MarineMax, Inc. (HZO) has reported 82.99 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $5.59 million, or $0.22 a share in the quarter, compared with $32.84 million, or $1.32 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.53 million, or $0.18 a share compared with $3.31 million or $0.13 a share, a year ago.
Revenue during the quarter grew 20.13 percent to $227.36 million from $189.25 million in the previous year period. Gross margin for the quarter contracted 56 basis points over the previous year period to 24.84 percent. Total expenses were 96.73 percent of quarterly revenues, up from 96.65 percent for the same period last year. That has resulted in a contraction of 7 basis points in operating margin to 3.27 percent.
Operating income for the quarter was $7.44 million, compared with $6.34 million in the previous year period.
William H. McGill, Jr., chairman, president, and chief executive officer, stated, "Fiscal 2016 was marked by consistent strong sales and sustained positive trends in the marine industry. Overall, our team produced impressive comparable earnings per share growth of more than 85%, driven by our second consecutive year of 22% same-store sales growth plus the positive benefits derived from the strategic Russo Marine acquisition which was completed during the year. While we produced excellent results for the year, our fourth quarter experienced gross margin pressure as we more aggressively positioned our inventory for the winter season and the expected continued rollout of new models from our manufacturing partners. This coupled with the timing of several boat shows, which moved from October to September, shifting costs into the quarter, impacted our final results."
For financial year 2017, the company projects diluted earnings per share to be in the range of $1.04 to $1.14.
Working capital decreases marginally
MarineMax, Inc. has witnessed a decline in the working capital over the last year. It stood at $159.23 million as at Sep. 30, 2016, down 1.51 percent or $2.44 million from $161.67 million on Sep. 30, 2015. Current ratio was at 1.69 as on Sep. 30, 2016, down from 1.88 on Sep. 30, 2015.
Cash conversion cycle (CCC) was almost stable at 89 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 5 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 87 days for the quarter compared with 89 days for the previous year period. At the same time, days payable outstanding went down to 3 days for the quarter from 4 for the same period last year.
Debt moves up
MarineMax, Inc. has witnessed an increase in total debt over the last one year. It stood at $166.55 million as on Sep. 30, 2016, up 21.40 percent or $29.36 million from $137.19 million on Sep. 30, 2015. Marinemax has witnessed an increase in short-term debt over the last one year. It stood at $166.55 million as on Sep. 30, 2016, up 21.40 percent or $29.36 million from $137.19 million on Sep. 30, 2015. Total debt was 30.47 percent of total assets as on Sep. 30, 2016, compared with 29.34 percent on Sep. 30, 2015. Debt to equity ratio was at 0.53 as on Sep. 30, 2016, up from 0.48 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 6.31 for the quarter from 6.93 for the same period last year.
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