2013 Q3 Form 10-Q Financial Statement

#000119312513321625 Filed on August 06, 2013

View on sec.gov

Income Statement

Concept 2013 Q3 2013 Q2 2012 Q2
Revenue $149.7M $175.8M $151.3M
YoY Change 8.98% 16.14% -1.22%
Cost Of Revenue $109.6M $128.9M $111.0M
YoY Change 5.04% 16.13% -2.68%
Gross Profit $40.12M $46.81M $40.29M
YoY Change 21.42% 16.18% 3.04%
Gross Profit Margin 26.8% 26.63% 26.62%
Selling, General & Admin $33.92M $33.05M $34.66M
YoY Change 0.67% -4.65% -1.54%
% of Gross Profit 84.54% 70.6% 86.02%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.700M $1.700M $1.500M
YoY Change -5.56% 13.33% -11.76%
% of Gross Profit 4.24% 3.63% 3.72%
Operating Expenses $33.92M $33.05M $34.66M
YoY Change 0.67% -4.65% -1.54%
Operating Profit $6.203M $13.76M $5.631M
YoY Change -1055.78% 144.36% 44.38%
Interest Expense $862.0K $1.193M $1.018M
YoY Change -14.57% 17.19% -227.25%
% of Operating Profit 13.9% 8.67% 18.08%
Other Income/Expense, Net
YoY Change
Pretax Income $5.341M $12.57M $4.613M
YoY Change -422.14% 172.43% 53.77%
Income Tax $136.0K -$1.070M
% Of Pretax Income 2.55% -8.51%
Net Earnings $5.205M $13.64M $4.613M
YoY Change -425.72% 195.62% 35.68%
Net Earnings / Revenue 3.48% 7.76% 3.05%
Basic Earnings Per Share $0.58 $0.20
Diluted Earnings Per Share $0.21 $0.56 $0.20
COMMON SHARES
Basic Shares Outstanding 24.26M shares 23.39M shares 22.81M shares
Diluted Shares Outstanding 24.27M shares 24.18M shares 23.52M shares

Balance Sheet

Concept 2013 Q3 2013 Q2 2012 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $23.80M $37.30M $33.20M
YoY Change 0.85% 12.35% 22.96%
Cash & Equivalents $23.76M $37.30M $33.24M
Short-Term Investments
Other Short-Term Assets $4.800M $4.800M $6.000M
YoY Change -5.88% -20.0% 11.11%
Inventory $228.0M $235.0M $199.1M
Prepaid Expenses
Receivables $19.41M $29.89M $21.10M
Other Receivables $368.0K $0.00 $0.00
Total Short-Term Assets $276.1M $307.0M $259.4M
YoY Change 5.12% 18.35% 1.77%
LONG-TERM ASSETS
Property, Plant & Equipment $100.3M $100.1M $101.2M
YoY Change 1.56% -1.05% -0.59%
Goodwill $802.0K
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $5.507M $4.893M $700.0K
YoY Change 48.24% 599.0% -41.67%
Total Long-Term Assets $105.8M $105.0M $101.8M
YoY Change 3.25% 3.17% -1.17%
TOTAL ASSETS
Total Short-Term Assets $276.1M $307.0M $259.4M
Total Long-Term Assets $105.8M $105.0M $101.8M
Total Assets $381.9M $412.0M $361.2M
YoY Change 4.6% 14.07% 0.92%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $7.474M $9.828M $9.100M
YoY Change -11.62% 8.0% -17.27%
Accrued Expenses $20.33M $24.82M $25.50M
YoY Change -12.61% -2.68% -5.56%
Deferred Revenue
YoY Change
Short-Term Debt $122.5M $142.3M $111.8M
YoY Change 1.51% 27.31% 6.27%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $159.6M $195.3M $155.1M
YoY Change -0.78% 25.94% 2.17%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $500.0K $700.0K $4.400M
YoY Change -84.85% -84.09% -29.03%
Total Long-Term Liabilities $473.0K $723.0K $4.400M
YoY Change -85.72% -83.57% -29.03%
TOTAL LIABILITIES
Total Short-Term Liabilities $159.6M $195.3M $155.1M
Total Long-Term Liabilities $473.0K $723.0K $4.400M
Total Liabilities $160.1M $196.1M $159.6M
YoY Change -2.49% 22.84% 1.01%
SHAREHOLDERS EQUITY
Retained Earnings $15.87M $10.66M
YoY Change 1777.99%
Common Stock $221.8M $221.1M
YoY Change 2.71%
Preferred Stock
YoY Change
Treasury Stock (at cost) $15.81M $15.81M
YoY Change 0.0%
Treasury Stock Shares 790.9K shares 790.9K shares
Shareholders Equity $221.8M $216.0M $201.7M
YoY Change
Total Liabilities & Shareholders Equity $381.9M $412.0M $361.2M
YoY Change 4.6% 14.07% 0.92%

Cashflow Statement

Concept 2013 Q3 2013 Q2 2012 Q2
OPERATING ACTIVITIES
Net Income $5.205M $13.64M $4.613M
YoY Change -425.72% 195.62% 35.68%
Depreciation, Depletion And Amortization $1.700M $1.700M $1.500M
YoY Change -5.56% 13.33% -11.76%
Cash From Operating Activities $8.200M $6.000M $13.10M
YoY Change -155.41% -54.2% -270.13%
INVESTING ACTIVITIES
Capital Expenditures -$2.000M -$1.200M -$1.600M
YoY Change 33.33% -25.0% -33.33%
Acquisitions
YoY Change
Other Investing Activities -$100.0K $400.0K $200.0K
YoY Change -95.65% 100.0%
Cash From Investing Activities -$2.000M -$1.000M -$1.500M
YoY Change -45.95% -33.33% -37.5%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -19.80M 2.200M -7.400M
YoY Change -320.0% -129.73% -147.13%
NET CHANGE
Cash From Operating Activities 8.200M 6.000M 13.10M
Cash From Investing Activities -2.000M -1.000M -1.500M
Cash From Financing Activities -19.80M 2.200M -7.400M
Net Change In Cash -13.60M 7.200M 4.200M
YoY Change 43.16% 71.43% -25.0%
FREE CASH FLOW
Cash From Operating Activities $8.200M $6.000M $13.10M
Capital Expenditures -$2.000M -$1.200M -$1.600M
Free Cash Flow $10.20M $7.200M $14.70M
YoY Change -176.69% -51.02% -377.36%

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<div> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b><font style="FONT-FAMILY: Times New Roman" size="2"><b>1. COMPANY BACKGROUND:</b></font></b></font></p> <font style="FONT-FAMILY: Times New Roman" size="2"> <!-- xbrl,body --></font> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">We are the largest recreational boat retailer in the United&#xA0;States. We engage primarily in the retail sale, brokerage, and service of new and used boats, motors, trailers, marine parts and accessories and offer slip and storage accommodations in certain locations. In addition, we arrange related boat financing, insurance, and extended service contracts. We recently implemented programs to increase our sale over the Internet of used boats and a wide range of boating parts, accessories, supplies, and products; the sale of boats, boating parts, and accessories, as well as the offer of finance and insurance, or F&amp;I, products at various offsite locations; and the charter of power and sailing yachts in the British Virgin Islands. None of these recently implemented programs have had a material effect on our condensed consolidated financial statements. As of June&#xA0;30, 2013, we operated through 54 retail locations in 18 states, consisting of Alabama, Arizona, California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas. Our MarineMax Vacations operations maintain a facility in Tortola, British Virgin Islands.</font></font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">We are the nation&#x2019;s largest retailer of Sea Ray, Boston Whaler, Bayliner, Meridian, Cabo, and Hatteras recreational boats and yachts, all of which are manufactured by Brunswick Corporation (&#x201C;Brunswick&#x201D;). Sales of new Brunswick boats accounted for approximately 47% of our revenue in fiscal 2012. Brunswick is the world&#x2019;s largest manufacturer of marine products and marine engines. We believe we represented in excess of 7% of all Brunswick marine sales, including approximately 42% of its Sea Ray boat sales, during our 2012 fiscal year.</font></font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">We have dealership agreements with Sea Ray, Boston Whaler, Bayliner, Cabo, Hatteras, Meridian, and Mercury Marine, all subsidiaries or divisions of Brunswick. We also have dealer agreements with Italy-based Azimut-Benetti Group&#x2019;s product line for Azimut Yachts. These agreements allow us to purchase, stock, sell, and service these manufacturers&#x2019; boats and products. These agreements also allow us to use these manufacturers&#x2019; names, trade symbols, and intellectual properties in our operations.</font></font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">We are a party to a multi-year dealer agreement with Brunswick covering Sea Ray products that appoints us as the exclusive dealer of Sea Ray boats in our geographic markets. We are the exclusive dealer for Boston Whaler and Bayliner through multi-year dealer agreements for many of our geographic markets. We are a party to a dealer agreement with Hatteras that gives us the exclusive right to sell Hatteras Yachts throughout the states of Florida (excluding the Florida panhandle), New Jersey, New York, and Texas. We are also the exclusive dealer for Cabo throughout the states of Florida, New Jersey, and New York through a dealer agreement. In addition, we are the exclusive dealer for Azimut Yachts for the entire United States through a multi-year dealer agreement. We believe non-Brunswick brands offer a migration for our existing customer base or fill a void in our product offerings, and accordingly, do not compete with the business generated from our other prominent brands.</font></font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">As is typical in the industry, we deal with manufacturers, other than Sea Ray, Boston Whaler, Bayliner, Meridian, and Azimut Yachts, under renewable annual dealer agreements, each of which gives us the right to sell various makes and models of boats within a given geographic region. Any change or termination of these agreements, or the agreements discussed above, for any reason, or changes in competitive, regulatory, or marketing practices, including rebate or incentive programs, could adversely affect our results of operations. Although there are a limited number of manufacturers of the type of boats and products that we sell, we believe that adequate alternative sources would be available to replace any manufacturer other than Sea Ray as a product source. These alternative sources may not be available at the time of any interruption, and alternative products may not be available at comparable terms, which could affect operating results adversely.</font></font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">General economic conditions and consumer spending patterns can negatively impact our operating results. Unfavorable local, regional, national, or global economic developments or uncertainties regarding future economic prospects could reduce consumer spending in the markets we serve and adversely affect our business. Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated 54%, 50%, and 49% of our revenue during fiscal 2010, 2011, and 2012, respectively, can have a major impact on our operations. Local influences, such as corporate downsizing, military base closings, inclement weather such as Hurricane Sandy, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico, also could adversely affect our operations in certain markets.</font></font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px"> <font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">In an economic downturn, consumer discretionary spending levels generally decline, at times resulting in disproportionately large reductions in the sale of luxury goods. Consumer spending on luxury goods also may decline as a result of lower consumer confidence levels, even if prevailing economic conditions are favorable. Although we have expanded our operations during periods of stagnant or modestly declining industry trends, the cyclical nature of the recreational boating industry or the lack of industry growth may adversely affect our business, financial condition, and results of operations. Any period of adverse economic conditions or low consumer confidence has a negative effect on our business.</font></font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">Lower consumer spending resulting from a downturn in the housing market and other economic factors adversely affected our business in fiscal 2007, and continued weakness in consumer spending and depressed economic conditions had a very substantial negative effect on our business in each subsequent fiscal year. These conditions caused us to substantially reduce our acquisition program, delay new store openings, reduce our inventory purchases, engage in inventory reduction efforts, close a number of our retail locations, reduce our headcount, and amend and replace our credit facility. Acquisitions and new store openings remain important strategies to our company, and we plan to resume our growth through these strategies when more normal economic conditions return. However, we cannot predict the length or severity of these unfavorable economic or financial conditions or the extent to which they will continue to adversely affect our operating results nor can we predict the effectiveness of the measures we have taken to address this environment or whether additional measures will be necessary.</font></font><!-- xbrl,n --></p> </div>
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