MarineMax Reports Record Fiscal Third Quarter Results

Rhea-AI Summary

MarineMax, Inc. (NYSE: HZO) reported a record revenue of $688.5 million for Q3 2022, a 3% increase from the previous year's $666.3 million. Despite a 5% decline in same-store sales, net income rose to $70.2 million, leading to a 22% increase in earnings per diluted share, now at $3.17. Year-to-date, revenue reached $1.77 billion, an 11% increase. The company raised its FY 2022 EPS guidance to $8.05 to $8.45, up from $7.90 to $8.30, compared to $6.78 in fiscal 2021, demonstrating strong profitability despite ongoing supply chain challenges.

Positive

• Record Q3 revenue of $688.5 million, up 3% year-over-year.
• Net income increased to $70.2 million, with EPS up 22% to $3.17.
• Year-to-date revenue reached $1.77 billion, marking an 11% growth.
• Raised FY 2022 EPS guidance to $8.05 - $8.45, up from previously $7.90 - $8.30.

Negative

• Same-store sales declined by 5%, compared to a 6% increase last year.
• Ongoing supply chain issues impacted inventory availability.

~Record June Quarter Revenue Grows to Over $688 Million~

~Gross Margins Continue to Expand~

~Record Third Quarter Earnings Per Share of $3.17~

~Raises Fiscal Year 2022 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, 2022.

Revenue increased 3% to a record $688.5 million for the quarter ended June 30, 2022, from $666.3 million in the comparable period last year. Revenue growth benefitted from contributions of recent strategic acquisitions, as same-store sales declined 5% versus an increase of 6% a year ago and a 43% increase over the prior two-comparable periods. New unit sales grew year-over-year notwithstanding low inventory and supply chain challenges. The change in same store sales was primarily related to the on-going industry shortage of inventory, specifically larger product. The Company’s significant geographic and product diversification, in combination with accretive acquisitions, resulted in net income growing to $70.2 million and a 22% increase in earnings per diluted share to $3.17. This compares to earnings per diluted share of $2.59 in the comparable period last year.

For the nine-months ended June 30, 2022, revenue grew 11% to $1.77 billion compared with $1.60 billion for the same period last year. Same-store sales increased approximately 3%, on top of 21% growth for the same period last year. Net income for the nine months ended June 30, 2022, rose to $159.6 million, with earnings per diluted share rising over 33% to $7.11, compared with $122.2 million, or $5.33 per diluted share for the comparable period last year.

W. Brett McGill, Chief Executive Officer and President, stated, “I am extremely proud of our team for continuing to execute, as we extend our long record of accelerating profitability and operating leverage expansion. We are building on our previously communicated strategic vision that we began deploying in 2019, to transform MarineMax into a more diversified business model that would create greater resilience across ever changing economic cycles. This strategy produced another quarter of record gross margins and profits, driving sustained profitability by focusing on higher margin businesses.”

Mr. McGill continued, “Business accelerated as we moved through the quarter, supported by unit growth year-over-year as we effectively worked to overcome ongoing supply chain challenges and the weather-related delay to the start of the Midwest boating season. In fact, excluding our Midwest markets, we saw over 8% new unit growth on a same-store basis in the quarter. We continue to gain market share, as the industry did not experience that same level of growth. As the world’s preferred boating and yacht retailer, we remain well capitalized to continue to enhance shareholder value through our wide-ranging geographic presence, broad product diversification, digital platform, strong balance sheet and a cycle tested management team.”

Updated 2022 Guidance
Based on current business conditions, retail trends and other factors, as well as contributions from acquisitions closed in 2022, the Company is raising its fiscal year 2022 guidance for earnings per diluted share to a range of $8.05 to $8.45, which is increased from its previously provided guidance of $7.90 to $8.30 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 33 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 June 30, 2022; our ability to make strategic long-term accretive acquisitions; our enhancement of 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 obtain and manage 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 June 30,						Nine Months Ended June 30,
		2022			2021			2022			2021
Revenue	$	688,537		$	666,328		$	1,771,334		$	1,600,947
Cost of sales		452,064			461,654			1,162,347			1,116,066
Gross profit		236,473			204,674			608,987			484,881
Selling, general, and administrative expenses		141,173			123,766			394,702			319,120
Income from operations		95,300			80,908			214,285			165,761
Interest expense		1,008			639			2,299			2,999
Income before income tax provision		94,292			80,269			211,986			162,762
Income tax provision		24,113			20,651			52,357			40,609
Net income	$	70,179		$	59,618		$	159,629		$	122,153
Basic net income per common share	$	3.26		$	2.69		$	7.34		$	5.53
Diluted net income per common share	$	3.17		$	2.59		$	7.11		$	5.33
Weighted average number of common shares used in computing net income per common share:
Basic		21,524,315			22,132,915			21,761,811			22,100,190
Diluted		22,173,273			23,037,679			22,455,828			22,922,526

MarineMax, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited)
	June 30, 2022				June 30, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	281,351			$	200,121
Accounts receivable, net		61,863				60,195
Inventories, net		374,217				209,418
Prepaid expenses and other current assets		18,566				18,316
Total current assets		735,997				488,050
Property and equipment, net		226,647				166,058
Operating lease right-of-use assets, net		100,127				104,641
Goodwill and other intangible assets, net		248,194				186,691
Other long-term assets		9,104				10,650
Total assets	$	1,320,069			$	956,090
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	56,533			$	28,741
Contract liabilities (customer deposits)		138,375				86,704
Accrued expenses		97,088				89,696
Short-term borrowings		107,222				2,861
Current maturities on long-term debt		3,028				3,293
Current operating lease liabilities		10,323				10,275
Total current liabilities		412,569				221,570
Long-term debt, net of current maturities		45,834				48,374
Noncurrent operating lease liabilities		92,774				96,830
Deferred tax liabilities, net		17,805				8,419
Other long-term liabilities		8,347				8,126
Total liabilities		577,329				383,319
STOCKHOLDERS' EQUITY:
Preferred stock		--				--
Common stock		29				28
Additional paid-in capital		300,411				288,923
Accumulated other comprehensive income (loss)		(1,351	)			1,264
Retained earnings		592,307				399,852
Treasury stock		(148,656	)			(117,296	)
Total stockholders’ equity		742,740				572,771
Total liabilities and stockholders’ equity	$	1,320,069			$	956,090

MarineMax, Inc. and Subsidiaries Segment Financial Information (Amounts in thousands) (Unaudited)
	Three Months Ended June 30,								Nine Months Ended June 30,
		2022				2021				2022				2021
Revenue:
Retail Operations	$	657,930			$	656,826			$	1,690,172			$	1,591,445
Product Manufacturing		48,802				20,417				129,804				20,417
Elimination of intersegment revenue		(18,195	)			(10,915	)			(48,642	)			(10,915	)
Revenue	$	688,537			$	666,328			$	1,771,334			$	1,600,947
Income from operations:
Retail Operations	$	90,655			$	79,988			$	204,124			$	164,841
Product Manufacturing		5,903				3,521				13,733				3,521
Elimination of intersegment income		(1,258	)			(2,601	)			(3,572	)			(2,601	)
Income from operations	$	95,300			$	80,908			$	214,285			$	165,761

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220728005088/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 are MarineMax's financial results for Q3 2022?

MarineMax reported record revenue of $688.5 million for Q3 2022, a 3% increase year-over-year.

How much did MarineMax raise its EPS guidance for fiscal year 2022?

MarineMax raised its EPS guidance for FY 2022 to a range of $8.05 to $8.45.

What was the net income for MarineMax in Q3 2022?

The net income for MarineMax in Q3 2022 was $70.2 million.

How did supply chain challenges affect MarineMax's sales?

Supply chain challenges led to a 5% decline in same-store sales.

What was the year-to-date revenue for MarineMax as of June 30, 2022?

MarineMax's year-to-date revenue reached $1.77 billion as of June 30, 2022.