MarineMax, Inc. has announced record-setting results for its first quarter ending Dec. 31, 2017.
Revenue grew over $10 million, or 4.4 percent on top of 33 percent growth in the prior year, to $236.9 million for the quarter ended Dec. 31, 2017 from $226.9 million in the comparable period last year.
Same-store sales were flat as compared to 28 percent same-store sales growth in the same period last year, which concluded an 81 percent three-year stacked same-store sales growth period for the company.
The December quarter is typically the company’s smallest revenue quarter of the year, which often results in a loss quarter for most marine dealers, including MarineMax.
The company, for the fourth consecutive year, produced a profitable December quarter. Pretax earnings grew over 44 percent to $6.5 million, a December quarter record.
For the quarter ended Dec. 31, 2017, the company produced record net income of $4.2 million and earnings per diluted share grew over 72 percent to $0.19 as compared to net income of $2.6 million or $0.11 per diluted share last year.
The company’s effective tax rate for the December quarter was reduced to 34.8 percent from 40.9 percent in the comparable period last year, due primarily to the 2017 Tax Cuts and Jobs Act legislation that was recently passed.
Included in the December quarter is an increase in the company’s income tax provision of $889,000, or $0.04 per diluted share, resulting from a re-measurement of the company’s deferred tax assets and liabilities, as a result of the new tax legislation. Absent such increase, the company’s diluted earnings per share would have been $0.23 in the quarter ended Dec. 31, 2017.
“The strong execution by our team and the ongoing commitment to delivering enhanced and sustained cash flow with earnings growth, resulted in record profitability in our December quarter. Our focus on maintaining a disciplined sales and service approach, while having the right models of inventory, enabled our superior performance in the quarter,” said Chairman and Chief Executive Officer William H. McGill, Jr.
Trends in the quarter were generally encouraging as MarineMax experienced a healthy mix in product sales as well as an increase in higher margin businesses, resulting in meaningful gross margin improvement over last year, McGill reported.
McGill said that absent the additional expenses associated with the January 2017 acquisition MarineMax completed, the team controlled costs and produced strong leverage in the quarter, which helped to drive the company’s record earnings.
“We began our important March quarter with a greater backlog than last year and thus far, early boat shows are encouraging,” McGill added. “With improving economic optimism, supported by the recent tax legislation, improving consumer confidence, and ample inventory, we are well-positioned to gain market share and drive positive growth in 2018.”