Testing positive

Conor Feasey
By Conor Feasey August 16, 2022 16:39

Testing positive

Reporting a positive result has a slightly different connotation in a post-pandemic world, but there is only good news coming from publicly listed companies.

Unlike private companies – which can bluff their way through tough markets – listed ones have to tell the truth. But the truth is that up until June at least, things really are very good.

In Italy, the Ferretti Group reported its superyacht orderbook has increased 26% to €370.5m ($378m) at the end of June 2022 from €293m (298m) at the end of 2021. Demand for its smaller yachts also rose with the company’s total backlog now at €1.2b ($1.224), up 30%.

The market is at an extraordinary point,” says Alberto Galassi, CEO, Ferretti Group. “Although our strong growth owes particularly to our hard work.”

Superyacht sales rose to €48.9m for the first six months compared to €39.1m the previous year. This means superyachts now make up 9.1% of Ferretti Group’s €534.9m total half-year sales. In 2021, superyachts accounted for 8.5% of the group.

The Italian Sea Group (TISG), the owner of Admiral, Picchiotti, Perini Navi, Tecnomar and NCA Refit, has also reported a 64% increase in sales for the first half of 2022, totalling €133m. It made €80.9m in sales during the first six months of 2021.

It made a €20m EBITDA compared to €10.3m in the first half of 2021, with an EBITDA margin of 15%.

Giovanni Costantino, founder, and CEO of TISG says: “The excellent results recorded in the first half of 2022 represent a confirmation of the solidity of our business development project in line with the 2022 guidance, despite a complex macroeconomic and geopolitical context.”

The group had a €922m order book at the end of June 2022. It is forecasting full-year sales of between €280m and €295m with an EBITDA Margin of 15.5%.

The Italian Sea Group’s debt rose because it bought Perini Navi. In December 2021 it had €41m in cash in June 2021, it now has €47m of debt. The business generated €6.5m in net working capital during the first six months of 2022.

US-listed yacht giant MarineMax bought Island Global Yachting (IGY Marinas) for $480m – with another $100m dependent on how the marinas perform over the next two years. To finance this transaction, it secured $1.35b in loans, $400m of which is to be used in the acquisition. IGY Marinas and its senior management team will stay on an agreed two-year earnout which could add $100m to the price.

IGY Marinas owns 23 marinas across the Americas, Caribbean, and Europe. It also offers a Trident superyacht membership programme guaranteeing dockage to members. Its marinas host high-profile events including the Cannes Yachting Festival (pictured above), Superyacht Miami, and Art Basel Miami Beach.

Michael McLamb, executive vice president, CFO, and secretary of MarineMax said: “This financing bolsters the strength of our balance sheet and will enable us to maintain a conservative leverage ratio when the IGY acquisition is closed.”

It also reported that sales increased 3% to a record $688.5m for the quarter ending June 30th, 2022, up from $666.3m last year.

Marine Max is also betting on demand for yachts remaining. It has increased its floor plan line by $250m to $750m. The owner of Fraser Yachts and Northrop and Johnson still thinks now is the time to buy. The great thing about these public companies is that we will eventually see if that is the right call.

Conor Feasey
By Conor Feasey August 16, 2022 16:39