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MarineMax
You might not think it possible for a recreational boat retailer to be making a profit. But MarineMax has done just that by reducing short-term borrowing and eliminating inventory.
Revenues for the second quarter of 2010 were $115.4 million, down 24% from last year's $151.5 million. But net income was positive, as MarineMax posted a $512,000 profit — a stark contrast to the $9.2 million lost in 2009.
To achieve those results, the Clearwater-based firm reduced its short-term debt by 77%, ending the quarter with $57.2 million borrowed. And a 47% decrease to inventory left the company with $181.4 million in product at the quarter's close, down from $339.8 million on June 30, 2009.
“We have demonstrated this quarter that we can achieve profitability from lower levels of revenue than we ever have in the past,” said William McGill, CEO at MarineMax.
McGill also said his company acquired a new financing facility, affording the firm even more financial flexibility.
Headquartered in Clearwater, MarineMax (symbol: HZO) is the nation's largest recreational boat and yacht retailer.
Nicholas Financial
For Nicholas Financial, higher revenues combined with reduced charge-offs to yield record-breaking profits. The company earned $3.4 million in net earnings in the three months ended June 30, up 65% from the $2.1 million earned last year.
Revenues were up only slightly at $15.0 million, a 9% year-over-year gain. That increase was one of three main contributors to the company's recent success, said CEO Peter Vosotas in a release.
“Our results were primarily impacted by an increase in revenues, a reduction in the net charge-off rate and an increase in the cost of borrowed funds,” Vosotas said.
Indeed, the company's net charge-off rate for the recently concluded quarter was 4.59%, compared to 7.72% a year ago. That drop mirrors the year-over-year decrease in Nicholas' provision for credit losses, from $3.3 million in 2009 to $1.6 million in 2010.
Based in Clearwater, Nicholas Financial (symbol: NICK) has $223.9 million in assets on its balance sheet.
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