Disclaimer · Per Diluted Share** $1.70 $1.00 Revenue grew 12% - same-store sales up 10% Gross...
Transcript of Disclaimer · Per Diluted Share** $1.70 $1.00 Revenue grew 12% - same-store sales up 10% Gross...
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Information contained in this presentation, other than historical information, should beconsidered forward-looking and subject to various risks, uncertainties and assumptions. Shouldone or more of these risks or uncertainties materialize, or should underlying assumptions proveincorrect, actual results may vary materially from those anticipated, estimated or expected.Among the key factors that may have a direct bearing on the operating results, performance andfinancial condition of the Company are the general economic environment, which has and cangreatly impact the marine industry; the availability and cost of borrowed funds; the level ofconsumer spending and available financing; continued availability of key products; and otherfactors discussed in MarineMax's filings with the Securities and Exchange Commission.
Disclaimer
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Investment Highlights
Largest Retailer in a Highly Fragmented Industry
Industry Recovery is Broadening
Customer Service Strategy Producing Leading Market Share
Exclusive Agreements with Premier Manufacturers
Experienced and Proven Management Team
Considerable Financial Strength
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Company Snapshot
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World’s Largest Boat and Yacht Retailer
63 Locations Operating in 16 States and the British Virgin Islands
Premium Brands – Spanning 11 Feet to Over 200 Feet
Broad, Protected Territories
Unparalleled Approach To Customer Service
Passionate Customers & Team –Committed to the Boating Lifestyle
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19’ – 40’
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20’ – 25’
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Boston Whaler 11–
42FT
11’ – 42’
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50’ – 155’
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40’ – 125’
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20 ‘ – 25’
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• Added 2016• European built• Highly innovative (i.e., folding sides/rotating rear seat)• High quality - compliments existing brands
30’ – 78’
30’- 68’
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Developed by MarineMax – For Charter Worldwide Distribution Rights (excluding China) – Private sales - accelerating
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18’ – 45’
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17.5’ – 42’
Differentiated Approach
“Teach Me” Sales team are boaters Demo rides Captains Women On Water Children in Boating
“Service Me” Proactive Mobile Emergency
“Show me how to Have Fun” Getaways! Trips Customer Events (over 1,000 events last year)
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MarineMax Getaways!
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Significant Brand/Segment Expansion –Driving Growth
Azimut (Yachts) 2008 – Florida 2009 – Carolina’s, Georgia, Tennessee 2011 – California 2012 – Entire United States
Meridian (Yachts) 2009 – Chesapeake, San Diego
Boston Whaler (Premium Fish) 2009 – Southwest Florida 2011 – Ft. Lauderdale 2014 – Minnesota
Harris (Pontoon) 2010 – Minnesota, New Jersey 2011 – West Central Florida 2012 – Alabama, North and Southwest
Florida, North Carolina, Texas
Nautique (Ski, Wake, Wakesurf) 2010 – Minnesota 2011 – Missouri 2012 – Tampa Bay Florida
Scout (Premium Fish) 2012 – Southeast Florida 2012 – New Jersey/Maryland 2014 – Texas & New York
Sailfish (Value Fish) 2013 – All Saltwater Markets
Scarab (Jet boat) 2013 – All Our Markets
Aquila (Catamaran) 2013 – Worldwide (excluding China)
Ocean Alexander (Yachts) 2014 – From Texas East
Galeon Yachts (Value Yachts) 2016 – North, Central, South America
Grady White2017 – Dade County, Florida
NauticStar2018 – Select Midwest and Southeast Markets
Tige'2018 – Oklahoma, Florida, Georgia
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Industry Volume
1990 - 2006Average 309,000
2017199,100
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
U.S. Industry Retail Powerboats (1990 – 2017)
Steady recovery driven by new models
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Potential Market Size –Based on Replacement Demand
Pro Forma Annual(Obsolescence)
Replacement Demand
Average LifeExpectancyRegistered Boats
9,500,000 Units 271,000 – 317,00030 – 35 Years
Implies 60% unit upside over time
Modest growth provides significant earnings growth potential
Market Expansion Opportunities
$700MM
$900MM
$460MM
$1.7B
$750MM
$500MM
$650MM
$900MM
Original CompanyAcquisitions/New Stores
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Russo MarineApril 2016
Hall Marine GroupJanuary 2017
Island MarineJanuary 2018
Bay Pointe MarinaSeptember 2018
Multiple Growth Opportunities
Capitalize on improving industry conditions - grow same-store sales
Continue with brand expansions within our markets
Focus on growing our higher margin businesses - F&I, Service, Storage etc.
Adjust to changing consumer desires
Growth in outboard, jet, pontoon
Acquisitions
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Financial Overview
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Significant tangible net worth, despite industry downturn- Approximately $326 million - $14.14/Share
No long-term debt- Only debt is inventory financing
Own many of our locations debt free (mostly waterfront or highway)- Fair value exceeds carrying amount
Significant growth in earnings from recent industry recovery
Financial Highlights
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September Quarter Recap
September 2018 September 2017
Revenue $308.6M $250.6M
Gross Margin 25.6% 26.5%
SG&A* $63.5M $55.7M
Adjusted Pretax* $13.5M $8.6M
Per Diluted Share** $0.45 $0.22
Strong revenue growth 22% same-store-sales growth
Mix shift to larger product 57% increase in pretax earnings Adjusted EPS grew 105% to $0.45
* Excluding unusual items** Removes unusual items and proforma’s 2017 tax provisions
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Fiscal Year Recap
September 2018 September 2017
Revenue $1,117.4M $1,052.3M
Gross Margin 25.3% 25.2%
SG&A* $235.3M $217.2M
Adjusted Pretax* $53.0M $40.7M
Per Diluted Share** $1.70 $1.00
Revenue grew 12% - same-store sales up 10% Gross margins expand for third year Adjusted Pretax earnings grew 30% Net income increased 58% to $39.1 million Adjusted EPS grew over 70% to $1.70
* Excluding unusual items** Removes unusual items and proforma’s 2017 tax provision
$450,000
$550,000
$650,000
$750,000
$850,000
$950,000
$1,050,000
$1,150,000
$1,250,000
2012 2013 2014 2015 2016 2017 2018
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Great Growth As Recovery Takes Hold
$524,456
$584,497$624,692
$751,366
$942,050
Growth Through: Brand Expansions Market Share Gaines New Models $1,052,320
$1,177,371
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$20,000
$30,000
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2012 2013 2014 2015 2016 2017 2018
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Note: Unusual gains and expenses removed from 2014, 2015 and 2018, and Hurricane Irma expenses from 2017
Fiscal Year Pretax Growth
Profits increased over 30% from 2017 With potential for industry growth, outlook
is very encouraging
$9,805
$2,330$923
$19,250
$34,790
$40,670
$53,040
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Used Boat Sales
14.8%New Boat Sales
71.2%
Parts &
Accessories
3.6%
Service, Repairs & Storage
6.2%
Finance &
Insurance Fees
2.4% Brokerage Fees1.8%
Fiscal Year 2018 Revenue Mix
Mix has shifted to greater % of higher margin business; 12.9% in 2007 and 14.0% in 2018
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Industry Leading Balance Sheet-Highlights
September 2018 September 2017
Cash $48.8M $42.0M
Inventories, net $377.1M $401.3M
Property and Equipment, net $138.7M $127.2M
Short-Term Borrowings $212.9M $254.2M
Stockholders’ Equity ($326M Tangible Net Worth) $353.1M $302.2M
Current Ratio 1.63 1.42
Total Liabilities / Total Net Worth 0.88 1.22
Inventory in good shape – fresh product No debt other than traditional inventory floor plan financing Strong level of TNW – $14.14 per diluted share Financial strength provides competitive advantage and allows us to
take advantage of opportunities as they arise
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Investment Highlights
Largest Retailer in a Highly Fragmented Industry
Industry Recovery is Broadening
Ability To Increase Profits Thru Improved Gross Margins and Leverage
Exclusive Agreements with Premier Manufacturers
Experienced and Proven Management Team
Considerable Financial Strength