MarineMax Reports Third Quarter Fiscal 2019 Results

7/25/19

~ Quarterly Revenue Grew Over 6% to $383 Million ~

~ 3% Quarterly Same-Store Sales Growth ~

~ Diluted Earnings Per Share Grows to $0.84 ~

~ Updates Annual Guidance Range for Fiscal 2019 ~

CLEARWATER, Fla.--(BUSINESS WIRE)-- MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat and yacht retailer, today announced results for its third quarter ended June 30, 2019.

Revenue increased greater than 6% to $383.5 million for the quarter ended June 30, 2019, compared with $361.3 million for the June quarter last year, as same-store sales grew 3% on top of 8% growth for the comparable period last year. Included in the quarter ended June 30, 2018, was approximately $1.2 million before taxes, or $0.04 per diluted share, of non-recurring unusual costs. Excluding the non-recurring unusual costs in the comparable period last year, net income for the quarter ended June 30, 2019, grew 4.5% to $19.1 million, compared to $18.3 million last year, while earnings per diluted share grew approximately 6.3% to $0.84, compared to $0.79 for the comparable quarter last year.

Revenue grew approximately 7% to $929.0 million for the nine months ended June 30, 2019, compared with $868.8 million for the same period last year. Same-store sales were up approximately 5%, on top of 6% growth for the comparable period last year. Net income for the nine months ended June 30, 2019, rose approximately 5.5% to $29.3 million, or $1.26 per diluted share, compared with $27.8 million, or $1.21 per diluted share for the comparable period last year. Included in the nine-months ended June 30, 2018, was approximately $1.2 million of non-recurring unusual costs before taxes or $0.04 per diluted share.

W. Brett McGill, Chief Executive Officer and President stated, “Producing same-store sales growth of 3% driven by even greater unit growth, MarineMax outperformed during a challenging quarter for the industry. Our team worked to overcome uncertainty in the quarter, which is evident in recent industry data, and delivered growth through incremental investments in marketing. We are proud to have stayed disciplined and delivered a combination of market share and margin gains in our traditionally largest quarter. With one of the strongest balance sheets in the industry, we remain well-positioned to capitalize on additional opportunities to enhance our growth. This was evidenced by our recent accretive acquisition of Fraser Yachts, the premier superyacht brokerage and largest luxury yacht services company in the world. We are extremely excited about adding the Fraser team and believe the global expansion will bring incremental opportunities to create additional value.”

McGill continued, “The mix and aging of our inventory, should position us well as we head into the remainder of the summer selling season. Additionally, strategic adjustments to future orders will also align the level of inventory with anticipated industry demand. While we cannot control the external challenges our industry has faced, we will continue our efforts to efficiently operate the business, drive earnings and further strengthen our dominant position in the industry.”

2019 Guidance

Based on current business conditions, retail trends, the Company’s most recent results and other factors, the Company is updating its annual fiscal 2019 expectations for fully taxed earnings per diluted share to range from $1.60 to $1.70, compared to its previous range of $1.75 to $1.85. These expectations do not take into account or consider 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, Hatteras, Azimut Yachts, Benetti, Ocean Alexander, Galeon, Grady-White, Harris, Bennington, Crest, MasterCraft, MJM Yachts, NauticStar, Scout, Sailfish, Scarab Jet Boats, Tige, Yamaha Jet Boats, Aquila, Aviara, 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 also owns Fraser Yachts Group, a leading superyacht brokerage and luxury yacht services company with operations in multiple countries. MarineMax currently has 67 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 third quarter ended June 30, 2019; the Company’s positioning to capitalize on opportunities to enhance its growth and as it heads into the remainder of the summer selling season; the global opportunity presented by the Fraser acquisition to bring incremental avenues to create additional value; the Company’s strategic adjustments to future orders to align the level of inventory with anticipated industry demand; the Company’s efforts to align the business, drive earnings and further strengthen its dominant position in the industry; and the Company's fiscal 2019 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 the Company's 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
June 30,

 

Nine Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

Revenue

$

383,494

 

$

361,254

 

$

929,017

 

$

868,780

Cost of sales

 

285,784

 

 

270,567

 

 

693,627

 

 

649,551

Gross profit

 

97,710

 

 

90,687

 

 

235,390

 

 

219,229

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

68,968

 

 

64,089

 

 

187,436

 

 

172,994

Income from operations

 

28,742

 

 

26,598

 

 

47,954

 

 

46,235

 

 

 

 

 

 

 

 

Interest expense

 

2,936

 

 

2,499

 

 

8,485

 

 

7,881

Income before income tax provision

 

25,806

 

 

24,099

 

 

39,469

 

 

38,354

 

 

 

 

 

 

 

 

Income tax provision

 

6,719

 

 

6,723

 

 

10,169

 

 

10,582

Net income

$

19,087

 

$

17,376

 

$

29,300

 

$

27,772

 

 

 

 

 

 

 

 

Basic net income per common share

$

0.86

 

$

0.78

 

$

1.30

 

$

1.25

 

 

 

 

 

 

 

 

Diluted net income per common share

$

0.84

 

$

0.75

 

$

1.26

 

$

1.21

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

22,243,895

 

 

22,399,079

 

 

22,619,802

 

 

22,185,736

Diluted

 

22,821,202

 

 

23,182,546

 

 

23,212,983

 

 

22,944,581

 

 

 

 

 

 

 

 

 
 

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

   

June 30,
2019

 

June 30,
2018

ASSETS

CURRENT ASSETS:

   

 

 

 

Cash and cash equivalents

   

$

71,618

 

 

$

62,108

 

Accounts receivable, net

   

 

49,104

 

 

 

42,683

 

Inventories, net

   

 

434,729

 

 

 

379,425

 

Prepaid expenses and other current assets

   

 

11,221

 

 

 

6,001

 

Total current assets

   

 

566,672

 

 

 

490,217

 

   

 

 

 

Property and equipment, net

   

 

143,318

 

 

 

130,684

 

Goodwill and other long-term assets, net

   

 

45,417

 

 

 

31,916

 

Deferred tax assets, net

   

 

 

3,095

 

Total assets

   

$

755,407

 

 

$

655,912

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

   

 

 

 

Accounts payable

   

$

31,601

 

 

$

20,773

 

Customer deposits

   

 

24,262

 

 

 

22,865

 

Accrued expenses

   

 

37,359

 

 

 

35,391

 

Short-term borrowings

   

 

289,842

 

 

 

232,764

 

Total current liabilities

   

 

383,064

 

 

 

311,793

 

   

 

 

 

Deferred tax liabilities

   

 

1,284

 

 

Long-term liabilities

   

 

1,273

 

 

 

2,497

 

Total liabilities

   

 

385,621

 

 

 

314,290

 

   

 

 

 

STOCKHOLDERS' EQUITY:

   

 

 

 

Preferred stock

   

 

Common stock

   

 

27

 

 

 

27

 

Additional paid-in capital

   

 

269,554

 

 

 

262,320

 

Retained earnings

   

 

195,770

 

 

 

154,531

 

Treasury stock

   

 

(95,565

)

 

 

(75,256

)

Total stockholders’ equity

   

 

369,786

 

 

 

341,622

 

Total liabilities and stockholders’ equity

   

$

755,407

 

 

$

655,912

 

 

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.

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