MarineMax, Inc. (NYSE:HZO) announced results for its first quarter ended Dec. 31, 2018.
Revenue grew over $5 million, or 2 percent to $241.9 million for the quarter ended Dec. 31, 2018 from $236.9 million in the comparable period last year. Same-store sales were up approximately 1 percent in the quarter. This caps a five-year period in which the December quarter has grown a cumulative 82 percent in same-store sales growth.
The Company, for the fifth consecutive year, produced a profitable December quarter. Pretax earnings rose modestly to $6.5 million, which exceeded the record pretax earnings level attained in the December quarter last year. Included in the quarter ended Dec. 31, 2017, is an increase in the Company’s income tax provision of $889,000 or $0.04 per diluted share, resulting from a re-measurement of the Company’s deferred tax assets and liabilities, as a result of the 2017 Tax Cuts and Jobs Act.
For the quarter ended December 31, 2018, the Company produced net income of $4.9 million and earnings per diluted share grew over 10 percent to $0.21, compared to $0.19 in prior year quarter. Absent the tax provision increase in the December quarter last year, the earnings per diluted share would have been $0.23.
“Our customer centric approach, combined with having the right products, along with our team’s strong execution, contributed meaningfully to our efforts to produce a record quarter of sustained cash flow and earnings in our December quarter,” said W. Brett McGill, MarineMax CEO and president. “We are pleased that our disciplined efforts continue to result in improved gross margins with strong year-over-year growth for the quarter. We outperformed relative to our historical expectations for our December quarter as our mix of sales in the quarter was fairly balanced across all segments, with an edge toward larger product.”
“We ended the quarter well-positioned in terms of inventory, along with considerable balance sheet strength and liquidity. This positions us well for the upcoming selling season and allows us to take advantage of opportunities as they arise. With positive energy and sales coming from the early boat shows, we remain confident entering this important part of the year while working to build additional long-term value for our shareholders,” McGill added.
Based on current business conditions, retail trends and other factors, the Company is reiterating its previously issued expectations for fully taxed earnings per diluted share to be in the range of $1.85 to $1.95 for fiscal 2019. This compares to a non-GAAP adjusted, but fully taxed, diluted earnings per share of $1.70 in fiscal 2018. 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.