MarineMax, Inc., the nation’s largest recreational boat and yacht retailer, announced results on Thursday for its first quarter ended December 31, 2015.
Revenue grew more than 7 percent to $169.5 million for the quarter ended December 31, from $158.1 million for the comparable quarter last year. Same-store sales increased 8 percent, building upon the 45 percent same-store sales growth in the same period last year.
“The growing interest in new boats from our manufacturing partners and our focus on enhancing the boating experience is resonating with our customers, as evidenced by our strong results to start fiscal 2016, which exceeded the extraordinary growth we produced in the same quarter last year," McGill said. "We are encouraged that our earnings growth and margin expansion were due to strong sales of new models and unit growth that actually exceeded our same-store sales growth.”
Click here to see the full results.
Last year's fiscal first quarter (the final quarter of 2014 calendar year) was the first December quarter to be profitable for MarineMax in several years, said CEO Bill McGill during an earnings call discussing the results.
"We challenged our team ... and they delivered," he said. "Many categories showed increases for the month of December. We believe our growth outpaced that of the industry, resulting in market share gains."
MarineMax increased new unit sales by about 20 percent, besting the industry average.
"It was a good quarter for the industry and we had a great quarter," said CFO Mike McLamb.
New products from Sea Ray, Boston Whaler, Azimut and others are helping to drive growth.
"It is the first time in many, many years that we have a portfolio of new products that is going to do very, very well for us," McGill said.
For the second consecutive year, the Company produced a profitable first quarter with net income of $889,000 or $0.04 per diluted share for the quarter ended December 31, 2015, compared to $214,000, or $0.01 per diluted share, for the comparable quarter last year. On a pretax basis, the quarter ended December 31, 2015, was almost seven-times greater than the December 31, 2014 quarter.
“The excitement we generated in the December quarter, has continued into the boat shows that we have participated in since the start of January, which is the beginning of the winter boat show season," McGill said. "However, we understand that we still have our three largest quarters in front of us. In order to build on the early success of our fiscal year, we must execute and deliver on our strategies each and every day. We believe we have the team, the approach, the balance sheet strength and the brands that position us best to capitalize on current trends and grow our earnings and cash flow as we move ahead.”
McGill also discussed the recent acquisition of the Bahia Mar Marina in Pensacola. The marina's large number of wet and dry slips will help improve cash flow, and its on water location will make for a good future home for the company's currently landlocked Pensacola location. MarineMax has had a Pensacola location for 13 years but will be moving its operations to Bahia Mar Marina.
MarineMax also continues to explore other acquisitions.
"We are in discussion with several larger dealers," McGill said. "The timing has to be right. It's getting right. The chances of something happening sooner are greater than it was six months ago or a year ago."