MarineMax, as expected, reported earnings came in at the low end of guidance in the fourth quarter ended September 30 due to damage caused by Hurricane Helene on certain locations on the west coast of Florida. Sales were down 5 percent in the quarter.

Fiscal 2024 Fourth Quarter Summary

  • September quarter revenue of $563.1 million
  • Same-store sales decrease of 5 percent, reflecting impact of Hurricane Helene
  • Gross profit margin of 34.3 percent
  • Net income of $4.0 million, or diluted EPS of $0.17; Adjusted diluted EPS of $0.24
  • Adjusted EBITDA of $33.5 million

Fiscal 2024 Full Year Summary

  • Revenue of $2.43 billion
  • Same-store sales increase of 1 percent
  • Gross profit margin of 33.0 percent
  • Net income of $38.1 million, or diluted EPS of $1.65; Adjusted diluted EPS1 of $2.13
  • Adjusted EBITDA of $160.2 million

Results for the year compared with guidance calling for adjusted EPS for the year in the range of $$2.20 to $3.20 and adjusted EBITDA between $155 million to $190 million. On October 3, MarineMax said that due to the impact of Hurricane Helene, it expected adjusted EBITDA guidance to come in at or near the low end of its guidance range, while revenue was expected to be modestly lower than anticipated due to the impact from the storm.

President and CEO Commentary
“Resilient is the word that captures the spirit of our team members, who have shown extraordinary dedication and perseverance in the face of the devastating storms that hit Florida and the southeast over the past month,” said Brett McGill, chief executive officer and president of MarineMax. “Hurricanes Helene and Milton have caused significant damage across the region. Our team members have been at the forefront, ensuring that our operations continue and that we provide essential support to our customers. We are incredibly proud of their efforts and dedication during this challenging time. We are committed to supporting the affected areas with assistance throughout this journey. It is encouraging to see the progress that has already occurred in such a short period of time.

“As previously disclosed, the effects of Hurricane Helene significantly impacted our fourth-quarter results, causing damage and disruption to a number of our locations along the west coast of Florida. Hurricane Milton has exacerbated the damage,” McGill said. “Despite their personal challenges in the wake of these storms, our team has been assisting customers while simultaneously reopening our stores. Our Sarasota location, which sustained significant damage from Hurricane Milton, also is open and operating except for the marina, which requires additional repairs.

“From an operational perspective, we performed well in light of what has proven to be one of the more challenging years for our industry,” McGill said. “With sizable month-over-month industrywide declines in unit sales, our ability to generate annual same-store sales growth in fiscal 2024 is a testament to the success of our long-term strategy.

“Our fourth-quarter performance, in particular, highlights the progress we have made to strengthen our financial profile by building a meaningful presence in higher-margin businesses, including marinas, storage facilities, and superyacht services,” McGill said. “Our ability to maintain a gross margin above 34 percent despite boat margins being at or below pre-pandemic levels, along with a 5 percent decrease in fourth-quarter sales, speaks to the success of that effort.

“As part of our long-term improvement plan, we implemented further strategic cost-cutting actions during the fourth quarter, including consolidating certain retail locations,” McGill said. “Expense reduction remains a focus in fiscal 2025, with the goal of driving improved operating leverage.”

Fiscal 2024 Fourth Quarter Results
Revenue in the fiscal 2024 fourth quarter decreased 5 percent to $563.1 million from $594.6 million in the comparable period of fiscal 2023, primarily reflecting lower boat sales due to the closure of boat and yacht insurance markets as Hurricane Helene approached Florida. As a result, revenue on a comparable same-store basis decreased 5 percent from the prior-year period, versus 8 percent last year.

Gross profit decreased 5 percent to $193.2 million in the fourth quarter of fiscal 2024 from $203.7 million in the prior-year period. Despite lower boat margins and revenue in the fourth quarter of fiscal 2024, gross profit margin remained consistent with the prior-year period at 34.3 percent, driven by the increased contribution of higher-margin businesses including finance and insurance, marinas and the company’s Superyacht Division.

Selling, general, and administrative (SG&A) expenses totaled $166.4 million, or 29.5 percent of revenue, in the fourth quarter of fiscal 2024, compared with $169.4 million, or 28.5 percent of revenue, for the comparable period of fiscal 2023. Excluding transaction costs, changes in contingent consideration, weather events, and other items, Adjusted SG&A in the fourth quarter of fiscal 2024 decreased by approximately $5.1 million, or 3 percent, from the same period in fiscal 2023. Adjusted SG&A2 in the 2024 period was $163.5 million, or 29.0 percent of revenue.

Interest expense was $17.9 million, or 3.2 percent of revenue in the fourth quarter, compared with $15.8 million, or 2.7 percent of revenue in the prior-year period, reflecting higher borrowings due primarily to increased inventory compared with the fourth quarter of fiscal 2023.

Income tax provision increased year-over-year primarily due to non-cash tax expenses related to equity compensation that vested in the fourth quarter as well as increased taxes on foreign earnings.

Net income in the fiscal 2024 fourth quarter was $4.0 million, or $0.17 per diluted share, compared with net income of $15.1 million, or $0.67 per diluted share, in the same period last year. Adjusted net income in the fourth quarter of fiscal 2024 was $5.5 million, or $0.24 per diluted share, compared with $15.8 million, or $0.69 per diluted share, in the prior-year period. Adjusted EBITDA for the quarter ended September 30, 2024, was $33.5 million, compared with $42.6 million for the comparable period of fiscal 2023.

Fiscal 2025 Guidance
Based on a preliminary assessment of damage from Hurricanes Helene and Milton, current business conditions, retail trends and other factors, the company expects fiscal year 2025 Adjusted net income in the range of $1.80 to $2.80 per diluted share and fiscal year 2025 adjusted EBITDA in the range of $150 million to $180 million ($155 million to $190 million under previous guidance). These expectations do not consider or give effect for, among other things, material acquisitions that may be completed by the company during fiscal 2025 or other unforeseen events, including changes in global economic conditions.

Image courtesy Marine Max