Dealer LAB: Destination Powersports boosts Q1 earnings

Publish Date: 
May 23, 2013
By Joe Delmont

MODERATELY COOL weather in Florida can hurt motorcycle and boat sales dramatically because riders know that there are plenty of better days right around the corner.

Why ride in rain when you can wait a few hours for a sunny day? Poor weather hurts unit sales, but it also dampens sales in service and in parts and accessories. This weather equation applies even more to boating, where cool water and wind really turns off boaters and swimmers.

Just ask Destination Powersports’ owner Bill Shenk how weather in March affected sales at the dealership in Punta Gorda, Fla. The store is right on the state’s Gulf Coast, midway between Tampa-St. Petersburg and Fort Myers.

“We had one week in March where the total store Gross Profit generated was one-third of normal and the next one was looking worse,” Shenk says. “And then the wind calmed and the temperature rose on a Thursday. That Friday and Saturday, the team created more Gross Profit than in the previous week-and-a-half combined. Weather matters.”

Despite the downturn in riding and boating weather midway through March, the dealership still posted gains over March 2012 — and over the first quarter of last year. (Click on the chart for a larger view.)

The dealership earned $32,209 on revenue of $616,201 in March, up 9 percent over the $29,540 it earned last March on revenues of $615,254.

For the three-month period ended March 31, 2013, the dealership earned $111,144 on revenues of $1,723,146. That’s a gain of $44,367, or 66.4 percent over the $66,777 the dealership earned during the same period last year when it generated total revenues of $1,402,452. Revenues were up 22.8 percent over the first quarter of 2012.

Gross Profit for the month was slightly ahead of last March: $140,629, up from $136,875, but continues well ahead of last year for the quarter. Gross Profit for first quarter 2013 is $433,154, up 25.9 percent from $343,999 last year. (Continued)