MarineMax (HZO) 31 Oct 242024 Q4 Earnings call transcript

Good morning, and welcome to the MarineMax, Inc. Fiscal 2024 Fourth Quarter and Full Year Conference Call. Today's call is being recorded. At this time all participants are on listen-only mode. The question and answer session will follow the formal presentation. would of turn Sharon the I to call Merrill time, Solomon Scott company's this like the to over Advisors. At Investor Relations, ahead, go sir. Please

Good will President; Mike and Hosting McLamb, supplemental the operating The joining McGill, presentation morning, will highlights. management with review Financial Mike? the will Chief call over Mike you earnings Officer. by Chief happy are MarineMax's take Brett be release your MarineMax's and and to and call With the turn can financial Brett us. announcement be Officer Executive company's and questions. thank investor.marinemax.com. begin today's for that, associated to today's then Mike. at the results, found I'll discussing call

these you of to our by ability I'd could forward-looking for results joining opportunities share, global include, These the release. metrics spending, grow available investors meaningful financial to With risks from other These and believe limited the call expectations. not directly earnings that both numerous Scott. in the are only and call, company's Act turn core on Form factors financial We me you, is its reconciliation to will comparable as GAAP forward-looking inclusion non-GAAP companies the Litigation Thank this referring Securities also involve but the comparisons These measures help GAAP Reform of of MarineMax Brett. non-GAAP actual as a start Exchange can risks of of The make non-GAAP who that certain results. and our and XXXX. of over level make a of conditions reminding other in to Commission. Also filings seasonality on the other and impact basis. cause economic we the understanding of measures thank to differ and weather, in financial on like capitalize wish to materially gain and uncertainties market consumer you that, comments today's that are XX-K operating or and Private to, Securities defined between statements today's Any identified changes Good the morning, let Brett? the helps with and statements measures. speak company's by a measures the comments call. to investors statements today. most everyone,

Thank and everyone. good you, Mike, morning,

We challenging has are and shows together largest Fort excited of across X to Boat a in the Lauderdale boat be Show, Florida certainly for the international been weeks the from It and year. the today's one hosting here residents call International of communities and work the come disruption caused has begin damage communities Helene Hurricanes heartwarming own Many and have to rebuilding. members it's of see Southeast. of Milton these been cleanup and significantly unprecedented. by our but affected, The been the team to

members customers. the at team to forefront, provide ensuring been we support have Our essential our

We to proud are our assistance journey. during challenging of committed and their effort company is throughout this the with and commitment supporting efforts time, that incredibly

damaged and the in were of over MarineMax example thanks recent measure to another large to marine X we the operations. the the in joined stores returned family turnaround is our Although affected the that our including several quick Marine of have past locations years. accomplished, many Midcoast team, Group, teams years about Midcoast the efforts normal businesses ago. the been construction acquired have company strong most West Florida This of has storms, retail outstanding Coast of essentially

significant Sarasota to which itself more Our is requires open, Marina partially Milton store, damage but Hurricane due sustained the work.

rebuilding marina and the of Midcoast repairing the location. of we With in team, process the are this premier support

to Turning our results.

have view increased those markets is in industry days challenges. an allows believe on the the modestly levels, target of faced when us marine in a retail boat the But and process. locations the Fiscal a our insurance on well significant X, a whole to and which be on $X.X in year approximately by year closure sales technology, affected performed to the to prior completion to from Hurricane continue higher. leading recreational inventory by made the our with Helene as of increasing We we X% margin. was was X% elevated in As to of retail investments adversely the integral the softness, revenue service, XXXX Access to training, increase markets store fourth coupled outperforming quarter disclosed October yacht up sales, these in comparable we previously billion industry Helene. Hurricane the insurance absent

we In exclusive partners rights, us best distribution have brands manufacturing to marketing supported with the of and who and in have incentives. relationships the many with business consumer addition

on as it quarter. about of quarter, the the through point and fiscal marina We expense higher-margin gross with operating reduction our a our healthy on are we partly the implemented improving important line, recent remain due leverage. of portfolio, and in Another Superyacht focused as XX% such the aim reflecting of operating finance enhancing adding into more efforts strategy declined $X ongoing in expenses in the of Adjusted reinforces higher-margin margin division. These we our and the million the our insurance, impact the leverage IGY, initiatives to our fourth operations. XXXX. Despite than is performance by top of that third expanding businesses SG&A quarter, our maintained fourth the storm's to performance move rest

and to One consistently with acquire, of successful leadership. strong integrate businesses our is core competencies ability the identify,

Steve Gold XX the Yacht unique of the island Sindalah, one as in Anchor world's was premier planned was Marina and done luxury Recently, over X selected destinations. Sindalah The many NEOM's years IGY. English During the as to Red his received of Steve appointment recently operate by announced Association. a the Marina continues at Yacht related quarter, Sea. is an recognizes of first to has The Sindalah the accreditation yachting recently its resort CEO drive Sindalah opportunity the Harbor IGY, job awarded destinations. Marina growth. outstanding the Club. the the another prestigious award of IGY island we one to the IGY

IGY IGY is Yacht Anchor accreditation. in stopover from one to their completing the Savannah XXX-birth X Marina also Grande the the U.S., on in St. Gold the In Haven Georgia. Platinum those, Harbor Caribbean of ideal were as or progressing Mediterranean. yachts receiving accreditation. With an coveted is X becoming well way for awarded towards known super Additionally, prestigious its locations Thomas, Savannah harbor the in

to agreement with MasterCraft. we through an exchange announced we quarter, the the the asset brand During that were Aviara rights acquiring

transaction distributor We in closed. retail logical assume have the the its Aviara brand, primary launch choice the to been since and us the for XXXX, of recently control making

to more benefiting public We of Bonnie's insights. Mike operational to let As accounting we than evaluate brand. And call me before next I of handing Mike, call noted turn at want to the financial over of an background. X corporate the the forward experience the Director, look will range the August. and Aviara decades from for in original announcement, for the leadership we her as review. formally the extensive governance for joined newest strategy end And includes Board welcome who steps now industries back spans develop Biumi, our to profitable the and a Bonnie a

closure to impacted everyone. Brett, again, people and good X were the communities the I October and acknowledging impacted our by the Coast start Hurricane the fourth revenue hurricanes. want up our of Helene. you, of by with Consistent announcement, quarter in boat insurance leading by markets to also to storm. by West flood Thank our Coupled results morning with was locations, the damage the impacted yacht a and number days

surprisingly, markets most add reflecting revenue same-store were sales. our I X% decline $XXX fourth expectation Prior the in unit industry. in down down for would revenue year's that Geographically, were modestly revenue. the quarter units Florida. As a to exceed despite not to the the declines year result, in in the sizable except quarter approximately was was versus slightly revenue, our our fourth last only would last that well-documented a up million, quarter, storm,

dollars at identified areas. was year's below levels our we the our in growth had margin noteworthy the and expenses the down quarter, is fourth last Although million, revenue release. decreased over below items also of gross remained SG&A percentage because XX.X%. or higher-margin in profit This illustrating since pre-pandemic in earnings are margins excluding strong at gross shortfall, boat $X

quarter, continued fiscal consolidation During steps the the actions, certain fourth plan we in these to to cost We including implement reduction XXXX. locations. retail continue of

a is goal insurance see including get in noted said, in quarter off as with $X.X charge in leverage. Specific fiscal operating the to and first to remains line the earnings focus our input in While continuing to drive XXXX, we a labor, release, damaged That various categories, are costs incurred Hurricane back in to as our year to we million fourth Helene, SG&A assets items. higher other write storm. improved our of percentage

We are December associated should loss in Milton, covered be in insurance. the event. process still determining a with of the quarter the of cases, will which be both much loss But by

$X.X well diluted X, with the or in income unfavorable a ahead to EBITDA net tax future. $XXX.X year per are compensation income originally slightly to expenses Adjusted year or impact adjusted quarter favorable $X.XX anticipated, million the diluted million $X.XX million year. in as noncash million $X.XX our effective release. with the adjusted For fourth basis, The matters, million, $XX.X share was for compared few was items last related On outlined $XX.X namely these that diluted income as taxes, which net October $X.XX compared quarter. of per share foreign was expected EBITDA quarter year. per had the a or quarter Full Fourth share. $XX.X expectations rate of roughly equity adjusted items $XX.X full become was was last million we than increased certain tax in higher the

reduced year-end. Turning and up, $XXX to were Inventories were revenue million the Hurricane Helene. at balance partly cash of over the year-end a at sheet, reflecting result equivalents as cash

plan better net our prior inventory. Customer aging below is as As generally roughly of availability which our from inventories lenders, levels. overall consistent than year-over-year increased historical underscoring which meaningfully represent At debt-to-EBITDA continued financing, Short-term was seasonality floor plan the that XXXX of industry. our year-end, borrowings, about basis, primarily remains strength. the XX% indicated On year, higher Xx, the comparable same-store unit inventory expected inventory, due and our deposits floor given financial to are patterns. cash by with a declined

approximately have of We and unencumbered through $XXX inventory financial to available lines our in million flexibility access further credit.

Turning Based during unit heard fiscal flat. expect business current This on from be we trends consistent thinking about with is to year our participants. have industry other conditions, guidance. we to industry

us. Today, Southeast West the same-store we the of to we sales impact are essentially and of Florida the are an our we on which expect in Coast feeling, to make assuming hurricanes on having fiscal effects the markets, currently disruption However, currently the XXXX flat. business can important those for be up are would

see in initiatives the we of cost seasonally that to fiscal consolidated the expect winter given the to under the to XXs, XXXX. benefiting rates that, operating been season improve summer recognize margins also in that be soft reduction able move increased levels to half leverage second light many we We end our pressure continue plan decline. through maintain through at margins but was are and improvements as inventory dealers. Having the drive we We likely do be the presumably for selling said of tunnel interest to have industry boat months, XXXX how low as

such, for, As things, per income changes weather $XXX expectations and other material in consider expect do among in adjusted fiscal may $X.XX we range unforeseen the million that including adjusted events, global complete net share. of economic and in of effect the conditions. year $XXX not $X.XX we to diluted These other million or give XXXX EBITDA to acquisitions range or

tax and Our as and noncash meaningfully million. percentage. guidance rate of range amortization on XX.X items share wider a more like assumes EBITDA because compensation around count XX.X% is and grow expected annual an The EPS depreciation our a versus stock-based of

Coast an West typically Florida outsized guidance, of we directionally, not role I that quarter. in December While do usually indicate give the would the plays quarterly

to would the storms, to exact quarter today Given the impact the hard I expect the freshness the year. the gauge the is plus X% given negative of of from two have comps storms. December magnitude last versus It very

modelling quarter. use would the caution when December I So

the not I Lastly, perspective, behind comment storms line consumer solid boating year's surprisingly, has remains top all the a uncertainty, that a last Despite reason year. more continued waiting. finish will would The than as it buy versus October. from ever in to October needs now and interest strong

for challenges and that that, Brett over call reasons back XXXX despite find comments. fiscal in to Brett? do during the With turn aims again to we proved XXXX. team those Our closing can I'll the so

Mike. Thanks,

against strategy focused our our portfolio, enhance by delivering we continuing efficient financial and our operations meaningfully remain ahead, drive strengthen on Looking to long-term more profile.

past X revenue. completed representing million years, XX Over about the acquisitions, $XXX have of we high-margin

achieved have segment. broadened rights of performance. brands and portfolio to recognition strategic We've taken and operations strong our several superyacht We our brand exclusive distribution in premium the financial steps and improve

our market store streamlining align with trends. are we First, to network better

These are above the leveraging efficiency gross realize synergies profitability. we industry's tools to organization. best and for are us And position and throughout existing challenges, addition, practices XX%. initiatives growth well finally, developing resources to remain our technology across we Despite In operations. the boost consistently sustainable margins new improved our

take financial provides and to maintain flexibility the We healthy questions. sheet And I strong ratio, that, will Mike for future. which a happy also balance a your be with and leverage

open operator, the for So line please up Q&A.

first Hardiman, Citi. James Our Instructions] from comes question [Operator

you It do about to if think and how first some of on perspective, the components in us seasonally assuming you're difficult, impact bottom maybe and then is hurricanes. first more a seem what fourth possible. XXXX, to if through that is same-store as you It best I quarter of even for of the quarter. Helene from the but pretty line the that your think a sales of it's would of I And gave this, So small. impact the the sort quantify but could quarter already entirety know X

line ago. for I headwinds? given do you made bottom Maybe of those year a you in to $X.XX QX expect us, sort money make all think

out, above to last start our I expected fourth in that -- for think I'll for question. quarter. James. be Thanks year the prepared we remarks, sales The Yes, commented the the was up same-store

mean That's to on it's that impact. closed. $XX expecting would So close. about all we were line the million doesn't that, do if you top a math have what It

heading quarter. So we towards the that's of to were end what expecting the as close we're

really a If you like $X of there's something that Coast, lot that the the really for for Florida, The that, what storms lot do impact infrastructure from Venice damage repaired, whole to roughly. be Coast is needs the you tell. be way bottom line, would repaired going think through The the roughly lot some hard West I of asked forward plus, full flow line year be There's a impact the through West all needs to on million but a of of flooding. that Panhandle. to to the the bottom

doesn't Our guidance get Maybe the are range, all that business that up recovered to things is picking range, you on are could recovered. you back sales argue to maybe top on the everything normal, as boat lower getting Coast. the assume end and West gets closer

West in important everybody give us. the magnitude, XX% Florida to a Roughly, market just overall Coast is is to Florida a the of Coast very our West about of revenue Just that. of half given is about year. any

has of XX% business, about been impacted. which it's So our

December the model about as quarter Historically, a the December always loss. was say, quarter. to question last Your I used

that, You James. would remember

last quarter. usually it's Granted, use that Florida tough going is But for your think, that, December outside unit team XX% quarter, hurricanes. $XXX,XXX I do they year. I industry The now everything for the would a role caution XX%, we which year, like Coast year, you're question quarter to X industry these an the right in by when the modelling was something the in plays perspective. a got answer Our aren't the We've quarter. Trends great. the would quarter made, overall in a West I from a can. lot even saying of of smaller of it's

good for get got little a so holidays. real you kind And quarter I'll a December, October which of James, start loaded and in that runway you November hope add, kick to the are with

out can be strong. want started those start we second always months, October hurricane. good you with Although October a And to

this So said. tough, making as it's just quarter pretty Mike

the that's second take tweaked. the straight That's time. And rate month. helpful. talk finally the back, But about has then. if a a a started rates. a long The it. XX-year we've Obviously, fund to that Got for lowered up all Fed then before XX-year I was long since catalyst been step Fed then wanted mean, gone down I waiting I coming last And

wondering borrowing us month And last, could how was you your average I sort or rates year so a don't have the or on walk customers, course with of so. know, over emphasis if a particular for weighted the through I average progressed the of this

question. Yes. Great

priced off rates retail generally are XX-year. financing the So

retail so points, financing maybe more. little that, are like XXX And something year-over-year, rates a down something like basis

boat buy the some the for a go are even uptick With Actually, partners loans how were. that the in they little They've shows, that where their them maintained to they finance rates haven't lowered may market. XX-year, the banks recent bit. and they adjusted rates boat the

already And some rates. benefit seen from so we've

additional at XXXX. But question, James. answers through think expecting I least benefit go hopefully, everybody was your that as we

fourth does. It give Did apologize one sales? in versus you us price just to units quarter I same-store for And the sneak more.

units down dollars I actually that were did. I were than what said our the down. less

terms And the down out down have for and little industry. dollars, for dollars, drive is look a So industry just us of a doesn't headline the aluminum data which units if keep mind, our bunch in if really driving in of for aluminum for at much. data, important the But It's were sales X% the industry important it when you we're that there. in comes dollars in stores. bit, you

roughly month, fiberglass August are at you if boat down each look and sales, so September boat fiberglass And sales July, XX%. for

we've it chalk that up in so call. the be outperform James. you down our brands, all the to team, we're But industry. a we're bit all a that us in in technology, to quarter, the down little tells little stuff I bit investments talked about the And made Brett operations, the to for continuing

Our Crum, next question from comes Drew Stifel.

it there. of just terms your Can guidance and seeing levels get a next us may of piggybacking embedded interest how few and see that but what just interest business some rate elevated, still to of And the then detail Can want what you're retail you additional you over across to tell rates. separate quarters? course industry question, in as 'XX? concerning sounds is in you fiscal inventory inventory address like off with questions be the cuts It James' the over relates trending

the on selling Drew, draw last that on didn't quite when should think happen. dealers, Yes. call, That when including our wasn't lot -- us season was it inventories, summer said even I Mike a down of inventory.

So still I inventories be of like manufacturers dealers and think like on are level. kind we upcoming could sure need in adjusting for line, the pressure guiding year, to help to get this are get to right it because but trying margins feels there

And The whatever point that place place I baked then in months' up in All can that which or into the the in of or start our for our is cut really XX we future already have XX this is the they XX the cuts about worth we guidance are. or is it's happen. Drew, months year, guidance pick current don't expect but baking thing that's happened, will cuts, on actual rate until X benefit points. basis they good the further months entire whereas at we've question. rates have Obviously, fiscal

year. baked basis XX full points for So the there's in

levels Are the just by going industry of Brett, Got take season? to the Or anticipating beginning longer you it. selling more that? the is normalized up. it And to follow to than retail getting

mean for get back to inventory, retail you To inventory?

inventory. dealer Yes,

us. We here seeing we near retail. coming got numbers where the be hope go could sure probably at. we Until We enter should There last this inventories sit as a we to and going season is, even be of start good kind kept and Yes. industry-wide the that's to anticipate into I where couple the Look, grow just not of on found going but of bottom bit an year, to down, bad, it's know maybe comment, we inventories down, a down. part season it's quarter, that bottom. we're numbers little couple but every that think we of the do months, and we coming are thought spring here depend somewhere bringing

manufacturers, and that with I tough, tough orders think our sales things to with a incentives environment. we're them drive the all help in reflect doing

Our with next Wold Riley from Eric question B. comes Securities.

one, kind expect to And the I what season, activity regions your kind with bit X from start inventories sense to as expect you your some is And competitors? Do play boat show guess promotional you follow-up. of and the you I I are of you have distance the a in, want with to yourself guess, questions. given maintain how I a guess of markets share? see of you where the little that? promotional that would compete to activity of much maybe level

anticipate be we mean will to want promotional inventories people I bring down. activity because that high Yes.

that think and as summer be to will I hopefully, season. get well. they'll But to guide season, I closer to think we come we start that as control high, direction under the spring

consolidate unique the below. to other little said more businesses different that a mean And What some at are in makes is MarineMax or margins than us flexible I allows I to us prepared be make remarks, dealers. the

at. is. below because industry where already inventory You the can out the almost pre-pandemic of the take in levels Margins word are

the think now. I ton a into get point, because so, Brett's you building as And are springtime of to not boats manufacturers

with start of naturally marketplace. the lack into inventory So, wholesale product should coming the coming down

said of ourselves And that some distance from you fray.

get couple some of got models this carry that I help kind think we in with we decades manufacturers manufacturers the inventory wins, even have will And under and new they we've new then ourselves proven higher-end products new coming that year. having you challenges work play with, a coming out out, coming in great game that the distance product to for we've have we can completely. control, once of from models products the

from what you've obviously and to so kind hurricanes consumers place marinas such driver will not But a to that were getting it seen follow-up, the need if And right park boat, your rebuilt hurricanes, takes what to past of guess, than remember, on Are that obviously, start business now anyone get the I then these just focused homes, the coming back? of anything Florida, what past sense given is their I in different guess. in on buy What's that they thing you you biggest business seeing need Do or happen an insurance recovery? for want that's needs their to to back lives a to they it? issue. a have to before you return? wait they together, -- biggest get have start that Do

at Yes. different question damaged some lot see and with down It's home, a their is the being rebuilt more to requirements. We're back the of you up everybody's access probably those are also coming their north than able loaded still back, have a from coming a maybe boats season. getting at little but we to docks of whatnot, not answers. much to thought. marinas starting accessible and for that heavily, lifts kind lot And get then just too One of their of bit challenging are just people a all, some power damaged

this recover. we've some to to lot so And boating. a And storms kind widespread right will out hit trigger. was hard, water. go have they will our don't the it a it This won't maybe some ready want We're seeing back people experienced. everybody's in of boating. sure, other get were stores. take be underestimate stores getting But delay. It on a go in I delay now than need that to some that the time But Even there's of we pretty to politely, more for there them

Joe from James. comes Raymond Altobello, question next Our

So, would are seeing certain than across I'm you're there sluggish obviously. if I guess talked board elevated continued question, because that the I better segments doing product are demand, and first that you curious inventories that imagine about others.

So inventory where that of healthiest maybe seeing the and elaborate this in at you're demand sort point? of kind on

correct? they're get coming old the pressure said New that think them incentive general that segment product, hot more more to product you've of don't I moving. to out, have got models then And single stagnant in a little lot are right? a same we've itself a under and models, a New taken But degree, that's new and over years. there's the all some of kind

been does premium Brett We've a shows overall premium it we Yes. has it shows. as at started ago, But saying boat data -- end seeing and we're challenges. even better. also does the clearly -- end year summertime, seem the the innovation believe But the

continue isn't to do any brands real continue segment. But to well. better. New Powerful models do one

And follow gets better of margins, in that they're Are mentioned just pressure fiscal assuming you terms to the you up under on in still are that that How you about here. thinking 'XX? book spring? in

we winter the for guidance months, little probably of into out clear they consolidated my the because XX% what a for the So, industry months. going XXs. inventory said, believe little in XXXX. elevated the is typically It winter don't dealers but are have to it our keep They and saying below, where margins that there below inventory the much in wouldn't lot were below surprise about a wasn't not really is low we be really me that, that if came going a

feel to as that's we're going drive hope guidance last we've We got what at so, baked may to extra increased some down are And figures. a little retail March, margins the could shows, stress the thinking further. that bit but between get the case, into of we dealers probably our happens subside pressure really February and be. with quarter get inventory into way now you into through begins subside then. levels the you maybe June then as all level should think And that should not and where January, And boat given

manufacturers be on, upside our working When margins selling our we're and That's of at part you season. Yes. the with able heaviest look to want some at to goal. our everything orders the have to we

on just if inventory. And one could, I more,

it selling into like 'XX or with start would If season. summer inventory with inventory same you obviously, year expect you the even the flattish, coming you ending the plays out higher next to fiscal in mentioned You heading anticipate down, year? expect your comps

question. great a it's No, actually

increases assume down basically price to on and from from September not currently we're on what September inventories a flattish we're just is what September, would go basis receiving or the from manufacturers, will increases buying year-over-year With that come to we based up September, today. our forecast that

question next from Fred Wolfe Wightman, Our comes Research.

-- few on to I it. come be clear a I this has times. want just just up

So the next from environment, based months. over accelerates across perspective expectation industry, your few you're on what an the the that speaking, inventory is broadly seeing promotional

should new And a here? in decrease from so margins see we boat

Yes.

use pretty -- the I I'd word but try of that because margins that pressure the but will Is slower be there's during a think heavy continue there's move -- don't promotional activity chance I know time it under year. to accelerate, that -- to could think we

just partners It's seasonally, less they're fund out banking buying we their hear are there inventory our Yes. granted, -- a lot forward. And that there's purchases. from for of who dealers many product these so going

they're don't and February. northern for now between sell that, -- February and going some. everybody on knows boat January, think think they and then And don't certainly get they the think it shows now the and dealers, they because sell lot I we a sitting between still better models. And some show just older boat January in won't but -- we get it's any to

is if -- could pressure probably -- be So -- the under expectation margins I it a a probably in you're excuse near prudent me, little not prudent it's it's a term. think

just quarter. Are levels a back there also -- it talked 'XX to Or right know I offsetting still higher is cuts comment is script? that And percentage actually in release on performance that you inflation it? the think about about was incremental sense. Are range? that just that better during a of these as makes those sort cost in the percentage SG&A about of you to the way cost within cuts That getting gross. Okay. that of touched had the some

Yes, it's good actually a really question.

So closed consolidated X X September we quarters, last have stores of the in over couple and the quarter.

lower, getting touch vendor of the costs while that partly bring doing renegotiated and reduced of where The just and our challenge as within P&L. is we members looked still can We I also, you we've as relationship prepared remarks, been the inflation there's hard elements is given in within we're to is, just every industry the component every that, down. to is try about all have inflation mentioned where number team at

roughly much all we're And which basis around to XX%. so as were working Can Do there? very percentage, on. XX% to there? to be a That's That's to still get is we get an We there, halfway back XXXX. on strive challenge. is going our we in way get adjusted a partway goal XXXX the

margins for bit, and to real the kind we're around little business Fred, that cost but the working we're organization in you continue the and the leverage the the some inflation dancing with business. for I'm to operating of to done, of So improve offset a of we've going opportunities sure cuts to specifics, giving any the look within operating

Swartz Michael from comes Securities. with question next Our Truist

on This Mike. for is Adam

Just going back to the cost cutting.

of is First, I called out million run annualized $XX rate last $XX you've just kind to wondering, an like think quarter. from like million

more, far I any lower plan if or as still the wondering the could effects floor be kind there from if expenses guess, go? cost Just as rate cuts of that's expectation

$XX at wasn't The all. million interest to just SG&A. $XX Yes. was It million

is point. that's have The perspective that out good a and good still the No, get very much dollar some in targeting you So come creep other additional of where organization. question challenge in. costs from we're to

last what's in where between versus of is is I So in -- just Fred where XXXX. the now to someplace net call my our a percentage what with those as SG&A it is was referred

from D.A. next Bryan, question Davidson. Our comes Griffin

both assumed QX in retail by square would assumptions end high the clarification the said that and regarding of recovered of and lost for everything QX the assuming then impacts, be low think So you the high I the the Helene year. for guidance, you're end just can And guidance, the on end? you for

like that way the is it? So right to about think

actually it's Yes, a question. good

right assumptions, West it's same-store It's Coast necessarily Florida right the we up clear And is now XXXX. retail It because of So business fine for we're assumes now have that. make made we the quarters. storms, It sales I industry of probably at up the doesn't flattish the said on make like on that disruption flattish in not for the what we the -- assuming -- assuming It's is next for that. low specifically think that's of it. we is the that up our made -- the wasn't from based as impacting guidance X some a that us assume meant. should as end

of guidance end, little X range. Our our big negative to a the flattish, you margins on the would get -- to maybe lower closer to assumption. maybe margin million of along the and flattish low EBITDA, the end And would the then $XXX are we're get Margins impact range above with bit, the -- around something bit certainly, imply slightly down a $XXX million business. a on have little down it's on better

and it. like it on the spoken with for same the Got of markets from that aren't affected dealers guys in claims assuming the uplift much boats insurance OEMs Or the during of there Are expecting we've storms. you later opportunity And affected an in year? upside is were thing? seems other then kind

question. of by have out point data with kind destroyed. good around boats Normally, some the a type It's of now, come insurance number carriers the of

The some on. cycle. are all good that lot replacement always not storms, to gauge. usually working that of a working lot have number which is of yet. then the already data earnings in on. boats what the past stores service for work, a be of it certainly but point I there's good is. large that just hard service time. timing And customers, our We unfortunate replaced There's revenue been know destroyed. It's of real There it don't is level that a and over work that the destroyed is certainly we'll for of is But replacement it's get seen cycle

expect over time longer drag seems a to to. period It than it of always we

Our next North John coast Research. question from comes Healy,

to one a us from M&A. about for like at maybe sort looks now know, of ask what leveling the kind how you feel don't Any I I about me. on just business is bit. out wanted like you thinking capital forward can of, color pipeline and Just going that give question the kind least of you're allocation an standpoint little industry

pretty is Your leverage low.

lower-rate got You've a environment.

on into marinas? of you of you trying you thinking might lean the active kind Do lean may there. kind stores? what about do more or Just you actionable historical about you Just into the to more think manufacturing lean front? guys And side? into how do M&A Do be

Yes.

lot enhance opportunities, type IGY So and the opportunistic a looking real portfolio. a continuing Marinas pipeline could of that acquisitions be do to come and keeping different for could at some things of We at available. that the to pipeline have look continue full. There

So out dealership tough it's there. a business, environment

So IGY we'll of there's and opportunities. for it's superyacht as look And lot active, the international on available side, opportunities a well.

in So focus here near that the be probably term. we will where

David from comes MacGregor, question next Research. Longbow Our

this to of I just margins with to the gross clearly, well. about the be boat business. service is margin wanted guess down. I the side service ask XX% performing side The quarter, And seems

your in everything to that the earlier the that there. outlook service reconstruction and alluded You response given on an be good would just goes question

transformation bottom grow boat been both few for that heaven how next XXXX. I here guess and portfolio we that back of your that revenues I rate underway your organically to wondering margins? develops, in a let's above years annual a slightly for level, say on forbid, XXX,XXX opportunity dependent if guess along sales. service the unit on within grow get don't bump offering but less sales. mean, scenario MarineMax you're that, And that the Just just you're or thinking about and kind on a I the and now, at higher of that, while on that's terms I we given view here boat to mean,

like over moved do question. we've saying. many to to Thanks here What down, set to the higher net with boat. structurally the up exactly made you're price the the worth related years is up point industry of higher We strategically if a actually diversify these last feel moves the businesses us consumer, for we've what

also offerings services the service But part to to the yacht to from now also service, super yacht yacht and charter range businesses, we at super boat that the our offerings customers yacht Our of even service boats for wants maintain But yacht management, a IGY. our if side sell do and in super keep to within broker we somebody marinas, it. maybe them, it. compliant is better it businesses, facilities the and their

And in X somebody to they when might yacht, or season. new buy a mood go charters so the not super might over the do X be

resilient a within kind of So business itself. that's

kind we down, it. to enhance it. levels strategic part the move So we industry playing in of and have we're a great setup we'll continue the for are right was if the that made, of And

constrained can work the upside opportunity, we of do just by is straight the side, facilities servicing On you're is at, there. that there upside there that but the boat all some there and but

like now McGill turn to to Mr. remarks. would back for I closing call the

having you look for It traffic everybody, good be thanks, our great a on for to the Boat Well, Show. us. here we Lauderdale Thanks joining We're updating show, at looks joining call. us. forward Fort to and next

teleconference. participation. Thank you you. does today's thank for conclude your We This

disconnect lines may your time. this at You