MarineMax sees signs of improvement, but recovery still choppy
Christopher Gerber (CGerber@BoatingIndustry.com)
July 27, 2012
Filed under News
In a fiscal third quarter conference call on Thursday, MarineMax executives cited evidence of an industry that is indeed improving but cautioned that the recovery remains choppy.
During what is historically the biggest quarter of the year for the company, MarineMax recorded a slight year-over-year decline with revenue of $151.3 million but saw 1 percent same store sales growth. This was partly due to an exceptional June last year driven by large boat sales, according to the company.
MarineMax did, however, post its most profitable quarter since 2007 with net income of $4.6 million and is profitable on the year so far.
These signs support mounting evidence that the industry is indeed improving, according to the company's CEO Bill McGill.
Mike McLamb, MarineMax CFO, noted on the conference call that the company has seen higher margins on new and used boat sales and that the company still sees upside on product margins.
McGill also said that reduced expenses and structural changes implemented by the company as it emerged from the depths of the recession have started to pay off.
"Customers are returning," said McGill, "and it is our job to enhance the time they spend on the water."