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After acquisitions, Clearwater’s MarineMax surpasses $2 billion in annual sales

After reaching a deal to buy Largo’s Intrepid Powerboats, the company has once again posted record revenues.
Clearwater's MarineMax once again posted record annual revenues on Tuesday. Shown here is the boating company's retail shop in Pompano.
Clearwater's MarineMax once again posted record annual revenues on Tuesday. Shown here is the boating company's retail shop in Pompano. [ MarineMax ]
Published Oct. 26
Updated Oct. 26

Some 20 months into the pandemic, and despite a global supply chain crisis, people are still buying boats like nobody’s business.

Clearwater boat retail giant MarineMax on Tuesday announced it had surpassed $2 billion in sales during its most recent fiscal year, which ended Sept. 30. That’s up 37 percent from the $1.5 billion posted this time last year, and 66 percent from the year before that. Net income more than doubled, going from $74.6 million last year to $155 million this year.

“Given the extremely lean inventory and well-documented supply chain issues, this is a great achievement in 2021,” CEO and president Brett McGill said.

During a call with investors, McGill highlighted additional numbers pertinent to investors, including record gross margins and nearly doubled earnings per share. He credited a lot of the growth to the company’s recent acquisitions, including purchases this year of Wisconsin’s Cruisers Yachts and Minnesota’s Nisswa Marine. Earlier this month, the company announced it had reached a deal to purchase Largo’s Intrepid Powerboats, which last year had $60 million in sales.

Related: Clearwater's MarineMax posts soaring revenues following acquisitions

Folding in well-known brands has increased demand for products under the widening MarineMax umbrella — but so has relative product scarcity within the boating marketplace. Much of that, McGill attributed to problems with the global supply chain, with manufacturers across different industries unable to produce enough inventory, and shippers unable to deliver it fast enough, to satisfy consumers.

For example: Despite all the record-setting numbers released Tuesday, same-store sales, a common benchmark for retail performance, were down 7 percent in July, August and September, which translated to about $50 million in lost revenue.

“Simply put, if we had the boats, they would be delivered, and we’d have even higher earnings,” McGill said. “The seasonal highlight for us is summertime, and that also is hopefully when the supply chain will be working more of the bugs out.”

Despite the slower sales this past quarter, McGill said the outlook is better looking forward, and the company is “better positioned than most in our industry” to weather the supply-chain storm.

October same-store sales are already up a bit, partly because some back-ordered inventory was finally starting to arrive. MarineMax has accrued about $100 million in deposits, and the company hasn’t seen a marked uptick in the used-boat market — a sign newer customers might be tiring of the boating lifestyle.

“We still see new people entering the industry, or entering MarineMax as a new customer to us,” McGill said, “but nothing that shows they’re getting out, or nothing that shows that percentage of new people is declining.”

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After opening slightly higher than Monday’s close, MarineMax stock stabilized to around $48.61 per share by mid-Tuesday afternoon.