MarineMax Reports Quarterly Revenue of $757 Million
Earlier today MarineMax (NYSE: HZO), the world’s largest publicly traded boat and yacht builder, reported quarterly results for the company’s fiscal 2024 third quarter which ended on June 30.
The Clearwater, Florida-based company reported third quarter revenue of $757.7 million, net income of $31.6 million and adjusted EBITDA of $70.8 million.
Navigating A Challenging Operating Environment
MarineMax CEO and President Brett McGill described the current operating environment, which only saw a 5% increase in revenue over the same period in 2023 and a 4% increase in same-store sales, as “challenging.”
“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.” – Brett McGill
MarineMax reported gross profit margin of 32.0% which is down slightly from what the company reported in Q1 (33.3%) and Q2 (33.8%) due to a higher level of “promotional activity to drive boat sales.”
SYD: Superyacht Service Expansion
In today’s release, MarineMax touted the company’s continued expansion into superyacht services under the company’s recently formed SuperYacht Division or SYD.
“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.” – Brett McGill
The CEO said MarineMax will continue to expand its offering of superyacht services now that long-time customers of their Azimut, Galeon, and Ocean Alexander brands are migrating into increasingly larger and more complex yachts.
As a general rule, Rightboat says superyacht owners can expect to spend 10-20% of the original purchase price annually in maintenance and upkeep of the vessel. In other words a $20 million yacht would cost $ 2 to 4 million per year to maintain.
MarineMax’s full fiscal third quarter earnings release can be found here.
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