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MARINEMAX INC (HZO)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue fell 5% year over year to $563.1M, with GAAP diluted EPS of $0.17 and Adjusted diluted EPS of $0.24; gross margin held at 34.3% despite lower boat margins, aided by higher-margin businesses (finance/insurance, marinas, superyacht services) .
  • Management quantified Hurricane Helene’s Q4 impact at roughly ~$30M of top-line sales and “$6M+” to the bottom line; Florida’s West Coast (≈25% of sales) and broader hurricane effects will weigh on the December quarter comps .
  • FY2025 guidance introduced: Adjusted EPS $1.80–$2.80 and Adjusted EBITDA $150–$180M; assumptions include ~flat same-store sales, consolidated margins in the low-30s, tax rate ~26.5%, and ~23.5M diluted shares .
  • Operational actions: continued cost reductions, consolidation/closure of select retail locations, and focus on operating leverage; Q4 Adjusted SG&A down ~$5.1M versus prior year on a comparable basis .
  • Stock-relevant catalysts: resilience of higher-margin segments (IGY marinas, storage, superyacht services), ongoing cost actions, and normalization of promotional pressures as dealers destock through winter/early boat shows; near-term caution for Florida markets and Q1 seasonality .

What Went Well and What Went Wrong

What Went Well

  • Gross margin held at 34.3% in Q4 (unchanged YoY) despite lower unit margins, underscoring mix shift to higher-margin businesses (finance & insurance, marinas, Superyacht) .
  • Annual same-store sales rose 1% and FY2024 revenue reached $2.43B, demonstrating relative resilience versus a challenged retail backdrop .
  • Strategic cost actions drove Q4 Adjusted SG&A down ~$5.1M YoY; management remains focused on improving operating leverage in FY2025 .
  • Quote: “Our ability to maintain a gross margin above 34% despite boat margins being at or below pre-pandemic levels… speaks to the success of that effort.” – Brett McGill .
  • IGY portfolio momentum: new recognition/accreditations (Sindalah, Caribbean marinas), progress on Savannah Harbor Marina; leadership update at IGY (CEO appointment) .

What Went Wrong

  • Hurricanes Helene and Milton disrupted Q4 sales (insurance market closure ahead of landfall) and damaged West Coast Florida facilities, driving -5% same-store sales and lower net income vs prior year .
  • Promotional environment and elevated industry inventories pressured boat margins; management expects continued margin pressure through the winter and early 2025 boat shows .
  • Interest expense rose to $17.9M in Q4 (3.2% of revenue) on higher borrowings tied to inventory; non-cash tax items further lifted the Q4 tax rate (~$0.07 EPS impact) .

Financial Results

Key P&L vs prior year and prior quarter

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD Millions)$594.6 $757.7 $563.1
Diluted EPS ($)$0.67 $1.37 $0.17
Adjusted Diluted EPS ($)$0.69 $1.51 $0.24
Gross Margin (%)34.3% 32.0% 34.3%
SG&A (% of Revenue)28.5% 23.9% 29.5%
Operating Income ($USD Millions)$34.3 $61.0 $26.8
Adjusted EBITDA ($USD Millions)$42.6 $70.4 $33.5

KPIs and quarterly trajectory

KPIQ2 2024Q3 2024Q4 2024
Same-Store Sales (%)+2% +4% -5%
Gross Margin (%)32.7% 32.0% 34.3%
Diluted EPS ($)$0.07 $1.37 $0.17
Adjusted Diluted EPS ($)$0.18 $1.51 $0.24
Adjusted EBITDA ($USD Millions)$29.6 $70.4 $33.5

Segment breakdown (Q4 and FY)

Segment MetricQ4 2023Q4 2024FY 2023FY 2024
Retail Operations Revenue ($USD Millions)$587.3 $562.5 $2,294.4 $2,417.9
Product Manufacturing Revenue ($USD Millions)$57.3 $30.4 $222.3 $154.8
Intersegment Revenue ($USD Millions)($50.0) ($29.8) ($121.9) ($141.7)
Retail Operations Operating Income ($USD Millions)$34.0 $28.7 $192.5 $122.9
Product Manufacturing Operating Income ($USD Millions)$5.6 ($2.1) $23.4 $0.4

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPS ($)FY2024$2.20–$3.20 Actual $2.13 Maintained guidance; actual finished near low end
Adjusted EBITDA ($USD Millions)FY2024$155–$190 Actual $160.2 Maintained guidance; actual within range
Adjusted EPS ($)FY2025N/A$1.80–$2.80 New
Adjusted EBITDA ($USD Millions)FY2025N/A$150–$180 New
Same-Store Sales (%)FY2025N/A~Flat New directional
Consolidated Gross Margin (%)FY2025N/ALow-30s New directional
Tax Rate (%)FY2025N/A~26.5% New parameter
Diluted Share Count (M)FY2025N/A~23.5 New parameter
Q1 FY2025 Comps vs PYQ1 FY2025N/ANegative vs +4% last year New cautionary

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024, Q3 2024)Current Period (Q4 2024)Trend
Margin Pressure & PromotionsMargins back to historical norms; low-30s guide; promotions elevated to drive retail Promotions expected to remain high; margins likely under pressure through winter/boat shows Deteriorating near term
Inventory & DestockingProactive inventory management; aging better than industry; turns target >3x Inventory aging “meaningfully better” than industry; expect seasonal improvement; Florida impact Mixed (operationally strong vs macro headwinds)
Interest Rates & FinancingNo cuts assumed in prior guidance; seasonal patterns noted Retail financing rates down ~100 bps YoY; guidance bakes in 50 bps for FY2025 Improving incremental tailwind
Hurricanes/Weather ImpactSeasonal/weather effects cited in Q2 Helene/Milton drove ~$30M sales loss and ~$6M+ bottom-line hit in Q4; December quarter caution Acute near-term headwind
Higher-Margin Businesses (IGY, Superyacht)Strategy central; SYD integration; cost actions Margin resilience above 34% with marina/superyacht contributions; IGY accreditations and projects Positive structural mix shift
Technology/Digital ToolsBoatyard/Boatzon engagement highlighted Continued emphasis on operational efficiency and tech tools Stable/positive
Regulatory/LegalNOAA offshore speed rule watch; Cabo marina dispute noted No new specifics beyond hurricane impacts Stable/monitoring

Management Commentary

  • Strategic mix: “Our fourth-quarter performance… highlights the progress we have made to strengthen our financial profile by building a meaningful presence in higher-margin businesses, including marinas, storage facilities, and superyacht services.” – Brett McGill .
  • Cost discipline: “We implemented further strategic cost-cutting actions during the fourth quarter, including consolidating certain retail locations… Expense reduction remains a focus in fiscal 2025.” – Brett McGill .
  • Hurricane response: “Resilient is the word… Hurricanes Helene and Milton have caused significant damage… our Sarasota location… is open and operating except for the marina, which requires additional repairs.” – Brett McGill .
  • FY2025 posture: “We would expect our same-store sales… essentially flat… maintain consolidated margins in the low 30s… adjusted EBITDA $150–$180M and adjusted net income $1.80–$2.80.” – Michael McLamb .
  • IGY/Superyacht momentum: Accreditations for Sindalah and Caribbean marinas; Savannah Harbor Marina progressing; IGY CEO appointment; Aviara brand rights acquired .

Q&A Highlights

  • Hurricanes quantification: ~+$30M sales expected that didn’t close in Q4; ~$6M+ bottom-line flow-through; Florida West Coast ≈25% of total revenue; December quarter caution and negative comps expected .
  • Margin outlook: Consolidated margins likely “a little below” FY2024’s 33% through winter as promotional activity persists; potential stabilization by March/June as inventories normalize .
  • Financing rates: Retail boat financing rates down ~100 bps YoY; FY2025 guidance only includes the realized 50 bps cut to date .
  • SG&A actions: 6 store closures over recent quarters; targeting $20–$25M SG&A reductions run-rate; working to move SG&A % closer to FY2023 levels amid inflation .
  • Inventory positioning: Aging better than industry; expect seasonal improvement; manufacturers moderating production and supporting promotions .

Estimates Context

  • S&P Global consensus estimates for Q4 2024 and forward periods were unavailable at the time of request due to data access limitations; therefore, explicit beat/miss versus consensus cannot be provided.
  • Given the absence of consensus data, investors should focus on management’s FY2025 guidance ranges and the qualitative drivers (hurricanes, promotions, inventory normalization, rates) to calibrate expectations .
MetricPeriodConsensusActualBeat/Miss
EPS ($)Q4 2024N/A$0.17 N/A
Revenue ($USD Millions)Q4 2024N/A$563.1 N/A
Adjusted EPS ($)Q4 2024N/A$0.24 N/A
Adjusted EBITDA ($USD Millions)Q4 2024N/A$33.5 N/A

Note: S&P Global consensus estimates were unavailable at the time of this analysis.

Key Takeaways for Investors

  • Mix resilience: The 34.3% gross margin in Q4, despite lower boat margins, validates the strategic expansion into higher-margin businesses (marinas/superyacht/services) and supports medium-term margin durability .
  • Near-term caution: Hurricanes will likely depress December-quarter comps in key Florida markets; expect continued promotional pressure and margin headwinds through the winter/early boat show season .
  • FY2025 guardrails: Use Adjusted EPS $1.80–$2.80 and Adjusted EBITDA $150–$180M with ~flat same-store sales and low-30s margin assumptions; model tax ~26.5% and ~23.5M diluted shares .
  • Cost-down catalyst: SG&A actions (store consolidations, vendor renegotiations) targeting $20–$25M annualized savings can drive operating leverage as retail conditions normalize .
  • Inventory normalization: Management and OEMs are moderating builds; weeks-on-hand should improve seasonally, setting up potential margin stabilization by March/June if retail holds .
  • Rate tailwind: Retail financing rates have eased ~100 bps YoY; additional rate cuts, if realized, could incrementally support demand through FY2025 .
  • Trading lens: Near-term volatility around Florida hurricane impacts and promotional intensity; watch updates on Q1 (December quarter) comps, margin trajectory, and marina/superyacht execution for inflection signals .