MarineMax beats revenue estimates in 3Q
MarineMax beats Q3 revenue results.
MarineMax, the world’s largest recreational boat, yacht and superyacht services company, reported financial results for the third fiscal quarter of 2024, posting revenue of $757.7m, up 5% year-over-year from $721.8m in the same quarter of last year.
“Despite persistent retail headwinds in the third quarter, our team executed well, delivering 5% top-line growth,” said the company’s CEO and president Brett McGill.
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“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.”
The top-line growth was driven by higher boat sales. Revenue from existing stores grew by 4%, driven by increased sales of new and used boats, as well as other parts of the business including marinas, parts, financial services, luxury yachts and boat charters.
READ: Coote to help MarineMax superyacht brands flourish
Despite higher sales, the company’s gross profit margin declined by 180 basis points to 32% from 33.8% a year ago. In absolute terms, MarineMax’s gross profit for the quarter declined 1%YoY to $242.1m from $243.8m.
On the bottom line, net income during the quarter clocked in at $31.6m translating into earnings per diluted share of $1.37 from $44.4m and $1.98 respectively in the same period last year.
Sharing its FY24 outlook, the company reaffirmed its full-year EPS range of $2.2 to $3.2 per share and EBIDTA range of $155-190m.
Merger and acquisition offers
Two different firms have shown their interest in acquiring and merging MarineMax business as the company navigates turbulent macroeconomic conditions in a highly competitive industry. The first offer, which came from OneWater in June, was for $40 per share, aimed at consolidating the two businesses and achieving scale.
The other offer, from Island Capital Group (ICG) in July, wanted to carve out and buyback MarineMax’s yachting and marina business which it sold to the company in 2022. MarineMax acquired the yachting and marina business from ICG for $480m – an EV to EBIDTA multiple higher than industry average.
ICG has since called out MarineMax’s management for not taking the bid seriously and issued public letters to shareholders to convince them of the offer’s merits.
In response, MarineMax said it “will continue to make decisions and take actions that we believe are in the best interest of the company and our shareholders”.
MarineMax’s superyacht brands include brokerages Fraser Yachts and Northrop & Johnson, Fairport Global yacht management and IGY marinas.
