Marinemax, Inc. (fl) · NYSE:HZO
Marinemax, Inc. (fl) — Q2 2023 Earnings Presentation
33 slides from Marinemax, Inc. (fl)'s earnings presentation, Apr 27, 2023
Slide 1: on Ee
on Ee 3 | MERCURY —
Slide 2: Disclaimer
DISCLAIMER Information contained in this presentation, other than historical information, should be considered forward-looking and subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect
Slide 3: Slide 3
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS ont se a oS “fs. > ° Largest boat, yacht and Exclusive agreements Diversified products super yacht services with premier brands fuel and services drive higher company in a highly high-end market share margins and recurring fragmented industry revenue streams Innovative growth V
Slide 5: * For a reconciliation of GAAP to Non-GAAP financial measures, refer to the Appendix.
* For a reconciliation of GAAP to Non-GAAP financial measures, refer to the Appendix. **Based on 2015-2022 Adjusted Income before Taxes 5
Slide 6: Company Overview
COMPANY OVERVIEW
Slide 7: Cycle-Tested Leadership
CYCLE-TESTED LEADERSHIP Bill McGill Brett McGill Mike McLamb Chuck Cashman Anthony Cassella Executive ChiefExecutive Executive Vice President, Executive Vice Executive Vice Chairman Officer and Chief Financial Officer President, Pre: President and Secretary Chief Revenue Officer Chief Acco 50 Years
Slide 8: Customer events and services
Pro-active and Fishing Seminar MarineMax Getaways!® Emergency Services Captain’s Orientation Mobile Service Owners Rendezvous State-Of-The-Art Customer Events Women on Water Equipment & Boat Shows and Facilities Kids in Boating MarineMax App MarineMax Vacations 8
Slide 9: Premium Brands
PREMIUM BRANDS MARINEM AX a —_ AZIMUT 9) CRUISERS YACHTS @ OCEAN ALEXANDER* GALEON mm Wide YACHTS @aaui.a @ AVIARA ~~ SAxXDOR BERTRAM EANAUTIQUE WoGa WHALER / GP =e iifrepid —PoweRsoaTs HARRIS MasterCratt = Seu
Slide 10: Portfolio of Valuable Real Estate
PORTFOLIO OF VALUABLE REAL ESTATE Real estate portfolio includes 57 owned or operated marinas including restaurants, storage and service facilities Marinas are located in highly desired key global yachting destinations and represent an opportunity for geographic expansion and growth. Marina operatio
Slide 11: Multiple Opportunities for Growth
MULTIPLE OPPORTUNITIES FOR GROWTH Target select accretive Platforms for organic growth - Significant margin Brand expansion opportunities within acquisitions dealerships, superyacht services, growth opportunity existing and new markets marinas, technology, financial services i
Slide 12: Adding Value Beyond Traditional Boat Dealer Acquisitions
IVE; ADDING VALUE BEYOND TRADITIONAL BOAT DEALER AQUISITIONS /7&@“/Max FULL REN? mc YACHTS SERVICE S zon MARINAS —< PARTS & = CY on SERVICES 12
Slide 13: Creating a Seamless Digital Experience for Customers
MNVE; CREATING A SEAMLESS DIGITAL EXPERIENCE FOR CUSTOMERS VEG e-3 oS é . — —4 w 7 Leveraging digital and Introduced award-winning Soundings Trade Only Newly formed entity, New marketing analytics, MarineMax App, to give "Most Innovative Wave Innovations, plus, artificial quick, easy access to Marin
Slide 14: Significant Margin Opportunities
SIGNIFICANT MARGIN OPPORTUNITIES MG Mex FULL SERVICE FRASER/ NORTHROP & PARTS & SERVICE FINANCIAL DIGITAL MARINAS JOHNSON SUPERYACHT SERVICES BUSINESS SERVICES
Slide 15: Opportunities Within New and Existing Markets
OPPORTUNITIES WITHIN NEW AND EXISTING MARKETS A4Q™‘Max 19% EXISTING SALES Sales from five brands represent just 19% of the total market opportunity: Azimut Ocean Alexander Galeon Aviara Aquila 15
Slide 16: Boat Dealer Boat Dealer / Marinas Superyacht Services
Boat Dealer Superyacht Services Technology Insurance Services Superyacht Services Boat Dealer / Marinas Product Boat Dealer / Storage Boat Dealer Product Superyacht Services Marinas Construction Technology 16
Slide 17: Values and ESG
Understands our company’s impact Provides team members time to Focuses on shareholder alignment on the environment volunteer and make our own charitable donations to support organizations such as Separate Chairman and CEO Roles Takes action to combat Habitat for Humanity climate change 33% of our in
Slide 18: * For a reconciliation of GAAP to Non-GAAP financial measures, refer to the Appendix.
18 * For a reconciliation of GAAP to Non-GAAP financial measures, refer to the Appendix.
Slide 19: Achieving Growth Through
Achieving Growth Through: ▪ Acquisitions of higher margin businesses ▪ Brand Expansions ▪ Markets Share Gains ▪ Marina & High Margin Businesses ▪ 14% Average Same-Store Sales Growth 19
Slide 20: Mix shift to higher margin businesses
Mix has shifted to greater percentage of higher margin businesses: 19.5% in 2022 Versus 15.8% in 2015 20
Slide 21: 44% Pre-Tax CAGR
44% Pre-Tax CAGR Most Growth Generated Through Same-Store Sales and High-Margin Acquisitions 21 * Includes $4.8 million of hurricane expense added back to pre-tax income. For a reconciliation of GAAP to Non-GAAP financial measures, refer to the Appendix.
Slide 22: Record Fiscal 2022 Revenue Surpasses $2.3B
Record Earnings Per Share Record Fiscal 2022 Revenue Surpasses $2.3B Strong 5% same-store sales growth Margins continue to expand Gross Margin expands to a record 35% * Includes $4.8 million of hurricane expense added back to pre-tax income. For a reconciliation of GAAP to Non-GAAP financial measure
Slide 23: Commentary
COMMENTARY ▪ Completed 14 strategic transactions ▪ Expanded marina portfolio from 24 to 57 with the acquisition of IGY ▪ >$600MM of revenue acquired, virtually all higher-margin businesses ▪ Enhanced ASPs through a focus on premium brands and larger boats 23
Slide 24: Q2 Revenue and Gross Margin
Q2 revenue of $570.3M Record Q2 gross margin of 35.2% Adjusted EBITDA and Adjusted Net Income down primarily due to seasonally lower revenue * For a reconciliation of GAAP to Non-GAAP financial measures, refer to the Appendix. 24
Slide 25: Strong Cash and Liquidity
Strong cash and liquidity Formidable balance sheet provides capital for growth Current ratio down due to acquisition of IGY 25
Slide 26: Priorities for Use of Cash
PRIORITIES FOR USE OF CASH Investing in Growth Opportunities Strategic Acquisitions Maintain Strong Balance Sheet Capex Facilities and Technology Strategies Opportunistic Share Repurchases | i a {iE :. H = Pe eee | iene ne — Feahy rT | 4 \ s
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS ont se a oS “fs. > ° Largest boat, yacht and Exclusive agreements Diversified products and super yacht services with premier brands fuel services drive higher company in a highly high-end market share Margins and recurring fragmented industry revenue streams Innovative growth V
Slide 28: Appendix
NITED 4y WATER v /E} MAEM ax
Slide 29: Non-GAAP Financial Measures
-GAAP Financial Measures This presentation contains “Adjusted net income” and “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization” (“Adjusted EBITDA”), which are non-GAAP financial measures as defined under applicable securities legislation. In determining these measures, the Co
Slide 30: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Amounts in thousands) (Unaudited) Three Months Ended Six Months Ended March 31 March 31 2023 2022 2023 2022 Net income attributable to MarineMax, Inc. $ 30,035 $ 53,507 $ 49,725 $ 89,450 Interest expense (excluding floor plan) 6,819 308 13,184 623 Income tax provision
Slide 31: Reconciliation footnotes
(1) Acquisition costs relate to acquisition transaction costs in the period. (2) Represents amortization expense for acquisition-related intangible assets. (3) Represents expenses to record contingent consideration liabilities at fair value. (4) Represents gain on a previously held equity investment
Slide 32: Adjusted net income reconciliation
(Amounts in thousands, except share and per share data) (Unaudited) Fiscal Year Ended September 30, 2022 Net income $ 197,989 Hurricane expenses 4,800 Tax adjustments for items noted above (1) (1,171) Adjusted net income $ 201,618 Diluted net income per common share $ 8.84 Hurricane expenses 0.21 Ta
Slide 33: /VARINE/ ax
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