CLEARWATER, Fla.--(BUSINESS WIRE)--MarineMax, Inc. (NYSE:HZO), the nation’s largest recreational boat and yacht retailer, today announced results for its second quarter ended March 31, 2018.
Revenue grew over 10% to $270.6 million for the quarter ended March 31, 2018 from $245.0 million for the comparable quarter last year. Same-store sales increased 8% on top of 13% in the comparable period last year. Income before taxes increased over 84% to $7.8 million for the quarter ended March 31, 2018 from $4.2 million for the same quarter last year. Net income rose 125% to $6.2 million, or $0.27 per diluted share, for the quarter ended March 31, 2018 compared to net income of $2.7 million, or $0.11 per diluted share, for the comparable quarter last year. Net income in the quarter ended March 31, 2018 benefitted from certain tax credits that represented approximately $380,000, or $0.02 per diluted share.
Revenue increased approximately 8% to $507.5 million for the six months ended March 31, 2018 compared with $471.9 million for the comparable period last year. Same-store sales grew approximately 4% on top of 20% growth for the comparable period last year. Income before taxes increased approximately 64% to $14.3 million for the six-months ended March 31, 2018 from $8.7 million for the same period last year. Net income for the six months ended March 31, 2018 rose 93% to $10.4 million, or $0.46 per diluted share, compared with net income of $5.4 million, or $0.22 per share, for the comparable period last year. Net income in the first half of 2018 benefitted from certain tax credits that represented approximately $380,000, or $0.02 per diluted share.
William H. McGill, Jr., Chairman and Chief Executive Officer stated, “A combination of strong unit growth and constant focus on our higher margin businesses enabled our team to drive meaningful year-over-year gross margin and earnings per share improvement. As our industry continues to recover, the environment for capturing additional product margins remains encouraging. Our 8% same-store sales growth was driven by increased traffic at boat shows, online and in our stores, as demand was aided by strong consumer confidence. Our team executed well by controlling costs in the quarter, which allowed for strong flow-through, despite an unusual increase in health insurance claims in the quarter.”
Mr. McGill continued, “New, innovative models from our manufacturing partners are continuing to be well received and are helping to drive demand from existing boaters as well as those new to boating, as evidenced by our growing backlog. MarineMax remains well positioned to build on its industry leading share position as we enter the height of the boating season. Through continuing to deliver our customers the highest level of service, providing a broad array of new products and working to ensure that each boating experience is maximized, MarineMax will remain the retailer of choice for years to come.”
Based on current business conditions, retail trends, it’s most recent results and other factors, the Company is again raising its annual fiscal 2018 expectations for fully taxed earnings per diluted share to range from $1.44 to $1.50 versus prior expectations ranging from $1.30 to $1.40. 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, 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 63 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 second quarter ended March 31, 2018; the environment for capturing additional product margins; the reception of new models from the Company’s manufacturing partners; the Company’s positioning to build on its status in the industry; and the Company's fiscal 2018 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 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
Six Months Ended
|Cost of sales||201,312||183,959||378,984||357,696|
|Selling, general, and administrative expenses||58,659||54,781||108,905||101,876|
|Income from operations||10,634||6,278||19,637||12,321|
|Income before income tax provision||7,794||4,233||14,255||8,707|
|Income tax provision||1,610||1,484||3,859||3,315|
|Basic net income per common share||$||0.28||$||0.11||$||0.47||$||0.22|
|Diluted net income per common share||$||0.27||$||0.11||$||0.46||$||0.22|
|Weighted average number of common shares used in computing net income per common share:|
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
|Cash and cash equivalents||$||57,103||$||51,670|
|Accounts receivable, net||35,844||36,941|
|Prepaid expenses and other current assets||5,093||5,041|
|Total current assets||521,947||498,338|
|Property and equipment, net||129,878||126,615|
|Goodwill and other long-term assets, net||31,805||29,541|
|Deferred tax assets, net||6,524||18,635|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Total current liabilities||368,180||347,703|
|Additional paid-in capital||257,011||246,326|
|Total stockholders’ equity||318,937||320,791|
|Total liabilities and stockholders’ equity||$||690,154||$||673,129|