Business Wire | Oct 28, 2020 06:45AM EDT

MarineMax Reports Record Fourth Quarter and Fiscal Year Results

Oct. 28, 2020

CLEARWATER, Fla.--(BUSINESS WIRE)--Oct. 28, 2020--MarineMax, Inc. (NYSE: HZO), the nation's largest recreational boat and yacht retailer, today announced record results for its fourth quarter and full year ended September 30, 2020.

Revenue grew over 29% to $398.8 million for the quarter ended September 30, 2020, from $308.1 million for the comparable quarter last year. The increase was driven by strong same-store sales growth of 33%. Included in the quarters ended September 30, 2020 and September 30, 2019, were net charges of $1.5 million or $0.06 per diluted share and $1.6 million, or $0.07 per diluted share, respectively. The charges primarily related to costs associated with the Company's store optimization plan which resulted in the closure of one store in the current quarter and eight in the comparable quarter last year.

Net income for the quarter ended September 30, 2020, more than tripled to $25.6 million, or $1.13 per diluted share, compared to net income of $6.7 million, or $0.31 per diluted share in the comparable quarter last year. Excluding the charges in both periods, net income for the quarter ended September 30, 2020, grew to $27.1 million, with earnings per diluted share more than tripling to $1.19, as compared to $8.3 million or $0.38 per diluted share in the same period last year.

For the fiscal year ended September 30, 2020, revenue increased 22% to $1.51 billion compared with $1.24 billion for the same period last year. The growth was driven by strong same-store sales growth of 25%. Included in the years ended September 30, 2020 and September 30, 2019, were net charges of $1.3 million, or $0.05 per diluted share and $1.4 million, or $0.06 per diluted share, respectively. The charges primarily related to costs associated with the Company's store optimization plan.

Net income for the fiscal year ended September 30, 2020, more than doubled to $74.6 million, or $3.37 per diluted share, compared to net income of $36.0 million, or $1.57 per diluted share in the prior year. Excluding the charges in both periods, net income for the year ended September 30, 2020, grew to $75.9 million, with earnings per diluted share more than doubling to $3.42, as compared to $37.3 million or $1.63 per diluted share in the same period last year.

W. Brett McGill, Chief Executive Officer and President stated, "The MarineMax Team generated a record $1.5 billion of revenue and more than doubled our earnings per share while overcoming these extremely uncertain times. We believe this demonstrates the strength and flexibility of our business model. I could not be prouder of the entire Team for their focus, hard work and passion for MarineMax. We also believe that the industry experienced a foundational shift in 2020, and specifically for MarineMax, it resulted in a greatly expanded customer base that is embracing and enjoying the boating lifestyle. We continue to add new customers at a seasonally accelerated pace. This foundational layer should provide sustainable growth for years to come, as many existing and new customers will upgrade to larger boats and need additional services."

Mr. McGill continued, "Our deep manufacturer relationships and brand strategy provide us with a competitive advantage by supporting our ability to move inventory between stores to help satisfy the growing demand. Looking ahead, our business outlook remains promising as more people are realizing that boating is a safe way for families to spend time together enjoying the boating lifestyle. Our balance sheet is very well capitalized, allowing us to continue to pursue strategic accretive acquisitions, to strengthen and enhance our digital strategy, to expand with marinas and to further grow our higher margin businesses. We are happy that many people have rediscovered the benefits of the boating lifestyle, which gives us increased confidence for the future."

At September 30, 2020, the Company's liquidity exceeded $237 million, consisting of cash and cash equivalents along with availability under its credit facility.

Fiscal 2021 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 $3.70 to $3.90 for fiscal 2021. This includes earnings contributed by SkipperBud's, which the Company acquired on October 1, 2020. This compares to a non-GAAP adjusted, but fully taxed, diluted earnings per share of $3.42 in fiscal 2020.

About MarineMax

Headquartered in Clearwater, Florida, MarineMax is the nation's largest recreational boat and yacht retailer. Focused on premium brands such as Sea Ray, Boston Whaler, Hatteras, Azimut Yachts, Benetti, Ocean Alexander, Galeon, Grady-White, Harris, Bennington, Crest, MasterCraft, MJM Yachts, NauticStar, Scout, Sailfish, Tige, Yamaha Jet Boats, Aquila, Aviara, and Nautique. MarineMax sells new and used recreational boats and related marine products and services, as well as provides yacht brokerage and charter services. MarineMax currently has 77 retail locations in Alabama, California, Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Washington and Wisconsin. MarineMax also owns Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies with operations in multiple countries. The Company also owns and operates MarineMax Vacations in Tortola, British Virgin Islands. MarineMax is a New York Stock Exchange-listed company. 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, 2020; the foundational shift experienced by the Company and the overall industry and this shift's effects on potential future growth; the Company's competitive advantage and its effect on inventory and sales; the Company's business outlook; the Company's continued efforts to pursue strategic accretive acquisitions, strengthen and enhance its digital strategy, expand with marinas, and to further grow its higher margin businesses; 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 and integration of the recently-acquired SkipperBud's business, 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, the Company's ability to integrate acquisitions into existing operations, and numerous other factors identified in the Company's Form 10-K for the fiscal year ended September 30, 2019 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 Fiscal Year Ended September 30, September 30,

2020 2019 2020 2019





Revenue $ 398,762 $ 308,136 $ $ 1,509,713 1,237,153

Cost of sales 282,296 220,694 1,111,000 914,321

Gross profit 116,466 87,442 398,713 322,832



Selling, general, and 83,714 74,864 291,998 262,300administrative expenses

Income from operations 32,752 12,578 106,715 60,532



Interest expense 785 3,094 9,275 11,579

Income before income tax 31,967 9,484 97,440 48,953provision



Income tax provision 6,384 2,799 22,806 12,968

Net income $ 25,583 $ 6,685 $ 74,634 $ 35,985



Basic net income per common $ 1.18 $ 0.31 $ 3.46 $ 1.61share



Diluted net income per common $ 1.13 $ 0.31 $ 3.37 $ 1.57share



Weighted average number ofcommonshares used in computing net income percommon share:

Basic 21,716,081 21,327,669 21,547,665 22,294,114

Diluted 22,604,060 21,896,257 22,125,338 22,881,147

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

September 30, 2020

September 30, 2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$ 155,493

$ 38,511

Accounts receivable, net

40,195

42,398

Inventories, net

298,002

477,468

Prepaid expenses and other current assets

9,637

10,206

Total current assets

503,327

568,583

Property and equipment, net

141,934

144,298

Operating lease right-of-use assets, net

37,991

-

Goodwill and other intangible assets, net

84,293

64,077

Other long-term assets

7,774

7,125

Total assets

$ 775,319

$ 784,083

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$ 37,343

$ 33,674

Customer deposits

31,821

24,305

Accrued expenses

52,123

42,849

Current operating lease liabilities

6,854

-

Short-term borrowings

144,393

312,065

Total current liabilities

272,534

412,893

Noncurrent operating lease liabilities

33,473

-

Deferred tax liabilities, net

4,509

1,142

Long-term debt, net of current maturities

7,343

-

Other long-term liabilities

2,063

1,229

Total liabilities

319,922

415,264

STOCKHOLDERS' EQUITY:

Preferred stock

-

-

Common stock

28

28

Additional paid-in capital

280,436

269,969

Accumulated other comprehensive income (loss)

829

(669)

Retained earnings

277,699

202,455

Treasury stock

(103,595)

(102,964)

Total stockholders' equity

455,397

368,819

Total liabilities and stockholders' equity

$ 775,319

$ 784,083

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

September 30, September 30, 2020 2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 155,493 $ 38,511

Accounts receivable, net 40,195 42,398

Inventories, net 298,002 477,468

Prepaid expenses and other current assets 9,637 10,206

Total current assets 503,327 568,583



Property and equipment, net 141,934 144,298

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

Goodwill and other intangible assets, net 84,293 64,077

Other long-term assets 7,774 7,125

Total assets $ 775,319 $ 784,083



LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $ 37,343 $ 33,674

Customer deposits 31,821 24,305

Accrued expenses 52,123 42,849

Current operating lease liabilities 6,854 -

Short-term borrowings 144,393 312,065

Total current liabilities 272,534 412,893



Noncurrent operating lease liabilities 33,473 -

Deferred tax liabilities, net 4,509 1,142

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

Other long-term liabilities 2,063 1,229

Total liabilities 319,922 415,264



STOCKHOLDERS' EQUITY:

Preferred stock - -

Common stock 28 28

Additional paid-in capital 280,436 269,969

Accumulated other comprehensive income (loss) 829 (669)

Retained earnings 277,699 202,455

Treasury stock (103,595) (102,964)

Total stockholders' equity 455,397 368,819

Total liabilities and stockholders' equity $ 775,319 $ 784,083

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,

2020

2019

2020

2019

Net income

$ 25,583

$ 6,685

$ 74,634

$ 35,985

Gain Deepwater Horizon settlement

-

(1,252)

-

(1,252)

Store closing expenses

1,659

3,091

1,659

3,091

Hurricane expenses

196

422

-

-

Pro forma tax adjustments for items noted above (1)

(371)

(667)

(388)

(487)

Adjusted net income

$ 27,067

$ 8,279

$ 75,905

$ 37,337

Diluted net income per common share

$ 1.13

$ 0.31

$ 3.37

$ 1.57

Gain Deepwater Horizon Settlement

-

(0.06)

-

(0.05)

Store closing expenses

0.07

0.14

0.07

0.14

Hurricane expenses

0.01

0.02

-

-

Pro forma tax adjustments for items noted above (1)

(0.02)

(0.03)

(0.02)

(0.03)

Adjusted diluted net income per common share

$ 1.19

$ 0.38

$ 3.42

$ 1.63

MarineMax, Inc. and Subsidiaries

Supplemental Financial Information

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

(Unaudited)

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

2020 2019 2020 2019





Net income $ $ 6,685 $ $ 25,583 74,634 35,985

Gain Deepwater Horizon settlement - (1,252) - (1,252)

Store closing expenses 1,659 3,091 1,659 3,091

Hurricane expenses 196 422 - -

Pro forma tax adjustments for items noted (371) (667) (388) (487)above (1)

Adjusted net income $ $ 8,279 $ $ 27,067 75,905 37,337



Diluted net income per common share $ 1.13 $ 0.31 $ 3.37 $ 1.57

Gain Deepwater Horizon Settlement - (0.06) - (0.05)

Store closing expenses 0.07 0.14 0.07 0.14

Hurricane expenses 0.01 0.02 - -

Pro forma tax adjustments for items noted (0.02) (0.03) (0.02) (0.03)above (1)

Adjusted diluted net income per common $ 1.19 $ 0.38 $ 3.42 $ 1.63share

____________(1)

Adjustments for taxes for unusual items are calculated based on the effective tax rate for each respective period presented. View source version on businesswire.com: https://www.businesswire.com/news/home/20201028005180/en/

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