MarineMax has experienced an increase in sales in the second financial quarter of 2024.
In the latest figures released by the recreational boat, yacht and superyacht services company, revenue increased by 2% to $582.9 million from $570.3 million in the same period last year.
This was mainly due to an increase in boat sales.
Store revenue also increased by 2%.
In his report, Brett McGill, CEO and president of MarineMax, said it was a challenging market industry wide, with larger than expected declines in boat registrations and the organisation’s performance was impacted by ongoing softness in the marine market.
More aggressive promotional activity is required to help consumers in making purchase decisions.
However, the gross margin remains strong and interest in boating remains encouraging.
Gross profit decreased 5.2% to $190.4 million from $200.9 million in the previous-year period. There was a gross profit margin of 32.7% with lower boat margins.
Interest expense
Selling, general, and administrative expenses totalled $169 million, or 29% of revenue, in the second quarter, compared with $145.5 million, or 25.5% of revenue, for the comparable period last year.
Interest expense was $19.4 million, or 3.3% of revenue in the second quarter, compared with $13.3 million, or 2.3% of revenue in the prior-year period, reflecting higher interest rates and increased inventory compared with the second quarter of the financial year 2023.
Net income in the second quarter was $1.6 million, compared with net income of $30 million in the same period last year.
Adjusted EBITDA for the quarter ended March 31, 2024, was $29.6 million, compared with $57.4 million for 2023.
The CEO added: “We continue to focus on driving growth through investments in strong, higher-margin businesses that enhance the customer experience and expand our margin profile.”
One example was the purchase of Williams Tenders USA which has given MarineMax distribution exclusivity in the US and the Caribbean for a premier brand of rigid inflatable jet tenders for the luxury yacht market.
