MarineMax Reports Second Quarter Fiscal 2018 Results

4/26/18

~Quarterly Revenue Grew Over 10% to $271 Million~

~8% Quarterly Same-Store Sales Growth~

~Over 84% Quarterly Pretax Earnings Improvement~

~Quarterly Earnings Per Diluted Share More than Doubles to $0.27~

~Raises Annual Fiscal 2018 Guidance~

CLEARWATER, Fla.--(BUSINESS WIRE)-- MarineMax, Inc. (NYSE:HZO), the nation’s largest recreational boat and yacht retailer, today announced results for its second quarter ended March 31, 2018.

Revenue grew over 10% to $270.6 million for the quarter ended March 31, 2018 from $245.0 million for the comparable quarter last year. Same-store sales increased 8% on top of 13% in the comparable period last year. Income before taxes increased over 84% to $7.8 million for the quarter ended March 31, 2018 from $4.2 million for the same quarter last year. Net income rose 125% to $6.2 million, or $0.27 per diluted share, for the quarter ended March 31, 2018 compared to net income of $2.7 million, or $0.11 per diluted share, for the comparable quarter last year. Net income in the quarter ended March 31, 2018 benefitted from certain tax credits that represented approximately $380,000, or $0.02 per diluted share.

Revenue increased approximately 8% to $507.5 million for the six months ended March 31, 2018 compared with $471.9 million for the comparable period last year. Same-store sales grew approximately 4% on top of 20% growth for the comparable period last year. Income before taxes increased approximately 64% to $14.3 million for the six-months ended March 31, 2018 from $8.7 million for the same period last year. Net income for the six months ended March 31, 2018 rose 93% to $10.4 million, or $0.46 per diluted share, compared with net income of $5.4 million, or $0.22 per share, for the comparable period last year. Net income in the first half of 2018 benefitted from certain tax credits that represented approximately $380,000, or $0.02 per diluted share.

William H. McGill, Jr., Chairman and Chief Executive Officer stated, “A combination of strong unit growth and constant focus on our higher margin businesses enabled our team to drive meaningful year-over-year gross margin and earnings per share improvement. As our industry continues to recover, the environment for capturing additional product margins remains encouraging. Our 8% same-store sales growth was driven by increased traffic at boat shows, online and in our stores, as demand was aided by strong consumer confidence. Our team executed well by controlling costs in the quarter, which allowed for strong flow-through, despite an unusual increase in health insurance claims in the quarter.”

Mr. McGill continued, “New, innovative models from our manufacturing partners are continuing to be well received and are helping to drive demand from existing boaters as well as those new to boating, as evidenced by our growing backlog. MarineMax remains well positioned to build on its industry leading share position as we enter the height of the boating season. Through continuing to deliver our customers the highest level of service, providing a broad array of new products and working to ensure that each boating experience is maximized, MarineMax will remain the retailer of choice for years to come.”

2018 Guidance

Based on current business conditions, retail trends, it’s most recent results and other factors, the Company is again raising its annual fiscal 2018 expectations for fully taxed earnings per diluted share to range from $1.44 to $1.50 versus prior expectations ranging from $1.30 to $1.40. 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, 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 63 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 second quarter ended March 31, 2018; the environment for capturing additional product margins; the reception of new models from the Company’s manufacturing partners; the Company’s positioning to build on its status in the industry; and the Company's fiscal 2018 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, 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 Ended
March 31,
Six Months Ended
March 31,
2018   2017 2018   2017
 
Revenue $ 270,605 $ 245,018 $ 507,526 $ 471,893
Cost of sales   201,312   183,959   378,984   357,696
Gross profit 69,293 61,059 128,542 114,197
 
Selling, general, and administrative expenses   58,659   54,781   108,905   101,876
Income from operations 10,634 6,278 19,637 12,321
 
Interest expense   2,840   2,045   5,382   3,614
Income before income tax provision 7,794 4,233 14,255 8,707
 
Income tax provision   1,610   1,484   3,859   3,315
Net income $ 6,184 $ 2,749 $ 10,396 $ 5,392
 
Basic net income per common share $ 0.28 $ 0.11 $ 0.47 $ 0.22
 
Diluted net income per common share $ 0.27 $ 0.11 $ 0.46 $ 0.22
 
Weighted average number of common shares used in computing net income per common share:
 
Basic   22,173,194   24,293,764   22,079,065   24,271,880
Diluted   22,940,594   25,116,359   22,825,598   25,019,870
 
 

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

         
March 31,
2018
March 31,
2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 57,103 $ 51,670
Accounts receivable, net 35,844 36,941
Inventories, net 423,907 404,686
Prepaid expenses and other current assets   5,093     5,041  
Total current assets 521,947 498,338
 
Property and equipment, net 129,878 126,615
Goodwill and other long-term assets, net 31,805 29,541
Deferred tax assets, net   6,524     18,635  
Total assets $ 690,154   $ 673,129  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 17,914 $ 24,927
Customer deposits 19,972 25,896
Accrued expenses 31,137 30,960
Short-term borrowings   299,157     265,920  
Total current liabilities 368,180 347,703
 
Long-term liabilities   3,037     4,635  
Total liabilities 371,217 352,338
 
STOCKHOLDERS' EQUITY:
Preferred stock
Common stock 27 26
Additional paid-in capital 257,011 246,326
Retained earnings 137,155 108,604
Treasury stock   (75,256 )   (34,165 )
Total stockholders’ equity   318,937     320,791  
Total liabilities and stockholders’ equity $ 690,154   $ 673,129  
 

Source: MarineMax, Inc.

MarineMax, Inc.

Michael H. McLamb, 727-531-1700

Chief Financial Officer

or

Abbey Heimensen, 727-531-1700

Public Relations

or

ICR, LLC

Brad Cohen, 203-682-8211

bcohen@icrinc.com

View all Press Releases