Propulsion alternatives continue to make headlines - MarineBusinessWorld North America newsletter
by Peter Rendle 2 Aug 11:00 PDT
H2C Boat © Torqeedo
This summer, the world of competitive sailing is set to witness a historic moment as the Dutch sailing organization Watersportverbond introduces their first-ever emission-free, hydrogen-powered coach boat, the H2C Boat, at the 2023 World Sailing Championships in The Hague, Netherlands.
The H2C Boat, equipped with a Torqeedo Deep Blue electric motor, revolutionizes the sailing community and paves the way towards a more sustainable and environmentally friendly era. This boat, developed by the Dutch start-up H2 Marine Solutions, represents the collective efforts of a consortium of innovative companies, including longtime Torqeedo partner De Stille Boot and the Delft University of Technology (TU Delft).
Torqeedo played a vital role in supporting the project from inception, providing the powerful Deep Blue 50R outboard motor and Deep Blue 40 lithium-ion battery, as well as contributing to the crucial energy management system.
Meanwhile contentious legislation is challenged by an industry body. Last week, a bipartisan group of lawmakers from the Congressional Sportsmen's Caucus held a briefing on the National Oceanic and Atmospheric Administration's (NOAA) proposed expansion of its North Atlantic Right Whale Vessel Strike Reduction Rule. Under the proposed expansion, all boats 35 feet and greater cannot travel faster than 10 knots (11 mph) within a vast area extending from Massachusetts to central Florida, for up to 7 months out of the year and in some places up to 90 miles offshore.
Several legislators expressed concern with how NOAA's proposal could impact local economies, particularly in coastal communities. The U.S. recreational boating industry has an annual economic impact of $230 billion, supporting more than 36,000 businesses, most of which are small businesses, and over 812,000 American jobs. NOAA's proposed regulation would significantly impact the recreational boating and fishing community and threaten the small businesses and coastal economies it supports.
It's that time of the year that companies release their quarterly financial stats, providing indicators of the current industry health levels, and we post the results from two of the big players.
MarineMax, Inc. (NYSE: HZO), the world's largest recreational boat, yacht, and superyacht services company, announced results for its fiscal third quarter ended June 30, 2023. Fiscal 2023 Third Quarter Highlights. Record revenue of $721.8 million. Strong gross margin of 33.8%. Net income of $44.4 million, or diluted EPS of $1.98; Adjusted diluted EPS of $2.07. Adjusted EBITDA of $83.5 million. IGY Marinas contributes to Company growth. Completes acquisition of C&C Boat Works.
Marine Products Corporation (NYSE: MPX) announced its unaudited results for the quarter ended June 30, 2023. Marine Products is a leading manufacturer of fiberglass boats under the brand names of Chaparral and Robalo. Chaparral's sterndrive models include SSi and SSX, along with the Chaparral Surf Series. Chaparral's outboard offerings include OSX Luxury Sportboats and SSi outboard models. Robalo builds an array of outboard sport fishing boats, which include center consoles, dual consoles and Cayman Bay Boat models.
For the quarter ended June 30, 2023, Marine Products generated net sales of $116.2 million, a 21 percent increase compared to $95.8 million in the same quarter of the prior year. The increase in net sales was due to an 11 percent increase in the number of boats sold during the quarter and a 10 percent increase in the average selling price per boat, as well as an increase in parts and accessories sales. Unit sales increased during the quarter compared to the prior year as the company continued to clear inventory of partially completed units caused by supply chain disruptions. These deliveries also helped to satisfy our dealers' inventory needs during the retail selling season.
Average selling prices increased primarily due to a favorable model mix and price increases to cover increased costs including primarily materials and components. Unit sales increased within both Chaparral and Robalo brands.
Ranked 7th in the U.S. for recreational boating economic impact, Wisconsin has more than $8.4 billion in annual recreational boating economic impact and supports over 34,000 jobs. A detailed infographic for Wisconsin can be downloaded by National Marine Manufacturers Association members and industry stakeholders here.
People making news includes Larry Lake at IMTRA. IMTRA, the leading manufacturer and importer of quality solutions and products for the marine, energy and transportation markets, announced it has added to its management team with a promotion and a new hire. Long-time employee Larry Lake has been promoted to Vice President of Operations and has been appointed to the Senior Leadership team as part of his new position. In addition, Carissa Deschler has joined IMTRA as its first Human Resource Director.
TowBoatUS Oyster Bay, a 24/7 provider of on-water towing and assistance for recreational boaters with additional locations in Huntington, New York, and Norwalk, Connecticut, recently celebrated three decades in business. Now former owner Capt. Mitch Kramer has stepped aside with a new owner at the helm, Tom Vetere. Kramer isn't going too far, however. He's staying aboard along with other familiar faces including Capt. Jay Wigginton at TowBoatUS Norwalk, Capt. Steve Morlock at TowBoatUS Huntington, and deckhand Nick Casella. Newly joining the company are Port Captain John Testa who will oversee day-to-day operations, and Capt. Mike Callesano.
Leading global provider of safety and survival technologies, ACR Electronics is delighted to announce the return of Jeff Geraci as the General Manager and Vice President of ARTEX, the leading brand for aircraft Emergency Locator Transmitters (ELT). In this capacity, Jeff will spearhead ARTEX's strategic growth initiatives, reinforce its position in the market, and drive innovation within the company.
Jeff Geraci brings a wealth of experience and expertise to his new role, having previously served as an instrumental figure in the success of ACR Electronics during his earlier tenure with the company. With over two decades of experience in the safety and survival technology industry, Jeff has consistently demonstrated outstanding leadership, vision and a passion for delivering high-quality products that save lives.
MarineMax St. Petersburg announced Caleb Peavler as their new General Manager alongside Roger Watson's promotion to Service Manager. Caleb has spent the last eight months as the Operations Manager for MarineMax St. Petersburg after relocating to the area from Panama City. Prior to the move, he led the Panama City location as General Manager, where he was instrumental in leading a profitable sales hub for the panhandle. Caleb's strong work ethic and commitment to lead by the MarineMax mission statement is one of the many reasons he was selected for the role.
More industry news at www.marinebusinessworld.com/NorthAmerica
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In the meantime, stay safe.
Peter Rendle