MarineMax reports Fiscal 2023 third quarter results

MarineMax © MarineMax

MarineMax, Inc. (NYSE: HZO), the world's largest recreational boat, yacht, and superyacht services company, announced results for its fiscal third quarter ended June 30, 2023.

Fiscal 2023 Third Quarter Highlights

• Record revenue of $721.8 million
• Strong gross margin of 33.8%
• Net income of $44.4 million, or diluted EPS of $1.98; Adjusted diluted EPS of $2.07
• Adjusted EBITDA of $83.5 million
• IGY Marinas contributes to Company growth
• Completes acquisition of C&C Boat Works

CEO & President Commentary

"Our Team outperformed our expectations in the third quarter, highlighted by record revenue, solid earnings, and strong cash flows. Robust consumer demand and enthusiasm for boating, particularly in the premium segment, fueled new and used boat revenue and resulted in a modest increase in same-store sales in the quarter," stated MarineMax Chief Executive Officer and President Brett McGill. "We continue to execute on our strategy to structurally enhance our margin profile through premium products, services and experiences that enable customers to enjoy the boating lifestyle. While the marine industry is seeing a return to seasonality that led to incrementally more aggressive retail pricing during the quarter, our margins remained healthy, strengthened by the more profitable business lines in our integrated marine portfolio, as well as strategic acquisitions such as IGY Marinas.

"The addition of IGY Marinas is significantly enhancing our worldwide reach while creating opportunities for synergies with our other superyacht services offerings," Mr. McGill continued. "Capitalizing on our strong balance sheet, in the quarter we also added C&C Boat Works of Minnesota to the MarineMax family. With C&C's significant storage capabilities, combined with our nearby existing operations, we are better able to serve the vibrant Minnesota boating community."

Fiscal 2023 Third Quarter Results

Revenue in the fiscal 2023 third quarter increased to a record $721.8 million from $688.5 million in the comparable period last year. The 4.8% top-line growth was driven primarily by the acquisition of IGY Marinas, which the Company acquired in October 2022, increased manufacturing revenue and stronger new and used boat revenue. Same-store sales increased slightly in the third quarter compared with a decline of 5% a year ago. IGY Marinas and boat manufacturing revenue are not included in the same-store sales comparison.

Gross profit increased 3.1% to $243.8 million from $236.5 million in the prior-year period. Gross profit margin of 33.8% decreased 50 basis points from 34.3% in the fiscal 2022 third quarter, primarily due to revenue mix.

Selling, general, and administrative expenses totaled $169.2 million, or 23.4% of revenue, in the third quarter compared with $141.2 million, or 20.5% of revenue, for the same period last year, primarily reflecting the addition of IGY Marinas.

Interest expense increased to $14.8 million in the third quarter from $1.0 million in the prior-year period, reflecting higher interest rates as well as the increase in long-term debt associated with the IGY Marinas acquisition and greater inventory.

Net income in the third quarter was $44.4 million, or $1.98 per diluted share, compared with net income of $70.2 million, or $3.17 per diluted share, in the same period last year.

Adjusted net income in the third quarter was $46.5 million, or $2.07 per diluted share, compared with $71.5 million, or $3.23 per diluted share, in the prior-year period. Adjusted EBITDA for the quarter ended June 30, 2023 was $83.5 million, compared with $105.5 million for the same period last year.

Fiscal 2023 Guidance

Based on results to date, current business conditions, retail trends and other factors, the Company is narrowing its fiscal year 2023 guidance for Adjusted earnings to a range of $5.10 to $5.50 per diluted share, compared with a prior range of $4.90 to $5.50 per diluted share. The Company also is narrowing its fiscal year 2023 guidance for Adjusted EBITDA2 to a range of $225 million to $245 million, compared with a prior range of $220 million to $245 million. These expectations do not consider, or give effect for, among other things, material acquisitions that may be completed by the Company during fiscal 2023 or other unforeseen events, including changes in global economic conditions.

Conference Call Information

MarineMax will discuss its fiscal 2023 third quarter results and outlook 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.