MarineMax Stock

MarineMax, Inc. (MarineMax) is the world's largest recreational boat and yacht retailer, selling new and used recreational boats, yachts, and related marine products and services. MarineMax has over 130 locations worldwide, including 81 retail dealership locations, some of which include marinas. Collectively, with the IGY Marinas (IGY) acquisition, MarineMax owns or operates 66 marinas and storage locations worldwide. Through Fraser Yachts and Northrop & Johnson, the company also is the largest superyacht services provider, operating locations across the globe. Cruisers Yachts manufactures boats and yachts with sales through its select retail dealership locations and through independent dealers. Intrepid Powerboats manufactures powerboats and sells through a direct-to-consumer model. MarineMax provides finance and insurance services through wholly owned subsidiaries and operates MarineMax Vacations in Tortola, British Virgin Islands. The company also owns Boatyard, Inc. (Boatyard), an industry-leading customer experience digital product company, and Boatzon, a boat and marine digital retail platform.

As of September 30, 2023, the Retail Operations segment included the activity of 79 retail locations in Alabama, California, Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Washington, and Wisconsin, where it sells new and used recreational boats, including pleasure and fishing boats, with a focus on premium brands in each segment. In the British Virgin Islands, the company offers the charter of power catamarans, through MarineMax Vacations.

As of September 30, 2023, the Product Manufacturing segment included activity of Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufacturing sport yacht and yachts with sales through its select retail dealership locations and through independent dealers, and Intrepid Powerboats.

In 2022, the company owns Midcoast Construction Enterprises, LLC (Midcoast Marine Group), a leading full-service marine construction company based on Central Florida's Gulf Coast. In January 2023, it acquired Boatzon, a boat and marine digital retail platform, through its recently formed technology entity, New Wave Innovations. In June 2023, it acquired C&C Boat Works, a full-service boat dealer in Crosslake, Minnesota. In October 2023, the company acquired Atalanta Golden Yachts (AGY), a luxury charter management agency based in Athens, Greece.

The company is the largest retailer of Sea Ray and Boston Whaler recreational boats which are manufactured by Brunswick Corporation (Brunswick). Brunswick is a world leading manufacturer of marine products and marine engines. The company has agreements with Brunswick covering Sea Ray products and Boston Whaler products and are the exclusive dealer of Sea Ray and Boston Whaler boats in almost all of its geographic markets. Additionally, the company is the exclusive dealer for Harris aluminum boats, a division of Brunswick, in many of its geographic markets. It is the exclusive dealer for Italy-based Azimut-Benetti Group, or Azimut, for Azimut and Benetti mega-yachts, yachts, and other recreational boats for the United States. Additionally, the company is the exclusive dealer for certain other premium brands that serve certain industry segments in its markets.

The company is involved in other boating-related activities. It sells used boats at its retail locations, online, and at various third-party marinas and other offsite locations; it sells a broad variety of parts and accessories at its retail locations and at various offsite locations, and through its print catalog; it offers maintenance, repair, and slip and storage rentals at most of its retail locations; and it offers finance and insurance products at most of its retail locations and at various offsite locations and to its customers and independent boat dealers and brokers.

The company offers boat and yacht brokerage sales at most of its retail locations and at various offsite locations; and it conducts a charter business, which is based in the British Virgin Islands, in which it offers customers the opportunity to charter third-party and Company owned power catamarans.

Strategy

The company's strategy is to enhance its position as the leading recreational boat and yacht retailer and preeminent superyacht services company. Pursuant to this strategy, the company has completed recent acquisitions, including Fraser Yachts Group, Northrop & Johnson, Skipper Marine Holdings, Inc. and certain affiliates (collectively, SkipperBud's), KCS International Holdings, Inc. and certain affiliates (Cruisers Yachts), Intrepid Powerboats, Texas MasterCraft, IGY Marinas, Midcoast Marine Group, C&C Boat Works and AGY. The company's acquisitions of Fraser Yachts Group, Northrop & Johnson, SkipperBud's, and IGY Marinas increases its superyacht brokerage and luxury yacht services and marina/storage services. Additionally, IGY Marinas' scale and strategic geographic footprint enables it to provide vertically integrated services to superyacht customers as they travel to popular destinations. The company's acquisition of IGY Marinas offers a global network of marinas in the Americas, the Caribbean, and Europe, and Asia, delivering year-round accommodations.

In addition, the company continues to broaden and strengthen its digital initiatives. Its digital services are always available and offer its full selection of boats, yachts and charters, as well as its expert team to answer customers' questions and help them find a boat virtually. The company's Boatyard digital platform provides marine businesses effective and customized digital solutions, delivering great customer experiences by enabling customers to interact through a personalized experience tailored to their needs. Additionally, Boatzon offers a boat and marine digital retail platform, through its recently formed technology entity, New Wave Innovations.

The company continually attempts to enhance its business by providing a full range of services, offering extensive and high-quality product lines, maintaining prime retail locations, pursuing the MarineMax One Price hassle-free sales approach, and emphasizing a high level of customer service and satisfaction.

The company also from time to time evaluates opportunities to expand its operations by potentially acquiring recreational boat dealers to expand its geographic scope, expanding its product lines, opening new retail locations within or outside its existing territories, and offering new products and services for uts customers and by potentially acquiring companies to pursue contract manufacturing or vertical integration strategies.

In addition to acquiring recreational boat dealers, superyacht service companies, boat manufacturers, marinas, and opening new retail locations, the company adds new product lines to expand its operations.

The company plans to further expand its business through both acquisitions in new territories and new store openings in existing territories. In addition, the company plans to continue to expand its other traditional services, including conducting used boat sales at its retail locations, at offsite locations, and digitally; selling related marine products, including engines, trailers, parts, and accessories at its retail locations and at various offsite locations; providing maintenance, repair, and storage services at most of its retail locations; offering its customers the ability to finance new or used boat purchases and to purchase extended service contracts and arrange insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, trailer tire and wheel protection, and casualty insurance coverage; offering boat and yacht brokerage sales at most of its retail locations and at various offsite locations; offering boat storage; conducting its yacht charter business; and manufacturing sport yacht and yachts.

Products and Services

The company offers new and used recreational boats and related marine products, including engines, trailers, parts, and accessories. While the company sells a broad range of new and used boats, it focuses on premium brand products. In addition, the company assists in arranging related boat financing, insurance, and extended service contracts; provides boat maintenance and repair services; offers slip and storage accommodations; provides boat and yacht brokerage sales; and conducts a yacht charter business.

New Boat Sales

The company primarily sells recreational boats, including pleasure boats and fishing boats. A number of the products, it offers are manufactured by Brunswick Corporation (Brunswick), a leading worldwide manufacturer of recreational boats and yachts, including Sea Ray pleasure boats, Boston Whaler fishing boats, and Harris aluminum boats. Sales of new Brunswick boats accounted for approximately 24% of its revenue for the year ended September 30, 2023. Sales of new Sea Ray and Boston Whaler boats accounted for approximately 11% and 11%, respectively, of its revenue for the year ended September 30, 2023. Certain of its dealerships also sell luxury yachts, fishing boats, and pontoon boats provided by other manufacturers, including Italy-based Azimut. Sales of new Azimut boats and yachts accounted for approximately 11% of its revenue for the year ended September 30, 2023. Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufactures sport yacht and yachts with sales through its select retail dealership locations and through independent dealers. Intrepid Powerboats, a MarineMax company, manufactures powerboats and sells through a direct-to-consumer model. For the year ended September 30, 2023, new boat sales, including sales of Cruisers Yachts and Intrepid Powerboats, accounted for approximately 68.7% of its revenue.

The company offers recreational boats in most market segments, but has a particular focus on premium quality pleasure boats and yachts. Given its locations in some of the more affluent, offshore-oriented boating areas in the United States and emphasis on high levels of customer service, the company sells a relatively higher percentage of large recreational boats, such as mega-yachts, yachts, and sport cruisers.

E-Power Yachts: Italian-made Wider Yachts manufactures electric yachts with performance and exceptional quality in mind. From its line of superyachts to express cruisers, electric catamarans, and new builds, Wider Yachts offers a number of features.

Motor Yachts: Ocean Alexander Yachts, Azimut, and Princess are three of the world's premier yacht builders. The motor yacht product lines typically include state-of-the-art designs with live-aboard luxuries. Azimut yachts are known for their Americanized open layout with Italian design and powerful performance. The luxurious interiors of Azimut yachts are accented by windows and multiple accommodations that have been designed for comfort. Ocean Alexander Yachts are known for their excellent engineering, performance, and functionality combined with luxuries typically found on larger mega yachts. Princess yachts are a leading British luxury yacht manufacturer with attention to detail, design, and performance.

Pleasure Boats: Sea Ray pleasure boats target both the luxury and the family recreational boating markets and come in a variety of configurations designed to suit each customer's particular recreational boating style. Sea Ray pleasure boats feature custom instrumentation that may include an electronics package; various hull, deck, and cockpit designs that can include a swim platform; bow pulpit and raised bridge; and various amenities, such as swivel bucket helm seats, lounge seats, sun pads, wet bars, built-in ice chests, and refreshment centers. Most Sea Ray pleasure boats feature Mercury or MerCruiser engines. Galeon Sp.z.o.o. Sp.K. (Galeon) specializes in luxury yacht and motorboats with over thirty years of experience. Galeon is one of Europe's leading and premier boat manufacturers.

Pontoon Boats: Harris is a pontoon industry leader and offers a variety of some of the most innovative, luxurious, and premium pontoon models to fit boaters' needs. Harris is known for exceptional performance combined with a stable and safe platform. Crest provides a variety of pontoon models that are designed to provide extreme levels of quality, safety, style and comfort to meet family recreational needs. Barletta offers quality construction, simple yet refined models, and customer focused amenities. Starcraft is a leading boat manufacturer with a long history of continuous improvements to fiberglass hull design and a dedication to providing pontoon, runabouts, and deck boat models for families and watersport enthusiasts. Sylvan builds quality, innovative, high performance pontoon boats. With a variety of designs and options, the pontoon boats the company offers appeal to a broad audience of pontoon boat enthusiasts and existing customers.

Fishing Boats: The fishing boats the company offers, such as Boston Whaler, Grady-White, Scout, and Sailfish, range from entry level models to advanced models designed for fishing and water sports in lakes, bays, and off-shore waters, with cabins with limited live-aboard capability. The fishing boats typically feature livewells, in-deck fishboxes, rodholders, rigging stations, cockpit coaming pads, and fresh and saltwater washdowns.

Ski Boats: The ski boats the company offers are Nautique by Correct Craft, Tige, ATX Surf Boats, and Mastercraft, which range from entry level models to advanced models and all of which are designed to achieve an ultimate wake for increased skiing, surfing, and wakeboarding performance and safety. With a variety of designs and options, Nautique, Tige, ATX Surf Boats, and Mastercraft ski boats appeal to the competitive and recreational user alike.

Jet Boats: Yamaha jet boats are designed to offer a reliable, high performing, internal propulsion system with superior handling. Yamaha is a worldwide leader in jet boats. The Scarab jet boats the company offers range from entry level models to advanced models, all of which are designed for performance and with exclusive design elements to meet family recreational needs. With a variety of designs and options, the jet boats the company offers appeal to a broad audience of jet boat enthusiasts and existing customers.

Used Boat Sales

The company sells used versions of the new makes and models it offers and to a lesser extent, used boats of other makes and models generally taken as trade-ins. For the year ended September 30, 2023, used boat sales accounted for 7.9% of its revenue.

The company acquires substantially all of its used boat inventory through customer trade-ins. The company strives to increase its used boat business through the availability of quality used boat trade-ins generated from its new boat sales efforts, which are well-maintained through its service initiatives. The company also sells used boats at various marinas and other offsite locations throughout the country. To further enhance its used boat sales, the company offers extended warranty plans generally available for used boats less than nine years old.

Marine Engines, Related Marine Equipment, and Boating Parts and Accessories

The company offers marine engines and equipment, predominantly manufactured by Mercury Marine, a division of Brunswick, and Yamaha. The company sells marine engines and propellers primarily to retail customers as replacements for their existing engines or propellers. Mercury Marine and Yamaha have introduced various new engine models that are designed to reduce engine emissions to comply with United States Environmental Protection Agency (EPA) requirements.

The company also sells a broad variety of marine parts and accessories at its retail locations, at various offsite locations, and through its print catalog. These marine parts and accessories include marine electronics; dock and anchoring products, such as boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, such as tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, such as propellers and instruments; and a complete line of boating accessories, including life jackets, inflatables, and water sports equipment. The company also offers novelty items, such as shirts, caps, and license plates bearing the manufacturer's or dealer's logos. In all of its parts and accessories business, the company utilizes its industry knowledge and experience to offer boating enthusiasts high-quality products with which it has experience.

Maintenance, Repair, and Storage Services

Providing customers with professional, prompt maintenance and repair services is critical to its sales efforts and contributes to its success. The company provides maintenance and repair services at most of its retail locations, with extended service hours at certain of its locations. In addition, in many of its markets, the company provides mobile maintenance and repair services at the location of the customer's boat.

The company performs both warranty and non-warranty repair services, with the cost of warranty work reimbursed by the manufacturer in accordance with the manufacturer's warranty reimbursement program. For warranty work, most manufacturers, including Brunswick, reimburse a percentage of the dealer's posted service labor rates, with the percentage varying depending on the dealer's customer satisfaction index rating and attendance at service training courses. The company derives the majority of its warranty revenue from Brunswick products, as Brunswick products comprise the largest percentage of its products sold. Certain other manufacturers reimburse warranty work at a fixed amount per repair. Because boat manufacturers permit warranty work to be performed only at authorized dealerships, the company receives substantially all of the warranted maintenance and repair work required for the new boats it sells. The third-party extended warranty contracts the company offers also results in an ongoing demand for its maintenance and repair services for the duration of the term of the extended warranty contract.

The company's maintenance and repair services are performed by manufacturer-trained and certified service technicians. In charging for its mechanics' labor, many of its dealerships use a variable rate structure designed to reflect the difficulty and sophistication of different types of repairs. At many of its locations, the company offers boat storage services, including in-water slip storage and inside and outside land storage.

F&I Products

At each of its retail locations and at various offsite locations where applicable, the company offers its customers the ability to finance new or used boat purchases and to purchase extended service contracts and arrange insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, trailer tire and wheel protection, and casualty insurance coverage (collectively, F&I). The company has relationships with various national marine product lenders under which the lenders purchase retail installment contracts evidencing retail sales of the boats and other marine products that are originated by the company in accordance with existing pre-sale agreements between it and the lenders. These arrangements permit the company to receive a portion of the finance charges expected to be earned on the retail installment contract based on a variety of factors, including the credit standing of the buyer, the annual percentage rate of the contract charged to the buyer, and the lender's then minimum required annual percentage rate charged to the buyer on the contract.

The company also offers third-party extended service contracts under which, for a predetermined price, it provides all designated services pursuant to the service contract guidelines during the contract term at no additional charge to the customer above a deductible. While the company sells all new boats with the boat manufacturer's standard hull and engine warranty, extended service contracts provide additional coverage beyond the time frame or scope of the manufacturer's warranty. Generally, the company receives a fee for arranging an extended service contract. The company has partnered with a third-party F&I product provider to offer prepaid maintenance plans for select, new models.

The company is also able to assist its customers with obtaining property and casualty insurance, which covers loss or damage to the vessel. The company provides worldwide yacht insurance programs for brokerage houses, yacht management groups, and maritime attorneys. The company utilizes expertise in complex underwriting, including understanding the exposure of an owner, captain, crew, guests, tenders and navigation to provide clients with uniquely designed protection so customers can cruise confidently.

Brokerage Sales

Through employees or subcontractors that are licensed boat or yacht brokers where applicable, the company offers boat or yacht brokerage sales at most of its retail locations. For a commission, the company offers for sale brokered boats or yachts, listing them digitally on various sites, advising its other retail locations of their availability through its integrated computer system, and posting them on its website, www.MarineMax.com. Often sales are co-brokered, with the commission split between the buying and selling brokers. In addition to generating revenue from brokerage commissions, its brokerage sales also enable it to offer a broad array of used boats or yachts without increasing related inventory costs. Also, through Fraser Yachts Group and Northrop & Johnson, the company offers yacht and superyacht brokerage.

The company's brokerage customers generally receive the same high level of customer service as its new and used boat customers. The company's waterfront retail locations enable in-water demonstrations of an on-site brokered boat. The company's maintenance and repair services, including mobile service, also are generally available to its brokerage customers. Generally, the purchaser of a boat brokered through the company also can take advantage of MarineMax Getaways! weekend and day trips and other rendezvous gatherings and in-water events, as well as boat operation and safety seminars.

Yacht Charter

In 2011 the company launched a yacht charter business in which it offers customers the opportunity to charter catamarans in exotic destinations, starting with its initial location in the British Virgin Islands. In this business, the company sells specifically designed yachts to third parties for inclusion in its yacht charter fleet; enters into yacht management agreements under which yacht owners enable the company to put their yachts in its yacht charter program for a period of several years for a fixed monthly fee payable by it; provides its services in storing, insuring, and maintaining their yachts; and charter these yachts to vacation customers at agreed fees payable to the company.

In addition to the specific business the company launched in the British Virgin Islands, it also offers yacht charter services. For a fee, the company assists yacht owners in the charter of their vessel by third-parties. Additionally, through Fraser Yachts Group and Northrop & Johnson the company offers yacht and superyacht chartering, charter management, yacht management, crew placement, new boat build oversight services and other luxury yacht services.

Offsite Sales

The company sells used boats, offer F&I products, and sell parts and accessories at various third-party offsite locations, including marinas.

Product Manufacturing

KCS International Holdings, Inc., and certain affiliates (Cruisers Yachts), a wholly-owned MarineMax subsidiary, manufactures sport yacht and yachts with sales through its select retail dealership locations and through independent dealers. Cruisers Yachts is recognized as one of the world's premier manufacturers of premium sport yacht and yachts, producing models from 33' to 60' feet. Intrepid Powerboats, also a wholly-owned MarineMax subsidiary, is recognized as a world class producer of customized boats, reflecting the unique desires of each individual owner. Intrepid Powerboats follows a direct-to-consumer distribution model.

Retail Locations

The company sells its recreational boats and other marine products and offer its related boat services through 81 retail locations in Alabama, California, Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Washington, and Wisconsin. Each retail location generally includes an indoor showroom (including some of the industry's largest indoor boat showrooms) and an outside area for displaying boat inventories, a business office to assist customers in arranging financing and insurance; maintenance and repair facilities; and, at certain retail locations, boat storage services, including in-water slip storage and inside and outside land storage.

Many of its retail locations are waterfront properties on some of the nation's most popular boating locations. The company's waterfront retail locations, most of which include marina-type facilities and docks at which it displays its yachts and boats, are easily accessible to the boating populace, serve as in-water showrooms, and enable the sales force to give customers immediate in-water demonstrations of various boat models. Most of its other locations are in close proximity to water.

Additionally, through IGY Marinas the company owns and manages luxury marinas situated around the world.

Dealership Operations and Management

The company has adopted a generally decentralized approach to the operational management of its dealerships.

Sales and Marketing

The company's sales philosophy focuses on selling the pleasures of the boating lifestyle and creating memories of a lifetime with family and friends. The critical elements of the company's sales philosophy include its appealing retail locations, no-hassle sales approach, highly trained sales representatives, high level of customer service, emphasis on educating the customer and the customer's family on boating, and providing its customers with opportunities for boating through its MarineMax Getaways!. The company strives to provide exceptional customer experiences through the best services, products, and technology before, during, and after the sale. The company's team and customers are United by Water.

The company's full-service retail locations facilitate a turn-key purchasing process that includes attractive lender financing packages, extended service agreements, and insurance. Many of the company's retail locations are located on waterfronts and marinas, which attract boating enthusiasts and enable customers to operate various boats prior to making a purchase decision.

The brands it offers are diverse in size and use and are spread across its customer activities of leisure, fishing, watersports, luxury, and vacations. The company's promise gives its brands meaning and reason to exist next to one another on its showroom floor.

The company sells its boats at posted MarineMax 'One Price' that generally represent a discount from the manufacturer's suggested retail price. The company's sales approach focuses on the customer experience by minimizing customer anxiety associated with price negotiation.

As a part of the company's sales and marketing efforts, its digital marketing capabilities are a competitive advantage, with the majority of leads originating through its digital properties, including MarineMax.com. The company holds online experience events, including immersive boat tours that allow participants to explore boats and yachts from multiple manufactures, segments, and models from anywhere using their phone, tablet, or computer.

The company participates in boat shows and in-the-water sales events at area boating locations, typically held in January, February, March, and toward the end of the boating season, in each of its markets. Boat shows and other offsite promotions are an important venue for generating customer engagement. The boat shows also generate a significant amount of interest in the company's products resulting in boat sales after the show. The company's products and services are always available online and, through its online platform, it offers its full selection of boats, yachts, charters, and services. The company's expert team is also available to assist customers and provide a great customer experience.

The company emphasizes customer education through one-on-one education by its team members including, at many locations, its delivery captains, both before and after a sale, and through in-house seminars for the entire family on boating safety, the use and operation of boats, and product demonstrations. Typically, one of the company's delivery captains or other team members delivers the customer's boat to an area boating location and thoroughly instructs the customer about the operation of the boat, including hands-on instructions for docking and trailering the boat. To enhance its customer relationships after the sale, the company leads and sponsors MarineMax Getaways! group boating trips to various destinations, rendezvous gatherings, and on-the-water organized events that promote the boating lifestyle and memories of a lifetime.

Suppliers and Inventory Management

For the year ended September 30, 2023, sales of new Brunswick and Azimut boats and yachts accounted for approximately 24% and 11% of the company's revenue, respectively. Sales of the new Sea Ray and Boston Whaler boats accounted for approximately 11% and 11% respectively, of the company's revenue for the year ended September 30, 2023.

The company has entered into multi-year agreements with Brunswick covering Sea Ray and Boston Whaler. The company also has a multi-year agreement with Azimut-Benetti Group for its Azimut product line. The company typically deals with each of its manufacturers, other than Brunswick and Azimut-Benetti Group, under an annually renewable, non-exclusive dealer agreement.

Intellectual Property

The company has registered tradenames and trademarks, including among other marks, MarineMax and United by Water in over 20 countries and territories. Pursuant to agreements with manufacturers and subject to restrictions in those agreements, the company has the right to use and display the trademarks and logos of its manufacturer's brands at its retail stores as well as in its advertising and promotional materials.

Seasonality

The company's business, as well as the entire recreational boating industry, is highly seasonal, with seasonality varying in different geographic markets. Over the three-year period ended September 30, 2023, the average revenue for the quarters ended December 31, March 31, June 30 and September 30 represented approximately 20%, 25%, 31%, and 24%, respectively, of the company's average annual revenues. With the exception of Florida, the company generally realizes significantly lower sales and higher levels of inventories and related short-term borrowings, in the quarterly periods ending December 31 and March 31. The onset of the public boat and recreation shows in January generally stimulates boat sales and typically allows the company to reduce its inventory levels and related short-term borrowings throughout the remainder of the fiscal year (year ended September 30, 2023). The company's business is also subject to weather patterns, which may adversely affect its results of operations.

Governmental Regulations, including Environmental Regulations

Various foreign, federal, state, and local regulatory agencies, including the Occupational Safety and Health Administration (OSHA), the United States Environmental Protection Agency (EPA), and similar foreign, federal, state, and local agencies, have jurisdiction over the operation of its dealerships, repair facilities, and other operations with respect to matters, such as consumer protection and privacy, workers' safety, and laws regarding protection of the environment, including air, water, and soil.

History

MarineMax, Inc. was founded in 1998. It was incorporated in the state of Delaware in 1998. The company was reincorporated in Florida in 2015.