MarineMax(US:HZO)2024-11-01 02:03Financial Data and Key Metrics Changes - Fiscal 2024 revenue increased approximately 2% from the prior year to $2.4 billion, with a 1% increase in comparable store sales [9][21] - Fourth quarter revenue was approximately $563 million, reflecting a 5% decline in same-store sales due to Hurricane Helene [17][21] - Adjusted net income for the quarter was $5.5 million or $0.24 per diluted share, compared to $15.8 million or $0.69 per diluted share last year [21] - Full-year adjusted net income was $49.1 million or $2.13 per diluted share [22] - Fourth quarter adjusted EBITDA was $33.5 million compared to $42.6 million last year, with full-year adjusted EBITDA at $160.2 million [22] Business Line Data and Key Metrics Changes - Despite the storm's impact, the company maintained a healthy gross margin of 34% in the fourth quarter, reflecting performance in higher-margin businesses such as finance and insurance [11][19] - Adjusted SG&A expenses declined by more than $5 million in the fourth quarter due to ongoing expense reduction initiatives [12][19] Market Data and Key Metrics Changes - Most markets experienced revenue increases except Florida, which was significantly impacted by the hurricanes [18] - On a same-store basis, comparable unit inventories are roughly 30% below 2019 levels [23] Company Strategy and Development Direction - The company remains focused on enhancing operating leverage and expanding into higher-margin operations [11][12] - Strategic steps include streamlining the store network and leveraging best practices to realize synergies across the organization [34] - The company has completed 20 acquisitions over the past five years, representing about $700 million of high-margin revenue [33] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by Hurricanes Helene and Milton, which have disrupted operations and impacted revenue [9][17] - The company expects same-store sales in fiscal 2025 to be essentially flat, with consolidated margins in the low 30s [27][28] - Management expressed cautious optimism about improving industry inventory levels and potential interest rate declines [27][28] Other Important Information - The company incurred a charge of $4.7 million in the fourth quarter to write off assets damaged in Hurricane Helene [20] - Cash and cash equivalents were over $224 million at year-end, with a debt-to-EBITDA ratio of about one-time net of cash [23][25] Q&A Session Summary Question: Impact of Hurricane Helene on fourth quarter - Management estimated a $30 million top-line impact and a $6 million bottom-line impact from Hurricane Helene [38][39] Question: Guidance for fiscal 2025 - Guidance assumes recovery from current disruptions, with the West Coast of Florida being a critical market [40][41] Question: Retail financing rates - Retail financing rates are down year-over-year by approximately 100 basis points, with expectations for further benefits in 2025 [44][45] Question: Retail inventory levels - Management noted elevated inventory levels across the industry, with expectations for pressure on margins [51][52] Question: Promotional activity in the market - High promotional activity is anticipated as dealers aim to reduce inventory, which may pressure margins [56][57] Question: Service side of the business - The service side is expected to perform well due to reconstruction efforts post-hurricanes, providing opportunities for revenue growth [91][92]