Spader dealers report mixed financials

SIOUX FALLS, S.D. – New boat sales and total dealership sales were up slightly for smaller dealers and down slightly for larger dealers during the six-month period ending June 30, Spader Cos. reported this morning.

The training and consulting company tracks approximately 60 dealers in North America, dividing them into two categories: those doing under $5 million in business at retail and those doing over $5 million.

New boat sales for small dealers were up 1.2 percent from the same period in 2003 – from $1,395,771 to $1,411,873 – but fell from $4,555,420 to $4,445,388 for large dealers, a 2.4-percent drop.

Total dealership sales for large dealers were down 2.5 percent, from $6,827,112 in 2003 to $6,655,305 this year, but rose 4.4 percent – from $2,108,828 in 2003 to $2,202,075 this year – for smaller dealers.

Small dealers

Profits for small dealers were up slightly from 2003. They reported a net profit of 5.8 percent of sales, or $127,453, compared to 4.8 percent, or $100,589, in 2003.

Spader reported that used boat sales dropped 3.7 percent, from $193,453 in 2003 to $186,240 during the same six-month span in 2004.

New boat inventories were 5.5-percent below inventories during the same six-month span in 2003, from $1,163,638 to $1,099,764, and used boat inventories dropped 25.2 percent, from $108,428 in 2003 to $81,148 this year.

Total gross margin percent was down 0.8 points to 27.2 percent, while total unit margin percent was up 0.6 points to 19.2 percent.

Spending in terms of dollars was down slightly; however, as a percentage of gross margin is was 4.3 points less than the same period of 2003.

Large dealers

Large dealers reported a net profit of 5.9 percent of sales, or $391,720, compared to 6.0 percent, or $408,411, in 2003.

Used boat sales for large dealers rose 9.8 percent in 2004, when compared to the same span in 2003, from $748,041 to $821,084.

New boat inventories were down 12.9 percent, from $3,577,168 to $3,115,986, but used boat inventories rose 6.1 percent to $448,396 from $422,452.

Spader reported that total gross margins were unchanged from 2003, holding steady at 25.9 percent, while total unit margins were down 0.5 points to 17.3 percent. Spending was down in terms of dollars, but up slightly as a percentage of gross margin.

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