MarineMax reports record revenue
A return to market seasonality, increased available inventory and a sharp increase in expenses are all reflected in the retailer's results…
MarineMax has reported record revenues of $594.6m for its fiscal fourth quarter and $2.39bn for the fiscal year ended September 30th, 2023. Both results are up 11% and 4% respectively on the same periods in 2022.
Product margins on boat sales during Q4 suffered a slight decline of 240 basis points (2.4%) to 34.3% as a result of the industry’s return to seasonality and greater inventory levels. However, gross profit for the quarter increased by 3.5% to $203.7m from the same time last year, mainly due to income generated from acquisitions such as IGY Marinas.
“With the addition of businesses such as IGY, we have significantly enhanced the potential for expansion and synergies within our existing superyacht services and luxury yacht offerings,” says William Brett McGill, company CEO and President.
“Supported by our strong balance sheet, we continue to actively expand our global market presence, exemplified by our most recent acquisition of Atalanta Golden Yachts in Greece, which closed in early October.”
The record revenues were offset however by an increase in expenses. Over the course of the fiscal year, selling, general, and administrative expenses totalled $634.5m, or 26.5% of revenue. Interest expenses grew too, amounting to $53.4m, compared with $3.3m in the prior period, reflecting the sharp increase in global interest rates and the growth of the company’s long-term debt associated with the IGY acquisition.
Due to this spike in expenses, net income fell 60.7% to $15.1m in Q4 2023, compared to the same period last year. This resulted in a 44.8% decrease in net income for the year, which dropped to $109.3m.
Despite increasing company debt and amassing high-interest fees, the IGY acquisition has continually been attributed to the firm’s growth in revenue and profit this year. Gross profit increased 3.7% to $835.3m and the margin remained flat at 34.9% for the twelve months, as the higher margin revenues from IGY were offset by the decline in new and used boat product margins.
“Our strong close to fiscal year 2023 stands as a testament to the exceptional performance of our team,” adds McGill. “As we look ahead to 2024, we are excited to build upon this foundation and deliver on our commitment to providing unparalleled boating and yachting experiences to a growing number of customers worldwide.”
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