HZO stock continues in an uptrend after the company reported its quarterly financials on July 23, 2020.
On July 23, 2020, MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat and yacht retailer, announced results for its third quarter ended June 30, 2020.
Revenue grew approximately 30% to $498.3 million for the quarter ended June 30, 2020, from $383.5 million for the comparable quarter last year. The increase was driven by same-store sales growth of 37% which was on top of a 3% increase in the comparable period last year. Net income for the quarter ended June 30, 2020, grew over 83% to $34.9 million, compared to $19.1 million last year, while earnings per diluted share increased over 88% to $1.58, compared to $0.84 in the comparable quarter last year.
CEO Brett McGill stated, “Generating same-store sales growth of 37% driven by unit growth, clearly demonstrates the strength and flexibility of our business model and the MarineMax Team. (…) Overall, we added new customers to boating and to our data base, adding a layer of future growth potential that should benefit us long-term. With one of the strongest balance sheets in the industry, we remain well capitalized to make strategic accretive acquisitions to further enhance our geographic presence, to add to our marina strategy and to further grow our higher margin businesses. To that point, we were pleased to recently add super yacht powerhouse Northrop & Johnson. Together with Fraser Yachts, this unified combination provides us unrivaled global scale, while further diversifying MarineMax into higher margin, digitally focused businesses. Although the entire industry is lean on inventory due to the strong demand for the boating lifestyle, our deep manufacturer relationships, flexible inventory management and valuable real estate locations positions us well to continue to take share. I am proud of our ability to be nimble and disciplined, creating exceptional customer experiences while driving record results in our traditionally largest quarter.”
On July 8, 2020, MarineMax, Inc. (NYSE: HZO) announced that it acquired Private Insurance Services, a specialty yacht insurance agency. Private Insurance Services, an affiliate and part of the recent acquisition of Northrop & Johnson, provides yacht insurance programs for top yacht management groups, maritime attorneys and brokerage houses worldwide.
With the acquisition, MarineMax enters the yacht insurance segment of the industry, expanding its strong financial services portfolio and providing full access to leading superyacht, yacht and boating insurance programs, benefiting customers, partners and affiliates worldwide. Private Insurance Services is led by yacht insurance veterans that utilize expertise in complex underwriting, including understanding the exposures of an owner, captain, crew, guests, tenders and navigation, enabling them to provide insurance solutions. Private Insurance Services offers uniquely designed protection so customers can confidently cruise locally or throughout the world.
W. Brett McGill, Chief Executive Officer and President of MarineMax, stated, “The acquisition of Private Insurance Services will strengthen our comprehensive approach to serving our customers. This acquisition also creates another significant growth opportunity for the Company as we continue our efforts to diversify into higher margin businesses. Private Insurance Services strengthens our mission to offer the best customer experience in the world, by assisting clients anytime, anywhere to ensure they are always protected. Expanding our insurance capabilities provides us with another growth opportunity, while giving peace of mind to our customers as they enjoy time on the water with family and friends.”
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