~ Drove Record December Quarter Revenue and 4%
Same-Store Sales Growth Amid More Challenging Retail Environment
~
~ Updates Fiscal 2024 Guidance ~
~ Hosts 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 first quarter ended December 31, 2023.
Fiscal 2024 First Quarter Summary
- Record December quarter revenue of $527.3 million
- Same-store sales increase of 4%
- Gross profit margin of 33.3%
- Net income of $0.9 million, or diluted EPS of $0.04; Adjusted
diluted EPS1 of $0.19
- Adjusted EBITDA1 of $26.6 million
CEO & President Commentary
“I’m proud of our team’s ability to drive a strong close to the
December quarter, generating the highest first quarter revenue in
our history. This growth came despite a challenging retail
environment which required us to take more aggressive pricing
actions than expected,” said Brett McGill, Chief Executive Officer
and President of MarineMax. “Our pricing actions did result in
lower gross margins and profitability. This was primarily due to
increased discounting on certain boat models in response to the
softer retail environment, as well as a greater mix of larger
boats, which historically carry a lower gross margin than other
product categories.”
“However, with the seasonally smallest quarter of the year
behind us, we are cautiously encouraged by the reasonably strong
start to the winter boat show season, along with the increased
support from our industry leading manufacturing partners. Our
healthy balance sheet and strong cash position allow us to continue
to execute on our long-term growth plans. In fiscal 2024, we are
focused on capturing further synergies and increasing the earnings
power of MarineMax imbedded in the acquisitions we completed over
the past several years. In addition, we continue to expand our
portfolio of higher-margin product and service offerings that
complement our business model,” McGill said. “This month, we
announced the planned acquisition of Williams Tenders USA, the
exclusive distributor in the United States and the Caribbean for
the premier brand of rigid inflatable jet tenders for the luxury
yacht market. The growth of the yacht and luxury yacht markets
represents a tailwind for our business as we advance our strategic
priorities.”
Fiscal 2024 First Quarter Results
Revenue in the fiscal 2024 first quarter increased to $527.3
million from $507.9 million in the comparable period last year. The
4% top-line growth was driven largely by higher new and used boat
sales, contributing to a 4% increase in same-store sales.
Gross profit decreased 6.1% to $175.5 million from $186.9
million in the prior-year period. Gross profit margin of 33.3%,
while historically high, decreased 350 basis points from 36.8% in
the fiscal 2023 first quarter, primarily as the result of a more
aggressive promotional environment in response to retail
environment challenges during the 2024 first quarter.
Selling, general, and administrative expenses totaled $156.5
million, or 29.7% of revenue, in the first quarter, compared with
$150.4 million, or 29.6% of revenue, for the same period last year.
The increase was driven primarily by acquisitions completed during
the year, as well as inflation and other specific cost
increases.
Interest expense was $18.4 million, or 3.5% of revenue in the
first quarter, compared with $9.5 million, or 1.9% of revenue in
the prior-year period, reflecting higher interest rates and
increased inventory in the fiscal 2024 period.
Net income in the first quarter was $0.9 million, or $0.04 per
diluted share, compared with net income of $19.7 million, or $0.89
per diluted share, in the same period last year. Adjusted net
income1 in the first quarter was $4.4 million, or $0.19 per diluted
share, compared with $27.3 million, or $1.24 per diluted share, in
the prior-year period. Adjusted EBITDA1 for the quarter ended
December 31, 2023 was $26.6 million, compared with $53.2 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 updating its fiscal year
2024 Adjusted net income1,2 guidance to a range of $3.20 to $3.70
per diluted share. The Company also is revising fiscal year 2024
Adjusted EBITDA1,2 guidance in the range of $190 million to $215
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 2024 first quarter 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 over 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 cautious encouragement
related to the remainder of fiscal 2024, the Company’s position to
continue to execute on its long-term growth plans, the potential
for expansion and synergies within our superyacht services and
luxury yacht offerings 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, 2023
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
December 31,
2023
2022
Revenue
$
527,274
$
507,927
Cost of sales
351,793
321,030
Gross profit
175,481
186,897
Selling, general, and administrative
expenses
156,482
150,397
Income from operations
18,999
36,500
Interest expense
18,365
9,484
Income before income tax (benefit)
provision
634
27,016
Income tax (benefit) provision
(211
)
7,029
Net income
845
19,987
Less: Net (loss) income attributable to
non-controlling interests
(85
)
297
Net income attributable to MarineMax,
Inc.
$
930
$
19,690
Basic net income per common share
$
0.04
$
0.91
Diluted net income per common share
$
0.04
$
0.89
Weighted average number of common shares
used in computing net income per common share:
Basic
22,196,141
21,756,165
Diluted
22,809,017
22,223,173
MarineMax, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(Amounts in thousands)
(Unaudited)
December 31,
December 31,
2023
2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
210,323
$
177,773
Accounts receivable, net
94,601
68,514
Inventories
876,233
605,369
Prepaid expenses and other current
assets
24,864
21,715
Total current assets
1,206,021
873,371
Property and equipment, net
532,492
501,589
Operating lease right-of-use assets,
net
140,785
138,592
Goodwill
575,850
527,718
Other intangible assets, net
38,958
38,794
Other long-term assets
32,401
33,220
Total assets
$
2,526,507
$
2,113,284
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
43,957
$
43,373
Contract liabilities (customer
deposits)
74,636
119,889
Accrued expenses
112,417
101,799
Short-term borrowings
664,858
341,212
Current maturities on long-term debt
33,766
32,449
Current operating lease liabilities
10,372
10,480
Total current liabilities
940,006
649,202
Long-term debt, net of current
maturities
380,972
415,263
Noncurrent operating lease liabilities
125,550
121,045
Deferred tax liabilities, net
57,939
37,807
Other long-term liabilities
87,469
75,041
Total liabilities
1,591,936
1,298,358
SHAREHOLDERS' EQUITY:
Preferred stock
—
—
Common stock
29
29
Additional paid-in capital
328,955
308,480
Accumulated other comprehensive income
3,891
2,010
Retained earnings
740,879
650,357
Treasury stock
(148,656
)
(148,656
)
Total shareholders’ equity attributable to
MarineMax, Inc.
925,098
812,220
Non-controlling interests
9,473
2,706
Total shareholders’ equity
934,571
814,926
Total liabilities and shareholders’
equity
$
2,526,507
$
2,113,284
MarineMax, Inc. and
Subsidiaries
Segment Financial
Information
(Amounts in thousands)
(Unaudited)
Three Months Ended
December 31,
2023
2022
Revenue:
Retail Operations
$
524,085
$
502,386
Product Manufacturing
46,128
56,326
Elimination of intersegment revenue
(42,939
)
(50,785
)
Revenue
$
527,274
$
507,927
Income from operations:
Retail Operations
$
14,806
$
36,728
Product Manufacturing
3,970
6,502
Intersegment adjustments
223
(6,730
)
Income from operations
$
18,999
$
36,500
MarineMax, Inc. and
Subsidiaries
Supplemental Financial
Information
(Amounts in thousands, except
share and per share data)
(Unaudited)
Three Months Ended
December 31,
2023
2022
Net income attributable to MarineMax,
Inc.
$
930
$
19,690
Transaction costs (1)
3,106
6,036
Intangible amortization (2)
1,734
1,705
Change in fair value of contingent
consideration (3)
219
1,047
Hurricane (recoveries) expenses
(289
)
1,494
Tax adjustments for items noted above
(4)
(1,259
)
(2,704
)
Adjusted net income attributable to
MarineMax, Inc.
$
4,441
$
27,268
Diluted net income per common share
$
0.04
$
0.89
Transaction costs (1)
0.13
0.27
Intangible amortization (2)
0.08
0.08
Change in fair value of contingent
consideration (3)
0.01
0.05
Hurricane (recoveries) expenses
(0.01
)
0.07
Tax adjustments for items noted above
(4)
(0.06
)
(0.12
)
Adjusted diluted net income per common
share
$
0.19
$
1.24
(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) Adjustments for taxes for items are
calculated based on the effective tax rate for each respective
period presented, the jurisdiction of the adjustment and before
discrete items.
Three Months Ended
December 31,
2023
2022
Net income attributable to MarineMax,
Inc.
$
930
$
19,690
Interest expense (excluding floor
plan)
7,756
6,366
Income tax (benefit) provision
(211
)
7,029
Depreciation and amortization
10,932
9,118
Stock-based compensation expense
5,419
4,845
Transaction costs
3,106
6,036
Change in fair value of contingent
consideration
219
1,047
Hurricane (recoveries) expenses
(289
)
1,494
Foreign currency
(1,216
)
(2,430
)
Adjusted EBITDA
$
26,646
$
53,195
Non-GAAP Financial Measures
This press release, along with the above Supplemental Financial
Information table, contains “Adjusted net income” 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 key 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.
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.
In addition, we have not reconciled our fiscal year 2024
Adjusted earnings 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 acquisition
costs. Acquisition contingent consideration and acquisition 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 earnings and Adjusted EBITDA are not available without
unreasonable effort.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240124477777/en/
Investors: Mike McLamb Chief Financial Officer MarineMax, Inc.
727-531-1700
Scott Solomon or Laura Resag Sharon Merrill Advisors
investors@marinemax.com
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