MarineMax Reports Record Fourth Quarter and Fiscal Year Results
10/28/2020 - 06:45 AM
CLEARWATER, Fla.--(BUSINESS WIRE
Revenue grew over 29% to $398.8 million for the quarter ended September 30, 2020, from $308.1 million for the comparable quarter last year. The increase was driven by strong same-store sales growth of 33% . Included in the quarters ended September 30, 2020 and September 30, 2019, were net charges of $1.5 million or $0.06 per diluted share and $1.6 million , or $0.07 per diluted share, respectively. The charges primarily related to costs associated with the Company’s store optimization plan which resulted in the closure of one store in the current quarter and eight in the comparable quarter last year.
Net income for the quarter ended September 30, 2020, more than tripled to $25.6 million , or $1.13 per diluted share, compared to net income of $6.7 million , or $0.31 per diluted share in the comparable quarter last year. Excluding the charges in both periods, net income for the quarter ended September 30, 2020, grew to $27.1 million , with earnings per diluted share more than tripling to $1.19, as compared to $8.3 million or $0.38 per diluted share in the same period last year.
For the fiscal year ended September 30, 2020, revenue increased 22% to $1.51 billion compared with $1.24 billion for the same period last year. The growth was driven by strong same-store sales growth of 25% . Included in the years ended September 30, 2020 and September 30, 2019, were net charges of $1.3 million , or $0.05 per diluted share and $1.4 million , or $0.06 per diluted share, respectively. The charges primarily related to costs associated with the Company’s store optimization plan.
Net income for the fiscal year ended September 30, 2020, more than doubled to $74.6 million , or $3.37 per diluted share, compared to net income of $36.0 million , or $1.57 per diluted share in the prior year. Excluding the charges in both periods, net income for the year ended September 30, 2020, grew to $75.9 million , with earnings per diluted share more than doubling to $3.42, as compared to $37.3 million or $1.63 per diluted share in the same period last year.
W. Brett McGill, Chief Executive Officer and President stated, “The MarineMax Team generated a record $1.5 billion of revenue and more than doubled our earnings per share while overcoming these extremely uncertain times. We believe this demonstrates the strength and flexibility of our business model. I could not be prouder of the entire Team for their focus, hard work and passion for MarineMax. We also believe that the industry experienced a foundational shift in 2020, and specifically for MarineMax, it resulted in a greatly expanded customer base that is embracing and enjoying the boating lifestyle. We continue to add new customers at a seasonally accelerated pace. This foundational layer should provide sustainable growth for years to come, as many existing and new customers will upgrade to larger boats and need additional services.”
Mr. McGill continued, “Our deep manufacturer relationships and brand strategy provide us with a competitive advantage by supporting our ability to move inventory between stores to help satisfy the growing demand. Looking ahead, our business outlook remains promising as more people are realizing that boating is a safe way for families to spend time together enjoying the boating lifestyle. Our balance sheet is very well capitalized, allowing us to continue to pursue strategic accretive acquisitions, to strengthen and enhance our digital strategy, to expand with marinas and to further grow our higher margin businesses. We are happy that many people have rediscovered the benefits of the boating lifestyle, which gives us increased confidence for the future.”
At September 30, 2020, the Company’s liquidity exceeded $237 million , consisting of cash and cash equivalents along with availability under its credit facility.
Fiscal 2021 Guidance
Based on current business conditions, retail trends and other factors, the Company currently expects earnings per diluted share to be in the range of $3.70 t o $3.90 for fiscal 2021. This includes earnings contributed by SkipperBud’s, which the Company acquired on October 1, 2020. This compares to a non-GAAP adjusted, but fully taxed, diluted earnings per share of $3.42 in fiscal 2020.
About MarineMax
Headquartered in Clearwater, Florida, MarineMax is the nation’s largest recreational boat and yacht retailer. Focused on premium brands such as Sea Ray, Boston Whaler, Hatteras, Azimut Yachts, Benetti, Ocean Alexander, Galeon, Grady-White, Harris, Bennington, Crest, MasterCraft, MJM Yachts, NauticStar, Scout, Sailfish, Tige, Yamaha Jet Boats, Aquila, Aviara, and Nautique. MarineMax sells new and used recreational boats and related marine products and services, as well as provides yacht brokerage and charter services. MarineMax currently has 77 retail locations in Alabama, California, Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Washington and Wisconsin. MarineMax also owns Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies with operations in multiple countries. The Company also owns and operates MarineMax Vacations in Tortola, British Virgin Islands. MarineMax is a New York Stock Exchange-listed company. 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 September 30, 2020; the foundational shift experienced by the Company and the overall industry and this shift's effects on potential future growth; the Company's competitive advantage and its effect on inventory and sales; the Company's business outlook; the Company's continued efforts to pursue strategic accretive acquisitions, strengthen and enhance its digital strategy, expand with marinas, and to further grow its higher margin businesses; 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 and integration of the recently-acquired SkipperBud's business, 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, the Company’s ability to integrate acquisitions into existing operations, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2019 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
Fiscal Year Ended
2020
2019
2020
2019
Revenue
$ 398,762
$ 308,136
$ 1,509,713
$ 1,237,153
Cost of sales
282,296
220,694
1,111,000
914,321
Gross profit
116,466
87,442
398,713
322,832
Selling, general, and administrative expenses
83,714
74,864
291,998
262,300
Income from operations
32,752
12,578
106,715
60,532
Interest expense
785
3,094
9,275
11,579
Income before income tax provision
31,967
9,484
97,440
48,953
Income tax provision
6,384
2,799
22,806
12,968
Net income
$ 25,583
$ 6,685
$ 74,634
$ 35,985
Basic net income per common share
$ 1.18
$ 0.31
$ 3.46
$ 1.61
Diluted net income per common share
$ 1.13
$ 0.31
$ 3.37
$ 1.57
Weighted average number of common
Basic
21,716,081
21,327,669
21,547,665
22,294,114
Diluted
22,604,060
21,896,257
22,125,338
22,881,147
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
September 30,
September 30,
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 155,493
$ 38,511
Accounts receivable, net
40,195
42,398
Inventories, net
298,002
477,468
Prepaid expenses and other current assets
9,637
10,206
Total current assets
503,327
568,583
Property and equipment, net
141,934
144,298
Operating lease right-of-use assets, net
37,991
—
Goodwill and other intangible assets, net
84,293
64,077
Other long-term assets
7,774
7,125
Total assets
$ 775,319
$ 784,083
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$ 37,343
$ 33,674
Customer deposits
31,821
24,305
Accrued expenses
52,123
42,849
Current operating lease liabilities
6,854
—
Short-term borrowings
144,393
312,065
Total current liabilities
272,534
412,893
Noncurrent operating lease liabilities
33,473
—
Deferred tax liabilities, net
4,509
1,142
Long-term debt, net of current maturities
7,343
—
Other long-term liabilities
2,063
1,229
Total liabilities
319,922
415,264
STOCKHOLDERS' EQUITY:
Preferred stock
—
—
Common stock
28
28
Additional paid-in capital
280,436
269,969
Accumulated other comprehensive income (loss)
829
(669)
Retained earnings
277,699
202,455
Treasury stock
(103,595)
(102,964)
Total stockholders’ equity
455,397
368,819
Total liabilities and stockholders’ equity
$ 775,319
$ 784,083
MarineMax, Inc. and Subsidiaries
Supplemental Financial Information
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended
Fiscal Year Ended
2020
2019
2020
2019
Net income
$ 25,583
$ 6,685
$ 74,634
$ 35,985
Gain Deepwater Horizon settlement
—
(1,252)
—
(1,252)
Store closing expenses
1,659
3,091
1,659
3,091
Hurricane expenses
196
422
—
—
Pro forma tax adjustments for items noted above (1)
(371)
(667)
(388)
(487)
Adjusted net income
$ 27,067
$ 8,279
$ 75,905
$ 37,337
Diluted net income per common share
$ 1.13
$ 0.31
$ 3.37
$ 1.57
Gain Deepwater Horizon Settlement
—
(0.06)
—
(0.05)
Store closing expenses
0.07
0.14
0.07
0.14
Hurricane expenses
0.01
0.02
—
—
Pro forma tax adjustments for items noted above (1)
(0.02)
(0.03)
(0.02)
(0.03)
Adjusted diluted net income per common share
$ 1.19
$ 0.38
$ 3.42
$ 1.63
____________
(1)
Adjustments for taxes for unusual items are calculated based on the effective tax rate for each respective period presented.
