State of the Industry 2012. Today’s agenda Powerboat Data — Peter Houseworth, Info-Link Sales Sweet Spot —Robert Grant, ADP Lightspeed Dealer Metrics.

State of the Industry 2012

Today’s agendaPowerboat Data — Peter Houseworth, Info-Link

Sales Sweet Spot —Robert Grant, ADP Lightspeed

Dealer Metrics —Noel Lais, Spader Business Management

Yacht Brokerage Sales — John Burnham, Dominion Marine Media

Q&A — Submit your questions throughout the webinar!

Powerboat Data

Peter Houseworth, Info-Link

www.info-link.com/BellwetherReport.php

Website

• info-link.com

E-mail• [email protected]• [email protected]

Telephone• (305)661-3030• (786)888-8238

Presented by : Robert GrantAugust 23, 2012

Sales Sweet Spot

Quantity vs. Quality

Where would you rather be?• Selling more for less• Selling a few less for more

Data Source: ADP Lightspeed DataBack Study

56% of all units sell between $5k - $15k

The Sweet Spot0-15K: Avg. Margin = 10.6%

15-100K: Avg. Margin = 19.02%

100-400K: Avg. Margin = 15%

Data Source: ADP Lightspeed DataBack Study

Customer Migration

Data Source: ADP Lightspeed DataBack Study

•How do we encourage migration from the lower end of the scale?

• Customer Relations• Encourage Trading Up• Finance Options• Education Events• Other

18

Thank You!

Robert Grant 800-521-0309 ext 7648801-634-9734 [email protected]

Presented by

Noel LaisSpader Business Management

Dealer Metrics August 2012

© 2011 Spader Business Management, Inc. All rights reserved.

20

Fulfilling. Success.

20

Annual Net Profit

21

Fulfilling. Success.

© 2011 Spader Business Management, Inc. All rights reserved.21

Annual Net Profit

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

0.5

1

1.5

2

2.5

3

3.5

4

4.5Annual Net Profit

% o

f S

ale

s

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20111,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000 New Boat Inventory

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20111,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000 New Boat Inventory

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20115

7

9

11

13

15

17

19

21New Unit Gross Margins

New

Uni

ts

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20112,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

6,500,000

7,000,000

7,500,000New Boat Sales

An

nu

al N

ew B

oat

Sal

es

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

1,400,000

Used Boat Sales

An

nu

al U

sed

Bo

at S

ales

2011 Actual Year-end May 2012 Forecast June 2012 Forecast July 2012 Forecast$8,800,000

$9,000,000

$9,200,000

$9,400,000

$9,600,000

$9,800,000

$10,000,000

$10,200,000

$10,400,000

$10,600,000

$10,800,0002012 Total Sales Forecast

2011 Actual Year-end May 2012 Forecast June 2012 Forecast July 2012 Forecast0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%2012 Net Profit Forecast

Spader Business Management800.772.3377www.spader.com

Thank You! Noel Lais [email protected]

U.S. Yacht Brokerage Sales, 2012

Strength in smaller boats, weakness in larger

MARKET DATA REVIEW

Boating Industry Market Data Book• 29,000+ boats (June – May ‘09-’10 to ‘11-’12)

• $3.2 billion value (aggregate price paid)

Stories of the year

2011: Superyacht sales drive values2012: Smaller boats carry the market

2007 - 2012

June & July Update

• 2011: 6,564 boats sold• 2012: 6,552 boats sold

• 2011: $749 million aggregate sales• 2012: $546 million aggregate sales• Net: - $203 million

Superyacht Market Impact

Superyacht sales value (June + July)• 2011: $197 million• 2012: $59 million• Net: - $138 million

All brokerage sales <80’ (June + July)• 2011 - $552 million• 2012 - $487 million• Net: - $65 million

Sales by Length (through July)

Size 2011 2012 % change

<26’ Boats Sold 5,928 6,587 +11%

Value, Boats Sold $119 million $135 million +14%

26’-35’ Boats Sold 7,385 7,368 0%

Value, Boats Sold $405 million $389 million -4%

36’-45’ Boats Sold 3,670 3,772 +3%

Value, Boats Sold $482 million $498 million +3%

46’-55’ Boats Sold 983 936 -5%

Value, Boats Sold $288 million $260 million -10%

56’-79’ Boats Sold 426 458 +8%

Value, Boats Sold $345 million $342 million -1%

>80’ Boats Sold 113 100 -12%

Value, Boats Sold $571 million $359 million -37%

Brokerage Sales year to date

2011 2012 % change

Boats Sold 18,505 19,221 +4%

Value, Boats Sold $2.2 billion $2.0 billion -10%

Ave. Days to Sale 281 266 -5%

[email protected]

Q&ASubmit your questions in the Q&A box now!

Thank you!