MarineMax reports significant growth in third quarter fiscal 2016 results
MarineMax experienced significant growth in its third quarter ended June 30, 2016, according to the company’s third quarter 2016 fiscal results.
Revenue grew over 49 percent at Marine Max, to $345.6 million, from $231.8 million for the comparable quarter in 2015. Same-store sales grew 44 percent, which is on top of 10 percent growth in the same period last year.
This quarter was one of the best quarters in MarineMax’s history, as it represents the company’s third largest revenue quarter and the second-highest pre-tax profit quarter ever.
“I am extremely proud of the very strong results produced by our team this quarter. Our team is truly the best of the best” said William H. McGill, Jr., chairman, president and CEO of MarineMax in an earnings call. “As we have said several times, what customers desire is new, different and innovative products, and fortunately our manufacturers are delivering such.”
MarineMax had a particularly strong quarter selling larger yachts over 60 feet, which contribute to the company’s growing cash flow and earnings. Used boats also performed well in the quarter. The April acquisition of former Boating Industry Top 100 dealer Russo Marine to MarineMax has gone very well, according to McGill, with many synergetic benefits to both teams.
Pretax earning for the quarter were $23.1 million, compared to $14.9 million in the same period of the previous year, which included a $1.6 million gain from the sale of real estate. The company was not required to provide an income tax provision in the same period in 2015.
“The cadence throughout the quarter was consistently strong as we drove exceptional unit and revenue growth, as almost every category and brand contributed to our performance,” said McGill. “We believe that our results demonstrate that our customer centric strategies are aligned with the needs of our customers, which continues to drive our industry leading market share gains.”
Reported net income was $14.1 million, or $0.57 per diluted share, for the quarter; this is compared to reported net income of $14.9 million of $0.59 per diluted share, including the $1.6 million or $0.06 per diluted share gain in the June 2015 quarter. Assuming the same tax rate in both periods and excluding the benefit of the $1.6 million gain in the June 2015 quarter, comparable adjusted diluted earnings per share grew in excess of 78 percent to $0.57 compared with $0.32.
“While the official market share data will not be out for 90 days, we believe our results are much stronger than the industry. But the industry, like us, is clearly continuing to make progress and growth, which is great to see,” said McGill.
For the nine months ended June 30, 2016, revenue grew 27 percent to $714.7 million, compared with $562.1 million for the comparable period last year. Same-store sales increased more than 25 percent, which is on top of 23 percent growth in the comparable 2015 quarter.
Pretax earnings for the nine months ended June 30, 2016 were $28.5 million, compared with $15.5 million in the same period last year, which included the $1.6 million gain noted above. The company was not required to provide an income tax provision in the same period of 2015.
Reported net income was $17.4 million, or $0.70 per diluted share, for the nine months ended June 30, 2016, compared to reported net income of $15.5 million or $0.61 per diluted share, including the $1.6 million or $0.06 per diluted share gain noted above. Assuming the same tax rate in both periods, and excluding the benefit of the $1.6 million gain in the nine months ended June 30, 2015, comparable adjusted diluted earnings per share for nine months ended June 30, 2016 more than doubled to $0.70 compared with $0.33 in the same period last year.
MarineMax’s inventory was up about 19 percent year-over-year to 307 million, yet it’s down 11 percent sequentially from the March quarter. Part of the planned increase in inventory for MarineMax is due to the company’s expectations regarding its ability to perform in an improving industry, combined with the need to have new models in stock the company did not have last year. Overall, the inventory increase is less than MarineMax’s same-store sales growth, resulting in a planned continual improvement in inventory turns.
“The demand is exceeding supply right now on the hot new models, and so as they continue to ramp up and to get us the new models, I think we’ll see even greater success,” McGill said.
MarineMax believes the brand and segment expansions the company executed over the past several years has made the company much larger and more profitable at considerably lower unit levels than before. McGill said MarineMax is more diversified and better able to serve a broader customer base, which is driving greater growth.
“We believe the future is bright, as more new models are developed and produced while the industry continues its recovery,” said McGill. “Additionally, with our strong and improving balance sheet, we are well positioned to capture additional growth and take advantage of additional opportunities as they evolve.”
For more information, please visit www.marinemax.com.
