MarineMax Reports Record Fiscal 2021 First Quarter Results

1/28/21

~Record December Quarter Revenue Grows 35% to over $411 Million~

~Same-Store Sales Growth Exceeds 20% Driven By 35% Comparable New Unit Growth~

~Gross Margin Expands to a Record 30% in the Quarter~

~Record December Quarter Net Income Increases to $23.6 Million~

~Diluted EPS More Than Doubles to $1.04~

~Raises Fiscal Year 2021 Guidance~

CLEARWATER, Fla.--(BUSINESS WIRE)-- MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat and yacht retailer, today announced results for its first quarter ended December 31, 2020.

Revenue increased 35%, or over $107 million, to $411.5 million for the quarter ended December 31, 2020 from $304.2 million in the comparable period last year. Same-store sales grew over 20% in the quarter, driven by even greater growth in comparable new units sold of over 35%. The 20% same-store sales growth was on top of 24% growth in the comparable quarter last year, as demand for boating remains strong relative to prior years. Given the Company’s significant geographic and product diversification growth over the past several years, along with increased demand, net income and earnings per diluted share more than doubled to $23.6 million and $1.04, respectively. This compares to net income of $9.1 million and earnings per diluted share of $0.41 in the comparable period last year.

W. Brett McGill, Chief Executive Officer and President, stated, “We delivered record sales and earnings growth in the quarter on top of very strong performance a year ago as we continue to outperform by effectively executing on our balanced growth strategy. We grew market share as we drove 20% same-store-sales growth that was fueled by greater overall unit growth. Our entire team contributed to these impressive results, supported by our global market presence, premium brands, exceptional customer service and ongoing investments in technology. The meaningful margin expansion in the quarter was bolstered by growth in product margins, storage and service, Fraser Yachts and Northrop & Johnson, our global super yacht services businesses and our finance and insurance businesses. Our focus on driving margins and improving our cost structure continues to produce significant leverage in our operating model.”

Mr. McGill continued, “Our ongoing accretive acquisitions are all successfully integrated and contributing to our performance. We will continue to pursue complementary opportunities with a disciplined approach to expand our business as we remain committed to creating long-term value for our shareholders. Furthermore, we are realizing meaningful benefit from the foundational shift of new customers embracing and enjoying the boating lifestyle. This shift positions us to build on our growth for years to come, as many existing and new customers should upgrade to larger boats and take advantage of our multitude of product and service offerings. With the largest selling season ahead, we expect to build on the strong start to our fiscal year.”

At December 31, 2020, the Company’s financial capacity, consisting of cash and cash equivalents, along with available borrowings under its credit facilities, exceeded $254 million.

2021 Guidance

Based on current business conditions, retail trends and other factors, the Company is raising its fiscal year 2021 guidance for earnings per diluted share to be in the range of $4.00 to $4.20, which is increased from its previously provided guidance of $3.70 to $3.90 per diluted share. This compares to a non-GAAP adjusted, but fully taxed, earnings per diluted share of $3.42 in fiscal 2020. (Please see the Company’s fiscal 2020 earnings release dated October 28, 2020 for a reconciliation of this non-GAAP figure to the applicable GAAP figure) These expectations do not consider, or give effect for, material acquisitions that may be completed by the Company during fiscal 2021 or other unforeseen events, including changes in global economic conditions.

About MarineMax

MarineMax is the world’s largest recreational boat and yacht retailer, selling new and used recreational boats, yachts and related marine products and services, as well as providing yacht brokerage and charter services. MarineMax has over 100 locations worldwide, including 77 retail dealership locations, including 30 marinas or storage operations. Through Fraser Yachts and Northrop and Johnson, it is also the largest super-yacht services provider, operating 27 locations across the globe. MarineMax provides finance and insurance services through wholly owned subsidiaries and operates MarineMax Vacations in Tortola, British Virgin Islands. The Company also operates Boatyard, a pioneering digital platform that enhances the boating experience. MarineMax is a New York Stock Exchange-listed company (NYSE:HZO). 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 fourth quarter and the fiscal year ended December 31, 2020; the Company's pursuit of complementary acquisitions and its approach in doing so; the foundational shift of new customers embracing and enjoying the boating lifestyle; the Company's positioning to build on its growth for years to come; existing and new customers of the Company upgrading to larger boats and taking advantage of the Company's product and services offerings; the Company's expectation to build on the strong start to its fiscal year; and the Company's fiscal 2021 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 of the recently-acquired businesses, 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, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2020 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,

 

 

 

 

 

2020

 

2019

 

 

 

 

Revenue

$

411,524

 

$304,172

Cost of sales

 

288,123

 

224,154

Gross profit

 

123,401

 

80,018

 

 

 

 

Selling, general, and administrative expenses

 

91,417

 

64,386

Income from operations

 

31,984

 

15,632

 

 

 

 

Interest expense

 

1,268

 

3,344

Income before income tax provision

 

30,716

 

12,288

 

 

 

 

Income tax provision

 

7,116

 

3,229

Net income

$

23,600

 

$9,059

 

 

 

 

Basic net income per common share

$

1.07

 

$0.42

 

 

 

 

Diluted net income per common share

$

1.04

 

$0.41

 

 

 

 

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

 

 

 

Basic

 

22,025,898

 

21,453,914

Diluted

 

22,745,125

 

21,890,065

 

MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)

 

 

December 31,
2020

 

December 31,
2019

ASSETS

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

120,939

 

 

$

35,985

 

Accounts receivable, net

 

44,001

 

 

 

36,118

 

Inventories, net

 

378,863

 

 

 

493,943

 

Prepaid expenses and other current assets

 

14,583

 

 

 

11,009

 

Total current assets

 

558,386

 

 

 

577,055

 

 

 

 

 

Property and equipment, net

 

149,657

 

 

 

144,756

 

Operating lease right-of-use assets, net

 

105,633

 

 

 

41,335

 

Goodwill and other intangible assets, net

 

143,114

 

 

 

64,479

 

Other long-term assets

 

8,098

 

 

 

7,781

 

Total assets

$

964,888

 

 

$

835,406

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

22,379

 

 

$

18,159

 

Contract liabilities (customer deposits)

 

55,389

 

 

 

20,198

 

Accrued expenses

 

67,457

 

 

 

35,436

 

Short-term borrowings

 

163,394

 

 

 

334,085

 

Current maturities on long-term debt

 

2,704

 

 

 

--

 

Current operating lease liabilities

 

9,861

 

 

 

6,898

 

Total current liabilities

 

321,184

 

 

 

414,776

 

 

 

 

 

Long-term debt, net of current maturities

 

50,124

 

 

 

--

 

Noncurrent operating lease liabilities

 

98,220

 

 

 

36,325

 

Deferred tax liabilities, net

 

5,911

 

 

 

2,413

 

Other long-term liabilities

 

6,867

 

 

 

1,145

 

Total liabilities

 

482,306

 

 

 

454,659

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

Preferred stock

 

--

 

 

 

--

 

Common stock

 

28

 

 

 

28

 

Additional paid-in capital

 

283,101

 

 

 

271,622

 

Accumulated other comprehensive income (loss)

 

1,749

 

 

 

(63

)

Retained earnings

 

301,299

 

 

 

212,124

 

Treasury stock

 

(103,595

)

 

 

(102,964

)

Total stockholders’ equity

 

482,582

 

 

 

380,747

 

Total liabilities and stockholders’ equity

$

964,888

 

 

$

835,406

 

 

Michael H. McLamb
Chief Financial Officer
Abbey Heimensen
Public Relations
MarineMax, Inc.
727.531.1700

Brad Cohen or Dawn Francfort
ICR, LLC.
investorrelations@marinemax.com

Source: MarineMax, Inc.

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