Consolidated gross margins were above expectations

MarineMax reported a 23% increase in fourth-quarter revenues to US$309m over the same period last year, and fiscal 2018 revenue up 12% to nearly US$1.2bn.

Net income for the quarter ended 30 September 2018 was US$11.5m, or US$0.50 per diluted share, compared to net income of US$3.9m, or US$0.17 per diluted share in the comparable period last year.

Same stores sales for the quarter improved 22%, and 10% annually, both on top of 5% growth for the same period a year ago.

“The MarineMax team delivered a very strong fourth quarter,” said MarineMax president and CEO Brett McGill in a statement. “Considering that the mix of sales in the quarter was skewed toward larger yachts, we delivered consolidated gross margins that were above our expectations.”

Included in the quarter was US$1.4m of adjustments before taxes related to obligation estimates associated with acquisitions made by the company in prior years, which reduced expenses. Included in the same quarter last year was $2.9m of unusual expenses associated with Hurricane Irma.

Net income for the fiscal year was $39.3m, or $1.71 per diluted share, compared to net income of $23.5m, or $0.95 per diluted share, in the prior year. Excluding the unusual items in both periods, adjusted net income rose 58% to $39.1m, and diluted earnings per share rose 70% to $1.70, compared to $24.8m, or $1.00 per diluted share, in the prior year.

Based on current business conditions, retail trends and other factors, the company expects fully taxed earnings per diluted share to be in the range of $1.85 to $1.95 for fiscal 2019, compared to $1.70 in fiscal 2018.

“Our strong 2018 results reduced our inventory levels as we planned and added meaningful strength to our already formidable balance sheet,” McGill said. “We are well-positioned to take advantage of opportunities as they arise. Our focus will remain on growing our higher-margin businesses as we take advantage of new innovative products we are receiving to drive sales, margins and earnings growth while we build additional shareholder value.”