In This Article:
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Revenue: Declined nearly $60 million due to hurricanes and a challenging environment.
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Same-Store Sales: Decreased by 11% in Q1.
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Gross Margin: Over 36% for the quarter.
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Adjusted SG&A: Decreased to $149.4 million year-over-year.
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Net Income: GAAP net income of $18.1 million or $0.77 per diluted share; Adjusted net income of $4.1 million or $0.17 per diluted share.
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Adjusted EBITDA: $26.1 million, nearly flat compared to last year.
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Cash and Cash Equivalents: $145 million, down from $210 million at the end of last year's first quarter.
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Debt to EBITDA: Net of cash stood at just over 1.6 times.
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Store Locations: Consolidated or sold three locations during the quarter.
Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MarineMax Inc (NYSE:HZO) achieved a gross margin of over 36% in the quarter, driven by a strategic focus on higher-margin businesses.
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The company's diversification strategy, including Marinas, super yacht services, finance and insurance, and brokerage services, continues to provide durable margin streams.
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MarineMax Inc (NYSE:HZO) expanded its presence with the Cruisers Yachts brand across key regions in the Southern US, enhancing its product offerings.
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The IGY Marinas' team is expanding global recognition, with the new IGY Savannah Harbor Marina scheduled to open in March.
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MarineMax Inc (NYSE:HZO) maintains a strong balance sheet with significant financial flexibility, including access to approximately $200 million in available lines of credit.
Negative Points
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MarineMax Inc (NYSE:HZO) experienced an 11% decrease in same-store sales in Q1, impacted by hurricanes and a challenging macroeconomic environment.
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Revenue was strained due to soft retail demand across the outdoor recreation space, particularly in Florida.
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The company faced a $5 million charge related to Hurricane Milton, with most expected to be covered by insurance.
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Inventory levels were higher than anticipated at quarter-end due to lower-than-expected revenue, leading to increased short-term borrowings.
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MarineMax Inc (NYSE:HZO) is experiencing inflationary pressures in several key areas, impacting operational costs.
Q & A Highlights
Q: Can you provide an update on SG&A expectations for the year, considering inflationary pressures? A: Michael Mclamb, CFO, stated that they aim to bring SG&A as a percentage of revenue back to 2023 levels, targeting a 100-basis point reduction. However, due to inflationary cost increases, they might achieve slightly less than that, but the focus remains on improving operational efficiencies.