HZO - Earnings call transcript Q1 2025

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Operator

Good morning, and welcome to the MarineMax, Inc. Fiscal 2025 First Quarter Conference Call. Today's call is being recorded. [Operator Instructions]. I would now like to turn the call over to Scott Solomon of the company's Investor Relations, Sharon Merrill Advisors. Please go ahead, sir.

Scott Solomon

you us. thank and morning, for joining Good Hosting Officer the and are Brett company's Chief Executive McGill, MarineMax's, President; Financial today's Officer. call Chief and Mike McLamb, discussing Brett operating call begin by will highlights. the MarineMax's to the financial then be Mike will take results questions. review your management and will happy found release presentation be earnings today's announcement associated The investor.marinemax.com. with and can supplemental at

that, turn the I'll call Mike? With over to Mike.

Michael McLamb

include, our I'd Scott. comments like defined Private thank speak risks factors numerous this Any but and opportunities These you that you, risks today. consumer Commission. capitalize for and that Exchange as other These and expectations. certain forward-looking statements or are filings of forward-looking of Good you are limited spending, and everyone, to uncertainties of its the start cause the statements by from and our to Securities materially could results call. global the Act market morning, by Litigation differ statements the weather, other and reminding level to, Thank Form of Securities seasonality involve as on with XX-K joining identified the grow only Reform conditions in impact economic XXXX. actual and of ability not company's to share

to comparable MarineMax measures GAAP other a reconciliation today's and in of understanding metrics results. will financial help the The on wish inclusion also comparisons those operating We meaningful believe investors GAAP release. on changes companies to of helps core make non-GAAP investors who directly that in a company's These these call, both Also of available today's non-GAAP we make measures and a is gain the referring the earnings comments to financial measures. can financial measures basis. between non-GAAP

that, let Brett. call me to With over Brett? the turn

Bill McGill

and everyone, for Good us. you you, Mike. joining morning, thank Thank

of moment serving Helene into a focused our details a our customers fiscal across hurricane the result many their portion a cleanup as the of to of to aspect Hurricane spent commitment and Before and from of locations every quarter, on our ended fair the year our quarter the let restoration of the take XXXX, fiscal we get repeating Milton. exceptional process of of our commend first business. for We me the team

We efforts are grateful for to team the storms, continue own caused demonstrated, lives as the many and by our has disruptions communities. extraordinary their even navigate the

revenue across Operationally, strained demand space. with the combination and recreation the December was the of hurricanes the soft outdoor quarter retail

was lighter tenuous shortfall Florida. economic seem same-store XX% anticipated, that, of a result we to line top say that in the disruption the remained was on data in persistent It's the bit the how environment, the entire the largely came to climate. than QX given state that mixed from the decrease and impactful. have potential geopolitical except a precisely buyers were the versus it inflation had While isn't of much that the sidelines dissect does of hurricanes surprising both to it difficult macroeconomic said Having uncertainty sales the

opportunities effectively premium By to market are and and services fighting those challenges demand navigate brands, from apart. loyalty of customers, top-tier segment boat characterized to tailored often sets presence exclusive these advantage as improvements. resilient positioned retail premium market immune take our more not this during faster headwinds, products customer us and our strategically category growth high-value the rebounds. by Although demand the segment strong recovers was we in This of

in the Two impressive in over light in which Gross $X.XX the market. particularly retail quarter, margin factors drove was underlying of increase. came at the

margin. seen noting higher-margin that a that And driving from sales; we gross revenue businesses. growth time, XXXX. worth First, from over the our promotional strategic environment It's significantly in has on and mix second, nonboat have and our our grown measured of increase focus

including higher-margin us services, streams. services with super and durable more continued and well Our margin yacht provide and finance to insurance businesses, perform brokerage Marinas,

quarter spotlight our of our and To insulate as our decline higher business financial related adjusted a our results million last consistent December revenue, the challenged that margins compared a diversification success environment, in helped hurricanes point, with year. nearly reflected the strategy. $XX in EBITDA Despite

certainly building expense but businesses. initiatives Our contributed, is the contribution higher-margin primary from the profit block our

will to business, side On the focused reduce of seek areas continuing costs. expense improving on are the to Mike as discuss, and efficiencies we

further significant We remain have improvements. made pursuing focused and progress on

our to our stores Turning with Yachts Cruisers of recently expanded other Many brand. highlights.

our Cruisers the key and feature West in regions This Southern ] debuted Boat range Show. Texas, Forrestania the of FLY, in which all stores Lauderdale includes at Now recently of Yachts. full [ will the Florida the U.S., XX including Fort

brand's boats recently Intrepid of President. brand decades the its brand's as McNew more addition, our than and Terry's industry vision build Terry and to at power boats brings enhanced appointment delivering X the marine will roles MasterCraft. Terry Brunswick with leadership upon continued executive power our in In success experience foundation including drive Intrepid, and of to the customers. Intrepid's strong world-class leadership help

is increasingly English open work what new are Marinas' and Marinas, also is the captains Yacht space our allowing the believe in the as recognition -- priority of is want of world's we exclusive spotlight to more team and Harbor and the which the and Super brand. access of to the scheduled and nearing of IGY I Membership Steve global especially March. of IGY also premier dockage continuing the Savannah owners IGY benefits Trident at the Marina, completion to Steve growing, enjoy outstanding to world's scarce. expand program in becomes dock guaranteed some team bring

more to the across that synergies way Innovations portfolio. drive Wave technological with will lead our advancement New continues

platforms. advantage the and our in market with innovation continue We a gain technology to strategic

let And me Mike? the for with to Mike that, call the turn review. back financial

Michael McLamb

I team current the Brett, about challenges our navigating storms. Thank to of want the you, everyone. market good the Brett's of and again, echo resilience morning in sentiments the and

impact for month registration the in X the reflected to line continued challenges facing. Brett quarter hurricanes are we both in reflect environment. industry retail performance softer from As each noted, data the the top The our

basis, we soft did storms expected, Although retail increased a the lows less following to on a December sequential was November, activity in than see quarter. retail the resulting and

sales while meaning mid-single-digit same-store XX%, were range, Our in down AUP the our also units down down. was were

typically larger Not Florida, sales biggest was AUP in nature, lower driver in are which the surprisingly, of the decline.

businesses. While strategy gross revenue, our declined due as dollars to expanding margin pointed gross absolute our benefits into lower profit the in was reflecting out, from healthy, of higher-margin Brett

the we is to consideration. As $XX.X IGY. million Much related of through keep reconciliation of value results that mind adjustment GAAP the statement, a earnout in income from an our the go fair contingent to gain from the include gain

have IGY and to with performance. we calls, pleased said prior perform on our overall As well, very continues we are

and predefined certain However, contingent fluctuate consideration based on quantitative the achievement milestones. liabilities can of qualitative

Excluding in both in the million. noted SG&A press the adjusted in the periods, $XXX.X items to quarter year-over-year release decreased

the our reduction our we locations footprint align designed to took to other market quarter with current strategic cost or of and consolidated operational sold efficiencies. X enhance actions our initiatives part As environment, during the and

expense As operational but and we focus in profile, see mentioned earnings call, year-end our areas, our during targeted disciplined inflation we strengthening our several management. of continue key

Hurricane characterization we have quarter, onetime Milton. ] will by million charge in the The guided. effective that the several to insurance. what In with resulting a IRS reflects write-off rate. incurred tax our foreign tax low $X we associated rate be anticipate in images our the during significantly rather compared tax to of with quarter which reduced benefit concurred was first quarter, entities we of of $X.X Income covered a which expense The effective [ large majority million a

Adjusted GAAP last per income $XX.X net year. was net the share share. $X.XX $X.X for with per million $X.XX or million was diluted diluted $X.X quarter the income for $X.XX per million share or diluted compared quarter or

million which EBITDA is adjusted $XX.X with strong was quarter a flat considering year, decrease. the of year-over-year nearly First result revenue last

with and to $XXX balance primarily the million and last the equivalents cash related timing of inventory quarter, Turning end compared year's sheet. the first to at purchases $XXX due totaled financing. Cash of million

future up inventory as current floor borrowings, lenders lower-than-expected more industry our that and than appropriate, the financing at increased whole. consists which of quarter short-term availability adjusted proven with Consistent orders deposits revenue, much to inventory, that way, of than increased. aging fresher inventory, check. plan more also to in Although the implemented where keep due inventory it anticipated and floor a declined. stays ensure have of inventories our the remains higher we end our To With plan programs note customer were

strength. quarter At cash our maintain just continue our on a net inventory focus stood we balance of our over end, With which will debt at and sheet. aging, X.Xx, financial related ongoing to healthy to highlights EBITDA

credit. inventory we in have and through available significant to additional our financial access million $XXX approximately of unencumbered Additionally, lines flexibility

we through Industry-wide, selling on The we half fiscal our of with likely fiscal fiscal with and used inventory year. flat essentially the the call continue to expect elevated as move and second into has the Promotional changed. XXXX be sales remain we with as normalizing year-end to back provided will improvement in we the quarter move activity XXXX levels not season. outlook

about flattish of conditions cautiously environment, our challenging remaining quarter, boat sales industry on were geopolitical with Although and optimistic in improved same-store show expected are in year-over-year the we the basis. a start the season clarity the

our million diluted adjusted $X.XX $X.XX We $XXX of the $XXX range range income expect EBITDA targeted of share. to within net adjusted to in million with per

do XX% not other range in for forecast give consider weather effect we to other or continue material for, in economic changes we expectations unforeseen including the global the fiscal things, addition, In events, acquisitions margins These complete may consolidated that and among year. conditions. low gross

prior is of January encouraging, the expecting business smallest the to current typically we March January quarter. the mind up be at are in What conditions, month it's year. is revenue Looking over important to that keep

Brett? to call turn Brett that, closing With comments. back I'll the for over

Bill McGill

Thanks, Mike.

While that conditions Early our economic of season. as has enable and the we of we industry at and will selling we encouraging, pace been outperform within challenging, recreational the shows believe category this anticipate will year's industry us conditions move marine premium the that achieve as recover. improve retail the have the position segment growth meaningful activity activity into in spring market to the boat been

others market, the marine centers of with diverse the recreational to locations services, operations strengthening pieces drive strategic Yachts the and all and supporting our our and nature Super and continue we Marinas, of leverage the in the from of synergy. advantage business portfolio, aspect leader retail to to success. are interconnected component yet finance Every a manufacturing overall complementary is each our on As related, insurance

to customer our our enhancing We are execute confident by our on focusing strategy expanding ability growth experiences further businesses. and innovation, in higher-margin

with be Operator, your Mike please line Q&A. and open questions. that, happy take up for to the I And will

Operator

[Operator Instructions].

comes James. Altobello of question the first Joe from with Raymond Our line

Joseph Altobello

SG&A. SG&A see on guys trying where you year. was for a this sense I'm Question to get

annualization of last million about the million XX other on think seeing points I creep also to leverage seem the $XX $XX you're you imply but some to earnings with cuts, basis of of in costs. call,

QX, this So given for good we year? a saw what SG&A what's in number realistic

Michael McLamb

Good still XXXX, seeing, aiming Hi, Obviously, quarter-to-quarter that's but equal of target for. was time question. percentage last was Mike. but jumps We which the get we're about full probably retail or to what that's strong we how wraps based back basis. Joe. said is, revenue because cost a SG&A to as activity percentage year are year we this alluded overall that basis for the around increases something we that of were than XXX, as reduction. a shooting call the it up year on But where a on approximating at less a It's when it in point our inflationary XXX

I prepared but operational efficiencies of challenged we're not of that certain remarks goal we're again parts still the overall we do giving improving the in in see company. said up inflation that business the the with, think I of our

Joseph Altobello

Got it.

you are for or follow-up for market? on seen any speak seeing leaving premiums, insurance material Florida, that. marinas? a in the uptick Have market the insurers Just boats and/or Can in to you either example,

Michael McLamb

Another good question.

the wouldn't just now, have ensure us, nature the insurers, buying Florida. about is like of retail if Likewise, the all from who As dust people boats on It me the something surprise in you think not once from boats who future have. storms when the settles, in or insurance people are there the experienced we out some ensure for increase west, it also have, an fires property the risks the even impact would and market we people companies unfortunately have the that on for the of we out the fires an there, the would type think comes when that all storms the to risks way that you of

insured. our be pressures last haven't yet, call, to those earnings some there mindful on any We specific seen specific but increases we're that of some could mentioned of I the are inflationary

seeing and waiting right what we're say I'd both. on now, , So I is guess,

Joseph Altobello

Okay.

Just last one, if I could.

you rate? year benefit a for are full the tax in Given onetime what expecting QX,

Michael McLamb

We guided overall comment I'll guidance. in on Joe. the XX.X%. actually, changed that And I to just haven't that,

QX So in $X.XX the benefit quarter. about in the is

it effective didn't think we're down yet. if about impact that that a $X.XX guidance the year. it's was a because quarter. basis, of material a GAAP in on We'll scheme enough $X.XX for year, I the a rate rate adjust In So keep of overall the whole to full if to we to the see effective bring bit the need little watching adjustment,

Operator

next of comes question line Drew Stifel. Our from the with Crum

Andrew Crum

margin. So a just gross on question the adjusted

expect the the quarter closer XQ might to seem assumption if it what so, the based was margin we XX%, be for you range. performance? you thought for would in pacing And fall upside which the to and to think plus quarters? that? subsequent ahead the see drivers XX% should of believe for gross your would I XX% I year, this to on Do be Or original fiscal be where

Michael McLamb

lower question. company. margins Drew, change kind do historically like they good and It's you when the Mike. our are when June, gross March Hi, throughout comment. look volume you year. quarters Margins in higher get of into the Typically,

we improved margin pleased adjusted XX% of at know quarter. I gross adjusted we're keep as overall where the the an talk through with we guidance And point, have low And I opportunity couple -- different the margin. here, the margins. the with a there's to is range an way, That not by mentioned. But in obviously, but think the is So that's numbers pleased we're margin. we we in hopefully, this XX% that the about move as year, gross

Bill McGill

sales have of had the And the we higher from sales other that factors from comes and higher-margin I'll the a in add, the loss percentage puts when you obviously businesses. Drew, hurricanes that when quarter the

to contribution higher margin the of that you part that's So see.

Andrew Crum

it. Got

maybe then And item. housekeeping Okay. one just

basis up little you a do see and on Obviously, percentage the bit the moving a revenue. dollar a On a here. pieces interest of year? expense year-on-year. how moving of it line, of was balance that as lot over around the But

Michael McLamb

it's related Drew. is is up. primarily of and Thanks, inventory inventory financing because up the Yes,

quarter higher says again that to prepared is March the than expense have was end the begin or our have as to December opportunity inventory. come through inventory. then would out June peak be. March think to release prove and I we somewhat December as seasonally, in move going little we inventories press -- to it's we an the we the accordingly. elevated year And quarter Hopefully, expected hopefully peak And that remarks work quarter, reduce inventory is -- interest the bit down in March and a it typically, as lower and then through will

are We benefit. the getting

the just the X of remaining the obviously, getting points recent full for all which basis benefit beneficial. total reduction. in of fiscal are the for year, cuts, be the We will are that's most of of X now XXX terms in year, Not months

Operator

from Mike line with Swartz of comes Truist. question the next Our

Michael Swartz

]? I'm is across the Maybe than business between there other just outside have that [ Florida Florida, better a wondering, saw? quarter. just larger piece would the I'm In you volume words, start, industry down and it the just for regional retail been of XX% were business, December wondering your in seasonally disparities of the to

Bill McGill

what kind non-Florida you're of Florida that Is and saying asking, You're stores the between revenue. difference that Mike?

Michael Swartz

Yes.

Bill McGill

believe completely. flat come Yes, variation revenue our I'll Florida help pretty Mike, was tends out -- and non-Florida the to I here. from flat, exactly that like almost think almost me categorize I that

Michael McLamb

that, decline in Florida towards Correct. remarks during heavily said prepared quarter. was the revenue the weighted Yes. that Brett's actually

Michael Swartz

comparable outside as store on a well clarify, of flat to was Florida? it basis, just And

Michael McLamb

I'm going Yes, outside business you're sure you're it the total, year were or down, break last when to get to apart, up you regions that -- of going flat to quarter. have was in in Flota but

Michael Swartz

moving December. there of with helpful. sales margins part I in being year? relative at what of a the way terms of is a seasonality the portion lot pieces just last That's gross of stripping just the out, Okay. understanding a of profit both is all were any boat to margin in businesses of of lot kind sales that that. then But larger And non-boat and equation or appreciate looking to

Michael McLamb

I Yes, on comment can that, Joe.

on with have for us from think those perspective quarter, I remember we much very given They a who partners doing industry, pretty manufacturing environment have I XXXX. quarter, softness December the of last went this of normally were of are you'll about started we the all coming In in like don't. they year's call for -- that you got typically followed they think long a an what yet out cycle partners current would aggressive in time, year, that promotional their we lot in. A doing not alone. we're talked we last be sensed incentives the the the typically and manufacturer

there from manufacturers, it's would really more them. additional So but stress support coming I support, coming is from

So additional while last market manufacturing going we have the to partners we're versus some quarter year. this from aggressively, more help

Operator

comes Our line Fred the with from next of Wolfe question Wightman Research.

Frederick Wightman

I'm would for they mean puts have about level. higher you from we very than line. high X some thought been just would the X rates hoping think are and If or I have takes probably top a months of ago.

December environment. and retail was are above plan. choppy a about talked You've weak inventories

cautious like outlook to you top year together, when is the where optimism driving 'XX? So for full the the on that is line the Like unchanged. what put all offset keep

Michael McLamb

pretty releases the out a month what press of reflected couple largely when a month. we came good in I a was stab November decent that certain put did honestly But Lauderdale. activity of retail out There storms, had then that I that can we we take anything were of say. manufacturers Brent the repair

is And now think much terms great, that -- that activity. but up And I things how pretty activity the are all feel is they're retail hopefully, softer. say Now going from environment. with not going we was clarity at storms, down, generally of good. improved hard We're much that they're that and of in of political always is least there'll retail expectation boat be right generally the with settling to it's in there's the made that clarity December shows XXX% how

Bill McGill

dig but I didn't it, in that because business we we much was December great, that Like had getting said, were than think you happen was probably to you the I'll Mike November add just when of said tougher really anticipated. it, October. down, hurricanes

pushed rough. you So December was

hear across I And think of probably. January. these into commented months that but And you'll it's are important January, commented that shows. a where looking we I up then lot industries, month, Mike boat for small a know leading it's things

is it So now. up right

Frederick Wightman

biggest That's entering unknown you market if entering market then how a still -- fair Florida us plan? versus see that's to being you probably you update characterism alluded helpful. timing I maybe guys if year. wondering I'm for could fiscal And the on the recovery think the broader the And the year, recovering of a Florida had the and as

Bill McGill

Yes.

got it the stores you get parts, -- into down There they break you probably storm, to disrupted never preparing, think of because they I hit. were a did hit, meaning get but right? couple were might that of

were and line boats, we in that. up and time there were our don't damaged to back docs, is damaged selling computers put just even rolling. and we're and They a rocking stores, than working, it it, say stores resilient, under engaged of the some I'm homes. get mobile business with our team I'd have the the order, and was know I people's by time they're disruptive, trailers are life I their all other Those a team are for but homes stores, impressed too. doing picked people's And has back then the the what that line docs and circumstances. the communities that running in we're and I the So up, storm, on that up know don't business. very October. call

Operator

line the from of Research. Healy comes question John Northcoast next with Our

John Healy

bit X each? kind Mike, can was more of could just on business? improvement. granularity detail. forward, go for that or state gross little steady more In X margins then the more that you a see to you release, on little spend about talked a items things help some I wondering I where the the about those want you minute the if a maybe that And the have and thinking gross the of profile bit contribution ultimate maybe of margin kind a contribution just of give

Michael McLamb

I'd question. a all dollars our tell business over expanded They improved we've grew biggest the the you, that percentage. absolute Thanks, of John. with as think higher is upon. I in and higher-margin in growth prior the businesses the year margins Good driver

what said we I million were XX%. quarter, And revenue like in Brett in we're probably a decline year-over-year. you have XX%, think this of in something of neighborhood over year, year, a last the when XX%. This $XX part that

expand. Your margin businesses are to going

do I year to a about. full think on thinking still is kind But basis, be XXs number right the of low the

complete margins organization. as little they as that reasons term, flows resilient a of the help this and to support EBITDA stable, think the overall to continue tend long businesses more we focused a We're see acquisitions. the the operations, you and more the continue for be quarter, cash think business with profile higher to have adding I we on to about pretty even

So margins the think I XXs low today, to to. where is the about long about. go discussion think be right term, But I there probably thinking be will number that another

Operator

of Our Rolle next with question Brandon from Davidson. D.A. comes line the

Brandon Rollé

mentioned gains the bake down expectations retail industry the in had maybe versus to year-over-year? flattish be those you expects where think I the industry expecting retail, on year. of the First, share remainder Do you're for any

Michael McLamb

industry. the as know, Actually, typically do And that's question, guys good a really Brandon. normally, we you outperform

for that that Coast significant did little we of cautious to the were and we a only think Florida, on business. the of our a about impact of is because I stores part West our XXXX, when guidance our

think I last it I said of call, XX% roughly business. was

we typically, the mean, would I that. changed haven't we outperform So industry.

flattish. we which is said flattish sales are what consistent our the about industry, So with

be industry the in upside is, recovered as our could stores in if can hopefully, have and that goes in fact, the flat year that. there we beat So some on,

James Hardiman

I Okay. what Great. about press bit you're think And pressure own maybe seeing elevated some in the broader than in on I'd you're maybe in in a imagine your participants. Could points areas. industry? release the position you little a better for talk then and you inventory, inventory mentioned being industry then

Bill McGill

Hi, Brandon, I'll Brad. this is first. comment

I is age, our out. product the think the less our shows about some focus feel on at up. work aged with inventory get right here orders get at those to to boats manufacturers from where quality, boat and still a and to those of do our We working those get there. We're winter any the bits this -- season last laser-focused cleaned in good

want you to do anything Mike, add So there?

Michael McLamb

just It's elevated.

sales. higher expected We

you when higher so I have XXXX. check sales come have comfortable that inventory. you hoping little through improve were product that less and pretty to and as you sell overall. a we you move But the And will have feel Inventories and

Brandon Rollé

the for industry? And Okay. broader

Michael McLamb

problem. they're we that have XXXX, keep that and hearing of will more we also overall industry, continues to more an as more we we aged And data are I suspect just is noncurrent, improve older for that the aging than product there industry the far seeing be broader A go too. through than

Operator

from Benchmark comes Albanese question the next Company. line with Mike of Our the

Michael Albanese

retail your quarter. space Were throughout a pull. of of as one, of you leverage we mean sense I can kind move about a to as I reduction assumptions what can situations? count trying or, it white kind get optimization on you year First the guess, expense relates the just closed X to unit stores we as portfolio Or taking how your, think retail? flat one-off more I these really guess, I'm

Michael McLamb

of we a can stores we ton -- close. think have don't I that Yes, other

last quarters. miss roughly we've where XX really those nearby of store duplicated the X we're another where retail Most in going X think there's the were revenue. closed locations or I not to

our have that other going the certainly ourselves adjustments environment, current initiatives, it P&L and and are resources the members really expense have on our for that we makes are at made and expenses. and line looking number think call, write, every the contracts by I last at where line looked of team we expense mentioned sense team The recurring in we we

the areas had had inflation nice quarter. lot Unfortunately, quarter, though coming that the we're improve going of the offset cetera, focused other overall operational stay to business T&E, in areas, look some et current helps In continue of of the we've areas to the on in in a to for company. marketing, some and in But we growth really other that. it reductions to

Michael Albanese

expecting Got it. quarter. But the That's helpful. if a then season, of year? the Or is as to segments and start we'll some inventories tighter, bit that cadence? support remain your little see the from mean a throughout little true to so back within and one kind the a up Channel on that are bit And could expectation position, selling think go into again, and then stay about we assumptions relief is less aged a go bit normal more bar is move OEMs. ask promotional more, that inventory product, and the more of you significant need year kind activity I activity quoted of discounting a your normal just across you industry I promotional and I destock. kind of more a kind of holding certain in are

Bill McGill

Mike, those with new, see good we're get and all dealers fresh higher with manufacturers But lined we I pointed winter this across from this we're and Brett. boat out, season position up that's right. for is show product those you we it. to everything aging going bring We're activity that got in get a to during margins And promotional innovation. have some new and aggressive especially kind ready levels think -- and continue inventory just the a of lot the -- to manufacturers, to

So good there's those. balance between a

Operator

question Citi. Hardiman of James comes the Our from next line with

James Hardiman

to inventory circle circle, I back conversation. Quickly good to wanted the morning.

sounds get inventory I are in So think of bring just as about terms inventory your some the of sort is Oftentimes, year-over-year know there? don't the forward be guess some And it to does like balance much number? we number to retail last? in year? up in as I right, dollars, going going And then there, M&A less think year-over-year? if or number year-over-year. ASP XX% go looking what I through I inventory units just expect orders at there's forward, you how way to there's to than question, that clean apples-to-apples, the significantly our that long up apples-to-apples sheet, trying an a look How first work is that like that down.

Michael McLamb

from to other where year, nothing last really there's we then and expecting that and lean because December, year articulate did this lighter than actually achieved. an just in there December Yes, than the were up to were we last perspective year's finished inventory, anomaly it comparison higher expect we year still have we in the versus inventory we sales did had categories were of

our the on adjusting -- we is prepared always tweaking quite orders manufacturing I just based that actually which go of industry typically the down we stuff lot down On a asked and remarks, as don't what look at that. around of makes up a from the doesn't recall question. And way always XXXX fine-tuning mentioned back that We're the I I unit-over-unit is, or surprise it basis, do James. And people XXXX because where activity. where our sense and frankly, edges you. with had it we're it's and on where we're it's up versus year-over-year, retail that then historically partners.

year. to below on we're were We activity, not around subject they year our all but a expect where if for still targeting. full year, call what the quarter it's last we're we finish and targeting retail where last said bit orders inventory the still Obviously, that's that is little to that

Bill McGill

James, especially think bigger sure. think show I boat down boat on about then touch is. going a that promotional December and being for made our winter in that I selling add inventory pedal I'll here, for sure being that's We're usually a bring off, month to why comment ASP to the jumped, activity. the the press inventory I with And these

James Hardiman

know half, I improvement. like month, it expected than trying get still growth figure then, worse sounds it. driving Florida sales, during to flattish January but like. but small non-boats. I little pretty same-store pretty like was was there sort And is the January I getting but then lot helpful. guide, It up. sales then It better, modeled sounds you X ASP us and remaining Originally, a December full imply is same-store I'm which we you drove curious that how looks in to of context slower in quarter what bad boats, the year in and to what December it in a the the improvement guess And think get expect the Got a half guess, good. January. quarters. then What's would of a was first were right, getting pickup is presumably I a January? think second better. out some the of that That's had

us flow So terms least how that year? about guys at just help thinking in the through of you are

Bill McGill

can high-technology tell we've investments definitely I comment some made and of lot. that things the But that a us watch weekly from we daily

things December quickly. So drive get was to people. tough can just we

so And make adjustments. to had some we

I'll So get be so people us have feeling credit consumer leads drive pretty a technology showroom. in that some the able in leads to a our and to those say little to to different would sentiment, I being of in putting we able business the to a innovative January. also convert speak, give of But there's or

I'll -- for a just down little there's to bit uptick of it traffic So January. a summarize

James Hardiman

full it second flattish December up quarter, in your It's year the obviously, big right? in Sharon to think same-store Do be you not sales, the modestly, least Do -- need of at be quarter, will the do you ask a up terms think the this let revenue sales? again, of quarter, but same-store way. me you context would

Michael McLamb

I think This is I When James. Hi, -- but to get about Mike. apologize. actually, in, let's chime

do So have is comps the X% hurricane The all we for small just easier quarter in sure quarter. said down quarters are the I assuming to or We of X because you was year in back other XXXX. of September no much is year say -- there's the back a going bigger. the the September quarter, what December were half of

come. an is in that to June all the normally So organization, done The June relative have March we in quarter what there. we've up easier X% what not easier. this to relative have comps we comp

the comps us year. back think year gives for half I whole to So the have of the an flattish opportunity

Operator

Longbow from David comes Our of with line final question the McGregor Research.

David S. MacGregor

wanted commentary up, for XXXX. on outlook your Mike, just I revenue to follow the around

into closed mentioned as represent guidance? XX you'd of that the quarters. X that revenue You locations last headwind within in mix X to of the that factors What does a going loss

Michael McLamb

Good question, David.

market are to revenue a least in going boat the locations that or us the store larger of almost cases same be of we the anyhow the is maybe actually commented stores at largely really because that market, then left where to have by manufacturers, of structure I have been those meaning a we what that very the marketplace large all And agreements hub it. way couple were is may in the recorded recorded duplicated, in there's we've territories. adjacent So in

from So we've we're closed not expecting headwinds that the really locations any or... to date

Bill McGill

Very slight.

Michael McLamb

our Very slight. adjusted concerned we would we about if were that. very headwind. slight guidance Yes, But have

So it's primarily question, just a good closing really David. locations, duplicated it's but

David S. MacGregor

somebody Okay. around do you question about the tariffs. has ask I obligatory there? exposure guess How to think

Michael McLamb

today brought most the we've Europe, strength for Europe Europe, euro. Europe in with boats a at there dollar the if don't from It's parity a of that's size material question. in I The we a terms is I product on is real our biggest import Europe, about higher of decent percentage of danger with of our Europe, And much product. import revenue. think When nothing region overall outside from tariff the we is guess, existence, we -- business, where is in good do the at

don't probably So between want We our at while of level a wants navigate could manufacturing something least it. us in it. It's theory, tariff, partners. nobody we and reasonable

can else is, none we're it. terms So would we're we in what but everybody what's like it watching prefer of import, we about. trying navigate see come think to going to we We

David S. MacGregor

there purchase what European or in that of that dollar the terms is quantify magnitude any Mike, of could you kind way would represent?

Michael McLamb

Europe I'll my revenue. than less XX%, answer, -- is XX%. than it's XX% probably or less take around something like, yes, It's in first of XX% probably greater, greater than total it's

David S. MacGregor

certainly destroyers initiative? just, market good think do is Maybe higher think our allocation, cash you of prioritization credit when you inventory balance lots for How how me on -- availability. come That survey of if works. strong the sheet. about or question make capital a is now, about down do and guess, position, so, and for you've is I and And to that the of now right a little opportunity then that you last but plan right bit your to acquisitions got

Bill McGill

really that that Marinas Yes. to where storage lot Dave, to retail question. of Yacht higher-margin business it's acquisition business. or and boat overall retail business and talk We're the our services candidates even to We good be a have a it's Whether bouncing continuing obviously components are they against list. of Super Marina it strategy. and the and different the extends

and So add that new there. locations opportunities within streams expansion storage additional there's markets, we and revenue then our maybe have, with that

comes opportunistic if eye keeping all of an on that up. and be to So that

Operator

you. Thank

floor Ms. question-and-answer back the McGill, reached turn comments. end session. have closing over I'd to We of you like for to the

Bill McGill

New all this everybody, us boat including the at winter the Well, week. joining today. thank swing shows, for show full We're York you, in

to up hope gearing in for of we we're of some at well, Show shows. these see Miami the some February, and you As

great a day. have So

Operator

today's Ladies teleconference. does and gentlemen, this conclude

participation, You time. day. wonderful may a at your have and Thank lines disconnect this you for your

MarineMax (HZO) 23 Jan 252025 Q1 Earnings call transcript