MarineMax has reported a year-on-year top-line growth of 5% to $757.7 million in its financial results for the third quarter of its fiscal year. The marine conglomerate acknowledges that, while its real-term earnings continue to decline from its 2023 figures, the company is executing “strategic initiatives” to bolster its finances, with revenue growth in Q3 driven primarily by boat sales.

“Despite persistent retail headwinds in the third quarter, our team executed well, delivering 5% top-line growth,” says Brett McGill, company CEO and President. “Our solid third-quarter performance in this challenging operating environment underscores the importance of our value-creation strategy, which focuses on expanding our high-margin, less cyclical revenue streams.

“This strategic expansion, encompassing marinas, superyacht services, and other offerings, has strengthened our gross margin profile–  now consistently exceeding 30 per cent – and enhanced our cash flow generation and balance sheet resilience. These improvements come at a crucial time, as macroeconomic softness weighs on retail boat margins industry-wide. By strategically realigning our business, we’ve better positioned ourselves to weather market fluctuations and capitalise on emerging opportunities across our diverse portfolio.”

On a same-store basis, revenue increased by 4%, reflecting higher new and used boat revenue as well as revenue from marinas, parts, finance and insurance, and its Super Yachts Group and Charter business. Gross profit for Q3 stands at $242.1 million, with a margin of 32 per cent, slightly decreasing by 1.8 per cent from the same period in 2023.

However, selling, general and administrative expenses total $181.1 million, which accounts for almost a quarter (23.9 per cent) of revenue, reflecting little movement from the 23.4 per cent for the same comparable period in 2023. Interest expenses have also risen slightly to $18.2 million, marking 2.4 per cent of revenue, compared with 2.1 per cent last year, reflecting higher interest rates and increased inventory.

The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) was $70.4 million for the quarter, almost $13 million down from the same period last year. These, among other variables, mean that MarineMax made $31.6 million in real-term profit (net income) during the third quarter of this year, a decline from the $44.4 million it made in the same quarter last year. The profit per share was $1.37 this year compared to $1.98 in 2023.

Despite the year-on-year decline, these figures mark a return to substantial profitability during what has been a lean year for the conglomerate thus far. Net income in the first quarter was $0.9 million, and $1.6 million in the second, both down from its 2023 fiscal year. So, while the company is still profitable, its real-term earnings have continuously decreased in 2024 compared to previous years.

Looking ahead, McGill maintains that he expects to see increasing savings from initiatives that better align MarineMax’s expense structure. The company is currently implementing “cost-cutting actions” to better align with the current operating environment in a bid to make the company more efficient.

“The recent formation of our new SuperYacht Division (SYD) exemplifies our strategy to generate increasing operating and commercial synergies across our portfolio,” adds McGill. “The SYD integrates the operations of Fraser Yachts, Northrop & Johnson, Fairport Yacht Management, SuperYacht Management and Atalanta Golden Yachts (AGY), streamlining the back-office functions of these businesses into a unified entity.

“Our expansion into superyacht services began many years ago as our existing Azimut, Galeon, and Ocean Alexander customers, and others from our retail dealership operations migrated to increasingly larger yachts. The complexity of these vessels demanded specialised services, which our SYD companies are exceptionally well-positioned to provide.”

However, Island Capital's (ICG) Chair and Chief Executive, Andrew Farkas, has recently offered to purchase up to 100 per cent of MarineMax's ‘YMRS Business,’ which includes IGY, Fraser and Northrop & Johnson. Farkas claims these assets are undervalued and have not provided sufficient benefits to shareholders.

Farkas is offering a higher valuation compared to MarineMax's current market value, which could deliver significant value for shareholders.

MarineMax informed SuperyachtNews that it is currently reviewing the offer.

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Marine Max (Woods & Oviatt)

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