HZO
$17.00
Marinemax
$.25
1.49%
Earnings Details
3rd Quarter June 2017
Thursday, July 20, 2017 6:45:00 AM
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Summary

MarineMax Lowers Guidance

Marinemax (HZO) reported 3rd Quarter June 2017 earnings of $0.57 per share on revenue of $329.8 million. The consensus earnings estimate was $0.68 per share on revenue of $383.2 million. Revenue fell 4.6% compared to the same quarter a year ago.

The company said it expects fiscal 2017 earnings of $0.97 to $1.02 per share. The company's previous guidance was earnings of $1.14 to $1.24 per share and the current consensus earnings estimate is $1.21 per share for the year ending September 30, 2017.

MarineMax Inc is a recreational boat dealer in the United States. It is engaged in retail sale, brokerage and service of new and used boats, motors, trailers, marine parts and accessories and offers slip and storage accommodations.

Results
Reported Earnings
$0.57
Earnings Whisper
-
Consensus Estimate
$0.68
Reported Revenue
$329.8 Mil
Revenue Estimate
$383.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

MarineMax Reports Third Quarter Fiscal 2017 Results

~ Gross Margins Increased 290 Basis Points in the Third Quarter ~

--~Year-to-Date EPS Increased 13% ~

--~ Updates Annual Guidance for Fiscal 2017 ~

MarineMax, Inc. (HZO), the nation’s largest recreational boat and yacht retailer, today announced results for its third quarter ended June 30, 2017.

Revenue was $329.8 million for the quarter ended June 30, 2017, compared with $345.6 million for the comparable quarter last year. Same-store sales decreased 10% following a robust 44% growth comparison in the same period a year ago. Due primarily to the strength of product margins and a rise in the Company’s traditionally higher margin businesses, gross margin increased 290 basis points in the quarter ended June 30, 2017 over the prior year. The Company’s net income was $14.2 million, or $0.57 per diluted share for the quarter ended June 30, 2017, compared to net income of $13.8 million, or $0.56 per diluted share for the comparable quarter last year.

Revenue increased 12% to $801.7 million for the nine months ended June 30, 2017 compared with $714.7 million for the comparable period last year. Same-store sales grew approximately 6% on top of 25% growth for the comparable period last year. Net income for the nine months ended June 30, 2017 was $19.6 million or $0.78 per diluted share, up 13%, compared with net income of $17.0 million, or $0.69 per diluted share for the comparable period last year.

William H. McGill, Jr., Chairman, President, and Chief Executive Officer stated, "We are pleased with our team’s ability to drive unit sales growth and strong gross margin expansion during the important June quarter. Reports of industry softness in larger product categories, combined with delayed sales due to unseasonal Northeast weather, dampened our overall revenue and therefore earnings in the quarter. We believe the revenue impact from these challenges will be made up in the future as the underlying trends in the industry are healthy, as evidenced by our ability to grow units on a comparable basis and meaningfully increase gross margins in the quarter. Our product portfolio, new innovative models and customer centric approach continues to resonate well with consumers."

Mr. McGill continued, "We remain confident in our ability to deliver industry leading results. Fundamentally, the demand for the boating lifestyle remains strong and our long-term outlook for the industry is intact. With our capital rich balance sheet, healthy inventory levels, premium brands and strong team, we are well positioned to drive earnings and cash flows while taking advantage of opportunities that may arise."

2017 Guidance

Based on current business conditions, retail trends and other factors, the Company is updating its annual guidance expectations for fully taxed earnings per diluted share to be in the range of $0.97 to $1.02 for fiscal 2017, from $1.14 to $1.24. These expectations do not take into account, or give effect for future material acquisitions that may be completed by the Company during the fiscal year or other unforeseen events.

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, Meridian, Hatteras, Azimut Yachts, Ocean Alexander, Galeon, Grady-White, Harris, Bennington, Crest, Scout, Sailfish, Sea Pro, Sportsman, Scarab Jet Boats, Yamaha Jet Boats, Aquila, 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 62 retail locations in Alabama, California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina and Texas 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, 2017; the underlying trends and long-term outlook in the Company’s industry; our product portfolio, new models, and customer-centric approach resonating well with consumers; the Company’s ability to deliver industry leading results; the Company’s position to drive earnings and cash flows; and the Company’s fiscal 2017 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, 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, 2016 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,
2017
2016
2017
2016
Revenue
$
329,809
$
345,592
$
801,702
$
714,695
Cost of sales
245,017
266,690
602,713
545,152
Gross profit
84,792
78,902
198,989
169,543
Selling, general, and administrative expenses
59,557
54,325
161,433
136,735
Income from operations
25,235
24,577
37,556
32,808
Interest expense
1,897
1,473
5,511
4,282
Income before income tax provision
23,338
23,104
32,045
28,526
Income tax provision
9,094
9,285
12,409
11,530
Net income
$
14,244
$
13,819
$
19,636
$
16,996
Basic net income per common share
$
0.59
$
0.57
$
0.81
$
0.70
Diluted net income per common share
$
0.57
$
0.56
$
0.78
$
0.69
Weighted average number of common shares used in computing net
income per common share:
Basic
24,336,777
24,159,070
24,293,512
24,175,671
Diluted
25,095,398
24,770,980
25,045,046
24,757,516
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
June 30,
June 30,
2017
2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
58,930
$
55,560
Accounts receivable, net
41,696
27,324
Inventories, net
385,277
306,631
Prepaid expenses and other current assets
5,872
11,319
Total current assets
491,775
400,834
Property and equipment, net
127,750
115,346
Other long-term assets, net
29,978
13,271
Deferred tax assets, net
11,753
22,195
Total assets
$
661,256
$
551,646
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
25,634
$
19,718
Customer deposits
22,451
18,153
Accrued expenses
33,547
27,242
Short-term borrowings
241,642
176,972
Total current liabilities
323,274
242,085
Long-term liabilities
3,250
2,463
Total liabilities
326,524
244,548
STOCKHOLDERS’ EQUITY:
Preferred stock
--
--
Common stock
26
26
Additional paid-in capital
248,600
238,816
Retained earnings
122,848
97,626
Treasury stock
(36,742)
(29,370)
Total stockholders’ equity
334,732
307,098
Total liabilities and stockholders’ equity
$
661,256
$
551,646

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SOURCE: MarineMax, Inc.

MarineMax, Inc.
Michael H. McLamb, 727-531-1700
Chief Financial Officer
or
Abbey Heimensen, 727-531-1700
Public Relations
or
ICR, LLC.
Brad Cohen, 203-682-8211
bcohen@icrinc.com