MarineMax, Inc. announced results for its fiscal second quarter ended March 31, 2020.
Revenue grew almost 2% to $308.5 million for the quarter ended March 31, 2020 from $303.6 million for the comparable quarter last year. Same-store sales for the quarter increased over 1% on top of a 12% during the same period last year. Income before taxes was $6.7 million for the quarter ended March 31, 2020, compared to $7.2 million for the same quarter last year. Net income was $5.1 million, or $0.23 per diluted share, for the quarter ended March 31, 2020 compared to net income of $5.3 million, or $0.23 per diluted share, for the comparable quarter last year.
The company said results for the fiscal second quarter 2020 were partially impacted by the historic global pandemic. Despite the growing impact of COVID-19 during March, the company generated positive same-store sales in the quarter as it utilized its digital platform and promotional activity to improve traffic and sales.
For the six-months ended March 31, 2020, revenue increased over 12% to $612.6 million compared with $545.5 million for the same period last year. Same-store sales grew approximately 12% in the first half of fiscal year 2020 on top of 7% growth during the same period last year. Income before taxes rose 39% to $19.0 million for the six-months ended March 31, 2020 from $13.7 million for the same period last year. Net income for the six months ended March 31, 2020 grew 38% to $14.1 million, with earnings per diluted share rising 46% to $0.64 per diluted share, from net income of $10.2 million, or $0.44 per diluted share, for the comparable period last year.
W. Brett McGill, Chief Executive Officer and President, stated, “While we are keenly focused on managing our business to optimize cash flow, our highest priority remains with the health and safety of our employees, customers and the communities in which we operate. With most waterways open, we are committed to offering essential services to our boating communities and providing resources to get our customers and their families out on the water together, safely. Our strategy of investing in high margin businesses, best in class technology and focusing our team’s efforts on premium products and brands has served us well. Our business is further benefiting from our fully integrated CRM system and data analytics, creating a seamless experience for our customers.”
McGill continued, “With one of the strongest and lowest leveraged balance sheets in the industry, we believe we have sufficient financial flexibility and liquidity to navigate this crisis. As our cycle tested management team has demonstrated through past challenged economic times, our business model is resilient and resonates with customers. Furthermore, our balance sheet is even stronger today. Given our significant unencumbered real estate holdings, flexible leases, unleveraged inventory, cost reductions and inventory management, we are well positioned to overcome and potentially capitalize during the current situation. As COVID-19 recedes, we are confident that now more than ever, our customers will be spending more time out on the water, close to home.”
MarineMax ended the second quarter of fiscal 2020 with $90 million of liquidity on its balance sheet, comprised of $64 million of cash and cash equivalents along with $26 million available under its floorplan financing facility. The company’s $440 million floorplan facility had $363 million outstanding at March 31, 2020, and does not mature until October 2022. Additionally, there are no operating covenants in its floorplan facility, the company’s leases are shorter term in nature, enhancing its flexibility and retail financing remains stable. The company owns approximately half of its locations, which are all debt free. The company ended March 31, 2020 with $506.9 million of inventory and with units down sequentially, as it continues to proactively work with its manufacturing partners to further align future orders as may be required.
As the COVID-19 pandemic is complex and evolving rapidly, the company said it will continue to monitor ongoing developments and respond accordingly. The company added that it continues to comply with orders of local and state governments in all jurisdictions in which it operates.