Boating Industry

March 2016

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LAUNCH March 2016 | Boating Industry | 9 December 31, from $158.1 million for the comparable quarter last year. Same-store sales increased 8 percent, building upon the 45 percent same-store sales growth in the same period last year. "The growing interest in new boats from our manufacturing partners and our focus on enhancing the boating experience is reso- nating with our customers, as evidenced by our strong results to start fiscal 2016, which exceeded the extraordinary growth we pro- duced in the same quarter last year," said chairman, president and CEO Bill McGill. Last year's fiscal first quarter (the final quarter of 2014 calendar year) was the first December quarter to be profitable for MarineMax in several years, said McGill dur- ing an earnings call discussing the results. "We challenged our team ... and they de- livered," he said. "Many categories showed increases for the month of December. We believe our growth outpaced that of the in- dustry, resulting in market share gains." MarineMax increased new unit sales by about 20 percent, besting the industry average. New products from Sea Ray, Boston Whaler, Azimut and others are helping to drive growth. For the second consecutive year, the company produced a profitable first quarter with net income of $889,000 or $0.04 per di- luted share for the quarter ended December 31, 2015, compared to $214,000, or $0.01 per diluted share, for the comparable quar- ter last year. "The excitement we generated in the De- cember quarter, has continued into the boat shows that we have participated in since the start of January, which is the beginning of the winter boat show season," McGill said. McGill also discussed the recent acquisi- tion of the Bahia Mar Marina in Pensacola. The marina's large number of wet and dry slips will help improve cash flow, and its on water location will make for a good future home for the company's currently landlocked Pensacola location, he said. MarineMax has had a Pensacola location for 13 years but will be moving its operations to Bahia Mar Marina. MarineMax also continues to explore other acquisitions. "We are in discussion with several larger dealers," McGill said. "The chances of some- thing happening sooner are greater than it was six months ago or a year ago." MALIBU SALES UP 9.1 PERCENT FOR QUARTER Malibu Boats, Inc. announced higher sales and profits for its second quarter of fiscal 2016 ended December 31, 2015. "Malibu completed another successful quarter, meeting or exceeding our internal financial and operating targets for the eighth straight quarter since our IPO," said CEO Jack Springer. Highlights for the second quarter of Fiscal 2016: Net sales increased 9.1 percent to $60.5 million compared to the second quarter of fiscal 2015. Unit volume increased 2.4 percent to 867 boats, including 81 units from Aus- tralia, compared to the second quarter of fiscal 2015. Net sales per unit increased 6.5 percent to $69,787 and net sales per unit in the U.S. increased 7.5 percent to $72,526 compared to the second quarter of fiscal 2015. Gross profit increased 12.1 percent to $15.9 million and gross margin increased 73 basis points to 26.2 percent compared to the second quarter of fiscal 2015. Adjusted EBITDA increased 7.0 per- cent to $11.2 million from the same period in fiscal 2015. Adjusted fully distributed net income at $5.8 million was in line with the second quar- ter of fiscal 2015 and adjusted fully distributed net income per share increased 15.4 percent to $0.30 over the same period. MASTERCRAFT REPORTS 12 PERCENT SALES INCREASE FOR QUARTER MasterCraft grew sales, income and mar- gin for its fiscal 2016 second quarter, ended December 27, 2015. "We continue to deliver outstanding top- and bottom-line increases and unit volume growth," said MasterCraft president and CEO Terry McNew. "These gains are driven by continued demand for performance sport boats across all models, in particular over- whelming demand for our X23, growth in our MasterCraft NXT line of entry-level models and our newly released X26." MasterCraft-only net sales for the three months ended December 27, 2015, which exclude the terminated Hydra-Sports manu- facturing contract, increased $6.0 million, or 12.2 percent, versus the prior year. The net sales gain was primarily due to a rise in Mas- terCraft unit volume of 48 units, or 7.4 per- cent. Net sales per MasterCraft unit grew by 3.9 percent, chiefly stemming from greater adoption of higher-end option packages, new product launches and price increases, the company said. Net sales for the three months ended December 27, 2015, were $55.2 million, up $2.4 million, or 4.5 percent, compared to $52.8 million for the three months ended De- cember 28, 2014. "Like most marine manufacturers, inter- national headwinds, particularly in Canada, are partially offsetting U.S. results. However, we expect to maintain our sales momentum as MasterCraft continues to drive sustainable, profitable market share gains," said McNew. Outboard-powered boats were the key to growth for Marine Products in 2015.

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