Marinemax Inc. (NYSE:HZO) Q1 2015 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 10:00 am ET

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Marinemax Inc. (NYSE:HZO) Q1 2015 Earnings Conference Call - Final Transcript

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Operator
operator

Good day everyone and welcome to the MarineMax Incorporated First Quarter 2015 Earnings Conference. Just a reminder that today's call is being recorded. And at this time it is my pleasure to turn the conference over to Shannon Devine. Shannon, please go ahead.

Executive
Shannon Devine

Thank you, operator. Good morning everyone, and thank you for joining this discussion of MarineMax's 2015 fiscal first quarter results. I'm sure that you've all received a copy of the press release that we announced this morning. But if you have not, please call Linda Cameron at 727-531-1700 and she will then fax or email one to you right away.

I would now like to introduce the management team of MarineMax. Bill McGill, Chairman, President and CEO; and Mike McLamb, CFO of the company. Management will make some comments about the quarter and then be available for your questions.

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

Executive
Michael McLamb

Thank you, Shannon. Good morning everyone, and thank you for joining this call. Before I turn the call over to Bill, I'd like to tell you that certain of our comments are forward-looking statements as defined in the Private Securities Litigation Reform Act.

(Forward-Looking Cautionary Statements)

With that in mind, I'd like to turn the call over to Bill.

Executive
William McGill

Thank you, Mike and good morning everyone. Let me start by thanking the MarineMax team for producing our first profitable December quarter since 2005. As we have stated for several years, the marine industry is in a long-term period of recovery. The strength saying in the December quarter is clear proof that the recovery is underway and broadening into more of the key categories and segments that are critical for MarineMax.

With more than 45% growth in same store sales for the quarter, which was on top of 9% same store sales growth for the same quarter last year, the boating enthusiasts is letting us know that they are even more committed to enjoying the boating lifestyle in purchasing boats.

Most industry wide reports were encouraging during the quarter. Specifically, the December data shows that the industry ended 2014 on a positive note with most category showing increases for the month. That said, we believe our growth outpaced that of the industry, resulting in continued market share gains for MarineMax.

During the quarter we saw strength in just about every segment in almost all of our markets. As in the past quarters Florida continues to be the bright spot of activity, especially in a seasonal quarter like December. However, New York and other northern markets also showed strong growth. The quarter was highlighted by an increase in our large boat activity, as it surged and it continued to contribute to the growth which we saw.

Specifically, we saw a big increases in larger Azimut and Hatteras Yachts, as well as Ocean Alexander Yachts, which we started representing in April last year. Since boats carry the lowest margin of all of our products and services which we offer when