Global recreational yacht retailer and yacht services provider MarineMax has reported record revenues for both its fiscal 2023 fourth quarter (Q4) and full-year financial results, driven primarily by sustained levels of consumer demand and growth in the company's premium segments.
For the fourth quarter ended 30 September 2023, the marine giant drew in revenues of $594.6 million, up 10.8 per cent from $536.8 million in the comparable period last year. The momentum carried MarineMax's annual revenue for fiscal 2023 to a record $2.39 billion, representing a 3.8 per cent increase over the previous year.
Gross profit was also up 3.5 per cent for the quarter, reaching $203.7 million compared to Q4 2022. However, the gross profit margin of 34.3 per cent fell by 240 basis points from 36.7 per cent in the prior-year period, attributed predominantly to lower new and used boat margins.
For the fiscal year, gross profit increased 3.7 per cent to $835.3 million (compared to the previous year) with the margin remaining flat at 34.9 per cent for the twelve months ended 30 September 2023. According to MarineMax CEO and president Brett McGill, the overall consistency of the company's gross profit margin reflects the resilience of its premium offerings, as well as the company's ability to structurally enhance its margin profile through "strategic acquisitions with higher earnings potential" – such as with IGY Marinas, which was purchased by MarineMax in the latter half of 2022.
However, the acquisition of IGY also contributed to a hike in the firm's expenses, both for the isolated Q4 and full-year results. Selling, general and administrative expenses totalled $169.4 million in Q4 2023 compared with $145.8 million for the same period last year, whereas interest expense grew from $1.0 million to $15.8 million in the same duration.
The difference was even more pronounced within the full-year results, where the interest expense grew from $3.3 million in 2022 to $53.4 million the following year, reflecting higher interest rates and the increase in long-term debt associated with acquiring IGY. Meanwhile, selling, general and administrative expenses rose from $540.6 million in 2022 to $634.5 million in 2023.
The record revenues were offset by the sharp increase in expenses, meaning that net income fell to $15.1 million in Q4 2023, down 60.7 per cent in Q4 2023 compared to the same period last year. This result corresponded with a 44.8 per cent decrease in net income for the full year, which fell to $109.3 million.
Elsewhere, Adjusted EBITDA showed a decline of 60.6 per cent for the quarter and 29.3 per cent for the year, culminating in respective total values of $42.6 million and $239.5 million.
“With the addition of businesses such as IGY, we have significantly enhanced the potential for expansion and synergies within our existing superyacht services and luxury yacht offerings,” McGill said of the results. "Supported by our strong balance sheet, we continue to actively expand our global market presence, exemplified by our most recent acquisition of Atalanta Golden Yachts in Greece, which closed in early October."
He continued: "As we look ahead to 2024, we are excited to build upon this foundation and deliver on our commitment to providing unparalleled boating and yachting experiences to a growing number of customers worldwide.”