MarineMax reports ‘very strong fourth quarter,’ with revenue of $309 million

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MarineMax reported that revenue increased more than 23 percent to $309 million in its fourth quarter, up from $251 million last year. Same-store sales for the quarter were up 22 percent, on top of 5 percent growth for the comparable period last year.

“The MarineMax team delivered a very strong fourth quarter, with same-store sales growth of 22 percent, capping an already strong fiscal 2018,” said MarineMax president and CEO Brett McGill in a statement. “Considering that the mix of sales in the quarter was skewed toward larger yachts, we delivered consolidated gross margins that were above our expectations.”

Included in the quarter was $1.4 million of adjustments before taxes related to contingent consideration obligation estimates associated with acquisitions made by the company in prior years, which reduced expenses.

Included in the same quarter last year was $2.9 million of unusual expenses associated with Hurricane Irma. Additionally, there were unusual tax-related items that reduced the company’s tax provision by $401,000 net.

Net income for the quarter was $11.5 million, or $0.50 per diluted share, compared to net income of $3.9 million, or $0.17 per diluted share in the comparable period last year, when the company was impacted by Hurricane Irma.

Excluding the impact from the gain in 2018 and the unusual items in 2017, 2018 increased 105 percent to $0.45, compared with adjusted diluted earnings per share for the same period last year.

For fiscal year 2018, revenue grew 12 percent to approximately $1.2 billion, compared to $1.1 billion in fiscal 2017. Same-store sales for the year improved 10 percent on top of 5 percent growth for the prior fiscal year.

Included in fiscal 2018 results is the $1.4 million before taxes, or $0.05 per diluted share for the contingent consideration adjustment, as well as non-recurring unusual costs of $1.2 million before taxes. Included in fiscal 2017 are the unusual Hurricane Irma expenses of $2.9 million before taxes and tax items.

Net income for the fiscal year was $39.3 million, or $1.71 per diluted share, compared to net income of $23.5 million, or $0.95 per diluted share, in the prior year. Excluding the unusual items in both periods, adjusted net income rose 58 percent to $39.1 million, and diluted earnings per share rose 70 percent to $1.70, compared to $24.8 million, or $1.00 per diluted share, in the prior year.

“Our strong 2018 results reduced our inventory levels as we planned and added meaningful strength to our already formidable balance sheet,” McGill said. “We are well-positioned to take advantage of opportunities as they arise. Looking ahead, we will work to build on the achievements of this past fiscal year. Our focus will remain on growing our higher-margin businesses as we take advantage of new innovative products we are receiving to drive sales, margins and earnings growth while we build additional shareholder value.”

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 $1.85 to $1.95 for fiscal 2019, compared to $1.70 in fiscal 2018.

The adjustments to fiscal 2018 include the gain associated with contingent consideration, as well as the non-recurring unusual costs. These expectations do not take into account, or give effect for, material acquisitions that may be completed by the company during fiscal 2019 or other unforeseen events.

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