MarineMax said it turned a $2.6 million profit in the December quarter — a period that typically sees an operating loss for boat dealers — because of strong demand for large yachts.
The company said revenue grew more than 33 percent, to $226.9 million, in the first fiscal quarter from $169.5 million for the quarter last year.
Same-store sales increased 28 percent, building on 8 percent same-store sales growth in the same period last year, MarineMax said.
The company said it had net income of $2.6 million, or 11 cents a diluted share, for the quarter that ended Dec. 31, compared with $688,000, or 3 cents a share, in the quarter last year.
“Our strong same-store sales growth was supported by an increase in larger yacht sales, which traditionally carry lower gross margins, impacting our consolidated margins. Historically, when this has occurred we get good operating expense leverage, resulting in strong earnings growth, like we experienced this quarter,” MarineMax CEO William McGill said in a statement.
“This is the third consecutive year MarineMax has delivered a profitable first quarter, due in large part to the continued enthusiasm our team has for ensuring our customers are enjoying the boating lifestyle through the great products and new models we offer,” McGill said.
Based on current business conditions, retail trends and other factors, the company raised its annual guidance expectations for fully taxed earnings per diluted share to be in the range of $1.14 to $1.24 for fiscal 2017 from previous guidance of $1.04 to $1.14.
McGill noted that in addition to the strong start to the year, MarineMax is positioned to benefit from a larger presence in the Southeastern boating region of South Carolina and Georgia with the recent purchase of Hall Marine.
“This acquisition complements our successful 2016 acquisition of Russo Marine in the New England area,” McGill said. “Beyond the enhanced opportunities to increase market share, we have added considerable talent to our team through these acquisitions.”
“As we enter the important boat show season, consumer confidence remains near recent highs, our backlog remains above last year and we have more new models for our team to sell and deliver,” McGill said. “This provides us with growing confidence as we look out to the remainder of 2017. With our passionate team, ongoing innovative new products and a substantial balance sheet, MarineMax should continue to build on its market share gains as we move ahead.”