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MarineMax reports record 1Q results

MarineMax Inc. said today that revenue grew by more than $10 million and it had a record profit of $4.2 million in its fiscal first quarter.

The company said earnings per diluted share grew more than 72 percent, to 19 cents, for the quarter that ended Dec. 31. The results compared with a profit of $2.6 million, or 11 cents a share, in the quarter last year and prompted MarineMax to raise its expectations for fully taxed earnings per diluted share from a range of $1.10 to $1.20 to a range of $1.30 to $1.40 for fiscal 2018.

MarineMax said it had first-quarter revenue of $236.9 million, compared with $226.9 million in the comparable period last year.

Same-store sales were flat, compared with 28 percent same-store sales growth in the same period last year, which the company said concluded an 81 percent three-year stacked same-store sales growth period.

The December quarter is typically the company’s smallest revenue quarter, and it often results in a losing quarter for dealers, including MarineMax. The company said this was its fourth consecutive profitable December quarter.

Pretax earnings grew more than 44 percent, to $6.5 million, a December quarter record, the company said.

“The strong execution by our team and the ongoing commitment to delivering enhanced and sustained cash flow with earnings growth resulted in record profitability in our December quarter,” said MarineMax chairman and CEO William “Bill” McGill in a statement.

“Our focus on maintaining a disciplined sales and service approach, while having the right models of inventory, enabled our superior performance in the quarter,” McGill added. “Trends in the quarter were generally encouraging, as we experienced a healthy mix in product sales, as well as an increase in our higher-margin businesses, resulting in meaningful gross margin improvement over last year. Absent the additional expenses associated with the January 2017 acquisition we completed, our team controlled costs and produced strong leverage in the quarter, which helped to drive our record earnings.”

The company’s effective tax rate for the December quarter was reduced to 34.8 percent from 40.9 percent in the comparable period last year, primarily because of the tax reform law that recently passed, the company said.

Included in the December quarter is an increase in the company’s income tax provision of $889,000, or 4 cents a diluted share, resulting from a remeasurement of the company’s deferred tax assets and liabilities, as a result of the new tax legislation. Absent such increase, the company’s diluted earnings per share would have been 23 cents during its fiscal first quarter.

“We began our important March quarter with a greater backlog than last year, and thus far early boat shows are encouraging,” McGill said. “With improving economic optimism, supported by the recent tax legislation, improving consumer confidence and ample inventory, we are well positioned to gain market share and drive positive growth in 2018.”

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