~ Posts June Quarter Revenue of $757.7 Million,
Up 5% Year-over-Year ~
~ Gross Margin of 32.0% Highlights Successful
Strategy of Expansion into Higher-Margin Businesses ~
~ Reports Comparable Same-Store Sales Growth of
4% ~
~ Reaffirms Fiscal 2024 Financial Guidance
~
~ Hosts Earnings Conference Call at 10:00 a.m.
ET Today ~
MarineMax, Inc. (NYSE: HZO) (“MarineMax” or the “Company”), the
world’s largest recreational boat, yacht and superyacht services
company, today announced results for its fiscal 2024 third quarter
ended June 30, 2024.
Fiscal 2024 Third Quarter Summary
- June quarter revenue of $757.7 million
- Same-store sales increase of 4%
- Gross profit margin of 32.0%
- Net income of $31.6 million, or diluted EPS of $1.37; Adjusted
diluted EPS1 of $1.51
- Adjusted EBITDA1 of $70.4 million
CEO & President Commentary
“Despite persistent retail headwinds in the third quarter, our
team executed well, delivering 5% top-line growth,” stated Chief
Executive Officer and President Brett McGill. “Our solid
third-quarter performance in this challenging operating environment
underscores the importance of our value-creation strategy, which
focuses on expanding our high-margin, less cyclical revenue
streams. This strategic expansion, encompassing marinas, superyacht
services, and other offerings, has strengthened our gross margin
profile—now consistently exceeding 30%—and enhanced our cash flow
generation and balance sheet resilience. These improvements come at
a crucial time, as macroeconomic softness weighs on retail boat
margins industry-wide. By strategically realigning our business,
we’ve better positioned ourselves to weather market fluctuations
and capitalize on emerging opportunities across our diverse
portfolio.
“The recent formation of our new SuperYacht Division (SYD)
exemplifies our strategy to generate increasing operating and
commercial synergies across our portfolio,” McGill said. “The SYD
integrates the operations of Fraser Yachts, Northrop & Johnson,
Fairport Yacht Management, SuperYacht Management and Atalanta
Golden Yachts (AGY), streamlining the back-office functions of
these businesses into a unified entity. Our expansion into
superyacht services began many years ago as our existing Azimut,
Galeon, and Ocean Alexander customers, and others from our retail
dealership operations, migrated to increasingly larger yachts. The
complexity of these vessels demanded specialized services, which
our SYD companies are exceptionally well-positioned to provide.
“As part of our long-term operational improvement plan, we
initiated strategic cost-cutting actions to better align our
expense structure with the current operating environment and
improve operating leverage,” McGill said. “During the fourth
quarter and into fiscal 2025, we expect to see increasing cost
savings from these initiatives, which will further improve our cash
flows.”
Fiscal 2024 Third Quarter Results
Revenue in the fiscal 2024 third quarter increased 5% to $757.7
million from $721.8 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 4%, reflecting
higher new and used boat revenue as well as other areas of the
Company’s Retail Operations segment, which includes marina, parts,
finance and insurance, Super Yachts Group and Charter.
Gross profit decreased 1.0% to $242.1 million from $243.8
million in the prior-year period. Gross profit margin of 32.0%
decreased 180 basis points from 33.8% in the comparable period last
year, reflecting a higher level of promotional activity to drive
boat sales in the face of challenging retail operating
conditions.
Selling, general, and administrative (SG&A) expenses totaled
$181.1 million, or 23.9% of revenue, in the third quarter, compared
with $169.2 million, or 23.4% of revenue, for the comparable period
last year. Excluding transaction and other costs, intangible
amortization, changes in contingent consideration, weather events,
and restructuring expense in the 2024 and 2023 period, Adjusted
SG&A2 increased $10.3 million, or 6.2%, from the same period in
fiscal 2023. This increase partly reflected restructuring expenses
and new locations such as AGY, C&C Boat Works and Williams Jet
Tenders, which were added since the beginning of the fiscal 2023
third quarter.
Interest expense was $18.2 million, or 2.4% of revenue in the
third quarter, compared with $14.8 million, or 2.1% of revenue in
the prior-year period, reflecting higher interest rates and
increased inventory compared with the third quarter of fiscal
2023.
Net income in the third quarter was $31.6 million, or $1.37 per
diluted share, compared with net income of $44.4 million, or $1.98
per diluted share, in the same period last year. Adjusted net
income1 in the third quarter was $34.8 million, or $1.51 per
diluted share, compared with $46.5 million, or $2.07 per diluted
share, in the prior-year period. Adjusted EBITDA1 for the quarter
ended June 30, 2024, was $70.4 million, compared with $83.5 million
for the comparable period last year.
Fiscal 2024 Guidance
Based on results to date, current business conditions, retail
trends and other factors, the Company reaffirms its fiscal year
2024 Adjusted net income1,3 guidance range of $2.20 to $3.20 per
diluted share. The Company also reaffirms its fiscal year 2024
Adjusted EBITDA1,3 guidance 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 third 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 844-825-9789
(U.S. and Canada) or 412-317-5180 (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 125
locations worldwide, including over 75 dealerships and 65 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 Company’s
value-creation strategy, the Company’s positioning with respect to
market fluctuations and emerging opportunities, the expected
annualized cost savings of the Company’s cost-cutting initiatives,
anticipated operating efficiency resulting from the formation of
the SuperYacht Division, and the Company’s 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.
MarineMax, Inc. and
Subsidiaries
Condensed Consolidated
Statements of Operations
(Amounts in thousands, except
share and per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
2024
2023
2024
2023
Revenue
$
757,720
$
721,844
$
1,867,886
$
1,800,111
Cost of sales
515,621
478,036
1,259,885
1,168,497
Gross profit
242,099
243,808
608,001
631,614
Selling, general, and administrative
expenses
181,072
169,227
506,574
465,128
Income from operations
61,027
74,581
101,427
166,486
Interest expense
18,229
14,798
55,968
37,562
Income before income tax provision
42,798
59,783
45,459
128,924
Income tax provision
11,085
15,455
11,452
34,685
Net income
31,713
44,328
34,007
94,239
Less: Net income (loss) attributable to
non-controlling interests
163
(88
)
(60
)
98
Net income attributable to MarineMax,
Inc.
$
31,550
$
44,416
$
34,067
$
94,141
Basic net income per common share
$
1.42
$
2.03
$
1.53
$
4.31
Diluted net income per common share
$
1.37
$
1.98
$
1.48
$
4.22
Weighted average number of common shares
used in computing net income per common share:
Basic
22,268,758
21,885,400
22,254,619
21,831,350
Diluted
23,049,097
22,427,443
22,952,234
22,321,269
MarineMax, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(Amounts in thousands)
(Unaudited)
June 30,
June 30,
2024
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
242,424
$
226,134
Accounts receivable, net
105,258
95,018
Inventories
880,419
739,114
Prepaid expenses and other current
assets
33,101
24,881
Total current assets
1,261,202
1,085,147
Property and equipment, net
533,943
521,637
Operating lease right-of-use assets,
net
138,600
135,452
Goodwill
589,949
562,277
Other intangible assets, net
38,380
40,968
Other long-term assets
31,591
34,814
Total assets
$
2,593,665
$
2,380,295
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
45,578
$
47,202
Contract liabilities (customer
deposits)
66,791
97,785
Accrued expenses
196,987
118,576
Short-term borrowings
701,185
514,023
Current maturities on long-term debt
33,766
32,409
Current operating lease liabilities
10,135
9,967
Total current liabilities
1,054,442
819,962
Long-term debt, net of current
maturities
364,138
399,229
Noncurrent operating lease liabilities
125,343
119,759
Deferred tax liabilities, net
59,210
54,449
Other long-term liabilities
13,598
84,539
Total liabilities
1,616,731
1,477,938
SHAREHOLDERS' EQUITY:
Preferred stock
—
—
Common stock
30
29
Additional paid-in capital
342,218
320,383
Accumulated other comprehensive income
2,084
3,245
Retained earnings
774,016
724,808
Treasury stock
(150,797
)
(148,656
)
Total shareholders’ equity attributable to
MarineMax, Inc.
967,551
899,809
Non-controlling interests
9,383
2,548
Total shareholders’ equity
976,934
902,357
Total liabilities and shareholders’
equity
$
2,593,665
$
2,380,295
MarineMax, Inc. and
Subsidiaries
Segment Financial
Information
(Amounts in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
2024
2023
2024
2023
Revenue:
Retail Operations
$
752,171
$
709,307
$
1,855,433
$
1,770,565
Product Manufacturing
38,062
51,884
124,372
164,959
Elimination of intersegment revenue
(32,513
)
(39,347
)
(111,919
)
(135,413
)
Revenue
$
757,720
$
721,844
$
1,867,886
$
1,800,111
Income from operations:
Retail Operations
$
58,733
$
68,050
$
94,204
$
158,514
Product Manufacturing
(548
)
5,089
2,508
17,834
Intersegment adjustments
2,842
1,442
4,715
(9,862
)
Income from operations
$
61,027
$
74,581
$
101,427
$
166,486
MarineMax, Inc. and
Subsidiaries
Supplemental Financial
Information
(Amounts in thousands, except
share and per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
2024
2023
2024
2023
Net income attributable to MarineMax,
Inc.
$
31,550
$
44,416
$
34,067
$
94,141
Transaction and other costs (1)
1,127
111
4,352
6,227
Intangible amortization (2)
1,428
1,925
4,592
5,524
Change in fair value of contingent
consideration (3)
1,225
1,211
2,392
3,441
Weather (recoveries) expenses
(556
)
(452
)
142
(644
)
Gain on acquisition of equity investment
(4)
—
—
—
(5,129
)
Restructuring expense (5)
1,110
—
1,110
—
Tax adjustments for items noted above
(6)
(1,123
)
(724
)
(3,172
)
(2,534
)
Adjusted net income attributable to
MarineMax, Inc.
$
34,761
$
46,487
$
43,483
$
101,026
Diluted net income per common share
$
1.37
$
1.98
$
1.48
$
4.22
Transaction and other costs (1)
0.05
—
0.19
0.28
Intangible amortization (2)
0.06
0.09
0.20
0.25
Change in fair value of contingent
consideration (3)
0.05
0.05
0.10
0.15
Weather (recoveries) expenses
(0.02
)
(0.02
)
0.01
(0.03
)
Gain on acquisition of equity investment
(4)
—
—
—
(0.23
)
Restructuring expense (5)
0.05
—
0.05
—
Tax adjustments for items noted above
(6)
(0.05
)
(0.03
)
(0.14
)
(0.11
)
Adjusted diluted net income per common
share
$
1.51
$
2.07
$
1.89
$
4.53
(1) Transaction and other costs relate to
acquisition transaction, integration, and other 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) Represents expenses incurred as a
result of restructuring and store closings.
(6) Adjustments for taxes for items are
calculated based on the effective tax rate for each respective
period presented.
Three Months Ended
Nine Months Ended
June 30,
June 30,
2024
2023
2024
2023
Net income attributable to MarineMax,
Inc.
$
31,550
$
44,416
$
34,067
$
94,141
Interest expense (excluding floor
plan)
7,508
7,485
22,786
20,669
Income tax provision
11,085
15,455
11,452
34,685
Depreciation and amortization
11,192
9,419
33,087
27,391
Stock-based compensation expense
6,080
5,490
17,483
15,703
Transaction and other costs
1,127
111
4,352
6,227
Gain on acquisition of equity
investment
—
—
—
(5,129
)
Change in fair value of contingent
consideration
1,225
1,211
2,392
3,441
Restructuring expense
1,110
—
1,110
—
Weather (recoveries) expenses
(556
)
(452
)
142
(644
)
Foreign currency
73
352
(235
)
(2,451
)
Adjusted EBITDA
$
70,394
$
83,487
$
126,636
$
194,033
Non-GAAP Financial Measures
This press release, along with the above Supplemental Financial
Information table, contains “Adjusted net income”, “Adjusted
diluted EPS”, “Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization” (“Adjusted EBITDA”) and “Adjusted
SG&A”, 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, acquisition costs,
and other 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.
______________________________
1 This is a non-GAAP measure. See below
for an explanation and quantitative reconciliation of each non-GAAP
financial measure.
2 This is a non-GAAP measure. Adjusted
SG&A represents SG&A adjusted for transaction and other
costs, intangible amortization, change in fair value of contingent
consideration, weather events, and restructuring expense. See below
in the Adjusted diluted EPS table for the excluded amounts for both
periods.
3 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725149340/en/
Mike McLamb Chief Financial Officer 727-531-1700
Scott Solomon Sharon Merrill Advisors 857-383-2409
HZO@investorrelations.com
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