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MarineMax Reports Fiscal 2024 First Quarter Results

~ 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 ~

CLEARWATER, Fla.–(BUSINESS WIRE)–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.

Contacts

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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