MARINEMAX INC [HZO] Filings

10-Q 1 hzo-10q_20220331.htm 10-Q hzo-10q_20220331.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022.

Commission File Number. 1-14173

MARINEMAX, INC.

(Exact Name of Registrant as Specified in Its Charter)

Florida	59-3496957
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

2600 McCormick Drive, Suite 200
Clearwater, Florida	33759
(Address of Principal Executive Offices)	(ZIP Code)

727-531-1700

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.001 per share	HZO	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of outstanding shares of the registrant’s Common Stock on April 28, 2022 was 21,531,668.

MARINEMAX, INC. AND SUBSIDIARIES

Table of Contents

Item No.		Page

PART I. FINANCIAL INFORMATION
1.	Financial Statements (Unaudited):
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended March 31, 2021 and 2022	3
	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended March 31, 2021 and 2022	4
	Condensed Consolidated Balance Sheets as of September 30, 2021 and March 31, 2022	5
	Condensed Consolidated Statements of Shareholders’ Equity for the Six Months Ended March 31, 2021 and 2022	6
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 31, 2021 and 2022	7
	Notes to Condensed Consolidated Financial Statements	8

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

3.	Quantitative and Qualitative Disclosures About Market Risk	25

4.	Controls and Procedures	26

PART II. OTHER INFORMATION		26
1.	Legal Proceedings	26
1A.	Risk Factors	27
2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
3.	Defaults Upon Senior Securities	27
4.	Mine Safety Disclosures	27
5.	Other Information	27
6.	Exhibits	28
SIGNATURES		29

EX – 31.1
EX – 31.2
EX – 32.1
EX – 32.2
EX – 101 INSTANCE DOCUMENT
EX – 101 SCHEMA DOCUMENT
EX – 101 CALCULATION LINKBASE DOCUMENT
EX – 101 DEFINITION LINKBASE DOCUMENT
EX – 101 LABEL LINKBASE DOCUMENT
EX – 101 PRESENTATION LINKBASE DOCUMENT

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

MARINEMAX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

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

(Unaudited)

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2021		2022		2021		2022
Revenue	$	523,095	$	610,106	$	934,618	$	1,082,797
Cost of sales		366,289		404,791		654,411		710,283
Gross profit		156,806		205,315		280,207		372,514

Selling, general, and administrative expenses		103,936		133,532		195,354		253,529
Income from operations		52,870		71,783		84,853		118,985

Interest expense		1,092		654		2,360		1,291
Income before income tax provision		51,778		71,129		82,493		117,694

Income tax provision		12,843		17,622		19,958		28,244
Net income	$	38,935	$	53,507	$	62,535	$	89,450

Basic net income per common share	$	1.76	$	2.45	$	2.83	$	4.09

Diluted net income per common share	$	1.69	$	2.37	$	2.73	$	3.96

Weighted average number of common shares used in computing net income per common share:

Basic		22,143,043		21,861,438		22,083,827		21,880,558
Diluted		22,986,061		22,530,102		22,864,950		22,597,105

See accompanying Notes to Condensed Consolidated Financial Statements.

MARINEMAX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Amounts in thousands)

(Unaudited)

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2021			2022			2021		2022
Net income	$	38,935		$	53,507		$	62,535	$	89,450

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		(1,032	)		(547	)		83		(1,036	)
Interest rate swap contract		388			442			193		535
Total other comprehensive (loss) income, net of tax		(644	)		(105	)		276		(501	)

Comprehensive income	$	38,291		$	53,402		$	62,811	$	88,949

See accompanying Notes to Condensed Consolidated Financial Statements.

MARINEMAX, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Amounts in thousands, except share data)

(Unaudited)

	September 30,			March 31,
	2021			2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	222,192		$	219,400
Accounts receivable, net		47,651			62,276
Inventories, net		230,984			329,731
Prepaid expenses and other current assets		16,692			17,596
Total current assets		517,519			629,003
Property and equipment, net of accumulated depreciation of $97,814 and $106,885		175,463			220,569
Operating lease right-of-use assets, net		104,901			100,818
Goodwill and other intangible assets, net		201,122			246,265
Other long-term assets		8,818			9,069
Total assets	$	1,007,823		$	1,205,724
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	25,739		$	37,856
Contract liabilities (customer deposits)		100,660			164,068
Accrued expenses		86,594			95,750
Short-term borrowings		23,943			58,858
Current maturities on long-term debt		3,587			3,587
Current operating lease liabilities		10,570			9,774
Total current liabilities		251,093			369,893
Long-term debt, net of current maturities		47,498			45,747
Noncurrent operating lease liabilities		96,956			93,885
Deferred tax liabilities, net		9,268			14,646
Other long-term liabilities		8,116			7,293
Total liabilities		412,931			531,464
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding as of September 30, 2021 and March 31, 2022		—			—
Common stock, $.001 par value, 40,000,000 shares authorized, 28,588,863 and 28,756,404 shares issued and 21,821,842 and 21,616,462 shares outstanding as of September 30, 2021 and March 31, 2022, respectively		29			29
Additional paid-in capital		288,901			295,589
Accumulated other comprehensive income		648			147
Retained earnings		432,678			522,128
Treasury stock, at cost, 6,767,021 and 7,139,942 shares held as of September 30, 2021 and March 31, 2022, respectively		(127,364	)		(143,633	)
Total shareholders’ equity		594,892			674,260
Total liabilities and shareholders’ equity	$	1,007,823		$	1,205,724

See accompanying Notes to Condensed Consolidated Financial Statements.

MARINEMAX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity

(Amounts in thousands, except share data)

(Unaudited)

					Additional			Accumulated Other								Total
	Common Stock				Paid-in			Comprehensive			Retained		Treasury			Shareholders’
	Shares		Amount		Capital			Income			Earnings		Stock			Equity
BALANCE, September 30, 2021		28,588,863	$	29	$	288,901		$	648		$	432,678	$	(127,364	)	$	594,892
Net income		—		—		—			—			35,943		—			35,943
Shares issued pursuant to employee stock purchase plan		22,399		—		924			—			—		—			924
Shares issued upon vesting of equity awards, net of minimum tax withholding		111,011		—		(1,429	)		—			—		—			(1,429	)
Shares issued upon exercise of stock options		21,000		—		155			—			—		—			155
Stock-based compensation		684		—		3,263			—			—		—			3,263
Other comprehensive loss		—		—		—			(396	)		—		—			(396	)
BALANCE, December 31, 2021		28,743,957	$	29	$	291,814		$	252		$	468,621	$	(127,364	)	$	633,352
Net income		—		—		—			—			53,507		—			53,507
Purchase of treasury stock		—		—		—			—			—		(16,269	)		(16,269	)
Shares issued upon vesting of equity awards, net of minimum tax withholding		10,188		—		(161	)		—			—		—			(161	)
Shares issued upon exercise of stock options		1,500		—		24			—			—		—			24
Stock-based compensation		759		—		3,912			—			—		—			3,912
Other comprehensive loss		—		—		—			(105	)		—		—			(105	)
BALANCE, March 31, 2022		28,756,404	$	29	$	295,589		$	147		$	522,128	$	(143,633	)	$	674,260

					Additional			Accumulated Other								Total
	Common Stock				Paid-in			Comprehensive			Retained		Treasury			Shareholders’
	Shares		Amount		Capital			Income			Earnings		Stock			Equity
BALANCE, September 30, 2020		28,130,312	$	28	$	280,436		$	829		$	277,699	$	(103,595	)	$	455,397
Net income		—		—		—			—			23,600		—			23,600
Shares issued pursuant to employee stock purchase plan		83,572		—		740			—			—		—			740
Shares issued upon vesting of equity awards, net of minimum tax withholding		121,303		—		(871	)		—			—		—			(871	)
Shares issued upon exercise of stock options		56,746		—		783			—			—		—			783
Stock-based compensation		1,777		—		2,013			—			—		—			2,013
Other comprehensive income		—		—		—			920			—		—			920
BALANCE, December 31, 2020		28,393,710	$	28	$	283,101		$	1,749		$	301,299	$	(103,595	)	$	482,582
Net income		—		—		—			—			38,935		—			38,935
Shares issued upon vesting of equity awards, net of minimum tax withholding		9,899		—		(154	)		—			—		—			(154	)
Shares issued upon exercise of stock options		15,333		—		186			—			—		—			186
Stock-based compensation		1,597		—		2,399			—			—		—			2,399
Other comprehensive loss		—		—		—			(644	)		—		—			(644	)
BALANCE, March 31, 2021		28,420,539	$	28	$	285,532		$	1,105		$	340,234	$	(103,595	)	$	523,304

See accompanying Notes to Condensed Consolidated Financial Statements

MARINEMAX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

(Unaudited)

	Six Months Ended March 31,
	2021		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	62,535	$	89,450
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,481		9,304
Deferred income tax provision		1,992

MARINEMAX INC [HZO] Filings
10-Q	[2022-05-03]
10-Q	[2022-02-01]
10-K	[2021-11-19]
10-Q	[2021-07-27]
10-Q	[2021-04-27]
10-Q	[2021-02-02]
10-K	[2020-12-02]
10-Q	[2020-07-28]
10-Q	[2020-04-29]
10-Q	[2020-01-30]
10-K	[2019-12-03]
10-Q	[2019-07-26]
10-Q	[2019-05-01]
10-Q	[2019-01-30]
10-K	[2018-11-29]
10-Q	[2018-07-31]
10-Q	[2018-05-01]
10-Q	[2018-01-31]
10-K	[2017-12-06]
10-Q	[2017-07-25]
10-Q	[2017-05-02]
10-Q	[2017-02-02]
10-K	[2016-12-06]
10-Q	[2016-08-03]
10-Q	[2016-05-02]
10-Q	[2016-02-04]
10-K	[2015-12-08]
10-Q	[2015-08-04]
10-Q	[2015-05-05]
10-Q	[2015-02-05]
10-K	[2014-12-11]
10-Q	[2014-08-05]
10-Q	[2014-05-05]
10-Q	[2014-02-06]
10-K	[2013-12-06]
10-Q	[2013-08-06]
10-Q	[2013-05-07]
10-Q	[2013-02-07]
10-K	[2012-12-07]
10-Q	[2012-08-03]
10-Q	[2012-05-04]
10-Q	[2012-02-07]