MarineMax Reports Record Fiscal 2021 Second Quarter Results

4/22/21

~Record March Quarter Revenue Grows 70% to over $523 Million~

~Same-Store Sales Growth Exceeds 45% Driven By New Unit Growth~

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

                ~Record March Quarter Diluted EPS Increases More Than Sevenfold to $1.69~   

~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 second quarter ended March 31, 2021.

Revenue increased 70%, or over $214 million, to $523.1 million for the quarter ended March 31, 2021 from $308.5 million in the comparable period last year. Same-store sales grew over 45% on top of a 1% increase in the comparable quarter last year. The growth was driven by an increase in comparable new units sold driven by the strong demand for boating. The Company’s significant geographic and product diversification and the effective utilization of its digital platform have driven growth over the past several years. These factors, along with increased industry demand, resulted in net income and earnings per diluted share rising more than sevenfold to $38.9 million and $1.69, respectively. This compares to net income of $5.1 million and earnings per diluted share of $0.23 in the comparable period last year. The Company generated positive same-store sales growth during the March 2020 quarter, despite the impact of COVID-19.

For the six-months ended March 31, 2021, revenue grew over 52% to $934.6 million compared with $612.6 million for the same period last year. Same-store sales increased approximately 33% in the first half of fiscal year 2021 on top of 12% growth during the same period last year. Net income and earnings per diluted share increased more than fourfold for the six months ended March 31, 2021 to $62.5 million, and $2.73 per diluted share, respectively. This compares to net income of $14.1 million, or $0.64 per diluted share, in the same period last year.

W. Brett McGill, Chief Executive Officer and President, stated, “We delivered record sales and earnings growth in the quarter, driven by a robust 45% same-store sales increase and strong gross margins. We continue to gain market share as we capitalize on the foundational shift of new customers embracing the boating lifestyle and many of our existing customers upgrading to larger and newer boats. Additionally, our multiple product and service offerings enhance our customers boating needs while also driving growth. We extended our long track record of producing meaningful same-store sales growth while also executing on our balanced growth strategy. I am extremely proud of our team for successfully navigating through the pandemic and capitalizing on the ongoing changes in consumer behavior, while driving significant leverage in our operating model.”

Mr. McGill continued, “As we enter our most active season, our large on-order backlog provides us with additional confidence for the balance of fiscal 2021, into fiscal 2022 and beyond. With a balanced strategic plan, a committed team, premium brands, exceptional customer service, an enthusiastic customer base, a global market presence and the ongoing benefits from investment in technology, MarineMax is well-positioned to drive growth as the world’s preferred boating and yacht retailer.”

At March 31, 2021, the Company’s financial capacity, consisting of cash and cash equivalents, along with available borrowings under its credit facilities, exceeded $350 million.

Updated 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 the range of $5.50 to $5.65, which is increased from its previously provided guidance of $4.00 to $4.20 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 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 second quarter ended March 31, 2021; the foundational shift of new customers embracing and enjoying the boating lifestyle; the Company's growth strategy; the Company's confidence for the balance of fiscal 2021, fiscal 2022, and beyond; the Company's positioning for the future; 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, potential supply chain constraints 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
March 31,

 

Six Months Ended
 March 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

Revenue

$

     523,095 

 

$

     308,475  

 

$

      934,618 

 

$

      612,647 

Cost of sales

 

366,289

 

 

229,699

 

 

654,411

 

 

453,853

Gross profit

 

156,806

 

 

78,776

 

 

280,207

 

 

158,794

 

 

 

 

 

 

 

 

Selling, general, and  administrative expenses

 

103,936

 

 

69,060

 

 

195,354

 

 

133,446

Income from operations

 

52,870

 

 

9,716

 

 

84,853

 

 

25,348

 

 

 

 

 

 

 

 

Interest expense

 

1,092

 

 

3,013

 

 

2,360

 

 

6,357

Income before income tax provision

 

51,778

 

 

6,703

 

 

82,493

 

 

18,991

 

 

 

 

 

 

 

 

Income tax provision

 

12,843

 

 

1,638

 

 

19,958

 

 

4,867

Net income

  $

       38,935 

 

  $

         5,065 

 

$

        62,535 

 

$

        14,124 

 

 

 

 

 

 

 

 

Basic net income per common share

  $

           1.76 

 

  $

           0.24 

 

  $

           2.83 

 

  $

           0.66 

 

 

 

 

 

 

 

 

Diluted net income per common share

  $

          1.69  

 

  $

          0.23 

 

  $

           2.73 

 

  $

           0.64 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

22,143,043

 

 

21,520,215

 

 

22,083,827

 

 

21,486,995

Diluted

 

22,986,061

 

 

21,960,285

 

 

22,864,950

 

 

21,925,105

 

 

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

March 31,

 2021

 

March 31,

 2020

ASSETS

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

      142,888

 

 

$

      64,406

 

Accounts receivable, net

 

54,489

 

 

 

35,814

 

Inventories, net

 

302,979

 

 

 

506,887

 

Prepaid expenses and other current assets

 

14,698

 

 

 

9,369

 

Total current assets

 

515,054

 

 

 

616,476

 

 

 

 

 

Property and equipment, net

 

151,254

 

 

 

143,168

 

Operating lease right-of-use assets, net

 

106,348

 

 

 

40,566

 

Goodwill and other intangible assets, net

 

142,152

 

 

 

65,139

 

Other long-term assets

 

10,318

 

 

 

7,755

 

Total assets

$

    925,126

 

 

$

    873,104

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

        23,280

 

 

$

        15,259

 

Contract liabilities (customer deposits)

 

83,357

 

 

 

26,794

 

Accrued expenses

 

84,536

 

 

 

34,634

 

Short-term borrowings

 

35,762

 

 

 

362,898

 

Current maturities on long-term debt

 

2,802

 

 

 

--

 

Current operating lease liabilities

 

10,439

 

 

 

6,850

 

Total current liabilities

 

240,176

 

 

 

446,435

 

 

 

 

 

Long-term debt, net of current maturities

 

49,440

 

 

 

--

 

Noncurrent operating lease liabilities

 

98,276

 

 

 

35,639

 

Deferred tax liabilities, net

 

6,501

 

 

 

2,821

 

Other long-term liabilities

 

7,429

 

 

 

1,132

 

Total liabilities

 

401,822

 

 

 

486,027

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

Preferred stock

 

--

 

 

 

--

 

Common stock

 

28

 

 

 

28

 

Additional paid-in capital

 

285,532

 

 

 

273,809

 

Accumulated other comprehensive income (loss)

 

1,105

 

 

 

(513

)

Retained earnings

 

340,234

 

 

 

217,189

 

Treasury stock

 

(103,595

)

 

 

(103,436

)

Total stockholders’ equity

 

523,304

 

 

 

387,077

 

Total liabilities and stockholders’ equity

$

    925,126

 

 

$

    873,104

 

 

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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