MarineMax Reports Record Fiscal 2022 Second Quarter Results

Rhea-AI Summary

MarineMax, Inc. (NYSE: HZO) reported record second quarter results for the period ended March 31, 2022, with revenue growing 17% to $610.1 million. Same-store sales rose 7% on top of a 45% increase last year. Net income surged 37% to $53.5 million, while earnings per share climbed 40% to $2.37. For H1 FY2022, revenue increased 16% to $1.083 billion. MarineMax raised its FY2022 EPS guidance to $7.90 to $8.30, up from $7.60 to $8.00.

Positive

• Record revenue of $610.1 million for Q2, up 17%.
• Net income increased by 37% to $53.5 million.
• EPS rose by 40% to $2.37.
• Raised FY2022 EPS guidance to $7.90 to $8.30.

Negative

• None.

~Record March Quarter Revenue Grows 17% to Over $610 Million~

~Same-Store Sales Growth of 7% on Top of 45% a Year Ago~

~Gross Margin Expands to 34%~

~Record Second Quarter Earnings Per Share of $2.37~

~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 second quarter ended March 31, 2022.

Revenue increased 17% to a record $610.1 million for the quarter ended March 31, 2022 from $523.1 million in the comparable period last year. The revenue growth was due to contributions from solid same-store sales growth of 7% on top of a 45% increase in the comparable quarter last year and recent strategic acquisitions. The improvement was driven by strong overall demand for boating despite the lean inventories. The Company’s significant geographic and product diversification, in combination with accretive acquisitions, and growth in gross profit, drove more than a 37% increase in net income to $53.5 million and a 40% increase in earnings per diluted share to $2.37. This compares to earnings per diluted share of $1.69 in the comparable period last year.

For the six months ended March 31, 2022, revenue grew 16% to $1.083 billion compared with $934.6 million for the same period last year. Same-store sales increased approximately 8% in the first half of fiscal year 2022 on top of 33% growth during the same period last year. Net income increased 43% to $89.5 million and earnings per diluted share increased 45% to $3.96 for the six months ended March 31, 2022. This compares to net income of $62.5 million, or $2.73 per diluted share, in the same period last year.

W. Brett McGill, Chief Executive Officer and President, stated, “We once again delivered record sales, earnings growth and cash flow in the quarter, driven by strong same-store sales growth up against a very tough comparison of 45% a year ago. Our market share is expanding as we introduce new customers to MarineMax and the boating lifestyle. Our exceptional customer service, affirmed by our record Net Promotor customer satisfaction levels, has resulted in many of our existing customers upgrading to larger and newer boats. I am extremely proud of our team’s execution as we extend our long record of producing meaningful same-store sales growth, even on top of significant compares, while executing on our balanced growth strategy.”

Mr. McGill continued, “As we enter our most active season, our demand and backlog provides us with continued confidence for the balance of fiscal 2022 and beyond. We anticipated two years ago that boating would be one of the beneficiaries of a changed world. This quarter is evidence of the sustainability of that trend and MarineMax’s ability to leverage our scale, global presence, product diversification, technology advancements, strong balance sheet and cycle tested team. Our record March quarter margins reflects the success of our ongoing focus of growing our higher margin and recurring revenue. The combination of robust operating leverage, significant cash flow and strong consumer demand will support sustainable internal and acquisition growth as we continue to enhance long-term shareholder value.”

Updated 2022 Guidance
Based on current business conditions, retail trends and other factors, the Company is raising its fiscal year 2022 guidance for earnings per diluted share to a range of $7.90 to $8.30, which is increased from its previously provided guidance of $7.60 to $8.00 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 superyacht 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 second quarter ended March 31, 2022; the Company's confidence for the balance of fiscal 2022 and beyond; the sustainability of the trend that boating would be one of the beneficiaries of a changed world; the Company's ability to leverage its scale, global presence, product diversification, digital platform, strong balance sheet and cycle tested team; the Company's expectation that the combination of robust operating leverage, significant cash flow and strong consumer demand will support sustainable growth; the Company's enhancement of 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 of the 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, 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, 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 March 31,						Six Months Ended March 31,
	2022			2021			2022			2021
Revenue	$	610,106		$	523,095		$	1,082,797		$	934,618
Cost of sales		404,791			366,289			710,283			654,411
Gross profit		205,315			156,806			372,514			280,207
Selling, general, and administrative expenses		133,532			103,936			253,529			195,354
Income from operations		71,783			52,870			118,985			84,853
Interest expense		654			1,092			1,291			2,360
Income before income tax provision		71,129			51,778			117,694			82,493
Income tax provision		17,622			12,843			28,244			19,958
Net income	$	53,507		$	38,935		$	89,450		$	62,535
Basic net income per common share	$	2.45		$	1.76		$	4.09		$	2.83
Diluted net income per common share	$	2.37		$	1.69		$	3.96		$	2.73
Weighted average number of common shares used in computing net income per common share:
Basic		21,861,438			22,143,043			21,880,558			22,083,827
Diluted		22,530,102			22,986,061			22,597,105			22,864,950

MarineMax, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited)
	March 31, 2022			March 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	219,400		$	142,888
Accounts receivable, net		62,276			54,489
Inventories, net		329,731			302,979
Prepaid expenses and other current assets		17,596			14,698
Total current assets		629,003			515,054
Property and equipment, net		220,569			151,254
Operating lease right-of-use assets, net		100,818			106,348
Goodwill and other intangible assets, net		246,265			142,152
Other long-term assets		9,069			10,318
Total assets	$	1,205,724		$	925,126
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	37,856		$	23,280
Contract liabilities (customer deposits)		164,068			83,357
Accrued expenses		95,750			84,536
Short-term borrowings		58,858			35,762
Current maturities on long-term debt		3,587			2,802
Current operating lease liabilities		9,774			10,439
Total current liabilities		369,893			240,176
Long-term debt, net of current maturities		45,747			49,440
Noncurrent operating lease liabilities		93,885			98,276
Deferred tax liabilities, net		14,646			6,501
Other long-term liabilities		7,293			7,429
Total liabilities		531,464			401,822
SHAREHOLDERS' EQUITY:
Preferred stock		—			—
Common stock		29			28
Additional paid-in capital		295,589			285,532
Accumulated other comprehensive income		147			1,105
Retained earnings		522,128			340,234
Treasury stock		(143,633)			(103,595)
Total shareholders’ equity		674,260			523,304
Total liabilities and shareholders’ equity	$	1,205,724		$	925,126

MarineMax, Inc. and Subsidiaries Segment Financial Information (Amounts in thousands) (Unaudited)
	Three Months Ended March 31,						Six Months Ended March 31,
	2022			2021			2022			2021
Revenue:
Retail Operations	$	577,624		$	523,095		$	1,032,242		$	934,618
Product Manufacturing		46,758			—			81,002			—
Elimination of intersegment revenue		(14,276)			—			(30,447)			—
Revenue	$	610,106		$	523,095		$	1,082,797		$	934,618
Income from operations:
Retail Operations	$	68,346		$	52,870		$	113,469		$	84,853
Product Manufacturing		4,387			—			7,830			—
Elimination of intersegment income		(950)			—			(2,314)			—
Income from operations	$	71,783		$	52,870		$	118,985		$	84,853

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428005160/en/

Michael H. McLamb

Chief Financial Officer

Abbey Heimensen

Public Relations

MarineMax, Inc.

727.531.1700

Brad Cohen or Dawn Francfort

ICR, LLC.

investorrelations@marinemax.com

Source: MarineMax, Inc.

FAQ

What were MarineMax's Q2 earnings results for 2022?

MarineMax reported Q2 earnings of $2.37 per diluted share and net income of $53.5 million.

How much did MarineMax's revenue grow in Q2 2022?

MarineMax's revenue grew 17% to $610.1 million in Q2 2022.

What is MarineMax's updated earnings guidance for fiscal year 2022?

MarineMax raised its FY2022 EPS guidance to a range of $7.90 to $8.30.

How did same-store sales perform for MarineMax in Q2 2022?

Same-store sales increased by 7% in Q2 2022.

What is the significance of MarineMax's record gross margin?

MarineMax's gross margin expanded to 34%, reflecting strong demand and efficient operations.