Boating Industry

March 2017

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INDUSTRY NEWS www.BoatingIndustry.com March 2017 | Boating Industry | 11 MarineMax grows revenue over 33% in Q1 fiscal 2017 results, plans further acquisitions MarineMax, Inc. announced its revenue grew more than 33 percent to $226.9 million for the quarter ended Dec. 31, 2016 from $169.5 million for the comparable quarter last year. Same-store sales increased 28 percent, build- ing upon the 8 percent same-store sales growth in the same period last year. "I would like to thank the MarineMax team for all their hard work and continued commitment to our customer-centric ap- proach, which is – evidenced by our results – resonating with boating enthusiasts," said William H. McGill, Jr., chairman, president, and chief executive officer in a webcast detail- ing the results. "We attribute the continued strength in our business to a combination of our team's talent and focus on our strategies, the flow of innovation into new products and our balance sheet that can support the growth initiatives we have in place." The December quarter is typically the company's smallest revenue quarter of the year and is usually a loss quarter for most marine dealers, including MarineMax. The company produced a profitable first quar- ter with net income of $2.6 million or $0.11 per diluted share for the quarter ended Dec. 31, 2016, compared to $688,000 or $0.03 per diluted share for the comparable quarter last year. "Our strong same-store sales growth was supported by an increase in larger yacht sales, which traditionally carry lower gross mar- gins, 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," said McGill. In addition to the strong start to the year, MarineMax says it is positioned to benefit from an enhanced presence in the strong Southeastern boating region of North and South Carolina along with Georgia as a re- sult of the recent acquisition of Hall Marine. (See related story p. 15) This acquisition complements MarineMax's 2016 acquisition of Russo Marine in the New England area. McGill noted in the webcast that these acquisitions have continued to perform well, in particular Russo Marine, which exceeded expectations on all fronts. When asked if there were more acquisitions in the pipeline for MarineMax, McGill answered with a strong affirmative, noting the company takes its time determining whether or not the cul- tures are right for the company. He pointed out the seamless assimilation of Russo Ma- rine and Hall Marine Group into the Marine- Max family as proof of why this is necessary for the company. "We're not out doing acquisitions just for territory or to grow the company. We want to make sure the business will continue and the people will continue," said McGill. "We're interested in the senior people in the company and management." The company was further asked about whether MarineMax was seeing increased competition for deals, due to increased merger and acquisition activity in the ma- rina and boat dealer segments. McLamb confirmed the marina segment has seen an increase in competition due to a few large players, but said the company has not run into competition on the dealer front with the companies it is targeting. "There is a little bit of increased activity out there, but for the type of dealers we are looking at and with the succession planning they're doing, and the planning for their teams and who they want their teams to be working for, we haven't run into any compe- tition for the dealers we're talking to," he said. Groupe Beneteau Americas promotes Andy Lindsay, adds Phil Davidson Groupe Beneteau Americas announced a promotion and a new hire at its Cadillac, Mich. operation. The company announced the promotion of Andy Lindsay to the position of vice presi- dent of sales for Groupe Beneteau's Cadillac operations. Lindsay will take lead for sales of the Four Winns, Scarab Jet, Glastron and Wellcraft boat brands for the Americas. Lindsay joined the company as a regional sales manager in 1990. Since then, Lindsay has held several positions, most recently serving as vice president of sales for the Four Winns and Scarab Jet boat brands. Phil Davidson has also joined the team as the director of dealer development for Four Winns, Scarab Jet, Glastron and Wellcraft. Davidson will be based out of Groupe Bene- teau's operations in Cadillac, Mich. where the U.S. brands are manufactured. 2016 sales up 16.6 percent for Chaparral, Robalo parent Net sales were up 16.6 percent for 2016 for Marine Products Corporation, the parent company of Chaparral and Robalo. For the quarter ended December 31, 2016, Marine Products generated net sales of $57,238,000, a 14.7 percent increase com- pared to $49,881,000 in the same period of the prior year. The increase in net sales was primarily due to a 13.6 percent increase in unit sales, as well as an increase in parts and accessories sales, partially offset by a slight decrease in the average selling price per boat, the company said. Gross profit for the quarter was $12,203,000, a 9.8 percent increase compared to gross profit of $11,117,000 in the same pe- riod of the prior year. Gross profit for the fourth quarter increased compared to the prior year due to higher net sales, the com- pany said. Operating profit for the quarter was $5,234,000, a slight decrease compared to $5,420,000 in the fourth quarter of last year. This decrease was due to higher selling, gen- eral and administrative expenses during the fourth quarter of 2016 as compared to the prior year, which was attributed to higher warranty expense during the fourth quarter

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