MarineMax Reports Fiscal 2023 Fourth Quarter and Full Year Results

MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat, yacht, and superyacht services company, today announced results for its fiscal 2023 fourth quarter and full year ended September 30, 2023.

Fiscal 2023 Fourth Quarter Highlights

• Record revenue of $594.6 million, up 11%
• Strong same-store sales growth of 8%
• Solid gross profit margin of 34.3%, driven by higher margin businesses
• Net income of $15.1 million, or diluted EPS of $0.67; Adjusted diluted EPS of $0.69
• Adjusted EBITDA of $42.6 million
• Expanded superyacht services in Greece with acquisition of Atalanta Golden Yachts

Fiscal 2023 Full Year Highlights

• Record revenue of $2.39 billion, up 4%
• Same-store sales decrease of 2%
• Strong gross profit margin of 34.9%, driven by higher margin businesses
• Net income of $109.3 million, or diluted EPS of $4.87; Adjusted diluted EPS of $5.21
• Adjusted EBITDA of $239.5 million

CEO & President Commentary

“Our strong close to fiscal year 2023 stands as a testament to the exceptional performance of our team,” stated MarineMax Chief Executive Officer and President Brett McGill. “Fueled by consumer demand for the boating lifestyle, sustained premium-segment momentum and our strategic marketing expertise, we delivered record revenue and generated 8% same-store sales growth in the fourth quarter. While product margins declined as expected amidst the industry’s return to seasonality and greater inventory levels, our gross profit margin remained robust. This reflects the resilience of our premium products, services, and experiences, as well as our success in structurally enhancing our margin profile through strategic acquisitions with higher earnings potential, including IGY Marinas.

“With the addition of businesses such as IGY, we have significantly enhanced the potential for expansion and synergies within our existing superyacht services and luxury yacht offerings,” continued Mr. McGill. “Supported by our strong balance sheet, we continue to actively expand our global market presence, exemplified by our most recent acquisition of Atalanta Golden Yachts in Greece, which closed in early October. As we look ahead to 2024, we are excited to build upon this foundation and deliver on our commitment to providing unparalleled boating and yachting experiences to a growing number of customers worldwide.”

Fiscal 2023 Fourth Quarter Results

Revenue in the fiscal 2023 fourth quarter increased to a record $594.6 million from $536.8 million in the comparable period last year. The 10.8% top-line growth was driven largely by higher new and used boat sales and the acquisition of IGY, which was completed in October 2022. Same-store sales grew 8% in the fourth quarter. IGY was not yet eligible for inclusion in the same-store revenue base.

Gross profit increased 3.5% to $203.7 million from $196.8 million in the prior-year period. Gross profit margin of 34.3% decreased 240 basis points from 36.7% in the fiscal 2022 fourth quarter, primarily as a result of expected lower new and used boat margins, partially offset by the acquisition of IGY.

Selling, general, and administrative expenses totaled $169.4 million, or 28.5% of revenue, in the fourth quarter, compared with $145.8 million, or 27.2% of revenue, for the same period last year. The biggest driver of the expense increase year-over-year was the addition of IGY and other acquisitions.

Interest expense was $15.8 million in the fourth quarter, compared with $1.0 million in the prior-year period, reflecting higher interest rates and the increase in long-term debt associated with the IGY acquisition, as well as increased inventory.

Net income in the fourth quarter was $15.1 million, or $0.67 per diluted share, compared with net income of $38.4 million, or $1.73 per diluted share, in the same period last year.

Adjusted net income¹ in the fourth quarter was $15.8 million, or $0.69 per diluted share, compared with $44.3 million, or $1.99 per diluted share, in the prior-year period. Adjusted EBITDA¹ for the quarter ended September 30, 2023 was $42.6 million, compared with $68.4 million for the same period last year.

Fiscal 2023 Full Year Results

Revenue in the fiscal 2023 full year increased 3.8% to a record $2.39 billion from $2.31 billion in the prior fiscal year, primarily driven by strategic acquisitions, including IGY, and partially offset by a modest decline in same-store sales. Same-store sales decreased 2%, compared with an increase of 5% in the comparable period last year.

Gross profit increased 3.7% to $835.3 million from $805.8 million in the prior fiscal year. Gross profit margin remained flat at 34.9% for the twelve months ended September 30, 2023, reflecting the addition of the higher margin revenue from IGY as well as the expected decline in new and used boat product margins.

Selling, general, and administrative expenses totaled $634.5 million, or 26.5% of revenue, in fiscal year 2023, compared with $540.6 million, or 23.4% of revenue, for the same period last year. The biggest driver of the expense increase year-over-year was the addition of IGY and other acquisitions.

Interest expense was $53.4 million, compared with $3.3 million in the prior period, reflecting higher interest rates and the increase in long-term debt associated with the IGY acquisition, as well as increased inventory.

Net income in the fiscal 2023 full year was $109.3 million, or $4.87 per diluted share, compared with net income of $198.0 million, or $8.84 per diluted share, in the same period last year.

Adjusted net income¹ was $116.8 million, or $5.21 per diluted share, compared with $206.5 million, or $9.22 per diluted share, in the prior-year period. Adjusted EBITDA¹ for the full year ended September 30, 2023 was $239.5 million, compared with $309.6 million for the same period last year.

Fiscal 2024 Guidance

Based on results to date, current business conditions, retail trends and other factors, the Company is providing fiscal year 2024 guidance for Adjusted net income² in the range of $4.50 to $5.00 per diluted share. The Company also is providing fiscal year 2024 guidance for Adjusted EBITDA² in the range of $225 million to $250 million. These expectations do not consider, or give effect for, among other things, material acquisitions that may be completed by the Company during fiscal 2024 or other unforeseen events, including changes in global economic conditions.

Conference Call Information

MarineMax will discuss its fiscal 2023 fourth quarter and full year financial results on a conference call starting at 10:00 a.m. ET today. The conference call can be accessed via the “Investors” section of the Company's website: www.marinemax.com, or by dialing 877-407-0789 (U.S. and Canada) or 201-689-8562 (International). An online replay will be available within one hour of the conclusion of the call and will be archived on the website for one year.

About MarineMax

As the world’s largest lifestyle retailer of recreational boats and yachts, as well as yacht concierge and superyacht services, MarineMax (NYSE: HZO) is United by Water. We have 130 locations worldwide, including 81 dealerships and 66 marina and storage facilities. Our integrated business includes IGY Marinas, which operates luxury marinas in yachting and sport fishing destinations around the world; Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies; Cruisers Yachts, one of the world’s premier manufacturers of premium sport yachts and motor yachts; and Intrepid Powerboats, a premier manufacturer of powerboats. To enhance and simplify the customer experience, we provide financing and insurance services as well as leading digital technology products that connect boaters to a network of preferred marinas, dealers, and marine professionals through Boatyard and Boatzon. In addition, we operate MarineMax Vacations in Tortola, British Virgin Islands, which offers our charter vacation guests the luxury boating adventures of a lifetime. Land comprises 29% of the earth’s surface. We’re focused on the other 71%. Learn more at 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 potential for expansion and synergies within our superyacht services and luxury yacht offerings, the growth of our business in 2024, and our fiscal 2024 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, the performance and integration of the recently-acquired businesses, general economic conditions, as well as those within the Company's industry, the liquidity and strength of our bank group partners, the level of consumer spending, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2022 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.

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¹ This is a non-GAAP measure. See below for an explanation and quantitative reconciliation of each non-GAAP financial measure.
² See “Non-GAAP Financial Measures” below for a discussion of why reconciliations of forward-looking Adjusted Net Income and Adjusted EBITDA are not available without unreasonable effort.

MarineMax, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Amounts in thousands, except share and per share data) (Unaudited)
		Three Months Ended								Fiscal Year Ended
		September 30,								September 30,
		2023				2022				2023				2022
Revenue		$	594,595			$	536,764			$	2,394,706			$	2,308,098
Cost of sales			390,880				339,997				1,559,377				1,502,344
Gross profit			203,715				196,767				835,329				805,754
Selling, general, and administrative expenses			169,399				145,848				634,527				540,550
Income from operations			34,316				50,919				200,802				265,204
Interest expense			15,805				984				53,367				3,283
Income before income tax provision			18,511				49,935				147,435				261,921
Income tax provision			3,272				11,575				37,957				63,932
Net income			15,239				38,360				109,478				197,989
Less: Net income attributable to non-controlling interests			98				—				196				—
Net income attributable to MarineMax, Inc.		$	15,141			$	38,360			$	109,282			$	197,989
Basic net income per common share		$	0.69			$	1.78			$	5.00			$	9.12
Diluted net income per common share		$	0.67			$	1.73			$	4.87			$	8.84
Weighted average number of common shares used in computing net income per common share:
Basic			21,914,961				21,541,279				21,852,425				21,706,225
Diluted			22,753,029				22,231,163				22,429,381				22,399,209

MarineMax, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited)
		September 30,				September 30,
		2023				2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	201,456			$	228,274
Accounts receivable, net			85,780				50,287
Inventories			812,830				454,359
Prepaid expenses and other current assets			23,110				21,077
Total current assets			1,123,176				753,997
Property and equipment, net			527,552				246,011
Operating lease right-of-use assets, net			138,785				96,837
Goodwill			559,820				235,585
Other intangible assets, net			39,713				10,886
Other long-term assets			32,259				9,455
Total assets		$	2,421,305			$	1,352,771
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	71,706			$	34,342
Contract liabilities (customer deposits)			81,700				144,427
Accrued expenses			112,746				89,402
Short-term borrowings			537,060				132,026
Current maturities on long-term debt			33,767				2,882
Current operating lease liabilities			10,070				9,693
Total current liabilities			847,049				412,772
Long-term debt, net of current maturities			389,231				45,301
Noncurrent operating lease liabilities			123,789				89,657
Deferred tax liabilities, net			56,927				15,401
Other long-term liabilities			85,892				6,974
Total liabilities			1,502,888				570,105
SHAREHOLDERS' EQUITY:
Preferred stock			—				—
Common stock			29				29
Additional paid-in capital			323,218				303,432
Accumulated other comprehensive income (loss)			1,303				(2,806	)
Retained earnings			739,949				630,667
Treasury stock			(148,656	)			(148,656	)
Total shareholders’ equity attributable to MarineMax, Inc.			915,843				782,666
Non-controlling interests			2,574			—
Total shareholders’ equity			918,417				782,666
Total liabilities and shareholders’ equity		$	2,421,305			$	1,352,771

MarineMax, Inc. and Subsidiaries Segment Financial Information (Amounts in thousands) (Unaudited)
		Three Months Ended								Fiscal Year Ended
		September 30,								September 30,
		2023				2022				2023				2022
Revenue:
Retail Operations		$	587,313			$	522,750			$	2,294,362			$	2,212,922
Product Manufacturing			57,330				46,469				222,289				176,273
Elimination of intersegment revenue			(50,048	)			(32,455	)			(121,945	)			(81,097	)
Revenue		$	594,595			$	536,764			$	2,394,706			$	2,308,098
Income from operations:
Retail Operations		$	33,973			$	45,062			$	192,487			$	249,186
Product Manufacturing			5,585				6,525				23,420				20,258
Intersegment adjustments			(5,242	)			(668	)			(15,105	)			(4,240	)
Income from operations		$	34,316			$	50,919			$	200,802			$	265,204

MarineMax, Inc. and Subsidiaries Supplemental Financial Information (Amounts in thousands, except share and per share data) (Unaudited)
		Three Months Ended								Fiscal Year Ended
		September 30,								September 30,
		2023				2022				2023				2022
Net income attributable to MarineMax, Inc.		$	15,141			$	38,360			$	109,282			$	197,989
Transaction costs (1)			84				1,696				6,311				3,153
Intangible amortization (2)			2,032				594				7,555				2,363
Change in fair value of contingent consideration (3)			(1,069	)			618				2,372				993
Hurricane expenses (recoveries)			(290	)			4,800				(933	)			4,800
Gain on acquisition of equity investment (4)			—				—				(5,129	)			—
Tax adjustments for items noted above (5)			(134	)			(1,788	)			(2,615	)			(2,759	)
Adjusted net income attributable to MarineMax, Inc.		$	15,764			$	44,280			$	116,843			$	206,539
Diluted net income per common share		$	0.67			$	1.73			$	4.87			$	8.84
Transaction costs (1)			—				0.08				0.28				0.14
Intangible amortization (2)			0.09				0.02				0.34				0.11
Change in fair value of contingent consideration (3)			(0.05	)			0.02				0.11				0.04
Hurricane expenses (recoveries)			(0.01	)			0.22				(0.04	)			0.21
Gain on acquisition of equity investment (4)			—				—				(0.23	)			—
Tax adjustments for items noted above (5)			(0.01	)			(0.08	)			(0.12	)			(0.12	)
Adjusted diluted net income per common share		$	0.69			$	1.99			$	5.21			$	9.22
(1) Transactions costs relate to acquisition transaction and integration 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								Fiscal Year Ended
		September 30,								September 30,
		2023				2022				2023				2022
Net income attributable to MarineMax, Inc.		$	15,141			$	38,360			$	109,282			$	197,989
Interest expense (excluding floor plan)			7,807				889				28,477				2,263
Income tax provision			3,272				11,575				37,957				63,932
Depreciation and amortization			10,799				5,166				41,032				19,418
Stock-based compensation expense			5,954				4,859				21,657				16,013
Transaction costs			84				1,696				6,311				3,153
Gain on acquisition of equity investment			—				—				(5,129	)			—
Change in fair value of contingent consideration			(1,069	)			618				2,372				993
Hurricane expenses (recoveries)			(290	)			4,800				(933	)			4,800
Foreign currency			875				451				(1,575	)			1,000
Adjusted EBITDA		$	42,573			$	68,414			$	239,451			$	309,561

Non-GAAP Financial Measures

This press release, along with the above Supplemental Financial Information table, contains “Adjusted net income,” “Adjusted diluted EPS” and “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization” (“Adjusted EBITDA”), which are non-GAAP financial measures as defined under applicable securities legislation. In determining these measures, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. The Company believes these non-GAAP financial measures are helpful performance indicators that improve the period-to-period comparability of the Company’s results and provide investors with more insight into, and an additional tool to understand and assess, the performance of the Company’s ongoing core business operations. Our board of directors, management team and lenders use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and other items (such as the change in fair value of contingent consideration, hurricane expenses, foreign currency, and transaction costs) that impact the comparability of financial results from period to period. Investors and other readers are encouraged to review the related GAAP financial measures and the above reconciliation and should consider these non-GAAP financial measures as a supplement to, and not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently.

In addition, we have not reconciled our guidance for fiscal year 2024 Adjusted net income and Adjusted EBITDA guidance to net income (the corresponding GAAP measure for each), which is not accessible on a forward-looking basis due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to acquisition contingent consideration and transaction costs. Acquisition contingent consideration and transaction costs, which are likely to be significant to the calculation of net income, are affected by the integration and post-acquisition performance of our acquirees, which is difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted net income and Adjusted EBITDA are not available without unreasonable effort. 

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The Marinemax Stock at the time of publication of the news with a fall of -2,16 % to 27,20EUR on Tradegate stock exchange (25. Oktober 2023, 22:26 Uhr).