2017 Q1 Form 10-Q Financial Statement
#000156459018010012 Filed on May 01, 2018
Income Statement
| Concept | 2017 Q1 |
|---|---|
| Revenue | $245.0M |
| YoY Change | 22.78% |
| Cost Of Revenue | $184.0M |
| YoY Change | 22.2% |
| Gross Profit | $61.06M |
| YoY Change | 24.54% |
| Gross Profit Margin | 24.92% |
| Selling, General & Admin | $54.78M |
| YoY Change | 26.05% |
| % of Gross Profit | 89.72% |
| Research & Development | |
| YoY Change | |
| % of Gross Profit | |
| Depreciation & Amortization | $2.200M |
| YoY Change | 10.0% |
| % of Gross Profit | 3.6% |
| Operating Expenses | $54.78M |
| YoY Change | 26.05% |
| Operating Profit | $6.278M |
| YoY Change | 12.75% |
| Interest Expense | $2.045M |
| YoY Change | 29.27% |
| % of Operating Profit | 32.57% |
| Other Income/Expense, Net | |
| YoY Change | |
| Pretax Income | $4.233M |
| YoY Change | 6.2% |
| Income Tax | $1.484M |
| % Of Pretax Income | 35.06% |
| Net Earnings | $2.749M |
| YoY Change | 10.45% |
| Net Earnings / Revenue | 1.12% |
| Basic Earnings Per Share | |
| Diluted Earnings Per Share | $0.11 |
| COMMON SHARES | |
| Basic Shares Outstanding | 26.11M |
| Diluted Shares Outstanding | 25.12M |
Balance Sheet
| Concept | 2017 Q1 |
|---|---|
| SHORT-TERM ASSETS | |
| Cash & Short-Term Investments | $51.70M |
| YoY Change | 17.5% |
| Cash & Equivalents | $51.67M |
| Short-Term Investments | |
| Other Short-Term Assets | $5.000M |
| YoY Change | -72.97% |
| Inventory | $404.7M |
| Prepaid Expenses | |
| Receivables | $36.90M |
| Other Receivables | $0.00 |
| Total Short-Term Assets | $498.3M |
| YoY Change | 13.07% |
| LONG-TERM ASSETS | |
| Property, Plant & Equipment | $126.6M |
| YoY Change | 12.04% |
| Goodwill | |
| YoY Change | |
| Intangibles | |
| YoY Change | |
| Long-Term Investments | |
| YoY Change | |
| Other Assets | $48.20M |
| YoY Change | 1151.95% |
| Total Long-Term Assets | $174.8M |
| YoY Change | 29.96% |
| TOTAL ASSETS | |
| Total Short-Term Assets | $498.3M |
| Total Long-Term Assets | $174.8M |
| Total Assets | $673.1M |
| YoY Change | 17.02% |
| SHORT-TERM LIABILITIES | |
| YoY Change | |
| Accounts Payable | $24.90M |
| YoY Change | -7.78% |
| Accrued Expenses | $31.00M |
| YoY Change | 37.78% |
| Deferred Revenue | |
| YoY Change | |
| Short-Term Debt | $265.9M |
| YoY Change | 21.42% |
| Long-Term Debt Due | |
| YoY Change | |
| Total Short-Term Liabilities | $347.7M |
| YoY Change | 20.65% |
| LONG-TERM LIABILITIES | |
| Long-Term Debt | $0.00 |
| YoY Change | |
| Other Long-Term Liabilities | $4.600M |
| YoY Change | 557.14% |
| Total Long-Term Liabilities | $4.600M |
| YoY Change | 557.14% |
| TOTAL LIABILITIES | |
| Total Short-Term Liabilities | $347.7M |
| Total Long-Term Liabilities | $4.600M |
| Total Liabilities | $352.3M |
| YoY Change | 21.95% |
| SHAREHOLDERS EQUITY | |
| Retained Earnings | |
| YoY Change | |
| Common Stock | |
| YoY Change | |
| Preferred Stock | |
| YoY Change | |
| Treasury Stock (at cost) | |
| YoY Change | |
| Treasury Stock Shares | |
| Shareholders Equity | $320.8M |
| YoY Change | |
| Total Liabilities & Shareholders Equity | $673.1M |
| YoY Change | 17.02% |
Cashflow Statement
| Concept | 2017 Q1 |
|---|---|
| OPERATING ACTIVITIES | |
| Net Income | $2.749M |
| YoY Change | 10.45% |
| Depreciation, Depletion And Amortization | $2.200M |
| YoY Change | 10.0% |
| Cash From Operating Activities | $900.0K |
| YoY Change | -57.14% |
| INVESTING ACTIVITIES | |
| Capital Expenditures | -$4.300M |
| YoY Change | 48.28% |
| Acquisitions | |
| YoY Change | |
| Other Investing Activities | -$18.70M |
| YoY Change | 101.08% |
| Cash From Investing Activities | -$23.00M |
| YoY Change | 90.08% |
| FINANCING ACTIVITIES | |
| Cash Dividend Paid | |
| YoY Change | |
| Common Stock Issuance & Retirement, Net | |
| YoY Change | |
| Debt Paid & Issued, Net | |
| YoY Change | |
| Cash From Financing Activities | 36.70M |
| YoY Change | 27.43% |
| NET CHANGE | |
| Cash From Operating Activities | 900.0K |
| Cash From Investing Activities | -23.00M |
| Cash From Financing Activities | 36.70M |
| Net Change In Cash | 14.60M |
| YoY Change | -22.34% |
| FREE CASH FLOW | |
| Cash From Operating Activities | $900.0K |
| Capital Expenditures | -$4.300M |
| Free Cash Flow | $5.200M |
| YoY Change | 4.0% |
Facts In Submission
| Frame | Concept Type | Concept / XBRL Key | Value | Unit |
|---|---|---|---|---|
| us-gaap |
Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
|
-63000 | ||
| hzo |
Gain Loss On Insurance Settlements
GainLossOnInsuranceSettlements
|
906000 | ||
| us-gaap |
Proceeds From Insurance Settlement Operating Activities
ProceedsFromInsuranceSettlementOperatingActivities
|
1849000 | ||
| us-gaap |
Share Based Compensation
ShareBasedCompensation
|
3321000 | ||
| us-gaap |
Share Based Compensation
ShareBasedCompensation
|
3209000 | ||
| us-gaap |
Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
|
12014000 | ||
| us-gaap |
Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
|
12638000 | ||
| us-gaap |
Increase Decrease In Inventories
IncreaseDecreaseInInventories
|
60492000 | ||
| us-gaap |
Increase Decrease In Inventories
IncreaseDecreaseInInventories
|
20129000 | ||
| us-gaap |
Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
|
145000 | ||
| us-gaap |
Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
|
-602000 | ||
| us-gaap |
Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
|
15330000 | ||
| us-gaap |
Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
|
-8545000 | ||
| us-gaap |
Increase Decrease In Customer Deposits
IncreaseDecreaseInCustomerDeposits
|
-4477000 | ||
| us-gaap |
Increase Decrease In Customer Deposits
IncreaseDecreaseInCustomerDeposits
|
-1099000 | ||
| hzo |
Increase Decrease In Accrued Expenses And Long Term Liabilities
IncreaseDecreaseInAccruedExpensesAndLongTermLiabilities
|
3896000 | ||
| hzo |
Increase Decrease In Accrued Expenses And Long Term Liabilities
IncreaseDecreaseInAccruedExpensesAndLongTermLiabilities
|
470000 | ||
| us-gaap |
Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
|
-42338000 | ||
| us-gaap |
Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
|
-19370000 | ||
| us-gaap |
Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
|
8693000 | ||
| us-gaap |
Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
|
7203000 | ||
| us-gaap |
Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
|
646000 | ||
| us-gaap |
Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
|
18725000 | ||
| us-gaap |
Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
|
2085000 | ||
| hzo |
Proceeds From Sale Of Property And Equipment And Assets Held For Sale
ProceedsFromSaleOfPropertyAndEquipmentAndAssetsHeldForSale
|
824000 | ||
| hzo |
Proceeds From Sale Of Property And Equipment And Assets Held For Sale
ProceedsFromSaleOfPropertyAndEquipmentAndAssetsHeldForSale
|
130000 | ||
| us-gaap |
Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
|
-26594000 | ||
| us-gaap |
Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
|
-8512000 | ||
| us-gaap |
Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
|
82562000 | ||
| us-gaap |
Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
|
42825000 | ||
| us-gaap |
Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
|
2034000 | ||
| us-gaap |
Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
|
3947000 | ||
| hzo |
Contingent Acquisition Consideration Payments
ContingentAcquisitionConsiderationPayments
|
150000 | ||
| hzo |
Contingent Acquisition Consideration Payments
ContingentAcquisitionConsiderationPayments
|
2926000 | ||
| us-gaap |
Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
|
87000 | ||
| us-gaap |
Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
|
118000 | ||
| us-gaap |
Payments For Repurchase Of Equity
PaymentsForRepurchaseOfEquity
|
2342000 | ||
| us-gaap |
Payments For Repurchase Of Equity
PaymentsForRepurchaseOfEquity
|
695000 | ||
| us-gaap |
Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
|
82017000 | ||
| us-gaap |
Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
|
43033000 | ||
| us-gaap |
Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
|
13085000 | ||
| us-gaap |
Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
|
15151000 | ||
| CY2016Q3 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
38585000 | |
| CY2017Q1 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
51670000 | |
| us-gaap |
Interest Paid
InterestPaid
|
3808000 | ||
| us-gaap |
Interest Paid
InterestPaid
|
6304000 | ||
| us-gaap |
Income Taxes Paid
IncomeTaxesPaid
|
100000 | ||
| us-gaap |
Income Taxes Paid
IncomeTaxesPaid
|
2565000 | ||
| us-gaap |
Nature Of Operations
NatureOfOperations
|
<div> <div align="left"> <table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;"> <tr> <td valign="top" style="width:4.54%;white-space:nowrap"> <p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">1.</font></p></td> <td valign="top"> <p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">COMPANY BACKGROUND:</p></td></tr></table></div> <p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are the largest recreational boat and yacht retailer in the United 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 also offer the charter of power and sailing yachts in the British Virgin Islands. As of March 31, 2018, we operated through 63 retail locations in 16 states, consisting of Alabama, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina and Texas. Our MarineMax Vacations operation maintains a facility in Tortola, British Virgin Islands.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are the nation’s largest retailer of Sea Ray and Boston Whaler recreational boats and yachts, which are manufactured by Brunswick Corporation (“Brunswick”). Sales of new Brunswick boats accounted for approximately 42% of our revenue in fiscal 2017. Sales of new Sea Ray and Boston Whaler boats, both divisions of Brunswick, accounted for approximately 23% and 17%, respectively, of our revenue in fiscal 2017. Brunswick is a world leading manufacturer of marine products and marine engines. We believe we represented approximately 55% of Brunswick’s Sea Ray boat sales, during our fiscal 2017.</p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have dealership agreements with Sea Ray, Boston Whaler, Harris, Meridian, and Mercury Marine, all subsidiaries or divisions of Brunswick. We also have dealer agreements with Italy-based Azimut-Benetti Group’s product line for Azimut Yachts. These agreements allow us to purchase, stock, sell, and service these manufacturers’ boats and products. These agreements also allow us to use these manufacturers’ names, trade symbols, and intellectual properties in our operations. </p> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have multi-year dealer agreements with Brunswick covering Sea Ray products that appoint us as the exclusive dealer of Sea Ray boats in our geographic markets. We are the exclusive dealer for Boston Whaler through multi-year dealer agreements 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 9% of our revenue in fiscal 2017. 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="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As is typical in the industry, we deal with most of our 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="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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 53%, 55%, and 55% of our revenue during fiscal 2015, 2016, and 2017, respectively, can have a major impact on our operations. Local influences, such as corporate downsizing, military base closings, inclement weather such as Hurricane Sandy in 2012 or Hurricanes Harvey and Irma in 2017, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico in 2010, also could adversely affect, and in certain instances have adversely affected, our operations in certain markets.</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-size:12pt;"> </p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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 is likely to have a negative effect on our business.</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-size:12pt;"> </p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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 and industry for several years after fiscal 2007. 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 accelerate our growth through these strategies as economic conditions continue to improve. However, we cannot predict the length of unfavorable economic or industry 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.</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:9pt;"> </p></div> | ||
| us-gaap |
Use Of Estimates
UseOfEstimates
|
<div> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:4.54%;">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 as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant 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> | ||
| CY2017Q3 | us-gaap |
Inventory Valuation Reserves
InventoryValuationReserves
|
1800000 | |
| us-gaap |
Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
|
0 | ||
| CY2017Q3 | us-gaap |
Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
|
246000 | |
| CY2017Q1 | us-gaap |
Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
|
0.351 | |
| CY2018Q1 | us-gaap |
Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
|
0.207 | |
| us-gaap |
Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
|
0.381 | ||
| CY2017Q4 | us-gaap |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
|
0.35 | |
| CY2018Q1 | us-gaap |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
|
0.21 | |
| hzo |
Inventory Financing Additional Available Borrowings
InventoryFinancingAdditionalAvailableBorrowings
|
23000000 | ||
| CY2018Q1 | us-gaap |
Long Term Debt
LongTermDebt
|
0 | |
| us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
|
0 | ||
| us-gaap |
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
|
0 |
