~ Posts Record Revenue and Strong Margins on
Continued Execution of Growth Strategy ~
~ Updates Fiscal 2023 Guidance ~
~ Q3 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 fiscal third quarter ended June 30, 2023.
Fiscal 2023 Third Quarter Highlights
- Record revenue of $721.8 million
- Strong gross margin of 33.8%
- Net income of $44.4 million, or diluted EPS of $1.98; Adjusted
diluted EPS of $2.07
- Adjusted EBITDA of $83.5 million
- IGY Marinas contributes to Company growth
- Completes acquisition of C&C Boat Works
CEO & President Commentary
“Our Team outperformed our expectations in the third quarter,
highlighted by record revenue, solid earnings, and strong cash
flows. Robust consumer demand and enthusiasm for boating,
particularly in the premium segment, fueled new and used boat
revenue and resulted in a modest increase in same-store sales in
the quarter,” stated MarineMax Chief Executive Officer and
President Brett McGill. “We continue to execute on our strategy to
structurally enhance our margin profile through premium products,
services and experiences that enable customers to enjoy the boating
lifestyle. While the marine industry is seeing a return to
seasonality that led to incrementally more aggressive retail
pricing during the quarter, our margins remained healthy,
strengthened by the more profitable business lines in our
integrated marine portfolio, as well as strategic acquisitions such
as IGY Marinas.
“The addition of IGY Marinas is significantly enhancing our
worldwide reach while creating opportunities for synergies with our
other superyacht services offerings,” Mr. McGill continued.
“Capitalizing on our strong balance sheet, in the quarter we also
added C&C Boat Works of Minnesota to the MarineMax family. With
C&C’s significant storage capabilities, combined with our
nearby existing operations, we are better able to serve the vibrant
Minnesota boating community.”
Fiscal 2023 Third Quarter Results
Revenue in the fiscal 2023 third quarter increased to a record
$721.8 million from $688.5 million in the comparable period last
year. The 4.8% top-line growth was driven primarily by the
acquisition of IGY Marinas, which the Company acquired in October
2022, increased manufacturing revenue and stronger new and used
boat revenue. Same-store sales increased slightly in the third
quarter compared with a decline of 5% a year ago. IGY Marinas and
boat manufacturing revenue are not included in the same-store sales
comparison.
Gross profit increased 3.1% to $243.8 million from $236.5
million in the prior-year period. Gross profit margin of 33.8%
decreased 50 basis points from 34.3% in the fiscal 2022 third
quarter, primarily due to revenue mix.
Selling, general, and administrative expenses totaled $169.2
million, or 23.4% of revenue, in the third quarter compared with
$141.2 million, or 20.5% of revenue, for the same period last year,
primarily reflecting the addition of IGY Marinas.
Interest expense increased to $14.8 million in the third quarter
from $1.0 million in the prior-year period, reflecting higher
interest rates as well as the increase in long-term debt associated
with the IGY Marinas acquisition and greater inventory.
Net income in the third quarter was $44.4 million, or $1.98 per
diluted share, compared with net income of $70.2 million, or $3.17
per diluted share, in the same period last year.
Adjusted net income1 in the third quarter was $46.5 million, or
$2.07 per diluted share, compared with $71.5 million, or $3.23 per
diluted share, in the prior-year period. Adjusted EBITDA1 for the
quarter ended June 30, 2023 was $83.5 million, compared with $105.5
million for the same period last year.
Fiscal 2023 Guidance
Based on results to date, current business conditions, retail
trends and other factors, the Company is narrowing its fiscal year
2023 guidance for Adjusted earnings2 to a range of $5.10 to $5.50
per diluted share, compared with a prior range of $4.90 to $5.50
per diluted share. The Company also is narrowing its fiscal year
2023 guidance for Adjusted EBITDA2 to a range of $225 million to
$245 million, compared with a prior range of $220 million to $245
million. These expectations do not consider, or give effect for,
among other things, material acquisitions that may be completed by
the Company during fiscal 2023 or other unforeseen events,
including changes in global economic conditions.
Conference Call Information
MarineMax will discuss its fiscal 2023 third quarter results and
outlook 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 130 locations
worldwide, including 78 dealerships and 59 marinas. 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 our strategy to
structurally enhance our margin profile and our fiscal 2023
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, 2022 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
earnings 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
Nine Months Ended
June 30,
June 30,
2023
2022
2023
2022
Revenue
$
721,844
$
688,537
$
1,800,111
$
1,771,334
Cost of sales
478,036
452,064
1,168,497
1,162,347
Gross profit
243,808
236,473
631,614
608,987
Selling, general, and administrative
expenses
169,227
141,173
465,128
394,702
Income from operations
74,581
95,300
166,486
214,285
Interest expense
14,798
1,008
37,562
2,299
Income before income tax provision
59,783
94,292
128,924
211,986
Income tax provision
15,455
24,113
34,685
52,357
Net income
44,328
70,179
94,239
159,629
Less: Net (loss) income attributable to
non-controlling interests
(88
)
—
98
—
Net income attributable to MarineMax,
Inc.
$
44,416
$
70,179
$
94,141
$
159,629
Basic net income per common share
$
2.03
$
3.26
$
4.31
$
7.34
Diluted net income per common share
$
1.98
$
3.17
$
4.22
$
7.11
Weighted average number of common shares
used in computing net income per common share:
Basic
21,885,400
21,524,315
21,831,350
21,761,811
Diluted
22,427,443
22,173,273
22,321,269
22,455,828
MarineMax, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(Amounts in thousands)
(Unaudited)
June 30,
June 30,
2023
2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
226,134
$
281,351
Accounts receivable, net
95,018
61,863
Inventories
739,114
374,217
Prepaid expenses and other current
assets
24,881
18,566
Total current assets
1,085,147
735,997
Property and equipment, net
521,637
226,647
Operating lease right-of-use assets,
net
135,452
100,127
Goodwill
562,277
236,713
Other intangible assets, net
40,968
11,481
Other long-term assets
34,814
9,104
Total assets
$
2,380,295
$
1,320,069
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
47,202
$
56,533
Contract liabilities (customer
deposits)
97,785
138,375
Accrued expenses
118,576
97,088
Short-term borrowings
514,023
107,222
Current maturities on long-term debt
32,409
3,028
Current operating lease liabilities
9,967
10,323
Total current liabilities
819,962
412,569
Long-term debt, net of current
maturities
399,229
45,834
Noncurrent operating lease liabilities
119,759
92,774
Deferred tax liabilities, net
54,449
17,805
Other long-term liabilities
84,539
8,347
Total liabilities
1,477,938
577,329
SHAREHOLDERS' EQUITY:
Preferred stock
—
—
Common stock
29
29
Additional paid-in capital
320,383
300,411
Accumulated other comprehensive income
(loss)
3,245
(1,351
)
Retained earnings
724,808
592,307
Treasury stock
(148,656
)
(148,656
)
Total shareholders’ equity attributable to
MarineMax, Inc.
899,809
742,740
Non-controlling interests
2,548
—
Total shareholders’ equity
902,357
742,740
Total liabilities and shareholders’
equity
$
2,380,295
$
1,320,069
MarineMax, Inc. and
Subsidiaries
Segment Financial
Information
(Amounts in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
2023
2022
2023
2022
Revenue:
Retail Operations
$
687,168
$
657,930
$
1,707,049
$
1,690,172
Product Manufacturing
51,884
48,802
164,959
129,804
Elimination of intersegment revenue
(17,208
)
(18,195
)
(71,897
)
(48,642
)
Revenue
$
721,844
$
688,537
$
1,800,111
$
1,771,334
Income from operations:
Retail Operations
$
68,050
$
90,655
$
158,514
$
204,124
Product Manufacturing
5,089
5,903
17,834
13,733
Intersegment adjustments
1,442
(1,258
)
(9,862
)
(3,572
)
Income from operations
$
74,581
$
95,300
$
166,486
$
214,285
MarineMax, Inc. and
Subsidiaries
Supplemental Financial
Information
(Amounts in thousands, except
share and per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net income attributable to MarineMax,
Inc.
$
44,416
$
70,179
$
94,141
$
159,629
Acquisition costs (1)
111
939
6,227
1,456
Intangible amortization (2)
1,925
630
5,524
1,769
Change in fair value of contingent
consideration (3)
1,211
141
3,441
375
Hurricane expenses (recoveries)
(452
)
—
(644
)
—
Gain on acquisition of equity investment
(4)
—
—
(5,129
)
—
Tax adjustments for items noted above
(5)
(724
)
(438
)
(2,534
)
(889
)
Adjusted net income attributable to
MarineMax, Inc.
$
46,487
$
71,451
$
101,026
$
162,340
Diluted net income per common share
$
1.98
$
3.17
$
4.22
$
7.11
Acquisition costs (1)
—
0.04
0.28
0.06
Intangible amortization (2)
0.09
0.03
0.25
0.08
Change in fair value of contingent
consideration (3)
0.05
0.01
0.15
0.02
Hurricane expenses (recoveries)
(0.02
)
—
(0.03
)
—
Gain on acquisition of equity investment
(4)
—
—
(0.23
)
—
Tax adjustments for items noted above
(5)
(0.03
)
(0.02
)
(0.11
)
(0.04
)
Adjusted diluted net income per common
share
$
2.07
$
3.23
$
4.53
$
7.23
(1) Acquisition costs relate to
acquisition transaction 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) Represents gain on a previously held
equity investment upon acquisition of the entire business.
(5) Adjustments for taxes for items are
calculated based on the effective tax rate for each respective
period presented and the jurisdiction of the adjustment.
Three Months Ended
Nine Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net income attributable to MarineMax,
Inc.
$
44,416
$
70,179
$
94,141
$
159,629
Interest expense (excluding floor
plan)
7,485
749
20,669
1,374
Income tax provision
15,455
24,113
34,685
52,357
Depreciation and amortization
9,419
4,948
27,391
14,252
Stock-based compensation expense
5,490
3,935
15,703
11,110
Acquisition costs
111
939
6,227
1,456
Gain on acquisition of equity
investment
—
—
(5,129
)
—
Change in fair value of contingent
consideration
1,211
141
3,441
375
Hurricane expenses (recoveries)
(452
)
—
(644
)
—
Foreign currency
352
508
(2,451
)
549
Adjusted EBITDA
$
83,487
$
105,512
$
194,033
$
241,102
Non-GAAP Financial Measures
This press release, along with the above Supplemental Financial
Information table, contains “Adjusted net income,” “Adjusted
diluted EPS” 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 guidance for fiscal year
2023 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/20230726108590/en/
Investor Contacts: Mike McLamb Chief Financial Officer
MarineMax, Inc. 727-531-1700
Scott Solomon or Laura Resag Sharon Merrill Associates, Inc.
857-383-2409 investors@marinemax.com
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