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MarineMax Reports Record Fiscal 2021 Third Quarter Results

~Record June Quarter Revenue Grows 34% to Almost $667 Million~

~Same-Store Sales Grew 6% on Top of 37% in the Prior Year~

~Gross Margin Expands to Nearly 31% - A Record For The June Quarter~

~Record June Quarter Diluted EPS Increases 64% to $2.59~

~Raises Fiscal Year 2021 Guidance~

MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat and yacht retailer, today announced results for its third quarter ended June 30, 2021.

Revenue grew 34%, or over $168 million, to $666.3 million for the quarter ended June 30, 2021 from $498.3 million in the comparable period last year. Same-store sales grew 6% on top of a 37% increase in the comparable quarter last year. The overall revenue growth was driven by meaningful contributions from its recent strategic acquisitions as well as the ongoing robust demand for boating. The Company’s significant geographic and product diversification and the effective utilization of its digital platform have contributed to the sustained growth. These factors resulted in net income and earnings per diluted share rising over 70% and 64% to $59.6 million and $2.59, respectively. This compares to net income of $34.9 million and earnings per diluted share of $1.58 in the comparable period last year.

For the nine months ended June 30, 2021, revenue was up over 44% to $1.6 billion compared with $1.1 billion for the same period last year. Same-store sales increased approximately 21%, on top of 22% growth for the same period last year. Net income for the nine months ended June 30, 2021, rose over 149% to $122.2 million, or $5.33 per diluted share, compared with $49.1 million, or $2.23 per diluted share for the comparable period last year.

W. Brett McGill, Chief Executive Officer and President, stated, “We once again delivered record sales and earnings growth in the quarter, as demand for the boating lifestyle remained strong and our team continued to execute on our strategy of driving our higher margin businesses, resulting in our strongest quarterly operating margin to date. We are proud of our ongoing market share gains as we benefit from our diversified portfolio, premium brands, exceptional customer service, investments in technology, global market presence and our enthusiastic customer base that wants to enjoy active boating experiences with family and friends.”

Mr. McGill continued, “Our deep manufacturer relationships, industry leading inventory management and valuable real estate locations position us well to continue to gain share, as evidenced by our ability to continue to generate strong same-store-sales in a lean inventory environment. With one of the strongest balance sheets in the industry, we remain well capitalized to continue to make strategic accretive acquisitions to further enhance our geographic presence, to add to our marina, storage and service offerings and to further grow our higher margin businesses. Recently, we were pleased to add Cruiser Yachts and Nisswa Marine to our portfolio, illustrating our focus on accretive, higher margin businesses with strong operating teams. Based on orders and inventory, our pricing model and our team’s commitment to executing on our strategic initiatives, we will capture additional growth in the years ahead, as the world’s preferred boating and yacht retailer.”

At June 30, 2021, the Company’s financial capacity, consisting of cash and cash equivalents, along with available borrowings under its credit facilities, exceeded $329 million.

Updated 2021 Guidance

Based on current business conditions, retail trends and other factors, the Company is raising its fiscal year 2021 guidance for earnings per diluted share to the range of $6.40 to $6.55 from $5.50 to $5.65, which was previously increased from original guidance of $4.00 to $4.20 per diluted share. This compares to a non-GAAP adjusted, but fully taxed, earnings per diluted share of $3.42 in fiscal 2020. (Please see the Company’s fiscal 2020 earnings release dated October 28, 2020 for a reconciliation of this non-GAAP figure to the applicable GAAP figure) These expectations do not consider, or give effect for, material acquisitions that may be completed by the Company during fiscal 2021 or other unforeseen events, including changes in global economic conditions.

Reportable Segments

Effective May 2021, the Company’s reportable segments changed as a result of our acquisition of Cruisers Yachts, a manufacturer of yachts. Whereas we previously had only one segment, we now report our operations through two new reportable segments: Retail Operations and Product Manufacturing. The elimination of intersegment revenue and income is due to sales of Cruisers Yachts through our select retail dealership locations. The financial performance of our reportable segments will now be disclosed quarterly beginning with this quarter ended June 30, 2021.

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 78 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, manufacturers boats and yachts with sales through our select retail dealership locations and through independent dealers. 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 third quarter ended June 30, 2021; the Company's capitalization; the Company's ability to make strategic accretive acquisitions, further enhance its geographic presence, add to its offerings, and further grow its higher margin businesses; the Company's expectation to capture additional growth in the years ahead; and the Company's fiscal 2021 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 Company’s ability to integrate acquisitions into existing operations, 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, 2020 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,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Revenue

$

666,328

 

$

498,304

 

$

1,600,947

 

$

1,110,951

Cost of sales

 

461,654

 

 

374,851

 

 

1,116,066

 

 

828,704

Gross profit

 

204,674

 

 

123,453

 

 

484,881

 

 

282,247

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

123,766

 

 

74,838

 

 

319,120

 

 

208,284

Income from operations

 

80,908

 

 

48,615

 

 

165,761

 

 

73,963

 

 

 

 

 

 

 

 

Interest expense

 

639

 

 

2,133

 

 

2,999

 

 

8,490

Income before income tax provision

 

80,269

 

 

46,482

 

 

162,762

 

 

65,473

 

 

 

 

 

 

 

 

Income tax provision

 

20,651

 

 

11,555

 

 

40,609

 

 

16,422

Net income

$

59,618

 

$

34,927

 

$

122,153

 

$

49,051

 

 

 

 

 

 

 

 

Basic net income per common share

$

2.69

 

$

1.62

 

$

5.53

 

$

2.28

 

 

 

 

 

 

 

 

Diluted net income per common share

$

2.59

 

$

1.58

 

$

5.33

 

$

2.23

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

22,132,915

 

 

21,499,408

 

 

22,100,190

 

 

21,491,117

Diluted

 

23,037,679

 

 

22,045,900

 

 

22,922,526

 

 

21,965,355

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

 

June 30,

2021

 

June 30,

2020

ASSETS

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

200,121

 

 

$

86,919

 

Accounts receivable, net

 

60,195

 

 

 

69,478

 

Inventories, net

 

209,418

 

 

 

314,096

 

Prepaid expenses and other current assets

 

18,316

 

 

 

11,133

 

Total current assets

 

488,050

 

 

 

481,626

 

 

 

 

 

Property and equipment, net

 

166,058

 

 

 

141,897

 

Operating lease right-of-use assets, net

 

104,641

 

 

 

39,279

 

Goodwill and other intangible assets, net

 

186,691

 

 

 

65,404

 

Other long-term assets

 

10,650

 

 

 

7,754

 

Total assets

$

956,090

 

 

$

735,960

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

28,741

 

 

$

39,441

 

Contract liabilities (customer deposits)

 

86,704

 

 

 

30,106

 

Accrued expenses

 

89,696

 

 

 

47,775

 

Short-term borrowings

 

2,861

 

 

 

147,049

 

Current maturities on long-term debt

 

3,293

 

 

 

--

 

Current operating lease liabilities

 

10,275

 

 

 

7,262

 

Total current liabilities

 

221,570

 

 

 

271,633

 

 

 

 

 

Long-term debt, net of current maturities

 

48,374

 

 

 

--

 

Noncurrent operating lease liabilities

 

96,830

 

 

 

34,248

 

Deferred tax liabilities, net

 

8,419

 

 

 

4,221

 

Other long-term liabilities

 

8,126

 

 

 

833

 

Total liabilities

 

383,319

 

 

 

310,935

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

Preferred stock

 

--

 

 

 

--

 

Common stock

 

28

 

 

 

28

 

Additional paid-in capital

 

288,923

 

 

 

276,606

 

Accumulated other comprehensive income (loss)

 

1,264

 

 

 

(130

)

Retained earnings

 

399,852

 

 

 

252,116

 

Treasury stock

 

(117,296

)

 

 

(103,595

)

Total stockholders’ equity

 

572,771

 

 

 

425,025

 

Total liabilities and stockholders’ equity

$

956,090

 

 

$

735,960

 

MarineMax, Inc. and Subsidiaries

Segment Financial Information

(Amounts in thousands)

(Unaudited)

 

 

Three Months Ended

June 30,

 

Nine Months Ended

June 30,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Retail Operations

$

656,826

 

 

$

498,304

 

$

1,591,445

 

 

$

1,110,951

Product Manufacturing

 

20,417

 

 

 

--

 

 

20,417

 

 

 

--

Elimination of intersegment revenue

 

(10,915

)

 

 

--

 

 

(10,915

)

 

 

--

Revenue

$

666,328

 

 

$

498,304

 

$

1,600,947

 

 

$

1,110,951

 

 

 

 

 

 

 

 

Income from operations:

 

 

 

 

 

 

 

Retail Operations

$

79,988

 

 

$

48,615

 

$

164,841

 

 

$

73,963

Product Manufacturing

 

3,521

 

 

 

--

 

 

3,521

 

 

 

--

Elimination of intersegment income

 

(2,601

)

 

 

--

 

 

(2,601

)

 

 

--

Income from operations

$

80,908

 

 

$

48,615

 

$

165,761

 

 

$

73,963

 

Contacts

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

 

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