MarineMax posts 5% revenue jump in Q3
MarineMax, Inc. recently announced results for its fiscal 2024 third quarter ended June 30, 2024, which included a total revenue of $757.7 million, a 5% increase year-over-year.
“Despite persistent retail headwinds in the third quarter, our team executed well, delivering 5% top-line growth,” stated MarineMax CEO and president Brett McGill. “Our solid third-quarter performance in this challenging operating environment underscores the importance of our value-creation strategy, which focuses on expanding our high-margin, less cyclical revenue streams. This strategic expansion, encompassing marinas, superyacht services, and other offerings, has strengthened our gross margin profile—now consistently exceeding 30%—and enhanced our cash flow generation and balance sheet resilience. These improvements come at a crucial time, as macroeconomic softness weighs on retail boat margins industry-wide. By strategically realigning our business, we’ve better positioned ourselves to weather market fluctuations and capitalize on emerging opportunities across our diverse portfolio.”
The company said the top-line growth was primarily driven by an increase in boat sales. On a comparable same-store basis, revenue increased 4%, reflecting higher new and used boat revenue as well as other areas of the company’s retail operations segment, which includes marina, parts, finance and insurance, super yachts group and charter.
Gross profit decreased 1% to $242.1 million from $243.8 million in the prior-year period. Gross profit margin of 32% decreased 180 basis points from 33.8% in the comparable period last year, reflecting a higher level of promotional activity to drive boat sales in the face of challenging retail operating conditions.
“The recent formation of our new SuperYacht Division (SYD) exemplifies our strategy to generate increasing operating and commercial synergies across our portfolio,” McGill said. “The SYD integrates the operations of Fraser Yachts, Northrop & Johnson, Fairport Yacht Management, SuperYacht Management and Atalanta Golden Yachts (AGY), streamlining the back-office functions of these businesses into a unified entity. Our expansion into superyacht services began many years ago as our existing Azimut, Galeon, and Ocean Alexander customers, and others from our retail dealership operations, migrated to increasingly larger yachts. The complexity of these vessels demanded specialized services, which our SYD companies are exceptionally well-positioned to provide.”
“As part of our long-term operational improvement plan, we initiated strategic cost-cutting actions to better align our expense structure with the current operating environment and improve operating leverage,” McGill concluded. “During the fourth quarter and into fiscal 2025, we expect to see increasing cost savings from these initiatives, which will further improve our cash flows.”
