COURTESY MARINEMAXMarineMax yesterday posted the financial results for its 2024 fiscal second quarter.
Revenue was $582.9 million, a 2% increase from the prior-year quarter. The growth was driven largely by an increase in boat sales. Net income for the quarter was $1.6 million.
Gross profit margin was 32.7%, a decrease of 250 basis points year-over-year. The company cited a higher level of promotional activity and challenging retail conditions that resulted in lower boat margins. Adjusted EBITDA was $29.6 million.
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.
“Although we continue to operate in a challenging market environment, as evidenced by industrywide larger-than-expected declines in boat registrations, we drove an increase in sales in the second quarter,” president and CEO Brett McGill said in a statement. “Our gross margin also remains strong as a direct result of the strategic growth in our higher-margin businesses. Our performance was impacted by ongoing softness in the marine market, highlighting broader macroeconomic concerns including elevated interest rates and persistent inflation. While interest in boating remains encouraging, more aggressive promotional activity was required to assist consumers in making purchase decisions.”
Based on results to date, current business conditions, retail trends and other factors, the company is updating its fiscal year 2024 adjusted net income guidance to a range of $2.20 to $3.20 per diluted share. It also is revising adjusted EBITDA guidance to a range of $155 million to $190 million.
