MarineMax reports 4Q, year-end results

MarineMax today reported revenue growth of 25 percent in fiscal 2016 to $942 million.
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MarineMax today reported revenue growth of 25 percent in fiscal 2016 to $942 million, led by 22 percent growth in same-store sales for the second consecutive year.

The company said revenue in the fourth quarter grew more than 20 percent to $227.3 million with same-store sales up 12 percent. That growth was on top of 17 percent same-store sales growth last year.

Pretax earnings for fiscal 2016 were $34.8 million, compared with $20.9 million last year. Included in fiscal 2015 pretax earnings was a $1.6 million gain from the sale of real estate, or 6 cents a diluted share. Absent such gain, the company’s pretax earnings grew more than 80 percent in fiscal 2016, to $34.8 million, from $19.3 million.

“Fiscal 2016 was marked by consistent strong sales and sustained positive trends in the marine industry,” MarineMax CEO Bill McGill said in a statement. “Overall, our team produced impressive comparable earnings per share growth of more than 85 percent, driven by our second consecutive year of 22 percent same-store sales growth plus the positive benefits derived from the strategic Russo Marine acquisition, which was completed during the year.”

Net income for the full fiscal year, which ended Sept. 30, was $22.6 million, or 91 cents a diluted share, compared with $48.3 million, or $1.92 a share, in the prior year.

Included in fiscal 2016 and the fourth quarter is a deferred tax asset valuation allowance reversal of $1.1 million net, or 4 cents a diluted share. Similarly, included in fiscal 2015, is a deferred tax asset valuation allowance reversal of $27.4 million net, or $1.09 a diluted share.

“While we produced excellent results for the year, our fourth quarter experienced gross margin pressure as we more aggressively positioned our inventory for the winter season and the expected continued rollout of new models from our manufacturing partners,” McGill said. “This, coupled with the timing of several boat shows, which moved from October to September, shifting costs into the quarter, impacted our final results.”

Pretax earnings for the fourth quarter increased about 15 percent to $6.3 million from $5.4 million last year.

Net income for the quarter was $5.6 million, or 22 cents a diluted share, compared with $32.8 million, or $1.32 a share, in the comparable period last year.

Excluding the deferred tax asset valuation allowance reversals in both periods and applying a pro forma tax provision to the quarter, the company’s comparable non-GAAP diluted earnings per share rose more than 38 percent to 18 cents from 13 cents in the comparable period last year.

“Current trends in the industry remain strong, as evidenced by our increasing sales backlog, the enthusiasm we are experiencing in our showrooms, growing crowds at boat shows, and attendance at our Getaways events,” McGill said.

“Along with the past few years of sustained sales and earnings growth, these trends provide us with confidence that for fiscal 2017 we are well positioned to capture additional market share and earnings growth as the industry recovery continues. With the highest tangible net worth in our history, the right inventory, a committed and proven team, coupled with the ongoing excitement that new models and technology are generating, MarineMax is ready to build upon our past successes as we strive to grow long-term value for our shareholders."

Based on current business conditions, retail trends and other factors, the company expects fully taxed earnings-per-diluted-share to be in the range of $1.04 to $1.14 for fiscal 2017. This compares to a non-GAAP adjusted, but fully taxed, diluted earnings per share of 87 cents in fiscal 2016 and 47 cents in fiscal 2015.

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