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USA. MarineMax Reports First Quarter Fiscal 2017 Results

Tuesday, 24 January 2017


~ Revenue Grew Over 33% Year-Over-Year to $227 Million ~

~ 28% Same-Store Sales Growth Year-Over-Year ~

~ December Quarter Pretax Earnings More Than Tripled ~

~ Company Increases Full Year 2017 Guidance ~

MarineMax, Inc. (NYSE:HZO), the nation’s largest recreational boat and yacht retailer, today announced results for its first quarter ended December 31, 2016.

Revenue grew more than 33% to $226.9 million for the quarter ended December 31, 2016 from $169.5 million for the comparable quarter last year. Same-store sales increased 28%, building upon the 8% same-store sales growth in the same period last year. The December quarter is typically the Company’s smallest revenue quarter of the year and is usually a loss quarter for most marine dealers, including MarineMax. The Company produced a profitable first quarter with net income of $2.6 million or $0.11 per diluted share for the quarter ended December 31, 2016, compared to $688,000 or $0.03 per diluted share for the comparable quarter last year.

William H. McGill, Jr., Chairman, President, and Chief Executive Officer stated, “We could not be more excited about our results as our team produced another quarter of extraordinary revenue and earnings growth. Our strong same-store sales growth was supported by an increase in larger yacht sales, which traditionally carry lower gross margins, impacting our consolidated margins. Historically, when this has occurred, we get good operating expense leverage, resulting in strong earnings growth, like we experienced this quarter. This is the third consecutive year MarineMax has delivered a profitable first quarter, due in large part to the continued enthusiasm our team has for ensuring our customers are enjoying the boating lifestyle through the great products and new models we offer.”

Mr. McGill continued, “In addition to the strong start to the year, we have positioned MarineMax to benefit from an enhanced presence in the strong Southeastern boating region of North and South Carolina along with Georgia as a result of the recent acquisition of Hall Marine. This acquisition complements our successful 2016 acquisition of Russo Marine in the New England area. Beyond the enhanced opportunities to increase market share, we have added considerable talent to our team through these acquisitions. As we enter the important boat show season, consumer confidence remains near recent highs, our backlog remains above last year and we have more new models for our team to sell and deliver. This provides us with growing confidence as we look out to the remainder of 2017. With our passionate team, ongoing innovative new products and a substantial balance sheet, MarineMax should continue to build on its market share gains as we move ahead.”

2017 Guidance Updated

Based on current business conditions, retail trends and other factors, the Company is raising its annual guidance expectations for fully taxed earnings per diluted share to be in the range of $1.14 to $1.24 for fiscal 2017 from its previous guidance of $1.04 to $1.14. 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, Meridian, Hatteras, Azimut Yachts, Ocean Alexander, Galeon, Grady-White, Harris, Bennington, Crest, Scout, Sailfish, Sea Pro, Sportsman, Scarab Jet Boats, Yamaha Jet Boats, Aquila, 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 62 retail locations in Alabama, California, 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 first quarter ended December 31, 2016; the benefit to the Company of its enhanced presence in North and South Carolina and Georgia; the Company’s confidence that it is well positioned for fiscal 2017 to capture additional market share and the Company's fiscal 2017 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, 2016 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,

       

 

 

 
     

 

2016

   

 

2015

           

 

Revenue

   

$

226,875

   

$

169,537

Cost of sales

   

 

173,737

   

 

127,923

Gross profit

     

53,138

     

41,614

           

 

Selling, general, and

administrative expenses

   

 

47,095

   

 

38,951

Income from operations

     

6,043

     

2,663

           

 

Interest expense

   

 

1,569

   

 

1,227

Income before income tax provision

     

4,474

     

1,436

           

 

Income tax provision

   

 

1,831

   

 

748

Net income

   

$

2,643

   

$

688

           

 

Basic net income per common share

   

$

0.11

   

$

0.03

           

 

Diluted net income per common share

   

$

0.11

   

$

0.03

           

 

Weighted average number of common
shares used in computing net income per
common share:

           

Basic

   

 

24,249,739

   

 

24,213,134

Diluted

   

 

24,923,125

   

 

24,742,330

               

 

 

 

 

 

 

 

 

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

           

 

     

December 31,

2016

   

December 31,

2015

ASSETS

CURRENT ASSETS:

           

Cash and cash equivalents

   

$

37,079

     

$

25,159

 

Accounts receivable, net

     

22,954

       

15,900

 

Inventories, net

     

363,622

       

326,369

 

Prepaid expenses and other current assets

   

 

5,713

 

   

 

12,222

 

Total current assets

     

429,368

       

379,650

 
           

 

Property and equipment, net

     

123,547

       

98,823

 

Other long-term assets, net

     

13,378

       

5,376

 

Deferred tax assets, net

   

 

19,839

 

   

 

32,181

 

Total assets

   

$

586,132

 

   

$

516,030

 

           

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

           

Accounts payable

   

$

9,481

     

$

8,882

 

Customer deposits

     

22,771

       

12,970

 

Accrued expenses

     

22,426

       

15,692

 

Short-term borrowings

   

 

213,510

 

   

 

187,516

 

Total current liabilities

     

268,188

       

225,060

 
           

 

Long-term liabilities

   

 

2,414

 

    Last Updated ( Tuesday, 24 January 2017 )