MARINEMAX INC Q2 FY2025 earnings call

• Focused on customer-centric approach with record March quarter revenue of over $631 million, driven by digital tools and data analytics. • Same-store sales grew 11% due to aggressive pricing and targeted promotions, though boat margins were low. • Successfully diversified into higher margin businesses, shielding from cyclical volatility; gross margin down by only 30 basis points year-to-date. • Selectively closed/consolidated/expanded locations, e.g., extended lease at Treasure Island Marina and acquired Shelter Bay Marine. • IGY marina developments, including nearing grand opening of Savannah Harbor Marina and renewal of management agreement at Porto Cervo Marina. • Recognized as a Great Place To Work; storm recovery ongoing with most stores back to speed, though Sarasota Marina has limited operations. • Addressed tariff situation, working to understand landscape, but confident in strategy to outperform industry.

In the second quarter, MarineMax reported revenue of more than $631 million. Same-store sales grew 11%. Boat revenue, the lowest margin source, was skewed due to aggressive pricing leading to historically low new and used boat margins. However, higher margin businesses such as marinas, superyacht services, and finance and insurance performed well, keeping the gross margin down by only 30 basis points year-to-date. Revenue contribution from boat sales was impacted by the pricing and mix, while higher margin segments contributed positively.

• Lowered fiscal 2025 adjusted net income guidance to $1.40 to $2.40 per diluted share and adjusted EBITDA to $140 million to $170 million due to macro uncertainties from tariffs. • Expect April to be down from last year, with consumer softness linked to tariff uncertainties. • Revised guidance does not consider material acquisitions or unforeseen events like global economic changes.

• Impact of seasonality and weather. • Global economic conditions and consumer spending levels. • Uncertainty from tariffs affecting consumer behavior and potential volume impact from price increases. • Potential slower industry recovery pace due to economic and policy developments.

Q: Disaggregate the +11% same-store sales in terms of units vs price and impact on April trends.

A: Units were down mid-single digits, same-store sales growth driven by premium product mix shift. April expected to be down from last year due to consumer softness from tariff uncertainties.

Q: Direct tariff costs and guidance reduction.

A: Guidance reduction due to macro outlook change, not specifically built in as direct tariff costs; industry likely down, margin pressure baked into numbers.

Q: Boat margin softness and promotion outlook.

A: Industry boat margins a couple of hundred basis points below normal, under pressure; promotion activity may persist due to market uncertainty.

Q: Promotional environment, inventory clearing, and June/July model year changeover.

A: Industry made progress in clearing aged inventory, inventory levels expected to improve in summer; promotional activity may still be needed.

Q: April door swings, segment softness, and promotion effectiveness.

A: Softness across all segments, lower end under pressure longer; April had uncertainty causing promotional ineffectiveness; higher end superyacht business resilient.

Q: Capital allocation and M&A strategy in dynamic macro environment.

A: Always evaluate acquisitional opportunities, focus on synergies in higher margin businesses, and have a pipeline of opportunities to evaluate.