~ Record December Quarter Revenue of $242 Million ~
~ December Quarter Pretax Earnings Reach Record Level ~
~ December Quarter Net Income Exceeds $4.9 Million ~
~ Reiterates Fiscal Year 2019 Guidance ~
CLEARWATER, Fla.--(BUSINESS WIRE)--
MarineMax, Inc. (NYSE:HZO), the nation’s largest recreational boat and
yacht retailer, today announced results for its first quarter ended
December 31, 2018.
Revenue grew over $5.0 million, or 2% to $241.9 for the quarter ended
December 31, 2018 from $236.9 million in the comparable period last
year. Same-store sales were up approximately 1%, in the quarter. This
caps a five-year period in which the December quarter has grown a
cumulative 82% in same-store sales growth. 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.
The Company, for the fifth consecutive year, produced a profitable
December quarter. Pretax earnings rose modestly to $6.5 million, which
exceeded the record pretax earnings level attained in the December
quarter last year. Included in the quarter ended December 31, 2017, 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 2017 Tax Cuts
and Jobs Act. For the quarter ended December 31, 2018, the Company
produced net income of $4.9 million and earnings per diluted share grew
over 10% to $0.21, compared to $0.19 in prior year quarter. Absent the
tax provision increase in the December quarter last year, the earnings
per diluted share would have been $0.23.
W. Brett McGill, Chief Executive Officer and President, stated, “Our
customer centric approach, combined with having the right products,
along with our team’s strong execution, contributed meaningfully to our
efforts to produce a record quarter of sustained cash flow and earnings
in our December quarter. We are pleased that our disciplined efforts
continue to result in improved gross margins with strong year-over-year
growth for the quarter. We outperformed relative to our historical
expectations for our December quarter as our mix of sales in the quarter
was fairly balanced across all segments, with an edge toward larger
product.”
Mr. McGill continued, “We ended the quarter well-positioned in terms of
inventory, along with considerable balance sheet strength and liquidity.
This positions us well for the upcoming selling season and allows us to
take advantage of opportunities as they arise. With positive energy and
sales coming from the early boat shows, we remain confident entering
this important part of the year while working to build additional
long-term value for our shareholders.”
2019 Guidance
Based on current business conditions, retail trends and other factors,
the Company is reiterating its previously issued expectations for fully
taxed earnings per diluted share to be in the range of $1.85 to $1.95
for fiscal 2019. This compares to a non-GAAP adjusted, but fully taxed,
diluted earnings per share of $1.70 in fiscal 2018. These expectations
do not take into account, or give effect for, material acquisitions that
may be completed by the Company during fiscal 2019 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, Hatteras, Azimut Yachts, Ocean Alexander,
Galeon, Grady-White, Harris, Bennington, Crest, MasterCraft, NauticStar,
Scout, Sailfish, Sea Pro, Sportsman, Scarab Jet Boats, Tige, 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 first quarter ended December 31, 2018; the Company’s
positioning for the upcoming selling season; and the Company’s
confidence and ability to build additional long-term value. 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, 2018 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
December 31,
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
241,937
|
|
$
|
236,921
|
Cost of sales
|
|
|
|
178,459
|
|
|
177,672
|
Gross profit
|
|
|
|
63,478
|
|
|
59,249
|
|
|
|
|
|
|
Selling, general, and administrative expenses
|
|
|
|
54,492
|
|
|
50,246
|
Income from operations
|
|
|
|
8,986
|
|
|
9,003
|
|
|
|
|
|
|
Interest expense
|
|
|
|
2,516
|
|
|
2,542
|
Income before income tax provision
|
|
|
|
6,470
|
|
|
6,461
|
|
|
|
|
|
|
Income tax provision
|
|
|
|
1,560
|
|
|
2,249
|
Net income
|
|
|
$
|
4,910
|
|
$
|
4,212
|
|
|
|
|
|
|
Basic net income per common share
|
|
|
$
|
0.22
|
|
$
|
0.19
|
|
|
|
|
|
|
Diluted net income per common share
|
|
|
$
|
0.21
|
|
$
|
0.19
|
|
|
|
|
|
|
Weighted average number of common shares used in computing net
income per common share:
|
|
|
|
|
|
Basic
|
|
|
|
22,779,567
|
|
|
21,986,981
|
Diluted
|
|
|
|
23,400,685
|
|
|
22,712,648
|
|
|
|
|
|
|
|
|
|
MarineMax, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
(Amounts in thousands) (Unaudited)
|
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
ASSETS
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
38,581
|
|
|
$
|
35,566
|
|
Accounts receivable, net
|
|
|
|
25,711
|
|
|
|
28,726
|
|
Inventories, net
|
|
|
|
445,465
|
|
|
|
440,720
|
|
Prepaid expenses and other current assets
|
|
|
|
10,904
|
|
|
|
6,615
|
|
Total current assets
|
|
|
|
520,661
|
|
|
|
511,627
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
138,730
|
|
|
|
127,407
|
|
Other long-term assets, net
|
|
|
|
33,715
|
|
|
|
30,404
|
|
Deferred tax assets, net
|
|
|
|
2,588
|
|
|
|
7,471
|
|
Total assets
|
|
|
$
|
695,694
|
|
|
$
|
676,909
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
11,840
|
|
|
$
|
10,366
|
|
Customer deposits
|
|
|
|
21,071
|
|
|
|
19,622
|
|
Accrued expenses
|
|
|
|
29,790
|
|
|
|
26,940
|
|
Short-term borrowings
|
|
|
|
270,715
|
|
|
|
307,739
|
|
Total current liabilities
|
|
|
|
333,416
|
|
|
|
364,667
|
|
|
|
|
|
|
|
Long-term liabilities
|
|
|
|
840
|
|
|
|
2,786
|
|
Total liabilities
|
|
|
|
334,256
|
|
|
|
367,453
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
Preferred stock
|
|
|
|
--
|
|
|
|
--
|
|
Common stock
|
|
|
|
27
|
|
|
|
27
|
|
Additional paid-in capital
|
|
|
|
265,516
|
|
|
|
253,714
|
|
Retained earnings
|
|
|
|
171,380
|
|
|
|
130,971
|
|
Treasury stock
|
|
|
|
(75,485
|
)
|
|
|
(75,256
|
)
|
Total stockholders’ equity
|
|
|
|
361,438
|
|
|
|
309,456
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
695,694
|
|
|
$
|
676,909
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190123005121/en/
Michael H. McLamb
Chief Financial Officer
Abbey Heimensen
Public
Relations
MarineMax, Inc.
727.531.1700
Brad Cohen
ICR,
LLC.
203.682.8211
bcohen@icrinc.com
Source: MarineMax, Inc.