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MarineMax Reports Record 3rd Quarter

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MarineMax Reports Record 3rd Quarter

~Record June Quarter Revenue Grows 34% to Almost $667 Million~

~Same-Store Sales Grew 6% on Top of 37% in the Prior Year~

~Gross Margin Expands to Nearly 31% – A Record For The June Quarter~

~Record June Quarter Diluted EPS Increases 64% to $2.59~

~Raises Fiscal Year 2021 Guidance~

CLEARWATER, Fla.–(BUSINESS WIRE)– MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat and yacht retailer, today announced results for its third quarter ended June 30, 2021.

Revenue grew 34%, or over $168 million, to $666.3 million for the quarter ended June 30, 2021 from $498.3 million in the comparable period last year. Same-store sales grew 6% on top of a 37% increase in the comparable quarter last year. The overall revenue growth was driven by meaningful contributions from its recent strategic acquisitions as well as the ongoing robust demand for boating. The Company’s significant geographic and product diversification and the effective utilization of its digital platform have contributed to the sustained growth. These factors resulted in net income and earnings per diluted share rising over 70% and 64% to $59.6 million and $2.59, respectively. This compares to net income of $34.9 million and earnings per diluted share of $1.58 in the comparable period last year.

For the nine months ended June 30, 2021, revenue was up over 44% to $1.6 billion compared with $1.1 billion for the same period last year. Same-store sales increased approximately 21%, on top of 22% growth for the same period last year. Net income for the nine months ended June 30, 2021, rose over 149% to $122.2 million, or $5.33 per diluted share, compared with $49.1 million, or $2.23 per diluted share for the comparable period last year.

W. Brett McGill, Chief Executive Officer and President, stated, “We once again delivered record sales and earnings growth in the quarter, as demand for the boating lifestyle remained strong and our team continued to execute on our strategy of driving our higher margin businesses, resulting in our strongest quarterly operating margin to date. We are proud of our ongoing market share gains as we benefit from our diversified portfolio, premium brands, exceptional customer service, investments in technology, global market presence and our enthusiastic customer base that wants to enjoy active boating experiences with family and friends.”

Mr. McGill continued, “Our deep manufacturer relationships, industry leading inventory management and valuable real estate locations position us well to continue to gain share, as evidenced by our ability to continue to generate strong same-store-sales in a lean inventory environment. With one of the strongest balance sheets in the industry, we remain well capitalized to continue to make strategic accretive acquisitions to further enhance our geographic presence, to add to our marina, storage and service offerings and to further grow our higher margin businesses. Recently, we were pleased to add Cruiser Yachts and Nisswa Marine to our portfolio, illustrating our focus on accretive, higher margin businesses with strong operating teams. Based on orders and inventory, our pricing model and our team’s commitment to executing on our strategic initiatives, we will capture additional growth in the years ahead, as the world’s preferred boating and yacht retailer.”

At June 30, 2021, the Company’s financial capacity, consisting of cash and cash equivalents, along with available borrowings under its credit facilities, exceeded $329 million.

Updated 2021 Guidance

Based on current business conditions, retail trends and other factors, the Company is raising its fiscal year 2021 guidance for earnings per diluted share to the range of $6.40 to $6.55 from $5.50 to $5.65, which was previously increased from original guidance of $4.00 to $4.20 per diluted share. This compares to a non-GAAP adjusted, but fully taxed, earnings per diluted share of $3.42 in fiscal 2020. (Please see the Company’s fiscal 2020 earnings release dated October 28, 2020 for a reconciliation of this non-GAAP figure to the applicable GAAP figure) These expectations do not consider, or give effect for, material acquisitions that may be completed by the Company during fiscal 2021 or other unforeseen events, including changes in global economic conditions.

Reportable Segments

Effective May 2021, the Company’s reportable segments changed as a result of our acquisition of Cruisers Yachts, a manufacturer of yachts. Whereas we previously had only one segment, we now report our operations through two new reportable segments: Retail Operations and Product Manufacturing. The elimination of intersegment revenue and income is due to sales of Cruisers Yachts through our select retail dealership locations. The financial performance of our reportable segments will now be disclosed quarterly beginning with this quarter ended June 30, 2021.

About MarineMax

MarineMax is the world’s largest recreational boat and yacht retailer, selling new and used recreational boats, yachts and related marine products and services, as well as providing yacht brokerage and charter services. MarineMax has over 100 locations worldwide, including 78 retail dealership locations, which includes 31 marinas or storage operations. Through Fraser Yachts and Northrop and Johnson, the Company also is the largest super-yacht services provider, operating locations across the globe. Cruisers Yachts, a MarineMax company, manufacturers boats and yachts with sales through our select retail dealership locations and through independent dealers. MarineMax provides finance and insurance services through wholly owned subsidiaries and operates MarineMax Vacations in Tortola, British Virgin Islands. The Company also operates Boatyard, a pioneering digital platform that enhances the boating experience. MarineMax is a New York Stock Exchange-listed company (NYSE:HZO). 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 third quarter ended June 30, 2021; the Company’s capitalization; the Company’s ability to make strategic accretive acquisitions, further enhance its geographic presence, add to its offerings, and further grow its higher margin businesses; the Company’s expectation to capture additional growth in the years ahead; 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 of the recently-acquired businesses, the Company’s ability to integrate acquisitions into existing operations, 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, potential supply chain constraints and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2020 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 SubsidiariesCondensed Consolidated Statements of Operations(Amounts in thousands, except share and per share data)(Unaudited)
 
 Three Months Ended
June 30,
 Nine Months Ended
June 30,
 2021 2020 2021 2020
        
Revenue$666,328 $498,304 $1,600,947 $1,110,951
Cost of sales 461,654  374,851  1,116,066  828,704
Gross profit 204,674  123,453  484,881  282,247
        
Selling, general, and administrative expenses 123,766  74,838  319,120  208,284
Income from operations 80,908  48,615  165,761  73,963
        
Interest expense 639  2,133  2,999  8,490
Income before income tax provision 80,269  46,482  162,762  65,473
        
Income tax provision 20,651  11,555  40,609  16,422
Net income$59,618 $34,927 $122,153 $49,051
        
Basic net income per common share$2.69 $1.62 $5.53 $2.28
        
Diluted net income per common share$2.59 $1.58 $5.33 $2.23
        
Weighted average number of common shares used in computing net income per common share:       
        
Basic 22,132,915  21,499,408  22,100,190  21,491,117
Diluted 23,037,679  22,045,900  22,922,526  21,965,355
MarineMax, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Amounts in thousands)(Unaudited)
 
 June 30,
2021
 June 30,
2020
ASSETS
CURRENT ASSETS:   
Cash and cash equivalents$200,121  $86,919 
Accounts receivable, net 60,195   69,478 
Inventories, net 209,418   314,096 
Prepaid expenses and other current assets 18,316   11,133 
Total current assets 488,050   481,626 
    
Property and equipment, net 166,058   141,897 
Operating lease right-of-use assets, net 104,641   39,279 
Goodwill and other intangible assets, net 186,691   65,404 
Other long-term assets 10,650   7,754 
Total assets$956,090  $735,960 
    
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:   
Accounts payable$28,741  $39,441 
Contract liabilities (customer deposits) 86,704   30,106 
Accrued expenses 89,696   47,775 
Short-term borrowings 2,861   147,049 
Current maturities on long-term debt 3,293    
Current operating lease liabilities 10,275   7,262 
Total current liabilities 221,570   271,633 
    
Long-term debt, net of current maturities 48,374    
Noncurrent operating lease liabilities 96,830   34,248 
Deferred tax liabilities, net 8,419   4,221 
Other long-term liabilities 8,126   833 
Total liabilities 383,319   310,935 
    
STOCKHOLDERS’ EQUITY:   
Preferred stock     
Common stock 28   28 
Additional paid-in capital 288,923   276,606 
Accumulated other comprehensive income (loss) 1,264   (130)
Retained earnings 399,852   252,116 
Treasury stock (117,296)  (103,595)
Total stockholders’ equity 572,771   425,025 
Total liabilities and stockholders’ equity$956,090  $735,960 
MarineMax, Inc. and SubsidiariesSegment Financial Information(Amounts in thousands)(Unaudited)
 
 Three Months Ended
June 30,
 Nine Months Ended
June 30,
 2021 2020 2021 2020
        
Revenue:       
Retail Operations$656,826  $498,304 $1,591,445  $1,110,951
Product Manufacturing 20,417     20,417   
Elimination of intersegment revenue (10,915)    (10,915)  
Revenue$666,328  $498,304 $1,600,947  $1,110,951
        
Income from operations:       
Retail Operations$79,988  $48,615 $164,841  $73,963
Product Manufacturing 3,521     3,521   
Elimination of intersegment income (2,601)    (2,601)  
Income from operations$80,908  $48,615 $165,761  $73,963

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