MarineMax Reports Record Fiscal 2021 Second Quarter Results
04/22/2021 - 06:45 AM
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 t o $5.65, which is increased from its previously provided guidance of $4.00 t o $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
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