MarineMax reports Q4, fiscal 2019 results

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Fraser Yachts, which MarineMax acquired in July, appears to carry higher corporate margins, according to one analyst.

Fraser Yachts, which MarineMax acquired in July, appears to carry higher corporate margins, according to one analyst.

MarineMax reported revenues of $308.1 million for its fourth quarter, nearly flat with the $308.6 million for the same quarter in 2018.

Same-store sales for the quarter declined 9 percent but were up against 22 percent growth for the comparable period last year.

The company’s optimization plan should help align expenses with current industry conditions while not impacting revenue or customer service, CEO Brett McGill said in a statement.

“Likewise, we are focused on reducing our inventory levels, and we will utilize the upcoming boat show season and select targeted events, as well as reduced orders, to bring inventory in line with industry trends,” McGill said. “We remain committed to further building upon our success by growing our higher-margin businesses, exploring accretive opportunistic acquisitions and the ongoing expansion in our digital channel to drive earnings along with shareholder value.”

The fourth quarter results include $2.3 million of net adjustments before taxes ($0.07 per diluted share) for “unusual items” related to the closing of eight overlapping locations and Hurricane Dorian-related costs, according to the company. Those costs were partially offset by MarineMax receiving its final payment with the Deepwater Horizon Settlement Program.

The quarter also included $1.4 million of adjustments before taxes, or $0.05 per diluted share, related to contingent consideration obligation estimates associated with acquisitions made by the company in prior years that reduced expenses.

Net income for the quarter was $6.7 million, or $0.31 per diluted share, compared to net income of $11.5 million, or $0.50 per diluted share in the comparable period last year.

Excluding the impact from the net adjustments in 2019 and the gain in 2018, adjusted diluted earnings per share was $0.38, compared to $0.45 for the same period last year.

Fiscal 2019 revenue grew more than 5 percent to approximately $1.24 billion, compared to $1.18 billion in fiscal 2018. Same-store sales for the year were up more than 1 percent for the year, which was on top of 10 percent growth for fiscal 2018.

MarineMax gave 2020 guidance of $1.58 to $1.68 per share, which was lower than consensus on TheStreet of $1.76.

“The MarineMax team’s effort in the fourth quarter resulted in significant growth in units and in our higher margin businesses, against a backdrop of a challenged industry and a very large year-over-year comparison of 22 percent growth in the September quarter last year,” McGill said.

“We were also energized by the revenue and margin contribution from Fraser Yachts, our global megayacht brokerage and services business that we acquired early in our fiscal fourth quarter,” he added. “With our customer-centric approach that emphasizes the multitude of advantages derived from the boating lifestyle, along with our team’s intensity, we overcame some of the prevailing industry malaise that has seemingly permeated the entire year. In this environment, we are proud that we grew annual comparable unit sales, increased our product margins and expanded our higher margin businesses.”

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