MarineMax Reports Record Fiscal 2021 Third Quarter Results
07/22/2021 - 06:45 AM
MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat and yacht retailer, today announced results for its third quarter ended June 30, 2021.
Revenue grew 34% , or over $168 million , to $666.3 million for the quarter ended June 30, 2021 from $498.3 million in the comparable period last year. Same-store sales grew 6% on top of a 37% increase in the comparable quarter last year. The overall revenue growth was driven by meaningful contributions from its recent strategic acquisitions as well as the ongoing robust demand for boating. The Company’s significant geographic and product diversification and the effective utilization of its digital platform have contributed to the sustained growth. These factors resulted in net income and earnings per diluted share rising over 70% and 64% to $59.6 million and $2.59, respectively. This compares to net income of $34.9 million and earnings per diluted share of $1.58 in the comparable period last year.
For the nine months ended June 30, 2021, revenue was up over 44% to $1.6 billion compared with $1.1 billion for the same period last year. Same-store sales increased approximately 21% , on top of 22% growth for the same period last year. Net income for the nine months ended June 30, 2021, rose over 149% to $122.2 million , or $5.33 per diluted share, compared with $49.1 million , or $2.23 per diluted share for the comparable period last year.
W. Brett McGill, Chief Executive Officer and President, stated, “We once again delivered record sales and earnings growth in the quarter, as demand for the boating lifestyle remained strong and our team continued to execute on our strategy of driving our higher margin businesses, resulting in our strongest quarterly operating margin to date. We are proud of our ongoing market share gains as we benefit from our diversified portfolio, premium brands, exceptional customer service, investments in technology, global market presence and our enthusiastic customer base that wants to enjoy active boating experiences with family and friends.”
Mr. McGill continued, “Our deep manufacturer relationships, industry leading inventory management and valuable real estate locations position us well to continue to gain share, as evidenced by our ability to continue to generate strong same-store-sales in a lean inventory environment. With one of the strongest balance sheets in the industry, we remain well capitalized to continue to make strategic accretive acquisitions to further enhance our geographic presence, to add to our marina, storage and service offerings and to further grow our higher margin businesses. Recently, we were pleased to add Cruiser Yachts and Nisswa Marine to our portfolio, illustrating our focus on accretive, higher margin businesses with strong operating teams. Based on orders and inventory, our pricing model and our team’s commitment to executing on our strategic initiatives, we will capture additional growth in the years ahead, as the world’s preferred boating and yacht retailer.”
At June 30, 2021, the Company’s financial capacity, consisting of cash and cash equivalents, along with available borrowings under its credit facilities, exceeded $329 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 $6.40 t o $6.55 from $5.50 t o $5.65, which was previously increased from original 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.
Reportable Segments
Effective May 2021, the Company’s reportable segments changed as a result of our acquisition of Cruisers Yachts, a manufacturer of yachts. Whereas we previously had only one segment, we now report our operations through two new reportable segments: Retail Operations and Product Manufacturing. The elimination of intersegment revenue and income is due to sales of Cruisers Yachts through our select retail dealership locations. The financial performance of our reportable segments will now be disclosed quarterly beginning with this quarter ended June 30, 2021.
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 78 retail dealership locations, which includes 31 marinas or storage operations. Through Fraser Yachts and Northrop and Johnson, the Company also is the largest super-yacht services provider, operating locations across the globe. Cruisers Yachts, a MarineMax company, manufacturers boats and yachts with sales through our select retail dealership locations and through independent dealers. 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 third quarter ended June 30, 2021; the Company's capitalization; the Company's ability to make strategic accretive acquisitions, further enhance its geographic presence, add to its offerings, and further grow its higher margin businesses; the Company's expectation to capture additional growth in the years ahead; 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 Company’s ability to integrate acquisitions into existing operations, 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
Nine Months Ended
2021
2020
2021
2020
Revenue
$
666,328
$
498,304
$
1,600,947
$
1,110,951
Cost of sales
461,654
374,851
1,116,066
828,704
Gross profit
204,674
123,453
484,881
282,247
Selling, general, and administrative expenses
123,766
74,838
319,120
208,284
Income from operations
80,908
48,615
165,761
73,963
Interest expense
639
2,133
2,999
8,490
Income before income tax provision
80,269
46,482
162,762
65,473
Income tax provision
20,651
11,555
40,609
16,422
Net income
$
59,618
$
34,927
$
122,153
$
49,051
Basic net income per common share
$
2.69
$
1.62
$
5.53
$
2.28
Diluted net income per common share
$
2.59
$
1.58
$
5.33
$
2.23
Weighted average number of common shares used in computing net income per common share:
Basic
22,132,915
21,499,408
22,100,190
21,491,117
Diluted
23,037,679
22,045,900
22,922,526
21,965,355
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
June 30,
June 30,
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
200,121
$
86,919
Accounts receivable, net
60,195
69,478
Inventories, net
209,418
314,096
Prepaid expenses and other current assets
18,316
11,133
Total current assets
488,050
481,626
Property and equipment, net
166,058
141,897
Operating lease right-of-use assets, net
104,641
39,279
Goodwill and other intangible assets, net
186,691
65,404
Other long-term assets
10,650
7,754
Total assets
$
956,090
$
735,960
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
28,741
$
39,441
Contract liabilities (customer deposits)
86,704
30,106
Accrued expenses
89,696
47,775
Short-term borrowings
2,861
147,049
Current maturities on long-term debt
3,293
--
Current operating lease liabilities
10,275
7,262
Total current liabilities
221,570
271,633
Long-term debt, net of current maturities
48,374
--
Noncurrent operating lease liabilities
96,830
34,248
Deferred tax liabilities, net
8,419
4,221
Other long-term liabilities
8,126
833
Total liabilities
383,319
310,935
STOCKHOLDERS' EQUITY:
Preferred stock
--
--
Common stock
28
28
Additional paid-in capital
288,923
276,606
Accumulated other comprehensive income (loss)
1,264
(130
)
Retained earnings
399,852
252,116
Treasury stock
(117,296
)
(103,595
)
Total stockholders’ equity
572,771
425,025
Total liabilities and stockholders’ equity
$
956,090
$
735,960
MarineMax, Inc. and Subsidiaries
Segment Financial Information
(Amounts in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
2021
2020
2021
2020
Revenue:
Retail Operations
$
656,826
$
498,304
$
1,591,445
$
1,110,951
Product Manufacturing
20,417
--
20,417
--
Elimination of intersegment revenue
(10,915
)
--
(10,915
)
--
Revenue
$
666,328
$
498,304
$
1,600,947
$
1,110,951
Income from operations:
Retail Operations
$
79,988
$
48,615
$
164,841
$
73,963
Product Manufacturing
3,521
--
3,521
--
Elimination of intersegment income
(2,601
)
--
(2,601
)
--
Income from operations
$
80,908
$
48,615
$
165,761
$
73,963
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