MarineMax Reports Fiscal 2025 First Quarter Results
~ December Quarter Revenue of
~ December Quarter Net Income of
~ Gross Margin of
~ Same-Store Sales Decrease of
~ Company Reaffirms FY 2025 Guidance ~
~ Earnings Conference Call at 10:00 a.m. ET Today ~
Fiscal 2025 First Quarter Summary
-
December quarter revenue of
$468.5 million -
Same-store sales decrease of
11% -
Gross profit margin of
36.2% -
Net income of
$18.1 million $0.77 $0.17 -
Adjusted EBITDA1 of
$26.1 million
CEO & President Commentary
“Our December quarter revenue and same-store sales performance reflected a combination of the soft retail environment that affected the recreational boating industry throughout 2024, and the significant disruptions caused by Hurricanes Helene and Milton,” said Brett McGill, Chief Executive Officer and President of MarineMax. “With continued uncertainty in the economy, demand remained muted for much of the quarter, resulting in lower revenue and higher inventory at quarter-end compared with our expectations.
“Despite the macroeconomic headwinds, our consolidated gross profit margin strengthened, improving 290 basis points to
“Consistent with our strategy, we continued our expense-reduction initiatives in the first quarter, including the divestiture or closure of three locations,” McGill said. “Maintaining a focus on cost efficiency, while also keeping a strong balance sheet, will be central to our plans in fiscal 2025 as we work to enhance profitability and further strengthen our operational foundation.”
Fiscal 2025 First Quarter Results
Revenue in the fiscal 2025 first quarter decreased
Gross profit decreased
Selling, general, and administrative (SG&A) expenses totaled
Interest expense was
Net income in the fiscal 2025 first quarter was
Reaffirms Fiscal 2025 Guidance
Based on an ongoing assessment of the impact from Hurricanes Helene and Milton, current business conditions, retail trends and other factors, the Company continues to expect fiscal year 2025 Adjusted net income1,3 in the range of
“While economic conditions in the recreational marine industry remain challenging, we anticipate that the pace of activity improves as we move into the spring selling season,” McGill said. “Early activity at this year’s retail boat shows has been encouraging, and we believe that our position within the premium category of the segment will enable us to outperform the industry and more meaningfully grow as conditions improve.”
Conference Call Information
MarineMax will discuss its fiscal 2025 first quarter financial results 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 (
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 over 120 locations worldwide, including over 70 dealerships and 65 marina and storage facilities. 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, motor yachts, and Aviara luxury dayboats; 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,
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 resiliency to our industry’s challenges, our long-term strategy, our plans in fiscal 2025, our ability to enhance profitability and further strengthen our operational foundation, the timing of an assessment of the damage caused by Hurricanes Helene and Milton, and the Company’s fiscal 2025 Adjusted net income and Adjusted EBITDA 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 return to normal operations of the Company’s locations, the timing of and potential outcome of the Company’s long-term improvement plan, the estimated impact resulting from the Company’s cost-reduction initiatives, 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, 2024 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 |
|
|||||
|
|
December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Revenue |
|
$ |
468,461 |
|
|
$ |
527,274 |
|
Cost of sales |
|
|
298,807 |
|
|
|
351,793 |
|
Gross profit |
|
|
169,654 |
|
|
|
175,481 |
|
|
|
|
|
|
|
|
||
Selling, general, and administrative expenses |
|
|
130,682 |
|
|
|
156,482 |
|
Income from operations |
|
|
38,972 |
|
|
|
18,999 |
|
|
|
|
|
|
|
|
||
Interest expense |
|
|
18,745 |
|
|
|
18,365 |
|
Income before income tax provision (benefit) |
|
|
20,227 |
|
|
|
634 |
|
|
|
|
|
|
|
|
||
Income tax provision (benefit) |
|
|
2,103 |
|
|
|
(211 |
) |
Net income |
|
|
18,124 |
|
|
|
845 |
|
|
|
|
|
|
|
|
||
Less: Net income (loss) attributable to non-controlling interests |
|
|
58 |
|
|
|
(85 |
) |
Net income attributable to MarineMax, Inc. |
|
$ |
18,066 |
|
|
$ |
930 |
|
|
|
|
|
|
|
|
||
Basic net income per common share |
|
$ |
0.80 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
||
Diluted net income per common share |
|
$ |
0.77 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
||
Weighted average number of common shares used in computing
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Basic |
|
|
22,615,629 |
|
|
|
22,196,141 |
|
Diluted |
23,385,374 |
22,809,017 |
|
|||||
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2024 |
|
|
2023 |
|
||
ASSETS |
|
|
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
145,010 |
|
|
$ |
210,323 |
|
Accounts receivable, net |
|
|
83,272 |
|
|
|
94,601 |
|
Inventories |
|
|
1,035,183 |
|
|
|
876,233 |
|
Prepaid expenses and other current assets |
|
|
34,958 |
|
|
|
24,864 |
|
Total current assets |
|
|
1,298,423 |
|
|
|
1,206,021 |
|
Property and equipment, net |
|
|
535,903 |
|
|
|
532,492 |
|
Operating lease right-of-use assets, net |
|
|
142,741 |
|
|
|
140,785 |
|
Goodwill |
|
|
587,967 |
|
|
|
575,850 |
|
Other intangible assets, net |
|
|
38,493 |
|
|
|
38,958 |
|
Other long-term assets |
|
|
30,818 |
|
|
|
32,401 |
|
Total assets |
|
$ |
2,634,345 |
|
|
$ |
2,526,507 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
35,532 |
|
|
$ |
43,957 |
|
Contract liabilities (customer deposits) |
|
|
52,504 |
|
|
|
74,636 |
|
Accrued expenses |
|
|
164,145 |
|
|
|
112,417 |
|
Short-term borrowings |
|
|
795,170 |
|
|
|
664,858 |
|
Current maturities on long-term debt |
|
|
33,766 |
|
|
|
33,766 |
|
Current operating lease liabilities |
|
|
10,330 |
|
|
|
10,372 |
|
Total current liabilities |
|
|
1,091,447 |
|
|
|
940,006 |
|
Long-term debt, net of current maturities |
|
|
347,294 |
|
|
|
380,972 |
|
Noncurrent operating lease liabilities |
|
|
130,489 |
|
|
|
125,550 |
|
Deferred tax liabilities, net |
|
|
54,364 |
|
|
|
57,939 |
|
Other long-term liabilities |
|
|
7,550 |
|
|
|
87,469 |
|
Total liabilities |
|
|
1,631,144 |
|
|
|
1,591,936 |
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
30 |
|
|
|
29 |
|
Additional paid-in capital |
|
|
350,138 |
|
|
|
328,955 |
|
Accumulated other comprehensive (loss) income |
|
|
(1,993 |
) |
|
|
3,891 |
|
Retained earnings |
|
|
796,081 |
|
|
|
740,879 |
|
Treasury stock |
|
|
(150,797 |
) |
|
|
(148,656 |
) |
Total shareholders’ equity attributable to MarineMax, Inc. |
|
|
993,459 |
|
|
|
925,098 |
|
Non-controlling interests |
|
|
9,742 |
|
|
|
9,473 |
|
Total shareholders’ equity |
|
|
1,003,201 |
|
|
|
934,571 |
|
Total liabilities and shareholders’ equity |
|
$ |
2,634,345 |
|
|
$ |
2,526,507 |
|
MarineMax, Inc. and Subsidiaries
Segment Financial Information
(Amounts in thousands)
(Unaudited)
|
|
Three Months Ended |
|
|||||
|
|
December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Revenue: |
|
|
|
|
|
|
||
Retail Operations |
|
$ |
468,349 |
|
|
$ |
524,085 |
|
Product Manufacturing |
|
|
37,938 |
|
|
|
46,128 |
|
Elimination of intersegment revenue |
|
|
(37,826 |
) |
|
|
(42,939 |
) |
Revenue |
|
$ |
468,461 |
|
|
$ |
527,274 |
|
Income from operations: |
|
|
|
|
|
|
||
Retail Operations |
|
$ |
41,250 |
|
|
$ |
14,806 |
|
Product Manufacturing |
|
|
223 |
|
|
|
3,970 |
|
Intersegment adjustments |
|
|
(2,501 |
) |
|
|
223 |
|
Income from operations |
|
$ |
38,972 |
|
|
$ |
18,999 |
|
MarineMax, Inc. and Subsidiaries
Supplemental Financial Information
(Amounts in thousands, except share and per share data)
(Unaudited)
|
|
Three Months Ended |
|
|||||
|
|
December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Net income attributable to MarineMax, Inc. |
|
$ |
18,066 |
|
|
$ |
930 |
|
Transaction and other costs (1) |
|
|
221 |
|
|
|
3,106 |
|
Intangible amortization (2) |
|
|
1,428 |
|
|
|
1,734 |
|
Change in fair value of contingent consideration (3) |
|
|
(25,817 |
) |
|
|
219 |
|
Weather expenses (recoveries) |
|
|
4,968 |
|
|
|
(289 |
) |
Restructuring expense (4) |
|
|
503 |
|
|
|
— |
|
Tax adjustments for items noted above (5) |
|
|
4,693 |
|
|
|
(1,259 |
) |
Adjusted net income attributable to MarineMax, Inc. |
|
$ |
4,062 |
|
|
$ |
4,441 |
|
|
|
|
|
|
|
|
||
Diluted net income per common share |
|
$ |
0.77 |
|
|
$ |
0.04 |
|
Transaction and other costs (1) |
|
|
0.01 |
|
|
|
0.13 |
|
Intangible amortization (2) |
|
|
0.06 |
|
|
|
0.08 |
|
Change in fair value of contingent consideration (3) |
|
|
(1.10 |
) |
|
|
0.01 |
|
Weather expenses (recoveries) |
|
|
0.21 |
|
|
|
(0.01 |
) |
Restructuring expense (4) |
|
|
0.02 |
|
|
|
— |
|
Tax adjustments for items noted above (5) |
|
|
0.20 |
|
|
|
(0.06 |
) |
Adjusted diluted net income per common share |
|
$ |
0.17 |
|
|
$ |
0.19 |
|
(1) Transaction and other costs relate to acquisition transaction, integration, and other costs in the period.
(2) Represents amortization expense for acquisition-related intangible assets.
(3) Represents (gains) expenses to record contingent consideration liabilities at fair value.
(4) Represents expenses incurred as a result of restructuring and store closings.
(5) Adjustments for taxes for items are calculated based on the effective tax rate for each respective period presented, the jurisdiction of the adjustment and before discrete items.
|
|
Three Months Ended |
|
|||||
|
|
December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Net income attributable to MarineMax, Inc. |
|
$ |
18,066 |
|
|
$ |
930 |
|
Interest expense (excluding floor plan) |
|
|
8,401 |
|
|
|
7,756 |
|
Income tax provision (benefit) |
|
|
2,103 |
|
|
|
(211 |
) |
Depreciation and amortization |
|
|
11,597 |
|
|
|
10,932 |
|
Stock-based compensation expense |
|
|
5,473 |
|
|
|
5,419 |
|
Transaction and other costs |
|
|
221 |
|
|
|
3,106 |
|
Change in fair value of contingent consideration |
|
|
(25,817 |
) |
|
|
219 |
|
Restructuring expense |
|
|
503 |
|
|
|
— |
|
Weather expenses (recoveries) |
|
|
4,968 |
|
|
|
(289 |
) |
Foreign currency |
|
|
542 |
|
|
|
(1,216 |
) |
Adjusted EBITDA |
|
$ |
26,057 |
|
|
$ |
26,646 |
|
Non-GAAP Financial Measures
This press release, along with the above Supplemental Financial Information table, contains “Adjusted net income, “Adjusted diluted EPS,” “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization,” (“Adjusted EBITDA”) and “Adjusted SG&A,” 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 fiscal year 2025 Adjusted net income 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, acquisition costs, and other costs. Acquisition contingent consideration and transaction 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 net income and Adjusted EBITDA are not available without unreasonable effort.
1 This is a non-GAAP measure. See below for an explanation and quantitative reconciliation of each non-GAAP financial measure.
2 This is a non-GAAP measure. Adjusted SG&A represents SG&A adjusted for transaction and other costs, intangible amortization, change in fair value of contingent consideration, weather expenses and recoveries, and restructuring expense. See below in the Adjusted diluted EPS table for the excluded amounts for both periods.
3 See “Non-GAAP Financial Measures” below for a discussion of why reconciliations of forward-looking Adjusted net income and Adjusted EBITDA are not available without unreasonable effort.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250122057470/en/
Mike McLamb
Chief Financial Officer
727-531-1700
Scott Solomon
Sharon Merrill Advisors
857-383-2409
HZO@investorrelations.com
Source: MarineMax, Inc.
