Business Wire | Oct 26, 2021 07:00AM EDT

MarineMax Reports Record Fourth Quarter and Fiscal Year Results

Oct. 26, 2021

CLEARWATER, Fla.--(BUSINESS WIRE)--Oct. 26, 2021--MarineMax, Inc. (NYSE: HZO), the world's largest recreational boat and yacht retailer, today announced record results for its fourth quarter and full year ended September 30, 2021.

Revenue grew 16% to a record $462.3 million for the quarter ended September 30, 2021, from $398.8 million for the comparable quarter last year. The growth was driven primarily by successful strategic acquisitions completed during the fiscal year. Same-store sales for the quarter declined 7%, due to supply constrained inventory, but was up against 33% growth in the comparable period last year.

Net income for the quarter ended September 30, 2021, was $32.8 million, or $1.45 per diluted share, compared to $25.6 million, or $1.13 per diluted share in the comparable period prior year. Included in the quarter ended September 30, 2020, were net charges of $1.5 million or $0.06 per diluted share, related primarily to costs associated with the Company's store optimization plan. Excluding the charges in 2020, adjusted diluted earnings per share for the quarter ended September 30, 2020, was $1.19.

For the fiscal year ended September 30, 2021, revenue increased 37% to $2.06 billion compared with $1.51 billion for the same period last year. The revenue increase was driven primarily by successful strategic acquisitions completed during the fiscal year and by strong same-store sales growth of over 13% which was on top of a 25% increase in the prior fiscal year.

Net income for the fiscal year ended September 30, 2021, was $155.0 million, or $6.78 per diluted share, compared to net income of $74.6 million, or $3.37 per diluted share in the prior year. The year ended September 30, 2020, included net charges of $1.3 million or $0.05 per diluted share as outlined above. Excluding the charges in 2020, adjusted diluted earnings per share was $3.42 in the prior year.

W. Brett McGill, Chief Executive Officer and President stated, "The MarineMax Team's commitment and extraordinary efforts generated record revenue of more than $2 billion, our highest gross margin since inception and a near doubling of earnings per share. Perhaps most notable is that these results were delivered while providing world class customer service as evidenced by record high customer satisfaction scores. We are very proud of these outstanding achievements and believe this further demonstrates the scale and flexibility of our business model that is benefiting from investments in technology, growth in our asset light and higher margin businesses, increased penetration of highly desired brands and our recent strategic acquisitions. The foundational shift of consumer's renewed desire for the boating lifestyle, continues to build, as both demand and backlog remain very robust."

Mr. McGill continued, "Our balance sheet is extremely well-capitalized, which was further strengthened by our record 2021 EBITDA of over $225 million. This financial flexibility allows us to continue to pursue strategic accretive acquisitions which will further diversify our business and support sustainable future earnings and cash flow growth. With our deep manufacturing relationships, brand strategy, consumer preference for the MarineMax lifestyle experience and industry leading capital structure, we have increased confidence that the market will begin to recognize the significant value that we have created and that we expect to build upon in the future."

As of September 30, 2021, the Company's liquidity exceeded $327 million, consisting of cash and cash equivalents along with availability under its credit facilities.

Fiscal 2022 Guidance

Based on current business conditions, retail trends and other factors, the Company currently expects earnings per diluted share to be in the range of $7.20 to $7.50 for fiscal 2022. This compares to diluted earnings per share of $6.78 in fiscal 2021. These expectations do not consider, or give effect for, material acquisitions that may be completed by the Company during fiscal 2022 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, 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, manufactures 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 fourth quarter and the fiscal year ended September 30, 2021; the Company's pursuit of strategic accretive acquisitions; the Company's diversification of its business, and its potential for sustainable future earnings and cash flow growth; the market's recognition of the significant value that the Company has created and expects to build upon in the future; and the Company's fiscal 2022 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, 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, 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 SubsidiariesCondensed Consolidated Statements of Operations(Amounts in thousands, except share and per share data)(Unaudited)

Three Months Ended Fiscal Year Ended September 30, September 30,

2021 2020 2021 2020





Revenue $ 462,310 $ 398,762 $ 2,063,257 $ 1,509,713

Cost of sales 287,758 282,296 1,403,824 1,111,000

Gross profit 174,552 116,466 659,433 398,713



Selling, general, andadministrative 130,854 83,714 449,974 291,998expenses

Income from 43,698 32,752 209,459 106,715operations



Interest expense 666 785 3,665 9,275

Income before income 43,032 31,967 205,794 97,440tax provision



Income tax provision 10,206 6,384 50,815 22,806

Net income $ 32,826 $ 25,583 $ 154,979 $ 74,634



Basic net income per $ 1.51 $ 1.18 $ 7.04 $ 3.46common share



Diluted net income $ 1.45 $ 1.13 $ 6.78 $ 3.37per common share



Weighted averagenumber of commonshares used in computing net incomeper common share:

Basic 21,742,888 21,716,081 22,010,130 21,547,665

Diluted 22,673,350 22,604,060 22,859,498 22,125,338

MarineMax, Inc. and Subsidiaries Condensed Consolidated Balance Sheets(Amounts in thousands) (Unaudited)

September 30, 2021

September 30, 2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

222,192

$

155,493

Accounts receivable, net

47,651

40,195

Inventories, net

230,984

298,002

Prepaid expenses and other current assets

16,692

9,637

Total current assets

517,519

503,327

Property and equipment, net

175,463

141,934

Operating lease right-of-use assets, net

104,901

37,991

Goodwill and other intangible assets, net

201,122

84,293

Other long-term assets

8,818

7,774

Total assets

$

1,007,823

$

775,319

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

25,739

$

37,343

Contract liabilities (customer deposits)

100,660

31,821

Accrued expenses

86,594

51,616

Short-term borrowings

23,943

144,393

Current maturities on long-term debt

3,587

507

Current operating lease liabilities

10,570

6,854

Total current liabilities

251,093

272,534

Long-term debt, net of current maturities

47,498

7,343

Noncurrent operating lease liabilities

96,956

33,473

Deferred tax liabilities, net

9,268

4,509

Other long-term liabilities

8,116

2,063

Total liabilities

412,931

319,922

SHAREHOLDERS' EQUITY:

Preferred stock

-

-

Common stock

29

28

Additional paid-in capital

288,901

280,436

Accumulated other comprehensive income

648

829

Retained earnings

432,678

277,699

Treasury stock

(127,364

)

(103,595

)

Total shareholders' equity

594,892

455,397

Total liabilities and shareholders' equity

$

1,007,823

$

775,319

MarineMax, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Amounts in thousands)(Unaudited)

September 30, September 30, 2021 2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 222,192 $ 155,493

Accounts receivable, net 47,651 40,195

Inventories, net 230,984 298,002

Prepaid expenses and other current assets 16,692 9,637

Total current assets 517,519 503,327



Property and equipment, net 175,463 141,934

Operating lease right-of-use assets, net 104,901 37,991

Goodwill and other intangible assets, net 201,122 84,293

Other long-term assets 8,818 7,774

Total assets $ 1,007,823 $ 775,319



LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $ 25,739 $ 37,343

Contract liabilities (customer deposits) 100,660 31,821

Accrued expenses 86,594 51,616

Short-term borrowings 23,943 144,393

Current maturities on long-term debt 3,587 507

Current operating lease liabilities 10,570 6,854

Total current liabilities 251,093 272,534



Long-term debt, net of current maturities 47,498 7,343

Noncurrent operating lease liabilities 96,956 33,473

Deferred tax liabilities, net 9,268 4,509

Other long-term liabilities 8,116 2,063

Total liabilities 412,931 319,922



SHAREHOLDERS' EQUITY:

Preferred stock - -

Common stock 29 28

Additional paid-in capital 288,901 280,436

Accumulated other comprehensive income 648 829

Retained earnings 432,678 277,699

Treasury stock (127,364 ) (103,595 )

Total shareholders' equity 594,892 455,397

Total liabilities and shareholders' equity $ 1,007,823 $ 775,319

MarineMax, Inc. and Subsidiaries

Segment Financial Information

(Amounts in thousands)

(Unaudited)

Three Months Ended September 30,

Fiscal Year Ended September 30,

2021

2020

2021

2020

Revenue:

Retail Operations

$

452,168

$

398,762

$

2,043,613

$

1,509,713

Product Manufacturing

23,583

-

44,000

-

Elimination of intersegment revenue

(13,441

)

-

(24,356

)

-

Revenue

$

462,310

$

398,762

$

2,063,257

$

1,509,713

Income from operations:

Retail Operations

$

42,193

$

32,752

$

207,034

$

106,715

Product Manufacturing

3,419

-

6,940

-

Elimination of intersegment income

(1,914

)

-

(4,515

)

-

Income from operations

$

43,698

$

32,752

$

209,459

$

106,715

MarineMax, Inc. and Subsidiaries

Segment Financial Information

(Amounts in thousands)

(Unaudited)

Three Months Ended Fiscal Year Ended September 30, September 30,

2021 2020 2021 2020



Revenue:

Retail Operations $ 452,168 $ 398,762 $ 2,043,613 $ 1,509,713

Product Manufacturing 23,583 - 44,000 -

Elimination of intersegment (13,441 ) - (24,356 ) -revenue

Revenue $ 462,310 $ 398,762 $ 2,063,257 $ 1,509,713



Income from operations:

Retail Operations $ 42,193 $ 32,752 $ 207,034 $ 106,715

Product Manufacturing 3,419 - 6,940 -

Elimination of intersegment (1,914 ) - (4,515 ) -income

Income from operations $ 43,698 $ 32,752 $ 209,459 $ 106,715

MarineMax, Inc. and Subsidiaries Supplemental Financial Information(Amounts in thousands, except share and per share data) (Unaudited)

Three Months Ended September 30,

Fiscal Year Ended September 30,

2021

2020

2021

2020

Net income

$

32,826

$

25,583

$

154,979

$

74,634

Store closing charges

-

1,659

-

1,659

Hurricane expenses

-

196

-

-

Tax adjustments for items noted above (1)

-

(371

)

-

(388

)

Adjusted net income

$

32,826

$

27,067

$

154,979

$

75,905

Diluted net income per common share

$

1.45

$

1.13

$

6.78

$

3.37

Store closing expenses

-

0.07

-

0.07

Hurricane expenses

-

0.01

-

-

Tax adjustments for items noted above (1)

-

(0.02

)

-

(0.02

)

Adjusted diluted net income per common share

$

1.45

$

1.19

$

6.78

$

3.42

(1) Adjustments for taxes for unusual items are calculated based on the effective tax rate for each respective period presented and the jurisdiction of the adjustment.

MarineMax, Inc. and SubsidiariesSupplemental Financial Information(Amounts in thousands, except share and per share data)(Unaudited)

Three Months Ended Fiscal Year Ended September 30, September 30,

2021 2020 2021 2020



Net income $ 32,826 $ 25,583 $ 154,979 $ 74,634

Store closing charges - 1,659 - 1,659

Hurricane expenses - 196 - -

Tax adjustments for items noted - (371 ) - (388 )above (1)

Adjusted net income $ 32,826 $ 27,067 $ 154,979 $ 75,905



Diluted net income per common $ 1.45 $ 1.13 $ 6.78 $ 3.37 share

Store closing expenses - 0.07 - 0.07

Hurricane expenses - 0.01 - -

Tax adjustments for items noted - (0.02 ) - (0.02 )above (1)

Adjusted diluted net income per $ 1.45 $ 1.19 $ 6.78 $ 3.42 common share

(1) Adjustments for taxes for unusual items are calculated based on theeffective tax rate for each respective period presented and the jurisdiction ofthe adjustment.

Three Months Ended September 30,

Fiscal Year Ended September 30,

2021

2020

2021

2020

Net income

$

32,826

$

25,583

$

154,979

$

74,634

Interest expense

666

785

3,665

9,275

Income tax provision

10,206

6,384

50,815

22,806

Depreciation and amortization

4,027

3,318

15,606

12,772

EBITDA (2)

$

47,725

$

36,070

$

225,065

$

119,487

(2) We define EBITDA as earnings before interest expense, income tax provision, and depreciation and amortization.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211026005149/en/

CONTACT: Investors: Michael H. McLamb Chief Financial Officer 727-531-1700 Brad Cohen or Dawn Francfort ICR, LLC investors@marinemax.com Media: Abbey Heimensen Abbey.Heimensen@marinemax.com MarineMax, Inc.