Pursuit DNA

There is nothing like the world of boating and being a boater. I have often said that one of the most beautiful and overwhelmingly calming experiences in life is being out on the water at dawn, as the sun begins coming up. I know many of you share that view and have hopefully experienced it several times this year.

Has anyone mentioned that 2020 has been a strange year? In many, many ways we can probably all say that. It has been a strange year for boating and the marine industry as well. You have probably seen it on your waterways with many more boats and people on the water. What has occurred has been nothing short of amazing. For the years after the Great Recession in 2008 and 2009, boating has been growing at a moderate pace for most segments. In the first quarter of 2020, when Covid-19 began taking effect, we did not know what would happen. On March 24th, we closed all of our plants, not knowing for sure when we would reopen. We implemented a number of changes to keep our teams healthy, kept paying them and we were reopened and fully operational in late April and early May. By the end of April, we were seeing a massive boat buying frenzy that grew every week well into August. Normally, just after the 4th of July, sales of boats begin slowing. Now, in the latter part of the year, we can say April through August was one of the most prolific buying sprees of boats in history. Why is that though? The reason is simple. The adjustment that many families have had to make in their lives led them to discover what we all already know. Boating is one of the very few activities

DNA

where we can get away with our children and families for hours at a time without the outside intervention of the world and technology. We can just enjoy each other, no texting, no calls, no gaming. Relationships are built, respect for each person is strengthened and we find out what makes us tick as a family unit. I have spoken to many parents who have turned to boating this year. Most were very busy in past years, going to select league baseball, hockey and other sports tournaments every weekend. What almost every one of them has said is that we have enjoyed the spring and summer so much as a family, that even if life does return to the normal “busyness” next year, we plan to scale back and spend time together. They have discovered what you may already know: you only have eighteen summers with those children.

Malibu Boats, Inc. owns the following brands: Malibu, Axis Wake Research (both wake sport boats), Cobalt Boats (I/O and Outboard boats) and Pursuit Boats (Outboard cruising and fishing boats). The Malibu brand began in 1982 and is now the largest skiwake manufacturer in the world with sales of four of every 10 boats in the towboat segment worldwide. Cobalt, one of the premier brands in marine has been around since 1968. We acquired Cobalt in 2017. Introduced in 1977, Pursuit Boats has long had a reputation for building fishing boats with a focus on excellence and innovation. Malibu acquired Pursuit Boats from S2 Yachts, Inc. of Holland, Michigan in October 2018. Pursuit and Cobalt represented what we desired in brands: premium brands building great boats who served their customers extremely well.

Pursuit has what we call Pursuit DNA. Every single person at Pursuit has a pride in the design and build of Pursuit boats that is clearly evident from the very first conversation. That pride and DNA is critically important. What we have done in the last two years is invest in Pursuit. For a number of years at Pursuit, customer demand outpaced the capacity to build boats. In early 2019, we purchased 80 acres of land directly adjacent to the Pursuit plant, and in August of 2019, we broke ground for a new, state-of-the-art 180,000 square foot plant. This additional facility was completed in June of 2020 and is now operating as our large boat plant, while the original plant continues to build our boats under 32 feet in length. Our second investment in Pursuit was to provide the capital to aggressively expand new product development. In 2019 and 2020, we will have brought eight brand new models, from 23 feet to 42 feet, to market and we will continue that pace in the future.

As critical as product is, our dealer partnerships are just as important. We have recognized that fact for many years. For all of our brands, we have a great dealer network and we believe we have the best dealers. Michigan is no exception and we are very proud of all of our dealers in Michigan and surrounding states. We are very fortunate for Pursuit to have Walstrom Marine as a phenomenal partner that embodies what a great dealer is in the sales and service to customers. The dealer relationship with the customer is an important one, and one that I know is a priority to the entire team at Walstrom’s. In many ways, your dealer becomes like an extended family member and friend who shares in life’s great events. I hope you have that relationship today with your dealer.

The future is bright, but without a doubt, the future is even brighter for those of us who have embraced the passion of boating. There are very few activities like it. One of our core beliefs is to build the family because ultimately, the strength of our nation, our states and our cities is determined by the strength of family. Enjoy time on your boat, enjoy your family and friends and celebrate the freedom of being on the water the next time you are out.