Massimo Group Announces Expansion of its Manufacturing Facility in Garland, Texas

Rhea-AI Summary

Massimo Group (NASDAQ: MAMO) announced an expansion of its Garland, Texas manufacturing facility by 90,000 sq. ft. to support increased production of motor and marine products. The expansion brings the facility's size to 376,000 sq. ft., divided into 260,000 sq. ft. for Massimo Motor Sports and 96,000 sq. ft. for Massimo Marine. This project is part of a series of expansions aimed at accommodating the company's growth initiatives. In 2023, sales for UTVs, ATVs, and electric bikes grew by 32%, while pontoon boats saw a 38% increase.

The facility includes a design center, two assembly lines, and a 40,000 sq. ft. parts department. Components are sourced from various suppliers, with exclusive electrical and engine components from Mercury Marine. The expansion aims to meet rising demand and pave the way for new product lines.

Positive

• Expansion of 90,000 sq. ft. to support increased production.
• Total facility size now 376,000 sq. ft., enhancing manufacturing capabilities.
• Growth initiatives supported by this expansion project.
• Annual revenue growth of 32% for motorsports and 38% for marine products in 2023.
• Facility includes design center, assembly lines, and parts department, improving efficiency.
• Exclusive arrangement with Mercury Marine for electrical components and boat engines.
• Ability to ship most orders within three days, improving customer satisfaction.

Negative

• Potential risks associated with rapid expansion projects.
• Dependency on suppliers for structural and electrical components may pose supply chain risks.
• High operational costs due to large facility size and expansion projects.

90,000 sq. ft. Warehouse Facility Expansion to Support Rapid Growth of Motor and Marine Product Verticals

GARLAND, Texas, May 21, 2024 /PRNewswire/ -- Massimo Group (NASDAQ: MAMO) ("Massimo"), a manufacturer and distributor of powersports vehicles and pontoon boats, today announced an expansion of its manufacturing facility in Garland, Texas, to support increased production across its motor and marine product verticals.

The expansion will add 90,000 sq. ft. to the existing facility. The Garland location will continue to manufacture its Pontoon Boats in its now 376,000 sq. ft. facility, of which 260,000 sq. ft. is dedicated to Massimo Motor Sports and 96,000 sq. ft. to Massimo Marine. The facility expansion is the first in a series of expansion projects to accommodate the Company's growth initiatives.

"This expansion is a timely project concurrent with the growth of both our motor and marine verticals as we ramp up our production to support increased sales," said David Shan, Founder, Chairman & CEO of Massimo. "We continue to experience sales momentum across UTVs, ATVs, and electric bikes as well as pontoon boats, which accounted for annual revenue growth of 32% and 38%, respectively, in 2023. The expansion allows Massimo to deliver on this surging demand while making capacity for potential new product lines."

The facility sits next to a seven-acre storage area for boats in Dallas, Texas, and houses a design center, two assembly lines, quality control bay, an approximately 40,000 sq. ft. parts department, and over 30 loading docks. Structural components and other materials are sourced from a variety of suppliers. Electrical components and boat engines are procured through an exclusive arrangement with Mercury Marine. The facility is featured in the Massimo overview video linked here.

In addition to serving as the manufacturing hub for Massimo's Pontoon Boats, the facility is outfitted to efficiently palletize and shrink-wrap ATVs and UTVs, enabling the shipment of most orders to stores or distributors within three days. The majority of the Company's inventory is directly imported from its manufacturer network to its Garland facility where they undergo assembly, accessorization, and inspection before shipment to a distributor or directly to the customer, except for its pontoon boats, which are wholly manufactured at the Garland facility.

About Massimo Group

Massimo Group (NASDAQ: MAMO) is a manufacturer and distributor of powersports vehicles and pontoon boats. Founded in 2009, Massimo Motor believes it offers some of the most value packed UTV's, off-road, and on-road vehicles in the industry. The company's product lines include a wide selection of farm and ranch tested utility UTVs, recreational ATVs, and Americana style mini-bikes. Massimo Marine manufacturers and sells Pontoon and Tritoon boats with a dedication to innovative design, quality craftsmanship, and great customer service. Massimo is also developing electric versions of UTVs, golf-carts and pontoon boats. The company's 376,000 square foot factory is in the heart of the Dallas / Fort Worth area of Texas in the city of Garland.

For more information, visit massimomotor.com, massimomarine.com, and massimoelectric.com.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering and the use of proceeds thereof. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "predict," "project," "target," "potential," "seek," "will," "would," "could," "should," "continue," "contemplate," "plan," and other words and terms of similar meaning. These forward-looking statements include information concerning statements regarding future cash needs, future operations, business plans and future financial results; and any other statements that are not historical facts. No assurance can be given that the proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Massimo, including those set forth in the "Risk Factors" section of Massimo's Annual Report on Form 10-K filed with the SEC. Copies are available on the SEC's website, www.sec.gov. Massimo undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company
Dr. Yunhao Chen
Chief Financial Officer
Massimo Group
ir@massimomotor.com

Investor Relations
Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
MAMO@mzgroup.us

 

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SOURCE Massimo Group

FAQ

What is the recent expansion announcement by Massimo Group?

Massimo Group announced a 90,000 sq. ft. expansion of its manufacturing facility in Garland, Texas.

Why is Massimo Group expanding its Garland facility?

The expansion aims to support increased production across its motor and marine product verticals.

What is the total size of Massimo's Garland facility after expansion?

The total size of the facility is now 376,000 sq. ft. after the expansion.

How did Massimo's sales perform in 2023?

Massimo experienced a 32% growth in motorsports and a 38% increase in marine products sales in 2023.

What components does Massimo source from Mercury Marine?

Massimo procures electrical components and boat engines through an exclusive arrangement with Mercury Marine.

How quick is Massimo's order shipment process?

Most orders are shipped within three days from the Garland facility.