MarineMax reports 1Q results

Posted on 31 January 2012

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MarineMax today announced a small decline in revenue for its first quarter, but reported a slight increase in same-store sales for the period.

Revenue was $91.8 million for the quarter that ended Dec. 31, compared with $92.2 million for the comparable quarter last year. Same-store sales increased more than 2 percent, compared with an 8 percent decrease in the comparable quarter last year.

Revenue from closed stores that were not eligible for inclusion in the same-store sales base was $2.5 million.

The company reported a net loss of $4.2 million for the quarter, or 19 cents a share, compared with a net loss of $4.7 million, or 21 cents a share, for the comparable quarter last year.

For the quarter, the company’s net loss was reduced by about $1.4 million related to the favorable resolution of various amounts due from a manufacturer whose brands the company no longer carries, MarineMax said. Excluding the benefit from the favorable resolution, the company’s net loss for the period was $6.1 million, or 27 cents a share.

Inventory was $224.7 million, compared with $189.2 million on Dec. 31, 2010. Sequentially, inventory increased by $5.1 million, or 2 percent, compared with the quarter that ended Sept. 30, 2011.

“The December quarter was our fifth consecutive quarter of new-boat unit sales growth. During the quarter we produced a modest increase in same-store sales while expanding our gross margins, which resulted in a meaningful improvement in our results on a comparable basis,” MarineMax chairman, president, and CEO William McGill, Jr. said in a statement.

McGill said MarineMax generated increases in its higher-margin businesses of brokerage, finance and insurance, parts and accessories, service and storage that contributed, along with higher product margins, to drive an increase in its overall gross margins for the quarter.

“While total revenue was approximately flat to the prior year, our new-boat unit sales are well above reported industry trends. We attribute the outperformance to our proven retailing strategies and the appeal of the broad boat and yacht brands that we offer,” he added. “Although the marine retail environment continues to present challenges, our well-capitalized balance sheet and industry leadership allow us to remain focused on maximizing opportunities to improve our performance.”

McGill also said the company is comfortable with its inventory levels, and early results from the boat shows it has attended have produced encouraging results.

“While we cannot control the timing, we believe the industry is starting to experience improvement in new unit sales, which should further enhance our operating results,” he added.

Comments

3 Wednesday, 01 February 2012 15:54

By Doug Reimel

"the company’s net loss was reduced by about $1.4 million related to the favorable resolution of various amounts due from a manufacturer whose brands the company no longer carries". This is the key phrase that I find very interesting. This phrase needs to be added to all of our dealer contracts. This is obvious proof that dealer contracts are not the same. This phrase in their contracts will cause havoc with manufacturers past and present contracts. What do you think?

2 Tuesday, 31 January 2012 20:23

By Robert Bartlett, Fairlee Marine

Aparantly Mr McGill has developed a truly unsustainable business model. Any company that cannot adjust and become profitable after 3+ years of a downturn doesn't deserve to survive. I am a small marine dealer, but I adjusted in real time all the way down (50%) and did produce a profit in every year of the downturn. Looks like Mr McGill has not made the adjustments necessary to make a profit in todays real world. He appears to be living yesterday's dream.

1 Tuesday, 31 January 2012 19:59

By Curtis

Inventory up, sales are down and they are still losing money. Now there is a good business model to copy.

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