MarineMax reports 4Q, year-end results

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MarineMax Inc. grew revenue more than 10 percent in its fiscal fourth quarter, to $250.6 million, from $227.4 million in the quarter last year, and increased same-store sales for the quarter by 5 percent, on top of 12 percent growth for the comparable period last year.

That was ahead of analyst expectations, which had dropped because of anticipated sales disruptions from hurricanes Harvey and Irma.

The company beat earnings expectations in the fourth quarter, with adjusted earnings per share of 22 cents, compared with expectations of 11 cents. Net income for the quarter that ended Sept. 30, was $3.9 million, or 17 cents a diluted share, compared with $5.6 million, or 22 cents a share, in the comparable period last year.

MarineMax produced full-year revenue growth of 12 percent, to about $1.1 billion, compared with $942.1 million in fiscal 2016.

Same-store sales for the year increased more than 5 percent on top of 22 percent growth for the prior two consecutive fiscal years.

“The MarineMax team delivered a strong close to the fiscal year, as we did our best to overcome the challenges brought on by hurricanes Irma and Harvey,” said MarineMax CEO Bill McGill in a statement. “Our results in the fourth quarter, considering the impact to the state of Florida, our largest market, is a testament to our customers’ desire for the boating lifestyle, our team’s passion for MarineMax and the strategies that have led to our industry-leading results.”

In the fourth quarter and fiscal year, the company was able to grow sales and expand gross margins, which also beat analyst expectations, “driven by improving product margins and meaningful contributions from our higher-margin businesses,” McGill said.

Net income for the fiscal year was $23.5 million, or 95 cents a diluted share, compared with $22.6 million, or 91 cents a share, in the prior year.

Included in fiscal 2017 are $2.9 million of unusual expenses associated with Hurricane Irma. Excluding the Irma-related expenses, pretax earnings rose 17 percent, to $40.7 million, from $34.8 million in the prior year.

“While current trends in the industry remain positive, choppiness has continued in the large-boat segment,” McGill said. “We are working closely with our manufacturing partners to ensure inventory is aligned with retail trends. Fortunately, each of our manufacturers has done a good job launching new models in the last few years, leaving our inventory about as fresh as it has ever been.”

“We have also added initiatives to better align expenses with the current environment,” McGill said. “Having said this, we remain enthusiastic about the long-term strength of the industry and the business, given the ongoing activity with our customers. As we look ahead we remain committed to improving our earnings as the MarineMax team continues to execute on our customer-centric approach in order to build upon our industry-leading market-share gains and efforts to build additional shareholder value.”