8-K
MARINEMAX INC (HZO)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of Earliest Event Reported): | October 28, 2020 |
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MarineMax, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
| Florida | 1-14173 | 59-3496957 | |
|---|---|---|---|
| _____________________<br><br><br>(State or other jurisdiction | _____________<br><br><br>(Commission | ______________<br><br><br>(I.R.S. Employer | |
| of incorporation) | File Number) | Identification No.) | |
| 2600 McCormick Drive, Suite 200, Clearwater, Florida | 33759 | ||
| _________________________________<br><br><br>(Address of principal executive offices) | ___________<br><br><br>(Zip Code) | ||
| Registrant’s telephone number, including area code: | 727-531-1700 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br><br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $.001 per share | HZO | New York Stock Exchange |
Item 2.02 Results of Operations and Financial Condition.
On October 28, 2020, MarineMax, Inc. issued a press release announcing its results of operations for its fourth fiscal quarter and fiscal year ended September 30, 2020. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The information in this Report of Form 8-K (including the exhibit) is furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing.
Item 9.01 Financial Statements and Exhibits.
Press release of MarineMax, Inc. dated October 28, 2020, reporting the financial results for the fourth fiscal quarter and fiscal year ended September 30, 2020.
Exhibit Index
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release of MarineMax, Inc. dated October 28, 2020, reporting the financial results for the fourth fiscal quarter and fiscal year ended September 30, 2020. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MarineMax, Inc. | ||
|---|---|---|
| By: | /s/ Michael H. McLamb<br><br><br><br>Name: Michael H. McLamb<br>Title: Executive Vice President, Chief Financial Officer and Secretary | |
| October 28, 2020 |
hzo-ex991_6.htm
Exhibit 99.1
MARINEMAX REPORTS RECORD FOURTH QUARTER
AND FISCAL YEAR RESULTS
~Achieves Highest Revenue and Earnings in Company’s History~
~Revenue Approaches $400 Million in Fourth Quarter; 33% Same-Store Sales Growth~
~Fourth Quarter Earnings Per Share More than Tripled to $1.13; Adjusted EPS $1.19~
~Fiscal 2020 Revenue Exceeds $1.5 Billion; 25% Same-Store Sales Growth~
~Fiscal 2020 Earnings Per Share More than Doubled to $3.37; Adjusted EPS $3.42~
~Company Provides Annual Guidance for Fiscal 2021~
CLEARWATER, FL, October 28, 2020 – MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat and yacht retailer, today announced record results for its fourth quarter and full year ended September 30, 2020.
Revenue grew over 29% to $398.8 million for the quarter ended September 30, 2020, from $308.1 million for the comparable quarter last year. The increase was driven by strong same-store sales growth of 33%. Included in the quarters ended September 30, 2020 and September 30, 2019, were net charges of $1.5 million or $0.06 per diluted share and $1.6 million, or $0.07 per diluted share, respectively. The charges primarily related to costs associated with the Company’s store optimization plan which resulted in the closure of one store in the current quarter and eight in the comparable quarter last year.
Net income for the quarter ended September 30, 2020, more than tripled to $25.6 million, or $1.13 per diluted share, compared to net income of $6.7 million, or $0.31 per diluted share in the comparable quarter last year. Excluding the charges in both periods, net income for the quarter ended September 30, 2020, grew to $27.1 million, with earnings per diluted share more than tripling to $1.19, as compared to $8.3 million or $0.38 per diluted share in the same period last year.
For the fiscal year ended September 30, 2020, revenue increased 22% to $1.51 billion compared with $1.24 billion for the same period last year. The growth was driven by strong same-store sales growth of 25%. Included in the years ended September 30, 2020 and September 30, 2019, were net charges of $1.3 million, or $0.05 per diluted share and $1.4 million, or $0.06 per diluted share, respectively. The charges primarily related to costs associated with the Company’s store optimization plan.
Net income for the fiscal year ended September 30, 2020, more than doubled to $74.6 million, or $3.37 per diluted share, compared to net income of $36.0 million, or $1.57 per diluted share in the prior year. Excluding the charges in both periods, net income for the year ended September 30, 2020, grew to $75.9 million, with earnings per diluted share more than doubling to $3.42, as compared to $37.3 million or $1.63 per diluted share in the same period last year.
W. Brett McGill, Chief Executive Officer and President stated, “The MarineMax Team generated a record $1.5 billion of revenue and more than doubled our earnings per share while overcoming these extremely uncertain times. We believe this demonstrates the strength and flexibility of our business model. I could not be prouder of the entire Team for their focus, hard work and passion for MarineMax. We also believe
that the industry experienced a foundational shift in 2020, and specifically for MarineMax, it resulted in a greatly expanded customer base that is embracing and enjoying the boating lifestyle. We continue to add new customers at a seasonally accelerated pace. This foundational layer should provide sustainable growth for years to come, as many existing and new customers will upgrade to larger boats and need additional services.”
~ more ~
Mr. McGill continued, “Our deep manufacturer relationships and brand strategy provide us with a competitive advantage by supporting our ability to move inventory between stores to help satisfy the growing demand. Looking ahead, our business outlook remains promising as more people are realizing that boating is a safe way for families to spend time together enjoying the boating lifestyle. Our balance sheet is very well capitalized, allowing us to continue to pursue strategic accretive acquisitions, to strengthen and enhance our digital strategy, to expand with marinas and to further grow our higher margin businesses. We are happy that many people have rediscovered the benefits of the boating lifestyle, which gives us increased confidence for the future.”
At September 30, 2020, the Company’s liquidity exceeded $237 million, consisting of cash and cash equivalents along with availability under its credit facility.
Fiscal 2021 Guidance
Based on current business conditions, retail trends and other factors, the Company currently expects earnings per diluted share to be in the range of $3.70 to $3.90 for fiscal 2021. This includes earnings contributed by SkipperBud’s, which the Company acquired on October 1, 2020. This compares to a non-GAAP adjusted, but fully taxed, diluted earnings per share of $3.42 in fiscal 2020.
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, Hatteras, Azimut Yachts, Benetti, Ocean Alexander, Galeon, Grady-White, Harris, Bennington, Crest, MasterCraft, MJM Yachts, NauticStar, Scout, Sailfish, Tige, Yamaha Jet Boats, Aquila, Aviara, 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 77 retail locations in Alabama, California, Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Washington and Wisconsin. MarineMax also owns Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies with operations in multiple countries. The Company also owns 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 fourth quarter and the fiscal year ended September 30, 2020; the foundational shift experienced by the Company and the overall industry and this shift's effects on potential future growth; the Company's competitive advantage and its effect on inventory and sales; the Company's business outlook; the Company's continued efforts to pursue strategic accretive acquisitions, strengthen and enhance its digital strategy, expand with marinas, and to further grow its higher margin businesses; and the Company's fiscal 2021 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 SkipperBud's business, the impacts (direct and indirect) of COVID-19 on the Company’s business, the Company’s employees, the Company’s manufacturing partners, and the overall economy, 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, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2019 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.
| Contact: | ||
|---|---|---|
| Michael H. McLamb | Investors: | |
| Chief Financial Officer | Brad Cohen or Dawn Francfort | |
| 727.531.1700 | ICR, LLC. | |
| Media: | investorrelations@marinemax.com | |
| Abbey Heimensen | ||
| MarineMax, Inc. |
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
| Three Months Ended | Year Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||
| 2020 | 2019 | 2020 | 2019 | |||||
| Revenue | $ | 398,762 | $ | 308,136 | $ | 1,509,713 | $ | 1,237,153 |
| Cost of sales | 282,296 | 220,694 | 1,111,000 | 914,321 | ||||
| Gross profit | 116,466 | 87,442 | 398,713 | 322,832 | ||||
| Selling, general, and administrative expenses | 83,714 | 74,864 | 291,998 | 262,300 | ||||
| Income from operations | 32,752 | 12,578 | 106,715 | 60,532 | ||||
| Interest expense | 785 | 3,094 | 9,275 | 11,579 | ||||
| Income before income tax provision | 31,967 | 9,484 | 97,440 | 48,953 | ||||
| Income tax provision | 6,384 | 2,799 | 22,806 | 12,968 | ||||
| Net income | $ | 25,583 | $ | 6,685 | $ | 74,634 | $ | 35,985 |
| Basic net income per common share | $ | 1.18 | $ | 0.31 | $ | 3.46 | $ | 1.61 |
| Diluted net income per common share | $ | 1.13 | $ | 0.31 | $ | 3.37 | $ | 1.57 |
| Weighted average number of common shares used in computing<br><br><br>net income per common share: | ||||||||
| Basic | 21,716,081 | 21,327,669 | 21,547,665 | 22,294,114 | ||||
| Diluted | 22,604,060 | 21,896,257 | 22,125,338 | 22,881,147 |
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
| September 30, | September 30, | |||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 155,493 | $ | 38,511 | ||
| Accounts receivable, net | 40,195 | 42,398 | ||||
| Inventories, net | 298,002 | 477,468 | ||||
| Prepaid expenses and other current assets | 9,637 | 10,206 | ||||
| Total current assets | 503,327 | 568,583 | ||||
| Property and equipment, net | 141,934 | 144,298 | ||||
| Operating lease right-of-use assets, net | 37,991 | — | ||||
| Goodwill and other intangible assets, net | 84,293 | 64,077 | ||||
| Other long-term assets | 7,774 | 7,125 | ||||
| Total assets | $ | 775,319 | $ | 784,083 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable | $ | 37,343 | $ | 33,674 | ||
| Customer deposits | 31,821 | 24,305 | ||||
| Accrued expenses | 52,123 | 42,849 | ||||
| Current operating lease liabilities | 6,854 | — | ||||
| Short-term borrowings | 144,393 | 312,065 | ||||
| Total current liabilities | 272,534 | 412,893 | ||||
| Noncurrent operating lease liabilities | 33,473 | — | ||||
| Deferred tax liabilities, net | 4,509 | 1,142 | ||||
| Long-term debt, net of current maturities | 7,343 | — | ||||
| Other Long-term liabilities | 2,063 | 1,229 | ||||
| Total liabilities | 319,922 | 415,264 | ||||
| STOCKHOLDERS' EQUITY: | ||||||
| Preferred stock | — | — | ||||
| Common stock | 28 | 28 | ||||
| Additional paid-in capital | 280,436 | 269,969 | ||||
| Accumulated other comprehensive income (loss) | 829 | (669 | ) | |||
| Retained earnings | 277,699 | 202,455 | ||||
| Treasury stock | (103,595 | ) | (102,964 | ) | ||
| Total stockholders’ equity | 455,397 | 368,819 | ||||
| Total liabilities and stockholders’ equity | $ | 775,319 | $ | 784,083 |
MarineMax, Inc. and Subsidiaries
Supplemental Financial Information
(Amounts in thousands, except share and per share data)
(Unaudited)
| Three Months Ended | Year Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Net income | $ | 25,583 | $ | 6,685 | $ | 74,634 | $ | 35,985 | ||||
| Gain Deepwater Horizon settlement | — | (1,252 | ) | — | (1,252 | ) | ||||||
| Store closing expenses | 1,659 | 3,091 | 1,659 | 3,091 | ||||||||
| Hurricane expenses | 196 | 422 | — | — | ||||||||
| Pro forma tax adjustments for items noted above (1) | (371 | ) | (667 | ) | (388 | ) | (487 | ) | ||||
| Adjusted net income | $ | 27,067 | $ | 8,279 | $ | 75,905 | $ | 37,337 | ||||
| Diluted net income per common share | $ | 1.13 | $ | 0.31 | $ | 3.37 | $ | 1.57 | ||||
| Gain Deepwater Horizon Settlement | — | (0.06 | ) | — | (0.05 | ) | ||||||
| Store closing expenses | 0.07 | 0.14 | 0.07 | 0.14 | ||||||||
| Hurricane expenses | 0.01 | 0.02 | — | — | ||||||||
| Pro forma tax adjustments for items noted above (1) | (0.02 | ) | (0.03 | ) | (0.02 | ) | (0.03 | ) | ||||
| Adjusted diluted net income per common share | $ | 1.19 | $ | 0.38 | $ | 3.42 | $ | 1.63 | ||||
| (1) | Adjustments for taxes for unusual items are calculated based on the effective tax rate for each respective period presented. | |||||||||||
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