Its been a topsy turvy world at MarineMax (merger of several large SeaRay dealers) the last few days. They were to be listed on the New York Stock Exchange Wednesday June 3rd, have a big "kickoff" party/press conference and begin their initial public offering of stock. Late Tuesday June 2 the NYSE listing was called off, Wednesday the offering went forward, and late Wednesday they announced the listing was back on.
Boat Dealers Follow Auto Industry's Superstore Strategy
08:15 p.m Jun 02, 1998 EasternNEW YORK, June 2 /PRNewswire/ -- MarineMax, Inc., announced late today that its planned listing on the New York Stock Exchange, scheduled for June 3, was postponed.
SOURCE MarineMax, Inc. Copyright 1998, PR Newswire
MarineMax IPO Hurt By Weak Mkt, Lack Of Track Record
Dow Jones Newswires 3 June 1998 by Dunstan PrialNEW YORK -- Shares of MarineMax Inc. (HZO), a Clearwater, Fla., retailer of recreational boats, got caught Wednesday in the undertow of a weak initial public offering market.
MarineMax was the third offering this week to be priced below or at the low end of its anticipated price range. On Tuesday, Ultimate Software Group Inc. (ULTI) priced below its expected range and Balance Bar Co. (BBAR) came in near the low end.
MarineMax priced 4.8 million shares at $12.50 apiece, a full $1.50 a share below the low end of the anticipated spread of $14 to $16.
Of the stock offered, the company sold 3.5 million shares and existing shareholders, 1.3 million. Salomon Smith Barney served as lead underwriter.
The shares opened at 12 1/2, even with the offering price, and have traded hands as high as 13. The stock closed up 1/16 at 12 9/16 in light New York Stock Exchange volume of 844,000 shares.
Analysts said the stock faltered in large part because of the weak environment of the current IPO market, but also because of a lack of operating history.
MarineMax was created in January to merge the operations of several recreational boat dealerships. Five acquisitions occurred in March, and a sixth dealership was acquired in April, according to the company's prospectus filed with the Securities and Exchange Commission.
The company reported a pro forma loss of $12.4 million for the six months ended March 31, compared with a pro forma loss of $868,000 for the year-earlier period,
For the same six-month period ended March 31, pro forma losses from operations widened to $16 million from $828,000 a year earlier.
MarineMax raised $60 million through the IPO to pay down debt and for other corporate purposes, including upgrading management's information system.
The company had 13.2 million shares outstanding after the sale.
Copyright © 1998 Dow Jones & Company, Inc.
MarineMax 4.78M Initial Shares Priced At $12.50 Each
Dow Jones Newswires 3 June 1998NEW YORK -- An initial offering of 4.78 million common shares of Marinemax Inc. (HZO) was priced at $12.50 each through underwriters led by Salomon Smith Barney.
The company had expected the shares to be offered at $14 to $16 each.
Gross spread is 87.5 cents, selling concession is 52 cents and reallowance is 10 cents. Delivery is scheduled for June 8.
Proceeds from the offering are expected to be used for working capital and to pay off debt.
Marinemax, Clearwater, Fla., is a dealer of recreational boats.
Copyright © 1998 Dow Jones & Company, Inc.
Business Wire 06:00 p.m Jun 03, 1998 Eastern
CLEARWATER, Fla.--(BUSINESS WIRE)-- June 3, 1998-- MarineMax, Inc., the largest U.S. retailer of recreational boats, today announced the initial public offering of its common stock and the listing of its common stock on the New York Stock Exchange under the symbol HZO.
"This is an exciting moment for MarineMax," said William H. McGill, Jr., chairman, president and chief executive officer of MarineMax, Inc. "We are pleased to have become a public company and to be listed on the world's most prestigious stock exchange."
The initial public offering consists of 4,780,569 shares (including 1,264,745 shares sold by selling stockholders) at a price of $12.50 per share. Salomon Smith Barney and William Blair & Company were the managing underwriters for the issuance. The 3,515,824 shares sold by the Company include 1,861,200 shares sold directly by the Company to Brunswick Corporation. The underwriters have a 30-day option to purchase 437,905 additional shares from stockholders of the company.
MarineMax, with pro forma revenues of $234 million in 1997, was created through the mergers of six of the top 25 Sea Ray boat dealers in the U.S. The mergers are designed to capitalize on the experience and success of each dealer and to create a new standard of customer service in the highly fragmented retail boating industry.
MarineMax is the nation's largest retailer of Sea Ray, Boston Whaler, Baja and other boats manufactured by Brunswick Corporation. Brunswick is the world's largest manufacturer of recreational boats and a leading manufacturer of products in the active recreation marketplace.
MarineMax, headquartered in Clearwater, Florida, operates a total of 28 retail locations in Florida, Texas, California, Georgia and Arizona, selling pleasure boats (sport boats, sport cruisers, sport yachts and yachts), fishing boats, bass boats, pontoon boats and high-performance boats, with a focus on premium brands. MarineMax also sells related marine products, including engines, trailers, parts and accessories. The Company's services include arrangements for financing, insurance, maintenance and boat brokerage.
MarineMax's current dealers are:
--Bassett Boat Company of Florida, in Pompano Beach, Florida.
--Gulfwind USA, in Clearwater, Florida.
--Gulfwind South, in Ft. Myers, Florida.
--Harrison's Marine Centers, in Redding, California, and Phoenix, Arizona.
--Louis DelHomme Marine, in Houston, Texas
--Stovall Marine, in Forest Park, Georgia.
A copy of the final prospectus may be obtained from the offices of Salomon Smith Barney, 333 West 34th Street, New York, NY, 10001, or William Blair & Company, 222 West Adams, Chicago, IL, 60606.
Copyright 1998, Business Wire
Contact:
MarineMax, Inc., Clearwater
Mike McLamb or Leslie Bahr, 813/531-1700
SEC Filing
For extensive information on MarineMax and the proposed public stock offering, we have a copy of the June 1, 1998 SEC S-1-A document. This document includes many interesting comments about the boating industry in general and some
specific info about this situation, including:
Boat&Motor Dealer May 1998 page 29 Article is summarizedMarineMax represents a merger of 5 very large Sear Ray dealers They plan to offer stock on the New York Stock Exchange with an initial offering price of $77,625,000. These dealers had combined sales of $175 million in 1996 and $10 million in sales per location in 1997.
The primary dealers involved are:
The fifth party is Gulfwind South of Florida.
MarineMax, Inc.
to List on NYSE Wednesday
June 3, 1998
PR Newswire 1 June 1998 05:02 p.m Eastern
NEW YORK, June 1 /PRNewswire/ -- MarineMax, Inc., the largest U.S. retailer of recreational boats, is scheduled to list on the New York Stock Exchange on Wednesday, June 3, 1998. Symbol=HZO.
The company, headquartered in Clearwater, Florida, operates 28 retail locations in Florida, Texas, California, Georgia and Arizona, selling pleasure boats (sport boats, sport cruisers, sport yachts and yachts), fishing boats, bass boats, pontoon boats and high-performance boats, with a focus on premium brands. MarineMax also sells related marine products, including engines, trailers, parts and accessories. The company's services include arrangements for financing, insurance, maintenance and boat brokerage.
MarineMax is the nation's largest retailer of Sea Ray, Boston Whaler, Baja and other boats manufactured by Brunswick Corporation, the world's largest manufacturer of recreational boats and a leading manufacturer of products in the active recreation marketplace. Brunswick boats accounted for 84 percent of MarineMax's 1997 new boat sales.
Press Conference
A Press Conference regarding MarineMax's listing will be held at the NYSE at 10:15 a.m. on Wednesday, June 3. Press will be welcomed at the NYSE entrance at 18 Broad Street, and are encouraged to arrive between 9:45 a.m. and 10:00 a.m. for the press conference. The following MarineMax executives will be available for interviews:
-- William H. McGill, Jr., Chairman, President and CEO
-- Michael H. McLamb, Vice President, CFO, Secretary and Treasurer
Also in attendance at the press conference will be:
-- Peter N. Larson, Chairman and Chief Executive Officer of Brunswick Corporation
-- William J. Barrington, President of Sea Ray Group, Brunswick Corporation.
Exhibit of Boats
To mark the listing of MarineMax on the NYSE, an all-day public exhibit of six Sea Ray, Boston Whaler and Baja boats will be held on Broad Street on June 3, outside the Exchange. The exhibit of boats will open at 8:00 a.m., and continue until late afternoon. SOURCE MarineMax, Inc.
Copyright 1998, PR Newswire
Boat Dealers Follow Auto Industry's Superstore Strategy
The Miami Herald 06/01/98First, car dealers went public. Now, boat dealers are gathering to tap into the Wall Street's deep pockets and expand nationwide. The second is MarineMax, a combination of six companies with 28 stores in Florida, Texas, California, Georgia and Arizona selling boats and accessories. It will be the largest recreational boat dealer in the United States and the largest retailer of Sea Ray, Boston Whaler and other boats made by Brunswick Corp.
With concepts like no haggling and discount pricing, its name and approach brings to mind CarMax, the used car superstore chain. MarineMax also offers financing, insurance and boat safety, maintenance and use seminars. To keep customers enthused, MarineMax offers Getaways! group boating trips and other organized events.
Founded in January, MarineMax (HZO) hopes to raise $77 million with 4.8million shares priced between $14 and $16, according to documents filed with the Securities and Exchange Commission. It may start trading this week. The Clearwater-based company includes South Florida's Bassett Boat Co., Louis Del Homme Marine in Texas, Gulfwind USA/Gulfwind South in Tampa and Clearwater, Harrison's of California and Arizona, and Stovall Marine of Georgia.
MarineMax had combined net income of $13.6 million on revenues of $233.8 million last year. MarineMax is considerably larger than the industry's only publicly held dealership, Travis Boats & Motors, of Austin, Texas, which is buying independent dealers and building new stores. With 21 superstores from West Texas to Florida, Travis netted $4 million on 1997 revenues of $91.3 million selling boats, motors and marine accessories. Outlets include Adventure Marine Travis Boating Centers in KeyLargo and Fort Walton Beach. Travis (TRVS) went public in June 1996 at $9 and closed Friday at $26.75.
MarineMax wants to acquire other established, high-end recreational boat dealers and save money with centralized accounting and other support systems. It may add product lines by acquiring others' distribution rights.Approximately 84 percent of the company's revenue came from the sale of Brunswick's products. As part of the deal, MarineMax will pay Brunswick $15 million to settle a dispute over changing the ownership agreements to form the new company, the filings say. Another $8.8 million will retire debt.
The recreational boating industry generated about $19.3 billion in 1997sales of everything from boats to fuel and insurance. But, the MarineMax filing says, it is cyclical and overall revenue growth has been stagnant the last decade. The culprits: "increased competition from other recreational activities,perceived hassles of boat ownership, and relatively poor customer service throughout the retail boat industry."
MarineMax declined to comment because of the pending IPO. Bassett's family started the business 54 years ago in Springfield, Mass., and expanded to Florida with its first store on the 79th Street Causeway in 1979. One of Sea Ray's largest dealers, Bassett also has stores in Pompano Beach, North Palm Beach and Stuart. Bassett is a director and senior vice president of MarineMax; William McGill of Gulfwind is chairman.
The new company starts out with boats with an average sticker price of $39,000, more than double the $15,000 average at Travis, said Michael Smith,an analyst who follows Travis for Fahnestock & Co. MarineMax will have products that compete with some of what Travis sells. At first glance, Smith said, the combination looks a bit like "an exit strategy for some boat dealers."
Copyright (C) 1998 KRTBN Knight Ridder Tribune Business News
RBBI Comments
The $15 million charge from Brunswick for merging plus Brunswick's agreement to purchase 1.8 million
plus shares will make the actual cash exchange minimal. Could this become another "bowling center?"
Years ago Brunswick took over a number of bowling centers when they could not meet payments on their
automatic pin setters. Charging the dealers $15 million to merge certainly sounds like Brunswick is not
promoting the venture, then they turn around and purchase about that much stock. Sounds a little
confusing unless they thought they could never get the $15 mill in cash so they took it as stock?
This situation (merging mega dealers) could set a precedent for the industry and Brunswick may not like what it sees. Brunswick has been under anti-trust investigation and now they are going into the boat dealership business? Many boat builders already feel Brunswick gives special considerations to Brunswick boat building companies, now you are about to add dealers to the equation as well?
It was interesting that Peter Larson, Brunswick CEO was to attend the press conference.
This could become a trend. AutoNation and CarMax have been buying up auto dealerships. Some understanding might be gained from investigating parallel events in the auto industry. Business Week covered the issue with its 1/27/97 article, "Suddenly Detroit Stops Fighting Dealerships of the Future". The Miami Herald has a June1 article about the similarities of the superdealers.
The June 8, 1998 issue of Business Week has an article titled, "Ford Borrows a Better Idea" on page 42. It speaks of Ford imitating AutoNation with new superstores offering all of Ford's vehicles under one roof. May 19th Ford persuaded dealers in Salt Lake City to cash in a dozen dealerships and plunge into the superstore business. Ford's new superdealers, called the Ford Retail Network will soon also be established in Tulsa and SanDiego. Ford is suggesting that Ford Retail Network may have an IPO. The article says Wall Street is cool to the idea of dealer IPO's after seeing how hard it is to cut dealer costs.
One of our readers suggested that with this significant investment in the dealer end of the business, Brunswick execs may now develop an increased understanding of the business from the dealer perspective.
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