2013 Q4 Form 10-Q Financial Statement

#000119312514038813 Filed on February 06, 2014

View on sec.gov

Income Statement

Concept 2013 Q4 2012 Q4
Revenue $109.6M $99.05M
YoY Change 10.64% 7.91%
Cost Of Revenue $79.68M $72.77M
YoY Change 9.49% 9.91%
Gross Profit $29.91M $26.28M
YoY Change 13.82% 2.75%
Gross Profit Margin 27.29% 26.53%
Selling, General & Admin $32.28M $29.44M
YoY Change 9.64% 3.06%
% of Gross Profit 107.93% 112.04%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.762M $1.675M
YoY Change 5.19% 5.48%
% of Gross Profit 5.89% 6.37%
Operating Expenses $32.28M $29.44M
YoY Change 9.64% 3.06%
Operating Profit -$2.372M -$3.165M
YoY Change -25.06% 5.64%
Interest Expense $997.0K $997.0K
YoY Change 0.0% -18.08%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$3.369M -$4.162M
YoY Change -19.05% -1.21%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$3.369M -$4.162M
YoY Change -19.05% -1.21%
Net Earnings / Revenue -3.07% -4.2%
Basic Earnings Per Share -$0.14
Diluted Earnings Per Share -$0.14 -$0.18
COMMON SHARES
Basic Shares Outstanding 23.72M shares 22.96M shares
Diluted Shares Outstanding 23.72M 22.96M shares

Balance Sheet

Concept 2013 Q4 2012 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $15.90M $15.40M
YoY Change 3.25% 11.59%
Cash & Equivalents $15.90M $15.39M
Short-Term Investments
Other Short-Term Assets $4.800M $4.700M
YoY Change 2.13% 9.3%
Inventory $238.1M $226.8M
Prepaid Expenses
Receivables $13.67M $13.51M
Other Receivables $0.00 $0.00
Total Short-Term Assets $272.4M $260.4M
YoY Change 4.61% -0.03%
LONG-TERM ASSETS
Property, Plant & Equipment $100.2M $98.87M
YoY Change 1.33% -2.78%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $5.526M $3.953M
YoY Change 39.79% 295.3%
Total Long-Term Assets $105.7M $102.8M
YoY Change 2.81% 0.22%
TOTAL ASSETS
Total Short-Term Assets $272.4M $260.4M
Total Long-Term Assets $105.7M $102.8M
Total Assets $378.1M $363.3M
YoY Change 4.1% 0.04%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.133M $5.782M
YoY Change -28.52% 11.19%
Accrued Expenses $14.88M $20.25M
YoY Change -26.53% -7.12%
Deferred Revenue
YoY Change
Short-Term Debt $125.9M $123.4M
YoY Change 2.06% -5.25%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $156.4M $163.2M
YoY Change -4.15% -1.44%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $400.0K $1.900M
YoY Change -78.95% -64.15%
Total Long-Term Liabilities $440.0K $1.853M
YoY Change -76.25% -65.04%
TOTAL LIABILITIES
Total Short-Term Liabilities $156.4M $163.2M
Total Long-Term Liabilities $440.0K $1.853M
Total Liabilities $156.9M $165.1M
YoY Change -4.96% -3.41%
SHAREHOLDERS EQUITY
Retained Earnings $12.50M -$3.317M
YoY Change -476.85%
Common Stock $224.6M $217.3M
YoY Change 3.34%
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 $221.3M $198.2M
YoY Change
Total Liabilities & Shareholders Equity $378.1M $363.3M
YoY Change 4.1% 0.04%

Cashflow Statement

Concept 2013 Q4 2012 Q4
OPERATING ACTIVITIES
Net Income -$3.369M -$4.162M
YoY Change -19.05% -1.21%
Depreciation, Depletion And Amortization $1.762M $1.675M
YoY Change 5.19% 5.48%
Cash From Operating Activities -$11.38M -$9.793M
YoY Change 16.17% -39.64%
INVESTING ACTIVITIES
Capital Expenditures $1.625M $2.772M
YoY Change -41.38% 113.56%
Acquisitions
YoY Change
Other Investing Activities $100.0K $1.300M
YoY Change -92.31% 550.0%
Cash From Investing Activities -$1.575M -$1.502M
YoY Change 4.86% 42.91%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 5.100M 3.071M
YoY Change 66.07% -73.74%
NET CHANGE
Cash From Operating Activities -11.38M -9.793M
Cash From Investing Activities -1.575M -1.502M
Cash From Financing Activities 5.100M 3.071M
Net Change In Cash -7.852M -8.224M
YoY Change -4.52% 47.33%
FREE CASH FLOW
Cash From Operating Activities -$11.38M -$9.793M
Capital Expenditures $1.625M $2.772M
Free Cash Flow -$13.00M -$12.57M
YoY Change 3.48% -28.29%

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<div> <p style="MARGIN-TOP: 12pt; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> <b>1. COMPANY BACKGROUND:</b></p> <p style="MARGIN-TOP: 6pt; TEXT-INDENT: 4%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 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 entered into the charter business of power and sailing yachts in the British Virgin Islands. This business, thus far, has not had a material effect on our condensed consolidated financial statements. As of December&#xA0;31, 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 charter business, MarineMax Vacations, maintains a facility in Tortola, British Virgin Islands.</p> <p style="MARGIN-TOP: 12pt; TEXT-INDENT: 4%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> We are the nation&#x2019;s largest retailer of Sea Ray, Boston Whaler, Harris FloteBote, and Meridian recreational boats and yachts, all of which are manufactured by Brunswick Corporation (&#x201C;Brunswick&#x201D;). Sales of new Brunswick boats accounted for approximately 38% of our revenue in fiscal 2013. Brunswick is the world&#x2019;s largest manufacturer of marine products and marine engines. We believe we represented approximately 49% of Brunswick&#x2019;s Sea Ray boat sales, during our fiscal 2013.</p> <p style="MARGIN-TOP: 12pt; TEXT-INDENT: 4%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> We have dealership agreements with Sea Ray, Boston Whaler, 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.</p> <p style="MARGIN-TOP: 12pt; TEXT-INDENT: 4%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 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 through a multi-year dealer agreement for many of our geographic markets. In addition, we are the exclusive dealer for Azimut Yachts for the entire United States through a multi-year dealer agreement. Sales of new Azimut boats accounted for approximately 13% of our revenue in fiscal 2013. 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.</p> <p style="MARGIN-TOP: 12pt; TEXT-INDENT: 4%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> As is typical in the industry, we deal with manufacturers, other than Sea Ray, Boston Whaler, 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 and Azimut 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.</p> <p style="MARGIN-TOP: 12pt; TEXT-INDENT: 4%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 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 approximately 50%, 49%, and 51% of our revenue during fiscal 2011, 2012, and 2013, respectively, can have a major impact on our operations. Local influences, such as corporate downsizing, military base closings, inclement weather, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico, also have adversely affected our operations in certain markets and could do so in the future.</p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px"> &#xA0;</p> <p style="MARGIN-TOP: 0pt; TEXT-INDENT: 4%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 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. As a result, an economic downturn could impact us more than certain of our competitors due to our strategic focus on a higher end of our market. 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.</p> <p style="MARGIN-TOP: 12pt; TEXT-INDENT: 4%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> 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 substantial negative effect on our business in each subsequent fiscal year, including to a more limited extent in fiscal 2012, 2013, and to date in fiscal 2014. These conditions have 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 accelerate 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.</p> </div>
CY2013Q4 us-gaap Line Of Credit Facility Description
LineOfCreditFacilityDescription
The June 2013 amendment extended the maturity date of the Credit Facility to June 2016, subject to additional extension for two one-year periods, with lender approval.
CY2013Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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P7Y1M6D
CY2013Q4 us-gaap Debt Instrument Maturity Date
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2016-06-30
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7.23
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23715945 shares
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15.81
CY2013Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Purchase Price Of Common Stock Percent
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0.85 pure
CY2013Q4 us-gaap Net Cash Provided By Used In Operating Activities
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-11377000
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-0.14
CY2013Q4 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
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7.39
CY2013Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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566000 shares
CY2013Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
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54028 shares
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P6Y
CY2013Q4 us-gaap Stock Issued During Period Shares Stock Options Exercised
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185898 shares
CY2013Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
17.16
CY2013Q4 us-gaap Increase Decrease In Inventories
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10011000
CY2013Q4 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
282000
CY2013Q4 us-gaap Debt Instrument Covenant Compliance
DebtInstrumentCovenantCompliance
The covenants include provisions that our leverage ratio must not exceed 2.75 to 1.0 and that our current ratio must be greater than 1.2 to 1.0.
CY2013Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod
5330 shares
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<div> <p style="MARGIN-TOP: 12pt; TEXT-INDENT: 4%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt"> The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. The estimates made by us in the accompanying unaudited condensed consolidated financial statements include valuation allowances, valuation of goodwill and intangible assets, valuation of long-lived assets, and valuation of accruals. Actual results could differ from those estimates.</p> </div>
CY2013Q4 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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-31000
CY2013Q4 us-gaap Gross Profit
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CY2013Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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-3369000
CY2013Q4 us-gaap Gain Loss On Sale Of Property Plant Equipment
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30000
CY2013Q4 us-gaap Restricted Stock Value Shares Issued Net Of Tax Withholdings
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CY2013Q4 us-gaap Stock Issued During Period Value Stock Options Exercised
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1375000
CY2013Q4 us-gaap Income Taxes Paid
IncomeTaxesPaid
CY2013Q4 us-gaap Operating Income Loss
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-2372000
CY2013Q4 us-gaap Interest Paid
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859000
CY2013Q4 us-gaap Net Income Loss
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-3369000
CY2013Q4 us-gaap Increase Decrease In Accounts Receivable
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-5826000
CY2013Q4 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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1152000
CY2013Q4 us-gaap Gain Loss On Sale Of Insurance Block
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214000
CY2013Q4 us-gaap Employee Service Share Based Compensation Tax Benefit Realized From Exercise Of Stock Options
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0
CY2013Q4 us-gaap Sales Revenue Net
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109592000
CY2013Q4 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1625000
CY2013Q4 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
1657000
CY2013Q4 us-gaap Impairment Of Long Lived Assets Held For Use
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0
CY2013Q4 us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
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-5413000
CY2013Q4 us-gaap Net Cash Provided By Used In Financing Activities
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5100000
CY2013Q4 us-gaap Cost Of Goods And Services Sold
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79682000
CY2013Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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1400000
CY2013Q4 us-gaap Share Based Compensation
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1152000
CY2013Q4 us-gaap Proceeds From Repayments Of Short Term Debt
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3443000
CY2013Q4 us-gaap Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
-7852000
CY2013Q4 us-gaap Interest Expense
InterestExpense
997000
CY2013Q4 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-3291000
CY2013Q4 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
50000
CY2013Q4 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-1575000
CY2013Q4 us-gaap Increase Decrease In Customer Deposits
IncreaseDecreaseInCustomerDeposits
2180000
CY2013Q4 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
1762000
CY2013Q4 us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
EmployeeServiceShareBasedCompensationCashReceivedFromExerciseOfStockOptions
1700000
CY2013Q4 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
32282000
CY2013Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
CY2013Q4 hzo Full Service Yacht Repair Operations Number
FullServiceYachtRepairOperationsNumber
2 Operations
CY2013Q4 hzo Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrantForfeituresAndExpirationsInPeriod
54028 shares
CY2013Q4 hzo Boat Brokerage Operations Number
BoatBrokerageOperationsNumber
2 Operations
CY2013Q4 hzo Advances On Used Inventory From Used Inventory Date Period
AdvancesOnUsedInventoryFromUsedInventoryDatePeriod
P361D
CY2013Q4 hzo Share Based Compensation Arrangement By Share Based Payment Award Award Implementation Description
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardImplementationDescription
Implementation of up to 10 annual offerings beginning on the first day of October starting in 2008, with each offering terminating on September 30 of the following year
CY2013Q4 hzo Share Based Compensation Arrangement By Share Based Payment Award Maximum Number Of Common Stock Value Per Employee
ShareBasedCompensationArrangementByShareBasedPaymentAwardMaximumNumberOfCommonStockValuePerEmployee
25000
CY2013Q4 hzo Independent Recreational Boat Dealers In Number
IndependentRecreationalBoatDealersInNumber
5 Dealer
CY2013Q4 hzo Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrantInPeriod
shares
CY2013Q4 hzo Payment Due To Used Inventory Subject To Curtailment
PaymentDueToUsedInventorySubjectToCurtailment
P6M
CY2013Q4 hzo Advances On New Inventory From Original Invoice Date Period
AdvancesOnNewInventoryFromOriginalInvoiceDatePeriod
P1081D
CY2013Q4 hzo Share Based Compensation Arrangement By Share Based Payment Award Participant Earning Percent During Offering Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardParticipantEarningPercentDuringOfferingPeriod
0.10 pure
CY2013Q4 hzo Inventory Financing Additional Available Borrowings
InventoryFinancingAdditionalAvailableBorrowings
35100000
CY2013Q4 hzo Recreational Boat Dealers In Number
RecreationalBoatDealersInNumber
23 Dealer
CY2013Q4 hzo Payment Due To New Inventory Subject To Curtailment
PaymentDueToNewInventorySubjectToCurtailment
P6M

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