financial management class
Historical Performance
Revenue Analysis
2017 - 2018
The chart above illustrates that from 2017 to 2018 MarineMax showing a net revenue increase of 1.112% compared to the fiscal year 2016. The increase is primarily due to a 28% increase in same-store sales growth. “Our strong same-store sales growth was supported by an increase in larger yacht sales, which traditionally carry lower gross margins, impacting our consolidated margins. Historically, when this has occurred, we get good operating expense leverage, resulting in strong earnings growth, like we experienced this quarter," said McGill. Gross profit increased $32.9 million, or 12.4%, to $298.2 million for the fiscal year ended September 30, 2018 from $265.3 million for the fiscal year ended September 30, 2017. Gross profit as a percentage of revenue increased to 25.3% for the fiscal year ended September 30, 2018 from 25.2% for the fiscal year ended September 30, 2017. MarineMax says it is positioned to benefit from an enhanced presence in the strong Southeastern boating region of North and South Carolina along with Georgia as a result of the recent acquisition of Hall Marine. This acquisition complements MarineMax's 2016 acquisition of Russo Marine in the New England area.
2018-2019
The chart illustrates an increase of 0.06M, a 5.08% growth from 2018-2019. This increase was attributable to a 1% increase in comparable-store sales and an approximate $44.4M net increase related to stores opened or closed that were not eligible for inclusion in the comparable-store base. The comparable-store sales is mainly due to incremental increases with new and used boat sales and storage services finance and insurance products, service revenue, as well as parts revenue. Interest expense increased $1.7 million, or 16.9%, to $11.6 million. Gross profit increased 8.2%, or $24.6M. The increase in gross profit as a percentage of revenue was primarily the result of increases to higher margins businesses and from the acquisition of the Fraser Yachts Group because the sales generated by Fraser relating to its services tend to be of higher margins relative to our overall business. The increase in gross profit dollars was primarily attributable to the increase in our gross margins and increased boat sales, says marinemax’s 2018 10-K report. Selling, general and administrative expenses increased $27.3 million, or 11.6%, to $262.3 million for the fiscal year ended September 30, 2019. The increase in selling, general and administrative expenses was primarily attributable to recent acquisitions including the Fraser Yachts Group, new store openings, additional marketing expenses to drive sales growth, and the reestablishing of our british Virgin islands’ Charter business as the business restarted operations after Hurricane irma, which occurred in September 2017.
2019-2020
As illustrated in the chart above, there was a revenue increase of $272.6 million, or 22.0%, to approximately $1.510 billion for the fiscal year ended September 30, 2020 according to the 2020 10-K report. “Attributable to a 25% increase in comparable-store sales and an approximate $18.4 million net decrease related to stores opened or closed that were not eligible for inclusion in the comparable-store base”, stated the 2020 10-K report. The increase in the comparable-store sales was mainly due to incremental increases in new and used boat sales and incremental increases in storage services, finance and insurance products, and brokerage sales. Having an improved industry condition in the seasonal summer months contributed to MarineMax’s growth. Their gross profit increased by $75.9 million, or 23.5%, to $398.7 million for the fiscal year ended September 30, 2020 from $322.8 million for the fiscal year ended September 30, 2019. Gross profit increased to 26.4% for the fiscal year ended September 30, 2020 from 26.1% for the fiscal year ending on September 30, 2019. The increase is due to increases with their higher margins businesses and from the acquisition of the Fraser Yachts Group and Northrop & Johnson because the sales generated by Fraser and Northrop & Johnson relating to their services tend to be of higher margins relative to their overall business. The increase was primarily attributable to the increase in their gross margins and increased boat sales. Selling, general and administrative expenses increased $29.7 million, or 11.3%, to $292.0 million for the fiscal year ended September 30, 2020 from $262.3 million for the fiscal year ended September 30, 2019.
2020-2021
MarineMax’s revenue increased by $553.5 million, or 36.7%, to approximately $2.063 billion for the fiscal year ended September 30, 2021 from $1.510 billion for the fiscal year ended September 30, 2020. $202.9 million was a result of a 13.4% increase in comparable- store sales and an approximate $350.6 million net increase was related to stores opened, including acquired, or closed that were not eligible for inclusion in the comparable-store base, states the 2021 10-K report. The increase in MareineMax’s comparable-store sales was a result of demand driven increases in new and used boat revenue and our higher margin finance and insurance products, brokerage, parts, service, and storage services. There was a gross profit increase of $260.7 million, or 65.4%, to $659.4 million for the fiscal year ended September 30, 2021 from $398.7 million for the fiscal year ended September 30, 2020. As a percentage of revenue increased to 32.0% for the fiscal year ended September 30, 2021 from 26.4% for the fiscal year ended September 30, 2020. The increase is thanks to demand driven price increases resulting in greater new and used boat margins and increases in our higher margin businesses, including MarineMax’s superyacht-services companies, as a percentage of sales. The increase in gross profit dollars was primarily attributable to increased new and used boat sales. Selling, general and administrative expenses increased $158.0 million, or 54.1%, to $450.0 million for the fiscal year ended September 30, 2021 from $292.0 million for the fiscal year ended September 30, 2020. Expenses in this category increased as a percentage of revenue to 21.8% for the fiscal year ended September 30, 2021 from 19.3% for the fiscal year ended September 30, 2020. Interest expense decreased $5.6 million, or 60.2%, to $3.7 million for the fiscal year ended September 30, 2021, from $9.3 million for the fiscal year ended September 30, 2020. Interest expense as a percentage of revenue decreased to 0.2% for the fiscal year ended September 30, 2021, from 0.6% for the fiscal year ended September 30, 2020. The decrease in interest expense was primarily the result of decreased borrowings.
Market Share Analysis
2017
The graph above illustrates the market share for MarineMax determined through analyzing the U.S. boating industries retail sector. Their market cap in 2017 was $0.41 B. One of Marinemax’s strategies to continue to market share growth is to capitalize on the importance of consolidation possibilities in the very much fragmented recreational boating industry, doing so by adopting independent dealers, improving their performance, along with profits by efforts of implementing operating strategies. Focus is on stable, top of the line recreational boat dealers not already getting serviced by MarineMax. Also looking to acquire boat dealers that have been lacking in profitability and market share who would see MarineMax as a beneficial opportunity because of their systems and operating strategies. In the 2017 10-K report MarineMax reported the potential of expansion within product lines, services, and market penetration.
2018
MarineMax has a market cap of $469.410 million with shares benign traded at approximately $20.85 with a P/E ratio of 12.19 and P/S ratio of 0.44. MarineMax has seen an annual EBITDA growth average of 31.50% within the past 5 years, says the MarineMax 2018 10-K report.
2019
MarineMax ended the year 2019 with a market cap value of $0.35 B with an outstanding 33 M shares. There were significant quarterly changes to the highs and lows of the sale prices of the common stock indicated on the New York Stock exchange. In the first quarter there was a high of $26.11 and a low of $16.57, second quarter high was $19.99 and a low of $15.34, third quarter resulted in a high of $17.33 and a low of $13.73, and ending the year in quarter four with a high of $18.76 and a low of $14.56.
2020
Past economic conditions have been an obstacle for MarineMax’s operating results and they predict that after such a disrail MarineMax will capitalize on their companies main strengths. Their strengths are sustainability and outperform the industry, leading to market share growth. They are able to maintain the support of the market share due to their retailing strategies with specific consumers. In 2020 their market cap was $0.77 B with an outstanding 22 M shares. The 10 k report states that acquisitions remain a top strategic strategy for the company, not ignoring a few conditions such as macroeconomic conditions and well-fitting acquisition targets, when looked further into will bring more opportunities.