Business Wire | Apr 22, 2021 06:45AM EDT

MarineMax Reports Record Fiscal 2021 Second Quarter Results

Apr. 22, 2021

CLEARWATER, Fla.--(BUSINESS WIRE)--Apr. 22, 2021--MarineMax, Inc. (NYSE: HZO), the world's largest recreational boat and yacht retailer, today announced results for its second quarter ended March 31, 2021.

Revenue increased 70%, or over $214 million, to $523.1 million for the quarter ended March 31, 2021 from $308.5 million in the comparable period last year. Same-store sales grew over 45% on top of a 1% increase in the comparable quarter last year. The growth was driven by an increase in comparable new units sold driven by the strong demand for boating. The Company's significant geographic and product diversification and the effective utilization of its digital platform have driven growth over the past several years. These factors, along with increased industry demand, resulted in net income and earnings per diluted share rising more than sevenfold to $38.9 million and $1.69, respectively. This compares to net income of $5.1 million and earnings per diluted share of $0.23 in the comparable period last year. The Company generated positive same-store sales growth during the March 2020 quarter, despite the impact of COVID-19.

For the six-months ended March 31, 2021, revenue grew over 52% to $934.6 million compared with $612.6 million for the same period last year. Same-store sales increased approximately 33% in the first half of fiscal year 2021 on top of 12% growth during the same period last year. Net income and earnings per diluted share increased more than fourfold for the six months ended March 31, 2021 to $62.5 million, and $2.73 per diluted share, respectively. This compares to net income of $14.1 million, or $0.64 per diluted share, in the same period last year.

W. Brett McGill, Chief Executive Officer and President, stated, "We delivered record sales and earnings growth in the quarter, driven by a robust 45% same-store sales increase and strong gross margins. We continue to gain market share as we capitalize on the foundational shift of new customers embracing the boating lifestyle and many of our existing customers upgrading to larger and newer boats. Additionally, our multiple product and service offerings enhance our customers boating needs while also driving growth. We extended our long track record of producing meaningful same-store sales growth while also executing on our balanced growth strategy. I am extremely proud of our team for successfully navigating through the pandemic and capitalizing on the ongoing changes in consumer behavior, while driving significant leverage in our operating model."

Mr. McGill continued, "As we enter our most active season, our large on-order backlog provides us with additional confidence for the balance of fiscal 2021, into fiscal 2022 and beyond. With a balanced strategic plan, a committed team, premium brands, exceptional customer service, an enthusiastic customer base, a global market presence and the ongoing benefits from investment in technology, MarineMax is well-positioned to drive growth as the world's preferred boating and yacht retailer."

At March 31, 2021, the Company's financial capacity, consisting of cash and cash equivalents, along with available borrowings under its credit facilities, exceeded $350 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 $5.50 to $5.65, which is increased from its previously provided 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.

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 77 retail dealership locations, including 30 marinas or storage operations. Through Fraser Yachts and Northrop and Johnson, it is also the largest super-yacht services provider, operating locations across the globe. 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, 2021; the foundational shift of new customers embracing and enjoying the boating lifestyle; the Company's growth strategy; the Company's confidence for the balance of fiscal 2021, fiscal 2022, and beyond; the Company's positioning for the future; 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 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 Six Months Ended March 31, March 31,

2021 2020 2021 2020



Revenue $ 523,095 $ 308,475 $ $ 934,618 612,647

Cost of sales 366,289 229,699 654,411 453,853

Gross profit 156,806 78,776 280,207 158,794



Selling,general, and 103,936 69,060 195,354 133,446administrativeexpenses

Income from 52,870 9,716 84,853 25,348operations



Interest 1,092 3,013 2,360 6,357expense

Income beforeincome tax 51,778 6,703 82,493 18,991provision



Income tax 12,843 1,638 19,958 4,867provision

Net income 38,935 5,065 $ $ $ $ 62,535 14,124



Basic net income per $ 1.76 $ 0.24 $ 2.83 $ 0.66 common share



Diluted net income per $ 1.69 $ 0.23 $ 2.73 $ 0.64 common share



Weightedaverage numberof commonshares used in computing netincome percommon share:



Basic 22,143,043 21,520,215 22,083,827 21,486,995

Diluted 22,986,061 21,960,285 22,864,950 21,925,105

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

March 31, March 31, 2021 2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 142,888 $ 64,406

Accounts receivable, net 54,489 35,814

Inventories, net 302,979 506,887

Prepaid expenses and other current assets 14,698 9,369

Total current assets 515,054 616,476



Property and equipment, net 151,254 143,168

Operating lease right-of-use assets, net 106,348 40,566

Goodwill and other intangible assets, net 142,152 65,139

Other long-term assets 10,318 7,755

Total assets $ 925,126 $ 873,104



LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $ $ 23,280 15,259

Contract liabilities (customer deposits) 83,357 26,794

Accrued expenses 84,536 34,634

Short-term borrowings 35,762 362,898

Current maturities on long-term debt 2,802 --

Current operating lease liabilities 10,439 6,850

Total current liabilities 240,176 446,435



Long-term debt, net of current maturities 49,440 --

Noncurrent operating lease liabilities 98,276 35,639

Deferred tax liabilities, net 6,501 2,821

Other long-term liabilities 7,429 1,132

Total liabilities 401,822 486,027



STOCKHOLDERS' EQUITY:

Preferred stock -- --

Common stock 28 28

Additional paid-in capital 285,532 273,809

Accumulated other comprehensive income 1,105 (513 )(loss)

Retained earnings 340,234 217,189

Treasury stock (103,595 ) (103,436 )

Total stockholders' equity 523,304 387,077

Total liabilities and stockholders' $ 925,126 $ 873,104 equity

View source version on businesswire.com: https://www.businesswire.com/news/home/20210422005104/en/

CONTACT: Michael H. McLamb Chief Financial Officer Abbey Heimensen Public Relations MarineMax, Inc. 727.531.1700

CONTACT: Brad Cohen or Dawn Francfort ICR, LLC. investorrelations@marinemax.com