Make us your home page
Instagram

Clearwater boat retailer MarineMax loses $20 million in first quarter

CLEARWATER — MarineMax sales took an even deeper nosedive in the first quarter, but there's more to the boat-buying slump than consumers afraid to make a big-ticket buy.

Bill McGill, chief executive officer of the nation's largest boat retailer, said the banks are nixing deals left and right.

"Normally, about 15 to 20 percent of our contracts fall apart because the buyer can't get financing," he said in a call with analysts. "Now it's approaching half. It's gotten harder to keep our staff spirits up."

Banks are getting pickier about lending to people with adjustable-rate mortgages with balloon payments lurking. They want boat down payments up to 40 percent. Meanwhile, used boat prices are falling because of a flurry of bank repossessions.

Well into a two-year tailspin, MarineMax gets a double hit. Commissions for landing successful financing and insurance deals earns MarineMax a fatter profit margin than boats.

For the quarter ended March 31, the company — debt-free except for its $105 million inventory — reported losing $20 million, or $1.09 cents a share, down from a loss of $3.5 million, or 19 cents a share, a year ago.

Revenue dropped to $130 million, just more than half the $233 million of a year ago. Sales in stores open more than a year crashed 41 percent, compared with a 28 percent sales drop in the same quarter a year ago.

After earnings were released Thursday, MarineMax stock dropped 30 percent, the biggest decline on the New York Stock Exchange. After hitting bottom at $3.54, the stock recovered to close at $3.95, down $1.66 percent. The market valued the company at $73 million.

Mark Albright can be reached at albright@sptimes.com or (727) 893-8252.

Clearwater boat retailer MarineMax loses $20 million in first quarter 05/07/09 [Last modified: Thursday, May 7, 2009 9:45pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Three-hour police standoff ends, thanks to a cigarette

    News

    TAMPA — A man threatening to harm himself was arrested by Tampa police on Tuesday after a three-hour standoff.

  2. Another Hollywood nursing home resident dies. It's the 9th in post-Irma tragedy.

    State Roundup

    The Broward County Medical Examiner's office is investigating another death of a resident of the Rehabilitation Center at Hollywood Hills — the ninth blamed on the failure of a cooling system that became a stifling deathtrap three days after Irma hit.

    Carlos Canal, pictured at 47 years old, came to Miami from Cuba in 1960. Above is his citizenship photo. [Courtesy of Lily Schwartz]
  3. Despite Hurricane Irma, Hillsborough remains on pace to unlock hotel tax that could pay for Rays ballpark

    Tourism

    TAMPA — Despite the threat of a catastrophic storm, it was business as usual at many Hillsborough County hotels in the days before Hurricane Irma bore down on the Tampa Bay region.

    The Grand Hyatt near TIA closed during Hurricane Irma, but many other Hillsborough hotels were open and saw an influx.
  4. New Graham-Cassidy health care plan stumbles under opposition from governors

    Nation

    WASHINGTON — The suddenly resurgent Republican effort to undo the Affordable Care Act was dealt a blow on Tuesday when a bipartisan group of governors came out against a proposal gaining steam in the Senate.

    Sen. Lindsey Graham, R-S.C., joined by, from left, Sen. Roy Blunt, R-Mo., Majority Whip John Cornyn, R-Texas, Sen. John Barrasso, R-Wyo., Sen. Bill Cassidy, R-La., Senate Majority Leader Mitch McConnell, R-Ky., and Sen. John Thune, R-S.D., speaks to reporters as he pushes a last-ditch effort to uproot former President Barack Obama's health care law, at the Capitol in Washington, Tuesday, Sept. 19, 2017. To win, 50 of the 52 GOP senators must back it -- a margin they failed to reach when the chamber rejected the effort in July. [/J. Scott Applewhite | Associated Press]
  5. Early estimates peg Hurricane Irma damage at as much as $65B

    Banking

    The damage totals from Hurricane Irma are still being tallied, but early numbers are in: As of Tuesday, the storm is estimated to have caused between $42.5 billion and $65 billion of damage. That's according to a Tuesday release by Irvine, Calif.-based analytics company CoreLogic.

    Hurricane Irma is estimated to have caused up to $65 billion in damage, said analytics company CoreLogic. Pictured is 
Hermilo Munoz Castillo as wades down a flooded street to check on his home in southern Collier County, Fla. after Hurricane Irma passed. | [LOREN ELLIOTT | Times]