MarineMax reports third quarter 2015 fiscal results

CLEARWATER, Fla. – MarineMax, Inc. (NYSE:HZO) announced results for its fiscal third quarter ending on June 30, 2015.

Revenue grew approximately 8 percent to $231.8 million for the quarter, compared with $214.4 million for the comparable quarter last year. Same-store sales increased approximately 10 percent in what the company considers its traditionally largest quarter of the fiscal year. This growth is on top of 22 percent growth in the comparable quarter last year and 16 percent two years prior.

“The net result of our efforts produced the third straight quarter of margin improvement and our year-to-date profitability has more than doubled,” said Chairman, President and Chief Executive Officer Bill McGill in a conference call on July 22 discussing the results. “Certainly, our growth points to an upward trajectory for the long-term marine industry recovery.”

The company’s net income for the quarter was $14.9 million or $0.59 per diluted share, including a $1.6 million or $0.06 per diluted share gain from the sale of real estate, compared to net income of $11.5 million or $0.47 per diluted share for the comparable quarter last year.

Revenue grew approximately 22 percent to $562.1 million for the nine months ending on June 30, 2015 compared with $460.6 million for the comparable period last year. Same-store sales increased approximately 23 percent, on top of 5 percent growth in the comparable period last year.

“So far the fiscal year has seen strong growth with another important seasonal quarter underway,” said Chief Financial Officer Michael McLamb. “The quarter did finish well with a strong second half of June, particularly in the markets that had faced adverse weather longer than normal.”

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The company’s net income for the nine months ended June 30, 2015 improved to $15.5 million, or $0.61 per diluted share, which includes the real estate sale gain of $1.6 million or $0.06 per diluted share, compared with net income of $6.2 million or $0.25 per diluted share in the comparable period last year.

McGill said a large body of used boats sold at MarineMax during the quarter weighed on the margins but new boat margins expanded in the third quarter.

“As we’ve been indicating, we do believe that as we get fresher inventory mix due to newer models from key manufacturing partners, we should have the potential for a tail win at the margin line, and we’re beginning to see some of those benefits,” said McGill. “While the industry saw mixed performance in our key segments, we remain confident that recreational day boats will recover, given the strength we are seeing and the demand for the newer models, including outboard-powered models.”

McGill added that center console outboard-powered boats are becoming more important to the company’s results, albeit still less material than the inboard and recreational day boat segments, which have been the most meaningful to the company.

“We have more and more outboard-powered product coming from our suppliers, let’s say Sea Ray for example: Ten years ago, we had none. In the coastal market, which is where we have a big presence, coastal markets are dominated by outboard-powered product,” said McLamb. “While we’re still doing good with sterndrives in these markets, we are seeing certainly a strong demand for the outboard-powered new models from Sea Ray.”

Overall, the company is incredibly confident about the growth potential for the company in the fourth quarter.

“We are seeing very strong unit growth as all areas of the country are now enjoying summer. We are confident in the continued long-term recovery and are convinced that future sales revenue and profits will greatly exceed those we are producing today,” said McLamb.

“We have the financial capacity and flexibility, along with a strong team and leading products, to support future growth as a one-stop solution for all of our customers’ boating needs,” added McGill. “This significant competitive advantage makes us confident we can further fortify our position as the leading boat dealer in the country.”

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