Marinemax Inc. (NYSE:HZO) Q4 2019 Earnings Conference Call - Final Transcript

Oct 29, 2019 • 10:00 am ET


Marinemax Inc. (NYSE:HZO) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the MarineMax, Inc. 2019 Fiscal Fourth Quarter and Year-End 2019 Conference Call. [Operator Instructions]

At this time, I would like to turn the call over to Brad Cohen of ICR, Investor Relations for MarineMax. Please go ahead.

Brad Cohen

Thank you, operator. Good morning, everyone, and thank you for joining this discussion of MarineMax's fiscal fourth quarter and year-end 2019 conference call. I'm sure that you've all received a copy of the press release that went out this morning. But if not, please call Linda 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. Brett McGill, President and Chief Executive Officer; and Mr. Mike McLamb, Chief Financial Officer of the company. Management will make a few comments about the quarter and the year and then be available for your questions.

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

Michael H. McLamb

Hey, thank you, Brad. Good morning, everyone, and thank you for joining this call.

Before I turn the call over to Brett, 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 Brett. Brett?

William Brett McGill

Thank you, Mike, and good morning, everyone. Yes, let me start by thanking the MarineMax team for their hard work and perseverance, which allowed us to finish fiscal 2019 with improved unit trends and solid results. Keep in mind, 2019 was the first full fiscal year that we had to replace over $100 million of lost business from the discontinuance of Sea Ray's sport yachts and yachts. To post positive same-store sales growth, especially given the industry challenges, shows the strength of MarineMax and our outstanding team. The industry challenges were widely reported and illustrated by the registration data. Seemingly, the political uncertainty, global trade wars and weather all were factors in the softer-than-expected unit sales for the industry. The year started with expectations for unit growth in the mid-single-digit. And through nine months, the industry was negative 4%. It does seem, however, that the industry found stability as we closed our fiscal year.

Specifically, we finished with very strong unit growth that allowed the entire fourth quarter to be up about 7% in terms of unit, with some brands and segments above that. While our same-store sales declined in the quarter, it wasn't based on unit. Rather, it was due to the timing of sales of much larger yachts. I would add