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What changed in MARINEMAX INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of MARINEMAX INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+265 added−261 removedSource: 10-K (2024-11-14) vs 10-K (2023-11-17)

Top changes in MARINEMAX INC's 2024 10-K

265 paragraphs added · 261 removed · 227 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

91 edited+20 added−13 removed157 unchanged
Biggest changeThe following table sets forth certain of our current product lines that we have added to our existing locations during the years indicated. 3 Product Line Fiscal Year Current Geographic Regions Boston Whaler 1998 West Central Florida, Stuart, Florida, and Dallas, Texas Grady-White 2002 Houston, Texas Boston Whaler 2004-2005 North and South Carolina (2004), Houston, Texas (2005) Azimut 2006 Northeast United States from Maryland to Maine Boston Whaler 2006 New York Grady-White 2006-2010 Pensacola, Florida (2006), Jacksonville, Florida (2010) Azimut 2008 Florida Boston Whaler 2009-2012 Southwest Florida (2009), Pompano Beach, Florida (2012) Harris 2010 Missouri, Minnesota, and New Jersey Nautique by Correct Craft 2010 West Central Florida and Minnesota Harris 2011-2012 West Central Florida (2011), Alabama (2012), North and Southwest Florida (2012), and Texas (2012) Crest 2011-2018 Georgia (2011), Oklahoma (2012), North Carolina and South Carolina (2012), New Jersey (2015), Florida (2018) Azimut 2012 United States other than where previously held Scout 2012 Southeast Florida, Maryland, and New Jersey Sailfish 2013 Connecticut, New Jersey, North Carolina, Ohio, and Rhode Island Ocean Alexander Yachts 2014 Eastern United States Scout 2014 Texas, New York Aquila 2014 Worldwide, excluding China Galeon 2015 North America, Central America, and South America Grady-White 2016 Miami, Florida Boston Whaler 2016 Parts of Massachusetts, Connecticut, and Rhode Island Yamaha Jet Boats 2017 Georgia, North Carolina, and South Carolina Bennington 2017 South Carolina Mastercraft 2018-2021 South Carolina (2018), Wisconsin and Illinois (2021) Tigé 2018-2019 Orlando, Florida, Oklahoma, and Georgia Aviara 2019 United States MJM Yachts 2019 Florida Dargel 2019 Texas Kawasaki 2019 Texas ATX Surf Boats 2020-2021 Orlando, Florida, Oklahoma, and Georgia Bayliner 2019-2021 Texas (2019); Wisconsin, Illinois, Michigan and Ohio (2021) Barletta 2021 Wisconsin, Illinois, Detroit, and Michigan Four Winns 2021 Wisconsin, Illinois, Ohio and Detroit, Michigan Harris 2021 Wisconsin, Illinois, Grand Rapids, Michigan and Ohio HeyDay Inboards 2021 Wisconsin, Illinois, Michigan and Ohio Tigé 2021 Wisconsin and Illinois Scarab 2021 Wisconsin, Illinois, Michigan and Ohio ATX Surf Boats 2021 Wisconsin and Illinois Sea Ray 2021 Wisconsin, Illinois, Michigan, and Ohio Starcraft 2021 Wisconsin, Illinois & Michigan Sylvan 2021 Wisconsin, Illinois, & Eastern Michigan Tiara 2021 Wisconsin, Illinois, Michigan, California & Ohio Princess 2021 California and Seattle, Washington Yamaha Jet Boats 2021 Wisconsin Edgewater 2021 Newport Beach, California Gran Turismo 2021 Michigan and Ohio Antares 2021 Michigan and Ohio Beneteau Flyer 2021 Michigan and Ohio Cruisers Yachts (1) 2021 Worldwide Chris-Craft, Moomba, Supra 2021 Minnesota Saxdor 2021 North America Bertram 2021 United States and Canada with certain exceptions Premier 2021-2022 Minnesota (2021), Texas (2022) Mastercraft 2021-2022 Wisconsin and Illinois (2021), Minnesota (2021), North Texas (2022) Boston Whaler 2022 Minnesota Intrepid Powerboats (1) 2022 Worldwide Wider Yachts 2022 North America World Cat 2022 Wisconsin, Illinois, & Michigan Cobalt 2023 Minnesota Premier 2023 Georgia Boston Whaler 2023 North Carolina and South Carolina (1) Product line owned by MarineMax We add brands with the intent to either offer a migration path for our existing customer base or fill a gap in our product offerings.
Biggest changeProduct Line Fiscal Year Current Geographic Regions Boston Whaler 1998 West Central Florida, Stuart, Florida, and Dallas, Texas Grady-White 2002 Houston, Texas Boston Whaler 2004-2005 North and South Carolina (2004), Houston, Texas (2005) Azimut 2006 Northeast United States from Maryland to Maine Boston Whaler 2006 New York Grady-White 2006-2010 Pensacola, Florida (2006), Jacksonville, Florida (2010) Azimut 2008 Florida Boston Whaler 2009-2012 Southwest Florida (2009), Pompano Beach, Florida (2012) Harris 2010 Missouri, Minnesota, and New Jersey Nautique by Correct Craft 2010 West Central Florida and Minnesota Harris 2011-2012 West Central Florida (2011), Alabama (2012), North and Southwest Florida (2012), and Texas (2012) Azimut 2012 United States other than where previously held Scout 2012 Southeast Florida, Maryland, and New Jersey Sailfish 2013 New Jersey Ocean Alexander Yachts 2014 Eastern United States Scout 2014 Texas, New York Aquila 2014 North America, South America and Caribbean Galeon 2015 North America, Central America, and South America Grady-White 2016 Miami, Florida Boston Whaler 2016 Parts of Massachusetts, Connecticut, and Rhode Island Yamaha Jet Boats 2017 Georgia, North Carolina, and South Carolina Bennington 2017 South Carolina Mastercraft 2018-2021 South Carolina (2018), Wisconsin and Illinois (2021) MJM Yachts 2019 Florida, Missouri, Massachusetts, North Carolina, South Carolina and Georgia Bayliner 2019-2021 Texas (2019); Wisconsin, Illinois, Michigan and Ohio (2021) Barletta 2021 Wisconsin, Illinois, Detroit, and Michigan Four Winns 2021 Wisconsin, Illinois, Ohio and Detroit, Michigan Harris 2021 Wisconsin, Illinois, Grand Rapids, Michigan and Ohio Sea Ray 2021 Wisconsin, Illinois, Michigan, and Ohio Starcraft 2021 Wisconsin, Illinois & Michigan Sylvan 2021 Wisconsin, Illinois, & Eastern Michigan Tiara 2021 Wisconsin, Illinois, Michigan, California & Ohio Princess 2021 California and Seattle, Washington Yamaha Jet Boats 2021 Wisconsin Edgewater 2021 Newport Beach, California Gran Turismo 2021 Michigan and Ohio Antares 2021 Michigan and Ohio Beneteau Flyer 2021 Michigan and Ohio Cruisers Yachts (1) 2021 Worldwide Chris-Craft, Moomba, Supra 2021 Minnesota Saxdor 2021 North America Bertram 2021 United States and Canada with certain exceptions Premier 2021-2022 Minnesota (2021), Texas (2022) Mastercraft 2021-2022 Wisconsin and Illinois (2021), Minnesota (2021), North Texas (2022) Boston Whaler 2022 Minnesota Intrepid Powerboats (1) 2022 Worldwide Wider Yachts 2022 North America World Cat 2022 Wisconsin, Illinois, & Michigan Cobalt 2023 Minnesota Premier 2023 Georgia Boston Whaler 2023 North Carolina and South Carolina Aviara (1) 2019-2024 United States (2019), Worldwide (2024) (1) Product line owned by MarineMax We add brands with the intent to either offer a migration path for our existing customer base or fill a gap in our product offerings.
In addition, we plan to continue to expand our other traditional services, including conducting used boat sales at our retail locations, at offsite locations, and digitally; selling related marine products, including engines, trailers, parts, and accessories at our retail locations and at various offsite locations; providing maintenance, repair, and storage services at most of our retail locations; offering our 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 our retail locations and at various offsite locations; offering boat storage; conducting our yacht charter business; and manufacturing sport yacht and yachts.
In addition, we plan to continue to expand our other traditional services, including conducting used boat sales at our retail locations, at offsite locations, and digitally; selling related marine products, including engines, trailers, parts, and accessories at our retail locations and at various offsite locations; providing maintenance, repair, and storage services at most of our retail locations; offering 4 our 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 our retail locations and at various offsite locations; offering boat storage; conducting our yacht charter business; and manufacturing sport yacht and yachts.
We sell used boats at our retail locations, online, and at various third-party marinas and other offsite locations; we sell marine engines and propellers, primarily to our retail customers as replacements for their existing engines and propellers; we sell a broad variety of parts and accessories at our retail locations and at various offsite locations, and through our print catalog; we offer maintenance, repair, and slip and storage rentals at most of our retail locations; we offer finance 1 and insurance products at most of our retail locations and at various offsite locations and to our customers and independent boat dealers and brokers; we offer boat and yacht brokerage sales at most of our retail locations and at various offsite locations; and we conduct a charter business, which is based in the British Virgin Islands, in which we offer customers the opportunity to charter third-party and Company owned power catamarans.
We sell used boats at our retail locations, online, and at various third-party marinas and other offsite locations; we sell marine engines and propellers, primarily to our retail customers as replacements for their existing engines and propellers; we sell a broad variety of parts and accessories at our retail locations and at various offsite locations, and through our print catalog; we offer maintenance, repair, and slip and storage rentals at most of our retail locations; we offer finance and insurance products at most of our retail locations and at various offsite locations and to our customers and independent boat dealers and brokers; we offer boat and yacht brokerage sales at most of our retail locations and at various offsite locations; and we conduct a charter business, which is based in the British Virgin Islands, in which we offer customers the opportunity to charter third-party and Company owned power catamarans.
Our waterfront retail locations, most of which include marina-type facilities and docks at which we display our 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 our other locations are in close proximity to water.
Our waterfront retail locations, most of which include marina-type facilities and docks at which we display our 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 10 various boat models. Most of our other locations are in close proximity to water.
Katharine Docks France IGY Sète Marina IGY Vieux – Port de Cannes Italy, Sardinia IGY Portisco Marina Marina Di Porto Cervo Mexico Marina Cabo San Lucas Panama Red Frog Beach Island Marina Providenciales, Turks & Caicos Blue Haven Marina Kingdom of Saudi Arabia NEOM Sindalah Island Spain IGY Málaga Marina Málaga Marina San Andres IGY Ibiza Marina St.
Katharine Docks France IGY Sète Marina IGY Vieux – Port de Cannes Italy, Sardinia IGY Portisco Marina Marina Di Porto Cervo Mexico Marina Cabo San Lucas Panama Red Frog Beach Island Marina Providenciales, Turks & Caicos Blue Haven Marina Kingdom of Saudi Arabia Sindalah Marina Spain IGY Málaga Marina Málaga San Andres Marina IGY Ibiza Marina St.
In addition, certain of our retail locations are located on waterways that are subject to federal or state laws regulating navigable waters (including oil pollution prevention), fish and wildlife, and other matters. Three of the properties we own were historically used as gasoline service stations.
In addition, certain of our retail locations are located on waterways that are subject to federal or state laws regulating navigable waters (including oil pollution prevention), fish and wildlife, and other matters. 15 Three of the properties we own were historically used as gasoline service stations.
Sales representatives use the platform to gain strategic competitive insights, 13 automatically generate follow-up activities, facilitate the availability of Company-wide products and services and monitor the maintenance and service needs of customers’ boats. Company representatives also utilize the platform to provide financing and insurance products, proactively schedule services and continually communicate with customers.
Sales representatives use the platform to gain strategic competitive 13 insights, automatically generate follow-up activities, facilitate the availability of Company-wide products and services and monitor the maintenance and service needs of customers’ boats. Company representatives also utilize the platform to provide access to financing and insurance products, proactively schedule services and continually communicate with customers.
State Waterfront properties California Newport Bay San Diego Bay Richardson Bay Connecticut Norwalk Harbor Westbrook Harbor Florida Intracoastal Waterway Atlantic Ocean Boca Ciega Bay Caloosahatchee River Naples Bay Tampa Bay Pensacola Bay Saint Andrews Bay Georgia Lake Lanier Wilmington River Illinois Lake Michigan Lake Marie Maryland Chesapeake Bay Massachusetts Town River Michigan Saginaw River Lake St.
State Waterfront properties California Newport Bay San Diego Bay Richardson Bay Connecticut Norwalk Harbor Westbrook Harbor Florida Intracoastal Waterway Atlantic Ocean Boca Ciega Bay Caloosahatchee River Naples Bay Tampa Bay Pensacola Bay Saint Andrews Bay Florida Keys Georgia Lake Lanier Wilmington River Illinois Lake Michigan Lake Marie Maryland Chesapeake Bay Massachusetts Town River Michigan Saginaw River Lake St.
Technology Platform We believe that our technology platform, which is utilized by our companies and dealerships and that is continually developed with the latest capabilities, strategically enhances our ability to integrate successfully the operations of our companies and future acquisitions, facilitates the interchange of information, and enhances cross-selling opportunities throughout our company.
Technology Platform We believe that our technology platform, which is utilized by our companies and dealerships and that is continually developed with the latest capabilities, strategically enhances our ability to successfully integrate the operations of our companies and future acquisitions, facilitates secure interchange of information, and enhances cross-selling opportunities throughout our company.
We strive to maintain our core values of high customer service and satisfaction and plan to continue to pursue strategies that we believe will enable us to achieve long-term success and growth. We believe our expanded product offerings have strengthened our 4 same-store sales growth.
We strive to maintain our core values of high customer service and satisfaction and plan to continue to pursue strategies that we believe will enable us to achieve long-term success and growth. We believe our expanded product offerings have strengthened our same-store sales growth.
Our ethical 16 and social responsibility is guided by our MarineMax culture and values which are honesty, trust, loyalty, professionalism, consistency, always do what is right, treat others as we want to be treated, and always consider the long term.
Our ethical and social responsibility is guided by our MarineMax culture and values which are honesty, trust, loyalty, professionalism, consistency, always do what is right, treat others as we want to be treated, and always consider the long term.
McLamb has served as Executive Vice President of MarineMax since October 2002, as Chief Financial Officer since January 23, 1998, as Secretary since April 5, 1998, and as a Director since November 1, 2003. Mr. McLamb served as Vice President 17 and Treasurer of the Company from January 23, 1998 until October 22, 2002. Mr.
McLamb has served as Executive Vice President of MarineMax since October 2002, as Chief Financial Officer since January 23, 1998, as Secretary since April 5, 1998, and as a Director since November 1, 2003. Mr. McLamb served as Vice President and Treasurer of the Company from January 23, 1998 until October 22, 2002. Mr.
We also sell used boats at various marinas and other offsite locations throughout the country. 7 To further enhance our used boat sales, we offer extended warranty plans generally available for used boats less than nine years old.
We also sell used boats at various marinas and other offsite locations throughout the country. To further enhance our used boat sales, we offer extended warranty plans generally available for used boats less than nine years old.
McGill began his professional career with a software development firm, Integrated Dealer Systems, prior to joining MarineMax in 1996. William Brett McGill is the son of William H. McGill, Jr. Michael H.
McGill began 17 his professional career with a software development firm, Integrated Dealer Systems, prior to joining MarineMax in 1996. William Brett McGill is the son of William H. McGill, Jr. Michael H.
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. Bennington offers what we believe to be industry leading design, craftsmanship, and a quiet, smooth, ride.
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 high levels of quality, safety, style and comfort to meet family recreational needs. Bennington offers what we believe to be industry leading design, craftsmanship, and a quiet, smooth, ride.
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 our select retail dealership locations and through independent dealers, and Intrepid Powerboats.
As of September 30, 2024, the Product Manufacturing segment included activity of Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufacturing sport yacht and yachts with sales through our select retail dealership locations and through independent dealers, and Intrepid Powerboats.
Retail Locations We sell our recreational boats and other marine products and offer our 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.
Retail Locations We sell our recreational boats and other marine products and offer our related boat services through over 75 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.
Langbehn was appointed as an executive officer of MarineMax by our Board of Directors in October 2022. Previously he served as Vice President of Operations beginning in October of 2018. Mr. Langbehn has excelled in numerous positions of increasing responsibility including Sales Consultant, Sales Manager, General Sales Manager, General Manager, and Regional President since joining MarineMax in 2002. 18
Langbehn was appointed as an executive officer of MarineMax by our Board of Directors in October 2022. Previously he served as Vice President of Operations beginning in October of 2018. Mr. Langbehn has excelled in numerous positions of increasing responsibility including Sales Consultant, Sales Manager, General Sales Manager, General Manager, and Regional President since joining MarineMax in 2002. Manuel A.
Petersburg United States, New York North Cove Marina at Brookfield Place United States Virgin Islands, Saint Thomas Yacht Haven Grande American Yacht Harbor 11 Operations Dealership Operations and Management We have adopted a generally decentralized approach to the operational management of our dealerships.
Petersburg United States, Georgia IGY Savannah Harbor Marina United States, New York North Cove Marina at Brookfield Place United States Virgin Islands, Saint Thomas Yacht Haven Grande American Yacht Harbor 11 Operations Dealership Operations and Management We have adopted a generally decentralized approach to the operational management of our dealerships.
MarineMax commenced operations as a result of the March 1, 1998 acquisition of five previously independent recreational boat dealers. Since that time, we have acquired 33 additional previously independent recreational boat dealers, multiple marinas, five boat brokerage operations, five superyacht service companies, two full-service yacht repair operations, and two boat and yacht manufacturers.
MarineMax commenced operations as a result of the March 1, 1998 acquisition of five previously independent recreational boat dealers. Since that time, we have acquired 35 additional previously independent recreational boat dealers, multiple marinas, five boat brokerage operations, six superyacht service companies, two full-service yacht repair operations, and two boat and yacht manufacturers.
F&I Products At each of our retail locations and at various offsite locations where applicable, we offer our 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”).
F&I Products At each of our retail locations, various offsite locations, and through Newcoast Financial Services, where applicable, we offer our 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”).
With a variety of designs and options, Nautique, Tigé, 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.
With a variety of designs and options, Nautique 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.
Ski Boats . The ski boats we offer are Nautique by Correct Craft, Tigé, 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.
Ski Boats . The ski boats we offer are Nautique by Correct Craft 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.
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 we sell new and used recreational boats, including pleasure and fishing boats, with a focus on premium brands in each segment.
As of September 30, 2024, the Retail Operations segment included the activity of over 75 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 we sell new and used recreational boats, including pleasure and fishing boats, with a focus on premium brands in each segment.
Sales of new Azimut boats and yachts accounted for approximately 11% of our revenue in fiscal 2023. Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufactures sport yacht and yachts with sales through our select retail dealership locations and through independent dealers. Intrepid Powerboats, a MarineMax company, manufactures powerboats and sells through a direct-to-consumer model.
Sales of new Azimut boats and yachts accounted for approximately 8% of our revenue in fiscal 2024. Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufactures sport yacht and yachts with sales through our select retail dealership locations and through independent dealers. Intrepid Powerboats, a MarineMax company, manufactures powerboats and sells through a direct-to-consumer model.
Based on these factors and previous depressed economic conditions, we have closed 77 retail locations since March 1998 which includes the 2008 financial crisis, excluding those opened on a temporary basis for a specific purpose and including 3 during the last three fiscal years.
Based on these factors and previous depressed economic conditions, we have closed 82 retail locations since March 1998 which includes the 2008 financial crisis, excluding those opened on a temporary basis for a specific purpose and including 7 during the last three fiscal years.
We offer recreational boats in most market segments, but have a particular focus on premium quality pleasure boats and yachts as reflected by our fiscal 2023 average new boat sales price of approximately $306,000, an increase from approximately $256,000 in fiscal 2022, compared with an estimated industry average selling price for calendar 2022 of approximately $84,000 based on industry data published by the National Marine Manufacturers Association.
We offer recreational boats in most market segments, but have a particular focus on premium quality pleasure boats and yachts as reflected by our fiscal 2024 average new boat sales price of approximately $327,000, an increase from approximately $306,000 in fiscal 2023, compared with an estimated industry average selling price for calendar 2023 of approximately $90,000 based on industry data published by the National Marine Manufacturers Association.
Product Line and Trade Name Overall Length Manufacturer Suggested Retail Price Range E-Power Yachts Wider Yachts 92' to 230' 10,000,000+ Motor Yachts Azimut 42' to 120'+ 1,600,000 to 26,000,000+ Ocean Alexander Yachts 88’ to 120’+ 10,00,000 to 25,000,000+ Princess 35' to 95'+ 700,000 to 10,000,000+ Pleasure Boats Sea Ray 19’ to 40’ 58,000 to 1,200,000+ Bayliner 15' to 24' 20,000 to 110,000 Cobalt 23' to 35' 110,000 to 500,000 Chris-Craft 24' to 28' 220,000 to 330,000 Aquila 28’ to 72’ 300,000 to 7,000,000+ Galeon 32’ to 80’ 750,000 to 8,500,000+ Saxdor 20' to 32' 50,000 to 470,000 MJM Yachts 35’ to 50’+ 700,000 to 1,500,000+ Aviara 32’ to 40’ 500,000 to 1,300,000+ Cruisers Yachts (1) 34' to 60' 700,000 to 3,800,000+ Tiara 34' to 60' 600,000 to 3,500,000+ Four Winns 20' to 38' 60,000 to 600,000+ Intrepid Powerboats (1) 30' to 51' 330,000 to 2,000,000+ Pontoon Boats Harris 19’ to 30’ 50,000 to 250,000+ Crest 20’ to 27’ 50,000 to 250,000+ Bennington 17’ to 30’ 30,000 to 350,000 Barletta 20' to 28' 60,000 to 250,000 Premier 21' to 33' 50,000 to 375,000 Starcraft 18' to 25' 25,000 to 100,000 Sylvan 18' to 25' 25,000 to 100,000 Fishing Boats Boston Whaler 13’ to 42’ 20,000 to 2,000,000 Bertram 28' to 39' 350,000 to 1,200,000 Grady White 18’ to 45’ 60,000 to 1,800,000 Scout 17’ to 53’ 50,000 to 3,500,000+ Sailfish 19’ to 36’ 120,000 to 700,000+ Ski Boats Nautique by Correct Craft 20’ to 25’ 170,000 to 450,000+ Tigé 20’ to 25’ 160,000 to 270,000 ATX Surf Boats 20’ to 24’ 120,000 to 160,000 Mastercraft 20’ to 26’ 140,000 to 430,000 Jet Boats Yamaha Jet Boats 19’ to 27’ 40,000 to 160,000 Scarab 16' to 28' 40,000 to 150,000 (1) Product line owned by MarineMax E-Power Yachts .
Product Line and Trade Name Overall Length Manufacturer Suggested Retail Price Range E-Power Yachts Wider Yachts 92' to 230' 10,000,000+ Motor Yachts Azimut 42' to 120'+ 1,600,000 to 26,000,000+ Ocean Alexander Yachts 88’ to 120’+ 10,00,000 to 25,000,000+ Princess 35' to 95'+ 700,000 to 10,000,000+ Yacht Tenders Williams Jet Tenders 9’ to 20’ 30,000 to 250,000+ Pleasure Boats Sea Ray 19’ to 40’ 58,000 to 1,200,000+ Bayliner 15' to 24' 20,000 to 110,000 Cobalt 23' to 35' 110,000 to 500,000 Chris-Craft 24' to 28' 220,000 to 330,000 Aquila 28’ to 72’ 300,000 to 7,000,000+ Galeon 32’ to 80’ 750,000 to 8,500,000+ Saxdor 20' to 40' 50,000 to 600,000 MJM Yachts 35’ to 50’+ 700,000 to 2,000,000+ Aviara (1) 28’ to 40’ 250,000 to 1,300,000+ Cruisers Yachts (1) 34' to 60' 700,000 to 3,800,000+ Tiara 34' to 60' 600,000 to 3,500,000+ Four Winns 20' to 38' 60,000 to 600,000+ Intrepid Powerboats (1) 30' to 51' 330,000 to 2,000,000+ Pontoon Boats Harris 19’ to 30’ 50,000 to 250,000+ Crest 20’ to 27’ 50,000 to 250,000+ Bennington 17’ to 30’ 30,000 to 350,000 Barletta 20' to 28' 60,000 to 250,000 Premier 21' to 33' 50,000 to 375,000 Starcraft 18' to 25' 25,000 to 100,000 Sylvan 18' to 25' 25,000 to 100,000 Fishing Boats Boston Whaler 13’ to 42’ 25,000 to 2,000,000+ Bertram 28' to 39' 350,000 to 1,300,000 Grady White 18’ to 45’ 80,000 to 1,900,000 Scout 17’ to 53’ 50,000 to 3,500,000+ Sailfish 19’ to 36’ 120,000 to 700,000+ Ski Boats Nautique by Correct Craft 20’ to 25’ 170,000 to 525,000+ Mastercraft 20’ to 26’ 140,000 to 430,000 Jet Boats Yamaha Jet Boats 19’ to 27’ 40,000 to 160,000 (1) Product line owned by MarineMax E-Power Yachts .
We continually attempt to enhance our 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.
Acquired dealers operate under the MarineMax name. We continually attempt to enhance our 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.
Croix River Cross Lake Missouri Lake of the Ozarks New Jersey Barnegat Bay Little Egg Harbor Bay Little Egg Harbor Bay Manasquan River New York Huntington Harbor North Carolina Masonboro Inlet Ohio Lake Erie Oklahoma Grand Lake Rhode Island Newport Harbor South Carolina Lake Wylie Texas Clear Lake Lake Lewisville Washington Lake Union Wisconsin Sturgeon Bay Lake Mendota Kinnickinnic River Lake Butte Des Mortes Additionally, through IGY Marinas we own and manage luxury marinas situated around the world.
Clair Cass Lake Spring Lake Lake Fenton Minnesota Lake Minnetonka Cross Lake Missouri Lake of the Ozarks New Jersey Barnegat Bay Manasquan River Little Egg Harbor Bay New York Huntington Harbor North Carolina Masonboro Inlet Ohio Lake Erie Oklahoma Grand Lake Rhode Island Newport Harbor South Carolina Lake Wylie Texas Clear Lake Lake Lewisville Washington Lake Union Wisconsin Sturgeon Bay Lake Mendota Kinnickinnic River Lake Butte Des Mortes Additionally, through IGY Marinas we own and manage luxury marinas situated around the world.
Retail sales of new and used boats, engines, trailers, and accessories accounted for approximately $47.3 billion of these sales in 2022 based on industry data from the National Marine Manufacturers Association. The highly-fragmented retail boating industry generally consists of small dealers that operate in a single market and provide varying degrees of merchandising, professional management, and customer service.
Retail sales of new and used boats, engines, trailers, and accessories accounted for approximately $45.4 billion of these sales in 2023 based on industry data from the National Marine Manufacturers Association. The highly-fragmented retail boating industry generally consists of small dealers that operate in a single market and provide varying degrees of merchandising, professional management, and customer service.
The following table sets forth information regarding the businesses that we have acquired and their geographic regions from fiscal year 2011 through September 30, 2023.
The following table sets forth information regarding the businesses and assets that we have acquired and their geographic regions from fiscal year 2011 through September 30, 2024.
Sales of new Sea Ray and Boston Whaler boats accounted for approximately 11% and 11%, respectively, of our revenue in fiscal 2023. No purchases of new boats and other marine related products from any other manufacturer accounted for more than 10% of our revenue in fiscal 2023.
Sales of new Sea Ray and Boston Whaler boats accounted for approximately 9% and 9%, respectively, of our revenue in fiscal 2024. No purchases of new boats and other marine related products from any other manufacturer accounted for more than 10% of our revenue in fiscal 2024.
IGY Marinas maintains a network of luxury marinas situated in yachting and sport fishing destinations around the world. IGY Marinas has high standards for service and quality in nautical tourism. It offers a global network of marinas in the Americas, the Caribbean, Europe, and Asia, delivering year-round accommodations.
In October 2022, we completed the acquisition of IGY Marinas. IGY Marinas maintains a network of luxury marinas situated in yachting and sport fishing destinations around the world. IGY Marinas has high standards for service and quality in nautical tourism. It offers a global network of marinas in the Americas, the Caribbean, Europe, and Asia, delivering year-round accommodations.
As a result of our emphasis on premium brand boats, our average selling price for a new boat in fiscal 2023 was approximately $306,000, an increase from approximately $256,000 in fiscal 2022, compared with the industry average selling price for calendar 2022 of approximately $84,000 based on industry data published by the National Marine Manufacturers Association.
As a result of our emphasis on premium brand boats, our average selling price for a new boat in fiscal 2024 was approximately $327,000, an increase from approximately $306,000 in fiscal 2023, compared with the industry average selling price for calendar 2023 of approximately $90,000 based on industry data published by the National Marine Manufacturers Association.
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 our average annual revenues.
Over the three-year period ended September 30, 2024, the average revenue for the quarters ended December 31, March 31, June 30 and September 30 represented approximately 21%, 25%, 30%, and 24%, respectively, of our average annual revenues.
William Brett McGill has served as Chief Executive Officer since October 2018, as President since October 2017, and as a Director since February 21, 2019. Mr. McGill served as President and Chief Operating Officer of MarineMax from October 2017 to October 2018. Mr.
Alvare 48 General Counsel William Brett McGill has served as Chief Executive Officer since October 2018, as President since October 2017, and as a Director since February 21, 2019. Mr. McGill served as President and Chief Operating Officer of MarineMax from October 2017 to October 2018. Mr.
Maarten Yacht Club Isle de Sol Simpson Bay Marina St. Lucia Rodney Bay Marina United States, Florida Yacht Haven Grande Miami Maximo Marina, St.
Maarten Yacht Club Isle de Sol Simpson Bay Marina St. Lucia Rodney Bay Marina United States, Florida Yacht Haven Grande Miami at Island Gardens Maximo Marina, St.
During fiscal 2023, the income from rentals of chartering power yachts, yacht charter fees, and other charter services accounted for approximately 1.6% or $39.6 million of our revenue. Offsite Sales We sell used boats, offer F&I products, and sell parts and accessories at various third-party offsite locations, including marinas.
During fiscal 2024, the income from rentals of chartering power yachts, yacht charter fees, and other charter services accounted for approximately 1.7% or $41.2 million of our revenue. Offsite Sales We sell used boats, offer F&I products, and sell parts and accessories at various third-party offsite locations, including marinas.
We also are 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. Sales of new Azimut boats and yachts accounted for approximately 11% of our revenue in fiscal 2023.
We also are 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. Sales of new Azimut boats and yachts accounted for approximately 1 8% of our revenue in fiscal 2024.
We manufacture a portion of our new boat inventory from our Product Manufacturing segment. We also exchange new boats with other dealers to accommodate customer demand and to balance inventory. In fiscal 2023, sales of new Brunswick and Azimut boats and yachts accounted for approximately 24% and 11% of our revenue, respectively.
We manufacture a portion of our new boat inventory from our Product Manufacturing segment. We also exchange new boats with other dealers to accommodate customer demand and to balance inventory. In fiscal 2024, sales of new Brunswick and Azimut boats and yachts accounted for approximately 20% and 8% of our revenue, respectively.
Also, through Fraser Yachts Group and Northrop & Johnson, we offer yacht and superyacht brokerage. During fiscal 2023, brokerage sales commissions accounted for approximately 4.8% or $112.7 million of our revenue. Our brokerage customers generally receive the same high level of customer service as our new and used boat customers.
Also, through Fraser Yachts Group and Northrop & Johnson, we offer yacht and superyacht brokerage. During fiscal 2024, brokerage sales commissions accounted for approximately 4.7% or $114.0 million of our revenue. 9 Our brokerage customers generally receive the same high level of customer service as our new and used boat customers.
Sales of new Brunswick boats accounted for approximately 24% of our revenue in fiscal 2023. Sales of new Sea Ray and Boston Whaler boats accounted for approximately 11% and 11%, respectively, of our revenue in fiscal 2023. Certain of our dealerships also sell luxury yachts, fishing boats, and pontoon boats provided by other manufacturers, including Italy-based Azimut.
Sales of new Brunswick boats accounted for approximately 20% of our revenue in fiscal 2024. Sales of new Sea Ray and Boston Whaler boats accounted for approximately 9% and 9%, respectively, of our revenue in fiscal 2024. Certain of our dealerships also sell luxury yachts, fishing boats, and pontoon boats provided by other manufacturers, including Italy-based Azimut.
Sales of new Brunswick boats accounted for approximately 24% of our revenue in fiscal 2023. Sales of new Sea Ray and Boston Whaler boats, both divisions of Brunswick, accounted for approximately 11% and 11%, respectively, of our revenue in fiscal 2023. Brunswick is a world leading manufacturer of marine products and marine engines.
Sales of new Sea Ray and Boston Whaler boats, both divisions of Brunswick, accounted for approximately 9% and 9%, respectively, of our revenue in fiscal 2024. Brunswick is a world leading manufacturer of marine products and marine engines.
Our expansion plans will depend, in large part, upon economic and industry conditions. U.S. Recreational Boating Industry The U.S. recreational boating industry generated approximately $59.3 billion in retail sales in calendar 2022, which is above the former peak of $56.7 billion in calendar 2021.
Our expansion plans will depend, in large part, upon economic and industry conditions. U.S. Recreational Boating Industry The U.S. recreational boating industry generated approximately $57.7 billion in retail sales in calendar 2023, which is below the former peak of $59.3 billion in calendar 2022.
The retail sales include sales of new and used recreational boats; marine products, such as engines, trailers, parts, and accessories; and related boating expenditures, such as fuel, insurance, docking, storage, and repairs. Retail sales of new and used boats, engines, trailers, equipment, and accessories accounted for approximately $47.3 billion of such sales in calendar 2022.
The retail sales include sales of new and used recreational boats; marine products, such as engines, trailers, parts, and accessories; and related boating expenditures, such as fuel, insurance, docking, storage, and repairs. Retail sales of new and used boats, engines, trailers, equipment, and accessories accounted for approximately $45.4 billion of such sales in calendar 2023.
We utilize 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. During fiscal 2023, fee income generated from F&I products accounted for approximately 2.8% or $66.8 million of our revenue.
We utilize 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. During fiscal 2024, fee income generated from F&I products accounted for approximately 3.1% or $74.5 million of our revenue.
The sale of marine engines, related marine equipment, and boating parts and accessories, which are all tangible products, accounted for approximately 4.7% or $112.1 million of our fiscal 2023 revenue. Maintenance, Repair, and Storage Services Providing customers with professional, prompt maintenance and repair services is critical to our sales efforts and contributes to our success.
The sale of marine engines, related marine equipment, and boating parts and accessories, which are all tangible products, accounted for approximately 4.5% or $109.0 million of our fiscal 2024 revenue. Maintenance, Repair, and Storage Services Providing customers with professional, prompt maintenance and repair services is critical to our sales efforts and contributes to our success.
MarineMax provides finance and insurance services through wholly owned subsidiaries and operates MarineMax Vacations in Tortola, British Virgin Islands. The Company, through a wholly owned subsidiary, New Wave Innovations, also owns Boatyard, an industry-leading customer experience digital product company, and Boatzon, a boat and marine digital retail platform.
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, through a wholly owned subsidiary, New Wave Innovations, also owns Boatyard, an industry-leading customer experience digital product company, and Boatzon, a boat and marine digital retail platform.
In this business, we sell specifically designed yachts to third parties for inclusion in our yacht charter fleet; enter into yacht management agreements under which yacht owners enable us to put their 9 yachts in our yacht charter program for a period of several years for a fixed monthly fee payable by us; provide our services in storing, insuring, and maintaining their yachts; and charter these yachts to vacation customers at agreed fees payable to us.
In this business, we sell specifically designed yachts to third parties for inclusion in our yacht charter fleet; enter into yacht management agreements under which yacht owners enable us to put their yachts in our yacht charter program for a period of several years for a fixed monthly fee payable by us, or a variable monthly fee based on charter revenue payable by us or payable to us depending on revenue earned during the month; provide our services in storing, insuring, and maintaining their yachts; and charter these yachts to vacation customers at agreed fees payable to us.
The onset of the public boat and recreation shows in January generally stimulates boat sales and typically allows us to reduce our inventory levels and related short-term borrowings throughout the remainder of the fiscal year. Our expansion into boat storage may act to reduce our seasonality and cyclicality.
The onset of the public boat and recreation shows in January generally stimulates boat sales and typically allows us to reduce our inventory levels and related short-term borrowings throughout the remainder of the fiscal year.
Our same-store sales increased 13% in fiscal 2021, increased 5% in fiscal 2022, and decreased 2% in fiscal 2023. The U.S. recreational boating industry generated approximately $59.3 billion in retail sales in calendar 2022, which is above the former peak of $56.7 billion in calendar 2021.
Our same-store sales increased 5% in fiscal 2022, decreased 2% in fiscal 2023, and increased 1% in fiscal 2024. The U.S. recreational boating industry generated approximately $57.7 billion in retail sales in calendar 2023, which is below the former peak of $59.3 billion in calendar 2022.
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. 10 Many of our retail locations are waterfront properties on some of the nation’s most popular boating locations.
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.
April 2022 France Endeavour Marina August 2022 Texas IGY Marinas October 2022 Worldwide Midcoast Marine Group December 2022 Florida Boatzon January 2023 Worldwide C&C Boat Works June 2023 Minnesota In addition to acquiring recreational boat dealers, superyacht service companies, boat manufacturers, marinas, and opening new retail locations, we also add new product lines to expand our operations.
April 2022 France Endeavour Marina August 2022 Texas IGY Marinas October 2022 Worldwide Midcoast Marine Group December 2022 Florida Boatzon January 2023 Worldwide C&C Boat Works June 2023 Minnesota Atalanta Global Yachts October 2023 Worldwide Williams Tenders USA January 2024 Worldwide Native Marine March 2024 Florida Keys Aviara October 2024 Worldwide 3 In addition to acquiring recreational boat dealers, superyacht service companies, boat manufacturers, marinas, and opening new retail locations, we also add new product lines to expand our operations.
Corporate Social Responsibility Our commitment to social responsibility is outlined in our “Human Rights Policy.” Our Human Rights Policy can be found on the Investor Relations section of our website at www.MarineMax.com under Governance Documents (for the avoidance of doubt, our Human Rights Policy and other information contained on or accessible through our website is not incorporated into, and does not form a part of, this Annual Report or any other report or document we file with the SEC).
The Clean Marina Program recognizes facilities engaging in environmental best practices and exceeding regulatory requirements in and around waterways. 16 Corporate Social Responsibility Our commitment to social responsibility is outlined in our “Human Rights Policy.” Our Human Rights Policy can be found on the Investor Relations section of our website at www.MarineMax.com under Governance Documents (for the avoidance of doubt, our Human Rights Policy and other information contained on or accessible through our website is not incorporated into, and does not form a part of, this Annual Report or any other report or document we file with the SEC).
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.
Additionally, Cruisers Yachts has assumed the rights to MasterCraft’s Aviara brand of luxury day boats. 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.
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. 6 Pleasure Boats .
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. 6 Yacht Tenders . Williams Jet Tenders is the world’s leading manufacturer of rigid inflatable jet tenders for the luxury yacht market.
The learning modules kick off with a customized onboarding experience and then focus on our retailing philosophies, including instruction on such matters as the sales process, customer service, F&I, accounting, leadership, safety, compliance, and human resources.
MarineMax Academy offers synchronous and asynchronous instruction options to meet the needs of all team members. The learning modules kick off with a customized onboarding experience and then focus on our retailing philosophies, including instruction on such matters as the sales process, customer service, F&I, accounting, leadership, safety, compliance, and human resources.
We also from time to time evaluate opportunities to expand our operations by potentially acquiring recreational boat dealers to expand our geographic scope, expanding our product lines, opening new retail locations within or outside our existing territories, and offering new products and services for our customers and by potentially acquiring companies to pursue contract manufacturing or vertical integration strategies. 2 Apart from acquisitions and our superyacht service locations, we have opened 35 new retail locations in existing territories, excluding those opened on a temporary basis for a specific purpose.
We also from time to time evaluate opportunities to expand our operations by potentially acquiring recreational boat dealers to expand our geographic scope, expanding our product lines, opening new retail locations within or outside our existing territories, and offering new products and services for our customers and by potentially acquiring companies to pursue contract manufacturing or vertical integration strategies.
During fiscal 2023, new boat sales, including sales of Cruisers Yachts and Intrepid Powerboats, accounted for approximately 68.7% or $1.6454 billion of our revenue.
During fiscal 2024, new boat sales, including sales of Cruisers Yachts and Intrepid Powerboats, accounted for approximately 66.6% or $1.6198 billion of our revenue.
One way in which our presence is felt within the local community is by providing our team members time to volunteer and assist with Habitat for Humanity housing projects in addition to making charitable donations to Habitat for Humanity. In addition, we support humanitarian aid to countries in need through organizations such as the Red Cross.
One significant way in which our presence is felt within the local community is by providing our team members time to volunteer and assist with Habitat for Humanity housing projects in addition to making charitable donations to Habitat for Humanity.
Our used boat sales depend on our ability to source a supply of high-quality used boats at attractive prices. We acquire substantially all of our used boat inventory through customer trade-ins.
During fiscal 2024, used boat sales accounted for 9.7% or approximately $236.1 million of our revenue. 7 Our used boat sales depend on our ability to source a supply of high-quality used boats at attractive prices. We acquire substantially all of our used boat inventory through customer trade-ins.
In charging for our mechanics’ labor, many of our dealerships use a variable rate structure designed to reflect the difficulty and sophistication of different types of repairs. The percentage markups on parts are similarly based on manufacturer suggested prices and market conditions for different parts.
In charging for our mechanics’ labor, many of our dealerships use a variable rate structure designed to reflect the difficulty and sophistication of different types of repairs.
Executive Officers The following table sets forth information concerning each of our executive officers as of November 15, 2023: Name Age Position William H. McGill Jr. 79 Executive Chairman of the Board and Director William Brett McGill 55 Chief Executive Officer, President and Director Michael H. McLamb 58 Executive Vice President, Chief Financial Officer, Secretary, and Director Charles A.
Executive Officers The following table sets forth information concerning each of our executive officers as of November 14, 2024: Name Age Position William Brett McGill 56 Chief Executive Officer, President and Director Michael H. McLamb 59 Executive Vice President, Chief Financial Officer, Secretary, and Director Charles A. Cashman 61 Executive Vice President and Chief Revenue Officer Anthony E.
We have a uniform, fully integrated technology platform serving each of our dealerships. Our philosophy is to pay competitive base salaries to team members at levels that help us to attract, motivate, and retain highly qualified team members and reduce turnover.
Our philosophy is to pay competitive base salaries to team members at levels that help us to attract, motivate, and retain highly qualified team members and reduce turnover.
In addition, unseasonably cool weather and prolonged winter conditions may lead to a shorter selling season in certain locations. Hurricanes and other storms could result in 14 disruptions of our operations or damage to our boat inventories and facilities, as has been the case when Florida and other markets were affected by hurricanes, such as Hurricane Ian in 2022.
Hurricanes and other storms could result in disruptions of our operations or damage to our boat inventories and facilities, as has been the case when Florida and other markets were affected by hurricanes, such as Hurricane Ian in 2022 and Hurricanes Helene and Milton in 2024.
Maintenance and repair service managers receive compensation on a salary basis with bonuses based on the performance of their departments. Our technology platform provides each store and department manager with daily financial and operational information, enabling them to monitor the performance of their personnel on a daily, weekly, and monthly basis.
Our technology platform provides each store and department manager with daily financial and operational information, enabling them to monitor the performance of their personnel on a daily, weekly, and monthly basis. We have a uniform, fully integrated technology platform serving each of our dealerships.
Each boat is crafted by highly experienced and detail-oriented designers to achieve timeless beauty and passenger comfort. Galeon is one of Europe’s leading and premier boat manufacturers. We believe Galeon yachts combine the latest technology, hand crafted excellence, attention to detail, superb performance, and great innovative designs with modern styling and convenience.
Galeon specializes in luxury yacht and motorboats with over thirty years of experience and is one of Europe’s leading and premier boat manufacturers. We believe Galeon yachts combine the latest technology, hand crafted excellence, attention to detail, superb performance, and great innovative designs with modern styling and convenience.
Cashman 60 Executive Vice President and Chief Revenue Officer Anthony E. Cassella, Jr 54 Executive Vice President Finance and Chief Accounting Officer Shawn Berg 53 Executive Vice President and Chief Digital Officer Kyle G. Langbehn 49 Executive Vice President and President of Retail Operations William H.
Cassella, Jr 55 Executive Vice President Finance and Chief Accounting Officer Shawn Berg 54 Executive Vice President and Chief Digital Officer Kyle G. Langbehn 50 Executive Vice President and President of Retail Operations Manuel A.
At many of our locations, we offer boat storage services, including in-water slip storage and inside and outside land storage. These storage services are offered at competitive market rates and include both in-season and out-of-season storage. In October 2022, we completed the acquisition of IGY Marinas.
The percentage markups on parts are similarly based on manufacturer suggested prices and market conditions for different parts. 8 At many of our locations, we offer boat storage services, including in-water slip storage and inside and outside land storage. These storage services are offered at competitive market rates and include both in-season and out-of-season storage.
We also have a specialized service training center and program in Clearwater, Florida where we offer apprenticeship programs and train our service technicians in best practices. Sales representatives receive compensation primarily on a commission basis. Each general manager is a salaried employee with incentive bonuses based on the performance of the managed dealership.
We also have a specialized service training center and program in Clearwater, Florida where we offer apprenticeship programs and train our service technicians in best practices. We have partnered with the State of Florida to expand our marine apprenticeship offerings across other locations throughout the state. Sales representatives receive compensation primarily on a commission basis.
In June 2023, we acquired C&C Boat Works, a full-service boat dealer in Crosslake, Minnesota. In October 2023, we acquired Atalanta Golden Yachts ("AGY"), a luxury charter management agency based in Athens, Greece. We are the largest retailer of Sea Ray and Boston Whaler recreational boats which are manufactured by Brunswick Corporation (“Brunswick”).
In June 2023, we acquired C&C Boat Works, a full-service boat dealer in Crosslake, Minnesota. In October 2023, we acquired Atalanta Golden Yachts ("AGY"), a luxury charter management agency based in Athens, Greece.
Our business is also subject to weather patterns, which may adversely affect our results of operations. For example, prolonged winter conditions, drought conditions (or merely reduced rainfall levels) or excessive rain, may limit access to area boating locations or render boating dangerous or inconvenient, thereby curtailing customer demand for our products.
For example, prolonged winter conditions, drought conditions (or merely reduced rainfall levels) or excessive rain, may limit access to area boating locations or render boating dangerous or inconvenient, thereby curtailing customer demand for our products. In addition, unseasonably cool weather and prolonged winter conditions may lead to a shorter selling season in certain locations.
Human Capital Resources As of September 30, 2023, we had 3,928 employees, 2,671 (68%) of whom were in store-level operations, 927 (24%) of whom were in manufacturing operations, and 330 (8%) of whom were in corporate administration and operational management. We are not a party to any collective bargaining agreements. We consider our relations with our employees to be excellent.
Human Capital Resources As of September 30, 2024, we had 4,050 employees, 2,942 (73%) of whom were in store-level operations, 738 (18%) of whom were in manufacturing operations, and 370 (9%) of whom were in corporate administration and operational management. We are not a party to any collective bargaining agreements.
Although we have not experienced a known material information security breach in the last three years and have developed systems and processes to prevent or detect security breaches and protect the confidential information we receive, store, transmit, and use, we cannot assure that such measures will provide absolute security.
While we have developed systems and processes to prevent or detect security breaches and protect the confidential information we receive, store, transmit, and use, we cannot assure that such measures will provide absolute security. See “Item 1C. Cybersecurity” included in this report for a discussion of our cybersecurity procedures and policies.
While such licensing requirements are not expected to be unduly restrictive, regulations may discourage potential first-time buyers, thereby limiting future sales, which could adversely affect our business, financial condition, and results of operations. 15 Environmental Responsibility We operate many retail locations near or on bodies of water that are acutely susceptible to the risks associated with climate change.
Additionally, certain states have required or are considering requiring a license in order to operate a recreational boat. While such licensing requirements are not expected to be unduly restrictive, regulations may discourage potential first-time buyers, thereby limiting future sales, which could adversely affect our business, financial condition, and results of operations.
Historically, the resolution of product liability claims has not materially affected our business. Manufacturers of the products we sell generally maintain product liability insurance. We also maintain third-party product liability insurance that we believe to be adequate. We may experience claims that are not covered by, or that are in excess of, our insurance coverage.
We also maintain third-party product liability insurance that we believe to be adequate. We may experience claims that are not covered by, or that are in excess of, our insurance coverage. The institution of any significant claims against us could subject us to damages, result in higher insurance costs, and harm our business reputation with potential customers.
We believe Bayliner offers quality materials, and features dedicated storage spaces, optimal performance and efficiency engines and quality electronics, ensuring accurate navigation. Cobalt Boats, an American manufacturer of recreational boats, has found continued success through investments in innovation and manufacturing capability. Chris-Craft is an American boat manufacturer which primarily produces classic wooden boats built with high quality materials.
Cobalt Boats, an American manufacturer of recreational boats, has found continued success through investments in innovation and manufacturing capability. Chris-Craft is an American boat manufacturer which primarily produces classic wooden boats built with high quality materials. Each boat is crafted by highly experienced and detail-oriented designers to achieve timeless beauty and passenger comfort.
MJM Yachts combine speed, performance, greater stability, innovative designs and layouts, along with comforts and space for entertaining in addition to a patent protected MJM signature look.
MJM Yachts combine speed, performance, greater stability, innovative designs and layouts, along with comforts and space for entertaining in addition to a patent protected MJM signature look. Aviara is focused on the production of vessels 30-feet and over with the goal of creating an elevated open water experience by fusing progressive style, comfort, and luxury.
Our acquisition of IGY Marinas offers a global network of marinas in the Americas, the Caribbean, Europe, and Asia, delivering year-round accommodations. IGY Marinas caters to a wide variety of luxury yachts, while also being exclusive home ports for some of the world’s largest megayachts. In addition, we continue to broaden and strengthen our digital initiatives.
IGY Marinas caters to a wide variety of luxury yachts, while also being exclusive home ports for some of the world’s largest megayachts.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe failure to satisfy those and other regulatory requirements could have a material adverse effect on our business, financial condition, and results of operations, as well as potentially the assessment of damages, the imposition of penalties, changes to our processes, or a cessation of our operations, and/or damage to our image and reputation. 30 Various federal, state, and local regulatory agencies, including OSHA, EPA, and similar federal and local agencies, have jurisdiction over the operation of our dealerships, repair facilities, and other operations, with respect to matters such as consumer protection, workers’ safety, and laws regarding protection of the environment, including air, water, and soil.
Biggest changeVarious federal, state, and local regulatory agencies, including OSHA, EPA, and similar federal and local agencies, have jurisdiction over the operation of our dealerships, repair facilities, and other operations, with respect to matters such as consumer protection, workers’ safety, and laws regarding protection of the environment, including air, water, and soil.
Any change or termination of these arrangements for any reason could adversely affect product availability and cost and our financial performance. Through these dealer agreements, boat manufacturers (particularly Brunswick and Azimut) exercise significant control over their dealers, restricting them to specified locations, and retaining approval rights over changes in management and ownership, among other 19 things.
Any change or termination of these arrangements for any reason could adversely affect product availability and cost and our financial performance. 19 Through these dealer agreements, boat manufacturers (particularly Brunswick and Azimut) exercise significant control over their dealers, restricting them to specified locations, and retaining approval rights over changes in management and ownership, among other things.
Accomplishing these goals for expansion will depend upon a number of factors, including the following: • our ability to identify new markets in which we can obtain distribution rights to sell our existing or additional product lines; • our ability to lease or construct suitable facilities at a reasonable cost in existing or new markets; • our ability to hire, train, and retain qualified personnel; • the timely and effective integration of new retail locations into existing operations; • our ability to achieve adequate market penetration at favorable operating margins without the acquisition of existing dealers; and • our financial resources.
Accomplishing these goals for expansion will depend upon a number of factors, including the following: • our ability to identify new markets in which we can obtain distribution rights to sell our existing or additional product lines; • our ability to lease or construct suitable facilities at a reasonable cost in existing or new markets; • our ability to hire, train, and retain qualified personnel; • the timely and effective integration of new retail locations into existing operations; 23 • our ability to achieve adequate market penetration at favorable operating margins without the acquisition of existing dealers; and • our financial resources.
Our reputation may be adversely affected by such claims, whether or not successful, including potential negative publicity about our products. We record accruals for known potential liabilities, but there is the possibility that actual losses may exceed these accruals and therefore negatively impact earnings. 28 We have a fixed cost base that can affect our profitability if demand decreases.
Our reputation may be adversely affected by such claims, whether or not successful, including potential negative publicity about our products. We record accruals for known potential liabilities, but there is the possibility that actual losses may exceed these accruals and therefore negatively impact earnings. We have a fixed cost base that can affect our profitability if demand decreases.
Our failure to pursue successfully our acquisition strategies in new lines of business, operate effectively the combined entity, and/or mitigate any potential new risks, could have a material adverse effect on our rate of growth and operating performance. Unforeseen expenses, difficulties, and delays frequently encountered in connection with expansion through acquisitions could inhibit our growth and negatively impact our profitability.
Our failure to pursue successfully our acquisition strategies in new lines of business, operate effectively the combined entity, and/or mitigate any potential new risks, could have a material adverse effect on our rate of growth and operating performance. 22 Unforeseen expenses, difficulties, and delays frequently encountered in connection with expansion through acquisitions could inhibit our growth and negatively impact our profitability.
If 29 such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair market value. Estimates of expected future cash flows represent our best estimate based on currently available information and reasonable and supportable assumptions.
If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair market value. Estimates of expected future cash flows represent our best estimate based on currently available information and reasonable and supportable assumptions.
While credit availability is currently adequate to support demand, if credit conditions worsen and adversely affect the ability of customers to finance potential purchases at acceptable terms and interest rates, it could result in a decrease in sales and materially impact our financial condition or results of operations. Inflation could adversely affect our financial results.
While credit availability is currently adequate to support demand, if credit conditions worsen and adversely affect the ability of customers to finance potential purchases at acceptable terms and interest rates, it could result in a decrease in sales and materially impact our financial condition and results of operations. Inflation could adversely affect our financial results.
Moreover, the costs associated with opening new retail locations or introducing new product lines may adversely affect our profitability. 23 As a result of these growth strategies, we expect to continue to expend significant time and effort in opening and acquiring new retail locations, improving existing retail locations in our current markets, and introducing new products.
Moreover, the costs associated with opening new retail locations or introducing new product lines may adversely affect our profitability. As a result of these growth strategies, we expect to continue to expend significant time and effort in opening and acquiring new retail locations, improving existing retail locations in our current markets, and introducing new products.
The ability of our customers to secure reasonably affordable boat insurance that is satisfactory to lenders that finance our customers’ purchases is critical to our success. Any difficulty of customers to obtain affordable boat insurance could impede boat sales and adversely affect our business. Elements of our yacht charter and charter brokerage businesses expose us to certain risks.
The ability of our customers to secure reasonably affordable boat insurance that is satisfactory to lenders that finance our customers’ purchases is critical to our success. Any difficulty of customers to obtain affordable boat insurance could impede boat sales and adversely affect our business. 27 Elements of our yacht charter and charter brokerage businesses expose us to certain risks.
Any of these restrictions could prevent or make it difficult or more costly for us to import yachts from foreign suppliers under economically favorable terms and conditions. Increased 24 tariffs could require us to increase our prices which likely could decrease demand for our products.
Any of these restrictions could prevent or make it difficult or more costly for us to import yachts from foreign suppliers under economically favorable terms and conditions. Increased tariffs could require us to increase our prices which likely could decrease demand for our products.
In addition, several of our 20 competitors, especially those selling marine equipment and accessories, are large national or regional chains that have substantial financial, marketing and other resources. Private sales of used boats represent an additional source of competition.
In addition, several of our competitors, especially those selling marine equipment and accessories, are large national or regional chains that have substantial financial, marketing and other resources. Private sales of used boats represent an additional source of competition.
Unforeseen expenses, difficulties and delays frequently encountered in connection with expansion through acquisitions could inhibit our growth and negatively 22 impact our profitability. We may be unable to identify suitable acquisition candidates or to complete the acquisitions of candidates that we identify.
Unforeseen expenses, difficulties and delays frequently encountered in connection with expansion through acquisitions could inhibit our growth and negatively impact our profitability. We may be unable to identify suitable acquisition candidates or to complete the acquisitions of candidates that we identify.
Increased global cybersecurity vulnerabilities, threats and more sophisticated and targeted cyber-related attacks (including ransomware) pose a risk to the security of our and our customers’, suppliers’ and third-party service providers’ products, systems and networks and the confidentiality, availability and integrity of our data.
Increased global cybersecurity threats and more sophisticated and targeted cyber-related attacks (including ransomware) pose a risk to the security of our and our customers’, suppliers’ and third-party service providers’ products, systems and networks and the confidentiality, availability and integrity of our data.
The economic, political and other risks we face resulting from these operations include the following: • compliance with U.S. and local laws and regulatory requirements, including labor, tax, and environmental, health and safety, as well as changes in those laws and requirements; • transportation delays or interruptions and other effects of less developed infrastructures; • effects from the voter-approved exit of the United Kingdom from the European Union (often referred to as Brexit), including any resulting deterioration in economic conditions, volatility in currency exchange rates, or adverse regulatory changes; • limitations on imports and exports; • adverse foreign exchange rate fluctuations; • imposition of restrictions on currency conversion or the transfer of funds; • withdrawal from or revision to international trade agreements; • national and international conflicts, including the Israel-Hamas War, foreign policy changes, political or economic instability, or terrorist acts; • the effects of issued or threatened government sanctions, tariffs and duties, trade barriers or economic restrictions; • maintenance of quality standards; and/or • possible employee turnover or labor unrest.
The economic, political and other risks we face resulting from these operations include the following: • compliance with U.S. and local laws and regulatory requirements, including labor, tax, and environmental, health and safety, as well as changes in those laws and requirements; • transportation delays or interruptions and other effects of less developed infrastructures; • effects from the voter-approved exit of the United Kingdom from the European Union (often referred to as Brexit), including any resulting deterioration in economic conditions, volatility in currency exchange rates, or adverse regulatory changes; • limitations on imports and exports; • adverse foreign exchange rate fluctuations; • imposition of restrictions on currency conversion or the transfer of funds; • withdrawal from or revision to international trade agreements; • national and international conflicts, including the Israel-Hamas War and the Russia/Ukraine conflict, foreign policy changes, political or economic instability, or terrorist acts; • the effects of issued or threatened government sanctions, tariffs and duties, trade barriers or economic restrictions; • maintenance of quality standards; and/or • possible employee turnover or labor unrest.
There is significant competition both within markets we currently serve and in new markets that we may enter. We compete in each of our markets with retailers of brands of boats and engines we do not sell in that market.
There is significant competition both within markets we currently serve and in new markets that we may enter. We 20 compete in each of our markets with retailers of brands of boats and engines we do not sell in that market.
We therefore risk losing business not only to other charter operators, but also to vacation operators that provide such alternatives. 27 We depend on income from financing, insurance and extended service contracts.
We therefore risk losing business not only to other charter operators, but also to vacation operators that provide such alternatives. We depend on income from financing, insurance and extended service contracts.
Any eliminations, reductions, limitations, or other changes relating to rebate or incentive programs that have the effect of reducing the benefits we receive, whether relating to the ability of manufacturers to pay or our ability to qualify for such incentive programs, could increase the effective cost of our boat purchases, reduce our margins and competitive position, and have a material adverse effect on our financial performance.
Any eliminations, reductions, limitations, delayed payments, or other changes relating to rebate or incentive programs that have the effect of reducing the benefits we receive, whether relating to the ability of manufacturers to pay or our ability to qualify for such incentive programs, could increase the effective cost of our boat purchases, reduce our margins and competitive position, and have a material adverse effect on our financial performance.
Depending on the nature of the information compromised, we may have obligations to notify customers and/or employees about the incident, and we may need to provide some form of remedy, such as a subscription to a credit monitoring service, for the individuals affected by the incident, which could result in material reputational damage to us.
Depending on the nature of the data compromised, we may have obligations to notify customers and/or employees about the incident, and we may need to provide some form of remedy, such as a subscription to a credit monitoring service, for the individuals affected by the incident, which could result in material reputational damage to us.
Consequently, decreased demand or the need to reduce production can lower our ability to absorb fixed costs and materially impact our financial condition or results of operations. Adverse federal or state tax policies can have a negative effect on us.
Consequently, decreased demand or the need to reduce production can lower our ability to absorb fixed costs and materially impact our financial condition or results of operations. Adverse federal tax, state tax, or governmental regulations and policies can have a negative effect on us.
A significant amount of our boat sales are from the State of Florida. Economic conditions, weather and environmental conditions, competition, market conditions, and any other adverse conditions impacting the State of Florida in which we generated approximately 50%, 51% and 53% of our dealership revenue during fiscal 2021, 2022, and 2023, respectively, could have a major impact on our operations.
A significant amount of our boat sales are from the State of Florida. Economic conditions, weather and environmental conditions, competition, market conditions, and any other adverse conditions impacting the State of Florida in which we generated approximately 51%, 53% and 53% of our dealership revenue during fiscal 2022, 2023, and 2024, respectively, could have a major impact on our operations.
Since March 1, 1998, we have acquired 33 additional previously independent recreational boat dealers, multiple marinas, five boat brokerage operations, five superyacht service companies, two full-service yacht repair operations, and two boat and yacht manufacturers. Each acquired dealer and entity operated independently prior to its acquisition by us.
Since March 1, 1998, we have acquired 35 additional previously independent recreational boat dealers, multiple marinas, five boat brokerage operations, six superyacht service companies, two full-service yacht repair operations, and two boat and yacht manufacturers. Each acquired dealer and entity operated independently prior to its acquisition by us.
The remainder of our fiscal 2023 revenue from new boat sales resulted from sales of products from a limited number of other manufacturers, none of which accounted for more than 10% of our revenue.
The remainder of our fiscal 2024 revenue from new boat sales resulted from sales of products from a limited number of other manufacturers, none of which accounted for more than 10% of our revenue.
Unauthorized parties may also attempt to gain access to our systems or facilities, or those of third parties with whom we do business, through fraud, trickery or other forms of deceiving our team members, contractors, vendors, and temporary staff.
Unauthorized parties may also attempt to gain access to our systems or facilities, or those of third parties with whom we do business, through fraud, social engineering or other forms of deceiving our team members, contractors, vendors, and temporary staff.
These laws and regulations include, for example, the European General Data Protection Regulation, effective May 2018, the California Consumer Privacy Act, effective January 2020, and new SEC cybersecurity-related disclosures adopted in July 2023.
These laws and regulations include, for example, the European General Data Protection Regulation, effective May 2018, the California Consumer Privacy Act, effective January 2020, other similar state Consumer Privacy regulations, and new SEC cybersecurity-related disclosures adopted in July 2023.
None of our real estate has been pledged for collateral for the Amended Credit Agreement. As of September 30, 2023, we were in compliance with all of the covenants under the Amended Credit Agreement and our additional available borrowings under the Amended Credit Agreement was approximately $8.5 million based upon the outstanding borrowing base availability.
None of our real estate has been pledged for collateral for the Amended Credit Agreement. As of September 30, 2024, we were in compliance with all of the covenants under the Amended Credit Agreement and our additional available borrowings under the Amended Credit Agreement was approximately $1.5 million based upon the outstanding borrowing base availability.
As of September 30, 2023, we have approximately $528 million of property and equipment, net of accumulated depreciation, recorded on our consolidated balance sheet. Recoverability of an asset is measured by comparison of its carrying amount to undiscounted future net cash flows the asset is expected to generate.
As of September 30, 2024, we have approximately $533 million of property and equipment, net of accumulated depreciation, recorded on our consolidated balance sheet. Recoverability of an asset is measured by comparison of its carrying amount to undiscounted future net cash flows the asset is expected to generate.
Economic conditions in areas in which we operate dealerships, such as corporate downsizing, military base closings, and inclement weather such as hurricanes or other storms, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico in 2010, or Hurricane Ian in 2022, also could adversely affect, and in certain instances have adversely affected, our operations in certain markets.
Economic conditions in areas in which we operate dealerships, such as corporate downsizing, military base closings, and inclement weather such as hurricanes or other storms, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico in 2010, or Hurricanes Helene and Milton in 2024, also could adversely affect, and in certain instances have adversely affected, our operations in certain markets.
The Company maintains a stock repurchase plan authorizing the Company to purchase up to 10 million shares of its common stock through March 2024. There is no guarantee that our stock repurchase plans will be able to successfully mitigate the dilutive effect of stock options and stock-based grants.
The Company maintains a stock repurchase plan authorizing the Company to purchase up to $100 million of its common stock through March 2026. There is no guarantee that our stock repurchase plans will be able to successfully mitigate the dilutive effect of stock options and stock-based grants.
The variable interest rate under our Amended Credit Agreement will fluctuate with changing market conditions and, accordingly, our interest expense will increase as interest rates rise. A significant increase in interest rates could have a material adverse effect on our operating results.
The variable interest rate under our Amended Credit Agreement will fluctuate with changing market conditions and, accordingly, our interest expense will increase as interest rates rise. Although the Federal Reserve recently cut interest rates, a significant increase in interest rates could have a material adverse effect on our operating results.
Over the three-year period ended September 30, 2023, the average revenue for the quarterly periods ended December 31, March 31, June 30 and September 30 represented approximately 20%, 25%, 31%, and 24%, respectively, of our average annual revenue.
Over the three-year period ended September 30, 2024, the average revenue for the quarterly periods ended December 31, March 31, June 30 and September 30 represented approximately 21%, 25%, 30%, and 24%, respectively, of our average annual revenue.
Customers consider safety and reliability a primary concern in selecting a yacht charter provider. The yacht charter business may present a number of safety risks including, but not limited to, catastrophic disaster, adverse weather and marine conditions, such as Hurricane Ian in 2022, mechanical failure and collision, and public health issues.
Customers consider safety and reliability a primary concern in selecting a yacht charter provider. The yacht charter business may present a number of safety risks including, but not limited to, catastrophic disaster, adverse weather and marine conditions, such as Hurricanes Helene and Milton in 2024, mechanical failure and collision, and public health issues.
In addition, new boat buyers often finance their purchases. Inflation, along with rising interest rates, could translate into an increased cost of boat ownership.
In addition, new boat buyers often finance their purchases. Inflation, along 21 with a rise in interest rates, could translate into an increased cost of boat ownership.
The IGY Marinas acquisition poses risks for our ongoing operations, including, among others: • the possibility that we will incur unexpected costs and liabilities; • the possibility that expected synergies and value creation will not be realized or will not be realized within the expected time period; • difficulties recruiting and retaining team members; • the financing for the acquisition of IGY Marinas may limit our ability to finance future acquisitions or obtain favorable terms on future credit agreements; • IGY Marinas may not perform as well as anticipated; and • unforeseen difficulties may arise in integrating operations in various countries into our company.
The IGY Marinas acquisition poses risks for our ongoing operations, including, among others: • the possibility that we will incur unexpected costs and liabilities; • the possibility that expected synergies and value creation will not be realized or will not be realized within the expected time period; • difficulties recruiting and retaining team members; • the financing for the acquisition of IGY Marinas may limit our ability to finance future acquisitions or obtain favorable terms on future credit agreements; • IGY Marinas may not perform as well as anticipated; and • unforeseen difficulties may arise in integrating operations in various countries into our company. 25 As a result of the foregoing, we cannot assure that the IGY Marinas acquisition will be accretive to us in the near term or at all.
Greater restrictions and/or disruptions of our suppliers’ ability to operate facilities and/or do business in and with Taiwan may increase the cost of certain materials and/or limit the supply of products sourced from Taiwan.
For example, certain of our suppliers are dependent on products sourced from Taiwan. Greater restrictions and/or disruptions of our suppliers’ ability to operate facilities and/or do business in and with Taiwan may increase the cost of certain materials and/or limit the supply of products sourced from Taiwan.
If the operations of any of our marinas become unprofitable due to industry competition, operational execution or otherwise, then it may not be feasible to operate the property for another use, and the value of certain features or assets used at the property, or the property itself, may be impaired, this would have a material adverse effect on our financial performance.
If the operations of any of our marinas become unprofitable due to industry competition, operational execution or otherwise, then it may not be feasible to operate the property for another use, and the value of certain features or assets used at the property, or the property itself, may be impaired, this would have a material adverse effect on our financial performance. 29 We may be unable to obtain, renew or maintain permits, licenses and approvals necessary for the operation of our marinas.
Approximately 24% of our revenue in fiscal 2023 resulted from sales of new boats manufactured by Brunswick, including approximately 11% from Brunswick’s Sea Ray division, 11% from Brunswick’s Boston Whaler division, and approximately 2% from Brunswick’s other divisions. Additionally, approximately 11% of our revenue in fiscal 2023 resulted from sales of new boats manufactured by Azimut-Benetti Group.
Approximately 20% of our revenue in fiscal 2024 resulted from sales of new boats manufactured by Brunswick, including approximately 9% from Brunswick’s Sea Ray division, 9% from Brunswick’s Boston Whaler division, and approximately 2% from Brunswick’s other divisions. Additionally, approximately 8% of our revenue in fiscal 2024 resulted from sales of new boats manufactured by Azimut-Benetti Group.
Consequently, an interruption in the supply, or a significant increase in the price or tax on the sale of fuel on a regional or national basis could have a material adverse effect on our sales and operating results. Increases in fuel prices negatively impact boat sales.
All of the recreational boats we sell are powered by diesel or gasoline engines. Consequently, an interruption in the supply, or a significant increase in the price or tax on the sale of fuel on a regional or national basis could have a material adverse effect on our sales and operating results. Increases in fuel prices negatively impact boat sales.
This has had, will likely continue to have, a negative impact on the global economy and has affected, and will likely continue to affect, economic and capital markets. A downturn in the economy could adversely affect our financial performance.
This has had, will likely continue to have, a negative impact on the global economy and has affected, and will likely continue to affect, economic and capital markets. A downturn in the economy could adversely affect our financial performance. Geopolitical issues around the world can impact macroeconomic conditions and could have a material adverse impact on our financial results.
Recent changes by the Federal Reserve to raise its benchmark interest rate has resulted in significantly higher long-term interest rates, which has negatively impacted, and may further negatively impact, our customers’ willingness or desire to purchase our products.
Changes by the Federal Reserve to raise its benchmark interest rate beginning in 2022 have resulted in significantly higher long-term interest rates, which has negatively impacted, and may further negatively impact, our customers’ willingness or desire to purchase our products. However, the Federal Reserve recently cut interest rates in September 2024 and more interest rate cuts are expected.
Further, related increases in capital gains rates, personal income tax rates or both could have an adverse effect on the buying power of potential customers and therefore an adverse effect on our financial performance and financial condition. Marinas may not be readily adaptable to other uses.
Further, related increases in capital gains rates, taxes on unrealized capital gains, or personal income tax rates could have an adverse effect on the buying power of potential customers and therefore an adverse effect on our financial performance and financial condition.
In addition, increases in the United States corporate income tax rates (as currently being contemplated by the United States' legislative and executive branches) would have an adverse effect on our financial performance and financial condition .
In addition, increases in the United States corporate income tax rates would have an adverse effect on our financial performance and financial condition.
While we are unaware of any failure to comply with these laws or any contamination at our facilities, the costs of compliance, including remediations of any discovered issues and any changes to our operations mandated by new or amended laws, may be significant, and any failures to comply could result in material expenses, delays or fines.
While we are unaware of any failure to comply with these laws or any contamination at our facilities, the costs of compliance, including remediations of any discovered issues and any changes to our operations mandated by new or amended laws, may be significant, and any failures to comply could result in material expenses, delays or fines. 31 We also are subject to laws, ordinances, and regulations governing investigation and remediation of contamination at facilities we operate or to which we send hazardous or toxic substances or wastes for treatment, recycling or disposal.
This ongoing dialogue can include certain divisive activist tactics, which can take many forms. Some shareholder activism, including potential proxy contests, could result in substantial costs, such as legal fees and expenses, and divert management's and our Board's attention and resources from our business and strategic plans.
Some shareholder activism, including potential proxy contests, could result in substantial costs, such as legal fees and expenses, and divert management's and our Board's attention and resources from our business and strategic plans.
The platform integrates each level of operations on a Company-wide basis, including but not limited to inventory, financial reporting, budgeting, marketing, sales management, as well as to prepare our consolidated financial and operating data.
Our business is dependent upon the efficient operation of our technology platform. The platform facilitates the interchange of information and enhances cross-selling opportunities throughout our company. The platform integrates each level of operations on a Company-wide basis, including but not limited to inventory, financial reporting, budgeting, marketing, sales management, as well as to prepare our consolidated financial and operating data.
In addition, increases in energy costs may adversely affect the pricing and availability of petroleum-based raw materials, such as resins and foams that are used in manufacturing.
Higher energy costs result in increases in operating expenses at our manufacturing facilities, in the expense of shipping raw materials to our facilities, and in the expense of shipping products to our customers. In addition, increases in energy costs may adversely affect the pricing and availability of petroleum-based raw materials, such as resins and foams that are used in manufacturing.
Although our geographic diversity and any future geographic expansion should reduce the overall impact on us of adverse weather and environmental conditions in any one market area, weather and environmental conditions will continue to represent potential material adverse risks to us and our future operating performance.
Although our geographic diversity and any future geographic expansion should reduce the overall impact on us of adverse weather and environmental conditions in any one market area, weather and environmental conditions will continue to represent potential material adverse risks to us and our future operating performance. 30 Demand for wet slip storage increases during the summer months in our northern markets as customers contract for the summer boating season.
Similarly, decreases in the availability of credit and increases in the cost of credit adversely affect the ability of our customers to purchase boats from us and thereby adversely affect our ability to sell our products and impact the profitability of our finance and insurance activities.
Similarly, decreases in the availability of credit and increases in the cost of credit adversely affect the ability of our customers to purchase boats from us and thereby adversely affect our ability to sell our products and impact the profitability of our finance and insurance activities. 26 Higher energy, costs and availability of raw materials, parts, components, and fuel costs along with adequate supply may adversely affect our business.
The Financial Accounting Standards Board, the SEC, or other accounting organizations or governmental entities frequently issue new pronouncements or new interpretations of existing accounting standards.
Changes in accounting standards could significantly affect our results of operations and the presentation of those results. The Financial Accounting Standards Board, the SEC, or other accounting organizations or governmental entities frequently issue new pronouncements or new interpretations of existing accounting standards.
We may be unable or slow to attract research coverage and if one or more analysts cease coverage of our company, we could lose visibility in the market. In addition, one or more of these analysts could downgrade our common stock or issue other negative commentary about our company or our industry.
The trading market for our common stock depends in part on the research and reports that third-party securities analysts publish about our company and our industry. We may be unable or slow to attract research coverage and if one or more analysts cease coverage of our company, we could lose visibility in the market.
Demand for wet slip storage increases during the summer months in our northern markets as customers contract for the summer boating season. Demand for dry storage increases during the winter season as seasonal weather patterns in certain geographies require boat owners to store their vessels on dry docks and within covered racks.
Demand for dry storage increases during the winter season as seasonal weather patterns in certain geographies require boat owners to store their vessels on dry docks and within covered racks. Our results on a quarterly basis can fluctuate due to this cyclicality and seasonality.
Negative incidents, such as quality and safety concerns or incidents related to our manufacturers’ products, could lead to tangible adverse effects on our business, including lost sales or team member retention and recruiting difficulties. In addition, vendors and others with whom we choose to do business may affect our reputation. Our operations are dependent upon key personnel and team members.
Negative incidents, such as quality and safety concerns or incidents related to our manufacturers’ products, could lead to tangible adverse effects on our business, including lost sales or team member retention and recruiting difficulties.
In addition, an uncorrected defect or supplier's variation in a raw material, part, or component, either unknown to us or incompatible with our manufacturing process, could jeopardize our ability to manufacture products.
It may be difficult to find a replacement supplier for a limited or sole source raw material, part, or component without significant delay or on commercially reasonable terms. In addition, an uncorrected defect or supplier's variation in a raw material, part, or component, either unknown to us or incompatible with our manufacturing process, could jeopardize our ability to manufacture products.
As a result of one or more of these factors, the trading price of our common stock could decline. Certain activist shareholder actions could cause us to incur expense and hinder execution of our strategies. We actively engage in discussions with our shareholders regarding further strengthening our Company and creating long-term shareholder value.
In addition, one or more of these analysts could downgrade our common stock or issue other negative commentary about our company or our industry. As a result of one or more of these factors, the trading price of our common stock could decline. Certain activist shareholder actions could cause us to incur expense and hinder execution of our strategies.
We may hedge certain foreign currency exposures to lessen and delay, but not to completely eliminate, the effects of foreign currency fluctuations on our financial results. Our future financial results could be significantly affected by the value of the U.S. dollar in relation to the foreign currencies in which we conduct business.
We may hedge certain foreign currency exposures to lessen and delay, but not to completely eliminate, the effects of foreign currency fluctuations on our financial results.
Marinas are specific-use properties and may contain features or assets that have limited alternative uses. These properties may also have distinct operational functions that involve specific procedures and training.
These properties may also have distinct operational functions that involve specific procedures and training.
Our sales have been, and may further be, adversely impacted by recent increases, and likely future increases, in interest rates and adverse changes in fiscal policy or credit market conditions.
To the extent such inflation continues, increases, or both, it may reduce our margins and have a material adverse effect on our financial performance. Our sales have been, and may further be, adversely impacted by recent increases in interest rates and adverse changes in fiscal policy or credit market conditions.
If securities analysts do not publish research or reports about our company, or if they issue unfavorable commentary about us or our industry or downgrade our common stock, the price of our common stock could decline. 32 The trading market for our common stock depends in part on the research and reports that third-party securities analysts publish about our company and our industry.
We have never paid cash dividends on our common stock and we have no current intention to do so for the foreseeable future. If securities analysts do not publish research or reports about our company, or if they issue unfavorable commentary about us or our industry or downgrade our common stock, the price of our common stock could decline.
We may be unable to obtain, renew or maintain permits, licenses and approvals necessary for the operation of our marinas. Governmental bodies control much of the land located beneath and surrounding many of our marinas and lease such land to MarineMax and IGY Marinas under leases that typically range from five to 50 years.
Governmental bodies control much of the land located beneath and surrounding many of our marinas and lease such land to MarineMax and IGY Marinas under leases that typically range from five to 50 years. As a result, it is unlikely that we can obtain fee-simple title to the land on or near these marinas.
Furthermore, the geopolitical and economic uncertainty and/or instability that may result from changes in the relationship among the United States, Taiwan and China, may, directly or indirectly, materially harm our business, financial condition and financial performance. For example, certain of our suppliers are dependent on products sourced from Taiwan.
Our future financial results could be significantly affected by the value of the U.S. dollar in relation to the foreign currencies in which we conduct business. 24 Furthermore, the geopolitical and economic uncertainty and/or instability that may result from changes in the relationship among the United States, Taiwan and China, may, directly or indirectly, materially harm our business, financial condition and financial performance.
The Ukraine crisis could have a significant adverse effect on our business, results of operations, financial condition, and cash flow in the future. The Ukraine crisis raises a host of potential threats and risk factors to consider even though we do not conduct significant business directly in Ukraine or Russia.
The Ukraine and Middle East conflicts raise a host of potential threats and risk factors to our business. Even though we do not conduct significant business directly in Ukraine or Russia, IGY manages a marina in the Middle East (Asia).
These regulations could discourage potential buyers, thereby limiting future sales and adversely affecting our business, financial condition, and results of operations. 31 Risks Related to Cybersecurity Increased cybersecurity requirements, vulnerabilities, threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, data and our third-party service providers.
Risks Related to Cybersecurity Increased cybersecurity requirements, threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, data and our third-party service providers. Our business operations could be negatively impacted by an outage or breach of our informational technology systems or a cybersecurity event.
While we attempt to mitigate these risks by employing extensive measures, including employee training, defensive systems, monitoring and testing, and maintenance of protective systems and contingency plans, we remain potentially vulnerable to additional known or unknown threats. We may also have access to sensitive, confidential or personal data or information that is subject to privacy, security laws, and regulations.
While we attempt to mitigate these risks by employing extensive measures, including employee training, defensive systems, proactive monitoring and testing, and maintenance of protective systems and contingency plans, we remain potentially vulnerable to additional known or unknown threats. See “Item 1C. Cybersecurity” included in this report for a discussion of our cybersecurity procedures and policies.
More recently, inflation has increased in the United States and throughout the world. This has affected the prices manufacturers charge us, as well as the prices that we charge our customers. To the extent such inflation continues, increases, or both, it may reduce our margins and have a material adverse effect on our financial performance.
More recently, inflation has increased in the United States and throughout the world although it has slowly decreased since its peak in 2022. High inflation has affected the prices manufacturers charge us, as well as the prices that we charge our customers.
Additionally, certain states have required or are considering requiring a license in order to operate a recreational boat.
Additionally, certain states have required or are considering requiring a license in order to operate a recreational boat. These regulations could discourage potential buyers, thereby limiting future sales and adversely affecting our business, financial condition, and results of operations.
Should inflation and increased rates continue to occur, prospective consumers may choose to forego or delay their purchases or buy a less expensive boat in the event credit is not available to finance their boat purchases. 21 Changes in accounting standards could significantly affect our results of operations and the presentation of those results.
Although inflation has decreased since its peak in 2022, if inflation continues to occur and if the Federal Reserve fails to cut interest rates further or raises interest rates again, prospective consumers may choose to forego or delay their purchases or buy a less expensive boat in the event credit is not available to finance their boat purchases.
As a result of the foregoing, we cannot assure you that the IGY Marinas acquisition will be accretive to us in the near term or at all. Furthermore, if we fail to realize the intended benefits of the IGY Marinas acquisition, the market price of our common stock could decline to the extent that the market price reflects those benefits.
Furthermore, if we fail to realize the intended benefits of the IGY Marinas acquisition, the market price of our common stock could decline to the extent that the market price reflects those benefits. The Ukraine and Middle East conflicts could have a significant adverse effect on our business, results of operations, financial condition, and cash flow in the future.
Removed
Higher energy costs result in increases in operating expenses 25 at our manufacturing facilities, in the expense of shipping raw materials to our facilities, and in the expense of shipping products to our customers.
Added
The ultimate impact of the conflicts in Ukraine and the Middle East on fuel prices, inflation, the global supply chain and other macroeconomic conditions is unknown and could materially adversely affect global economic growth, disrupting discretionary spending habits and generally decreasing demand for our products and services.
Removed
Higher energy, costs and availability of raw materials, parts, components, and fuel costs along with adequate supply may adversely affect our business. All of the recreational boats we sell are powered by diesel or gasoline engines.
Added
In addition, vendors and others with whom we choose to do business may affect our reputation. 28 Our operations are dependent upon key personnel and team members.
Removed
It may be difficult to find a 26 replacement supplier for a limited or sole source raw material, part, or component without significant delay or on commercially reasonable terms.
Added
Additionally, overly burdensome laws, rules, or policies governing the use of recreational boats or yachts in coastal areas and other waterways could adversely affect demand for our products and services. Marinas may not be readily adaptable to other uses. Marinas are specific-use properties and may contain features or assets that have limited alternative uses.
Removed
As a result, it is unlikely that we can obtain fee-simple title to the land on or near these marinas.
Added
The failure to satisfy those and other regulatory requirements could have a material adverse effect on our business, financial condition, and results of operations, as well as potentially the assessment of damages, the imposition of penalties, changes to our processes, or a cessation of our operations, and/or damage to our image and reputation.
Removed
Our results on a quarterly basis can fluctuate due to this cyclicality and seasonality.
Added
We may also have access to sensitive, confidential or personal data or information that is subject to privacy, security laws, and regulations.
Removed
We also are subject to laws, ordinances, and regulations governing investigation and remediation of contamination at facilities we operate or to which we send hazardous or toxic substances or wastes for treatment, recycling or disposal.
Added
As previously disclosed in a Current Report on Form 8-K filed with the SEC on March 12, 2024 and a Current Report on Form 8-K/A filed with the SEC on April 1, 2024, we experienced a cybersecurity incident (the “Incident”) whereby a cybercrime organization accessed a limited portion of our information environment that included some personally identifiable information.
Removed
Our business operations could be negatively impacted by an outage or breach of our informational technology systems or a cybersecurity event. Our business is dependent upon the efficient operation of our technology platform. The platform facilitates the interchange of information and enhances cross-selling opportunities throughout our company.
Added
Although as of the date of this Annual Report on Form 10-K, the incident has not resulted in material impacts to the Company’s operations, financial conditions or results of operations, the 32 Company remains subject to risks and uncertainties as a result of the incident and any future instances of unauthorized access to our information environment could have material adverse effects on our business.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe Product Manufacturing segment operates out of four owned manufacturing properties, three in the Green Bay, Wisconsin metropolitan area, and one in Largo, Florida. We also own a manufacturing property in Swansboro, North Carolina that is currently being leased to third-parties. Additionally, we have one leased office in Dania, Florida.
Biggest changeWe also own a manufacturing property in Swansboro, North Carolina that is currently being leased to third-parties. Additionally, we have one leased office in Dania, Florida. We believe that our properties are suitable and adequate for our current needs. We believe that our manufacturing facilities have adequate capacity to meet our current and anticipated demand.
Croix River Crosslake Company owned 68,040 Retail, marina, service and storage; 56 wet slips 2023 Whitefish Chain of Lakes Excelsior Third-party lease 2,500 Retail only; 14 wet slips 2013 Lake Minnetonka Rogers Company owned 69,512 Retail, service, and storage 1991 — Nisswa Company owned 108,400 Retail, service, and storage 2021 Nisswa Lake Missouri Lake Ozark Company owned 60,300 Retail, marina, service, and storage; 218 wet slips 1987 Lake of the Ozarks Laurie (3) Company owned 700 Retail — — Osage Beach Company owned 2,000 Retail and service 1987 — New Jersey Brant Beach Company owned 3,800 Retail, service, and storage; 36 wet slips 1965 Barnegat Bay Brick Company owned 20,000 Retail, service, and storage; 225 wet slips 1977 Manasquan River Lake Hopatcong Company owned 4,600 Retail and service; 80 wet slips 1998 Lake Hopatcong Ship Bottom Company owned 19,300 Retail and service 1972 — Somers Point Company owned 35,000 Retail, service, and storage; 33 wet slips 1987 Little Egg Harbor Bay Ocean View Company owned 13,800 Retail, service, and storage 2018 — New York Huntington Third-party lease 1,200 Retail and service 1995 Huntington Harbor and Long Island Sound North Carolina Lake Norman Third-party lease 10,300 Retail only 2017 — Wrightsville Beach Third-party lease 34,500 Retail, service, and storage; 42 wet slips 1996 Masonboro Inlet Ohio Marina Del Isle Company owned 163,153 Retail, marina, service and storage; 189 wet slips 2020 Lake Erie Port Clinton Company owned 80,000 Retail, service and storage 1997 Lake Erie Oklahoma Grand Lake Company owned 3,500 Retail and service; 23 wet slips 2019 Grand Lake Rhode Island Newport Third-party lease 700 Retail only 2011 Newport Harbor South Carolina Charleston Third-party lease 14,800 Retail, service, and storage 2017 — Greenville Third-party lease 24,500 Retail, service, and storage 2017 — Lake Wylie Third-party lease 76,400 Retail, marina, service and storage; 82 wet slips 2017 Lake Wylie Texas Austin Third-party lease 26,000 Retail and service 2019 — San Antonio Third-party lease 14,100 Retail and service 2019 — Lakeway Third-party lease 10,000 Retail only 2019 — Lewisville (Dallas) Company owned 22,000 Retail and service 2002 — Seabrook Company owned 127,740 Retail, service, marina, and storage; 34 wet slips 2002 Clear Lake Fort Worth Company owned 40,162 Retail and service 2021 — 35 Washington Seattle Third-party lease 400 Retail only, 6 wet slips 2020 Lake Union Wisconsin Harbor Club Marina Third-party lease 1,000 Marina, 140 wet slips 2020 Sturgeon Bay Lake Geneva Third-party lease 114,900 Retail, service and storage; 2 wet slips 2020 — Madison Third-party lease 138,300 Retail, marina, service and storage; 135 wet slips 2020 Lake Mendota Milwaukee Third-party lease 68,100 Retail, service and storage; 11 wet slips 2020 Kinnickinnic River Oshkosh Third-party lease 98,300 Retail, marina, service and storage; 98 wet slips 2020 Lake Butte Des Mortes Pewaukee Third-party lease 157,200 Retail, service and storage; 2020 — Sturgeon Bay Third-party lease 222,200 Retail, marina, service and storage; 260 wet slips 2020 Sturgeon Bay British Virgin Islands Tortola Third-party lease 2,600 Vacation charters; 45 wet slips 2011 Caribbean Sea (1) Square footage is approximate and does not include outside sales space or dock or marina facilities.
Croix River Crosslake Company owned 68,040 Retail, marina, service and storage; 56 wet slips 2023 Whitefish Chain of Lakes Excelsior Third-party lease 2,500 Retail only; 14 wet slips 2013 Lake Minnetonka Rogers Company owned 69,512 Retail, service, and storage 1991 — Nisswa Company owned 108,400 Retail, service, and storage 2021 Nisswa Lake Missouri Lake Ozark Company owned 60,300 Retail, marina, service, and storage; 218 wet slips 1987 Lake of the Ozarks Laurie (3) Company owned 700 Retail — — Osage Beach Company owned 2,000 Retail and service 1987 — New Jersey Brant Beach Company owned 3,800 Retail, service, and storage; 36 wet slips 1965 Barnegat Bay Brick Company owned 20,000 Retail, service, and storage; 225 wet slips 1977 Manasquan River Lake Hopatcong Company owned 4,600 Retail and service; 80 wet slips 1998 Lake Hopatcong Ship Bottom (3) Company owned 19,300 Retail and service 1972 — Somers Point Company owned 35,000 Retail, service, and storage; 33 wet slips 1987 Little Egg Harbor Bay Ocean View Company owned 13,800 Retail, service, and storage 2018 — New York Huntington Third-party lease 1,200 Retail and service 1995 Huntington Harbor and Long Island Sound North Carolina Lake Norman Third-party lease 10,300 Retail only 2017 — Wrightsville Beach Third-party lease 34,500 Retail, service, and storage; 42 wet slips 1996 Masonboro Inlet 36 Ohio Marina Del Isle Company owned 163,153 Retail, marina, service and storage; 189 wet slips 2020 Lake Erie Port Clinton Company owned 80,000 Retail, service and storage 1997 Lake Erie Oklahoma Grand Lake Company owned 3,500 Retail and service; 23 wet slips 2019 Grand Lake Rhode Island Newport Third-party lease 700 Retail only 2011 Newport Harbor South Carolina Charleston Third-party lease 14,800 Retail, service, and storage 2017 — Greenville Third-party lease 24,500 Retail, service, and storage 2017 — Lake Wylie Third-party lease 76,400 Retail, marina, service and storage; 82 wet slips 2017 Lake Wylie Texas Austin Third-party lease 26,000 Retail and service 2019 — Lewisville (Dallas) Company owned 22,000 Retail and service 2002 — Seabrook Company owned 127,740 Retail, service, marina, and storage; 34 wet slips 2002 Clear Lake Fort Worth (3) Company owned 40,162 Retail and service 2021 — Washington Seattle Third-party lease 400 Retail only, 6 wet slips 2020 Lake Union Wisconsin Harbor Club Marina Third-party lease 1,000 Marina, 140 wet slips 2020 Sturgeon Bay Lake Geneva Third-party lease 114,900 Retail, service and storage; 2 wet slips 2020 — Madison Third-party lease 138,300 Retail, marina, service and storage; 135 wet slips 2020 Lake Mendota Milwaukee Third-party lease 68,100 Retail, service and storage; 11 wet slips 2020 Kinnickinnic River Oshkosh Third-party lease 98,300 Retail, marina, service and storage; 98 wet slips 2020 Lake Butte Des Mortes Pewaukee Third-party lease 157,200 Retail, service and storage; 2020 — Sturgeon Bay Third-party lease 222,200 Retail, marina, service and storage; 260 wet slips 2020 Sturgeon Bay British Virgin Islands Tortola Third-party lease 2,600 Vacation charters; 45 wet slips 2011 Caribbean Sea (1) Square footage is approximate and does not include outside sales space or dock or marina facilities.
Katharine Docks Managed (2) France IGY Sète Marina Third-party lease IGY Vieux – Port de Cannes Joint venture Italy, Sardinia IGY Portisco Marina Company owned and third-party lease (3) Marina Di Porto Cervo (Marina & Shipyard) Managed (2) Mexico Marina Cabo San Lucas Company owned and third-party lease (3) Panama Red Frog Beach Island Marina Third-party lease Providenciales, Turks & Caicos Blue Haven Marina Marketed (1) Kingdom of Saudi Arabia NEOM Sindalah Island Managed (2) Spain IGY Málaga Marina Joint venture Málaga Marina San Andres Managed (2) IGY Ibiza Marina Joint venture St.
Katharine Docks Managed (2) France IGY Sète Marina Third-party lease IGY Vieux – Port de Cannes Joint venture Italy, Sardinia IGY Portisco Marina Company owned and third-party lease (3) Marina Di Porto Cervo (Marina & Shipyard) Managed (2) Mexico Marina Cabo San Lucas Company owned and third-party lease (3) Panama Red Frog Beach Island Marina Third-party lease Providenciales, Turks & Caicos Blue Haven Marina Marketed (1) Kingdom of Saudi Arabia Sindalah Marina Managed (2) Spain IGY Málaga Marina Joint venture Málaga San Andres Marina Managed (2) IGY Ibiza Marina Joint venture St.
Clair 34 Cass Lake Third-party lease 31,600 Retail, marina, service and storage; 124 wet slips 2020 Cass Lake Grand Haven Third-party lease 32,000 Retail, service, and storage; 6 wet slips 2020 Spring Lake Lake Fenton Third-party lease 57,900 Retail, marina, service and storage; 123 wet slips 2020 Lake Fenton Mac Ray Harbor Third-party lease 300 Retail only, 4 wet slips 2020 Lake St.
Clair Cass Lake Third-party lease 31,600 Retail, marina, service and storage; 124 wet slips 2020 Cass Lake Grand Haven Third-party lease 32,000 Retail, service, and storage; 6 wet slips 2020 Spring Lake Lake Fenton Third-party lease 57,900 Retail, marina, service and storage; 123 wet slips 2020 Lake Fenton Mac Ray Harbor Third-party lease 300 Retail only, 4 wet slips 2020 Lake St.
Item 2. P roperties The Retail Operations segment includes our leased corporate offices in Clearwater, Florida. We also lease 49 properties under leases in the United States and British Virgin Islands, many of which contain multi-year renewal options and some of which grant us right of first refusal to purchase the property at fair value.
Item 2. P roperties The Retail Operations segment includes our leased corporate offices in Clearwater, Florida. We also lease 46 properties under leases in the United States and British Virgin Islands, many of which contain multi-year renewal options and some of which grant us right of first refusal to purchase the property at fair value.
Location Location Type Square Footage(1) Facilities at Property Operated Since(2) Waterfront Alabama Gulf Shores Company owned 4,000 Retail and service 1998 — California Newport Beach Third-party lease 1,000 Retail only, 4 wet slips 2020 Newport Bay San Diego Third-party lease 1,400 Retail only, 12 wet slips 2020 San Diego Bay Sausalito Third-party lease 2,000 Retail and service; 6 wet slips 2020 Richardson Bay Connecticut Norwalk Third-party lease 9,000 Retail and service; 42 wet slips 1994 Norwalk Harbor Westbrook Third-party lease 4,200 Retail and service 1998 Westbrook Harbor Florida Cape Haze Company owned 18,000 Retail and Service, 12 wet slips — Intracoastal Waterway Clearwater Company owned 42,000 Retail and service; 18 wet slips 1973 Tampa Bay Cocoa Company owned 15,000 Retail and service 1968 — Dania Company owned 32,000 Repair and service; 10 wet slips 1991 Port Everglades Fisher Island Third-party lease 1,393 Retail only 2023 Norris Cut 33 Fort Walton Beach Company owned 4,500 Retail and service; 14 wet slips 2019 Choctawhatchee Bay Fort Myers Company owned 60,000 Retail, service, marina and storage; 124 wet slips 1983 Caloosahatchee River Jacksonville Third-party lease 9,000 Retail and service 2016 Intracoastal Waterway Jupiter Third-party lease 2,187 Retail and service 2023 Loxahatchee River Key Largo Third-party lease 8,900 Retail and service; 24 wet slips 2002 Card Sound Miami Company owned 7,200 Retail and service; 17 wet slips 1980 Little River Miami Company owned 5,000 Service only; 12 wet slips 2005 Little River Naples Company owned 19,600 Retail and service; 17 wet slips 1997 Naples Bay North Palm Beach Third-party lease 1,000 Retail only 2016 Intracoastal Waterway Orlando Third-party lease 18,400 Retail and service 1984 — Panama City Third-party lease 10,500 Retail only; 8 wet slips 2011 Saint Andrews Bay Pensacola Company owned 52,800 Retail, service, marina, and storage; 60 wet slips 2016 Pensacola Bay Pompano Beach Company owned 23,000 Retail and service; 17 wet slips 1990 Intracoastal Waterway Pompano Beach Company owned 5,400 Retail and service; 24 wet slips 2005 Intracoastal Waterway Sarasota Third-party lease 26,500 Retail, service, and storage; 14 wet slips 1972 Sarasota Bay St.
Location Location Type Square Footage(1) Facilities at Property Operated Since(2) Waterfront Alabama Gulf Shores Company owned 4,000 Retail and service 1998 — California Newport Beach Third-party lease 1,000 Retail only, 4 wet slips 2020 Newport Bay San Diego Third-party lease 1,400 Retail only, 12 wet slips 2020 San Diego Bay Sausalito Third-party lease 2,000 Retail and service; 6 wet slips 2020 Richardson Bay Connecticut Norwalk Third-party lease 9,000 Retail and service; 42 wet slips 1994 Norwalk Harbor Westbrook Third-party lease 4,200 Retail and service 1998 Westbrook Harbor Florida Cape Haze (3) Company owned 18,000 Retail and Service, 12 wet slips — Intracoastal Waterway Clearwater Company owned 42,000 Retail and service; 18 wet slips 1973 Tampa Bay Cocoa Company owned 15,000 Retail and service 1968 — Dania Company owned 32,000 Repair and service; 10 wet slips 1991 Port Everglades Fort Walton Beach Company owned 4,500 Retail and service; 14 wet slips 2019 Choctawhatchee Bay Fort Myers Company owned 60,000 Retail, service, marina and storage; 124 wet slips 1983 Caloosahatchee River Islamorada Third-party lease 500 Retail, service 2023 Florida Keys Jacksonville Third-party lease 9,000 Retail and service 2016 Intracoastal Waterway Jupiter Third-party lease 2,187 Retail and service 2023 Loxahatchee River Key Largo Third-party lease 8,900 Retail and service; 24 wet slips 2002 Card Sound Miami Company owned 7,200 Retail and service; 17 wet slips 1980 Little River Miami Company owned 5,000 Service only; 12 wet slips 2005 Little River Naples Company owned 19,600 Retail and service; 17 wet slips 1997 Naples Bay North Palm Beach Third-party lease 1,000 Retail only 2016 Intracoastal Waterway Orlando Third-party lease 18,400 Retail and service 1984 — Panama City Third-party lease 10,500 Retail only; 8 wet slips 2011 Saint Andrews Bay Pensacola Company owned 52,800 Retail, service, marina, and storage; 60 wet slips 2016 Pensacola Bay Pompano Beach Company owned 23,000 Retail and service; 17 wet slips 1990 Intracoastal Waterway Pompano Beach Company owned 5,400 Retail and service; 24 wet slips 2005 Intracoastal Waterway Sarasota Third-party lease 26,500 Retail, service, and storage; 14 wet slips 1972 Sarasota Bay St.
Petersburg Company owned 12,000 Retail and service; 96 wet slips 2006 Boca Ciega Bay Stuart Company owned 22,400 Retail, marina and service; 57 wet slips 2002 Intracoastal Waterway Tarpon Springs Company owned 5,740 Service only; 18 wet slips 2022 Anclote River Venice Company owned 62,000 Retail, marina, service, and storage; 73 wet slips 1972 Intracoastal Waterway West Palm Beach Third-party lease 1,678 Retail only 2023 — Georgia Buford (Atlanta) (3) Company owned 13,500 Retail and service 2001 — Cumming (Atlanta) Third-party lease 13,500 Retail and service; 50 wet slips 1981 Lake Lanier Savannah Third-party lease 50,600 Retail, marina, service and storage; 36 wet slips 2017 Wilmington River Illinois Praire Harbor Third-party lease 3,500 Marina, 140 wet slips 2020 Lake Michigan Sequoit Harbor Antioch Third-party lease 85,300 Retail, marina, service and storage; 208 wet slips 2020 Lake Marie Winthrop Harbor Third-party lease 319,100 Retail, marina, service and storage; 53 wet slips 2020 Lake Michigan Maryland Baltimore Third-party lease 7,600 Retail and service; 17 wet slips 2005 Baltimore Inner Harbor Kent Island Third-party lease 30,500 Retail, service, and storage 2021 Kent Narrows Joppa (3) Company owned 28,400 Retail, service, and storage; 294 wet slips 1966 Gunpowder River Massachusetts Danvers Third-party lease 32,000 Retail and service 2016 — Quincy Company owned 14,700 Retail, service, and storage; 247 wet slips 2018 Town River Michigan Bay City Third-party lease 195,800 Retail, marina, service and storage; 59 wet slips 2020 Saginaw River Bele Mear Harbor Third-party lease 8,500 Retail and service, 4 wet slips 2020 Lake St.
Petersburg Company owned 12,000 Retail and service; 96 wet slips 2006 Boca Ciega Bay Stuart Company owned 22,400 Retail, marina and service; 57 wet slips 2002 Intracoastal Waterway Tarpon Springs (3) Company owned 5,740 Service only; 18 wet slips 2022 Anclote River Venice Company owned 62,000 Retail, marina, service, and storage; 73 wet slips 1972 Intracoastal Waterway West Palm Beach Third-party lease 1,678 Retail only 2023 — Georgia Buford (Atlanta) (3) Company owned 13,500 Retail and service 2001 — 35 Cumming (Atlanta) Third-party lease 13,500 Retail and service; 50 wet slips 1981 Lake Lanier Savannah Third-party lease 50,600 Retail, marina, service and storage; 36 wet slips 2017 Wilmington River Illinois Prairie Harbor Third-party lease 3,500 Marina, 140 wet slips 2020 Lake Michigan Sequoit Harbor Antioch Third-party lease 85,300 Retail, marina, service and storage; 208 wet slips 2020 Lake Marie Winthrop Harbor Third-party lease 319,100 Retail, marina, service and storage; 53 wet slips 2020 Lake Michigan Maryland Kent Island Third-party lease 30,500 Retail, service, and storage 2021 Kent Narrows Joppa (3) Company owned 28,400 Retail, service, and storage; 294 wet slips 1966 Gunpowder River Massachusetts Danvers Third-party lease 32,000 Retail and service 2016 — Quincy Company owned 14,700 Retail, service, and storage; 247 wet slips 2018 Town River Michigan Bay City Third-party lease 195,800 Retail, marina, service and storage; 59 wet slips 2020 Saginaw River Bele Mear Harbor Third-party lease 8,500 Retail and service, 4 wet slips 2020 Lake St.
Petersburg Managed (2) United States, New York North Cove Marina at Brookfield Place Managed (2) United States Virgin Islands, Saint Thomas Yacht Haven Grande Company owned and third-party lease (3) American Yacht Harbor Company owned and third-party lease (3) (1) Marinas are marketed under the IGY Marinas brand. (2) Marinas are managed by IGY Marinas.
Petersburg Managed (2) United States, Georgia IGY Savannah Harbor Marina Company owned and third-party lease (3) United States, New York North Cove Marina at Brookfield Place Managed (2) United States Virgin Islands, Saint Thomas Yacht Haven Grande Company owned and third-party lease (3) American Yacht Harbor Company owned and third-party lease (3) (1) Marinas are marketed under the IGY Marinas brand.
Maarten Simpson Bay Marina Third-party lease Yacht Club Isle de Sol Third-party lease St. Lucia Rodney Bay Marina Company owned United States, Florida Yacht Haven Grande Miami Third-party lease Maximo Marina, St.
Maarten Simpson Bay Marina Third-party lease Yacht Club Isle de Sol Third-party lease St. Lucia Rodney Bay Marina Company owned United States, Florida Yacht Haven Grande Miami at Island Gardens Third-party lease Maximo Marina, St.
(2) Operated since date is the date the facility was opened by us or opened prior to its acquisition by us. (3) Owned location that is leased to a third-party or available for lease. 36 IGY Marinas offers a global network of marinas in the Americas, the Caribbean, Europe, and Asia.
(2) Operated since date is the date the facility was opened by us or opened prior to its acquisition by us. (3) Owned location that is leased to a third-party or held for sale. 37 IGY Marinas offers a global network of marinas in the Americas, the Caribbean, Europe, and Asia.
In most cases, we pay a fixed rent at negotiated rates. In substantially all of the leased locations, we are responsible for taxes, utilities, insurance, and routine repairs and maintenance. We own 38 properties associated with the retail locations we operate.
In most cases, we pay a fixed rent at negotiated rates. In substantially all of the leased locations, we are responsible for taxes, utilities, insurance, and routine repairs and maintenance. We own 38 properties associated with the retail locations we operate. Additionally, we have six retail locations that are currently leased to a third-party or are held for sale.
The following table reflects the status, approximate size, and facilities of the various retail locations in the United States and British Virgin Islands we operate as of the date of this report.
Fraser Yachts Group and Northrop & Johnson lease offices in the United States and Europe. 34 The following table reflects the status, approximate size, and facilities of the various retail locations in the United States and British Virgin Islands we operate as of the date of this report.
(3) Owned or controlled through third-party leases or concession agreements. We have leased offices in the United States through the Fraser Yachts Group and Northrop & Johnson in Ft. Lauderdale, Florida and San Diego, California as well as leased offices outside the United States in Monaco, France, Italy, Spain, Qatar, Greece and the United Kingdom.
(2) Marinas are managed by IGY Marinas. (3) Owned or controlled through third-party leases or concession agreements. We have leased offices in the United States through the Fraser Yachts Group and Northrop & Johnson in Ft.
We believe that our properties are suitable and adequate for our current needs. We believe that our manufacturing facilities have adequate capacity to meet our current and anticipated demand. We believe that our properties are well maintained and in good operating condition. 37
We believe that our properties are well maintained and in good operating condition. 38
Additionally, we own three retail locations that are currently leased to a third-party or available for lease as noted below. A store is considered one or more retail locations that are adjacent or operate as one entity. Fraser Yachts Group and Northrop & Johnson lease offices in the United States and Europe.
A store is considered one or more retail locations that are adjacent or operate as one entity.
Added
Lauderdale, Florida and San Diego, California as well as leased offices outside the United States in Monaco, France, Italy, Spain, Greece and the United Kingdom. The Product Manufacturing segment operates out of four owned manufacturing properties, three in the Green Bay, Wisconsin metropolitan area, and one in Largo, Florida.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings We are party to various legal actions arising in the ordinary course of business. While it is not feasible to determine the actual outcome of these actions as of September 30, 2023, we do not believe that these matters will have a material adverse effect on our consolidated financial condition, results of operations or cash flows.
Biggest changeItem 3. Legal Proceedings We are party to various legal actions arising in the ordinary course of business. While it is not feasible to determine the actual outcome of these actions as of September 30, 2024, we do not believe that these matters will have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+1 added−2 removed2 unchanged
Biggest change(2) 80,344 shares reported in September 2023 are attributable to shares tendered by employees for the payment of applicable withholding taxes in connection with the vesting of restricted stock or restricted stock unit awards. 39 Performance Graph The following line graph compares cumulative total shareholder returns for the five years ended September 30, 2023 for (i) our common stock, (ii) the Russell 2000 Index, and (iii) the Nasdaq Retail Trade Index.
Biggest changePerformance Graph The following line graph compares cumulative total shareholder returns for the five years ended September 30, 2024 for (i) our common stock, (ii) the Russell 2000 Index, and (iii) the Nasdaq Retail Trade Index. The graph assumes an investment of $100 on September 30, 2019.
The performance graph above will not be deemed incorporated by reference into any filing of our company under the Exchange Act or the Securities Act of 1933, as amended. Item 6 . [Reserved] 40
The performance graph above will not be deemed incorporated by reference into any filing of our company under the Exchange Act or the Securities Act of 1933, as amended. Item 6 . [Reserved] 41
On November 13, 2023, there were approximately 50 record holders and approximately 20,000 beneficial owners of our common stock. Dividends We have never declared or paid cash dividends on our common stock. We currently plan to retain any earnings to finance the growth of our business rather than to pay cash dividends.
On November 12, 2024, there were approximately 50 record holders and approximately 18,500 beneficial owners of our common stock. Dividends We have never declared or paid cash dividends on our common stock. We currently plan to retain any earnings to finance the growth of our business rather than to pay cash dividends.
The performance graph above shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or Exchange Act, or otherwise subject to the liability of that section.
The historical performance shown is not necessarily indicative of future performance. The performance graph above shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or Exchange Act, or otherwise subject to the liability of that section.
Period Total Number of Shares Purchased (1)(2) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that may be Purchased Under the Plans or Programs July 1, 2023 to July 31, 2023 — $ — — 8,919,764 August 1, 2023 to August 31, 2023 — — — 8,919,764 September 1, 2023 to September 30, 2023 80,344 32.82 — 8,919,764 Total 80,344 $ 32.82 — 8,919,764 (1) Under the terms of the share repurchase program announced on March 16, 2020 and subsequently extended on March 1, 2022, the Company is authorized to purchase up to 10 million shares of its common stock through March 31, 2024.
Period Total Number of Shares Purchased (1)(2) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that may be Purchased Under the Plans or Programs July 1, 2024 to July 31, 2024 — $ — — 2,806,398 August 1, 2024 to August 31, 2024 — — — 3,085,092 September 1, 2024 to September 30, 2024 107,653 35.27 — 2,774,571 Total 107,653 $ 35.27 — 2,774,571 (1) Under the terms of the share repurchase program announced on March 11, 2024, the Company is authorized to purchase up to $100 million of its common stock through March 31, 2026.
Payments of any cash dividends in the future will depend on our financial condition, results of operations, statutory restrictions, loan covenants and capital requirements as well as other factors deemed relevant by our Board of Directors (such as market expectations).
Payments of any cash dividends in the future will depend on our financial condition, results of operations, statutory restrictions, loan covenants and capital requirements as well as other factors deemed relevant by our Board of Directors (such as market expectations). 39 Purchases of Equity Securities by the Issuer The following table presents information with respect to our repurchases of our common stock during the three months ended September 30, 2024.
High Low 2021 Fourth quarter $ 59.58 $ 46.10 2022 First quarter $ 61.06 $ 40.06 Second quarter $ 45.84 $ 35.10 Third quarter $ 44.03 $ 28.86 Fourth quarter $ 43.80 $ 29.14 2023 First quarter $ 34.62 $ 27.78 Second quarter $ 35.26 $ 26.71 Third quarter $ 34.26 $ 26.53 Fourth quarter (through November 13, 2023) $ 33.18 $ 27.12 On November 13, 2023, the closing sale price of our common stock was $28.16 per share.
High Low 2022 Fourth quarter $ 43.80 $ 29.14 2023 First quarter $ 34.62 $ 27.78 Second quarter $ 35.26 $ 26.71 Third quarter $ 34.26 $ 26.53 Fourth quarter $ 40.71 $ 31.33 2024 First quarter $ 39.21 $ 27.12 Second quarter $ 38.82 $ 27.95 Third quarter $ 36.21 $ 24.51 Fourth quarter (through November 12, 2024) $ 33.61 $ 28.69 On November 12, 2024, the closing sale price of our common stock was $30.83 per share.
The calculation of cumulative shareholder return on our common stock does not include reinvestment of dividends because we did not pay any dividends during the measurement period. The historical performance shown is not necessarily indicative of future performance.
The calculations of cumulative shareholder return on the Russell 2000 Index and the Dow Jones US Retail Total Stock Market Index include reinvestment of dividends. The calculation of cumulative shareholder return on our common stock does not 40 include reinvestment of dividends because we did not pay any dividends during the measurement period.
Removed
Purchases of Equity Securities by the Issuer The following table presents information with respect to our repurchases of our common stock during the three months ended September 30, 2023.
Added
The maximum number of shares that may be purchased is calculated based on the share price at the end of the period. (2) 107,653 shares reported in September 2024 are attributable to shares tendered by employees for the payment of applicable withholding taxes in connection with the vesting of restricted stock or restricted stock unit awards.
Removed
The graph assumes an investment of $100 on September 30, 2018. The calculations of cumulative shareholder return on the Russell 2000 Index and the Dow Jones US Retail Total Stock Market Index include reinvestment of dividends.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeResults of Operations The following table sets forth certain financial data as a percentage of revenue for the periods indicated: Fiscal Year Ended September 30, 2021 2022 2023 (Amounts in thousands) Revenue $ 2,063,257 100.0 % $ 2,308,098 100.0 % $ 2,394,706 100.0 % Cost of sales 1,403,824 68.0 % 1,502,344 65.1 % 1,559,377 65.1 % Gross profit 659,433 32.0 % 805,754 34.9 % 835,329 34.9 % Selling, general and administrative expenses 449,974 21.8 % 540,550 23.4 % 634,527 26.5 % Income from operations 209,459 10.2 % 265,204 11.5 % 200,802 8.4 % Interest expense 3,665 0.2 % 3,283 0.2 % 53,367 2.2 % Income before income taxes 205,794 10.0 % 261,921 11.3 % 147,435 6.2 % Income tax provision 50,815 2.5 % 63,932 2.7 % 37,957 1.6 % Net income 154,979 7.5 % 197,989 8.6 % 109,478 4.6 % Less: Net income attributable to non-controlling interests - 0.0 % - 0.0 % 196 0.0 % Net income attributable to MarineMax, Inc. $ 154,979 7.5 % $ 197,989 8.6 % $ 109,282 4.6 % Fiscal Year Ended September 30, 2023, Compared with Fiscal Year Ended September 30, 2022 Revenue .
Biggest changeResults of Operations The following table sets forth certain financial data as a percentage of revenue for the periods indicated: Fiscal Year Ended September 30, 2022 2023 2024 (Amounts in thousands) Revenue $ 2,308,098 100.0 % $ 2,394,706 100.0 % $ 2,431,008 100.0 % Cost of sales 1,502,344 65.1 % 1,559,377 65.1 % 1,629,812 67.0 % Gross profit 805,754 34.9 % 835,329 34.9 % 801,196 33.0 % Selling, general and administrative expenses 540,550 23.4 % 634,527 26.5 % 672,970 27.7 % Income from operations 265,204 11.5 % 200,802 8.4 % 128,226 5.3 % Interest expense 3,283 0.2 % 53,367 2.2 % 73,895 3.1 % Income before income taxes 261,921 11.3 % 147,435 6.2 % 54,331 2.2 % Income tax provision 63,932 2.7 % 37,957 1.6 % 15,593 0.6 % Net income 197,989 8.6 % 109,478 4.6 % 38,738 1.6 % Less: Net income attributable to non-controlling interests - 0.0 % 196 0.0 % 672 0.0 % Net income attributable to MarineMax, Inc. $ 197,989 8.6 % $ 109,282 4.6 % $ 38,066 1.6 % Fiscal Year Ended September 30, 2024, Compared with Fiscal Year Ended September 30, 2023 Revenue .
We recognize commissions earned from a brokerage sale when the related brokerage transaction closes upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance by the customer. We do not directly finance our customers’ boat, motor, or trailer purchases.
We recognize 43 commissions earned from a brokerage sale when the related brokerage transaction closes upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance by the customer. We do not directly finance our customers’ boat, motor, or trailer purchases.
The onset of the public boat and recreation shows in January generally stimulates boat sales and typically allows us to reduce our inventory levels and related short-term borrowings throughout the remainder of the fiscal year.
The onset of the public boat and recreation shows in January generally stimulates boat sales and typically allows us to reduce our inventory levels and related short-term borrowings 45 throughout the remainder of the fiscal year.
Intrepid Powerboats follows a direct-to-consumer distribution model and has received many awards and accolades for its innovations and high-quality craftsmanship that create industry leading products in their categories. Application of Critical Accounting Policies We have identified the policies below as critical to our business operations and the understanding of our results of operations.
Intrepid Powerboats follows a direct-to-consumer distribution model and has received many awards and accolades for its innovations and high-quality craftsmanship that create industry leading products in their categories. Critical Accounting Estimates We have identified the policies below as critical to our business operations and the understanding of our results of operations.
Discussions of fiscal 2021 items and year-to-year comparisons between fiscal 2022 and 2021 that are not included in this Form 10-K can be found in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022.
Discussions of fiscal 2022 items and year-to-year comparisons between fiscal 2023 and 2022 that are not included in this Form 10-K can be found in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023.
The Retail Operations segment includes the majority of all corporate costs. As of September 30, 2023, the Product Manufacturing segment includes activity of Cruisers Yachts and Intrepid Powerboats. Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufactures sport yacht and yachts with sales through our select retail dealership locations and through independent dealers.
The Retail Operations segment includes the majority of all corporate costs. As of September 30, 2024, the Product Manufacturing segment includes activity of Cruisers Yachts and Intrepid Powerboats. Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufactures sport yacht and yachts with sales through our select retail dealership locations and through independent dealers.
Any turmoil in the credit markets and weakness in the retail markets may interfere with our ability to remain in compliance with the covenants of the Amended Credit Facility and therefore affect our ability to utilize the Amended Credit Facility to fund operations. As of September 30, 2023, we were in compliance with all covenants under the Amended Credit Facility.
Any turmoil in the credit markets and weakness in the retail markets may interfere with our ability to remain in compliance with the covenants of the Amended Credit Facility and therefore affect our ability to utilize the Amended Credit Facility to fund operations. As of September 30, 2024, we were in compliance with all covenants under the Amended Credit Facility.
We base the chargeback allowance, which was not material to the consolidated financial statements taken as a whole as of September 30, 2022 and 2023, on our experience with repayments or defaults on the related finance contracts.
We base the chargeback allowance, which was not material to the consolidated financial statements taken as a whole as of September 30, 2023 and 2024, on our experience with repayments or defaults on the related finance contracts.
Although we have expanded our operations during periods of stagnant or modestly declining industry trends, the cyclical nature of the recreational boating industry or the lack of industry growth may adversely affect our business, financial condition, and 41 results of operations.
Although we have expanded our operations during periods of stagnant or modestly declining industry trends, 42 the cyclical nature of the recreational boating industry or the lack of industry growth may adversely affect our business, financial condition, and results of operations.
We completed three acquisitions in the fiscal year ended September 30, 2021, four acquisitions in the fiscal year ended September 30, 2022, and four acquisitions in the fiscal year ending September 30, 2023. General economic conditions and consumer spending patterns can negatively impact our operating results.
We completed four acquisitions in the fiscal year ended September 30, 2022, four acquisitions in the fiscal year ended September 30, 2023, and three acquisitions in the fiscal year ending September 30, 2024. General economic conditions and consumer spending patterns can negatively impact our operating results.
For the fiscal year ended September 30, 2023, cash provided by financing activities was primarily attributable to proceeds from long-term debt, increased short term borrowings, which solely consisted of the Floor Plan (as defined below), and net proceeds from issuance of common stock under incentive compensation and employee purchase plans, partially offset by payments on tax withholdings for equity awards, payments for long-term debt, and contingent acquisition consideration payments.
For the fiscal year ended September 30, 2024, cash provided by financing activities was primarily attributable to increased short term borrowings, which solely consisted of the Floor Plan (as defined below), and net proceeds from issuance of common stock under incentive compensation and employee purchase plans, partially offset by payments on tax withholdings for equity awards, payments for long-term debt, purchases of treasury stock, and contingent acquisition consideration payments.
Hurricanes and other storms could result in disruptions of our operations or damage to our boat inventories and facilities, as has been the case when Florida and other markets were affected by hurricanes, such as Hurricanes Harvey and Irma in 2017 and Hurricane Ian in 2022.
Hurricanes and other storms could result in disruptions of our operations or damage to our boat inventories and facilities, as has been the case when Florida and other markets were affected by hurricanes, such as Hurricanes Harvey and Irma in 2017, Hurricane Ian in 2022, and Hurricanes Helene and Milton in 2024.
As of September 30, 2023, the Retail Operations segment includes 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 we sell new and used recreational boats, including pleasure and fishing boats, with a focus on premium brands in each segment.
As of September 30, 2024, the Retail Operations segment includes the activity of over 75 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 we sell new and used recreational boats, including pleasure and fishing boats, with a focus on premium brands in each segment.
Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated approximately 50%, 51%, and 53% of our dealership revenue during fiscal 2021, 2022, and 2023, respectively, can have a major impact on our operations.
Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated approximately 51%, 53%, and 53% of our dealership revenue during fiscal 2022, 2023, and 2024, respectively, can have a major impact on our operations.
Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with maintenance and repair services. Contract assets, recorded in prepaid expenses and other current assets, totaled approximately $5.9 million and $5.3 million as of September 30, 2022 and September 30, 2023, respectively.
Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with maintenance and repair services. Contract assets, recorded in prepaid expenses and other current assets, totaled approximately $5.3 million and $5.7 million as of September 30, 2023 and September 30, 2024, respectively.
Overview We believe we are the largest recreational boat and yacht retailer and superyacht services company in the world. Through our current 81 retail locations in 21 states, we sell new and used recreational boats and related marine products, including engines, trailers, parts, and accessories.
Overview We believe we are the largest recreational boat and yacht retailer and superyacht services company in the world. Through our over 75 retail locations in 21 states, we sell new and used recreational boats and related marine products, including engines, trailers, parts, and accessories.
This section of this Form 10-K generally discusses fiscal 2023 and 2022 items and year-to-year comparisons between fiscal 2023 and 2022.
This section of this Form 10-K generally discusses fiscal 2024 and 2023 items and year-to-year comparisons between fiscal 2024 and 2023.
In October 2022, we completed the acquisition of IGY Marinas. IGY Marinas maintains a network of luxury marinas situated in yachting and sport fishing destinations around the world. IGY Marinas has created standards for service and quality in nautical tourism. It offers a global network of marinas in the Americas, the Caribbean, Europe, and Asia, delivering year-round accommodations.
IGY Marinas maintains a network of luxury marinas situated in yachting and sport fishing destinations around the world. IGY Marinas has created standards for service and quality in nautical tourism. It offers a global network of marinas in the Americas, the Caribbean, Europe, and Asia, delivering year-round accommodations.
Acquisitions We account for acquisitions in accordance with FASB ASC 805, “Business Combinations” (“ASC 805”). For business combinations, the excess of the purchase price over the estimated fair value of net assets acquired in a business combination is recorded as goodwill.
Goodwill We account for acquisitions in accordance with FASB ASC 805, “Business Combinations” (“ASC 805”), and goodwill in accordance with ASC 350, “Intangibles — Goodwill and Other” (“ASC 350”). For business combinations, the excess of the purchase price over the estimated fair value of net assets acquired in a business combination is recorded as goodwill.
Since the initial acquisitions in March 1998, we have, as of the filing of this Annual Report on Form 10-K, acquired 33 recreational boat dealers, five boat brokerage operations, two full-service yacht repair operations, five boat brokerage operations, and two boat and yacht manufacturers.
Since the initial acquisitions in March 1998, we have, as of the filing of this Annual Report on Form 10-K, acquired 35 recreational boat dealers, five boat brokerage operations, six superyacht service companies, two full-service yacht repair operations and two boat and yacht manufacturers.
For the fiscal year ended September 30, 2021, cash used in financing activities was primarily attributable to net payments for short-term borrowings, which solely consisted of the Floor Plan, purchase of treasury stock, payments on tax withholdings for equity awards, payments for long-term debt, and contingent acquisition consideration payments, partially offset by proceeds from long-term debt and net proceeds from issuance of common stock under incentive compensation and employee purchase plans.
For the fiscal year ended September 30, 2023, cash provided by financing activities was primarily attributable 46 to proceeds from long-term debt, increased short term borrowings, which solely consisted of the Floor Plan, and net proceeds from issuance of common stock under incentive compensation and employee purchase plans, partially offset by payments on tax withholdings for equity awards, payments for long-term debt, and contingent acquisition consideration payments.
As of September 30, 2023, short-term borrowings, which solely consisted of the Floor Plan, and long-term debt recorded on the Consolidated Balance Sheets included unamortized debt issuance costs of approximately $1.6 million and $1.9 million, respectively.
As of September 30, 2024, short-term borrowings, which solely consisted of the Floor Plan, and long-term debt recorded on the Consolidated Balance Sheets included unamortized debt issuance costs of approximately $1.3 million and $1.5 million, respectively.
For the fiscal year ended September 30, 2021, cash used in investing activities was primarily 45 used for acquisitions, to purchase property and equipment associated with improving existing retail facilities, and to purchase investments, partially offset by proceeds from insurance settlements.
For the fiscal year ended September 30, 2024, cash used in investing activities was primarily used for business acquisitions and to purchase property and equipment associated with improving existing retail facilities, partially offset by proceeds from the sale of property and equipment and insurance settlements.
The trade-in is a type of noncash consideration measured at fair value, based on external and internal observable and unobservable market data and applied as payment to the contract price for the purchased boat.
Customers may trade in a used boat to apply toward the purchase of a new or used boat. The trade-in is a type of noncash consideration measured at fair value, based on external and internal observable and unobservable market data and applied as payment to the contract price for the purchased boat.
None of our real estate has been pledged for collateral for the Amended Credit Agreement As of September 30, 2023, our indebtedness associated with our short-term borrowings, which solely consisted of the Floor Plan, and our long-term debt totaled approximately $538.7 million and $391.1 million, respectively.
None of our real estate has been pledged for collateral for the Amended Credit Agreement As of September 30, 2024, our indebtedness associated with our short-term borrowings, which solely consisted of the Floor Plan, and our long-term debt totaled approximately $709.0 million and $355.9 million, respectively.
The increase is due to a net $125.1 million increase from acquisitions that are not eligible for inclusion in the comparable-store base, partially offset by a decrease in manufacturing revenue which is not included in comparable store sales, and by a $38.5 million, or 1.7%, decrease in comparable-store sales.
The increase is due to a $29.4 million or 1% increase in comparable-store sales, in addition to a $6.6 million net increase from acquisitions and new locations that are not eligible for inclusion in the comparable-store base, partially offset by a decrease in manufacturing revenue which is not included in comparable store sales.
For the fiscal year ended September 30, 2023, cash used in operating activities was approximately $222.2 million. For the fiscal years ended September 30, 2022 and 2021, cash provided by operating activities was approximately $76.6 million, and $373.9 million, respectively.
For the fiscal year ended September 30, 2024 and 2023, cash used in operating activities was approximately $25.7 million and $222.2 million. For the fiscal year ended September 30, 2022, cash provided by operating activities was approximately $76.6 million.
For the fiscal years ended September 30, 2023 and 2022, cash provided by financing activities was approximately $770.4 million and $73.1 million, respectively. For the fiscal year ended September 30, 2021, cash used in financing activities was approximately $145.8 million.
For the fiscal years ended September 30, 2024, 2023, and 2022, cash provided by financing activities was approximately $128.5 million, $770.4 million and $73.1 million, respectively.
Income tax expense decreased $25.9 million, or 40.5%, to $38.0 million for the fiscal year ended September 30, 2023 from $63.9 million for the fiscal year ended September 30, 2022. Our effective income tax rate increased to 25.7% for the fiscal year ended September 30, 2023, from 24.4% for fiscal year ended September 30, 2022.
Income tax expense decreased $22.4 million, or 58.9%, to $15.6 million for the fiscal year ended September 30, 2024 from $38.0 million for the fiscal year ended September 30, 2023. Our effective income tax rate increased to 28.7% for the fiscal year ended September 30, 2024, from 25.7% for fiscal year ended September 30, 2023.
For the fiscal year ended September 30, 2021, cash provided by operating activities was primarily related to decreases in inventory, increases in contract liabilities (customer deposits), accrued expenses and other liabilities, and our net income adjusted for non-cash expenses and gains such as depreciation and amortization expense, deferred income tax provision, and stock-based compensation expense For the fiscal years ended September 30, 2023, 2022, and 2021, cash used in investing activities was approximately $576.4 million, $140.5 million, and $161.1 million, respectively.
For the fiscal year ended September 30, 2024, cash used in operating activities was primarily related to increases in inventory, increases in accounts receivable, decreases in contract liabilities (customer deposits) and decreases in accounts payable, partially offset by increases in accrued expenses and other liabilities, our net income adjusted for non-cash expenses and gains such as depreciation and amortization expense, deferred income tax provision, and stock-based compensation expense.
In November 2021, we acquired Intrepid Powerboats, a manufacturer of powerboats, and Texas MasterCraft, a watersports dealer in Northern Texas. In April 2022, through Northrop & Johnson, we acquired Superyacht Management, S.A.R.L., better known as SYM, a superyacht management company based in Golfe-Juan, France. In August 2022, we expanded our presence in Texas by acquiring Endeavour Marina in Seabrook.
In April 2022, through Northrop & Johnson, we acquired Superyacht Management, S.A.R.L., better known as SYM, a superyacht management company based in Golfe-Juan, France. In August 2022, we expanded our presence in Texas by acquiring Endeavour Marina in Seabrook. In October 2022, we completed the acquisition of IGY Marinas.
Additionally, the Federal Reserve's increases of its benchmark interest rate, along with potential future increases and/or market expectations of such increases, has resulted in, and may further result in, significantly higher long-term interest rates, which may negatively impact our customers’ willingness or desire to purchase our products.
Additionally, the Federal Reserve's prior increases of its benchmark interest rate have resulted in significantly higher long-term interest rates, which may continue to negatively impact our customers’ willingness or desire to purchase our products.
We believe that the following discussion addresses our most critical accounting policies, which are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult, subjective, and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. 42 Revenue Recognition We recognize revenue from boat, motor, and trailer sales upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance of the boat, motor, and trailer by the customer and the satisfaction of our performance obligations.
We believe that the following discussion addresses our most critical accounting policies, which are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult, subjective, and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
As a result, an economic downturn or inflation could impact us more than certain of our competitors due to our strategic focus on a higher end of our market.
As a result, an economic downturn or inflation could impact us more than certain of our competitors due to our strategic focus on a higher end of our market. However, the Federal Reserve has recently cut interest rates and is expected to further cut interest rates.
MarineMax was incorporated in January 1998 (and reincorporated in Florida in March 2015). We commenced operations with the acquisition of five independent recreational boat dealers on March 1, 1998.
In October 2024, our Cruisers Yachts subsidiary assumed the rights to MasterCraft's Aviara brand of luxury dayboats. MarineMax was incorporated in January 1998 (and reincorporated in Florida in March 2015). We commenced operations with the acquisition of five independent recreational boat dealers on March 1, 1998.
Based on the information currently available to us (including the impacts on consumer demand of the current supply chain and inventory challenges, inflation, higher interest rates, and potential recession, all of which are uncertain), we believe that the cash generated from sales and our existing capital resources will be adequate to meet our liquidity and capital requirements for at least the next 12 months, except in the case of possible significant acquisitions. 46 Commitments and Commercial Commitments The following table sets forth a summary of our material contractual obligations and commercial commitments as of September 30, 2023: Payments Due by Period Ending September 30, Total Less Than 1 Year (2024) 1-3 Years (2025 and 2026) 3-5 Years (2027 and 2028) More Than 5 Years (2029 and thereafter) (Amounts in thousands) Short-term borrowings (Floor Plan) (1) $ 538,665 $ 538,665 $ — $ — $ — Long-term debt (2) $ 424,899 33,767 67,534 312,173 11,425 Other liabilities (3) $ 95,113 5,959 83,454 5,700 — Operating leases (4) $ 335,324 16,182 30,600 27,284 261,258 Total $ 1,394,001 $ 594,573 $ 181,588 $ 345,157 $ 272,683 (1) Estimates of future interest payments for short-term borrowings have been excluded in the tabular presentation.
Based on the information currently available to us (including the impacts on consumer demand of the current supply chain and inventory challenges, inflation, interest rates, and potential recession, all of which are uncertain), we believe that the cash generated from sales and our existing capital resources will be adequate to meet our liquidity and capital requirements for at least the next 12 months, except in the case of possible significant acquisitions. 47 Commitments and Commercial Commitments The following table sets forth a summary of our material contractual obligations and commercial commitments as of September 30, 2024: Payments Due by Period Ending September 30, Total Less Than 1 Year (2025) 1-3 Years (2026 and 2027) 3-5 Years (2028 and 2029) More Than 5 Years (2030 and thereafter) (Amounts in thousands) Short-term borrowings (Floor Plan) (1) $ 710,285 $ 710,285 $ — $ — $ — Long-term debt (2) $ 391,186 33,766 328,957 18,340 10,123 Other liabilities (3) $ 85,847 80,435 3,412 2,000 — Operating leases (4) $ 335,476 16,134 32,460 28,369 258,513 Total $ 1,522,794 $ 840,620 $ 364,829 $ 48,709 $ 268,636 (1) Estimates of future interest payments for short-term borrowings have been excluded in the tabular presentation.
Quarterly Data and Seasonality Our business, as well as the entire recreational boating industry, is highly seasonal, with seasonality varying in different geographic markets. With the exception of Florida, we generally realize significantly lower sales and higher levels of inventories, and related short-term borrowings, in the quarterly periods ending December 31 and March 31.
With the exception of Florida, we generally realize significantly lower sales and higher levels of inventories, and related short-term borrowings, in the quarterly periods ending December 31 and March 31.
Revenue increased $86.6 million, or 3.8%, to approximately $2.395 billion for the fiscal year ended September 30, 2023 from $2.308 billion for the fiscal year ended September 30, 2022.
Revenue increased $36.0 million, or 1.5%, to approximately $2.431 billion for the fiscal year ended September 30, 2024 from $2.395 billion for the fiscal year ended September 30, 2023.
We expect our core strengths and retailing strategies including our digital platform, will position us to capitalize on growth opportunities as they occur and will allow us to emerge with greater earnings potential. Effective May 2, 2021, our reportable segments changed as a result of the Company’s acquisition of Cruisers Yachts, which changed management’s reporting structure and operating activities.
We expect our core strengths and retailing strategies including our digital platform, will position us to capitalize on growth opportunities as they occur and will allow us to emerge with greater earnings potential.
Selling, general and administrative expenses increased $93.9 million, or 17.4%, to $634.5 million for the fiscal year ended September 30, 2023 from $540.6 million for the fiscal year ended September 30, 2022.
Selling, general and administrative expenses increased $38.5 million, or 6.1%, to $673.0 million for the fiscal year ended September 30, 2024 from $634.5 million for the fiscal year ended September 30, 2023. The increase in selling, general, and administrative expenses was primarily the result of inflation and recent acquisitions. Interest Expense .
Interest expense increased $50.1 million to $53.4 million for the fiscal year ended September 30, 2023, from $3.3 million for the fiscal year ended September 30, 2022 as a result of rising interest rates, increased inventory, and increases in long term debt.
Interest expense increased $20.5 million to $73.9 million for the fiscal year ended September 30, 2024, from $53.4 million for the fiscal year ended September 30, 2023 as a result of increased inventory. The increase in interest expense was primarily the result of increased borrowings due primarily to higher inventory levels. Income Taxes .
The comparable-store decrease came primarily from decreases in new boat revenue due to softer demand, more seasonal sales trends, and macroeconomic uncertainty. Gross Profit . Gross profit increased $29.5 million, or 3.7%, to $835.3 million for the fiscal year ended September 30, 2023 from $805.8 million for the fiscal year ended September 30, 2022.
The comparable-store increase came primarily from increases in new and used boat revenue along with contributions from our other higher margin businesses. Gross Profit . Gross profit decreased $34.1 million, or 4.1%, to $801.2 million for the fiscal year ended September 30, 2024 from $835.3 million for the fiscal year ended September 30, 2023.
Gross profit as a percentage of revenue remained flat at 34.9% for the fiscal year ended September 30, 2023 and for the fiscal year ended September 30, 2022, primarily as a result of the acquisition of IGY Marinas, a higher margin business. Selling, General and Administrative Expenses.
Gross profit as a percentage of revenue decreased to 33.0% for the twelve months ended September 30, 2024 from 34.9 % for the twelve months ended September 30, 2023. The decrease in gross profit was primarily the result of lower new and used boat margins, as we aggressively drove sales during a softer retail environment. Selling, General and Administrative Expenses.
Removed
We now report our operations through two new reportable segments: Retail Operations and Product Manufacturing. See Note 21 of the Notes to Consolidated Financial Statements.
Added
In March 2024, we acquired Williams, a premier distributor and retailer for UK-based Williams Jet Tenders Ltd., the world’s leading manufacturer of rigid inflatable jet tenders for the luxury yacht market. In March 2024, we also acquired Native Marine, a boat dealer based in Islamorada, Florida.
Removed
The transaction price is determined with the customer at the time of sale. Customers may trade in a used boat to apply toward the purchase of a new or used boat.
Added
Revenue Recognition We recognize revenue from boat, motor, and trailer sales upon transfer of control of the boat, motor, or trailer to the customer, which is generally upon acceptance of the boat, motor, and trailer by the customer and the satisfaction of our performance obligations. The transaction price is determined with the customer at the time of sale.
Removed
We primarily estimate the fair value of property and equipment, the majority of which is marina property, using the replacement cost method based on assumptions of replacement cost for new and similar assets.
Added
In accordance with ASC 350, we test goodwill for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Our annual impairment test is performed during the third fiscal quarter.
Removed
For acquisitions with contingent consideration, the fair value of the Company's contingent consideration liabilities is based on the present value of the expected future 43 payments to be made to the sellers of the acquired entities in accordance with the provisions outlined in the respective purchase agreements.
Added
If the carrying amount of a reporting unit’s goodwill exceeds its fair value we recognize an impairment loss in accordance with ASC 350. Based upon our most recent analysis, we determined through our qualitative assessment that it is not “more likely than not” that the fair values of our reporting units are less than their carrying values.
Removed
Growth rate assumptions were developed using data on recent historical net operating income growth and projections made during due diligence with assistance from a third-party specialist.
Added
As a result, we did not perform a quantitative goodwill impairment test. The qualitative assessment requires us to make judgments and assumptions regarding macroeconomic and industry conditions, our financial performance, and other factors.
Removed
The risk associated with the financial projections was evaluated using a Monte Carlo simulation analysis, pursuant to which the projections were discounted to present value using a discount rate that takes into consideration market-based rates of return, and then simulated to reflect the ability of the acquired entity to achieve the earnout targets.
Added
We do not believe there is a reasonable likelihood that there will be a change in the judgments and assumptions used in our qualitative assessment which would result in a material effect on our operating results. 44 Recent Accounting Pronouncements See Note 3 of the Notes to Consolidated Financial Statements.
Removed
Such calculated earnout payments were further discounted at our estimated cost of debt, to account for counterparty risk. We note that changes in financial projections, market participant assumptions for revenue growth and/or profitability, or market risk factors, would result in a change in the fair value of recorded earnout obligations.
Added
The increase in the effective income tax rate was primarily a result of increased expenses from equity compensation from vested awards. Quarterly Data and Seasonality Our business, as well as the entire recreational boating industry, is highly seasonal, with seasonality varying in different geographic markets.
Removed
Recent Accounting Pronouncements See Note 3 of the Notes to Consolidated Financial Statements.
Added
For the fiscal years ended September 30, 2024, 2023, and 2022, cash used in investing activities was approximately $81.3, $576.4 million and $140.5 million, respectively.
Removed
The increase in selling, general, and administrative expenses was driven by an increase in mix to our higher margin businesses, which typically carry a higher expense structure, and acquisitions. Interest Expense .
Removed
Interest expense as a percentage of revenue increased to 2.2% for the twelve months ended September 30, 2023 from 0.2% from the twelve months ended September 30, 2022. Income Taxes .
Removed
The increase in the effective income tax rate 44 was primarily a result of reduced taxable income, which increases the impact of permanent tax differences, as well as the acquisition of IGY Marinas’ foreign operations and increases in state tax rates.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 edited+0 added−0 removed6 unchanged
Biggest changeFor example, a hypothetical 100 basis point, 200 basis point, or 300 basis point increase in the interest rate would result in an increase of approximately $9.2 million, $18.3 million, or $27.5 million, respectively, in annual pre-tax interest expense.
Biggest changeFor example, a hypothetical 100 basis point, 200 basis point, or 300 basis point increase in the interest rate would result in an increase of approximately $10.6 million, $21.1 million, or $31.7 million, respectively, in annual pre-tax interest expense.
These estimated increases are based upon the outstanding balance of our short-term borrowings and long-term debt as of September 30, 2023 and assume no mitigating changes by us to reduce the outstanding balances and no additional interest assistance that could be received from vendors due to the interest rate increase.
These estimated increases are based upon the outstanding balance of our short-term borrowings and long-term debt as of September 30, 2024 and assume no mitigating changes by us to reduce the outstanding balances and no additional interest assistance that could be received from vendors due to the interest rate increase.
Most of the transactions not denominated in U.S. dollars are denominated in euros. Net revenues recognized whose functional currency was not the U.S. dollar were approximately 3% of our total revenues in fiscal 2023.
Most of the transactions not denominated in U.S. dollars are denominated in euros. Net revenues recognized whose functional currency was not the U.S. dollar were approximately 4% of our total revenues in fiscal 2024.

Other HZO 10-K year-over-year comparisons