8-K
MARINEMAX INC (HZO)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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 26, 2023 |
|---|
MarineMax, Inc.
(Exact name of Registrant as Specified in Its Charter)
| Florida | 1-14173 | 59-3496957 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 2600 McCormick Drive<br><br>Suite 200 | ||
| Clearwater, Florida | 33759 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: 727 531-1700 | ||
| --- |
(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))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $.001 per share | HZO | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company 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. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 26, 2023, MarineMax, Inc. issued a press release announcing its results of operations for its fourth fiscal quarter and fiscal year ended September 30, 2023. 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 26, 2023, reporting the financial results for its fourth fiscal quarter and fiscal year ended September 30, 2023.
Exhibit Index
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release of MarineMax, Inc. dated October 26, 2023, reporting the financial results for its fourth fiscal quarter and fiscal year ended September 30, 2023. |
| 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 thereunto duly authorized.
| MarineMax, Inc. | |||
|---|---|---|---|
| Date: | October 26, 2023 | By: | /s/ Michael H. McLamb |
| Name: Michael H. McLamb<br>Title: Executive Vice President, Chief Financial Officer and Secretary |
EX-99.1
Exhibit 99.1
MarineMax Reports Fiscal 2023 Fourth Quarter and Full Year Results
~ Posts Record Fourth Quarter and Full Year Revenue, Fueled by Robust Demand for the Boating Lifestyle ~
~ Provides Fiscal 2024 Guidance ~
~ Earnings Conference Call at 10:00 a.m. ET Today ~
Clearwater, Florida, October 26, 2023 — 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.
1 This is a non-GAAP measure. See below for an explanation and quantitative reconciliation of each non-GAAP financial measure.
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 marinas 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.
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.
| Investor Contacts | ||
|---|---|---|
| Mike McLamb | Scott Solomon or Laura Resag | |
| Chief Financial Officer | Sharon Merrill Associates, Inc. | |
| MarineMax, Inc. | 857-383-2409 | |
| 727-531-1700 | investors@marinemax.com. |