HZO - MarineMax Reports Fiscal 2024 First Quarter Results
~ Drove Record December Quarter Revenue and 4% Same-Store Sales Growth Amid More Challenging Retail Environment ~
~ Updates Fiscal 2024 Guidance ~
~ Hosts Earnings Conference Call at 10:00 a.m. ET Today ~
MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat, yacht and superyacht services company, today announced results for its first quarter ended December 31, 2023.
Fiscal 2024 First Quarter Summary
- Record December quarter revenue of $527.3 million
- Same-store sales increase of 4%
- Gross profit margin of 33.3%
- Net income of $0.9 million, or diluted EPS of $0.04; Adjusted diluted EPS 1 of $0.19
- Adjusted EBITDA 1 of $26.6 million
CEO & President Commentary
“I’m proud of our team’s ability to drive a strong close to the December quarter, generating the highest first quarter revenue in our history. This growth came despite a challenging retail environment which required us to take more aggressive pricing actions than expected,” said Brett McGill, Chief Executive Officer and President of MarineMax. “Our pricing actions did result in lower gross margins and profitability. This was primarily due to increased discounting on certain boat models in response to the softer retail environment, as well as a greater mix of larger boats, which historically carry a lower gross margin than other product categories.”
“However, with the seasonally smallest quarter of the year behind us, we are cautiously encouraged by the reasonably strong start to the winter boat show season, along with the increased support from our industry leading manufacturing partners. Our healthy balance sheet and strong cash position allow us to continue to execute on our long-term growth plans. In fiscal 2024, we are focused on capturing further synergies and increasing the earnings power of MarineMax imbedded in the acquisitions we completed over the past several years. In addition, we continue to expand our portfolio of higher-margin product and service offerings that complement our business model,” McGill said. “This month, we announced the planned acquisition of Williams Tenders USA, the exclusive distributor in the United States and the Caribbean for the premier brand of rigid inflatable jet tenders for the luxury yacht market. The growth of the yacht and luxury yacht markets represents a tailwind for our business as we advance our strategic priorities.”
Fiscal 2024 First Quarter Results
Revenue in the fiscal 2024 first quarter increased to $527.3 million from $507.9 million in the comparable period last year. The 4% top-line growth was driven largely by higher new and used boat sales, contributing to a 4% increase in same-store sales.
Gross profit decreased 6.1% to $175.5 million from $186.9 million in the prior-year period. Gross profit margin of 33.3%, while historically high, decreased 350 basis points from 36.8% in the fiscal 2023 first quarter, primarily as the result of a more aggressive promotional environment in response to retail environment challenges during the 2024 first quarter.
Selling, general, and administrative expenses totaled $156.5 million, or 29.7% of revenue, in the first quarter, compared with $150.4 million, or 29.6% of revenue, for the same period last year. The increase was driven primarily by acquisitions completed during the year, as well as inflation and other specific cost increases.
Interest expense was $18.4 million, or 3.5% of revenue in the first quarter, compared with $9.5 million, or 1.9% of revenue in the prior-year period, reflecting higher interest rates and increased inventory in the fiscal 2024 period.
Net income in the first quarter was $0.9 million, or $0.04 per diluted share, compared with net income of $19.7 million, or $0.89 per diluted share, in the same period last year. Adjusted net income 1 in the first quarter was $4.4 million, or $0.19 per diluted share, compared with $27.3 million, or $1.24 per diluted share, in the prior-year period. Adjusted EBITDA 1 for the quarter ended December 31, 2023 was $26.6 million, compared with $53.2 million for the same period last year.
Fiscal 2024 Guidance
Based on results to date, current business conditions, retail trends and other factors, the Company is updating its fiscal year 2024 Adjusted net income 1,2 guidance to a range of $3.20 to $3.70 per diluted share. The Company also is revising fiscal year 2024 Adjusted EBITDA 1,2 guidance in the range of $190 million to $215 million. These expectations do not consider or give effect for, among other things, material acquisitions that may be completed by the Company during fiscal 2024 or other unforeseen events, including changes in global economic conditions.
Conference Call Information
MarineMax will discuss its fiscal 2024 first 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 877-407-0789 (U.S. and Canada) or 201-689-8562 (International). An online replay will be available within one hour of the conclusion of the call and will be archived on the website for one year.
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 130 locations worldwide, including 81 dealerships and 66 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, British Virgin Islands, which offers our charter vacation guests the luxury boating adventures of a lifetime. Land comprises 29% of the earth’s surface. We’re focused on the other 71%. Learn more at 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 cautious encouragement related to the remainder of fiscal 2024, the Company’s position to continue to execute on its long-term growth plans, the potential for expansion and synergies within our superyacht services and luxury yacht offerings and our 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.
____________________
1 This is a non-GAAP measure. See below for an explanation and quantitative reconciliation of each non-GAAP financial measure.
2 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.
| MarineMax, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Amounts in thousands, except share and per share data) (Unaudited) |
|
|
|
|
| Three Months Ended |
|
|
|
|
| December 31, |
|
|
|
|
| 2023 |
|
|
| 2022 |
| Revenue |
|
|
| $ |
| 527,274 |
|
|
|
|
| $ |
| 507,927 |
| Cost of sales |
|
|
|
|
| 351,793 |
|
|
|
|
|
|
| 321,030 |
| Gross profit |
|
|
|
|
| 175,481 |
|
|
|
|
|
|
| 186,897 |
|
|
|
|
|
|
|
|
|
|
| Selling, general, and administrative expenses |
|
|
|
|
| 156,482 |
|
|
|
|
|
|
| 150,397 |
| Income from operations |
|
|
|
|
| 18,999 |
|
|
|
|
|
|
| 36,500 |
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
|
|
| 18,365 |
|
|
|
|
|
|
| 9,484 |
| Income before income tax (benefit) provision |
|
|
|
|
| 634 |
|
|
|
|
|
|
| 27,016 |
|
|
|
|
|
|
|
|
|
|
| Income tax (benefit) provision |
|
|
|
|
| (211 |
| ) |
|
|
|
|
| 7,029 |
| Net income |
|
|
|
|
| 845 |
|
|
|
|
|
|
| 19,987 |
|
|
|
|
|
|
|
|
|
|
| Less: Net (loss) income attributable to non-controlling interests |
|
|
|
|
| (85 |
| ) |
|
|
|
|
| 297 |
| Net income attributable to MarineMax, Inc. |
|
|
| $ |
| 930 |
|
|
|
|
| $ |
| 19,690 |
|
|
|
|
|
|
|
|
|
|
| Basic net income per common share |
|
|
| $ |
| 0.04 |
|
|
|
|
| $ |
| 0.91 |
|
|
|
|
|
|
|
|
|
|
| Diluted net income per common share |
|
|
| $ |
| 0.04 |
|
|
|
|
| $ |
| 0.89 |
|
|
|
|
|
|
|
|
|
|
| Weighted average number of common shares used in computing net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
|
|
| 22,196,141 |
|
|
|
|
|
|
| 21,756,165 |
| Diluted |
|
|
|
|
| 22,809,017 |
|
|
|
|
|
|
| 22,223,173 |
| MarineMax, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, |
|
|
| December 31, |
|
|
|
|
|
|
| 2023 |
|
|
|
|
|
|
| 2022 |
|
|
| ASSETS |
|
|
|
|
|
|
|
|
| CURRENT ASSETS: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
| $ |
| 210,323 |
|
|
|
|
| $ |
| 177,773 |
|
|
| Accounts receivable, net |
|
|
|
|
| 94,601 |
|
|
|
|
|
|
| 68,514 |
|
|
| Inventories |
|
|
|
|
| 876,233 |
|
|
|
|
|
|
| 605,369 |
|
|
| Prepaid expenses and other current assets |
|
|
|
|
| 24,864 |
|
|
|
|
|
|
| 21,715 |
|
|
| Total current assets |
|
|
|
|
| 1,206,021 |
|
|
|
|
|
|
| 873,371 |
|
|
| Property and equipment, net |
|
|
|
|
| 532,492 |
|
|
|
|
|
|
| 501,589 |
|
|
| Operating lease right-of-use assets, net |
|
|
|
|
| 140,785 |
|
|
|
|
|
|
| 138,592 |
|
|
| Goodwill |
|
|
|
|
| 575,850 |
|
|
|
|
|
|
| 527,718 |
|
|
| Other intangible assets, net |
|
|
|
|
| 38,958 |
|
|
|
|
|
|
| 38,794 |
|
|
| Other long-term assets |
|
|
|
|
| 32,401 |
|
|
|
|
|
|
| 33,220 |
|
|
| Total assets |
|
|
| $ |
| 2,526,507 |
|
|
|
|
| $ |
| 2,113,284 |
|
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
| $ |
| 43,957 |
|
|
|
|
| $ |
| 43,373 |
|
|
| Contract liabilities (customer deposits) |
|
|
|
|
| 74,636 |
|
|
|
|
|
|
| 119,889 |
|
|
| Accrued expenses |
|
|
|
|
| 112,417 |
|
|
|
|
|
|
| 101,799 |
|
|
| Short-term borrowings |
|
|
|
|
| 664,858 |
|
|
|
|
|
|
| 341,212 |
|
|
| Current maturities on long-term debt |
|
|
|
|
| 33,766 |
|
|
|
|
|
|
| 32,449 |
|
|
| Current operating lease liabilities |
|
|
|
|
| 10,372 |
|
|
|
|
|
|
| 10,480 |
|
|
| Total current liabilities |
|
|
|
|
| 940,006 |
|
|
|
|
|
|
| 649,202 |
|
|
| Long-term debt, net of current maturities |
|
|
|
|
| 380,972 |
|
|
|
|
|
|
| 415,263 |
|
|
| Noncurrent operating lease liabilities |
|
|
|
|
| 125,550 |
|
|
|
|
|
|
| 121,045 |
|
|
| Deferred tax liabilities, net |
|
|
|
|
| 57,939 |
|
|
|
|
|
|
| 37,807 |
|
|
| Other long-term liabilities |
|
|
|
|
| 87,469 |
|
|
|
|
|
|
| 75,041 |
|
|
| Total liabilities |
|
|
|
|
| 1,591,936 |
|
|
|
|
|
|
| 1,298,358 |
|
|
| SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
| Preferred stock |
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
| Common stock |
|
|
|
|
| 29 |
|
|
|
|
|
|
| 29 |
|
|
| Additional paid-in capital |
|
|
|
|
| 328,955 |
|
|
|
|
|
|
| 308,480 |
|
|
| Accumulated other comprehensive income |
|
|
|
|
| 3,891 |
|
|
|
|
|
|
| 2,010 |
|
|
| Retained earnings |
|
|
|
|
| 740,879 |
|
|
|
|
|
|
| 650,357 |
|
|
| Treasury stock |
|
|
|
|
| (148,656 |
| ) |
|
|
|
|
| (148,656 |
| ) |
| Total shareholders’ equity attributable to MarineMax, Inc. |
|
|
|
|
| 925,098 |
|
|
|
|
|
|
| 812,220 |
|
|
| Non-controlling interests |
|
|
|
|
| 9,473 |
|
|
|
|
|
|
| 2,706 |
|
|
| Total shareholders’ equity |
|
|
|
|
| 934,571 |
|
|
|
|
|
|
| 814,926 |
|
|
| Total liabilities and shareholders’ equity |
|
|
| $ |
| 2,526,507 |
|
|
|
|
| $ |
| 2,113,284 |
|
|
| MarineMax, Inc. and Subsidiaries Segment Financial Information (Amounts in thousands) (Unaudited) |
|
|
|
|
| Three Months Ended |
|
|
|
|
| December 31, |
|
|
|
|
|
|
| 2023 |
|
|
|
|
|
|
| 2022 |
|
|
| Revenue: |
|
|
|
|
|
|
|
|
| Retail Operations |
|
|
| $ |
| 524,085 |
|
|
|
|
| $ |
| 502,386 |
|
|
| Product Manufacturing |
|
|
|
|
| 46,128 |
|
|
|
|
|
|
| 56,326 |
|
|
| Elimination of intersegment revenue |
|
|
|
|
| (42,939 |
| ) |
|
|
|
|
| (50,785 |
| ) |
| Revenue |
|
|
| $ |
| 527,274 |
|
|
|
|
| $ |
| 507,927 |
|
|
| Income from operations: |
|
|
|
|
|
|
|
|
| Retail Operations |
|
|
| $ |
| 14,806 |
|
|
|
|
| $ |
| 36,728 |
|
|
| Product Manufacturing |
|
|
|
|
| 3,970 |
|
|
|
|
|
|
| 6,502 |
|
|
| Intersegment adjustments |
|
|
|
|
| 223 |
|
|
|
|
|
|
| (6,730 |
| ) |
| Income from operations |
|
|
| $ |
| 18,999 |
|
|
|
|
| $ |
| 36,500 |
|
|
| MarineMax, Inc. and Subsidiaries Supplemental Financial Information (Amounts in thousands, except share and per share data) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
|
|
|
|
| December 31, |
|
|
|
|
|
|
| 2023 |
|
|
|
|
|
|
| 2022 |
|
|
| Net income attributable to MarineMax, Inc. |
|
|
| $ |
| 930 |
|
|
|
|
| $ |
| 19,690 |
|
|
| Transaction costs (1) |
|
|
|
|
| 3,106 |
|
|
|
|
|
|
| 6,036 |
|
|
| Intangible amortization (2) |
|
|
|
|
| 1,734 |
|
|
|
|
|
|
| 1,705 |
|
|
| Change in fair value of contingent consideration (3) |
|
|
|
|
| 219 |
|
|
|
|
|
|
| 1,047 |
|
|
| Hurricane (recoveries) expenses |
|
|
|
|
| (289 |
| ) |
|
|
|
|
| 1,494 |
|
|
| Tax adjustments for items noted above (4) |
|
|
|
|
| (1,259 |
| ) |
|
|
|
|
| (2,704 |
| ) |
| Adjusted net income attributable to MarineMax, Inc. |
|
|
| $ |
| 4,441 |
|
|
|
|
| $ |
| 27,268 |
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted net income per common share |
|
|
| $ |
| 0.04 |
|
|
|
|
| $ |
| 0.89 |
|
|
| Transaction costs (1) |
|
|
|
|
| 0.13 |
|
|
|
|
|
|
| 0.27 |
|
|
| Intangible amortization (2) |
|
|
|
|
| 0.08 |
|
|
|
|
|
|
| 0.08 |
|
|
| Change in fair value of contingent consideration (3) |
|
|
|
|
| 0.01 |
|
|
|
|
|
|
| 0.05 |
|
|
| Hurricane (recoveries) expenses |
|
|
|
|
| (0.01 |
| ) |
|
|
|
|
| 0.07 |
|
|
| Tax adjustments for items noted above (4) |
|
|
|
|
| (0.06 |
| ) |
|
|
|
|
| (0.12 |
| ) |
| Adjusted diluted net income per common share |
|
|
| $ |
| 0.19 |
|
|
|
|
| $ |
| 1.24 |
|
|
| (1) Transactions costs relate to acquisition transaction and integration 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) Adjustments for taxes for items are calculated based on the effective tax rate for each respective period presented, the jurisdiction of the adjustment and before discrete items. |
|
|
|
|
| Three Months Ended |
|
|
|
|
| December 31, |
|
|
|
|
|
|
| 2023 |
|
|
|
|
|
|
| 2022 |
|
|
| Net income attributable to MarineMax, Inc. |
|
|
| $ |
| 930 |
|
|
|
|
| $ |
| 19,690 |
|
|
| Interest expense (excluding floor plan) |
|
|
|
|
| 7,756 |
|
|
|
|
|
|
| 6,366 |
|
|
| Income tax (benefit) provision |
|
|
|
|
| (211 |
| ) |
|
|
|
|
| 7,029 |
|
|
| Depreciation and amortization |
|
|
|
|
| 10,932 |
|
|
|
|
|
|
| 9,118 |
|
|
| Stock-based compensation expense |
|
|
|
|
| 5,419 |
|
|
|
|
|
|
| 4,845 |
|
|
| Transaction costs |
|
|
|
|
| 3,106 |
|
|
|
|
|
|
| 6,036 |
|
|
| Change in fair value of contingent consideration |
|
|
|
|
| 219 |
|
|
|
|
|
|
| 1,047 |
|
|
| Hurricane (recoveries) expenses |
|
|
|
|
| (289 |
| ) |
|
|
|
|
| 1,494 |
|
|
| Foreign currency |
|
|
|
|
| (1,216 |
| ) |
|
|
|
|
| (2,430 |
| ) |
| Adjusted EBITDA |
|
|
| $ |
| 26,646 |
|
|
|
|
| $ |
| 53,195 |
|
|
Non-GAAP Financial Measures
This press release, along with the above Supplemental Financial Information table, contains “Adjusted net income” and “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization” (“Adjusted EBITDA”), 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 and acquisition costs. Acquisition contingent consideration and acquisition 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240124477777/en/
Investors: Mike McLamb
Chief Financial Officer
MarineMax, Inc.
727-531-1700
Scott Solomon or Laura Resag
Sharon Merrill Advisors
investors@marinemax.com