MarineMax reports record revenue for its fiscal third quarter
Strong demand and recent investments have contributed to the boat retailer’s record revenue, but it has felt the sting of high-interest rates too…
MarineMax has announced record revenues of $721.8m in its results for its fiscal third quarter, which ended June 30th. With revenue up 4.8% from $688.5m in Q3 2022, the company says the increase is directly attributable to the contributions from IGY Marinas, following its acquisition in October.
“Our team outperformed our expectations in the third quarter, highlighted by record revenue, solid earnings, and strong cash flows,” says Brett McGill, CEO and President, MarineMax. “Robust consumer demand and enthusiasm for boating, particularly in the premium segment, fueled new and used boat revenue and resulted in a modest increase in same-store sales in the quarter.”
The firm’s profit margin stands at 33.8%, up to $243.8m from $236.5m in the same period last year. Although this is 50 basis points (0.5%) below the profit margin in its fiscal 2022 third quarter results.
“While the marine industry is seeing a return to seasonality that led to incrementally more aggressive retail pricing during the quarter, our margins remained healthy, strengthened by the more profitable business lines in our integrated marine portfolio,” adds McGill.
Notably, operations have become more expensive over the last 12 months. Selling, general, and administrative expenses totalled $169.2m, or 23.4% of revenue, compared with $141.2m (20.5% of revenue) last year.
Interest expenses have rocketed too, totalling $14.8m in the third quarter from $1m in the same period the previous year. This reflects the higher interest rates seen in businesses worldwide, as well as the increase in the long-term debt associated with the IGY Marinas and inventory acquisitions.
In terms of net income, MarineMax finished the quarter with $46.5m, a steep decrease from $71.5m in Q3 2022. This is partly due to the acquisition of C&C Boat Works during the quarter, as well as the aforementioned increase in expenses.
Recently, the firm increased the amount of money it can borrow by extending its line of credit to $950m. Previously, MarineMax’s creditor’s ‘floor plan facility’ (a line of credit used to finance inventory acquisitions) allowed the company to borrow up to $750m. Now with the improved cash flow, MarineMax aims to grow its portfolio with the purchase of new and used yachts.
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