On July 25, 2024, MarineMax Inc (HZO, Financial) released its 8-K filing for the fiscal 2024 third quarter, showcasing a robust performance despite challenging market conditions. MarineMax Inc is a United-States-based company that sells new and used recreational boats under premium brands, and related marine products, like engines, parts, and accessories. The company is also engaged in other businesses, including providing services of repair, maintenance, and storage; managing related boat financing, insurance, and others; offering brokerage sales of boats and yachts; and operating a yacht charter business. The reportable segments of the company are Retail Operations and Product Manufacturing. The Retail Operations segment generates the majority of the company's revenue. The sale of new and used boats accounts for the majority of the company's total revenue. It serves customers across the U.S.
Performance Highlights
MarineMax Inc reported a 5% year-over-year increase in revenue for the third quarter, reaching $757.7 million, surpassing the analyst estimate of $725.82 million. This growth was primarily driven by an increase in boat sales, reflecting higher new and used boat revenue as well as other areas of the company’s Retail Operations segment.
Despite the revenue growth, the company faced some challenges. Gross profit decreased slightly by 1.0% to $242.1 million from $243.8 million in the prior-year period. The gross profit margin also saw a decline, dropping to 32.0% from 33.8% last year, due to higher promotional activities aimed at driving boat sales amidst a tough retail environment.
Financial Achievements
MarineMax Inc's net income for the third quarter was $31.6 million, or $1.37 per diluted share, compared to $44.4 million, or $1.98 per diluted share, in the same period last year. Adjusted net income was $34.8 million, or $1.51 per diluted share, which exceeded the analyst estimate of $1.40 per share. Adjusted EBITDA for the quarter was $70.4 million, down from $83.5 million in the previous year.
Income Statement and Key Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $757.7 million | $721.8 million |
| Gross Profit | $242.1 million | $243.8 million |
| Net Income | $31.6 million | $44.4 million |
| Adjusted EBITDA | $70.4 million | $83.5 million |
CEO Commentary
“Despite persistent retail headwinds in the third quarter, our team executed well, delivering 5% top-line growth,” stated Chief Executive Officer and President Brett McGill. “Our solid third-quarter performance in this challenging operating environment underscores the importance of our value-creation strategy, which focuses on expanding our high-margin, less cyclical revenue streams. This strategic expansion, encompassing marinas, superyacht services, and other offerings, has strengthened our gross margin profile—now consistently exceeding 30%—and enhanced our cash flow generation and balance sheet resilience.”
Balance Sheet and Cash Flow
MarineMax Inc's balance sheet remains strong with total assets of $2.59 billion, up from $2.38 billion in the previous year. The company reported cash and cash equivalents of $242.4 million, an increase from $226.1 million last year. Inventories also saw a rise to $880.4 million from $739.1 million.
Fiscal 2024 Guidance
MarineMax Inc reaffirmed its fiscal year 2024 guidance, expecting adjusted net income to range between $2.20 to $3.20 per diluted share and adjusted EBITDA between $155 million to $190 million. This guidance reflects the company's confidence in its strategic initiatives and ability to navigate the current market conditions.
For more detailed financial information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from MarineMax Inc for further details.
