MarineMax Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

hzo-10q_20200630.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 JUNE 30, 2020.

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 July 24, 2020 was 21,628,144.

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 Nine Months Ended June 30, 2019 and 2020	3
	Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended June 30, 2019 and 2020	4
	Condensed Consolidated Balance Sheets as of September 30, 2019 and June 30, 2020	5
	Condensed Consolidated Statements of Stockholders’ Equity for the Nine Months Ended June 30, 2019 and 2020	6
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended June 30, 2019 and 2020	8
	Notes to Condensed Consolidated Financial Statements	9

2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19

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				Nine Months Ended
	June 30,				June 30,
	2019		2020		2019		2020
Revenue	$	383,494	$	498,304	$	929,017	$	1,110,951
Cost of sales		285,784		374,851		693,627		828,704
Gross profit		97,710		123,453		235,390		282,247

Selling, general, and administrative expenses		68,968		74,838		187,436		208,284
Income from operations		28,742		48,615		47,954		73,963

Interest expense		2,936		2,133		8,485		8,490
Income before income tax provision		25,806		46,482		39,469		65,473

Income tax provision		6,719		11,555		10,169		16,422
Net income	$	19,087	$	34,927	$	29,300	$	49,051

Basic net income per common share	$	0.86	$	1.62	$	1.30	$	2.28

Diluted net income per common share	$	0.84	$	1.58	$	1.26	$	2.23

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

Basic		22,243,895		21,499,408		22,619,802		21,491,117
Diluted		22,821,202		22,045,900		23,212,983		21,965,355

See accompanying notes to condensed consolidated financial statements.

MARINEMAX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

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

(Unaudited)

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2019		2020		2019		2020
Net income	$	19,087	$	34,927	$	29,300	$	49,051

Other comprehensive gain, net of tax:
Foreign currency translation adjustments		-		383		-		539
Total other comprehensive gain, net of tax		-		383		-		539

Comprehensive income	$	19,087	$	35,310	$	29,300	$	49,590

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,			June 30,
	2019			2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	38,511		$	86,919
Accounts receivable, net		42,398			69,478
Inventories, net		477,468			314,096
Prepaid expenses and other current assets		10,206			11,133
Total current assets		568,583			481,626
Property and equipment, net of accumulated depreciation of $77,798 and $86,362		144,298			141,897
Operating lease right-of-use assets, net		-			39,279
Goodwill and other intangible assets, net		64,077			65,404
Other long-term assets		7,125			7,754
Total assets	$	784,083		$	735,960
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	33,674		$	39,441
Customer deposits		24,305			30,106
Accrued expenses		42,849			47,775
Current operating lease liabilities		-			7,262
Short-term borrowings		312,065			147,049
Total current liabilities		412,893			271,633
Noncurrent operating lease liabilities		-			34,248
Deferred tax liabilities, net		1,142			4,221
Other long-term liabilities		1,229			833
Total liabilities		415,264			310,935
SHAREHOLDERS' EQUITY:
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding as of September 30, 2019 and June 30, 2020		—			—
Common stock, $.001 par value, 40,000,000 shares authorized, 27,508,473 and 27,798,415 shares issued and 21,321,688 and 21,531,394 shares outstanding as of September 30, 2019 and June 30, 2020, respectively		28			28
Additional paid-in capital		269,969			276,606
Accumulated other comprehensive loss		(669	)		(130	)
Retained earnings		202,455			252,116
Treasury stock, at cost, 6,186,785 and 6,267,021 shares held as of September 30, 2019 and June 30, 2020, respectively		(102,964	)		(103,595	)
Total shareholders’ equity		368,819			425,025
Total liabilities and shareholders’ equity	$	784,083		$	735,960

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			Earnings			Earnings		Stock			Equity
BALANCE, September 30, 2019		27,508,473	$	28	$	269,969		$	(669	)	$	202,455	$	(102,964	)	$	368,819
Net income		—		—		—			—			9,059		—			9,059
Shares issued pursuant to employee stock purchase plan		38,352		—		505			—			—		—			505
Shares issued upon vesting of equity awards, net of minimum tax withholding		123,993		—		(476	)		—			—		—			(476	)
Shares issued upon exercise of stock options		13,000		—		111			—			—		—			111
Stock-based compensation		2,946		—		1,513			—			—		—			1,513
Foreign currency translation adjustments, net of tax		—		—		—			606			—		—			606
Cumulative effect of change in accounting principle - leases, net after tax		—		—		—			—			610		—			610
BALANCE, December 31, 2019		27,686,764	$	28	$	271,622		$	(63	)	$	212,124	$	(102,964	)	$	380,747
Net income		—		—		—			—			5,065		—			5,065
Purchase of treasury stock		—		—		—			—			—		(472	)		(472	)
Shares issued upon exercise of stock options		28,167		—		414			—			—		—			414
Stock-based compensation		2,732		—		1,773			—			—		—			1,773
Foreign currency translation adjustments, net of tax		—		—		—			(450	)		—		—			(450	)
BALANCE, March 31, 2020		27,717,663	$	28	$	273,809		$	(513	)	$	217,189	$	(103,436	)	$	387,077
Net income		—		—		—			—			34,927		—			34,927
Purchase of treasury stock		—		—		—			—			—		(159	)		(159	)
Shares issued pursuant to employee stock purchase plan		56,389		—		499			—			—		—			499
Shares issued upon vesting of equity awards, net of minimum tax withholding		9,985				(29	)										(29	)
Shares issued upon exercise of stock options		10,000		—		89			—			—		—			89
Stock-based compensation		4,378		—		2,238			—			—		—			2,238
Foreign currency translation adjustments, net of tax		—		—		—			383			—		—			383
BALANCE, June 30, 2020		27,798,415	$	28	$	276,606		$	(130	)	$	252,116	$	(103,595	)	$	425,025

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		Earnings		Earnings		Stock			Equity
BALANCE, September 30, 2018		27,141,267	$	27	$	262,250	$	-	$	166,071	$	(75,256	)	$	353,092
Net income		—		—		—		—		4,910		—			4,910
Purchase of treasury stock		—		—		—		—		—		(229	)		(229	)
Shares issued pursuant to employee stock purchase plan		30,650		—		507

Price	15.26	EPS	2
Shares	23	P/E	10
MCap	349	P/FCF	-28
Net Debt	-39	EBIT	61
TEV	311	TEV/EBIT	5
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-07-28
10-Q	2020-03-31	Filed 2020-04-29
10-Q	2019-12-31	Filed 2020-01-30
10-K	2019-09-30	Filed 2019-12-03
10-Q	2019-06-30	Filed 2019-07-26
10-Q	2019-03-31	Filed 2019-05-01
10-Q	2018-12-31	Filed 2019-01-30
10-K	2018-09-30	Filed 2018-11-29
10-Q	2018-06-30	Filed 2018-07-31
10-Q	2018-03-31	Filed 2018-05-01
10-Q	2017-12-31	Filed 2018-01-31
10-K	2017-09-30	Filed 2017-12-06
10-Q	2017-06-30	Filed 2017-07-25
10-Q	2017-03-31	Filed 2017-05-02
10-Q	2016-12-31	Filed 2017-02-02
10-K	2016-09-30	Filed 2016-12-06
10-Q	2016-06-30	Filed 2016-08-03
10-Q	2016-03-31	Filed 2016-05-02
10-Q	2015-12-31	Filed 2016-02-04
10-K	2015-09-30	Filed 2015-12-08
10-Q	2015-06-30	Filed 2015-08-04
10-Q	2015-03-31	Filed 2015-05-05
10-Q	2014-12-31	Filed 2015-02-05
10-K	2014-09-30	Filed 2014-12-11
10-Q	2014-06-30	Filed 2014-08-05
10-Q	2014-03-31	Filed 2014-05-05
10-Q	2013-12-31	Filed 2014-02-06
10-K	2013-09-30	Filed 2013-12-06
10-Q	2013-06-30	Filed 2013-08-06
10-Q	2013-03-31	Filed 2013-05-07
10-Q	2012-12-31	Filed 2013-02-07
10-K	2012-09-30	Filed 2012-12-07
10-Q	2012-06-30	Filed 2012-08-03
10-Q	2012-03-31	Filed 2012-05-04
10-Q	2011-12-31	Filed 2012-02-07
10-K	2011-09-30	Filed 2011-12-08
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-02
10-Q	2010-12-31	Filed 2011-02-08
10-K	2010-09-30	Filed 2010-12-02
10-Q	2010-06-30	Filed 2010-08-09
10-Q	2010-03-31	Filed 2010-05-07
10-Q	2009-12-31	Filed 2010-02-08

8-K	2020-07-23	Earnings, Exhibits
8-K	2020-07-01	Other Events, Exhibits
8-K	2020-05-20
8-K	2020-04-23
8-K	2020-04-02
8-K	2020-03-16
8-K	2020-02-25
8-K	2020-01-23
8-K	2019-11-08
8-K	2019-10-29
8-K	2019-07-25
8-K	2019-07-02
8-K	2019-04-25
8-K	2019-02-21
8-K	2019-01-23
8-K	2018-10-30
8-K	2018-10-26
8-K	2018-09-26
8-K	2018-07-26
8-K	2018-06-25
8-K	2018-05-23
8-K	2018-04-26
8-K	2018-04-09
8-K	2018-02-22
8-K	2018-01-24

EX-10.1	hzo-ex101_248.htm
EX-10.2	hzo-ex102_249.htm
EX-31.1	hzo-ex311_7.htm
EX-31.2	hzo-ex312_9.htm
EX-32.1	hzo-ex321_8.htm
EX-32.2	hzo-ex322_6.htm

HZO 10Q Quarterly Report

MarineMax Earnings 2020-06-30