UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of Earliest Event Reported): | October 31, 2017 |
MarineMax, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
| Florida | 1-14173 | 59-3496957 |
|
_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
| of incorporation) | File Number) | Identification No.) |
| 2600 McCormick Drive, Suite 200, Clearwater, Florida | 33759 | |
|
_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
| Registrant’s telephone number, including area code: | 727-531-1700 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition.
On October 31, 2017, MarineMax, Inc. issued a press release announcing its results of operations for its fourth fiscal quarter and fiscal year ended September 30, 2017. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The information in this Report of Form 8-K (including the exhibit) is furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing.
Item 9.01 Financial Statements and Exhibits.
Press release of MarineMax, Inc. dated October 31, 2017, reporting the financial results for the fourth fiscal quarter and fiscal year ended September 30, 2017.
Exhibit Index
| Exhibit No. | Description | |
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99.1
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Press release of MarineMax, Inc. dated October 31, 2017, reporting the financial results for the fourth fiscal quarter and fiscal year ended September 30, 2017. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MarineMax, Inc. | ||||
| October 31, 2017 | By: |
/s/ Michael H. McLamb
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| Name: Michael H. McLamb | ||||
| Title: Executive Vice President, Chief Financial Officer and Secretary | ||||
MARINEMAX REPORTS FOURTH QUARTER AND FISCAL 2017 RESULTS
~Fourth Quarter Revenue Grew Over 10% to $251 Million~
~GAAP Fourth Quarter EPS of $0.17; Adjusted Fourth Quarter EPS of $0.22~
~Fiscal 2017 Revenue Grows 12% — Approaching $1.1 Billion~
~GAAP Fiscal 2017 EPS of $0.95; Adjusted Fiscal 2017 EPS of $1.00~
~Company Provides Annual Guidance for Fiscal 2018~
CLEARWATER, FL, October 31, 2017 – MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat and yacht retailer, today announced results for its fourth quarter and fiscal year ended September 30, 2017.
For the quarter ended September 30, 2017, revenue grew more than 10% to $250.6 million from $227.4 million for the comparable quarter last year. Same-store sales for the quarter increased 5%, on top of 12% growth for the comparable period last year. Net income for the quarter ended September 30, 2017, was $3.9 million, or $0.17 per diluted share, compared to $5.6 million, or $0.22 per diluted share in the comparable period last year. Included in the quarter ended September 30, 2017, is $2.9 million of unusual expenses associated with Hurricane Irma. Excluding the Irma related expenses, pretax earnings rose 38% to $8.6 million for the quarter ended September 30, 2017, from $6.3 million in the comparable period last year. Additionally, included in the quarter ended September 30, 2017, are unusual tax related items that reduced the Company’s tax provision by $401,000 net, or $0.02 per diluted share. Included in the quarter ended September 30, 2016, is a deferred tax asset valuation allowance reversal of $1.1 million net, or $0.04 per diluted share.
Excluding the unusual costs associated with Hurricane Irma and the tax related items in both periods, and applying a pro forma tax provision to both quarters, the Company’s comparable non-GAAP diluted earnings per share rose more than 22% to $0.22 per diluted share in the quarter ended September 30, 2017, from $0.18 per diluted share in the comparable period last year.
For the fiscal year ended September 30, 2017, the Company produced revenue growth of 12% to approximately $1.1 billion compared to $942.1 million in fiscal 2016. Same-store sales for the year increased over 5% on top of 22% growth for the prior two consecutive fiscal years. Net income for the fiscal year ended September 30, 2017, was $23.5 million, or $0.95 per diluted share, compared to $22.6 million, or $0.91 per diluted share in the prior year. Included in fiscal 2017, are $2.9 million of unusual expenses associated with Hurricane Irma. Excluding the Irma related expenses, pretax earnings rose 17% to $40.7 million for the year ended September 30, 2017, from $34.8 million in the prior year. Additionally, included in fiscal 2017, are unusual tax-related items that reduced the Company’s tax provision by $522,000 net, or $0.02 per diluted share. Included in fiscal 2016 is a deferred tax asset valuation allowance reversal of $1.1 million net, or $0.04 per diluted share.
Excluding the unusual costs associated with Hurricane Irma and the tax related items in both periods, and applying a pro forma tax provision to both periods, the Company’s comparable non-GAAP diluted earnings per share rose 15% to $1.00 per diluted share in the fiscal year ended September 30, 2017, from $0.87 per diluted share last year.
William H. McGill, Jr., Chairman and Chief Executive Officer, stated, “The MarineMax Team delivered a strong close to the fiscal year as we did our best to overcome the challenges brought on by Hurricanes Irma and Harvey. Our results in the fourth quarter, considering the impact to the State of Florida, our largest market, is a testament to our customers’ desire for the boating lifestyle, our team’s passion for MarineMax and the strategies that have led to our industry leading results. In the fourth quarter and fiscal year, we were able to grow sales and expand gross margins, driven by improving product margins and meaningful contributions from our higher margin businesses.”
~ more ~
Mr. McGill continued, “While current trends in the industry remain positive, choppiness has continued in the large boat segment. We are working closely with our manufacturing partners to ensure inventory is aligned with retail trends. Fortunately, each of our manufacturers has done a good job launching new models in the last few years, leaving our inventory about as fresh as it has ever been. We have also added initiatives to better align expenses with the current environment. Having said this, we remain enthusiastic about the long-term strength of the industry and the business given the ongoing activity with our customers. As we look ahead, we remain committed to improving our earnings as the MarineMax team continues to execute on our customer centric approach in order to build upon our industry leading market share gains and efforts to build additional shareholder value.”
During the quarter, the Company repurchased approximately 2.4 million shares of its common stock. As of September 30, 2017, the Company had approximately 387,000 shares remaining under its August 2, 2017 share repurchase plan.
2018 Guidance
Based on current business conditions, retail trends and other factors, the Company currently expects fully taxed earnings per diluted share to be in the range of $1.10 to $1.20 for fiscal 2018. This compares to a non-GAAP adjusted, but fully taxed, diluted earnings per share of $1.00 in fiscal 2017 and $0.87 in fiscal 2016. The adjustments to fiscal 2017 are the removal of Hurricane Irma expenses and tax related items. The adjustments to fiscal 2016 are the removal of the deferred tax asset valuation allowance reversal noted above and a pro forma income tax provision being provided. These expectations do not take into account, or give effect for, 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, Scout, Sailfish, Sea Pro, Sportsman, Scarab Jet Boats, Yamaha Jet Boats, Aquila, and Nautique, 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 60 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 fourth quarter and full year ended September 30, 2017; the current trends in the industry, including the choppiness in the large boat segment; the long-term strength of the industry and the business given the ongoing activity with the Company’s customers; the execution on the Company’s customer centric approach; and the Company’s efforts to build upon its industry leading market share gains and to build additional shareholder value. 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 our 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, 2016 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.
| CONTACT: | Michael H. McLamb Chief Financial Officer Abbey Heimensen Public Relations MarineMax, Inc. 727-531-1700 |
Brad Cohen ICR, LLC 203-682-8211 Brad.Cohen@icrinc.com |
~ more ~
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue |
$ | 250,618 | $ | 227,355 | $ | 1,052,320 | $ | 942,050 | ||||||||
Cost of sales |
184,292 | 170,870 | 787,005 | 716,022 | ||||||||||||
Gross profit |
66,326 | 56,485 | 265,315 | 226,028 | ||||||||||||
Selling, general, and
administrative expenses |
58,593 | 49,041 | 220,026 | 185,776 | ||||||||||||
Income from operations |
7,733 | 7,444 | 45,289 | 40,252 | ||||||||||||
Interest expense |
1,970 | 1,180 | 7,481 | 5,462 | ||||||||||||
Income before income tax provision |
5,763 | 6,264 | 37,808 | 34,790 | ||||||||||||
Income tax provision |
1,852 | 678 | 14,261 | 12,208 | ||||||||||||
Net income |
$ | 3,911 | $ | 5,586 | $ | 23,547 | $ | 22,582 | ||||||||
Basic net income per common share |
$ | 0.17 | $ | 0.23 | $ | 0.98 | $ | 0.93 | ||||||||
Diluted net income per common share |
$ | 0.17 | $ | 0.22 | $ | 0.95 | $ | 0.91 | ||||||||
Weighted average number of common
shares used in computing net
income per common share: |
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Basic |
22,997,700 | 24,288,130 | 23,966,611 | 24,203,947 | ||||||||||||
Diluted |
23,591,854 | 25,010,193 | 24,678,800 | 24,820,847 | ||||||||||||
| Supplemental Information – | ||||||||||||||||
| Reconciliation of GAAP to Non-GAAP | ||||||||||||||||
| Measures | ||||||||||||||||
Net income |
$ | 3,911 | $ | 5,586 | $ | 23,547 | $ | 22,582 | ||||||||
Less valuation allowance reversal
on deferred tax assets, net |
— | (1,056 | ) | — | (1,056 | ) | ||||||||||
Add unusual items, net |
1,743 | — | 1,743 | — | ||||||||||||
Pro forma income tax provision
adjustment |
(401 | ) | — | (522 | ) | — | ||||||||||
Adjusted net income |
5,253 | 4,530 | $ | 24,768 | $ | 21,526 | ||||||||||
Diluted net income per common share |
$ | 0.17 | $ | 0.22 | $ | 0.95 | $ | 0.91 | ||||||||
Less valuation allowance reversal
on deferred tax assets, net |
— | (0.04 | ) | — | (0.04 | ) | ||||||||||
Add unusual items, net |
0.07 | — | 0.07 | — | ||||||||||||
Pro forma income tax provision |
(0.02 | ) | — | (0.02 | ) | — | ||||||||||
Adjusted diluted net income per
common share |
$ | 0.22 | $ | 0.18 | $ | 1.00 | $ | 0.87 | ||||||||
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
| September 30, | September 30, | |||||||
| 2017 | 2016 | |||||||
ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
$ | 41,952 | $ | 38,585 | ||||
Accounts receivable, net |
24,661 | 24,583 | ||||||
Inventories, net |
401,301 | 321,978 | ||||||
Prepaid expenses and other current assets |
5,842 | 5,965 | ||||||
Total current assets |
473,756 | 391,111 | ||||||
Property and equipment, net |
127,160 | 121,353 | ||||||
Other long-term assets, net |
30,305 | 13,149 | ||||||
Deferred tax assets, net |
8,769 | 21,075 | ||||||
Total assets |
$ | 639,990 | $ | 546,688 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
$ | 26,432 | $ | 9,597 | ||||
Customer deposits |
21,032 | 30,129 | ||||||
Accrued expenses |
33,046 | 25,603 | ||||||
Short-term borrowings |
254,177 | 166,550 | ||||||
Total current liabilities |
334,687 | 231,879 | ||||||
Long-term liabilities |
3,105 | 2,336 | ||||||
Total liabilities |
337,792 | 234,215 | ||||||
STOCKHOLDERS’ EQUITY: |
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Preferred stock |
— | — | ||||||
Common stock |
26 | 26 | ||||||
Additional paid-in capital |
249,974 | 241,058 | ||||||
Retained earnings |
126,759 | 103,212 | ||||||
Treasury stock |
(74,561 | ) | (31,823 | ) | ||||
Total stockholders’ equity |
302,198 | 312,473 | ||||||
Total liabilities and stockholders’ equity |
$ | 639,990 | $ | 546,688 | ||||
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