~ Posts March Quarter Revenue of $582.9
Million, Up 2% Year-over-Year ~
~ Reports Comparable Same-Store Sales Growth of
2% ~
~ Revises Fiscal 2024 Financial 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 second quarter ended March 31, 2024.
Fiscal 2024 Second Quarter Summary
- March quarter revenue of $582.9 million
- Same-store sales increase of 2%
- Gross profit margin of 32.7%
- Net income of $1.6 million, or diluted EPS of $0.07; Adjusted
diluted EPS1 of $0.18
- Adjusted EBITDA1 of $29.6 million
CEO & President Commentary
“Although we continue to operate in a challenging market
environment, as evidenced by industrywide larger than expected
declines in boat registrations, we drove an increase in sales in
the second quarter. Our gross margin also remains strong as a
direct result of the strategic growth in our higher-margin
businesses,” said Brett McGill, Chief Executive Officer and
President of MarineMax. “Our performance was impacted by ongoing
softness in the marine market, highlighting broader macroeconomic
concerns including elevated interest rates and persistent
inflation. While interest in boating remains encouraging, more
aggressive promotional activity was required to assist consumers in
making purchase decisions.
“We continue to focus on driving growth through investments in
strong, higher-margin businesses that enhance the customer
experience and expand our margin profile. During the quarter, we
completed the purchase of Williams Tenders USA. This transaction
advances our growth strategy, giving MarineMax distribution
exclusivity in the U.S. and the Caribbean for the world’s premier
brand of rigid inflatable jet tenders for the luxury yacht
market.
“We are taking additional steps to reduce expenses while
maintaining our customer experience and service. These additional
measures are directed at better aligning our cost structure with
the current environment. Our actions will enhance our strong cash
position and healthy balance sheet, positioning us for greater
opportunities as market conditions improve,” McGill said.
Fiscal 2024 Second Quarter Results
Revenue in the fiscal 2024 second quarter increased 2% to $582.9
million from $570.3 million in the comparable period last year. The
top-line growth was primarily driven by an increase in boat sales.
On a comparable same-store basis, revenue increased 2%.
Gross profit decreased 5.2% to $190.4 million from $200.9
million in the prior-year period. Gross profit margin of 32.7%
decreased 250 basis points from 35.2% in the comparable period last
year, as a higher level of promotional activity amid challenging
retail conditions resulted in lower boat margins.
Selling, general, and administrative (SG&A) expenses totaled
$169.0 million, or 29.0% of revenue, in the second quarter,
compared with $145.5 million, or 25.5% of revenue, for the
comparable period last year. Excluding transaction costs, changes
in contingent consideration, weather events and other non-recurring
items in the 2024 period, adjusted SG&A increased $16.4
million, or 11%, from the same period in fiscal 2023.
Interest expense was $19.4 million, or 3.3% of revenue in the
second quarter, compared with $13.3 million, or 2.3% of revenue in
the prior-year period, reflecting higher interest rates and
increased inventory compared with the second quarter of fiscal
2023.
Net income in the second quarter was $1.6 million, or $0.07 per
diluted share, compared with net income of $30.0 million, or $1.35
per diluted share, in the same period last year. Adjusted net
income1 in the second quarter was $4.1 million, or $0.18 per
diluted share, compared with $27.4 million, or $1.23 per diluted
share, in the prior-year period. Adjusted EBITDA1 for the quarter
ended March 31, 2024, was $29.6 million, compared with $57.4
million for the comparable period last year.
Company Revises 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 $2.20 to $3.20
per diluted share. The Company also is revising fiscal year 2024
Adjusted EBITDA1,2 guidance to a range of $155 million to $190
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 second 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 83 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 ongoing softness in the
marine market, more aggressive promotional activity, the Company’s
focus on driving growth through the acquisition of strong,
higher-margin businesses, the Company’s strategy to invest in
brands, products and services that enhance the customer experience
and expand the Company’s margin profile, the Company’s operational
improvement measures and the related expected annualized cost
savings 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
Six Months Ended
March 31,
March 31,
2024
2023
2024
2023
Revenue
$
582,892
$
570,340
$
1,110,166
$
1,078,267
Cost of sales
392,471
369,431
744,264
690,461
Gross profit
190,421
200,909
365,902
387,806
Selling, general, and administrative
expenses
169,020
145,504
325,502
295,901
Income from operations
21,401
55,405
40,400
91,905
Interest expense
19,374
13,280
37,739
22,764
Income before income tax provision
2,027
42,125
2,661
69,141
Income tax provision
578
12,201
367
19,230
Net income
1,449
29,924
2,294
49,911
Less: Net (loss) income attributable to
non-controlling interests
(138
)
(111
)
(223
)
186
Net income attributable to MarineMax,
Inc.
$
1,587
$
30,035
$
2,517
$
49,725
Basic net income per common share
$
0.07
$
1.37
$
0.11
$
2.28
Diluted net income per common share
$
0.07
$
1.35
$
0.11
$
2.23
Weighted average number of common shares
used in computing net income per common share:
Basic
22,299,599
21,853,557
22,247,587
21,804,326
Diluted
22,999,229
22,314,262
22,903,840
22,268,183
MarineMax, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(Amounts in thousands)
(Unaudited)
March 31,
March 31,
2024
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
216,684
$
204,339
Accounts receivable, net
121,639
116,910
Inventories
932,607
711,296
Prepaid expenses and other current
assets
21,996
21,710
Total current assets
1,292,926
1,054,255
Property and equipment, net
536,175
499,418
Operating lease right-of-use assets,
net
140,882
138,525
Goodwill
590,344
558,613
Other intangible assets, net
39,174
42,134
Other long-term assets
31,488
31,783
Total assets
$
2,630,989
$
2,324,728
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
61,339
$
44,598
Contract liabilities (customer
deposits)
79,095
113,934
Accrued expenses
124,332
113,803
Short-term borrowings
736,717
498,647
Current maturities on long-term debt
33,766
32,409
Current operating lease liabilities
10,359
9,981
Total current liabilities
1,045,608
813,372
Long-term debt, net of current
maturities
372,624
407,335
Noncurrent operating lease liabilities
126,224
121,813
Deferred tax liabilities, net
58,156
47,638
Other long-term liabilities
87,919
83,310
Total liabilities
1,690,531
1,473,468
SHAREHOLDERS' EQUITY:
Preferred stock
—
—
Common stock
29
29
Additional paid-in capital
334,939
313,848
Accumulated other comprehensive income
2,531
3,013
Retained earnings
742,466
680,392
Treasury stock
(148,656
)
(148,656
)
Total shareholders’ equity attributable to
MarineMax, Inc.
931,309
848,626
Non-controlling interests
9,149
2,634
Total shareholders’ equity
940,458
851,260
Total liabilities and shareholders’
equity
$
2,630,989
$
2,324,728
MarineMax, Inc. and
Subsidiaries
Segment Financial
Information
(Amounts in thousands)
(Unaudited)
Three Months Ended
Six Months Ended
March 31,
March 31,
2024
2023
2024
2023
Revenue:
Retail Operations
$
579,177
$
558,872
$
1,103,262
$
1,061,258
Product Manufacturing
40,182
56,749
86,310
113,075
Elimination of intersegment revenue
(36,467
)
(45,281
)
(79,406
)
(96,066
)
Revenue
$
582,892
$
570,340
$
1,110,166
$
1,078,267
Income from operations:
Retail Operations
$
20,665
$
53,737
$
35,470
$
90,465
Product Manufacturing
(914
)
6,243
3,056
12,745
Intersegment adjustments
1,650
(4,575
)
1,874
(11,305
)
Income from operations
$
21,401
$
55,405
$
40,400
$
91,905
MarineMax, Inc. and
Subsidiaries
Supplemental Financial
Information
(Amounts in thousands, except
share and per share data)
(Unaudited)
Three Months Ended
Six Months Ended
March 31,
March 31,
2024
2023
2024
2023
Net income attributable to MarineMax,
Inc.
$
1,587
$
30,035
$
2,517
$
49,725
Transaction costs (1)
119
80
3,225
6,116
Intangible amortization (2)
1,429
1,890
3,163
3,595
Change in fair value of contingent
consideration (3)
949
1,183
1,167
2,230
Weather expenses (recoveries)
987
(1,685
)
698
(191
)
Gain on acquisition of equity investment
(4)
—
(5,129
)
—
(5,129
)
Tax adjustments for items noted above
(5)
(993
)
1,062
(1,139
)
(1,841
)
Adjusted net income attributable to
MarineMax, Inc.
$
4,078
$
27,436
$
9,631
$
54,505
Diluted net income per common share
$
0.07
$
1.35
$
0.11
$
2.23
Transaction costs (1)
0.01
—
0.14
0.27
Intangible amortization (2)
0.06
0.08
0.14
0.16
Change in fair value of contingent
consideration (3)
0.04
0.05
0.05
0.10
Weather expenses (recoveries)
0.04
(0.08
)
0.03
(0.01
)
Gain on acquisition of equity investment
(4)
—
(0.22
)
—
(0.22
)
Tax adjustments for items noted above
(5)
(0.04
)
0.05
(0.05
)
(0.08
)
Adjusted diluted net income per common
share
$
0.18
$
1.23
$
0.42
$
2.45
(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.
Three Months Ended
Six Months Ended
March 31,
March 31,
2024
2023
2024
2023
Net income attributable to MarineMax,
Inc.
$
1,587
$
30,035
$
2,517
$
49,725
Interest expense (excluding floor
plan)
7,522
6,819
15,278
13,184
Income tax provision
578
12,201
367
19,230
Depreciation and amortization
10,965
8,853
21,897
17,972
Stock-based compensation expense
5,984
5,368
11,402
10,213
Transaction costs
119
80
3,225
6,116
Gain on acquisition of equity
investment
—
(5,129
)
—
(5,129
)
Change in fair value of contingent
consideration
949
1,183
1,167
2,230
Weather expenses (recoveries)
987
(1,685
)
698
(191
)
Foreign currency
908
(371
)
(308
)
(2,801
)
Adjusted EBITDA
$
29,599
$
57,354
$
56,243
$
110,549
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 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 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 earnings and Adjusted EBITDA are not available without
unreasonable effort.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424515359/en/
Mike McLamb Chief Financial Officer 727-531-1700
investors@marinemax.com
Scott Solomon Sharon Merrill Advisors 857-383-2409
HZO@investorrelations.com
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