~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. (NYSE: 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.
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MarineMax, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
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|
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Three Months Ended March 31,
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Six Months Ended March 31,
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2019
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2018
|
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2019
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2018
|
|
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|
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|
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Revenue
|
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$
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303,586
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$
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270,605
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|
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$
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545,523
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|
|
$
|
507,526
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Cost of sales
|
|
|
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229,384
|
|
|
|
201,312
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|
|
|
407,843
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|
|
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378,984
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Gross profit
|
|
|
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74,202
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|
|
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69,293
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|
|
|
137,680
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|
|
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128,542
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|
|
|
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|
|
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|
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Selling, general, and administrative expenses
|
|
|
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63,976
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|
|
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58,659
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|
|
|
118,468
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|
|
|
108,905
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Income from operations
|
|
|
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10,226
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|
|
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10,634
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|
|
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19,212
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|
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19,637
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|
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Interest expense
|
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3,033
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|
|
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2,840
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|
|
|
5,549
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|
|
|
5,382
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Income before income tax provision
|
|
|
|
7,193
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|
|
|
7,794
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|
|
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13,663
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|
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14,255
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Income tax provision
|
|
|
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1,890
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|
|
|
1,610
|
|
|
|
3,450
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|
|
|
3,859
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Net income
|
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|
$
|
5,303
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|
|
$
|
6,184
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|
|
$
|
10,213
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|
|
$
|
10,396
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|
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Basic net income per common share
|
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$
|
0.23
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$
|
0.28
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$
|
0.45
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$
|
0.47
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Diluted net income per common share
|
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$
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0.23
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$
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0.27
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$
|
0.44
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|
|
$
|
0.46
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Weighted average number of common shares used in computing net
income per common share:
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Basic
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22,836,571
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22,173,194
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22,807,756
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|
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22,079,065
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Diluted
|
|
|
|
23,417,688
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|
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22,940,594
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|
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23,408,873
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|
|
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22,825,598
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MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
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March 31, 2019
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March 31, 2018
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ASSETS
|
CURRENT ASSETS:
|
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Cash and cash equivalents
|
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$
|
63,598
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$
|
57,103
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Accounts receivable, net
|
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|
45,505
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|
|
|
|
35,844
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Inventories, net
|
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454,557
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|
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|
423,907
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Prepaid expenses and other current assets
|
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8,839
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|
|
|
|
5,093
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Total current assets
|
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|
572,499
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|
|
|
521,947
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Property and equipment, net
|
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|
140,883
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|
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|
|
129,878
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Goodwill and other long-term assets, net
|
|
|
|
33,876
|
|
|
|
|
31,805
|
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Deferred tax assets, net
|
|
|
|
1,767
|
|
|
|
|
6,524
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Total assets
|
|
|
$
|
749,025
|
|
|
|
$
|
690,154
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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CURRENT LIABILITIES:
|
|
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Accounts payable
|
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|
$
|
11,626
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|
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$
|
17,914
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Customer deposits
|
|
|
|
33,330
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|
|
|
|
19,972
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Accrued expenses
|
|
|
|
37,098
|
|
|
|
|
31,137
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Short-term borrowings
|
|
|
|
297,530
|
|
|
|
|
299,157
|
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Total current liabilities
|
|
|
|
379,584
|
|
|
|
|
368,180
|
|
|
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Long-term liabilities
|
|
|
|
952
|
|
|
|
|
3,037
|
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Total liabilities
|
|
|
|
380,536
|
|
|
|
|
371,217
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|
|
|
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STOCKHOLDERS' EQUITY:
|
|
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Preferred stock
|
|
|
|
—
|
|
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|
—
|
|
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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