On October 31, 2024, MarineMax Inc (HZO, Financial) released its 8-K filing detailing the fiscal 2024 fourth quarter and full year results. The company reported a fourth-quarter revenue of $563.1 million, falling short of the analyst estimate of $583.46 million, and a diluted EPS of $0.17, below the expected $0.28. The full-year revenue was $2.43 billion, slightly under the annual estimate of $2.453 billion, with a diluted EPS of $1.65, just shy of the $1.66 estimate.
Company Overview
MarineMax Inc is a United States-based company specializing in the sale of new and used recreational boats under premium brands, along with related marine products such as engines, parts, and accessories. The company also provides services including repair, maintenance, storage, boat financing, insurance, brokerage sales, and yacht chartering. MarineMax operates primarily through its Retail Operations and Product Manufacturing segments, with the former generating the majority of its revenue. The company serves customers across the U.S.
Performance and Challenges
The fiscal 2024 fourth quarter was notably impacted by Hurricane Helene, which led to a 5% year-over-year decline in revenue. The same-store sales also decreased by 5%, reflecting the adverse effects of the hurricane. Despite these challenges, MarineMax maintained a gross profit margin of 34.3%, showcasing strong contributions from higher-margin businesses such as finance, insurance, marinas, and superyacht services.
Financial Achievements
MarineMax's ability to sustain a gross margin above 34% is significant in the retail-cyclical industry, where margins can be volatile. The company's strategic focus on higher-margin businesses has helped mitigate the impact of declining boat sales. Additionally, MarineMax reported an annual same-store sales growth of 1%, despite the challenging retail environment.
Key Financial Metrics
In the fourth quarter, MarineMax's net income was $4.0 million, or $0.17 per diluted share, compared to $15.1 million, or $0.67 per diluted share, in the same period last year. Adjusted EBITDA was $33.5 million, down from $42.6 million in the prior-year period. The company's SG&A expenses were $166.4 million, representing 29.5% of revenue, slightly higher than the previous year's 28.5%.
“Resilient is the word that captures the spirit of our team members, who have shown extraordinary dedication and perseverance in the face of the devastating storms that hit Florida and the southeast over the past month,” said Brett McGill, Chief Executive Officer and President of MarineMax.
Analysis and Outlook
MarineMax's performance in fiscal 2024 highlights the resilience of its business model amid external challenges. The company's strategic shift towards higher-margin segments has been crucial in maintaining profitability. However, the impact of hurricanes on operations and sales underscores the vulnerability of the business to natural disasters. Looking ahead, MarineMax has provided fiscal 2025 guidance, expecting adjusted net income per diluted share to range between $1.80 and $2.80, and adjusted EBITDA between $150 million and $180 million.
MarineMax's focus on cost-cutting and operational efficiency will be critical in navigating the uncertain retail environment and achieving its financial targets for the upcoming year.
Explore the complete 8-K earnings release (here) from MarineMax Inc for further details.
