MarineMax Reports Record Fiscal 2022 First Quarter Results

Rhea-AI Summary

MarineMax, Inc. (HZO) reported a record Q1 revenue of $472.7 million, a 15% increase from $411.5 million last year. Net income surged 52% to $35.9 million, with earnings per share rising 53% to $1.59 compared to $1.04 a year ago. Strong same-store sales growth of 9% was driven by unit sales, despite ongoing supply chain challenges. The company raised its fiscal 2022 EPS guidance to $7.60 to $8.00, up from $7.20 to $7.50, reflecting robust demand and strategic acquisitions.

Positive

• Record Q1 revenue of $472.7 million, up 15% year-over-year
• Net income increased 52% to $35.9 million
• Earnings per share grew 53% to $1.59
• Same-store sales growth of 9%, driven by unit sales
• Raised fiscal 2022 EPS guidance to $7.60 to $8.00 from $7.20 to $7.50

Negative

• None.

~Record December Quarter Revenue Grows 15% to Over $472 Million~

~Same-Store Sales Growth of 9% Driven By Comparable New Unit Growth~

~Gross Margin Expands to a Record 35% in the Quarter~

~Record First Quarter Earnings Per Share of $1.59~

~Raises Fiscal Year 2022 Guidance~

CLEARWATER, Fla.--(BUSINESS WIRE)-- MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat and yacht retailer, today announced record results for its first quarter ended December 31, 2021.

Revenue increased 15% to a record $472.7 million for the quarter ended December 31, 2021 from $411.5 million in the comparable period last year. The revenue growth was due to contributions from recent strategic acquisitions and strong same-store sales growth of 9%, driven by increased unit sales. The 9% same-store sales growth was on top of over 20% growth in the comparable quarter last year. Given the Company’s significant geographic and product diversification, accretive acquisitions which have generally had a higher gross margin profile and a solid demand environment, net income increased 52% to $35.9 million and earnings per diluted share grew 53% to $1.59. This compares to earnings per diluted share of $1.04 in the comparable period last year.

W. Brett McGill, Chief Executive Officer and President, stated, “We delivered record revenue, cash flow and earnings growth in the quarter. This was on top of very strong performance a year ago, as we have continued to outperform by effectively executing on our growth strategy. Our 9% same-store sales growth was driven primarily by unit sales growth, which is notable given the continued industry wide supply chain challenges. We delivered world class customer service as we executed on our customer centric strategy, supported by our global market presence, premium brands, deep manufacturing relationships and ongoing investments in technology. The meaningful margin expansion in the quarter was bolstered by increased product margins and growth in our higher margin businesses that drove significant operating leverage in the quarter.”

Mr. McGill continued, “Our accretive acquisitions are all successfully integrated and continue to contribute to our performance. Our balance sheet, with substantial tangible net worth and liquidity, coupled with our cycle tested management team, provides us a significant competitive advantage which will allow us to take advantage of growth opportunities through all economic cycles. Additionally, the foundational shift of consumers’ renewed desire for the boating lifestyle continues to build, as both demand and backlog remain very robust. With the peak selling season ahead, we expect to build on the strong start to our fiscal year and we remain confident that our growth strategy will continue to enhance long term shareholder value.”

2022 Guidance

Based on current business conditions, retail trends and other factors, as well as contributions from acquisitions closed in the December 2021 quarter, the Company is raising its fiscal year 2022 guidance for earnings per diluted share to a range of $7.60 to $8.00, which is increased from its previously provided guidance of $7.20 to $7.50 per diluted share. This compares to earnings per diluted share of $6.78 in fiscal 2021. These expectations do not consider, or give effect for, material acquisitions that may be completed by the Company during fiscal 2022 or other unforeseen events, including changes in global economic conditions.

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 79 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, manufactures boats and yachts with sales through our select retail dealership locations and through independent dealers. Intrepid Powerboats, a MarineMax company, manufactures powerboats and sells through a direct-to-consumer model. 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 first quarter ended December 31, 2021; the Company's competitive advantage and its ability to take advantage of growth opportunities through all economic cycles; the foundational shift of consumers' renewed desire for the boating lifestyle; the Company's growth strategy and the related enhancement to long term shareholder value; and the Company's fiscal 2022 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 recently-acquired businesses, the impacts (direct and indirect) of COVID-19 on the Company’s business, the Company’s employees, the Company’s manufacturing partners (including their supply of products sold by the Company), and the overall economy, general economic conditions, as well as those within the Company's industry, the level of consumer spending, the Company’s ability to integrate acquisitions into existing operations, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2021 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,
		2021			2020
Revenue		$	472,691		$	411,524
Cost of sales			305,492			288,123
Gross profit			167,199			123,401
Selling, general, and administrative expenses			119,997			91,417
Income from operations			47,202			31,984
Interest expense			637			1,268
Income before income tax provision			46,565			30,716
Income tax provision			10,622			7,116
Net income		$	35,943		$	23,600
Basic net income per common share		$	1.64		$	1.07
Diluted net income per common share		$	1.59		$	1.04
Weighted average number of common shares used in computing net income per common share:
Basic			21,899,264			22,025,898
Diluted			22,663,694			22,745,125

MarineMax, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited)
		December 31, 2021				December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	216,315			$	120,939
Accounts receivable, net			39,468				44,001
Inventories, net			325,396				378,863
Prepaid expenses and other current assets			16,736				14,583
Total current assets			597,915				558,386
Property and equipment, net			217,513				149,657
Operating lease right-of-use assets, net			101,835				105,633
Goodwill and other intangible assets, net			247,116				143,114
Other long-term assets			10,757				8,098
Total assets		$	1,175,136			$	964,888
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	27,244			$	22,379
Contract liabilities (customer deposits)			144,550				55,389
Accrued expenses			81,437				67,457
Short-term borrowings			113,461				163,394
Current maturities on long-term debt			3,587				2,704
Current operating lease liabilities			9,641				9,861
Total current liabilities			379,920				321,184
Long-term debt, net of current maturities			46,623				50,124
Noncurrent operating lease liabilities			94,913				98,220
Deferred tax liabilities, net			13,161				5,911
Other long-term liabilities			7,167				6,867
Total liabilities			541,784				482,306
SHAREHOLDERS' EQUITY:
Preferred stock			—				—
Common stock			29				28
Additional paid-in capital			291,814				283,101
Accumulated other comprehensive income			252				1,749
Retained earnings			468,621				301,299
Treasury stock			(127,364	)			(103,595	)
Total shareholders’ equity			633,352				482,582
Total liabilities and shareholders’ equity		$	1,175,136			$	964,888

MarineMax, Inc. and Subsidiaries Segment Financial Information (Amounts in thousands) (Unaudited)
		Three Months Ended December 31,
		2021				2020
Revenue:
Retail Operations		$	454,618			$	411,524
Product Manufacturing			34,244				—
Elimination of intersegment revenue			(16,171	)			—
Revenue		$	472,691			$	411,524
Income from operations:
Retail Operations		$	45,123			$	31,984
Product Manufacturing			3,443				—
Elimination of intersegment income			(1,364	)			—
Income from operations		$	47,202			$	31,984

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005098/en/

Investors:

Michael H. McLamb

Chief Financial Officer

727-531-1700

Brad Cohen or Dawn Francfort

ICR, LLC

investors@marinemax.com

Media:

Abbey Heimensen

Abbey.Heimensen@marinemax.com

Source: MarineMax, Inc.

FAQ

What were MarineMax's Q1 earnings for fiscal 2022?

MarineMax reported Q1 earnings of $1.59 per diluted share for fiscal 2022.

How much did MarineMax's revenue grow in Q1 2022?

Revenue for Q1 2022 grew by 15% to $472.7 million.

What is MarineMax's guidance for earnings per share in fiscal 2022?

MarineMax raised its EPS guidance for fiscal 2022 to a range of $7.60 to $8.00.

What drove the same-store sales growth for MarineMax in Q1 2022?

The 9% same-store sales growth was primarily driven by increased unit sales.

How did MarineMax's net income change in Q1 2022?

Net income increased by 52% to $35.9 million in Q1 2022.