MarineMax reports lower Q4 earnings, issues cautious outlook
MarineMax owns superyacht brands Fraser Yachts and Northrop & Johnson.
Florida-based recreational boat and yacht retailer MarineMax reported its fourth-quarter revenue decreased by 5% to $563.1m, down from $594.6m in the same period of the previous year.
The company attributed this decline to the temporary closure of boat and yacht insurance markets in Florida as Hurricane Helene approached, leading to a 5% decrease in comparable same-store sales.
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“As previously disclosed, the effects of Hurricane Helene significantly impacted our fourth-quarter results, causing damage and disruption to a number of our locations along the west coast of Florida. Hurricane Milton has exacerbated the damage,” said Brett McGill, chief executive officer and president of MarineMax.
“Despite their personal challenges in the wake of these storms, our team has been assisting customers while simultaneously reopening our stores. Our Sarasota location, which sustained significant damage from Hurricane Milton, also is open and operating except for the marina, which requires additional repairs.”
Expense reduction
Gross profit for the quarter decreased to $193.2m, down from $203.7m in the prior-year period. Despite lower boat margins and revenue, the gross profit margin remained steady at 34.3%, driven by increased contributions from higher-margin businesses like finance and insurance, marinas and the superyacht division, which includes Fraser Yachts and Northrop & Johnson.
Selling, general and administrative (SG&A) expenses increased to $166.4m, or 29.5% of revenue, compared with $169.4m, or 28.5% of revenue, in the same period last year.
Bottom line shrank significantly to $4.0m, or $0.17 per diluted share, compared to $15.1m, or $0.67 per diluted share, in the same period of the previous year.
Based on the impact of recent hurricanes, current business conditions and other factors, MarineMax expects fiscal year 2025 Adjusted Net Income to be in the range of $1.80 to $2.80 per diluted share, and adjusted EBITDA to be in the range of $150m to $180m.
“As part of our long-term improvement plan, we implemented further strategic cost-cutting actions during the fourth quarter, including consolidating certain retail locations,” McGill said.
“Expense reduction remains a focus in fiscal 2025, with the goal of driving improved operating leverage.”
