MarineMax increases sales, profits in 2012
The nation’s largest boat dealer grew revenue this year and increased earnings by more than $12 million as the marine industry continues to recover.
For the fiscal year ending September 30, MarineMax had revenue of $524.5 million, a 9 percent increase from 2011. Net income for the year was $1.1 million, compared to a loss of $11.5 million last year. Same-store sales were up 11 percent.
The 2012 results, coupled with a positive Fort Lauderdale boat show last month, have MarineMax confident about 2013, said CEO Bill McGill.
Marine Max believes “the industry has begun to rebound and that we will continue to build on these positive trends,” he said.
MarineMax is continuing to diversify its product offering, McGill said, to take advantage of changing boat-buying habits. The company is adding more pontoons, outboard and jet boat offerings at those locations where it makes sense. That’s a reflection of the fact that MarineMax’s traditional strength is in the sterndrive and inboard-powered boats, which have been much slower to recover.
Still, the company expects to see recovery in its larger sport cruiser segment as the economy improves.
“People that have discretionary dollars are still out there and the desire for boating hasn’t changed,” McGill said. “We’re confident the sport cruiser segment is not dead.”
Getting through the election and the aftermath of Hurricane Sandy are key obstacles to the recovery. At this point, the company said it’s too early to say how much Sandy will affect operations for MarineMax, although the company did suffer some damage at its New Jersey and New York locations. The timing of the storm, though, should give MarineMax plenty of time to get ready for the prime boating season, McGill said.
The election is easier to quantify, though. From talking to MarineMax clients at the Fort Lauderdale Boat Show and elsewhere, McGill said it’s pretty clear a win by Mitt Romney would be a positive for boat dealers. In fact, some buyers at Fort Lauderdale wanted to add clauses to their purchase agreement making price contingent on a Romney win, McGill said.
“If we can make a change, I think it will be a catapult for our industry that we haven’t seen in years,” he said.