Marinemax Inc. (NYSE:HZO) Q2 2018 Earnings Conference Call - Final Transcript

Apr 26, 2018 • 10:00 am ET


Marinemax Inc. (NYSE:HZO) Q2 2018 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Good day, and welcome to the MarineMax, Incorporated Fiscal Second Quarter 2018 Earnings Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Brad Cohen at ICR. Please go ahead, sir.

Brad Cohen

Thank you, Operator. Good morning, everyone, and thank you for joining this discussion of MarineMax' 2018 fiscal second quarter results. I'm sure that you've all received the copy of the press release that went out this morning. And if not, please call Linda Cameron at 727-531-1712, and she will e-mail one to you right away.

I would now like to introduce the management team of MarineMax, Mr. Bill McGill, Chairman and Chief Executive Officer; Mr. Brett McGill, President and Chief Operating Officer; and Michael McLamb, Chief Financial Officer of the company. The management will make a few comments about the quarter and then be available for your questions.

And with that, let me turn the call over to Mike.

Michael McLamb

Thank you, Brad. 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 by the Private Securities Litigation Reform Act. These statements involve risks and uncertainties that could cause actual results to differ materially from expectations. These risks include, but are not limited to the impact of seasonality and weather, general economic conditions and the level of consumer spending, the company's ability to capitalize on opportunities or grow its market share, and numerous other factors identified in our Form 10-K and other filings with the Securities and Exchange Commission.

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

Bill McGill

Thank you, Mike, and good morning, everyone. Let me begin by thanking the MarineMax team for producing a very strong overall March quarter. Their focus on taking great care of our customers, while ensuring they are enjoying the boating lifestyle, combined with providing the industry's best products, propelled our growth in earnings for the quarter. But let me stress, it all starts with our passionate team and the great customer experience that they deliver.

As further evidence of the power of our strategies and team, despite more adverse weather and mixed industry registration results for the quarter, I am proud that our team drove a 16% increase in unit sales in the quarter. And this was on top of a good quarter last year, further validating that boating with MarineMax is alive and well.

It was also great to see the strong gross margin improvement in the quarter. We produced the best March quarter gross margin in our company's history. Certainly, a combination of factors drove this, but margin expansion remains one of our core goals. Brett will provide more detail on this later, but I would like to comment that we are not in a discounting environment, and demand for new models remains at very high levels. Clearly, this