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

MarineMax Reports Record Fiscal 2021 Third Quarter Results

Jul. 22, 2021

CLEARWATER, Fla.--(BUSINESS WIRE)--Jul. 22, 2021--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 Nine Months Ended June 30, 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, andadministrative 123,766 74,838 319,120 208,284expenses

Income from 80,908 48,615 165,761 73,963operations



Interest expense 639 2,133 2,999 8,490

Income before income 80,269 46,482 162,762 65,473tax provision



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 $ 2.69 $ 1.62 $ 5.53 $ 2.28common share



Diluted net income $ 2.59 $ 1.58 $ 5.33 $ 2.23per common share



Weighted averagenumber of commonshares used in computing net incomeper 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

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

June 30, June 30, 2021 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005062/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