MarineMax, Inc. Reports Stellar Fiscal 2023 Third Quarter Performance
MarineMax, Inc. (NYSE: HZO), the global leader in recreational boat, yacht, and superyacht services, proudly unveils its stellar results for the fiscal third quarter, culminating on June 30, 2023.
Third Quarter 2023 Distinctions:
- Revenue Peak: Soaring to an all-time high of $721.8 million.
- Remarkable Gross Margin: Achieved 33.8%.
- Net Income: Reported at $44.4 million, leading to diluted EPS of $1.98; Adjusted to an EPS of $2.07.
- Adjusted EBITDA: Touched $83.5 million.
- Strategic Growth: Both IGY Marinas and the acquisition of C&C Boat Works propel the company forward.
Words from the Helm:
Brett McGill, Chief Executive Officer and President of MarineMax, remarked, “The third quarter displayed our team’s exceptional capability to exceed expectations. Record revenue generation and robust cash flows were driven by a marked increase in consumer demand for boating, especially in the luxury domain. We remain committed to refining our margins by offering premium products, services, and experiences to encapsulate the essence of the boating lifestyle.”
“Furthermore,” McGill added, “the inclusion of IGY Marinas to our portfolio amplifies our global presence and opens up synergies with our superyacht services. And, leveraging our robust financial position, we’ve integrated C&C Boat Works of Minnesota, enhancing our capacity to cater to the dynamic Minnesota boating community.”
Breaking Down the Numbers:
Q3 2023 witnessed a revenue surge to $721.8 million, up from $688.5 million last year. This impressive 4.8% growth is largely attributed to the strategic acquisition of IGY Marinas in October 2022, bolstered manufacturing, and amplified new/used boat sales.
Despite the return to seasonality in marine industry pricing, our gross profit scaled up by 3.1% to $243.8 million. However, the inclusion of IGY Marinas led to selling, general, and administrative expenses amounting to $169.2 million.
Fiscal 2023 Outlook:
In light of the current trends and conditions, MarineMax is fine-tuning its fiscal 2023 guidance. Adjusted earnings are forecasted between $5.10 to $5.50 per diluted share, with Adjusted EBITDA projected between $225 million to $245 million.
| 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, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | $ | 721,844 | $ | 688,537 | $ | 1,800,111 | $ | 1,771,334 | ||||||||
| Cost of sales | 478,036 | 452,064 | 1,168,497 | 1,162,347 | ||||||||||||
| Gross profit | 243,808 | 236,473 | 631,614 | 608,987 | ||||||||||||
| Selling, general, and administrative expenses | 169,227 | 141,173 | 465,128 | 394,702 | ||||||||||||
| Income from operations | 74,581 | 95,300 | 166,486 | 214,285 | ||||||||||||
| Interest expense | 14,798 | 1,008 | 37,562 | 2,299 | ||||||||||||
| Income before income tax provision | 59,783 | 94,292 | 128,924 | 211,986 | ||||||||||||
| Income tax provision | 15,455 | 24,113 | 34,685 | 52,357 | ||||||||||||
| Net income | 44,328 | 70,179 | 94,239 | 159,629 | ||||||||||||
| Less: Net (loss) income attributable to non-controlling interests | (88 | ) | — | 98 | — | |||||||||||
| Net income attributable to MarineMax, Inc. | $ | 44,416 | $ | 70,179 | $ | 94,141 | $ | 159,629 | ||||||||
| Basic net income per common share | $ | 2.03 | $ | 3.26 | $ | 4.31 | $ | 7.34 | ||||||||
| Diluted net income per common share | $ | 1.98 | $ | 3.17 | $ | 4.22 | $ | 7.11 | ||||||||
| Weighted average number of common shares used in computing net income per common share: | ||||||||||||||||
| Basic | 21,885,400 | 21,524,315 | 21,831,350 | 21,761,811 | ||||||||||||
| Diluted | 22,427,443 | 22,173,273 | 22,321,269 | 22,455,828 | ||||||||||||
| MarineMax, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| June 30, | June 30, | |||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 226,134 | $ | 281,351 | ||||
| Accounts receivable, net | 95,018 | 61,863 | ||||||
| Inventories | 739,114 | 374,217 | ||||||
| Prepaid expenses and other current assets | 24,881 | 18,566 | ||||||
| Total current assets | 1,085,147 | 735,997 | ||||||
| Property and equipment, net | 521,637 | 226,647 | ||||||
| Operating lease right-of-use assets, net | 135,452 | 100,127 | ||||||
| Goodwill | 562,277 | 236,713 | ||||||
| Other intangible assets, net | 40,968 | 11,481 | ||||||
| Other long-term assets | 34,814 | 9,104 | ||||||
| Total assets | $ | 2,380,295 | $ | 1,320,069 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 47,202 | $ | 56,533 | ||||
| Contract liabilities (customer deposits) | 97,785 | 138,375 | ||||||
| Accrued expenses | 118,576 | 97,088 | ||||||
| Short-term borrowings | 514,023 | 107,222 | ||||||
| Current maturities on long-term debt | 32,409 | 3,028 | ||||||
| Current operating lease liabilities | 9,967 | 10,323 | ||||||
| Total current liabilities | 819,962 | 412,569 | ||||||
| Long-term debt, net of current maturities | 399,229 | 45,834 | ||||||
| Noncurrent operating lease liabilities | 119,759 | 92,774 | ||||||
| Deferred tax liabilities, net | 54,449 | 17,805 | ||||||
| Other long-term liabilities | 84,539 | 8,347 | ||||||
| Total liabilities | 1,477,938 | 577,329 | ||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 29 | 29 | ||||||
| Additional paid-in capital | 320,383 | 300,411 | ||||||
| Accumulated other comprehensive income (loss) | 3,245 | (1,351 | ) | |||||
| Retained earnings | 724,808 | 592,307 | ||||||
| Treasury stock | (148,656 | ) | (148,656 | ) | ||||
| Total shareholders’ equity attributable to MarineMax, Inc. | 899,809 | 742,740 | ||||||
| Non-controlling interests | 2,548 | — | ||||||
| Total shareholders’ equity | 902,357 | 742,740 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,380,295 | $ | 1,320,069 | ||||
| MarineMax, Inc. and Subsidiaries | ||||||||||||||||
| Segment Financial Information | ||||||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue: | ||||||||||||||||
| Retail Operations | $ | 687,168 | $ | 657,930 | $ | 1,707,049 | $ | 1,690,172 | ||||||||
| Product Manufacturing | 51,884 | 48,802 | 164,959 | 129,804 | ||||||||||||
| Elimination of intersegment revenue | (17,208 | ) | (18,195 | ) | (71,897 | ) | (48,642 | ) | ||||||||
| Revenue | $ | 721,844 | $ | 688,537 | $ | 1,800,111 | $ | 1,771,334 | ||||||||
| Income from operations: | ||||||||||||||||
| Retail Operations | $ | 68,050 | $ | 90,655 | $ | 158,514 | $ | 204,124 | ||||||||
| Product Manufacturing | 5,089 | 5,903 | 17,834 | 13,733 | ||||||||||||
| Intersegment adjustments | 1,442 | (1,258 | ) | (9,862 | ) | (3,572 | ) | |||||||||
| Income from operations | $ | 74,581 | $ | 95,300 | $ | 166,486 | $ | 214,285 | ||||||||
| MarineMax, Inc. and Subsidiaries | ||||||||||||||||
| Supplemental Financial Information | ||||||||||||||||
| (Amounts in thousands, except share and per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net income attributable to MarineMax, Inc. | $ | 44,416 | $ | 70,179 | $ | 94,141 | $ | 159,629 | ||||||||
| Acquisition costs (1) | 111 | 939 | 6,227 | 1,456 | ||||||||||||
| Intangible amortization (2) | 1,925 | 630 | 5,524 | 1,769 | ||||||||||||
| Change in fair value of contingent consideration (3) | 1,211 | 141 | 3,441 | 375 | ||||||||||||
| Hurricane expenses (recoveries) | (452 | ) | — | (644 | ) | — | ||||||||||
| Gain on acquisition of equity investment (4) | — | — | (5,129 | ) | — | |||||||||||
| Tax adjustments for items noted above (5) | (724 | ) | (438 | ) | (2,534 | ) | (889 | ) | ||||||||
| Adjusted net income attributable to MarineMax, Inc. | $ | 46,487 | $ | 71,451 | $ | 101,026 | $ | 162,340 | ||||||||
| Diluted net income per common share | $ | 1.98 | $ | 3.17 | $ | 4.22 | $ | 7.11 | ||||||||
| Acquisition costs (1) | — | 0.04 | 0.28 | 0.06 | ||||||||||||
| Intangible amortization (2) | 0.09 | 0.03 | 0.25 | 0.08 | ||||||||||||
| Change in fair value of contingent consideration (3) | 0.05 | 0.01 | 0.15 | 0.02 | ||||||||||||
| Hurricane expenses (recoveries) | (0.02 | ) | — | (0.03 | ) | — | ||||||||||
| Gain on acquisition of equity investment (4) | — | — | (0.23 | ) | — | |||||||||||
| Tax adjustments for items noted above (5) | (0.03 | ) | (0.02 | ) | (0.11 | ) | (0.04 | ) | ||||||||
| Adjusted diluted net income per common share | $ | 2.07 | $ | 3.23 | $ | 4.53 | $ | 7.23 | ||||||||
| (1) Acquisition costs relate to acquisition transaction costs in the period. |
| (2) Represents amortization expense for acquisition-related intangible assets. |
| (3) Represents expenses to record contingent consideration liabilities at fair value. |
| (4) Represents gain on a previously held equity investment upon acquisition of the entire business. |
| (5) Adjustments for taxes for items are calculated based on the effective tax rate for each respective period presented and the jurisdiction of the adjustment. |
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net income attributable to MarineMax, Inc. | $ | 44,416 | $ | 70,179 | $ | 94,141 | $ | 159,629 | ||||||||
| Interest expense (excluding floor plan) | 7,485 | 749 | 20,669 | 1,374 | ||||||||||||
| Income tax provision | 15,455 | 24,113 | 34,685 | 52,357 | ||||||||||||
| Depreciation and amortization | 9,419 | 4,948 | 27,391 | 14,252 | ||||||||||||
| Stock-based compensation expense | 5,490 | 3,935 | 15,703 | 11,110 | ||||||||||||
| Acquisition costs | 111 | 939 | 6,227 | 1,456 | ||||||||||||
| Gain on acquisition of equity investment | — | — | (5,129 | ) | — | |||||||||||
| Change in fair value of contingent consideration | 1,211 | 141 | 3,441 | 375 | ||||||||||||
| Hurricane expenses (recoveries) | (452 | ) | — | (644 | ) | — | ||||||||||
| Foreign currency | 352 | 508 | (2,451 | ) | 549 | |||||||||||
| Adjusted EBITDA | $ | 83,487 | $ | 105,512 | $ | 194,033 | $ | 241,102 | ||||||||
Non-GAAP Financial Measures
