Massimo Group, a manufacturer and distributor of powersports vehicles and pontoon boats, has reported its financial and operational results for the third quarter ended Sept. 30, 2024.

For the three months ended Sept. 30, revenues decreased by $4.3 million, or 14.4%, to $25.6 million, compared to $29.9 million in the prior year period. The decrease in revenue was primarily due to a significant drop in Pontoon boat sales, and a slight decrease in sales of UTV, ATV and e-bikes.

Revenue from sales of UTVs, ATVs and e-bikes decreased by $1.9 million, or 6.9%, from $27.0 million in the third quarter of fiscal 2023, to $25.1 million in the third quarter of fiscal 2024. The decrease in revenue was partially driven by the slow industry-wide trend, and partially by the seasonal promotions we offered in the third quarter of fiscal 2024.

Revenue from sales of Pontoon Boats decreased by $2.4 million, or 82.5%, from $3.0 million in the third quarter of fiscal 2023, to $0.5 million in the third quarter of fiscal 2024. The decrease in revenue was primarily attributable to the significant industry-wide downturn due to the impact of the high interest rates and inflation as demonstrated in the high rejection rates dealers have encountered from floorplan financing providers such as Northpoint. This trend aligns with the industry-wide challenges that intensified in the third quarter of fiscal 2024. Additionally, economic uncertainty in the U.S. has led to reduced spending on luxury boats, further constraining our Pontoon Boat sales.

Gross profit decreased by $3.1 million, or 30.9%, from $10.1 million in the third quarter of fiscal 2023, to $7.0 million in the third quarter of fiscal 2024. The gross profit margin was 27.2% in the third quarter of fiscal 2024, compared with 33.6% in the same period last year. The decrease of 6.5% in the gross profit margin is consistent with reduced sale prices aimed at clearing slow-moving inventory, and the decline in sales of Pontoon Boats, without a corresponding reduction in fixed overhead costs, such as rent and salaries.