Market Overview

MarineMax Reports Third Quarter Fiscal 2018 Results

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Quarterly Revenue Grew Approximately 10% to $361.3 Million

8% Quarterly Same-Store Sales Growth

Year-to-Date Diluted EPS Grows Over 55%

Reaffirms Annual Guidance Range for Fiscal 2018

MarineMax, Inc. (NYSE:HZO), the nation's largest recreational boat and
yacht retailer, today announced results for its third quarter ended June
30, 2018.

Revenue increased approximately 10% to $361.3 million for the quarter
ended June 30, 2018, compared with $329.8 million for the June quarter
last year, as same-store sales grew 8%. Included in the quarter ended
June 30, 2018, was approximately $1.2 million before taxes, or $0.04 per
diluted share, of non-recurring unusual costs. Net income for the
quarter ended June 30, 2018, increased about 22% year-over-year to $17.4
million, while earnings per diluted share grew approximately 32% to
$0.75, compared to $0.57 for the comparable quarter last year. Excluding
the non-recurring unusual costs, earnings per diluted share grew 39% to
$0.79 in the quarter ended June 30, 2018.

Revenue grew over 8% to $868.8 million for the nine months ended June
30, 2018, compared with $801.7 million for the same period last year.
Same-store sales increased approximately 6% on top of similar growth for
the comparable period last year. Net income for the nine months ended
June 30, 2018, rose over 41% to $27.8 million, or $1.21 per diluted
share, compared with $19.6 million, or $0.78 per diluted share for the
comparable period last year. Excluding the non-recurring unusual costs,
earnings per diluted share increased over 60% to $1.25 in the nine
months ended June 30, 2018.

William H. McGill, Jr., Chairman and Chief Executive Officer stated, "We
drove strong growth in the quarter, with solid contributions across
almost all our segments and brand offerings. Despite some larger boat
choppiness as suggested by industry data, we believe we continue to take
market share through our proven strategies and leading brands. While our
top line sales were healthy, margins did come under some pressure,
largely due to the anticipated Brunswick sale of Sea Ray. Furthermore,
in addition to the non-recurring unusual costs, we incurred significant
healthcare cost increases in the quarter. The great news is that
generally, industry fundamentals are sound, and with Brunswick retaining
the Sea Ray brand, the margin pressure should subside as we move ahead."

McGill continued, "As expected, our inventory and outstanding borrowings
declined year-over-year while same-store sales continue to grow,
increasing inventory turns and cash flow. The mix of our inventory is
well positioned in terms of model line-up and model age. Our balance
sheet remains very strong, which supports our ability to take advantage
of opportunities as they arise. As we head into the rest of the summer
season, our team is focused, our backlog is up, and we plan to build
upon the already strong year to date earnings and cash flow as we close
out fiscal 2018."

2018 Guidance

Based on current business conditions, retail trends and other factors,
the Company is reaffirming its annual guidance range expectations for
fully taxed earnings per diluted share to be in the range of $1.44 to
$1.50 for fiscal 2018. These expectations do not take into account, or
give effect for future material acquisitions that may be completed by
the Company during the fiscal year or other unforeseen events.

About MarineMax

Headquartered in Clearwater, Florida, MarineMax is the nation's largest
recreational boat and yacht retailer. Focused on premium brands, such as
Sea Ray, Boston Whaler, Meridian, Hatteras, Azimut Yachts, Ocean
Alexander, Galeon, Grady-White, Harris, Bennington, Crest, Mastercraft,
Scout, Sailfish, Sea Pro, Sportsman, Scarab Jet Boats, Tige', Aquila,
NauticStar, Nautique and Yamaha Jet Boats. MarineMax sells new and used
recreational boats and related marine products and services as well as
provides yacht brokerage and charter services. MarineMax currently has
63 retail locations in Alabama, Connecticut, Florida, Georgia, Maryland,
Massachusetts, Minnesota, Missouri, New Jersey, New York, North
Carolina, Ohio, Oklahoma, Rhode Island, South Carolina and Texas and
operates MarineMax Vacations in Tortola, British Virgin Islands.
MarineMax is a New York Stock Exchange-listed company. For more
information, please visit www.marinemax.com.

Forward Looking Statement

Certain statements in this press release are forward-looking as
defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include the Company's anticipated financial
results for the third quarter ended June 30, 2018; the Company's belief
that margin pressure should subside; the Company's plan to build upon
the already strong year to date earnings and cash flow growth; and the
Company's fiscal 2018 guidance. These statements are based on current
expectations, forecasts, risks, uncertainties and assumptions that may
cause actual results to differ materially from expectations as of the
date of this release. These risks, assumptions and uncertainties include
the Company's abilities to reduce inventory, manage expenses and
accomplish its goals and strategies, the quality of the new product
offerings from the Company's manufacturing partners, general economic
conditions, as well as those within the Company's industry, the level of
consumer spending, the Company's ability to integrate acquisitions into
existing operations, the continued recovery of the industry, and
numerous other factors identified in the Company's Form 10-K for the
fiscal year ended September 30, 2017 and other filings with the
Securities and Exchange Commission. The Company disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)

(Unaudited)

 
 

Three Months Ended

 

Nine Months Ended

June 30,

June 30,

2018

 

2017

2018

 

2017

 
Revenue $ 361,254 $ 329,809 $ 868,780 $ 801,702
Cost of sales   270,567     245,017     649,551     602,713  
Gross profit 90,687 84,792 219,229 198,989
 
Selling, general, and administrative expenses   64,089     59,557     172,994     161,433  
Income from operations 26,598 25,235 46,235 37,556
 
Interest expense   2,499     1,897     7,881     5,511  
Income before income tax provision 24,099 23,338 38,354 32,045
 
Income tax provision   6,723     9,094     10,582     12,409  
Net income $ 17,376   $ 14,244   $ 27,772   $ 19,636  
 
Basic net income per common share $ 0.78   $ 0.59   $ 1.25   $ 0.81  
 
Diluted net income per common share $ 0.75   $ 0.57   $ 1.21   $ 0.78  
 
Weighted average number of common shares used in computing net
income per common share:
 
Basic   22,399,079     24,336,777     22,185,736     24,293,512  
Diluted   23,182,546     25,095,398     22,944,581     25,045,046  
 

MarineMax, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 
 

June 30,

 

June 30,

2018

2017

ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 62,108 $ 58,930
Accounts receivable, net 42,683 41,696
Inventories, net 379,425 385,277
Prepaid expenses and other current assets   6,001     5,872  

Total current assets

490,217 491,775
 
Property and equipment, net 130,684 127,750
Goodwill and other long-term assets, net 31,916 29,978
Deferred tax assets, net   3,095     11,753  
Total assets $ 655,912   $ 661,256  
 

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable $ 20,773 $ 25,634
Customer deposits 22,865 22,451
Accrued expenses 35,391 33,547
Short-term borrowings   232,764     241,642  
Total current liabilities 311,793 323,274
 
Long-term liabilities   2,497     3,250  
Total liabilities 314,290 326,524
 
STOCKHOLDERS' EQUITY:
Preferred stock
Common stock 27 26
Additional paid-in capital 262,320 248,600
Retained earnings 154,531 122,848
Treasury stock   (75,256 )   (36,742 )
Total stockholders' equity   341,622     334,732  
Total liabilities and stockholders' equity $ 655,912   $ 661,256  

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