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MarineMax Reports Fiscal 2024 Third Quarter Results

~ Posts June Quarter Revenue of $757.7 Million, Up 5% Year-over-Year ~

~ Gross Margin of 32.0% Highlights Successful Strategy of Expansion into Higher-Margin Businesses ~

~ Reports Comparable Same-Store Sales Growth of 4% ~

~ Reaffirms Fiscal 2024 Financial Guidance ~

~ Hosts Earnings Conference Call at 10:00 a.m. ET Today ~

MarineMax, Inc. (NYSE: HZO) (“MarineMax” or the “Company”), the world’s largest recreational boat, yacht and superyacht services company, today announced results for its fiscal 2024 third quarter ended June 30, 2024.

Fiscal 2024 Third Quarter Summary

  • June quarter revenue of $757.7 million
  • Same-store sales increase of 4%
  • Gross profit margin of 32.0%
  • Net income of $31.6 million, or diluted EPS of $1.37; Adjusted diluted EPS1 of $1.51
  • Adjusted EBITDA1 of $70.4 million

CEO & President Commentary

“Despite persistent retail headwinds in the third quarter, our team executed well, delivering 5% top-line growth,” stated Chief Executive Officer and President Brett McGill. “Our solid third-quarter performance in this challenging operating environment underscores the importance of our value-creation strategy, which focuses on expanding our high-margin, less cyclical revenue streams. This strategic expansion, encompassing marinas, superyacht services, and other offerings, has strengthened our gross margin profile—now consistently exceeding 30%—and enhanced our cash flow generation and balance sheet resilience. These improvements come at a crucial time, as macroeconomic softness weighs on retail boat margins industry-wide. By strategically realigning our business, we’ve better positioned ourselves to weather market fluctuations and capitalize on emerging opportunities across our diverse portfolio.

“The recent formation of our new SuperYacht Division (SYD) exemplifies our strategy to generate increasing operating and commercial synergies across our portfolio,” McGill said. “The SYD integrates the operations of Fraser Yachts, Northrop & Johnson, Fairport Yacht Management, SuperYacht Management and Atalanta Golden Yachts (AGY), streamlining the back-office functions of these businesses into a unified entity. Our expansion into superyacht services began many years ago as our existing Azimut, Galeon, and Ocean Alexander customers, and others from our retail dealership operations, migrated to increasingly larger yachts. The complexity of these vessels demanded specialized services, which our SYD companies are exceptionally well-positioned to provide.

“As part of our long-term operational improvement plan, we initiated strategic cost-cutting actions to better align our expense structure with the current operating environment and improve operating leverage,” McGill said. “During the fourth quarter and into fiscal 2025, we expect to see increasing cost savings from these initiatives, which will further improve our cash flows.”

Fiscal 2024 Third Quarter Results

Revenue in the fiscal 2024 third quarter increased 5% to $757.7 million from $721.8 million in the comparable period last year. The top-line growth was primarily driven by an increase in boat sales. On a comparable same-store basis, revenue increased 4%, reflecting higher new and used boat revenue as well as other areas of the Company’s Retail Operations segment, which includes marina, parts, finance and insurance, Super Yachts Group and Charter.

Gross profit decreased 1.0% to $242.1 million from $243.8 million in the prior-year period. Gross profit margin of 32.0% decreased 180 basis points from 33.8% in the comparable period last year, reflecting a higher level of promotional activity to drive boat sales in the face of challenging retail operating conditions.

Selling, general, and administrative (SG&A) expenses totaled $181.1 million, or 23.9% of revenue, in the third quarter, compared with $169.2 million, or 23.4% of revenue, for the comparable period last year. Excluding transaction and other costs, intangible amortization, changes in contingent consideration, weather events, and restructuring expense in the 2024 and 2023 period, Adjusted SG&A2 increased $10.3 million, or 6.2%, from the same period in fiscal 2023. This increase partly reflected restructuring expenses and new locations such as AGY, C&C Boat Works and Williams Jet Tenders, which were added since the beginning of the fiscal 2023 third quarter.

Interest expense was $18.2 million, or 2.4% of revenue in the third quarter, compared with $14.8 million, or 2.1% of revenue in the prior-year period, reflecting higher interest rates and increased inventory compared with the third quarter of fiscal 2023.

Net income in the third quarter was $31.6 million, or $1.37 per diluted share, compared with net income of $44.4 million, or $1.98 per diluted share, in the same period last year. Adjusted net income1 in the third quarter was $34.8 million, or $1.51 per diluted share, compared with $46.5 million, or $2.07 per diluted share, in the prior-year period. Adjusted EBITDA1 for the quarter ended June 30, 2024, was $70.4 million, compared with $83.5 million for the comparable period last year.

Fiscal 2024 Guidance

Based on results to date, current business conditions, retail trends and other factors, the Company reaffirms its fiscal year 2024 Adjusted net income1,3 guidance range of $2.20 to $3.20 per diluted share. The Company also reaffirms its fiscal year 2024 Adjusted EBITDA1,3 guidance range of $155 million to $190 million. These expectations do not consider or give effect for, among other things, material acquisitions that may be completed by the Company during fiscal 2024 or other unforeseen events, including changes in global economic conditions.

Conference Call Information

MarineMax will discuss its fiscal 2024 third quarter financial results on a conference call starting at 10:00 a.m. ET today. The conference call can be accessed via the “Investors” section of the Company's website: www.marinemax.com, or by dialing 844-825-9789 (U.S. and Canada) or 412-317-5180 (International). An online replay will be available within one hour of the conclusion of the call and will be archived on the website for one year.

About MarineMax

As the world’s largest lifestyle retailer of recreational boats and yachts, as well as yacht concierge and superyacht services, MarineMax (NYSE: HZO) is United by Water. We have over 125 locations worldwide, including over 75 dealerships and 65 marina and storage facilities. Our integrated business includes IGY Marinas, which operates luxury marinas in yachting and sport fishing destinations around the world; Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies; Cruisers Yachts, one of the world’s premier manufacturers of premium sport yachts and motor yachts; and Intrepid Powerboats, a premier manufacturer of powerboats. To enhance and simplify the customer experience, we provide financing and insurance services as well as leading digital technology products that connect boaters to a network of preferred marinas, dealers, and marine professionals through Boatyard and Boatzon. In addition, we operate MarineMax Vacations in Tortola, British Virgin Islands, which offers our charter vacation guests the luxury boating adventures of a lifetime. Land comprises 29% of the earth’s surface. We’re focused on the other 71%. Learn more at 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 value-creation strategy, the Company’s positioning with respect to market fluctuations and emerging opportunities, the expected annualized cost savings of the Company’s cost-cutting initiatives, anticipated operating efficiency resulting from the formation of the SuperYacht Division, and the Company’s fiscal 2024 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 the recently acquired businesses, general economic conditions, as well as those within the Company's industry, the liquidity and strength of our bank group partners, the level of consumer spending, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2023 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

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue

 

$

757,720

 

 

$

721,844

 

 

$

1,867,886

 

 

$

1,800,111

 

Cost of sales

 

 

515,621

 

 

 

478,036

 

 

 

1,259,885

 

 

 

1,168,497

 

Gross profit

 

 

242,099

 

 

 

243,808

 

 

 

608,001

 

 

 

631,614

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

 

181,072

 

 

 

169,227

 

 

 

506,574

 

 

 

465,128

 

Income from operations

 

 

61,027

 

 

 

74,581

 

 

 

101,427

 

 

 

166,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

18,229

 

 

 

14,798

 

 

 

55,968

 

 

 

37,562

 

Income before income tax provision

 

 

42,798

 

 

 

59,783

 

 

 

45,459

 

 

 

128,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

11,085

 

 

 

15,455

 

 

 

11,452

 

 

 

34,685

 

Net income

 

 

31,713

 

 

 

44,328

 

 

 

34,007

 

 

 

94,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net income (loss) attributable to non-controlling interests

 

 

163

 

 

 

(88

)

 

 

(60

)

 

 

98

 

Net income attributable to MarineMax, Inc.

 

$

31,550

 

 

$

44,416

 

 

$

34,067

 

 

$

94,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

1.42

 

 

$

2.03

 

 

$

1.53

 

 

$

4.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

1.37

 

 

$

1.98

 

 

$

1.48

 

 

$

4.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,268,758

 

 

 

21,885,400

 

 

 

22,254,619

 

 

 

21,831,350

 

Diluted

 

 

23,049,097

 

 

 

22,427,443

 

 

 

22,952,234

 

 

 

22,321,269

 

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

242,424

 

 

$

226,134

 

Accounts receivable, net

 

 

105,258

 

 

 

95,018

 

Inventories

 

 

880,419

 

 

 

739,114

 

Prepaid expenses and other current assets

 

 

33,101

 

 

 

24,881

 

Total current assets

 

 

1,261,202

 

 

 

1,085,147

 

Property and equipment, net

 

 

533,943

 

 

 

521,637

 

Operating lease right-of-use assets, net

 

 

138,600

 

 

 

135,452

 

Goodwill

 

 

589,949

 

 

 

562,277

 

Other intangible assets, net

 

 

38,380

 

 

 

40,968

 

Other long-term assets

 

 

31,591

 

 

 

34,814

 

Total assets

 

$

2,593,665

 

 

$

2,380,295

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Accounts payable

 

$

45,578

 

 

$

47,202

 

Contract liabilities (customer deposits)

 

 

66,791

 

 

 

97,785

 

Accrued expenses

 

 

196,987

 

 

 

118,576

 

Short-term borrowings

 

 

701,185

 

 

 

514,023

 

Current maturities on long-term debt

 

 

33,766

 

 

 

32,409

 

Current operating lease liabilities

 

 

10,135

 

 

 

9,967

 

Total current liabilities

 

 

1,054,442

 

 

 

819,962

 

Long-term debt, net of current maturities

 

 

364,138

 

 

 

399,229

 

Noncurrent operating lease liabilities

 

 

125,343

 

 

 

119,759

 

Deferred tax liabilities, net

 

 

59,210

 

 

 

54,449

 

Other long-term liabilities

 

 

13,598

 

 

 

84,539

 

Total liabilities

 

 

1,616,731

 

 

 

1,477,938

 

SHAREHOLDERS' EQUITY:

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

30

 

 

 

29

 

Additional paid-in capital

 

 

342,218

 

 

 

320,383

 

Accumulated other comprehensive income

 

 

2,084

 

 

 

3,245

 

Retained earnings

 

 

774,016

 

 

 

724,808

 

Treasury stock

 

 

(150,797

)

 

 

(148,656

)

Total shareholders’ equity attributable to MarineMax, Inc.

 

 

967,551

 

 

 

899,809

 

Non-controlling interests

 

 

9,383

 

 

 

2,548

 

Total shareholders’ equity

 

 

976,934

 

 

 

902,357

 

Total liabilities and shareholders’ equity

 

$

2,593,665

 

 

$

2,380,295

 

MarineMax, Inc. and Subsidiaries

Segment Financial Information

(Amounts in thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Retail Operations

 

$

752,171

 

 

$

709,307

 

 

$

1,855,433

 

 

$

1,770,565

 

Product Manufacturing

 

 

38,062

 

 

 

51,884

 

 

 

124,372

 

 

 

164,959

 

Elimination of intersegment revenue

 

 

(32,513

)

 

 

(39,347

)

 

 

(111,919

)

 

 

(135,413

)

Revenue

 

$

757,720

 

 

$

721,844

 

 

$

1,867,886

 

 

$

1,800,111

 

Income from operations:

 

 

 

 

 

 

 

 

 

 

 

 

Retail Operations

 

$

58,733

 

 

$

68,050

 

 

$

94,204

 

 

$

158,514

 

Product Manufacturing

 

 

(548

)

 

 

5,089

 

 

 

2,508

 

 

 

17,834

 

Intersegment adjustments

 

 

2,842

 

 

 

1,442

 

 

 

4,715

 

 

 

(9,862

)

Income from operations

 

$

61,027

 

 

$

74,581

 

 

$

101,427

 

 

$

166,486

 

MarineMax, Inc. and Subsidiaries

Supplemental Financial Information

(Amounts in thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income attributable to MarineMax, Inc.

 

$

31,550

 

 

$

44,416

 

 

$

34,067

 

 

$

94,141

 

Transaction and other costs (1)

 

 

1,127

 

 

 

111

 

 

 

4,352

 

 

 

6,227

 

Intangible amortization (2)

 

 

1,428

 

 

 

1,925

 

 

 

4,592

 

 

 

5,524

 

Change in fair value of contingent consideration (3)

 

 

1,225

 

 

 

1,211

 

 

 

2,392

 

 

 

3,441

 

Weather (recoveries) expenses

 

 

(556

)

 

 

(452

)

 

 

142

 

 

 

(644

)

Gain on acquisition of equity investment (4)

 

 

 

 

 

 

 

 

 

 

 

(5,129

)

Restructuring expense (5)

 

 

1,110

 

 

 

 

 

 

1,110

 

 

 

 

Tax adjustments for items noted above (6)

 

 

(1,123

)

 

 

(724

)

 

 

(3,172

)

 

 

(2,534

)

Adjusted net income attributable to MarineMax, Inc.

 

$

34,761

 

 

$

46,487

 

 

$

43,483

 

 

$

101,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

1.37

 

 

$

1.98

 

 

$

1.48

 

 

$

4.22

 

Transaction and other costs (1)

 

 

0.05

 

 

 

 

 

 

0.19

 

 

 

0.28

 

Intangible amortization (2)

 

 

0.06

 

 

 

0.09

 

 

 

0.20

 

 

 

0.25

 

Change in fair value of contingent consideration (3)

 

 

0.05

 

 

 

0.05

 

 

 

0.10

 

 

 

0.15

 

Weather (recoveries) expenses

 

 

(0.02

)

 

 

(0.02

)

 

 

0.01

 

 

 

(0.03

)

Gain on acquisition of equity investment (4)

 

 

 

 

 

 

 

 

 

 

 

(0.23

)

Restructuring expense (5)

 

 

0.05

 

 

 

 

 

 

0.05

 

 

 

 

Tax adjustments for items noted above (6)

 

 

(0.05

)

 

 

(0.03

)

 

 

(0.14

)

 

 

(0.11

)

Adjusted diluted net income per common share

 

$

1.51

 

 

$

2.07

 

 

$

1.89

 

 

$

4.53

 

(1) Transaction and other costs relate to acquisition transaction, integration, and other costs in the period.

(2) Represents amortization expense for acquisition-related intangible assets.

(3) Represents expenses to record contingent consideration liabilities at fair value.

(4) Represents gain on a previously held equity investment upon acquisition of the entire business.

(5) Represents expenses incurred as a result of restructuring and store closings.

(6) Adjustments for taxes for items are calculated based on the effective tax rate for each respective period presented.

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income attributable to MarineMax, Inc.

 

$

31,550

 

 

$

44,416

 

 

$

34,067

 

 

$

94,141

 

Interest expense (excluding floor plan)

 

 

7,508

 

 

 

7,485

 

 

 

22,786

 

 

 

20,669

 

Income tax provision

 

 

11,085

 

 

 

15,455

 

 

 

11,452

 

 

 

34,685

 

Depreciation and amortization

 

 

11,192

 

 

 

9,419

 

 

 

33,087

 

 

 

27,391

 

Stock-based compensation expense

 

 

6,080

 

 

 

5,490

 

 

 

17,483

 

 

 

15,703

 

Transaction and other costs

 

 

1,127

 

 

 

111

 

 

 

4,352

 

 

 

6,227

 

Gain on acquisition of equity investment

 

 

 

 

 

 

 

 

 

 

 

(5,129

)

Change in fair value of contingent consideration

 

 

1,225

 

 

 

1,211

 

 

 

2,392

 

 

 

3,441

 

Restructuring expense

 

 

1,110

 

 

 

 

 

 

1,110

 

 

 

 

Weather (recoveries) expenses

 

 

(556

)

 

 

(452

)

 

 

142

 

 

 

(644

)

Foreign currency

 

 

73

 

 

 

352

 

 

 

(235

)

 

 

(2,451

)

Adjusted EBITDA

 

$

70,394

 

 

$

83,487

 

 

$

126,636

 

 

$

194,033

 

Non-GAAP Financial Measures

This press release, along with the above Supplemental Financial Information table, contains “Adjusted net income”, “Adjusted diluted EPS”, “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization” (“Adjusted EBITDA”) and “Adjusted SG&A”, which are non-GAAP financial measures as defined under applicable securities legislation. In determining these measures, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. The Company believes these non-GAAP financial measures are key performance indicators that improve the period-to-period comparability of the Company’s results and provide investors with more insight into, and an additional tool to understand and assess, the performance of the Company's ongoing core business operations. Investors and other readers are encouraged to review the related GAAP financial measures and the above reconciliation and should consider these non-GAAP financial measures as a supplement to, and not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP.

In addition, we have not reconciled our fiscal year 2024 Adjusted earnings and Adjusted EBITDA guidance to net income (the corresponding GAAP measure for each), which is not accessible on a forward-looking basis due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to acquisition contingent consideration, acquisition costs, and other costs. Acquisition contingent consideration and transaction costs, which are likely to be significant to the calculation of net income, are affected by the integration and post-acquisition performance of our acquirees, which is difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted earnings and Adjusted EBITDA are not available without unreasonable effort.

______________________________

1 This is a non-GAAP measure. See below for an explanation and quantitative reconciliation of each non-GAAP financial measure.

2 This is a non-GAAP measure. Adjusted SG&A represents SG&A adjusted for transaction and other costs, intangible amortization, change in fair value of contingent consideration, weather events, and restructuring expense. See below in the Adjusted diluted EPS table for the excluded amounts for both periods.

3 See “Non-GAAP Financial Measures” below for a discussion of why reconciliations of forward-looking Adjusted net income and Adjusted EBITDA are not available without unreasonable effort.

 

Contacts

Mike McLamb

Chief Financial Officer

727-531-1700

Scott Solomon

Sharon Merrill Advisors

857-383-2409

HZO@investorrelations.com

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