CLEARWATER, Fla.--(BUSINESS WIRE)--MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat and yacht retailer, today announced results for its first quarter ended December 31, 2017.
Revenue grew over $10 million, or 4.4% on top of 33% growth in the prior year, to $236.9 million for the quarter ended December 31, 2017 from $226.9 million in the comparable period last year. Same-store sales were flat as compared to 28% same-store sales growth in the same period last year, which concluded an 81% three-year stacked same-store sales growth period for the Company. The December quarter is typically the Company’s smallest revenue quarter of the year, which often results in a loss quarter for most marine dealers, including MarineMax.
The Company, for the fourth consecutive year, produced a profitable December quarter. Pretax earnings grew over 44% to $6.5 million, a December quarter record. For the quarter ended December 31, 2017, the Company produced record net income of $4.2 million and earnings per diluted share grew over 72% to $0.19 as compared to net income of $2.6 million or $0.11 per diluted share last year. The Company’s effective tax rate for the December quarter was reduced to 34.8% from 40.9% in the comparable period last year, due primarily to the 2017 Tax Cuts and Jobs Act legislation that was recently passed. Included in the December quarter is an increase in the Company’s income tax provision of $889,000, or $0.04 per diluted share, resulting from a re-measurement of the Company’s deferred tax assets and liabilities, as a result of the new tax legislation. Absent such increase, the Company’s diluted earnings per share would have been $0.23 in the quarter ended December 31, 2017.
William H. McGill, Jr., Chairman and Chief Executive Officer stated, “The strong execution by our team and the ongoing commitment to delivering enhanced and sustained cash flow with earnings growth, resulted in record profitability in our December quarter. Our focus on maintaining a disciplined sales and service approach, while having the right models of inventory, enabled our superior performance in the quarter. Trends in the quarter were generally encouraging as we experienced a healthy mix in product sales as well as an increase in our higher margin businesses, resulting in meaningful gross margin improvement over last year. Absent the additional expenses associated with the January 2017 acquisition we completed, our team controlled costs and produced strong leverage in the quarter which helped to drive our record earnings.”
Mr. McGill continued, “We began our important March quarter with a greater backlog than last year and thus far early boat shows are encouraging. With improving economic optimism, supported by the recent tax legislation, improving consumer confidence, and ample inventory, we are well-positioned to gain market share and drive positive growth in 2018.”
Based on current business conditions, the recently passed tax legislation, retail trends and other factors, the Company is raising its annual guidance expectations for fully taxed earnings per diluted share to be in the range of $1.30 to $1.40 for fiscal 2018 from its previous guidance of $1.10 to $1.20. 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.
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, Cobalt, 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, 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 first quarter ended December 31, 2017; the Company’s effective tax rate for fiscal year 2018; improving economic optimism; improving consumer confidence; and the Company’s positioning to gain market share and drive positive growth in 2018. 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 our 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, 2017 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)
Three Months Ended
|Cost of sales||177,672||173,737|
Selling, general, and
|Income from operations||9,003||6,043|
|Income before income tax provision||6,461||4,474|
|Income tax provision||2,249||1,831|
|Basic net income per common share||$||0.19||$||0.11|
|Diluted net income per common share||$||0.19||$||0.11|
|Weighted average number of common shares used in computing net income per common share:|
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
|Cash and cash equivalents||$||35,566||$||37,079|
|Accounts receivable, net||28,726||22,954|
|Prepaid expenses and other current assets||6,615||5,713|
|Total current assets||511,627||429,368|
|Property and equipment, net||127,407||123,547|
|Other long-term assets, net||30,404||13,378|
|Deferred tax assets, net||7,471||19,839|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Total current liabilities||364,667||268,188|
|Additional paid-in capital||253,714||243,814|
|Total stockholders’ equity||309,456||315,530|
|Total liabilities and stockholders’ equity||$||676,909||$||586,132|