MarineMax Inc. reported a 37 percent jump in same-store sales in the third quarter, posting record results as the coronavirus pandemic fueled widespread demand for boats across the United States.
Net income for the quarter grew more than 83 percent to almost $35 million — compared to just over $19 million in the third quarter last year — and earnings per diluted share grew more than 88 percent to $1.58, versus $0.84 last year.
“Generating same-store sales growth of 37 percent driven by unit growth, clearly demonstrates the strength and flexibility of our business model and the MarineMax Team,” said MarineMax president and CEO Brett McGill in a statement releasing fiscal results this morning.
The MarineMax team worked hard to overcome “unprecedented uncertainty in the quarter, while generating record results, as we accomplished our goal of uniting our customers and their families on the water, safely,” said McGill.
The company is also taking market share with its variety of inventory, said McGill. Due to a leap in demand and a manufacturing shutdown in the spring, some dealers say they are out of inventory or are close to being out.
“Although the entire industry is lean on inventory due to the strong demand for the boating lifestyle, our deep manufacturer relationships, flexible inventory management and valuable real estate locations positions us well to continue to take share,” said McGill. “I am proud of our ability to be nimble and disciplined, creating exceptional customer experiences while driving record results in our traditionally largest quarter.”
Same-store sales for the nine months were up around 22 percent, on top of 5 percent growth for the comparable period last year.
For the nine months that ended June 30, revenue increased about 20 percent to $1.1 billion, compared with $929 million for the same period last year. And net income rose over 67 percent to $49.1 million, or $2.23 per diluted share, compared with $29.3 million, or $1.26 per diluted share for the comparable period last year.
“Our digital investments further enhanced our lead visibility and created significant efficiencies in our sales efforts, while increasing our on-line presence. Overall, we added new customers to boating and to our data base, adding a layer of future growth potential that should benefit us long-term.”
The company’s liquidity — which consists of cash, cash equivalents and availability under its credit facility, before considering its unleveraged real estate portfolio — exceeded $180 million as of June 30.
“With one of the strongest balance sheets in the industry, we remain well capitalized to make strategic accretive acquisitions to further enhance our geographic presence, to add to our marina strategy and to further grow our higher margin businesses,” said McGill.
The addition of Northrop & Johnson announced this month, along with the Fraser Yachts acquisition in 2019, gives MarineMax “unrivaled global scale” while diversifying the company into a higher-margin, digitally-focused business, said McGill.