Strong new boat sales carry profits in 2012
A unit sales increase of 12.6 percent in 2011 for the average Spader Dealer lead the way for an increase of 7.9 percent in 2012, according to a report from Spader Business Management. Two combined years of positive sales led to total sales for the average dealer that were up 20 percent since 2010.
“With the complete 12 months of financials in, the good news is that the average dealer reported a Net Operating Profit of 4.3 percent of sales in 2012,” said Noel Lais of Spader Business Management in a note to Boating Industry. “This is a significant increase over last year’s average Net Profit of 2.6 percent and puts the Net Profit above the Spader Survival Net Profit of 3 to 3.5 percent of Sales.”
Sales of new boats were up 14.5 percent year-over-year, and the average margin earned on new boats was up 0.9 percent compared to 2012, with the greatest period of growth coming in the first and second quarters.
Year-over-year, the largest quarter of growth was the second quarter, which was pushed forward by an early spring and contributed to 75 percent of the year’s unit sales growth. After two solid quarters, sales struggled in the third quarter, dipping year-over-year, before good sales growth followed in the final quarter of the year.
Used sales fell slightly against 2011, dipping 2.4 percent for the year as inventory for used units rose 18.3 percent to 2010 levels. The average margin earned on used units was up 0.7 points in 2012 after jumping 2.3 points in 2011.
Expenses were up, but only in the areas of personnel and fixed expenses. The average Spader dealer spent about 2.7 percent more in 2012, with about 0.3 percentage points more going towards personnel and 1 percent more directed at fixed expenses.
The average dealer spent roughly the same amount in 2012 on floor plan and other expenses, but ended up spending 14 percent less on advertising.