• Revenue: Declined nearly $60 million due to hurricanes and a challenging environment.
• Same-Store Sales: Decreased by 11% in Q1.
• Gross Margin: Over 36% for the quarter.
• Adjusted SG&A: Decreased to $149.4 million year-over-year.
• 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.
• Adjusted EBITDA: $26.1 million, nearly flat compared to last year.
• Cash and Cash Equivalents: $145 million, down from $210 million at the end of last year's first quarter.
• Debt to EBITDA: Net of cash stood at just over 1.6 times.
• Store Locations: Consolidated or sold three locations during the quarter.

• Warning! GuruFocus has detected 8 Warning Signs with HZO.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MarineMax Inc (NYSE:HZO) achieved a gross margin of over 36% in the quarter, driven by a strategic focus on higher-margin businesses.
• The company's diversification strategy, including Marinas, super yacht services, finance and insurance, and brokerage services, continues to provide durable margin streams.
• MarineMax Inc (NYSE:HZO) expanded its presence with the Cruisers Yachts brand across key regions in the Southern US, enhancing its product offerings.
• The IGY Marinas' team is expanding global recognition, with the new IGY Savannah Harbor Marina scheduled to open in March.
• 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

• MarineMax Inc (NYSE:HZO) experienced an 11% decrease in same-store sales in Q1, impacted by hurricanes and a challenging macroeconomic environment.
• Revenue was strained due to soft retail demand across the outdoor recreation space, particularly in Florida.
• The company faced a $5 million charge related to Hurricane Milton, with most expected to be covered by insurance.
• Inventory levels were higher than anticipated at quarter-end due to lower-than-expected revenue, leading to increased short-term borrowings.
• 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.

Q: How has the insurance market in Florida been affected, particularly for boats and marinas? A: Michael Mclamb noted that there hasn't been a significant increase in insurance premiums for boats in Florida yet, but they are mindful of potential future increases due to recent storms and fires. They are currently in a wait-and-see mode regarding insurance market changes.

Q: Given the strong gross margin in Q1, do you see upside to your original gross margin assumption for the year? A: Michael Mclamb explained that while Q1 margins were strong at over 36%, they expect margins to normalize in higher volume quarters like March and June. They maintain their guidance for gross margins in the low 30% range for the fiscal year.

Q: How did regional disparities affect retail volume, particularly outside of Florida? A: William Mcgill, CEO, mentioned that non-Florida revenue was almost flat, with the decline in revenue heavily weighted towards Florida due to the hurricanes. On a comparable store basis, business outside of Florida was flat year-over-year.

Q: What is driving the cautious optimism for fiscal 2025 despite challenges like higher rates and a choppy retail environment? A: Michael Mclamb highlighted that post-storm retail activity was strong, particularly in November, and early boat show activity has been encouraging. They expect improved retail activity with more clarity in the geopolitical environment and the start of the boat show season.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.