MarineMax Reports Fiscal 2024 Third Quarter Results
~ Posts June Quarter Revenue of
~ Gross Margin of
~ Reports Comparable Same-Store Sales Growth of
~ Reaffirms Fiscal 2024 Financial Guidance ~
~ Hosts Earnings Conference Call at 10:00 a.m. ET Today ~
Fiscal 2024 Third Quarter Summary
-
June quarter revenue of
$757.7 million -
Same-store sales increase of
4% -
Gross profit margin of
32.0% -
Net income of
$31.6 million $1.37 $1.51 -
Adjusted EBITDA1 of
$70.4 million
CEO & President Commentary
“Despite persistent retail headwinds in the third quarter, our team executed well, delivering
“The recent formation of our new SuperYacht Division (SYD) exemplifies our strategy to generate increasing operating and commercial synergies across our portfolio,” McGill said. “The SYD integrates the operations of Fraser Yachts, Northrop & Johnson, Fairport Yacht Management, SuperYacht Management and Atalanta Golden Yachts (AGY), streamlining the back-office functions of these businesses into a unified entity. Our expansion into superyacht services began many years ago as our existing Azimut, Galeon, and Ocean Alexander customers, and others from our retail dealership operations, migrated to increasingly larger yachts. The complexity of these vessels demanded specialized services, which our SYD companies are exceptionally well-positioned to provide.
“As part of our long-term operational improvement plan, we initiated strategic cost-cutting actions to better align our expense structure with the current operating environment and improve operating leverage,” McGill said. “During the fourth quarter and into fiscal 2025, we expect to see increasing cost savings from these initiatives, which will further improve our cash flows.”
Fiscal 2024 Third Quarter Results
Revenue in the fiscal 2024 third quarter increased
Gross profit decreased
Selling, general, and administrative (SG&A) expenses totaled
Interest expense was
Net income in the third quarter was
Fiscal 2024 Guidance
Based on results to date, current business conditions, retail trends and other factors, the Company reaffirms its fiscal year 2024 Adjusted net income1,3 guidance range of
Conference Call Information
MarineMax will discuss its fiscal 2024 third quarter financial results on a conference call starting at 10:00 a.m. ET today. The conference call can be accessed via the “Investors” section of the Company's website: www.marinemax.com, or by dialing 844-825-9789 (
About MarineMax
As the world’s largest lifestyle retailer of recreational boats and yachts, as well as yacht concierge and superyacht services, MarineMax (NYSE: HZO) is United by Water. We have over 125 locations worldwide, including over 75 dealerships and 65 marina and storage facilities. Our integrated business includes IGY Marinas, which operates luxury marinas in yachting and sport fishing destinations around the world; Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies; Cruisers Yachts, one of the world’s premier manufacturers of premium sport yachts and motor yachts; and Intrepid Powerboats, a premier manufacturer of powerboats. To enhance and simplify the customer experience, we provide financing and insurance services as well as leading digital technology products that connect boaters to a network of preferred marinas, dealers, and marine professionals through Boatyard and Boatzon. In addition, we operate MarineMax Vacations in Tortola,
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 value-creation strategy, the Company’s positioning with respect to market fluctuations and emerging opportunities, the expected annualized cost savings of the Company’s cost-cutting initiatives, anticipated operating efficiency resulting from the formation of the SuperYacht Division, and the Company’s fiscal 2024 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 and integration of the recently acquired businesses, general economic conditions, as well as those within the Company's industry, the liquidity and strength of our bank group partners, the level of consumer spending, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2023 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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue |
|
$ |
757,720 |
|
|
$ |
721,844 |
|
|
$ |
1,867,886 |
|
|
$ |
1,800,111 |
|
Cost of sales |
|
|
515,621 |
|
|
|
478,036 |
|
|
|
1,259,885 |
|
|
|
1,168,497 |
|
Gross profit |
|
|
242,099 |
|
|
|
243,808 |
|
|
|
608,001 |
|
|
|
631,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general, and administrative expenses |
|
|
181,072 |
|
|
|
169,227 |
|
|
|
506,574 |
|
|
|
465,128 |
|
Income from operations |
|
|
61,027 |
|
|
|
74,581 |
|
|
|
101,427 |
|
|
|
166,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
18,229 |
|
|
|
14,798 |
|
|
|
55,968 |
|
|
|
37,562 |
|
Income before income tax provision |
|
|
42,798 |
|
|
|
59,783 |
|
|
|
45,459 |
|
|
|
128,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax provision |
|
|
11,085 |
|
|
|
15,455 |
|
|
|
11,452 |
|
|
|
34,685 |
|
Net income |
|
|
31,713 |
|
|
|
44,328 |
|
|
|
34,007 |
|
|
|
94,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Net income (loss) attributable to non-controlling interests |
|
|
163 |
|
|
|
(88 |
) |
|
|
(60 |
) |
|
|
98 |
|
Net income attributable to MarineMax, Inc. |
|
$ |
31,550 |
|
|
$ |
44,416 |
|
|
$ |
34,067 |
|
|
$ |
94,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic net income per common share |
|
$ |
1.42 |
|
|
$ |
2.03 |
|
|
$ |
1.53 |
|
|
$ |
4.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted net income per common share |
|
$ |
1.37 |
|
|
$ |
1.98 |
|
|
$ |
1.48 |
|
|
$ |
4.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares used in computing net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
22,268,758 |
|
|
|
21,885,400 |
|
|
|
22,254,619 |
|
|
|
21,831,350 |
|
Diluted |
|
|
23,049,097 |
|
|
|
22,427,443 |
|
|
|
22,952,234 |
|
|
|
22,321,269 |
|
MarineMax, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited) |
||||||||
|
|
June 30, |
|
|
June 30, |
|
||
|
|
2024 |
|
|
2023 |
|
||
ASSETS |
|
|
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
242,424 |
|
|
$ |
226,134 |
|
Accounts receivable, net |
|
|
105,258 |
|
|
|
95,018 |
|
Inventories |
|
|
880,419 |
|
|
|
739,114 |
|
Prepaid expenses and other current assets |
|
|
33,101 |
|
|
|
24,881 |
|
Total current assets |
|
|
1,261,202 |
|
|
|
1,085,147 |
|
Property and equipment, net |
|
|
533,943 |
|
|
|
521,637 |
|
Operating lease right-of-use assets, net |
|
|
138,600 |
|
|
|
135,452 |
|
Goodwill |
|
|
589,949 |
|
|
|
562,277 |
|
Other intangible assets, net |
|
|
38,380 |
|
|
|
40,968 |
|
Other long-term assets |
|
|
31,591 |
|
|
|
34,814 |
|
Total assets |
|
$ |
2,593,665 |
|
|
$ |
2,380,295 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
45,578 |
|
|
$ |
47,202 |
|
Contract liabilities (customer deposits) |
|
|
66,791 |
|
|
|
97,785 |
|
Accrued expenses |
|
|
196,987 |
|
|
|
118,576 |
|
Short-term borrowings |
|
|
701,185 |
|
|
|
514,023 |
|
Current maturities on long-term debt |
|
|
33,766 |
|
|
|
32,409 |
|
Current operating lease liabilities |
|
|
10,135 |
|
|
|
9,967 |
|
Total current liabilities |
|
|
1,054,442 |
|
|
|
819,962 |
|
Long-term debt, net of current maturities |
|
|
364,138 |
|
|
|
399,229 |
|
Noncurrent operating lease liabilities |
|
|
125,343 |
|
|
|
119,759 |
|
Deferred tax liabilities, net |
|
|
59,210 |
|
|
|
54,449 |
|
Other long-term liabilities |
|
|
13,598 |
|
|
|
84,539 |
|
Total liabilities |
|
|
1,616,731 |
|
|
|
1,477,938 |
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
30 |
|
|
|
29 |
|
Additional paid-in capital |
|
|
342,218 |
|
|
|
320,383 |
|
Accumulated other comprehensive income |
|
|
2,084 |
|
|
|
3,245 |
|
Retained earnings |
|
|
774,016 |
|
|
|
724,808 |
|
Treasury stock |
|
|
(150,797 |
) |
|
|
(148,656 |
) |
Total shareholders’ equity attributable to MarineMax, Inc. |
|
|
967,551 |
|
|
|
899,809 |
|
Non-controlling interests |
|
|
9,383 |
|
|
|
2,548 |
|
Total shareholders’ equity |
|
|
976,934 |
|
|
|
902,357 |
|
Total liabilities and shareholders’ equity |
|
$ |
2,593,665 |
|
|
$ |
2,380,295 |
|
MarineMax, Inc. and Subsidiaries Segment Financial Information (Amounts in thousands) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Retail Operations |
|
$ |
752,171 |
|
|
$ |
709,307 |
|
|
$ |
1,855,433 |
|
|
$ |
1,770,565 |
|
Product Manufacturing |
|
|
38,062 |
|
|
|
51,884 |
|
|
|
124,372 |
|
|
|
164,959 |
|
Elimination of intersegment revenue |
|
|
(32,513 |
) |
|
|
(39,347 |
) |
|
|
(111,919 |
) |
|
|
(135,413 |
) |
Revenue |
|
$ |
757,720 |
|
|
$ |
721,844 |
|
|
$ |
1,867,886 |
|
|
$ |
1,800,111 |
|
Income from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Retail Operations |
|
$ |
58,733 |
|
|
$ |
68,050 |
|
|
$ |
94,204 |
|
|
$ |
158,514 |
|
Product Manufacturing |
|
|
(548 |
) |
|
|
5,089 |
|
|
|
2,508 |
|
|
|
17,834 |
|
Intersegment adjustments |
|
|
2,842 |
|
|
|
1,442 |
|
|
|
4,715 |
|
|
|
(9,862 |
) |
Income from operations |
|
$ |
61,027 |
|
|
$ |
74,581 |
|
|
$ |
101,427 |
|
|
$ |
166,486 |
|
MarineMax, Inc. and Subsidiaries Supplemental Financial Information (Amounts in thousands, except share and per share data) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net income attributable to MarineMax, Inc. |
|
$ |
31,550 |
|
|
$ |
44,416 |
|
|
$ |
34,067 |
|
|
$ |
94,141 |
|
Transaction and other costs (1) |
|
|
1,127 |
|
|
|
111 |
|
|
|
4,352 |
|
|
|
6,227 |
|
Intangible amortization (2) |
|
|
1,428 |
|
|
|
1,925 |
|
|
|
4,592 |
|
|
|
5,524 |
|
Change in fair value of contingent consideration (3) |
|
|
1,225 |
|
|
|
1,211 |
|
|
|
2,392 |
|
|
|
3,441 |
|
Weather (recoveries) expenses |
|
|
(556 |
) |
|
|
(452 |
) |
|
|
142 |
|
|
|
(644 |
) |
Gain on acquisition of equity investment (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,129 |
) |
Restructuring expense (5) |
|
|
1,110 |
|
|
|
— |
|
|
|
1,110 |
|
|
|
— |
|
Tax adjustments for items noted above (6) |
|
|
(1,123 |
) |
|
|
(724 |
) |
|
|
(3,172 |
) |
|
|
(2,534 |
) |
Adjusted net income attributable to MarineMax, Inc. |
|
$ |
34,761 |
|
|
$ |
46,487 |
|
|
$ |
43,483 |
|
|
$ |
101,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted net income per common share |
|
$ |
1.37 |
|
|
$ |
1.98 |
|
|
$ |
1.48 |
|
|
$ |
4.22 |
|
Transaction and other costs (1) |
|
|
0.05 |
|
|
|
— |
|
|
|
0.19 |
|
|
|
0.28 |
|
Intangible amortization (2) |
|
|
0.06 |
|
|
|
0.09 |
|
|
|
0.20 |
|
|
|
0.25 |
|
Change in fair value of contingent consideration (3) |
|
|
0.05 |
|
|
|
0.05 |
|
|
|
0.10 |
|
|
|
0.15 |
|
Weather (recoveries) expenses |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
0.01 |
|
|
|
(0.03 |
) |
Gain on acquisition of equity investment (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.23 |
) |
Restructuring expense (5) |
|
|
0.05 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
Tax adjustments for items noted above (6) |
|
|
(0.05 |
) |
|
|
(0.03 |
) |
|
|
(0.14 |
) |
|
|
(0.11 |
) |
Adjusted diluted net income per common share |
|
$ |
1.51 |
|
|
$ |
2.07 |
|
|
$ |
1.89 |
|
|
$ |
4.53 |
|
(1) Transaction and other costs relate to acquisition transaction, integration, and other costs in the period. |
(2) Represents amortization expense for acquisition-related intangible assets. |
(3) Represents expenses to record contingent consideration liabilities at fair value. |
(4) Represents gain on a previously held equity investment upon acquisition of the entire business. |
(5) Represents expenses incurred as a result of restructuring and store closings. |
(6) Adjustments for taxes for items are calculated based on the effective tax rate for each respective period presented. |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net income attributable to MarineMax, Inc. |
|
$ |
31,550 |
|
|
$ |
44,416 |
|
|
$ |
34,067 |
|
|
$ |
94,141 |
|
Interest expense (excluding floor plan) |
|
|
7,508 |
|
|
|
7,485 |
|
|
|
22,786 |
|
|
|
20,669 |
|
Income tax provision |
|
|
11,085 |
|
|
|
15,455 |
|
|
|
11,452 |
|
|
|
34,685 |
|
Depreciation and amortization |
|
|
11,192 |
|
|
|
9,419 |
|
|
|
33,087 |
|
|
|
27,391 |
|
Stock-based compensation expense |
|
|
6,080 |
|
|
|
5,490 |
|
|
|
17,483 |
|
|
|
15,703 |
|
Transaction and other costs |
|
|
1,127 |
|
|
|
111 |
|
|
|
4,352 |
|
|
|
6,227 |
|
Gain on acquisition of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,129 |
) |
Change in fair value of contingent consideration |
|
|
1,225 |
|
|
|
1,211 |
|
|
|
2,392 |
|
|
|
3,441 |
|
Restructuring expense |
|
|
1,110 |
|
|
|
— |
|
|
|
1,110 |
|
|
|
— |
|
Weather (recoveries) expenses |
|
|
(556 |
) |
|
|
(452 |
) |
|
|
142 |
|
|
|
(644 |
) |
Foreign currency |
|
|
73 |
|
|
|
352 |
|
|
|
(235 |
) |
|
|
(2,451 |
) |
Adjusted EBITDA |
|
$ |
70,394 |
|
|
$ |
83,487 |
|
|
$ |
126,636 |
|
|
$ |
194,033 |
|
Non-GAAP Financial Measures
This press release, along with the above Supplemental Financial Information table, contains “Adjusted net income”, “Adjusted diluted EPS”, “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization” (“Adjusted EBITDA”) and “Adjusted SG&A”, which are non-GAAP financial measures as defined under applicable securities legislation. In determining these measures, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. The Company believes these non-GAAP financial measures are key performance indicators that improve the period-to-period comparability of the Company’s results and provide investors with more insight into, and an additional tool to understand and assess, the performance of the Company's ongoing core business operations. Investors and other readers are encouraged to review the related GAAP financial measures and the above reconciliation and should consider these non-GAAP financial measures as a supplement to, and not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP.
In addition, we have not reconciled our fiscal year 2024 Adjusted earnings and Adjusted EBITDA guidance to net income (the corresponding GAAP measure for each), which is not accessible on a forward-looking basis due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to acquisition contingent consideration, acquisition costs, and other costs. Acquisition contingent consideration and transaction costs, which are likely to be significant to the calculation of net income, are affected by the integration and post-acquisition performance of our acquirees, which is difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted earnings and Adjusted EBITDA are not available without unreasonable effort.
______________________________
1 This is a non-GAAP measure. See below for an explanation and quantitative reconciliation of each non-GAAP financial measure. |
2 This is a non-GAAP measure. Adjusted SG&A represents SG&A adjusted for transaction and other costs, intangible amortization, change in fair value of contingent consideration, weather events, and restructuring expense. See below in the Adjusted diluted EPS table for the excluded amounts for both periods. |
3 See “Non-GAAP Financial Measures” below for a discussion of why reconciliations of forward-looking Adjusted net income and Adjusted EBITDA are not available without unreasonable effort. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725149340/en/
Mike McLamb
Chief Financial Officer
727-531-1700
Scott Solomon
Sharon Merrill Advisors
857-383-2409
HZO@investorrelations.com
Source: MarineMax, Inc.
