HZO MarineMax Inc

~ Posts Record Fourth Quarter and Full Year Revenue, Fueled by Robust Demand for the Boating Lifestyle ~

~ Provides Fiscal 2024 Guidance ~

~ Earnings Conference Call at 10:00 a.m. ET Today ~

MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat, yacht, and superyacht services company, today announced results for its fiscal 2023 fourth quarter and full year ended September 30, 2023.

Fiscal 2023 Fourth Quarter Highlights

• Record revenue of $594.6 million, up 11%
• Strong same-store sales growth of 8%
• Solid gross profit margin of 34.3%, driven by higher margin businesses
• Net income of $15.1 million, or diluted EPS of $0.67; Adjusted diluted EPS of $0.69
• Adjusted EBITDA of $42.6 million
• Expanded superyacht services in Greece with acquisition of Atalanta Golden Yachts

Fiscal 2023 Full Year Highlights

• Record revenue of $2.39 billion, up 4%
• Same-store sales decrease of 2%
• Strong gross profit margin of 34.9%, driven by higher margin businesses
• Net income of $109.3 million, or diluted EPS of $4.87; Adjusted diluted EPS of $5.21
• Adjusted EBITDA of $239.5 million

CEO & President Commentary

“Our strong close to fiscal year 2023 stands as a testament to the exceptional performance of our team,” stated MarineMax Chief Executive Officer and President Brett McGill. “Fueled by consumer demand for the boating lifestyle, sustained premium-segment momentum and our strategic marketing expertise, we delivered record revenue and generated 8% same-store sales growth in the fourth quarter. While product margins declined as expected amidst the industry’s return to seasonality and greater inventory levels, our gross profit margin remained robust. This reflects the resilience of our premium products, services, and experiences, as well as our success in structurally enhancing our margin profile through strategic acquisitions with higher earnings potential, including IGY Marinas.

“With the addition of businesses such as IGY, we have significantly enhanced the potential for expansion and synergies within our existing superyacht services and luxury yacht offerings,” continued Mr. McGill. “Supported by our strong balance sheet, we continue to actively expand our global market presence, exemplified by our most recent acquisition of Atalanta Golden Yachts in Greece, which closed in early October. As we look ahead to 2024, we are excited to build upon this foundation and deliver on our commitment to providing unparalleled boating and yachting experiences to a growing number of customers worldwide.”

Fiscal 2023 Fourth Quarter Results

Revenue in the fiscal 2023 fourth quarter increased to a record $594.6 million from $536.8 million in the comparable period last year. The 10.8% top-line growth was driven largely by higher new and used boat sales and the acquisition of IGY, which was completed in October 2022. Same-store sales grew 8% in the fourth quarter. IGY was not yet eligible for inclusion in the same-store revenue base.

Gross profit increased 3.5% to $203.7 million from $196.8 million in the prior-year period. Gross profit margin of 34.3% decreased 240 basis points from 36.7% in the fiscal 2022 fourth quarter, primarily as a result of expected lower new and used boat margins, partially offset by the acquisition of IGY.

Selling, general, and administrative expenses totaled $169.4 million, or 28.5% of revenue, in the fourth quarter, compared with $145.8 million, or 27.2% of revenue, for the same period last year. The biggest driver of the expense increase year-over-year was the addition of IGY and other acquisitions.

Interest expense was $15.8 million in the fourth quarter, compared with $1.0 million in the prior-year period, reflecting higher interest rates and the increase in long-term debt associated with the IGY acquisition, as well as increased inventory.

Net income in the fourth quarter was $15.1 million, or $0.67 per diluted share, compared with net income of $38.4 million, or $1.73 per diluted share, in the same period last year.

Adjusted net income1 in the fourth quarter was $15.8 million, or $0.69 per diluted share, compared with $44.3 million, or $1.99 per diluted share, in the prior-year period. Adjusted EBITDA1 for the quarter ended September 30, 2023 was $42.6 million, compared with $68.4 million for the same period last year.

Fiscal 2023 Full Year Results

Revenue in the fiscal 2023 full year increased 3.8% to a record $2.39 billion from $2.31 billion in the prior fiscal year, primarily driven by strategic acquisitions, including IGY, and partially offset by a modest decline in same-store sales. Same-store sales decreased 2%, compared with an increase of 5% in the comparable period last year.

Gross profit increased 3.7% to $835.3 million from $805.8 million in the prior fiscal year. Gross profit margin remained flat at 34.9% for the twelve months ended September 30, 2023, reflecting the addition of the higher margin revenue from IGY as well as the expected decline in new and used boat product margins.

Selling, general, and administrative expenses totaled $634.5 million, or 26.5% of revenue, in fiscal year 2023, compared with $540.6 million, or 23.4% of revenue, for the same period last year. The biggest driver of the expense increase year-over-year was the addition of IGY and other acquisitions.

Interest expense was $53.4 million, compared with $3.3 million in the prior period, reflecting higher interest rates and the increase in long-term debt associated with the IGY acquisition, as well as increased inventory.

Net income in the fiscal 2023 full year was $109.3 million, or $4.87 per diluted share, compared with net income of $198.0 million, or $8.84 per diluted share, in the same period last year.

Adjusted net income1 was $116.8 million, or $5.21 per diluted share, compared with $206.5 million, or $9.22 per diluted share, in the prior-year period. Adjusted EBITDA1 for the full year ended September 30, 2023 was $239.5 million, compared with $309.6 million for the same period last year.

Fiscal 2024 Guidance

Based on results to date, current business conditions, retail trends and other factors, the Company is providing fiscal year 2024 guidance for Adjusted net income2 in the range of $4.50 to $5.00 per diluted share. The Company also is providing fiscal year 2024 guidance for Adjusted EBITDA2 in the range of $225 million to $250 million. These expectations do not consider, or give effect for, among other things, material acquisitions that may be completed by the Company during fiscal 2024 or other unforeseen events, including changes in global economic conditions.

Conference Call Information

MarineMax will discuss its fiscal 2023 fourth quarter and full year financial results on a conference call starting at 10:00 a.m. ET today. The conference call can be accessed via the “Investors” section of the Company's website: www.marinemax.com, or by dialing 877-407-0789 (U.S. and Canada) or 201-689-8562 (International). An online replay will be available within one hour of the conclusion of the call and will be archived on the website for one year.

About MarineMax

As the world’s largest lifestyle retailer of recreational boats and yachts, as well as yacht concierge and superyacht services, MarineMax (NYSE: HZO) is United by Water. We have 130 locations worldwide, including 81 dealerships and 66 marina and storage facilities. Our integrated business includes IGY Marinas, which operates luxury marinas in yachting and sport fishing destinations around the world; Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies; Cruisers Yachts, one of the world’s premier manufacturers of premium sport yachts and motor yachts; and Intrepid Powerboats, a premier manufacturer of powerboats. To enhance and simplify the customer experience, we provide financing and insurance services as well as leading digital technology products that connect boaters to a network of preferred marinas, dealers, and marine professionals through Boatyard and Boatzon. In addition, we operate MarineMax Vacations in Tortola, British Virgin Islands, which offers our charter vacation guests the luxury boating adventures of a lifetime. Land comprises 29% of the earth’s surface. We’re focused on the other 71%. Learn more at www.marinemax.com.

Forward-Looking Statement

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include the potential for expansion and synergies within our superyacht services and luxury yacht offerings, the growth of our business in 2024, and our fiscal 2024 guidance. These statements are based on current expectations, forecasts, risks, uncertainties, and assumptions that may cause actual results to differ materially from expectations as of the date of this release. These risks, assumptions, and uncertainties include the Company’s abilities to reduce inventory, manage expenses and accomplish its goals and strategies, the quality of the new product offerings from the Company’s manufacturing partners, the performance and integration of the recently-acquired businesses, general economic conditions, as well as those within the Company's industry, the liquidity and strength of our bank group partners, the level of consumer spending, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2022 and other filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

_____________ 1 This is a non-GAAP measure. See below for an explanation and quantitative reconciliation of each non-GAAP financial measure. 2 See “Non-GAAP Financial Measures” below for a discussion of why reconciliations of forward-looking Adjusted Net Income and Adjusted EBITDA are not available without unreasonable effort.

 

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

 

$

594,595

 

 

$

536,764

 

 

$

2,394,706

 

 

$

2,308,098

 

Cost of sales

 

 

390,880

 

 

 

339,997

 

 

 

1,559,377

 

 

 

1,502,344

 

Gross profit

 

 

203,715

 

 

 

196,767

 

 

 

835,329

 

 

 

805,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

 

169,399

 

 

 

145,848

 

 

 

634,527

 

 

 

540,550

 

Income from operations

 

 

34,316

 

 

 

50,919

 

 

 

200,802

 

 

 

265,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

15,805

 

 

 

984

 

 

 

53,367

 

 

 

3,283

 

Income before income tax provision

 

 

18,511

 

 

 

49,935

 

 

 

147,435

 

 

 

261,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

3,272

 

 

 

11,575

 

 

 

37,957

 

 

 

63,932

 

Net income

 

 

15,239

 

 

 

38,360

 

 

 

109,478

 

 

 

197,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interests

 

 

98

 

 

 

—

 

 

 

196

 

 

 

—

 

Net income attributable to MarineMax, Inc.

 

$

15,141

 

 

$

38,360

 

 

$

109,282

 

 

$

197,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.69

 

 

$

1.78

 

 

$

5.00

 

 

$

9.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.67

 

 

$

1.73

 

 

$

4.87

 

 

$

8.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares used in computing net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

21,914,961

 

 

 

21,541,279

 

 

 

21,852,425

 

 

 

21,706,225

 

Diluted

 

 

22,753,029

 

 

 

22,231,163

 

 

 

22,429,381

 

 

 

22,399,209

 

 

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

201,456

 

 

$

228,274

 

Accounts receivable, net

 

 

85,780

 

 

 

50,287

 

Inventories

 

 

812,830

 

 

 

454,359

 

Prepaid expenses and other current assets

 

 

23,110

 

 

 

21,077

 

Total current assets

 

 

1,123,176

 

 

 

753,997

 

Property and equipment, net

 

 

527,552

 

 

 

246,011

 

Operating lease right-of-use assets, net

 

 

138,785

 

 

 

96,837

 

Goodwill

 

 

559,820

 

 

 

235,585

 

Other intangible assets, net

 

 

39,713

 

 

 

10,886

 

Other long-term assets

 

 

32,259

 

 

 

9,455

 

Total assets

 

$

2,421,305

 

 

$

1,352,771

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Accounts payable

 

$

71,706

 

 

$

34,342

 

Contract liabilities (customer deposits)

 

 

81,700

 

 

 

144,427

 

Accrued expenses

 

 

112,746

 

 

 

89,402

 

Short-term borrowings

 

 

537,060

 

 

 

132,026

 

Current maturities on long-term debt

 

 

33,767

 

 

 

2,882

 

Current operating lease liabilities

 

 

10,070

 

 

 

9,693

 

Total current liabilities

 

 

847,049

 

 

 

412,772

 

Long-term debt, net of current maturities

 

 

389,231

 

 

 

45,301

 

Noncurrent operating lease liabilities

 

 

123,789

 

 

 

89,657

 

Deferred tax liabilities, net

 

 

56,927

 

 

 

15,401

 

Other long-term liabilities

 

 

85,892

 

 

 

6,974

 

Total liabilities

 

 

1,502,888

 

 

 

570,105

 

SHAREHOLDERS' EQUITY:

 

 

 

 

 

 

Preferred stock

 

 

—

 

 

 

—

 

Common stock

 

 

29

 

 

 

29

 

Additional paid-in capital

 

 

323,218

 

 

 

303,432

 

Accumulated other comprehensive income (loss)

 

 

1,303

 

 

 

(2,806

)

Retained earnings

 

 

739,949

 

 

 

630,667

 

Treasury stock

 

 

(148,656

)

 

 

(148,656

)

Total shareholders’ equity attributable to MarineMax, Inc.

 

 

915,843

 

 

 

782,666

 

Non-controlling interests

 

 

2,574

 

 

—

 

Total shareholders’ equity

 

 

918,417

 

 

 

782,666

 

Total liabilities and shareholders’ equity

 

$

2,421,305

 

 

$

1,352,771

 

 

MarineMax, Inc. and Subsidiaries

Segment Financial Information

(Amounts in thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Retail Operations

 

$

587,313

 

 

$

522,750

 

 

$

2,294,362

 

 

$

2,212,922

 

Product Manufacturing

 

 

57,330

 

 

 

46,469

 

 

 

222,289

 

 

 

176,273

 

Elimination of intersegment revenue

 

 

(50,048

)

 

 

(32,455

)

 

 

(121,945

)

 

 

(81,097

)

Revenue

 

$

594,595

 

 

$

536,764

 

 

$

2,394,706

 

 

$

2,308,098

 

Income from operations:

 

 

 

 

 

 

 

 

 

 

 

 

Retail Operations

 

$

33,973

 

 

$

45,062

 

 

$

192,487

 

 

$

249,186

 

Product Manufacturing

 

 

5,585

 

 

 

6,525

 

 

 

23,420

 

 

 

20,258

 

Intersegment adjustments

 

 

(5,242

)

 

 

(668

)

 

 

(15,105

)

 

 

(4,240

)

Income from operations

 

$

34,316

 

 

$

50,919

 

 

$

200,802

 

 

$

265,204

 

 

MarineMax, Inc. and Subsidiaries

Supplemental Financial Information

(Amounts in thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income attributable to MarineMax, Inc.

 

$

15,141

 

 

$

38,360

 

 

$

109,282

 

 

$

197,989

 

Transaction costs (1)

 

 

84

 

 

 

1,696

 

 

 

6,311

 

 

 

3,153

 

Intangible amortization (2)

 

 

2,032

 

 

 

594

 

 

 

7,555

 

 

 

2,363

 

Change in fair value of contingent consideration (3)

 

 

(1,069

)

 

 

618

 

 

 

2,372

 

 

 

993

 

Hurricane expenses (recoveries)

 

 

(290

)

 

 

4,800

 

 

 

(933

)

 

 

4,800

 

Gain on acquisition of equity investment (4)

 

 

—

 

 

 

—

 

 

 

(5,129

)

 

 

—

 

Tax adjustments for items noted above (5)

 

 

(134

)

 

 

(1,788

)

 

 

(2,615

)

 

 

(2,759

)

Adjusted net income attributable to MarineMax, Inc.

 

$

15,764

 

 

$

44,280

 

 

$

116,843

 

 

$

206,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.67

 

 

$

1.73

 

 

$

4.87

 

 

$

8.84

 

Transaction costs (1)

 

 

—

 

 

 

0.08

 

 

 

0.28

 

 

 

0.14

 

Intangible amortization (2)

 

 

0.09

 

 

 

0.02

 

 

 

0.34

 

 

 

0.11

 

Change in fair value of contingent consideration (3)

 

 

(0.05

)

 

 

0.02

 

 

 

0.11

 

 

 

0.04

 

Hurricane expenses (recoveries)

 

 

(0.01

)

 

 

0.22

 

 

 

(0.04

)

 

 

0.21

 

Gain on acquisition of equity investment (4)

 

 

—

 

 

 

—

 

 

 

(0.23

)

 

 

—

 

Tax adjustments for items noted above (5)

 

 

(0.01

)

 

 

(0.08

)

 

 

(0.12

)

 

 

(0.12

)

Adjusted diluted net income per common share

 

$

0.69

 

 

$

1.99

 

 

$

5.21

 

 

$

9.22

 

 

(1) Transactions costs relate to acquisition transaction and integration costs in the period.

(2) Represents amortization expense for acquisition-related intangible assets.

(3) Represents expenses to record contingent consideration liabilities at fair value.

(4) Represents gain on a previously held equity investment upon acquisition of the entire business.

(5) Adjustments for taxes for items are calculated based on the effective tax rate for each respective period presented and the jurisdiction of the adjustment.

 

 

 

Three Months Ended

 

 

Fiscal Year Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income attributable to MarineMax, Inc.

 

$

15,141

 

 

$

38,360

 

 

$

109,282

 

 

$

197,989

 

Interest expense (excluding floor plan)

 

 

7,807

 

 

 

889

 

 

 

28,477

 

 

 

2,263

 

Income tax provision

 

 

3,272

 

 

 

11,575

 

 

 

37,957

 

 

 

63,932

 

Depreciation and amortization

 

 

10,799

 

 

 

5,166

 

 

 

41,032

 

 

 

19,418

 

Stock-based compensation expense

 

 

5,954

 

 

 

4,859

 

 

 

21,657

 

 

 

16,013

 

Transaction costs

 

 

84

 

 

 

1,696

 

 

 

6,311

 

 

 

3,153

 

Gain on acquisition of equity investment

 

 

—

 

 

 

—

 

 

 

(5,129

)

 

 

—

 

Change in fair value of contingent consideration

 

 

(1,069

)

 

 

618

 

 

 

2,372

 

 

 

993

 

Hurricane expenses (recoveries)

 

 

(290

)

 

 

4,800

 

 

 

(933

)

 

 

4,800

 

Foreign currency

 

 

875

 

 

 

451

 

 

 

(1,575

)

 

 

1,000

 

Adjusted EBITDA

$

42,573

 

$

68,414

 

 

$

239,451

$

309,561

 

Non-GAAP Financial Measures

This press release, along with the above Supplemental Financial Information table, contains “Adjusted net income,” “Adjusted diluted EPS” and “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization” (“Adjusted EBITDA”), which are non-GAAP financial measures as defined under applicable securities legislation. In determining these measures, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. The Company believes these non-GAAP financial measures are helpful performance indicators that improve the period-to-period comparability of the Company’s results and provide investors with more insight into, and an additional tool to understand and assess, the performance of the Company’s ongoing core business operations. Our board of directors, management team and lenders use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and other items (such as the change in fair value of contingent consideration, hurricane expenses, foreign currency, and transaction costs) that impact the comparability of financial results from period to period. Investors and other readers are encouraged to review the related GAAP financial measures and the above reconciliation and should consider these non-GAAP financial measures as a supplement to, and not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently.

In addition, we have not reconciled our guidance for fiscal year 2024 Adjusted net income and Adjusted EBITDA guidance to net income (the corresponding GAAP measure for each), which is not accessible on a forward-looking basis due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to acquisition contingent consideration and transaction costs. Acquisition contingent consideration and transaction costs, which are likely to be significant to the calculation of net income, are affected by the integration and post-acquisition performance of our acquirees, which is difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted net income and Adjusted EBITDA are not available without unreasonable effort. 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231025699051/en/

Investor: Mike McLamb Chief Financial Officer MarineMax, Inc. 727-531-1700

Scott Solomon or Laura Resag Sharon Merrill Associates, Inc. 857-383-2409 investors@marinemax.com