FULL of unsold boats.

[UWSkier]

Hope folks in NV and AZ who had boats in at Tommy's got them out before the gates were locked up.

[markn]

Just stopped by Tommy's in Clermont.  Gate was open and there was some activity.

 

[jpwhit]

Just saw this....

East Coast Flightcraft
is proud to bring you an exclusive oppurtunity
to get into a new Malibu or Axis Boat
while getting the largest discounts of all time!

We have approximatley 50 inbound boats
that have been aquired from other dealers
across the country so that we may offer them
to you at historically discounted prices.

If you have ever been on the fence about getting into a new Malibu or Axis boat,
Now is the time!

Financing is available for qualified buyers
and transport can be arranged


Get yours before they're GONE!

[Cooper_Trelawney]

I checked out East Coast Flight Flightcraft and they even have 3 TXIs in stock.  Maybe someone can get a great deal on a new ski boat.

[Horton]

We are talking about Australia, right? 

[rockdog]

6 minutes ago, Horton said:

We are talking about Australia, right? 

Leave us out of it @Horton!

[Horton]

@rockdog I thought "Flightcraft" was specifically an Australian boat thing. I looked it up and this is about the US market.

 

Anyhow => So crazy.

[DW]

It appears Tommy's has filed for bankruptcy via each of the dealerships:

https://finance.yahoo.com/news/report-accused-defaulting-tommy-boats-205413201.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAFT-B3n3b1ZGp4uW_E4aAOv3e1IvSdbRHo7v9S0NsrqLU3F2nsKxWHGg-0vJuPytCzFUpaJynECfmuBc1uADIVg1ofdvDdK39Zx0yCmfBqRjOY6Z_hbiu9_bjRfCbIiJkF5l5J6BcA19ROe9THKMAyWwIxnUMxa3-IIhSCWotbbW

[BS74]

Malibu stock was upgraded to a BUY this morning with a price tgt of $44.00

[Horton]

@BS74

I don't think it ever really seemed like malibu was in substantial trouble long-term. I'm not surprised that some analysts have upgraded them to a buy. They've had some bad news and I suppose you could argue some bad management, but they have one hell of a business and a pretty broad product offering

[UWSkier]

34 minutes ago, Horton said:

@BS74

I don't think it ever really seemed like malibu was in substantial trouble long-term. I'm not surprised that some analysts have upgraded them to a buy. They've had some bad news and I suppose you could argue some bad management, but they have one hell of a business and a pretty broad product offering

Turns out Malibu knew this was coming and has had dealerships lined up in the largest affected markets for a while.  Every location should have a new dealer stood up by mid July is what I'm hearing.

[WDKinley]

Malibu has a few brands under it's umbrella like Axis (wake) Cobalt (runabout) Maverick (fish) and Pursuit (Center Console.) Provided that there's not an absolute turndown in the marine sector the diversification should help.

[PatM]

@HortonEast Coast Flightcraft is in Massachusetts near New Hampshire boarder.  They were a Flightcraft dealer at first but has been one of the largest Malibu dealers in the East since the 1990's.

[bojans]

I could be wrong but it looks like this TXI does not have zero off

 

https://www.eastcoastflightcraft.com/default.asp?page=xNewInventoryDetail&id=14628654&p=1&make=malibu boats&s=(Sort By)&d=D&vt=boat&year=2024&fr=xNewInventory

[Mastercrafter]

6 minutes ago, bojans said:

I could be wrong but it looks like this TXI does not have zero off

 

https://www.eastcoastflightcraft.com/default.asp?page=xNewInventoryDetail&id=14628654&p=1&make=malibu boats&s=(Sort By)&d=D&vt=boat&year=2024&fr=xNewInventory

 

You're correct. 

...Imagine deciding to build a modern 3-event boat without Zero Off. 

[Horton]

bankruptcy paperwork if anyone cares

FILE_5216.pdf

[skinut]

1 hour ago, bojans said:

I could be wrong but it looks like this TXI does not have zero off

 

https://www.eastcoastflightcraft.com/default.asp?page=xNewInventoryDetail&id=14628654&p=1&make=malibu boats&s=(Sort By)&d=D&vt=boat&year=2024&fr=xNewInventory

I really liked the last gen of Malibu's this new design is so off putting. How could you even use this boat in a slalom course?

[UWSkier]

27 minutes ago, skinut said:

I really liked the last gen of Malibu's this new design is so off putting. How could you even use this boat in a slalom course?

The same way we got by without ZO for decades...

but yeah, oddball order sheet on that one.

[bojans]

 

2 hours ago, Mastercrafter said:

 

You're correct. 

...Imagine deciding to build a modern 3-event boat without Zero Off. 

If I was correct in that assumption, they have at least 3 of them with no ZO

[Horton]

33 minutes ago, skinut said:

I really liked the last gen of Malibu's this new design is so off putting. How could you even use this boat in a slalom course?

The TXi is a very good slalom boat. You may not like the way it looks but it does not suck.

[DW]

Off topic but remember the women's slalom record via RJ is behind a TXI along with a bunch of PB's at that same tournament.  From a handle perspective, pretty sporty although may not be the most attractive:-)  Hopefully the dealership reboot for the 15 Tommy's gets done to everyone's satisfaction.

[shufflehuff]

4 hours ago, Mastercrafter said:

 

You're correct. 

...Imagine deciding to build a modern 3-event boat without Zero Off. 

It's certianly possible I am wrong here, but my understanding is that on the "base" TXI the zero off is controlled from the small LCD screen. The up and the down arrows adjust speed. Here is a picture of the screen with an excerpt from the TXI manuals. One manual is from 2022 the other is 2023. 

[jpwhit]

I'm not terribly knowledgable about Malibu details. But I'm pretty sure that's the basic cruise control, which is not the same as 3-Event Zero Off. When they refer to the "Zero-Off GPS Puck", the GPS puck they use does come from Zero Off, but it's the wake edition puck, which is different than the 3-Event Puck. And this system does not include the Zero Off head unit, either the version with a display, or the headless version where the accelerometers a "real" Zero Off system uses. 

Nautique and MasterCraft do something similar on some models of their Wake/Surf Boats. But they do something that I think is even more confusing. They brand their base speed control system as Zero Off on the boat display. Even though it's just a software solution running on the screen using a Zero Off wake edition GPS puck. It's the source of a huge amount of confusion on many of the wake/surf boat forums. Especially when boat owners on those forums call the Zero Off people at Ennovation Controls and try to get questions answered. The normal Zero Off team doesn't seem to know these base cruise control systems even exist using the Zero Off brand name. I think this base cruise system was actually created by the Murphy Screen team that was acquired by Ennovation Controls. 

[skinut]

3 hours ago, UWSkier said:

The same way we got by without ZO for decades...

but yeah, oddball order sheet on that one.

I guess if you want to hand time you could get by. 

3 hours ago, Horton said:

The TXi is a very good slalom boat. You may not like the way it looks but it does not suck.

I'm sure, it is; just not my cup-o-tea  

[MISkier]

Looks like Malibu is moving on in at least one Tommy's location:

 

[chaloux]

All I can say is that there have been A LOT of Malibus posted on SIA lately. 

[MrAcoustics]

Interesting that Club Royale took over the business. They already sell Moomba, Supra, and I think Centurion plus pontoon brands. Now they will have Malibu and Axis to sell against them, wonder which will get priority? I have a friend who is in Club Royale's marina on Cass lake and the rule I heard was you had to have one of their brands to get a slip, I guess that list just got bigger. The Tommy's in this area had a fairly large operation using an old Sam's club I believe, the parking lot at Club Royale might get real tight if they have to take over a bunch of inventory.

[UWSkier]

1 hour ago, MrAcoustics said:

Interesting that Club Royale took over the business. They already sell Moomba, Supra, and I think Centurion plus pontoon brands. Now they will have Malibu and Axis to sell against them, wonder which will get priority? I have a friend who is in Club Royale's marina on Cass lake and the rule I heard was you had to have one of their brands to get a slip, I guess that list just got bigger. The Tommy's in this area had a fairly large operation using an old Sam's club I believe, the parking lot at Club Royale might get real tight if they have to take over a bunch of inventory.

Heard they may have dumped Supra and Moomba to get Malibu and Axis.

[Broussard]

Quote

I could be wrong but it looks like this TXI does not have zero off

At least in 2017, the standard version had a ZO puck to the right where those gauges are. Haven't really seen a non-MO Edition since then as they are not very popular.

East Coast Flightcraft has wayyyyyy more than 3 of these seemingly non-ZO Response TXi listed on Only Inboards.

[UWSkier]

4 hours ago, Broussard said:

At least in 2017, the standard version had a ZO puck to the right where those gauges are. Haven't really seen a non-MO Edition since then as they are not very popular.

East Coast Flightcraft has wayyyyyy more than 3 of these seemingly non-ZO Response TXi listed on Only Inboards.

That's bananas.  Wonder why they ordered so many without ZO.  I haven't heard of any software or hardware changes that would have moved the ZO to the right side digital display.  Not like Malibu is investing any $ in the TXI program these days.

[liquid d]

Why would you ever produce the boat without ZO? It's stupid...you spend 100k and don't have it?

[vtjc]

East Coast Flightcraft sells many ski boats that go to summer camps in the northeast. They pull campers who are casual skiers, so they likely don’t need ZO since they aren’t in the course. A basic system that maintains a steady speed is likely sufficient.

[braindamage]

23 minutes ago, vtjc said:

East Coast Flightcraft sells many ski boats that go to summer camps in the northeast. They pull campers who are casual skiers, so they likely don’t need ZO since they aren’t in the course. A basic system that maintains a steady speed is likely sufficient.

It’s still baffling based on resale values