~Record December Quarter Revenue Grew to
$236.9 Million~
~Record December Quarter Pretax Earnings
Increased Over 44% to $6.5 Million~
~Record December Quarter After-Tax EPS Grew
over 72% to $0.19 Per Diluted Share~
~Full Fiscal Year 2018 Guidance
Raised~
MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational
boat and yacht retailer, today announced results for its first
quarter ended December 31, 2017.
Revenue grew over $10 million, or 4.4% on top of 33% growth in
the prior year, to $236.9 million for the quarter ended December
31, 2017 from $226.9 million in the comparable period last year.
Same-store sales were flat as compared to 28% same-store sales
growth in the same period last year, which concluded an 81%
three-year stacked same-store sales growth period for the Company.
The December quarter is typically the Company’s smallest revenue
quarter of the year, which often results in a loss quarter for most
marine dealers, including MarineMax.
The Company, for the fourth consecutive year, produced a
profitable December quarter. Pretax earnings grew over 44% to $6.5
million, a December quarter record. For the quarter ended December
31, 2017, the Company produced record net income of $4.2 million
and earnings per diluted share grew over 72% to $0.19 as compared
to net income of $2.6 million or $0.11 per diluted share last year.
The Company’s effective tax rate for the December quarter was
reduced to 34.8% from 40.9% in the comparable period last year, due
primarily to the 2017 Tax Cuts and Jobs Act legislation that was
recently passed. Included in the December quarter is an increase in
the Company’s income tax provision of $889,000, or $0.04 per
diluted share, resulting from a re-measurement of the Company’s
deferred tax assets and liabilities, as a result of the new tax
legislation. Absent such increase, the Company’s diluted earnings
per share would have been $0.23 in the quarter ended December 31,
2017.
William H. McGill, Jr., Chairman and Chief Executive Officer
stated, “The strong execution by our team and the ongoing
commitment to delivering enhanced and sustained cash flow with
earnings growth, resulted in record profitability in our December
quarter. Our focus on maintaining a disciplined sales and service
approach, while having the right models of inventory, enabled our
superior performance in the quarter. Trends in the quarter were
generally encouraging as we experienced a healthy mix in product
sales as well as an increase in our higher margin businesses,
resulting in meaningful gross margin improvement over last year.
Absent the additional expenses associated with the January 2017
acquisition we completed, our team controlled costs and produced
strong leverage in the quarter which helped to drive our record
earnings.”
Mr. McGill continued, “We began our important March quarter with
a greater backlog than last year and thus far early boat shows are
encouraging. With improving economic optimism, supported by the
recent tax legislation, improving consumer confidence, and ample
inventory, we are well-positioned to gain market share and drive
positive growth in 2018.”
2018 Guidance
Based on current business conditions, the recently passed tax
legislation, retail trends and other factors, the Company is
raising its annual guidance expectations for fully taxed earnings
per diluted share to be in the range of $1.30 to $1.40 for fiscal
2018 from its previous guidance of $1.10 to $1.20. These
expectations do not take into account or give effect for future
material acquisitions that may be completed by the Company during
the fiscal year or other unforeseen events.
About MarineMax
Headquartered in Clearwater, Florida, MarineMax is the nation’s
largest recreational boat and yacht retailer. Focused on premium
brands, such as Sea Ray, Boston Whaler, Meridian, Hatteras, Azimut
Yachts, Ocean Alexander, Galeon, Grady-White, Harris, Bennington,
Crest, Scout, Cobalt, Sailfish, Sea Pro, Sportsman, Scarab Jet
Boats, Yamaha Jet Boats, Aquila, and Nautique, MarineMax sells new
and used recreational boats and related marine products and
services as well as provides yacht brokerage and charter services.
MarineMax currently has 62 retail locations in Alabama,
Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota,
Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma,
Rhode Island, South Carolina and Texas and operates MarineMax
Vacations in Tortola, British Virgin Islands. MarineMax is a New
York Stock Exchange-listed company. For more information, please
visit 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 Company's anticipated
financial results for the first quarter ended December 31, 2017;
the Company’s effective tax rate for fiscal year 2018; improving
economic optimism; improving consumer confidence; and the Company’s
positioning to gain market share and drive positive growth in 2018.
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, general
economic conditions, as well as those within our industry, the
level of consumer spending, the Company’s ability to integrate
acquisitions into existing operations, the continued recovery of
the industry, and numerous other factors identified in the
Company’s Form 10-K for the fiscal year ended September 30, 2017
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.
MarineMax, Inc. and
Subsidiaries
Condensed Consolidated Statements of
Operations
(Amounts in thousands, except share and
per share data)
(Unaudited)
Three Months EndedDecember
31,
2017 2016 Revenue $ 236,921 $
226,875 Cost of sales 177,672 173,737 Gross profit
59,249 53,138 Selling, general, and
administrative expenses
50,246 47,095 Income from operations 9,003 6,043
Interest expense 2,542 1,569 Income before
income tax provision 6,461 4,474 Income tax provision
2,249 1,831 Net income $ 4,212 $ 2,643 Basic net
income per common share $ 0.19 $ 0.11 Diluted net income per
common share $ 0.19 $ 0.11 Weighted average number of common
shares used in computing net income per common share: Basic
21,986,981 24,249,739 Diluted 22,712,648
24,923,125
MarineMax, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(Amounts in thousands)
(Unaudited)
December 31,
2017
December 31,
2016
ASSETS CURRENT ASSETS: Cash and cash equivalents $ 35,566 $
37,079 Accounts receivable, net 28,726 22,954 Inventories, net
440,720 363,622 Prepaid expenses and other current assets
6,615 5,713 Total current assets 511,627 429,368
Property and equipment, net 127,407 123,547 Other long-term assets,
net 30,404 13,378 Deferred tax assets, net 7,471
19,839 Total assets $ 676,909 $ 586,132
LIABILITIES AND
STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $
10,366 $ 9,481 Customer deposits 19,622 22,771 Accrued expenses
26,940 22,426 Short-term borrowings 307,739 213,510
Total current liabilities 364,667 268,188 Long-term
liabilities 2,786 2,414 Total liabilities 367,453
270,602 STOCKHOLDERS' EQUITY: Preferred stock -- -- Common
stock 27 26 Additional paid-in capital 253,714 243,814 Retained
earnings 130,971 105,855 Treasury stock (75,256)
(34,165) Total stockholders’ equity 309,456 315,530
Total liabilities and stockholders’ equity $ 676,909 $ 586,132
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180124005363/en/
MarineMax, Inc.Michael H. McLamb, 727-531-1700Chief Financial
OfficerorAbbey Heimensen, 727-531-1700Public RelationsorICR,
LLCBrad Cohen, 203-682-8211bcohen@icrinc.com
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