MARINEMAX INC Q4 FY2024 earnings call

• Impact of hurricanes: Florida West Coast retail locations were damaged but most returned to normal; Sarasota store partially open with marina needing repair. Midcoast Marine Group helped with quick turnaround. - Performance in 2024: Revenue up 2%, comparable store sales up 1% despite retail softness and elevated inventory. Maintained 34% gross margin. - Investments: Made in technology, training, service, and retail locations; relationships with manufacturing partners. - Acquisitions and appointments: Appointed Steve English as CEO of IGY; acquired rights to Aviara brand; completed 20 acquisitions over 5 years totaling ~$700M high-margin revenue. - Operational strategies: Streamlining store network, leveraging best practices, developing new technology tools to boost efficiency.

Fiscal 2024 revenue increased approximately 2% to $2.4 billion, with a 1% increase in comparable store sales (absent Hurricane Helene, comparable store sales was on target to be modestly higher). Gross margin in the fourth quarter was 34%, reflecting higher-margin businesses like finance and insurance, IGY, marina portfolio, and superyacht division. Fourth quarter revenue was $563 million, down 5% in same-store sales due to Hurricane Helene. Full-year revenue was $2.4 billion, adjusted net income was $49.1 million or $2.13 per diluted share, and full-year adjusted EBITDA was $160.2 million.

• Industry unit trends in fiscal 2025 expected to be flat. Same-store sales in fiscal 2025 expected to be essentially flat. - Expect to maintain consolidated margins in the low 30s but note boat margins likely under pressure in winter months. - Fiscal 2025 adjusted EBITDA expected in range of $150 million to $180 million, adjusted net income in range of $1.80 to $2.80 per diluted share. - Caution on December quarter due to hurricanes, and October likely to finish behind last year's October.

• Impact of seasonality and weather. - Global economic conditions and consumer spending level. - Company's ability to capitalize on opportunities or grow market share. - Inventory levels and their impact on margins. - Insurance market closure affecting sales process.

Q: Thoughts on capital allocation and M&A pipeline.

A: Looking at various opportunities, pipeline is full. Focus on IGY Marinas acquisitions and enhancing portfolio. Dealership business is tough, but active in international opportunities for superyacht/IGY side.

Q: Service side of business and growth opportunity if boat sales remain low.

A: Service offerings range from better services at facilities to marina and superyacht services (brokering, management, chartering). Set up well for higher net-worth consumer, resilient in down industry, with upside in straight boat servicing but constrained by facilities.