Unusually strong demand for large boats led MarineMax to report some of its best-ever quarterly results, prompting the company to raise its guidance for 2016.
Revenue at MarineMax grew 49 percent to $345.6 million for the quarter and same-store sales grew 44 percent on top of 10 percent growth during the same period last year, leading the company to increase its expectations for diluted earnings per share by 78 percent.
“Our excellent results are a testimony to the strength of our team and the passion for the boating lifestyle enjoyed by many and desired by most,” MarineMax CEO William McGill said in a statement. “The cadence throughout the quarter was consistently strong as we drove exceptional unit and revenue growth, as almost every category and brand contributed to our performance.”
Pretax earnings for the quarter were $23.1 million, compared with $14.9 million in the same period last year, which included a $1.6 million gain from the sale of real estate.
Reported net income for the quarter that ended June 30 was $14.1 million, or 57 cents a diluted share, compared with $14.9 million, or 59 cents a share, including the $1.6 million, or 6-cent-a-diluted-share gain, in the quarter last year.
“Larger boat sales were unusually strong for a June quarter, further driving our same-store sales growth,” McGill said. “We believe that our results demonstrate that our customer-centric strategies are aligned with the needs of our customers, which continues to drive our industry-leading market share gains.”
MarineMax raised its guidance expectations for fully taxed earnings per diluted share to be in the range of 86 to 90 cents for 2016 from its previously issued range of 68 to 75 cents. This compares with an adjusted, but fully taxed, diluted earnings per share of 47 cents in fiscal 2015.
“Our manufacturing partners are investing considerably more in new model development than they have in many years,” McGill said. “Our growth has been aided by these new models as consumers seek newer, innovative products that better enhance their boating lifestyle.”
A continued industry recovery should result in more new models and increased production, he said.
“It is worth noting that our strong June quarter results are among the best we have reported in our history, even though industry unit sales are considerably lower than historical levels,” McGill said. “The brand and segment expansions we executed during the Great Recession are driving meaningful growth despite the current industry unit levels.”
As the industry continues to recover in the coming years, such expansion should further contribute to even greater cash flow and earnings growth, McGill said.
“Additionally, with our strong and improving balance sheet, we are well positioned to capture additional growth and take advantage of additional opportunities as they evolve.”