MarineMax Reports Record Third Quarter Results

7/23/20

~Revenue Grew 30%; Approaches $500 Million~

~37% Same-Store Sales Growth~

~Earnings Per Share Grows 88% to $1.58~

~Nine-Months Thru June Revenue Exceeds $1.1 billion~

~Nine-Months Thru June Earnings Per Share Increases 77% to $2.23~

~Digital Investments Drive Record Lead Generation~

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, 2020.

Revenue grew approximately 30% to $498.3 million for the quarter ended June 30, 2020, from $383.5 million for the comparable quarter last year. The increase was driven by same-store sales growth of 37% which was on top of a 3% increase in the comparable period last year. Net income for the quarter ended June 30, 2020, grew over 83% to $34.9 million, compared to $19.1 million last year, while earnings per diluted share increased over 88% to $1.58, compared to $0.84 in the comparable quarter last year.

For the nine months ended June 30, 2020, revenue increased approximately 20% to $1.1 billion compared with $929.0 million for the same period last year. Same-store sales were up approximately 22%, on top of 5% growth for the comparable period last year. Net income for the nine months ended June 30, 2020, rose over 67% to $49.1 million, or $2.23 per diluted share, compared with $29.3 million, or $1.26 per diluted share for the comparable period last year.

W. Brett McGill, Chief Executive Officer and President stated, “Generating same-store sales growth of 37% driven by unit growth, clearly demonstrates the strength and flexibility of our business model and the MarineMax Team. Our team worked hard to overcome unprecedented uncertainty in the quarter, while generating record results, as we accomplished our goal of uniting our customers and their families on the water, safely. Our digital investments further enhanced our lead visibility and created significant efficiencies in our sales efforts, while increasing our on-line presence. Overall, we added new customers to boating and to our data base, adding a layer of future growth potential that should benefit us long-term.”

Mr. McGill continued, “With one of the strongest balance sheets in the industry, we remain well capitalized to make strategic accretive acquisitions to further enhance our geographic presence, to add to our marina strategy and to further grow our higher margin businesses. To that point, we were pleased to recently add super yacht powerhouse Northrop & Johnson. Together with Fraser Yachts, this unified combination provides us unrivaled global scale, while further diversifying MarineMax into higher margin, digitally focused businesses. Although the entire industry is lean on inventory due to the strong demand for the boating lifestyle, our deep manufacturer relationships, flexible inventory management and valuable real estate locations positions us well to continue to take share. I am proud of our ability to be nimble and disciplined, creating exceptional customer experiences while driving record results in our traditionally largest quarter.”

At June 30, 2020, the Company’s liquidity exceeded $180 million consisting of cash and cash equivalents along with availability under its credit facility, before considering its sizable unleveraged real estate portfolio.

As the COVID-19 pandemic is complex and evolving rapidly, the Company will continue to monitor ongoing developments and respond accordingly. The Company continues to comply with orders of local and state governments in all jurisdictions in which it operates to help ensure the safety of its team members and customers.

Fiscal 2020 Guidance

As previously disclosed, the Company withdrew its prior 2020 guidance given the continued significant uncertainties related to COVID-19.

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 currently has 59 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. MarineMax also owns Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies with operations in multiple countries. The Company also owns 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, 2020; the Company's capital position to make strategic accretive acquisitions; the Company's positioning to take customer share; and the COVID-19 pandemic and the Company's monitoring of it. 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 ability 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 impacts (direct and indirect) of COVID-19 on the Company’s business, the Company’s employees, the Company’s manufacturing partners, and the overall economy, 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, 2019 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,

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

Revenue

$

498,304

 

$

383,494

 

$

1,110,951

 

$

929,017

Cost of sales

 

374,851

 

 

285,784

 

 

828,704

 

 

693,627

Gross profit

 

123,453

 

 

97,710

 

 

282,247

 

 

235,390

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

74,838

 

 

68,968

 

 

208,284

 

 

187,436

Income from operations

 

48,615

 

 

28,742

 

 

73,963

 

 

47,954

 

 

 

 

 

 

 

 

Interest expense

 

2,133

 

 

2,936

 

 

8,490

 

 

8,485

Income before income tax provision

 

46,482

 

 

25,806

 

 

65,473

 

 

39,469

 

 

 

 

 

 

 

 

Income tax provision

 

11,555

 

 

6,719

 

 

16,422

 

 

10,169

Net income

$

34,927

 

$

19,087

 

$

49,051

 

$

29,300

 

 

 

 

 

 

 

 

Basic net income per common share

$

1.62

 

$

0.86

 

$

2.28

 

$

1.30

 

 

 

 

 

 

 

 

Diluted net income per common share

$

1.58

 

$

0.84

 

$

2.23

 

$

1.26

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

21,499,408

 

 

22,243,895

 

 

21,491,117

 

 

22,619,802

Diluted

 

22,045,900

 

 

22,821,202

 

 

21,965,355

 

 

23,212,983

 

 

 

 

 

 

 

 

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

 

June 30,
2020

 

June 30,
2019

ASSETS

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

86,919

 

 

$

71,618

 

Accounts receivable, net

 

69,478

 

 

 

49,104

 

Inventories, net

 

314,096

 

 

 

434,729

 

Prepaid expenses and other current assets

 

11,133

 

 

 

11,221

 

Total current assets

 

481,626

 

 

 

566,672

 

 

 

 

 

Property and equipment, net

 

141,897

 

 

 

143,318

 

Operating lease right-of-use assets, net

 

39,279

 

 

 

--

 

Goodwill and other intangible assets, net

 

65,404

 

 

 

38,607

 

Other long-term assets

 

7,754

 

 

 

6,810

 

Total assets

$

735,960

 

 

$

755,407

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

39,441

 

 

$

31,601

 

Customer deposits

 

30,106

 

 

 

24,262

 

Accrued expenses

 

47,775

 

 

 

37,359

 

Current operating lease liabilities

 

7,262

 

 

 

--

 

Short-term borrowings

 

147,049

 

 

 

289,842

 

Total current liabilities

 

271,633

 

 

 

383,064

 

 

 

 

 

Noncurrent operating lease liabilities

 

34,248

 

 

 

--

 

Deferred tax liabilities, net

 

4,221

 

 

 

1,284

 

Other long-term liabilities

 

833

 

 

 

1,273

 

Total liabilities

 

310,935

 

 

 

385,621

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

Preferred stock

 

--

 

 

 

--

 

Common stock

 

28

 

 

 

27

 

Additional paid-in capital

 

276,606

 

 

 

269,554

 

Accumulated other comprehensive loss

 

(130

)

 

 

--

 

Retained earnings

 

252,116

 

 

 

195,770

 

Treasury stock

 

(103,595

)

 

 

(95,565

)

Total stockholders’ equity

 

425,025

 

 

 

369,786

 

Total liabilities and stockholders’ equity

$

735,960

 

 

$

755,407

 

 

Michael H. McLamb
Chief Financial Officer
727-531-1700
Media:
Abbey Heimensen
MarineMax, Inc.
Investors:
Brad Cohen or Dawn Francfort
ICR, LLC
investorrelations@marinemax.com

Source: MarineMax, Inc.

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