MarineMax Reports Q2 Revenue Grew 12%

MarineMax, Inc. announced results for its fiscal second quarter ended March 31, 2019.

Revenue grew over 12% to $303.6 million for the quarter ended March 31, 2019 from $270.6 million for the comparable quarter last year. Same-store sales for the quarter increased 12% on top of 8% last year. Income before taxes was $7.2 million for the quarter ended March 31, 2019, compared to $7.8 million for the same quarter last year. Net income was $5.3 million, or $0.23 per diluted share, for the quarter ended March 31, 2019 compared to net income of $6.2 million, or $0.27 per diluted share, for the comparable quarter last year. Net income in the quarter ended March 31, 2018 benefitted from certain tax credits that represented approximately $0.4 million, or $0.02 per diluted share.

The company’s results for the fiscal second quarter 2019 were impacted by inclement weather in key markets that potentially delayed sales and additional expenses were incurred to drive the substantial sales growth, including growth in larger product. Furthermore, the mix of product and softer than anticipated unit sales affected profitability in the quarter.

For the six-months ended March 31, 2019, revenue increased approximately 8% to $545.5 million compared with $507.5 million for the same period last year. Same-store sales grew approximately 7% in the first half of fiscal year 2019 on top of 4% last year. Income before taxes was $13.7 million for the six-months ended March 31, 2019 compared to $14.3 million for the same period last year. Net income for the six months ended March 31, 2019 was $10.2 million, or $0.44 per diluted share, compared with net income of $10.4 million, or $0.46 per diluted share, for the comparable period last year. Net income in the first half of 2018 benefitted from certain tax credits that represented approximately $0.4 million, or $0.02 per diluted share.

W. Brett McGill, CEO and president, stated, “Our team succeeded in driving strong sales growth in the quarter, even as we and the industry incurred challenges that included rougher than normal winter weather in many of our markets. Based on preliminary industry data, we believe our same store sales performance in the quarter drove continued market share gains. Our proactive decision to invest to capture additional sales impacted both our margins and profitability. As we enter our most active season, we have the right products in stock along with a large on-order backlog that provides us additional momentum moving into the June quarter, historically our largest quarter.”

McGill continued, “With this backdrop, a committed team and an enthusiastic customer base, along with our recent expansion in the high growth market of Texas, MarineMax is well-positioned as the nation’s preferred boating and yacht retailer. We are confident that demand for the boating lifestyle remains strong and resilient. Nevertheless, it is important for our Company to enhance its efforts going forward to more effectively align costs with the current environment, while further refining operations to produce improved operating margins and cashflow.”