HZO

~ Record December Quarter Revenue of $508 Million, Up 7% ~

~ Record December Quarter Gross Margin of 36.8% ~

~ Net Income of $19.7 Million, or $0.89 per Share; Adjusted Net Income of $27.3 Million, or $1.24 per Share ~

~ Adjusted EBITDA of $53.2 Million ~

~ Updates Fiscal Year 2023 Guidance ~

~ Company to Host Q1 2023 Earnings Call at 10:00 a.m. ET Today ~

MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat, yacht and superyacht company, today announced results for its first quarter ended December 31, 2022.

Revenue increased 7% to a record $507.9 million for the quarter ended December 31, 2022, from $472.7 million in the comparable period last year. The growth was primarily driven by contributions from strategic acquisitions, including IGY Marinas which closed in October 2022. As a result of the current macroeconomic environment and ongoing supply chain challenges, same-store sales declined a modest 1% for the quarter, compared with an increase of 9% in the first quarter of 2022.

Net income for the quarter ended December 31, 2022 was $19.7 million, or $0.89 per diluted share, compared with net income of $35.9 million, or $1.59 per diluted share, for the same period last year. Adjusted net income1 was $27.3 million, or $1.24 per diluted share for the quarter ended December 31, 2022. Adjusted EBITDA1 for the quarter ended December 31, 2022 was $53.2 million, compared with $55.3 million for the same period last year. Adjusted EBITDA1, excluding the adjustment for currency changes, was $55.6 million for the quarter ended December 31, 2022.

Brett McGill, Chief Executive Officer and President, stated, “Our team executed exceptionally well in the first quarter, despite the sustained supply chain constraints and economic uncertainty. We delivered strong top-line growth, record December quarter gross margin, strong positive cash flows and Adjusted EBITDA, reflecting the strength of our premium brands and the addition of IGY Marinas to our portfolio. In addition to the IGY acquisition, we also expanded with Midcoast Marine Enterprises, while also growing on the technology front, through the formation of a new business, New Wave Innovations. New Wave recently completed the acquisition of Boatzon, the industry’s only 100% online boat and marine digital retail platform.”

Mr. McGill concluded, “Although we are updating our 2023 guidance as a result of current economic uncertainty, we have strong momentum as we move into the remainder of the year. We are backed by one of the strongest balance sheets in the industry, which provides us increased flexibility to remain agile and take advantage of opportunities as they arise. We remain confident that our organic growth opportunities, coupled with attractive strategic acquisitions, position us well for 2023 and beyond. We continue to execute on our strategic growth plan to drive sustainable value for MarineMax stakeholders through a diversified business model built on premium brands, global marinas, world-class services, and innovative technology.”

2023 Guidance

Based on current business conditions, retail trends and other factors, the Company is updating its fiscal year 2023 guidance for Adjusted earnings2 per diluted share to a range of $6.90 to $7.40. In addition, the Company's fiscal year 2023 guidance for Adjusted EBITDA2 is a range of $275 million to $300 million. These expectations do not consider, or give effect for, among other things, material acquisitions that may be completed by the Company during fiscal 2023 or other unforeseen events, including changes in global economic conditions.

Conference Call Information

MarineMax will discuss the fiscal 2023 first quarter results and outlook in 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: http://www.marinemax.com, or by dialing 877-407-0789 (U.S. and Canada) or 201-689-8562 (International) and entering Conference ID 13734894. An archived 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 more than 125 locations worldwide, including 78 dealerships and 57 marinas. 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; Cruiser Yachts, one of the world’s premier manufacturers of premium sport yacht and 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 Statements

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 momentum as it moves into the remainder of fiscal 2023, the Company's positioning for fiscal 2023 and beyond, the Company's execution of its strategic plan, and the Company’s fiscal year 2023 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, the impacts (direct and indirect) of COVID-19 on the Company’s business, the Company’s employees, the Company’s manufacturing partners, and the overall economy, general economic conditions, as well as those within the Company's industry, 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 earnings 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,

 

2022

 

2021

 

 

 

 

 

 

 

 

Revenue

$

507,927

 

$

472,691

Cost of sales

 

321,030

 

 

305,492

Gross profit

 

186,897

 

 

167,199

 

 

 

 

Selling, general, and administrative expenses

 

150,397

 

 

119,997

Income from operations

 

36,500

 

 

47,202

 

 

 

 

Interest expense

 

9,484

 

 

637

Income before income tax provision

 

27,016

 

 

46,565

 

 

 

 

Income tax provision

 

7,029

 

 

10,622

Net income

 

19,987

 

 

35,943

Less: Net income attributable to non-controlling interests

 

297

 

 

-

Net income attributable to MarineMax, Inc.

$

19,690

 

$

35,943

 

 

 

 

Basic net income per common share

$

0.91

 

$

1.64

 

 

 

 

Diluted net income per common share

$

0.89

 

$

1.59

 

 

 

 

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

 

 

 

Basic

 

21,756,165

 

 

21,899,264

Diluted

 

22,223,173

 

 

22,663,694

MarineMax, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited)

 

 

December 31, 2022

 

December 31, 2021

ASSETS

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

177,773

 

$

216,315

Accounts receivable, net

 

68,514

 

 

39,468

Inventories, net

 

605,369

 

 

325,396

Prepaid expenses and other current assets

 

21,715

 

 

16,736

Total current assets

 

873,371

 

 

597,915

 

 

 

Property and equipment, net

 

501,589

 

 

217,513

Operating lease right-of-use assets, net

 

138,592

 

 

101,835

Goodwill

 

527,718

 

 

234,758

Other intangible assets, net

 

38,794

 

 

12,358

Other long-term assets

 

33,220

 

 

10,757

Total assets

$

2,113,284

 

$

1,175,136

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

43,373

 

$

27,244

Contract liabilities (customer deposits)

 

119,889

 

 

144,550

Accrued expenses

 

101,799

 

 

81,437

Short-term borrowings

 

341,212

 

 

113,461

Current maturities on long-term debt

 

32,449

 

 

3,587

Current operating lease liabilities

 

10,480

 

 

9,641

Total current liabilities

 

649,202

 

 

379,920

 

 

 

Long-term debt, net of current maturities

 

415,263

 

 

46,623

Noncurrent operating lease liabilities

 

121,045

 

 

94,913

Deferred tax liabilities, net

 

37,807

 

 

13,161

Other long-term liabilities

 

75,041

 

 

7,167

Total liabilities

 

1,298,358

 

 

541,784

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

Preferred stock

 

—

 

 

—

Common stock

 

29

 

 

29

Additional paid-in capital

 

308,480

 

 

291,814

Accumulated other comprehensive income

 

2,010

 

 

252

Retained earnings

 

650,357

 

 

468,621

Treasury stock

 

(148,656)

 

 

(127,364)

Total shareholders’ equity attributable to MarineMax, Inc.

 

812,220

 

 

633,352

Non-controlling interests

 

2,706

 

 

—

Total shareholders’ equity

 

814,926

 

 

633,352

Total liabilities and shareholders’ equity

$

2,113,284

 

$

1,175,136

MarineMax, Inc. and Subsidiaries Segment Financial Information (Amounts in thousands) (Unaudited)

 

 

Three Months Ended December 31,

 

2022

 

2021

 

 

 

 

Revenue:

 

 

 

Retail Operations

$

479,686

 

$

454,618

Product Manufacturing

 

56,326

 

 

34,244

Elimination of intersegment revenue

 

(28,085)

 

 

(16,171)

Revenue

$

507,927

 

$

472,691

 

 

 

 

Income from operations:

 

 

 

Retail Operations

$

36,728

 

$

45,123

Product Manufacturing

 

6,502

 

 

3,443

Elimination of intersegment income

 

(6,730)

 

 

(1,364)

Income from operations

$

36,500

 

$

47,202

MarineMax, Inc. and Subsidiaries Supplemental Financial Information (Amounts in thousands, except share and per share data) (Unaudited)

 

Three Months Ended December 31,

 

2022

 

2021

 

 

 

 

Net income attributable to MarineMax, Inc.

$

19,690

 

$

35,943

Acquisition costs (1)

 

6,036

 

 

501

Intangible amortization (2)

 

1,705

 

 

511

Change in fair value of contingent consideration (3)

 

1,047

 

 

110

Hurricane expenses

 

1,494

 

 

—

Tax adjustments for items noted above (4)

 

(2,704)

 

 

(256)

Adjusted net income attributable to MarineMax, Inc.

$

27,268

 

$

36,809

 

 

 

 

Diluted net income per common share

$

0.89

 

$

1.59

Acquisition costs (1)

 

0.27

 

 

0.02

Intangible amortization (2)

 

0.08

 

 

0.02

Change in fair value of contingent consideration (3)

 

0.05

 

 

—

Hurricane expenses

 

0.07

 

 

—

Tax adjustments for items noted above (4)

 

(0.12)

 

 

(0.01)

Adjusted diluted net income per common share

$

1.24

 

$

1.62

(1)

Acquisition costs relate to acquisition transaction 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 and the jurisdiction of the adjustment.

 

Three Months Ended December 31,

 

2022

 

2021

 

 

 

Net income attributable to MarineMax, Inc.

$

 

19,690

 

$

35,943

Interest expense (excluding floor plan)

 

6,366

 

 

316

Income tax provision

 

7,029

 

 

10,622

Depreciation and amortization

 

9,118

 

 

4,496

Stock-based compensation expense

 

4,845

 

 

3,263

Acquisition costs

 

6,036

 

 

501

Change in fair value of contingent consideration

 

1,047

 

 

110

Hurricane expenses

 

1,494

 

 

—

Foreign currency

 

(2,430)

 

 

72

Adjusted EBITDA

$

53,195

 

$

55,323

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 2023 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/20230125005806/en/

Investors: Mike McLamb Chief Financial Officer MarineMax, Inc. 727-531-1700 Scott Solomon or Laura Resag Sharon Merrill Associates, Inc. investors@marinemax.com Media: Katherine Cooper Director of Communications MarineMax, Inc. press@marinemax.com