Business Wire | Jul 23, 2020 06:45AM EDT

MarineMax Reports Record Third Quarter Results

Jul. 23, 2020

CLEARWATER, Fla.--(BUSINESS WIRE)--Jul. 23, 2020--MarineMax, Inc. (NYSE: HZO), the nation's largest recreational boat and yacht retailer, today announced results for its third quarter ended June 30, 2020.

Revenue grew approximately 30% to $498.3 million for the quarter ended June 30, 2020, from $383.5 million for the comparable quarter last year. The increase was driven by same-store sales growth of 37% which was on top of a 3% increase in the comparable period last year. Net income for the quarter ended June 30, 2020, grew over 83% to $34.9 million, compared to $19.1 million last year, while earnings per diluted share increased over 88% to $1.58, compared to $0.84 in the comparable quarter last year.

For the nine months ended June 30, 2020, revenue increased approximately 20% to $1.1 billion compared with $929.0 million for the same period last year. Same-store sales were up approximately 22%, on top of 5% growth for the comparable period last year. Net income for the nine months ended June 30, 2020, rose over 67% to $49.1 million, or $2.23 per diluted share, compared with $29.3 million, or $1.26 per diluted share for the comparable period last year.

W. Brett McGill, Chief Executive Officer and President stated, "Generating same-store sales growth of 37% driven by unit growth, clearly demonstrates the strength and flexibility of our business model and the MarineMax Team. Our team worked hard to overcome unprecedented uncertainty in the quarter, while generating record results, as we accomplished our goal of uniting our customers and their families on the water, safely. Our digital investments further enhanced our lead visibility and created significant efficiencies in our sales efforts, while increasing our on-line presence. Overall, we added new customers to boating and to our data base, adding a layer of future growth potential that should benefit us long-term."

Mr. McGill continued, "With one of the strongest balance sheets in the industry, we remain well capitalized to make strategic accretive acquisitions to further enhance our geographic presence, to add to our marina strategy and to further grow our higher margin businesses. To that point, we were pleased to recently add super yacht powerhouse Northrop & Johnson. Together with Fraser Yachts, this unified combination provides us unrivaled global scale, while further diversifying MarineMax into higher margin, digitally focused businesses. Although the entire industry is lean on inventory due to the strong demand for the boating lifestyle, our deep manufacturer relationships, flexible inventory management and valuable real estate locations positions us well to continue to take share. I am proud of our ability to be nimble and disciplined, creating exceptional customer experiences while driving record results in our traditionally largest quarter."

At June 30, 2020, the Company's liquidity exceeded $180 million consisting of cash and cash equivalents along with availability under its credit facility, before considering its sizable unleveraged real estate portfolio.

As the COVID-19 pandemic is complex and evolving rapidly, the Company will continue to monitor ongoing developments and respond accordingly. The Company continues to comply with orders of local and state governments in all jurisdictions in which it operates to help ensure the safety of its team members and customers.

Fiscal 2020 Guidance

As previously disclosed, the Company withdrew its prior 2020 guidance given the continued significant uncertainties related to COVID-19.

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, Scarab Jet Boats, 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 59 retail locations in Alabama, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina and Texas. 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 third quarter ended June 30, 2020; the Company's capital position to make strategic accretive acquisitions; the Company's positioning to take customer share; and the COVID-19 pandemic and the Company's monitoring of it. 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 ability 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 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, the continued recovery of the industry, 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 Nine Months Ended June 30, June 30,

2020 2019 2020 2019



Revenue $ 498,304 $ 383,494 $ 1,110,951 $ 929,017

Cost of sales 374,851 285,784 828,704 693,627

Gross profit 123,453 97,710 282,247 235,390



Selling, general,and administrative 74,838 68,968 208,284 187,436expenses

Income from 48,615 28,742 73,963 47,954operations



Interest expense 2,133 2,936 8,490 8,485

Income before income 46,482 25,806 65,473 39,469tax provision



Income tax provision 11,555 6,719 16,422 10,169

Net income $ 34,927 $ 19,087 $ 49,051 $ 29,300



Basic net income per $ 1.62 $ 0.86 $ 2.28 $ 1.30common share



Diluted net income $ 1.58 $ 0.84 $ 2.23 $ 1.26per common share



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



Basic 21,499,408 22,243,895 21,491,117 22,619,802

Diluted 22,045,900 22,821,202 21,965,355 23,212,983



MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

June 30, June 30, 2020 2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 86,919 $ 71,618

Accounts receivable, net 69,478 49,104

Inventories, net 314,096 434,729

Prepaid expenses and other current assets 11,133 11,221

Total current assets 481,626 566,672



Property and equipment, net 141,897 143,318

Operating lease right-of-use assets, net 39,279 --

Goodwill and other intangible assets, net 65,404 38,607

Other long-term assets 7,754 6,810

Total assets $ 735,960 $ 755,407



LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $ 39,441 $ 31,601

Customer deposits 30,106 24,262

Accrued expenses 47,775 37,359

Current operating lease liabilities 7,262 --

Short-term borrowings 147,049 289,842

Total current liabilities 271,633 383,064



Noncurrent operating lease liabilities 34,248 --

Deferred tax liabilities, net 4,221 1,284

Other long-term liabilities 833 1,273

Total liabilities 310,935 385,621



STOCKHOLDERS' EQUITY:

Preferred stock -- --

Common stock 28 27

Additional paid-in capital 276,606 269,554

Accumulated other comprehensive loss (130 ) --

Retained earnings 252,116 195,770

Treasury stock (103,595 ) (95,565 )

Total stockholders' equity 425,025 369,786

Total liabilities and stockholders' equity $ 735,960 $ 755,407

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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