Skip to main content

2008 was 'Much More Dramatic'

MarineMax released second-quarter earnings after pulling guidance and furloughing an undisclosed number of workers.

MarineMax released second-quarter earnings after pulling guidance and furloughing an undisclosed number of workers.

MarineMax reported revenue growth of almost 2 percent, to $308.5 million, for its second quarter, which ended March 31, from $303.6 million for the comparable quarter last year.

Analysts on a call to discuss earnings were somewhat surprised when management announced that despite repercussions from the pandemic, MarineMax generated positive same-store sales by using its digital platform and promotions to drive traffic.

Same-store sales for the quarter increased more than 1 percent, on top of 12 percent during the same period last year. Income before taxes was $6.7 million, compared with $7.2 million for the same quarter last year. Net income was $5.1 million, or $0.23 per diluted share, for the quarter,compared with net income of $5.3 million, or $0.23 per diluted share, for the comparable quarter last year.

The company saw sales plummet around mid-March but said anecdotally that there had been some positive momentum regarding April trends, and management credited the company’s digital capabilities for at least part of those sales.

“This unfortunate event was probably a little bit of a catalyst for leveraging our digital tools to get them further down the pipeline,” CEO Brett McGill said. “I think it will reshape the way business is conducted going forward.”

MarineMax might have taken some market share, given its ability to mimic the shopping experience online, CFO Mike McLamb said. “If you look at March data, it was down 20 percent,and that was in the best categories,” he said. “Some were down 60 percent. Obviously we did not experience that.”

MarineMax was down 25 percent in March but rebounded to the mid-teens by late April,McLamb said.

McLamb said the company took a hit when the Palm Beach International Boat Show was canceled. The show typically generates millions of dollars of sales, he said. “That will clearly have an impact on the customer deposit line. We commented that we’re tracking positive. I think that speaks to the digital tools, and our team and our customers’ passion for the water. But it is a meaningful show.”

MarineMax has not appealed to have its curtailments waived for now, McLamb said. “Given the trends we’re seeing, our financial statement strength, our liquidity moving into the March quarter— we will if we think we need to, but we do not think we need to today.”

The company will continue to look for brands and markets, as well as marina opportunities that may arise, McGill said. “I’d say it’s kind of the same pattern we’ve had over the years. We will continue to look at that,” he said. “Our balance sheet is strong, and when the timing’s right and there is less uncertainty … we will look to capitalize on opportunities as they come up.”

It’s difficult to operate in states that have required closures or those that have declared boating as non-essential, McGill said, but MarineMax was able to make deliveries, adhering to distancing guidelines. “People are boating in a responsible fashion, and we are marketing that,” he said.

MarineMax didn’t have guidance to offer regarding profits or losses for the year, and it declined to specify how many workers had been furloughed, as timing was different in various markets regarding reopening business. “Right now we’re trying to keep our team working,” McGill said.

“It’s our intention to bring as many people back as fast as we can,” McLamb added.

Management withdrew it 2020 guidance earlier this month when the furloughs were announced. “We have limited data right now,” McLamb said. “It would be premature to talk about what our profit thoughts are. You heard our comments; we feel better today. I’ll tie my comment into the 2008 period. Anyone who followed us in ’08 knows the conference calls did not sound like this. They were more dramatic, and the actions we were taking were more dramatic. We’ll take further action if needed, depending upon what changes.”

MarineMax said it ended its second quarter of fiscal 2020 with $90 million of liquidity on its balance sheet, comprising $64 million in cash and cash equivalents, along with $26 million available under its floorplan financing facility.

The company’s $440 million floorplan facility had $363 million outstanding March 31, whichdoes not mature until October 2022. Additionally, there are no operating covenants in its floorplan facility; the company’s leases are shorter term in nature, enhancing its flexibility; and retail financing remains stable, MarineMax said said in a statement.

The company, which generates around 80 percent of its revenue through new- and used-boat sales, owns about half of its locations, and all are debt-free. It had $506.9 million of inventory March 31 and is working with manufacturers to align orders with demand.



Industry Mourns Cruisers Yachts Owner

K.C. Stock, who was 84, was known for his “commitment to the employees at Cruisers Yachts.”


Grand Banks Purchases Florida Property

The parcel, which is opposite the company’s Stuart yard, has berths for up to nine boats and will increase service capabilities.


Limestone Boat Co. Posts Q3 Results

Unit production was down compared with the second quarter, and revenues decreased 33%.


Yamaha Dealers Now Carry Siren Systems

Siren Marine’s “Connected Boat” technology can be purchased and installed at more than 2,100 Yamaha outboard dealers.


Northpoint Expands Marine Presence

Northpoint Commercial Finance has partnered with Elite Recreational Finance to offer retail financing.


BRP Reports 71% Increase in Q3 Revenues

The Sea-Doo manufacturer had total revenue of $2.7 billion, but North American marine retail sales were down 47%.


Airmar Announces Training Dates

Certified Installer and SmartBoat system classes are being held this month in New Jersey and next year in New Hampshire.


The Survey Says …

Surveying customers to find out what they think about your business has never been more important.


Marine Development Inc. Changes Hands

Mick Webber, the former president/CEO and owner of HydroHoist, has purchased the company from its founders.