AUSTIN, Texas – Boat retailer Travis Boats & Motors, Inc. experienced net sales of $47.2 million for the three months ended June 30 versus net sales of $53.1 million for the same quarter of the prior fiscal year, it reported in a press release today.
The company said its net income had increased by over 100 percent for the quarter to $1.2 million from $438,000 in the same quarter of the prior year. The increase in net income was primarily the result of the company generating higher gross profit margins on its boat sales compared to the prior fiscal year's quarter.
Travis improved unit sales volumes in many of its boat segments; however, the increases were not sufficient to overcome the previously announced elimination of yacht sales and ongoing transitions in offshore product. As a result, comparable store sales for the quarter decreased by 10 percent versus the prior year, according to the company.
For comparative purposes, if adjustment is made to net sales in each period for the elimination of yacht sales and the brand transition in off-shore fishing boats, comparable store sales increased by 4 percent for the three months ended June 30, the company said.
For the nine months ended June 30, the company reported its operating loss was reduced 54 percent to approximately $2.2 million, from $4.8 million in the same period of the prior year. During the nine-month period, the company reported a net loss of $5.1 million versus a net loss of $5.1 million for the same period of the prior year.
"In the June quarter, we gained momentum in sales and margins. Without the margin pressure felt a year ago with the significant inventory sell-through, the company has been able to substantially reduce its operating losses,” said Mark Walton, president of Travis Boats. “However, there remains important work to be done to increase our sales to eliminate our operating losses and improve our overall working capital position."
- For more of the latest news, click here.