Sea Ray sales remain "well below scrappage rate"

LaReaLaRea Member, Moderator Posts: 7,728 mod
in Rinker Express Cruisers Forum
Somebody 'splain this to me.  The entire story is absolute gibberish.  

Here's the best thing Sea Ray's investors, which expect to lose $35M to $40M on the sale, could say about the company:

“We believe that now is an excellent time to execute on this transaction, as continuing to delay it only slows the process of reducing the conglomerate discount, and increases the risk of operational missteps,” said Altman in the letter. “The marine trends are strong, and we believe will continue to be strong for the foreseeable future as boat sales remain well below scrappage rate.”

https://www.tradeonlytoday.com/manufacturers/brunswick-estimates-up-to-40-million-loss-in-sea-ray-sale 
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Comments

  • Black_DiamondBlack_Diamond Member Posts: 5,439 ✭✭✭✭✭
    Here’s the simple scoop:

    large stock holders want a break-up to maximize their investment.  F the long term business. Classic investment banker model. 

    The last statement refers to new boat sales lagging the scrap (junk) rate of older boats. This same thing happened with cars towards the end of the last big recession.  Average car age was nearing 14 years. At some point (at least with cars) the used fleet hits the end of life and new ones are required.  

    Past owner of a 2003 342FV
    PC BYC, Holland, MI
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  • rasburyrasbury Member Posts: 8,351 ✭✭✭✭✭
    Plus they get to write off the huge loss?
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  • rasburyrasbury Member Posts: 8,351 ✭✭✭✭✭
    So, they are expecting mew boat sales are yet to increase?
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  • Michael TMichael T Member Posts: 7,227 ✭✭✭✭✭
    Speaking of new boats has anyone sen the new -  pretty sure it's a Regal- where the starboard stern section of the hull flips down to make a huge walk around deck that is part of the swim platform? If I can find the link - might have been Boating Magazine - I'll post it. Now THAT's innovative! 
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  • zaverin1zaverin1 Member Posts: 1,672 ✭✭✭
    Man,
    what about the regal hardtop 35 with huge slide back sunroof. Amazing boat. Couple on lake st Clair had all black at the lil moot last summer
    freaking gorgeous!
    on the flip side 
    formula still sells lol
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  • LaReaLaRea Member, Moderator Posts: 7,728 mod
    OK @Black_Diamond - well played, but let's see you explain "the process of reducing the conglomerate discount."

    I've seen photos of a few boats with flip-down sides.  Might be interesting if you usually boat alone.  I'm usually rafted up with others, so it wouldn't mean much to me.  But I guess the point is that you don't see that sort of innovation in recent Sea Ray models.
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  • LaReaLaRea Member, Moderator Posts: 7,728 mod
    Actually, sunroof is another innovative concept that does nothing for me.  In this area, the last thing I want is sun shining into the cockpit.  I live in the wrong part of the world for that concept.
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  • bry1429bry1429 Member Posts: 371 ✭✭✭
    Sea ray does have the flip down to make a huge platform.  Rinker will have it on their model year 2020 450EX  :p
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  • mattiemattie Member Posts: 1,270 ✭✭✭✭
    SeaRay is building some beautiful day boats now. But they seem to still be hanging their hat on high end cruisers.

    That said, I think the consumer is changing. Seems like most people today want a really nice day boat or fancy pontoon. My impression is that the cruiser lifestyle is diminishing.

    Immediate gratification. Go out - use the boat, back home in the evening to their fancy new house with no yard for upkeep.

    People are more lazy than ever. Don't want to work too hard at anything - including their hobbies.

    Be interesting to see where boating goes from here.....
    246BR, 276BR, H310BR current
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  • Michael TMichael T Member Posts: 7,227 ✭✭✭✭✭
    Where I boat most new purchases seem to be pontoons and PWCs. Some of the new pontoons are amazing: heads, bars, shower modules and even  screened camper tops for sleeping arrangements - at a fraction of the cost and maintenance of a cruiser.....and forget grandpa's old slow tank, the new ones with lifting strakes and big or multiple engines rival many of the bow riders for acceleration AND top end!
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  • mattiemattie Member Posts: 1,270 ✭✭✭✭
    If you're a fair weather boater - those new pontoons are incredible. Appealing to me as well. 31' x 12' beam & 900hp

    http://www.boats.com/reviews/premier-docici-310-triple-the-fun/#.WoX5PORy7IU

    Most people today have about 15 min attention span. Let alone the patience and required effort to take care of a boat.

    Imagine convincing a millennial that they have to clean & buff an entire big ol' SeaRay. Ain't happenin!
    246BR, 276BR, H310BR current
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  • Handymans342Handymans342 Member Posts: 10,375 ✭✭✭✭✭
    250 G too!!
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  • LaReaLaRea Member, Moderator Posts: 7,728 mod
    Ida know, it's hard to figure out long-term trends in boating while the industry is still climbing back out of the long recession.  Apparently, investors think SR's market isn't so great any more, or maybe the company hosed up its "conglomerate discount" (whatever that means).  Meanwhile, it feels like Rinker's star is on the rise.  
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  • Liberty44140Liberty44140 Member Posts: 4,374 ✭✭✭✭✭
    Agree that Regal has done a great job with their new boats over the last few years.
    07' Cruisers 390 (Previous Rinker's: 06' 342EC & 01' 310FV)

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  • Handymans342Handymans342 Member Posts: 10,375 ✭✭✭✭✭
    Too much!!!
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  • [Deleted User][Deleted User] Dana Point, California, USAPosts: 0 ✭✭✭
    "We lose money on every sale...but make it up in volume."

    Andy
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  • raybo3raybo3 Administrator Posts: 5,496 admin
    andyd said:
    "We lose money on every sale...but make it up in volume."

    Andy
    Huh??????????????????? If you lost money on every sale wouldn't you be in a bigger hole with a higher volume????????????????? Just say'n
    2002 342 Fiesta Vee PC Point Of Pines YC Revere MA. popyc.org     raybo3@live.com
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  • LaReaLaRea Member, Moderator Posts: 7,728 mod
    Really Ray, really?  It's a joke!  :D
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  • raybo3raybo3 Administrator Posts: 5,496 admin
    LMFAO.................. B)
    2002 342 Fiesta Vee PC Point Of Pines YC Revere MA. popyc.org     raybo3@live.com
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  • zaverin1zaverin1 Member Posts: 1,672 ✭✭✭
    Ye that made no sense even to a stupid engineer lol
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  • zaverin1zaverin1 Member Posts: 1,672 ✭✭✭
    I have always loved sea rays. I guess it’s because my father had one and my first boat was a ray.
    rinker just fell into my lap at a great price and I made it my own and she looks
    great now. My guess my next boat will be either 342 or 340 ray. 
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  • mattiemattie Member Posts: 1,270 ✭✭✭✭
    zaverin1 said:
    Ye that made no sense even to a stupid engineer lol
    You know how to tell if an engineer is a good friend? He stares at your shoes instead of his own when he is talking with you....
    246BR, 276BR, H310BR current
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  • LaReaLaRea Member, Moderator Posts: 7,728 mod
    Hey now, don't be busting on us engineers.  It's a health condition.  

    https://www.youtube.com/watch?v=60P1xG32Feo
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  • J3ffJ3ff Member Posts: 4,085 ✭✭✭✭✭
    bry1429 said:
    Sea ray does have the flip down to make a huge platform.  Rinker will have it on their model year 2020 450EX  :p
    that's awesome, can't wait for these to be "used" and maybe affordable (in 10 years)
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