MarineMax(HZO) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights Fiscal 2025 Third Quarter Highlights MarineMax reported Q3 FY2025 revenue of $657.2 million, a 13.3% decrease, with a $52.1 million net loss due to a $69.1 million goodwill impairment Fiscal 2025 Third Quarter Key Financial Highlights | Metric | Amount (Millions USD) | Change (YoY) | | :--------------------- | :-------------------- | :----------- | | Revenue | 657.2 | -13.3% | | Same-Store Sales | -9% | - | | Gross Margin | 30.4% | -160 bps | | Net Loss | (52.1) | From profit to loss | | Adjusted Diluted EPS | 0.49 | - | | Adjusted EBITDA | 35.5 | - | CEO Commentary & Business Outlook CEO Brett McGill highlighted weak retail demand due to economic uncertainty, with the company diversifying into high-margin businesses and anticipating inventory rebalancing - Ongoing economic uncertainty, trade policies, and geopolitical tensions have led to weak retail demand in the recreational marine industry, reducing consumer willingness to purchase[2] - The company diversified into high-margin businesses, including finance and insurance, marinas, and superyacht services, to offset new boat margin pressure, with the IGY Marinas brand continuously expanding[3] - Industry inventory levels are expected to gradually rebalance in the second half of fiscal 2025, with new tax laws, easing geopolitical tensions, and trade agreements potentially reducing uncertainty[4][6] Fiscal 2025 Third Quarter Financial Performance Consolidated Statements of Operations Q3 FY2025 revenue declined 13.3% to $657.2 million, resulting in a $52.1 million net loss, primarily due to a $69.1 million goodwill impairment charge Fiscal 2025 Third Quarter Consolidated Statements of Operations Key Data (Thousands USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------- | | Revenue | 657,159 | 757,720 | -13.3% | | Cost of Sales | 457,538 | 515,621 | -11.3% | | Gross Profit | 199,621 | 242,099 | -17.6% | | Selling, General and Administrative Expenses | 172,106 | 181,072 | -4.95% | | Goodwill Impairment | 69,055 | — | - | | Operating (Loss) Income | (41,540) | 61,027 | From profit to loss | | Interest Expense | 16,936 | 18,229 | -7.1% | | Net (Loss) Income | (51,970) | 31,713 | From profit to loss | | Net (Loss) Income Attributable to MarineMax, Inc. | (52,146) | 31,550 | From profit to loss | | Diluted (Loss) Earnings Per Share | (2.42) | 1.37 | From profit to loss | | Adjusted Diluted Earnings Per Share | 0.49 | 1.51 | -67.5% | - The net loss for Q3 FY2025 was $52.1 million, primarily including a $69.1 million non-cash goodwill impairment charge in the manufacturing segment, resulting from a decline in the company's market capitalization and the manufacturing segment's performance[10] Segment Financial Information Retail segment revenue decreased to $655.8 million, while product manufacturing reported a $72.4 million operating loss, largely due to a $69.1 million goodwill impairment Fiscal 2025 Third Quarter Segment Financial Information (Thousands USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | | Revenue: | | | | Retail Operations | 655,750 | 752,171 | | Product Manufacturing | 32,150 | 38,062 | | Operating (Loss) Income: | | | | Retail Operations | 28,079 | 58,733 | | Product Manufacturing (1) | (72,363) | (548) | - The operating loss in the product manufacturing segment is primarily attributable to a $69.1 million non-cash goodwill impairment charge[24] Financial Position Condensed Consolidated Balance Sheets Total assets decreased to $2.488 billion as of June 30, 2025, with goodwill significantly reduced due to impairment, and total liabilities at $1.536 billion Condensed Consolidated Balance Sheets Key Data (Thousands USD) | Metric | June 30, 2025 | September 30, 2024 | June 30, 2024 | | :----------------------- | :-------------- | :----------------- | :-------------- | | Assets: | | | | | Cash and Cash Equivalents | 151,017 | 224,326 | 242,424 | | Inventory | 906,219 | 906,641 | 880,419 | | Goodwill | 527,144 | 592,293 | 589,949 | | Total Assets | 2,487,737 | 2,605,068 | 2,593,665 | | Liabilities: | | | | | Short-Term Borrowings | 735,215 | 708,994 | 701,185 | | Total Liabilities | 1,536,414 | 1,618,819 | 1,616,731 | | Shareholders' Equity: | | | | | Equity Attributable to MarineMax, Inc. | 940,530 | 975,795 | 967,551 | Fiscal 2025 Guidance Update Revised Fiscal 2025 Guidance MarineMax revised its FY2025 guidance, lowering adjusted diluted EPS to $0.45-$0.95 and adjusted EBITDA to $105-$120 million due to current business conditions Revised Fiscal 2025 Guidance | Metric | New Guidance | Old Guidance | | :--------------------- | :------------- | :------------- | | Adjusted Diluted EPS | $0.45 - $0.95 | $1.40 - $2.40 | | Adjusted EBITDA (Millions USD) | $105 - $120 | $140 - $170 | Company Overview & Disclosures About MarineMax MarineMax is the world's largest recreational boat and yacht retailer and superyacht services company, operating over 120 global locations with diverse integrated businesses - MarineMax is the world's largest recreational boat and yacht retailer, marina operator, and superyacht services company[15] - The company operates over 120 global locations, including more than 70 dealerships and 65 marinas and storage facilities[15] - Its integrated businesses include IGY Marinas (luxury marinas), Fraser Yachts Group and Northrop & Johnson (superyacht brokerage and luxury yacht services), Cruisers Yachts and Intrepid Powerboats (boat manufacturers), and digital technology products like Boatyard and Boatzon[15] Forward-Looking Statements This section outlines forward-looking statements, subject to risks and uncertainties like economic conditions and inventory management, with no obligation for the company to update them - Forward-looking statements are based on current expectations, forecasts, risks, uncertainties, and assumptions, which may cause actual results to differ materially from expectations[16][17] - Risks and uncertainties include the timing and results of the company's return to normal operations, long-term improvement plans, impact of cost reduction initiatives, inventory management capabilities, new product quality, integration of acquired businesses, macroeconomic conditions, and consumer spending levels[17] - The company undertakes no obligation to update or revise any forward-looking statements due to new information, future events, or other reasons[17] Non-GAAP Financial Measures Reconciliation of Non-GAAP Measures This section provides detailed reconciliations of GAAP net (loss) income to adjusted net income, adjusted diluted EPS, and adjusted EBITDA for Q3 FY2025 and FY2024 Reconciliation of Net (Loss) Income Attributable to MarineMax, Inc. to Adjusted Net Income (Thousands USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Net (Loss) Income Attributable to MarineMax, Inc. | (52,146) | 31,550 | | Transaction and Other Costs | 742 | 1,127 | | Amortization of Intangible Assets | 1,397 | 1,428 | | Change in Fair Value of Contingent Consideration | 60 | 1,225 | | Weather (Recovery) Expense | (773) | (556) | | Restructuring Charges | 526 | 1,110 | | Goodwill Impairment | 69,055 | — | | Tax Adjustment | (7,882) | (1,123) | | Adjusted Net Income Attributable to MarineMax, Inc. | 10,979 | 34,761 | | Diluted (Loss) Earnings Per Share | (2.42) | 1.37 | | Adjusted Diluted Earnings Per Share | 0.49 | 1.51 | Reconciliation of Net (Loss) Income Attributable to MarineMax, Inc. to Adjusted EBITDA (Thousands USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Net (Loss) Income Attributable to MarineMax, Inc. | (52,146) | 31,550 | | Interest Expense (excluding floor plan) | 6,946 | 7,508 | | Income Tax (Benefit) Provision | (6,506) | 11,085 | | Depreciation and Amortization | 12,537 | 11,192 | | Share-Based Compensation Expense | 5,643 | 6,080 | | Transaction and Other Costs | 742 | 1,127 | | Restructuring Charges | 526 | 1,225 | | Goodwill Impairment | 69,055 | — | | Change in Fair Value of Contingent Consideration | 60 | 1,110 | | Weather (Recovery) Expense | (773) | (556) | | Foreign Currency | (540) | 73 | | Adjusted EBITDA | 35,544 | 70,394 | Explanation of Non-GAAP Measures MarineMax utilizes non-GAAP metrics to enhance performance comparability and provide deeper insights into core operations, but does not reconcile forward-looking guidance due to inherent variability - Non-GAAP financial measures aim to enhance period-over-period comparability of the company's performance and provide investors with deeper insights into its core business operations[30] - The company does not provide a reconciliation of forward-looking adjusted net income and adjusted EBITDA guidance to GAAP net income due to the highly variable and difficult-to-predict nature of items such as acquisition contingent consideration, acquisition costs, and other costs[31]