Sea Glass Capital announces re-launch

Press Release

“Optimism for Industry Rebound”

After spending the last two years waiting for the industry to recover from the Great Recession, Sea Glass Capital Advisors announces that it is re-launching its Business Navigation ServicesTM in the recreational marine industry as it believes the industry is rebounding. Sea Glass offers a full range of strategic, operational, financial and merger and acquisition services that help companies maximize their profits and growth potential.

Sandy Spaulding, the Managing Partner of Sea Glass, notes that: “When we first launched Sea Glass Capital Advisors in 2005, we were optimistic about the prospects of the recreational marine industry and likewise, bullish that investors, including private equity groups, would be attracted to the industry”. But, he says, “By the second half of 2008 and into 2009, the Great Recession wreaked havoc on the recreational marine industry. Most boat production fell well over 50%, some 100%! The pipeline was clogged with excess inventory at the dealer level, more than half of whom reportedly went out of business by the end of 2010. Even service yards, which often claim to be counter cyclical, commonly suffered 30% declines in revenues. Marinas had excess capacity for the first time in years. Investors got burned.”

As background, 2009 was a year when the economy just fell and business activity dried up. The next year, 2010, was a year when a few brave souls felt the economy had fallen far enough and they started to invest in the pieces. However, it is believed that no owner of a marine company was getting any payouts for their stock. Instead, deals were being cut with the banks and other lenders to take over the ownership of companies. The rest were still just hanging in there. In 2011, there were signs that the US economy was in a recovery. It was, but the recovery has been weak. According to the NMMA’s 2011 Statistical Abstract, recreational boating generated $32.3 billion in sales and services in 2011. That is a six percent increase from 2010, but is still significantly below the 2007 number of $38 billion. Furthermore, the number of pre- owned and new powerboats and sailboats sold fell by 2%.

InfoLink’s Bellweather Reporttm, however, has indicated growth in 2012 boat sales. Industry players such as Brunswick and Marine Max are forecasting growth due to pent up inventory and the stock market is at a seven year high.

Furthermore, Sea Glass Capital Advisors has seen examples of businesses succeeding in this flat economy and is optimistic that many more will be making investments and seeing the benefits inayearortwo. Spauldingsays“WhatISstrikinglyclearisthatthosecompaniesthathave found the resources to invest in their business are still growing in this flat economy. They have found ways to come out with new models, purchase (or lease) a new travelift, install a paint shed, or purchase new software, add marina amenities or hire good people. The reverse, unfortunately, is also true. Those marine businesses that are standing still, hoping to ‘just survive’, and are waiting for the economy to ‘turn around’, are at a high risk of failing or becoming the ‘walking dead’. We want to help companies be financially successful.”

For all these reasons, Sea Glass Capital Advisors is pleased to announce the re-launch of its Business Navigation Servicestm for the recreational marine industry.