MarineMax reports Q2 increase in gross margin

MarineMax-Fort-Myers

MarineMax, the world’s largest recreational boat, yacht, and superyacht services company, has announced results for its fiscal second quarter ended 31 March 2023.

In a statement, the company reports a record second-quarter gross margin of 35.2 per cent, an increase of 150 basis points from 33.7 per cent in Q2 2022. The firm says this increase is primarily driven by the acquisition of IGY Marinas and growth in higher margin businesses.

Q2 revenue of $570.3 million is down seven per cent from a record revenue of $610.1 million in the same period last year (2022).

Overall net income for the quarter is $30 million, or diluted EPS of $1.35; adjusted diluted EPS of $1.23. This equates to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $57.4 million.

“After the exceptionally strong results we saw throughout fiscal 2022, our second quarter fiscal 2023 revenue reflected the boat industry’s return to more seasonal sales trends, coupled with the ongoing macroeconomic uncertainty, which grew more impactful as the quarter progressed,” says Brett McGill, MarineMax’s chief executive and president. “Against that backdrop, our team executed well, delivering a solid top line and record second-quarter gross margin. Our performance was highlighted by growth across most of our higher-margin businesses and the contribution of our strategic acquisitions, including IGY Marinas, which continues to exceed our expectations.”

He adds: “Although we are revising our fiscal 2023 guidance to reflect our year-to-date performance and appropriately address the economic uncertainty, we remain extremely confident in the underlying fundamentals of our business and our ability to outperform the market over the long term.”

Revenue in the fiscal 2023 second quarter was down seven per cent to $570.3 million from a record revenue of $610.1 million in the same period last year (2022). This result was primarily attributable to decreases in new and used boat revenue, resulting in 13 per cent lower same-store sales compared with same-store sales increases of seven per cent in the second quarter of fiscal 2022 and 45 per cent in the second quarter of fiscal 2021. The decrease in same-store sales was partly offset by contributions from IGY Marinas and boat manufacturing revenue, sources that are not included in the same-store sales comparison.

Gross profit totalled $200.9 million in the second quarter, down two per cent from $205.3 million in the prior-year period, due primarily to the decreases in revenue.

In January 2023, MarineMax reported Q1 increases in revenue and gross margin.

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This article was written and/or edited by the UK-based MIN team.

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