MarineMax, Inc. reported higher sales, revenues and earnings for its 2016 fiscal year in an earnings release Tuesday.
For the fiscal year ended September 30, 2016, the company produced revenue growth of over 25 percent to $942.1 million compared to $751.4 million in fiscal 2015. Same-store sales increased over 22 percent for the second consecutive year. Pretax earnings for fiscal 2016 were $34.8 million compared to $20.9 million last year. Included in fiscal 2015 pretax earnings was a $1.6 million gain from the sale of real estate, or $0.06 per diluted share. Absent such gain, the Company’s pretax earnings grew more than 80 percent in fiscal 2016 to $34.8 million from $19.3 million. Net income for the fiscal year ended September 30, 2016, was $22.6 million, or $0.91 per diluted share, compared to $48.3 million, or $1.92 per diluted share in the prior year.
Favorable weather and popular new boat models helped MarineMax drive growth for the year and quarter, William H. McGill, Jr., chairman, president and CEO, said during an earnings call Tuesday.
Greater availability of new models for the 2017 fiscal year will only help, he added.
“’16 was impacted by the fact that there were some new hot models that we couldn’t get in the Northern markets in times to be ’16 sales,” McGill said. “For 2017, the availability of some of the hot models, especially from Sea Ray, are going to have a good impact.”
The company and the industry are the strongest they have been since the Great Recession, McGill said.
“Fiscal 2016 was marked by consistent strong sales and sustained positive trends in the marine industry,” said McGill. “Overall, our team produced impressive comparable earnings per share growth of more than 85 perent, driven by our second consecutive year of 22 percent same-store sales growth plus the positive benefits derived from the strategic Russo Marine acquisition which was completed during the year. While we produced excellent results for the year, our fourth quarter experienced gross margin pressure as we more aggressively positioned our inventory for the winter season and the expected continued rollout of new models from our manufacturing partners. This coupled with the timing of several boat shows, which moved from October to September, shifting costs into the quarter, impacted our final results.”
The strength of the market has been felt across the country.
“Florida continues to be a leader for us in terms of growth,” said CFO Mike McLamb. “Most markets did well with the Midwest standing out as the second strongest.”
For the quarter ended September 30, 2016, revenue grew more than 20 percent to $227.3 million from $189.3 million for the comparable quarter last year. Same-store sales for the quarter increased over 12 percent, on top of 17 percent growth for the comparable period last year. Pretax earnings increased approximately 15 percent for the quarter ended September 30, 2016 to $6.3 million from $5.4 million last year. Net income for the quarter ended September 30, 2016, was $5.6 million, or $0.22 per diluted share, compared to $32.8 million, or $1.32 per diluted share in the comparable period last year.
“Current trends in the industry remain strong, as evidenced by our increasing sales backlog, the enthusiasm we are experiencing in our showrooms, growing crowds at boat shows, and attendance at our Getaways events,” McGill said. “Along with the past few years of sustained sales and earnings growth, these trends provide us with confidence that for fiscal 2017, we are well positioned to capture additional market share and earnings growth as the industry recovery continues. With the highest tangible net worth in our history, the right inventory, a committed and proven team, coupled with the ongoing excitement that new models and technology are generating, MarineMax is ready to build upon our past successes as we strive to grow long term value for our shareholders.”
See the full earnings release here.