CLEARWATER — Just when you thought it was safe to go back into the water, a boating business leader issued a small craft warning.
Clearwater's MarineMax, the national's largest recreational boating and yacht retailer, reported weak quarterly financial numbers Thursday morning, spurring a sharp sell-off of the company's shares. By the close of trading Thursday, MarineMax's stock had lost nearly a quarter of its market value, falling 24.6 percent to $14.90.
It was the biggest decline, by far, of any company trading Thursday on the New York Stock Exchange.
After wallowing for years during and after the last recession, the boating industry appeared to be rebounding sharply. MarineMax's latest quarter, however, gives pause.
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Speaking to analysts via conference call Thursday, MarineMax CEO Bill McGill Jr. attributed the drop-off in business, in part, to concerns of wealthier consumers over a lack of action in Washington.
"There is frustration of higher income individuals over the slow progress of change which has impacted their confidence in the economy for the near term," McGill said. That uncertainty contributed to economic softness which, while expected to be temporary, "pressured our results."
Revenue was $329.8 million for the quarter ended June 30, compared with $345.6 million for the comparable quarter last year. Same-store sales decreased 10 percent following a dramatic 44 percent uptick in the same period a year ago.
Net income for the quarter was $14.2 million compared to $13.8 million a year ago, a slight gain the company attributed to selling higher-margin boats.
"Reports of industry softness in larger product categories, combined with delayed sales due to unseasonal Northeast weather, dampened our overall revenue and therefore earnings in the quarter," McGill stated. He said the company's performance should rebound in the future "as the underlying trends in the industry are healthy. Our product portfolio, new innovative models and customer-centric approach continues to resonate well with consumers."
The company, however, did lower its annual forecast for earnings to a range of 97 cents to $1.02 — down from $1.14 to $1.24 expressed earlier. MarineMax operates 62 retail locations in Florida and 16 other states.