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MarineMax Reports Record Fourth Quarter and Fiscal Year Results

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~Achieves Highest Revenue and Earnings in Company’s History~

~Revenue Approaches $400 Million in Fourth Quarter; 33% Same-Store Sales Growth~

~Fourth Quarter Earnings Per Share More than Tripled to $1.13; Adjusted EPS $1.19~

~Fiscal 2020 Revenue Exceeds $1.5 Billion; 25% Same-Store Sales Growth~

~Fiscal 2020 Earnings Per Share More than Doubled to $3.37; Adjusted EPS $3.42~

~Company Provides Annual Guidance for Fiscal 2021~

MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat and yacht retailer, today announced record results for its fourth quarter and full year ended September 30, 2020.

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 to $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
September 30,

Fiscal Year Ended
September 30,

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
shares used in computing net income per
common share:

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,
2020

September 30,
2019

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
September 30,

Fiscal Year Ended
September 30,

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201028005180/en/

Contacts

Michael H. McLamb
Chief Financial Officer
727-531-1700

Media:
Abbey Heimensen
MarineMax, Inc.

Investors:
Brad Cohen or Dawn Francfort
ICR, LLC
investorrelations@marinemax.com