• Fiscal 2024 Revenue: Increased approximately 2% to $2.4 billion.
• Comparable Store Sales: Increased by 1%.
• Fourth Quarter Revenue: Approximately $563 million, reflecting a 5% decline in same-store sales.
• Gross Margin: Maintained at 34% in the fourth quarter.
• Adjusted SG&A Expenses: Declined by more than $5 million in the fourth quarter.
• Adjusted Net Income (Q4): $5.5 million or $0.24 per diluted share.
• Adjusted Net Income (Full Year): $49.1 million or $2.13 per diluted share.
• Adjusted EBITDA (Q4): $33.5 million.
• Adjusted EBITDA (Full Year): $160.2 million.
• Cash and Cash Equivalents: Over $224 million at year end.
• Debt-to-EBITDA Ratio: About one times, net of cash.
• Inventory Levels: Comparable unit inventories are roughly 30% below 2019 levels.
• Guidance for Fiscal 2025: Adjusted EBITDA expected in the range of $150 million to $180 million; adjusted net income expected in the range of $1.80 to $2.80 per diluted share.

• Warning! GuruFocus has detected 9 Warning Signs with HZO.

Release Date: October 31, 2024

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

Positive Points

• MarineMax Inc (NYSE:HZO) achieved a 2% increase in fiscal 2024 revenue, reaching $2.4 billion, despite industry challenges.
• The company maintained a strong gross margin of 34% in the fourth quarter, highlighting the performance of higher-margin businesses.
• MarineMax Inc (NYSE:HZO) successfully implemented cost reduction initiatives, reducing SG&A expenses by over $5 million in the fourth quarter.
• The company continues to expand its portfolio with strategic acquisitions, such as the rights to the Aviara brand and the appointment of a new CEO for IGY.
• MarineMax Inc (NYSE:HZO) has a strong financial position with over $224 million in cash and cash equivalents and a debt-to-EBITDA ratio of about one times.

Negative Points

• Hurricanes Helene and Milton significantly impacted MarineMax Inc (NYSE:HZO)'s operations, particularly in Florida, leading to a 5% decline in same-store sales in the fourth quarter.
• The closure of boat and yacht insurance markets due to the hurricanes affected revenue, which was down to approximately $563 million in the fourth quarter.
• The company faces elevated inventory levels, which could pressure margins as they work to align with market trends.
• MarineMax Inc (NYSE:HZO) anticipates continued pressure on boat margins due to industry-wide inventory challenges and promotional activities.
• The impact of hurricanes on the West Coast of Florida and the Southeast is expected to affect business in these important markets, with potential negative comps in the December quarter.

Q & A Highlights

Q: Can you quantify the impact of Hurricane Helene on the fourth quarter from a same-store sales and bottom-line perspective, and how do you expect the hurricanes to affect fiscal 2025? A: Mike McLamb, CFO, explained that the expected impact on same-store sales was about $30 million in the fourth quarter. The full-year impact is hard to predict, but the guidance range considers some recovery of sales. The West Coast of Florida, a significant market, was heavily impacted, representing about 25% of their business. The December quarter is expected to be challenging due to these disruptions.

Q: How have borrowing rates for customers progressed over the year, especially recently? A: Retail financing rates, generally priced off the 10-year, are down year-over-year by about 100 basis points. Despite recent increases in the 10-year rate, banks have maintained or slightly lowered their rates for boat shows, indicating some benefit from lower rates.

Q: What are you seeing in terms of retail inventory levels, and how do you expect this to trend? A: Brett McGill, CEO, noted that inventories remain elevated due to a softer summer selling season. Manufacturers are adjusting to help dealers align inventory levels. They anticipate inventories will normalize as they approach the spring selling season.

Q: How do you expect promotional activity to affect margins, and what is your strategy in response? A: Brett McGill expects high promotional activity due to inventory levels, which could pressure margins. MarineMax's diverse business model allows flexibility, and they aim to distance themselves from heavy discounting by focusing on higher-end products and new models.

Q: What is your outlook for the service side of the business, and how does it fit into your long-term strategy? A: Brett McGill emphasized that their strategic diversification into related businesses positions them well even if boat sales remain flat. The service side, including marina operations and superyacht services, offers growth opportunities and resilience against industry downturns.

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