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

Apr 26, 2018 • 10:00 am ET

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

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Q & A
Operator
Operator

Thank you. (Operator Instructions).

And we'll take our first question from Eric Wold with B. Riley FBR.

Analyst
Eric Wold

Thank you. Appreciate it. Good morning. I guess, first question and obviously, great quarter and great push-through in terms of what was some concerns that there are on weather and whatnot, especially in Florida. I guess the March industry data created a lot of noise out there. Any sense from your end kind of what drove weaker results to the outside of your operations? And kind of how -- more importantly, kind of how you pushed through? Any impressions there might have been in the quarter?

Executive
Bill McGill

Yes, as I'd say, probably the biggest reason that we're contrarian to what was going on in the industry is our focus on our customer. We do Net Promoter Score to measure customer satisfaction as an example. And we could be in the book, probably the ultimate question, which was done by the buying company. And so it's how we take care of our customers and the events that we do with our customers. We invite them to the BVIs for getaway trips. We -- we're taking them to the Keys, we're taking them to the Bahamas, we're taking them to the various islands, we're doing winter events. Even though in some cases, it's not boating in Minnesota, we're doing things when there are customers during the winter time. And those are differentiators. At the end of the day, this is about a boating lifestyle and it's about the experience and really changing people's lives as much as anything.

And I think that's probably -- it's even more important today as people are looking for their -- that escape and being able to do more with their family. And so that's the reason I would give.

Analyst
Eric Wold

Thank you. And then you mentioned obviously larger boats were flat to slightly up. So obviously, a greater mix of, I guess, non-large boats flowing through in the quarter, which definitely helped them on the margin side. Maybe give us a sense of how kind of your inventory kind of backlog looks heading into the peak seasons, with a mix of boats and how you're positioned around this.

Executive
Bill McGill

I did not study that, Eric, coming into the call. But it's healthy. I mean it's -- when we had the 16% growth that we had, it was fairly broad-based and our backlog is similar, is fairly broad-based right now. No concerns, no real concerns around big boats other than the industry data shows it's choppy. But again, we did well in the quarter in that category as well and are playing into the June quarter as well.

Analyst
Eric Wold

All right. And just final question. You obviously talked about the acquisition environment somewhat. What's a typical seller's mentality heading into kind of expectation for a strong season to like to kind of hold on and kind of benefit from that and kind of look to maybe kind of cash out once you get through