MarineMax Inc (HZO) Q2 2024 Earnings Report

Revenue: $582.9 million in Q2 2024, up 2.0% YoY and up 10.6% QoQ (per reported metrics). Gross Margin: 32.67% in Q2 2024, down from 35.2% in the prior-year quarter, reflecting heightened promotional activity; YoY margin change approximately -2.5 percentage points. Operating Income Margin: 3.83% in Q2 2024, down from a higher prior-year rate, reflecting gross margin pressure and SG&A dynamics (Operating income of $22.35 million; margin ~3.83%). Net Income Margin: 0.27% (Net income $1.59 million on $582.9 million revenue), down meaningfully YoY. EPS (Diluted): $0.069 on a diluted basis; GAAP $0.071; weighted average diluted shares ~22.999 million.
SG&A (selling, general and administrative): $168.1 million for the quarter, about +11% excluding nonrecurring items; management notes broader inflationary pressures (insurance, payroll, maintenance, etc.). Interest Expense: $19.37 million; floorplan interest about $12.0 million vs prior year, contributing to higher financing costs. EBITDA: $32.37 million; EBITDA margin ~5.55%. Free Cash Flow: -$37.27 million for the quarter; Operating Cash Flow: -$22.09 million. Balance Sheet Highlights: Cash $216.68 million; total debt $1,279.69 million; net debt $1,063.01 million; current ratio 1.24; inventory $932.61 million; total current assets $1,292.93 million; total assets $2,630.99 million. Liquidity and Leverage: Debt to EBITDA (net of cash) ~1.0x; cash and unused liquidity near $200 million in available lines; long-term debt remains substantial but manageable in a cyclical industry context. Inventory turns: ~2.4x (versus pre-COVID level in the mid-2x range); DIO ~213.9 days; DSO ~19.95 days; CCC ~233.82 days.
Key drivers of guidance: Management updated 2024 guidance to Adjusted Net Income per Share range of $2.20–$3.20 and Adjusted EBITDA of $155–$190 million, with a tax rate assumption of ~27% and ~23.1 million shares outstanding. The wide EPS-to-EBITDA range reflects growth in non-cash charges (stock-based compensation, depreciation, amortization) as a percentage of earnings. Management cites a mix of stronger April activity and increasing seasonality as the year progresses, while acknowledging ongoing promotional activity and higher promotional support from OEM partners.