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MarineMax Reports Second Quarter Fiscal 2019 Results

CLEARWATER, Fla.--(BUSINESS WIRE)--

~Quarterly Revenue Grew Over 12% to $304 Million~

~12% Quarterly Same-Store Sales Growth~

~Quarterly Earnings Per Diluted Share $0.23~

~ Annual Fiscal 2019 Guidance Updated~

MarineMax, Inc. (HZO), the nation’s largest recreational boat and yacht retailer, today announced results for its fiscal second quarter ended March 31, 2019.

Revenue grew over 12% to $303.6 million for the quarter ended March 31, 2019 from $270.6 million for the comparable quarter last year. Same-store sales for the quarter increased 12% on top of 8% last year. Income before taxes was $7.2 million for the quarter ended March 31, 2019, compared to $7.8 million for the same quarter last year. Net income was $5.3 million, or $0.23 per diluted share, for the quarter ended March 31, 2019 compared to net income of $6.2 million, or $0.27 per diluted share, for the comparable quarter last year. Net income in the quarter ended March 31, 2018 benefitted from certain tax credits that represented approximately $0.4 million, or $0.02 per diluted share.

The Company’s results for the fiscal second quarter 2019 were impacted by inclement weather in key markets that potentially delayed sales and additional expenses were incurred to drive the substantial sales growth, including growth in larger product. Furthermore, the mix of product and softer than anticipated unit sales affected profitability in the quarter.

For the six-months ended March 31, 2019, revenue increased approximately 8% to $545.5 million compared with $507.5 million for the same period last year. Same-store sales grew approximately 7% in the first half of fiscal year 2019 on top of 4% last year. Income before taxes was $13.7 million for the six-months ended March 31, 2019 compared to $14.3 million for the same period last year. Net income for the six months ended March 31, 2019 was $10.2 million, or $0.44 per diluted share, compared with net income of $10.4 million, or $0.46 per diluted share, for the comparable period last year. Net income in the first half of 2018 benefitted from certain tax credits that represented approximately $0.4 million, or $0.02 per diluted share.

W. Brett McGill, Chief Executive Officer and President, stated, “Our team succeeded in driving strong sales growth in the quarter, even as we and the industry incurred challenges that included rougher than normal winter weather in many of our markets. Based on preliminary industry data, we believe our same store sales performance in the quarter drove continued market share gains. Our proactive decision to invest to capture additional sales impacted both our margins and profitability. As we enter our most active season, we have the right products in stock along with a large on-order backlog that provides us additional momentum moving into the June quarter, historically our largest quarter.”

Mr. McGill continued, “With this backdrop, a committed team and an enthusiastic customer base, along with our recent expansion in the high growth market of Texas, MarineMax is well-positioned as the nation’s preferred boating and yacht retailer. We are confident that demand for the boating lifestyle remains strong and resilient. Nevertheless, it is important for our Company to enhance its efforts going forward to more effectively align costs with the current environment, while further refining operations to produce improved operating margins and cashflow.”

2019 Guidance

Based on current business conditions, retail trends, its most recent results and other factors, the Company is updating its annual fiscal 2019 expectations for fully taxed earnings per diluted share to range from $1.75 to $1.85 compared to its previous range of $1.85 to $1.95. These expectations do not take into account, or give effect for future material acquisitions that may be completed by the Company during the fiscal year or other unforeseen events.

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, Ocean Alexander, Galeon, Grady-White, Harris, Bennington, Crest, MasterCraft, NauticStar, Scout, Sailfish, Scarab Jet Boats, 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 67 retail locations in Alabama, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina and Texas 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 second quarter ended March 31, 2019; the Company’s momentum moving into the June quarter; the Company’s positioning; the Company’s confidence that demand for the boating lifestyle remains strong and resilient; the Company’s efforts going forward to more effectively align costs with the current environment, while further refining operations to produce improved operating margins and cashflow; and the Company's fiscal 2019 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, general economic conditions, as well as those within our industry, the level of consumer spending, the Company’s ability to integrate acquisitions into existing operations, the continued recovery of the industry, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2018 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,
  2019       2018   2019       2018
 
Revenue $ 303,586 $ 270,605 $ 545,523 $ 507,526
Cost of sales   229,384   201,312   407,843   378,984
Gross profit 74,202 69,293 137,680 128,542
 
Selling, general, and administrative expenses   63,976   58,659   118,468   108,905
Income from operations 10,226 10,634 19,212 19,637
 
Interest expense   3,033   2,840   5,549   5,382
Income before income tax provision 7,193 7,794 13,663 14,255
 
Income tax provision   1,890   1,610   3,450   3,859
Net income $ 5,303 $ 6,184 $ 10,213 $ 10,396
 
Basic net income per common share $ 0.23 $ 0.28 $ 0.45 $ 0.47
 
Diluted net income per common share $ 0.23 $ 0.27 $ 0.44 $ 0.46
 
Weighted average number of common shares used in computing net income per common share:
 
Basic   22,836,571   22,173,194   22,807,756   22,079,065
Diluted   23,417,688   22,940,594   23,408,873   22,825,598
 

MarineMax, Inc. and Subsidiaries

 Condensed Consolidated Balance Sheets

 (Amounts in thousands)

 (Unaudited)

       
March 31,
2019
March 31,
2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 63,598 $ 57,103
Accounts receivable, net 45,505 35,844
Inventories, net 454,557 423,907
Prepaid expenses and other current assets   8,839     5,093  
Total current assets 572,499 521,947
 
Property and equipment, net 140,883 129,878
Goodwill and other long-term assets, net 33,876 31,805
Deferred tax assets, net   1,767     6,524  
Total assets $ 749,025   $ 690,154  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 11,626 $ 17,914
Customer deposits 33,330 19,972
Accrued expenses 37,098 31,137
Short-term borrowings   297,530     299,157  
Total current liabilities 379,584 368,180
 
Long-term liabilities   952     3,037  
Total liabilities 380,536 371,217
 
STOCKHOLDERS' EQUITY:
Preferred stock
Common stock 27 27
Additional paid-in capital 267,264 257,011
Retained earnings 176,683 137,155
Treasury stock   (75,485 )   (75,256 )
Total stockholders’ equity   368,489     318,937  
Total liabilities and stockholders’ equity $ 749,025   $ 690,154  
 

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