Cobalt Malibu Boat operation

[Table Rockin]

I still say surf gate on a cobalt would be awesome

Already planning new boat purchase.....thatll happen in 10 years

[nolaboater99]

I know everyone has their opinion of "What's Next" or what should be next. Maybe Cobalt was trying to be too much of everything for everyone but there is one thing to remember....Cobalt doesn't build a lot of boats, they build some of each model.

For me, I feel one of the prettiest, most innovative and desirable boats was the 46 Express.

Cobalt 46.jpg

I like big boats. It was/is a great size and had a really usable layout and it is just stunning inside and out. Unfortunately, it demise was timing and the economy. They debut in 2008 and we all know what happened that year. There couldn't have been a worse time to introduce a new luxury yacht. things were so bad that people were sinking heir boats for the insurance money.

The A36 and A40 are pretty boats but not really cruisers. I really couldn't see spending a month on one in the Bahamas unless I had a hotel. But the 46 Express is a true cruiser. I know it won't happen but I would like to see them resurrect that line of boats.
Shawn

[Big Block Power]

Thanks for sharing. That bad boy or Nauti girl is beautiful
I'm sure they still have the mold for it.
Not sure how many they would sell our how many they could make in a year to make it worth while?

[tgrace98]

I still say surf gate on a cobalt would be awesome

Already planning new boat purchase.....thatll happen in 10 years

If that’s the case dibs on your R7 lol. Can just move it on over to my side of the dock.

[Tuscany]

Well, this will greatly increase resale in the short term..
Hmmmmm......
My wife would murder me..

[Tuscany]

I know everyone has their opinion of "What's Next" or what should be next. Maybe Cobalt was trying to be too much of everything for everyone but there is one thing to remember....Cobalt doesn't build a lot of boats, they build some of each model.

For me, I feel one of the prettiest, most innovative and desirable boats was the 46 Express. Cobalt 46.jpg
I like big boats. It was/is a great size and had a really usable layout and it is just stunning inside and out. Unfortunately, it demise was timing and the economy. They debut in 2008 and we all know what happened that year. There couldn't have been a worse time to introduce a new luxury yacht. things were so bad that people were sinking heir boats for the insurance money.

The A36 and A40 are pretty boats but not really cruisers. I really couldn't see spending a month on one in the Bahamas unless I had a hotel. But the 46 Express is a true cruiser. I know it won't happen but I would like to see them resurrect that line of boats.
Shawn

Wow, and it’s a 10 year old design that looks like a 2018.
I never knew that boat existed. 2008 was a real killer for the RV industry.

I’m surprised they spent the R&D money for the A36/40 when they had the engineering on that beauty already in the can? I can’t help but wonder what the heck they were thinking?
Some tweaks...bam...

[AsLan7]

Can't find the story i'm looking for from Pack, not Paxson. Pax is Pack's son.

Basically them going to trade shows in the beginning, If I find it I'll post.

Please do Liquid.

In the meantime, in honor of Cobalt boat's amazing legacy, I thought it was at least appropriate to post the YouTube video of who they are for anyone who stumbles upon this site.

Forgot all about this. Here's the article I was talking about. Great read. The Headliner bit cracks me up:

http://bensherwood.net/wp-content/uploa ... 5.2015.pdf

.

That was a fantastic read, Liquid.

It gave me great insight into why the Cobalt line changed
so drastically starting in 2007. That coupled with the housing market crash in 2008 crystallized why & where they are as a Boat company today under the Malibu umbrella.

Thanks again for digging that article up.

.

[nolaboater99]

There are 3 46 Expresses listed for sale on Yachtworld. Here is the link to a listing with pictures and details. An absolutely stunning boat inside and out. http://www.yachtworld.com/boats/2008/Co ... o7aqkxFx9A

Shawn

[Table Rockin]

Maybe you guys have seen this but I thought it was interesting. Its slide show prepared by Malibu upon announcing the deal. The interesting thing is they mention the "attractive purchase price multiple". If they paid $130 MIL for Cobalt and lets say a favorable multiple is somewhere in the 4 to 5 range then their EBITDA hovers in the $25 MIL range. Then i wonder how leveraged they are how much of that gets eaten away by interest. I would assume they are structured as a pass through entity for tax purposes. I wonder why they sold now....seems like a profitable company with a history of family and community involvement. These are typically companies that sell.

[Table Rockin]

whoops...sorry

https://seekingalpha.com/article/408488 ... -slideshow

[Table Rockin]

There are 3 46 Expresses listed for sale on Yachtworld. Here is the link to a listing with pictures and details. An absolutely stunning boat inside and out. http://www.yachtworld.com/boats/2008/Co ... o7aqkxFx9A

Shawn

That thing is gorgeous. I wish i had a microwave that retracted into my countertops at home

[gdane]

Those big cruisers were built in a plant in Alabama or Tennesse can't remember that Cobalt bought . Then the 2008 crisis hit and Cobalt closed and then sold that facility.
As for the sale of Cobalt, the 2008 crisis and the closing of the cruiser plant and Pack's purchase of the winery in Napa almost bankrupted Colbalt. So I'm guessing that those events scared the Sh*t of the St. Clair's and Pack and Packson are getting out while the getting is good? Plus I thought it was also interesting that the on going law suit against Sea Ray on the folding swim platform patent was not part of the sale to Malibu? I can't find the article but wasn't the amount that Cobalt is looking for in the 10Mil range?

[AsLan7]

Pack's purchase of the winery in Napa almost bankrupted Colbalt

.
Did not realize the impact of this on their business model as well.
With Paxon taking the helm in 2007; Pack’s winery direction; & the market collapse in 2008, it’s really a perfect storm that culminated with the takeover by Malibu Boats in 2017.


.

I can't find the article but wasn't the amount that Cobalt is looking for in the 10Mil range?

Btw, the judgment awarded to Cobalt was 2.7 M due to the blatant patent infringement by Sea Ray (Brunswick).

Discussed here...

viewtopic.php?f=44&t=42&p=10980&hilit=Triple#p10980

.

[liquid]

I know sales at Cobalt are roaring today, but that company really makes me wonder what and who they are, or more importantly, what they want to be, and where they are going to attract the next generation of boat buyers.
Times are changing fast my friends, and the next generation may be attracted differently.

They seem to be trying to be everything, and IMO, that leads to major trouble down the road.
They are/were an old generation boat company (which they finally cut).
They are a surf boat company made by retrofitting the R series.
They are now in the large day boat company
They are in the higher end bow rider lake boat business with the R series.
They are in the entry level boat business.
They still make wide bow deck boats. I think that ship had definitely sailed, no pun intended.

There are so many quality niche builders they are competing with, that will be doing their niches even better down the road.
I think they really need to refocus, and fast.
I personally think former leadership was all over the place, trying to compete in multiple arenas. I’m no genius, but that always seems to end poorly.
Hopefully, Malibu will bring focus, and I would hope that their association with Malibu relieves the need to be everything.

Just a thought. Spitballing here. I think I would take a serious look at the A36/40. I’m just not sure who would buy one. Redesign the interior to attract the overnighter.
Evolve the R series into more power options, and build a nasty performance bow rider R5/7/30/35 with a optional outboard set where power to weight ratio attracts the performance buffs. Give me an R7 with 700 horses, and I’m trading if my wife doesn’t kill me for doing it. Don’t like outboards? Look how Formula mounts them by using a rack system.
Expand the bread and butter Gateway series. That’s the bill payer, and they are doing that one perfectly.

Liquid, do you know how much debt each company holds?

I'm trying to attach the full company overview but until I can do that, MBUU:

Total Current Liabilities 56,820
Long-term debt 108,301
Total Long Term Debt 108,301
Other long-term liabilities 630
Payable pursuant to tax receivable agree 51,525
Minority/No controlling Interest 4,894
Deferred tax liabilities 522
Total Liabilities 222,692

Obviously in MM

[liquid]

Please do Liquid.

In the meantime, in honor of Cobalt boat's amazing legacy, I thought it was at least appropriate to post the YouTube video of who they are for anyone who stumbles upon this site.

Forgot all about this. Here's the article I was talking about. Great read. The Headliner bit cracks me up:

http://bensherwood.net/wp-content/uploa ... 5.2015.pdf

.

That was a fantastic read, Liquid.

It gave me great insight into why the Cobalt line changed
so drastically starting in 2007. That coupled with the housing market crash in 2008 crystallized why & where they are as a Boat company today under the Malibu umbrella.

Thanks again for digging that article up.

.

It only took me 7 months