MarineMax(US:HZO)2022-01-27 20:12Financial Data and Key Metrics Changes - Revenue grew 15% to $473 million, driven by same-store sales growth of 9% and contributions from recent acquisitions [29][12] - Gross margins reached a record 35%, an increase of 540 basis points, attributed to improved margins on new and used boat sales and growth in higher-margin businesses [31][21] - Earnings per share (EPS) rose to a record $1.59, up over 50% from $1.04 a year ago [34][12] Business Line Data and Key Metrics Changes - Same-store sales growth was primarily driven by an increase in unit sales, despite industry-wide supply chain challenges [13][29] - The company reported strong performance across all brand categories and geographic regions, with customer deposits exceeding $144 million [14][15] Market Data and Key Metrics Changes - The marine industry continues to see strong consumer demand for boating, with a significant increase in customer deposits [14][56] - The supply chain environment is expected to remain challenging, but improvements were noted as the quarter progressed [16][38] Company Strategy and Development Direction - The company is focused on enhancing customer experiences through strategic growth plans, including acquisitions and expanding higher-margin businesses [19][26] - The management emphasized the importance of digital capabilities and marketing strategies to adapt to changing customer expectations [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite supply chain uncertainties, expecting mid-single-digit same-store sales growth and mid-teens total annual revenue growth [40][38] - The company anticipates modest gross margin pressure due to inflationary pressures but believes it can mitigate these effects [41][40] Other Important Information - The company has a strong balance sheet with over $216 million in cash and a current ratio of 1.57, providing a strategic advantage for future expansions [35][37] - Recent acquisitions, including Texas MasterCraft and Intrepid Powerboats, are expected to contribute positively to revenue and margins [23][63] Q&A Session Summary Question: Can you discuss the unit delivery cycle and January same-store sales? - Management indicated that while they expect positive same-store sales growth in January, supply chain challenges remain unpredictable [48] Question: Thoughts on share buybacks given current valuations? - Management acknowledged the potential for share buybacks while also considering long-term growth through acquisitions [50] Question: Insights on dealer traffic and first-time boaters? - Demand remains strong, with high levels of first-time boaters entering the market, although some hot models have long wait times [55] Question: Inventory levels and expectations for 2022? - Management expects inventory levels to remain lean, with potential increases if supply chain issues improve [62] Question: EPS guidance and contributions from recent acquisitions? - The guidance includes an estimated contribution of around $0.20 from the recent acquisitions for the full year [63] Question: Plans for monetizing waterfront real estate? - Management is exploring opportunities to leverage their real estate holdings, with a focus on acquiring properties at favorable valuations [64] Question: Confidence in consumer ability to pay higher prices? - Management noted that demand remains strong despite price increases, with high single-digit to double-digit price increases expected [77]