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What changed in MARINEMAX INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of MARINEMAX INC's 2022 and 2023 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 2023 report.

+305 added−268 removedSource: 10-K (2023-11-17) vs 10-K (2022-11-18)

Top changes in MARINEMAX INC's 2023 10-K

305 paragraphs added · 268 removed · 244 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

108 edited+16 added−7 removed137 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) NauticStar 2018 Panama City, Florida, Oklahoma, Missouri, Minnesota, North Carolina and South Carolina Tigé 2018-2019 Orlando, Florida, Oklahoma, Georgia, and North Carolina Benetti 2019 United States and Canada Aviara 2019 United States MJM Yachts 2019 Florida ATX Surf Boats 2020 Orlando, Florida, Oklahoma, Georgia, and North Carolina 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 Cruisers Yachts (1) 2021 Worldwide Chapparral, Chris-Craft, Moomba 2021 Minnesota Premier, Robalo, Supra 2021 Minnesota Boston Whaler 2022 Minnesota Intrepid Powerboats (1) 2022 Worldwide Mastercraft 2022 North Texas Wider Yachts 2022 North America 4 (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 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.
Cashman served as Regional President of East Florida from October 2008 to May 2012, and as District Manager of the East Coast of Florida from March 2007 to October 2008. Mr. Cashman served several other positions of increasing responsibility, including Sales Consultant, Sales Manager, and General Manager, since joining MarineMax in 1992. Anthony E.
Cashman served as Regional President of East Florida from October 2008 to May 2012, and as District Manager of the East Coast of Florida from March 2007 to October 2008. Mr. Cashman served in several other positions of increasing responsibility, including Sales Consultant, Sales Manager, and General Manager, since joining MarineMax in 1992. Anthony E.
Croix River 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.
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.
The fishing boats we offer, such as Boston Whaler, Grady-White, Scout, and Sailfish, range from entry level models to advanced models designed for fishing and water sports in lakes, bays, and off-shore waters, with cabins with limited live-aboard capability. The fishing boats typically feature livewells, in-deck fishboxes, rodholders, rigging stations, cockpit coaming pads, and fresh and saltwater washdowns.
The fishing boats we offer, such as Boston Whaler, Bertram, Grady-White, Scout, and Sailfish, range from entry level models to advanced models designed for fishing and water sports in lakes, bays, and off-shore waters, with cabins with limited live-aboard capability. The fishing boats typically feature livewells, in-deck fishboxes, rodholders, rigging stations, cockpit coaming pads, and fresh and saltwater washdowns.
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 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.
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.
We believe that the product lines we offer are among the highest quality within their respective market segments, with well-established trade-name recognition and reputations for quality, performance, and style. The following table is illustrative of the range and approximate manufacturer suggested retail price range of new boats that we currently offer, but is not all inclusive.
We believe that the product lines we offer are among the highest quality within their respective market segments, with well-established trade-name recognition and reputations for quality, performance, and style. 5 The following table is illustrative of the range and approximate manufacturer suggested retail price range of new boats that we currently offer, but is not all inclusive.
Our acquisition of IGY Marinas offers a global network of marinas in the Americas, the Caribbean, and Europe, 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.
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.
We also sell related marine products, including engines, trailers, parts, and accessories. In addition, we provide repair, maintenance, and slip and storage services; we arrange related boat financing, insurance, and extended service contracts; we offer boat and yacht brokerage sales and yacht charter services. In the British Virgin Islands we offer the charter of power catamarans, through MarineMax Vacations.
We also sell related marine products, including engines, trailers, parts, and accessories. In addition, we provide repair, maintenance, and slip and storage rentals; we arrange related boat financing, insurance, and extended service contracts; we offer boat and yacht brokerage sales and yacht charter services. In the British Virgin Islands, we offer the charter of power catamarans, through MarineMax Vacations.
The motor yacht product lines typically include state-of-the-art designs with live-aboard luxuries. Azimut yachts are known for their Americanized 6 open layout with Italian design and powerful performance. The luxurious interiors of Azimut yachts are accented by windows and multiple accommodations that have been designed for comfort.
The motor yacht product lines typically include state-of-the-art designs with live-aboard luxuries. Azimut yachts are known for their Americanized open layout with Italian design and powerful performance. The luxurious interiors of Azimut yachts are accented by windows and multiple accommodations that have been designed for comfort.
Typically, each retail location also has a staff consisting of an F&I manager, a parts manager, a service manager, sales representatives, maintenance and repair technicians, and various support personnel. Sales and Marketing Our sales philosophy focuses on selling the pleasures of the boating lifestyle and creating memories of a lifetime with family and friends.
Typically, each retail location also has a staff consisting of an F&I manager, a parts manager, a service manager, sales representatives, maintenance and repair technicians, and various support personnel. Sales and Marketing Our sales philosophy focuses on selling the pleasures of the boating and yachting lifestyle and creating memories of a lifetime with family and friends.
Sales representatives use the platform to gain strategic competitive 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 financing and insurance products, proactively schedule services and continually communicate with customers.
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.
The platform integrates each level of operations on a Company-wide basis, including but not limited to inventory, financial reporting, budgeting, and sales management. We manage each company’s operations with the platform to execute at the highest level, continually grow, and deliver exceptional customers experiences.
The platform integrates each level of operations on a Company-wide basis, including but not limited to inventory, financial reporting, budgeting, marketing and sales management. We manage each company’s operations with the platform to execute at the highest level, continually grow, and deliver exceptional customers experiences.
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 16 believe to be adequate. We may experience claims that are not covered by, or that are in excess of, our insurance coverage.
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 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.
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.
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 around the world. It offers a global network of marinas in the Americas, the Caribbean, and Europe, 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 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.
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.
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.
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.
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.
Our commitment to environmental responsibility and initiatives to reduce our environmental footprint are outlined in our “Environmental Policy.” Our Environmental 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 Environmental 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 15 any other report or document we file with the Securities and Exchange Commission).
Our commitment to environmental responsibility and initiatives to reduce our environmental footprint are outlined in our “Environmental Policy.” Our Environmental 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 Environmental 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 Securities and Exchange Commission (the "SEC")).
The energy transition pact was created by the Monaco government to improve energy efficiency and promote renewable energy sources, with the target to reducing greenhouse gas emissions, by allowing residents, workers, businesses, institutions and associations to contribute to the energy transition effort.
The energy transition pact was created by the Monaco government to improve energy efficiency and promote renewable energy sources, with the target of reducing greenhouse gas emissions by allowing residents, workers, businesses, institutions and associations to contribute to the energy transition effort.
Our culture, values, and mission are shared and reinforced with our team members through daily stand up meetings, team events, and online communications. We pride ourselves in supporting our local communities both on and off the water.
Our culture, values, and mission are shared and reinforced with our team members through daily stand up meetings, team events, and online communications. We pride ourselves on supporting our local communities both on and off the water.
While we believe that we maintain all requisite licenses and permits and are in compliance with 14 all applicable federal, state, and local regulations, there can be no assurance that we will be able to maintain all requisite licenses and permits.
While we believe that we maintain all requisite licenses and permits and are in compliance with all applicable federal, state, and local regulations, there can be no assurance that we will be able to maintain all requisite licenses and permits.
Cash incentive bonuses are designed to reward individuals based on our Company’s financial results as well as the achievement of personal and corporate objectives designed to contribute to our long-term success in building shareholder value. Grants of stock-based awards under our 2011 Stock-Based Compensation Plan are intended to align compensation with the price performance of our common stock.
Cash incentive bonuses are designed to reward individuals based on our Company’s financial results as well as the achievement of personal and corporate objectives designed to contribute to our long-term success in building shareholder value. Grants of stock-based awards under our 2021 Stock-Based Compensation Plan are intended to align compensation with the price performance of our common stock.
Retail Locations We sell our recreational boats and other marine products and offer our related boat services through 78 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 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.
Development of the Company; Expansion of Business Since our initial acquisitions in March 1998, we have acquired 32 additional previously independent recreational boat dealers, multiple marinas, five boat brokerage operations, two superyacht service companies, two full-service yacht repair operations, and two boat and yacht manufacturers. Acquired dealers operate under the MarineMax name.
Development of the Company; Expansion of Business Since our initial acquisitions in March 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. Acquired dealers operate under the MarineMax name.
We believe that the critical elements of our sales philosophy include our appealing retail locations, no-hassle sales approach, highly trained sales representatives, high level of customer service, emphasis on educating the customer and the customer’s family on boating, and providing our customers with opportunities for boating through our MarineMax Getaways!®.
We believe that the critical elements of our sales philosophy include our appealing retail and marina locations, no-hassle sales approach, highly trained sales representatives, high level of customer service, emphasis on educating the customer and the customer’s family on boating, and providing our customers with opportunities for experiences through our MarineMax Getaways!®.
As a part of our sales and marketing efforts, our digital marketing capabilities are a competitive advantage, with the majority of leads originating through our digital properties, including MarineMax.com. Social media is a growing venue for customer engagement and communication and has become a strong medium for connecting with new customers.
As a part of our sales and marketing efforts, our digital marketing capabilities are a competitive advantage, with the majority of leads originating through our digital properties, including MarineMax.com. Social media is a leading venue for customer engagement and communication and has become a strong medium for connecting with new customers.
Each retail location is managed by a general manager, who oversees the day-to-day operations, personnel, and 11 financial performance of the individual store, subject to the direction of a regional president or district president, who generally has responsibility for the retail locations within a specified geographic region.
Each retail location is managed by a general manager, who oversees the day-to-day operations, personnel, and financial performance of the individual store, subject to the direction of a regional president, district president or area manager, who generally has responsibility for the retail locations within a specified geographic region.
Material Updates to Our Strategy Since the last discussion of our strategy in our Form 10-K for our fiscal year ended September 30, 2021, our primary goal remains to enhance our position as the leading recreational boat and yacht retailer and preeminent superyacht services company.
Material Updates to Our Strategy Since the last discussion of our strategy in our Form 10-K for our fiscal year ended September 30, 2022, our primary goal remains to enhance our position as the leading recreational boat and yacht retailer and preeminent superyacht services company.
As of September 30, 2022, 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, 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.
Generally, we receive a fee for arranging an extended service contract. Most required services under the contracts are provided by us and paid for by the third-party contract holder. Beginning in fiscal 2021, we have partnered with a third-party F&I product provider to offer prepaid maintenance plans for select, new models.
Generally, we receive a fee for arranging an extended service contract. Most required services under the contracts are provided by us and paid for by the third-party contract holder. Since fiscal 2021, we have partnered with a third-party F&I product provider to offer prepaid maintenance plans for select, new models.
The coverage pays for the expenses to extract pollutants from land or water at the insured property, if the discharge, dispersal, seepage, migration, release, or escape of the pollutants is caused by or results from a covered cause of loss. We also have additional storage tank liability insurance and Superfund coverage where applicable.
The coverage pays for the expenses to extract pollutants from land or water at the insured property, if the discharge, dispersal, seepage, migration, release, or escape of the pollutants is caused by or results from a covered cause of loss. We also have additional storage tank liability insurance and Superfund (as defined below) coverage where applicable.
IGY Marinas has created standards for service and quality in nautical tourism around the world. It offers a global network of marinas in the Americas, the Caribbean, and Europe, 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.
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 caters to a wide variety of luxury yachts, while also being exclusive home ports for some of the world’s largest megayachts.
Cruisers Yachts is owned by MarineMax and is continuously building innovative, quality, hand-crafted, American made sport yacht and yachts with the stylish and luxurious Cantius series of boats as well as sleek and powerful outboard models. Tiara Yachts manufactures handcrafted, American-made luxury yachts designed for performance and comfort. Four Winns manufactures quality runabouts, bowriders, yachts and tow sport boats.
Cruisers Yachts is continuously building innovative, quality, hand-crafted, American made sport yacht and yachts with the stylish and luxurious Cantius series of boats as well as sleek and powerful outboard models. Tiara Yachts manufactures handcrafted, American-made luxury yachts designed for performance and comfort. Four Winns manufactures quality runabouts, bowriders, yachts and tow sport boats.
As of September 30, 2022, the Retail Operations segment included the activity of 78 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, 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.
Italian-made Wider Yachts manufactures electric yachts with performance and exceptional quality in mind. From its line of superyachts to express cruisers, electric catamarans, and new builds, Wider Yachts offers a number of features. Motor Yachts . Ocean Alexander Yachts, Azimut, Benetti, and Princess are four of the world’s premier yacht builders.
Italian-made Wider Yachts manufactures electric yachts with performance and exceptional quality in mind. From its line of superyachts to express cruisers, electric catamarans, and new builds, Wider Yachts offers a number of features. Motor Yachts . Ocean Alexander Yachts, Azimut and Princess are three of the world’s premier yacht builders.
The yacht owners will be able to utilize the yachts for personal use for a designated number of weeks during the terms of the management agreement and take possession of their yachts following the expiration of the yacht management agreements. In addition to the specific business we launched in the British Virgin Islands, we also offer yacht charter services.
The yacht owners are able to utilize the yachts for personal use for a designated number of weeks during the terms of the management agreement and take possession of their yachts following the expiration of the yacht management agreements. In addition to the specific business we launched in the British Virgin Islands, we also offer yacht charter services.
The retail sales include sales of new and used boats; marine products, such as engines, trailers, equipment, and accessories; and related expenditures, such as fuel, insurance, docking, storage, and repairs.
These retail sales include sales of new and used boats; marine products, such as engines, trailers, equipment, and accessories; and related expenditures, such as fuel, insurance, docking, storage, and repairs.
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 Environmental 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 Securities and Exchange Commission).
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).
Each Company-sponsored event, planned and led by a Company employee, also provides a favorable medium for acclimating new customers to boating, sharing exciting boating destinations, creating friendships with other boaters, and enabling us to promote new product offerings to boating enthusiasts.
Each Company-sponsored event, planned and led by a Company team member, also provides a favorable medium for acclimating new customers to boating, sharing exciting boating destinations, creating friendships with other boaters, and enabling us to promote new product offerings to boating enthusiasts.
We believe recreational boating has a natural appeal to consumers, along with other outdoor activities, and will continue to grow in favorable economic conditions absent any unusual industry headwinds (see Risk Factors).
We believe recreational boating has a natural appeal to consumers, along with other outdoor activities, and that the recreational boating market will continue to grow in favorable economic conditions absent any unusual industry headwinds (see Risk Factors).
Sales of new Azimut boats and yachts accounted for approximately 8% of our revenue in fiscal 2022. 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 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.
McGill served as Chief Executive Officer of MarineMax from January 23, 1998 to September 30, 2018 and as the Chairman of the Board and as a Director of the Company since March 6, 1998. Mr.
McGill Jr . has served as the Executive Chairman of the Board since October 2018. Mr. McGill served as Chief Executive Officer of MarineMax from January 23, 1998 to September 30, 2018 and as the Chairman of the Board and as a Director of the Company since March 6, 1998. Mr.
We are party to a Credit Agreement with Manufacturers and Traders Trust Company as Administrative Agent, Swingline Lender, and Issuing Bank, Wells Fargo Commercial Distribution Finance, LLC, as Floor Plan Agent, and the lenders party thereto (the “New Credit Agreement”).
We are party to a Credit Agreement with Manufacturers and Traders Trust Company as Administrative Agent, Swingline Lender, and Issuing Bank, Wells Fargo Commercial Distribution Finance, LLC, as Floor Plan Agent, and the lenders party thereto (the “Amended Credit Facility”).
Retail sales of new and used boats, engines, trailers, and accessories accounted for approximately $45.7 billion of these sales in 2021 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 $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.
The New Credit Agreement provides the Company a line of credit with asset based borrowing availability of up to $750 million and establishes a revolving credit facility in the maximum amount of $100 million (including a $20 million swingline facility and a $20 million letter of credit sublimit), a delayed draw term loan facility to finance the acquisition of IGY Marinas in the maximum amount of $400 million, and a $100 million delayed draw mortgage loan facility.
The Amended Credit Facility provides the Company a line of credit with asset based borrowing availability of up to $950 million and establishes a revolving credit facility in the maximum amount of $100 million (including a $20 million swingline facility and a $20 million letter of credit sublimit), a delayed draw term loan facility to finance the acquisition of IGY Marinas in the maximum amount of $400 million, and a $100 million delayed draw mortgage loan facility.
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 8% of our revenue in fiscal 2022.
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.
Sales of new Sea Ray and Boston Whaler boats accounted for approximately 11% and 9%, respectively, of our revenue in 12 fiscal 2022. No purchases of new boats and other marine related products from any other manufacturer accounted for more than 10% of our revenue in fiscal 2022.
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, both divisions of Brunswick, accounted for approximately 11% and 9%, respectively, of our revenue in fiscal 2022. Brunswick is a world leading manufacturer of marine products and marine engines.
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 Brunswick boats accounted for approximately 23% of our revenue in fiscal 2022. Sales of new Sea Ray and Boston Whaler boats accounted for approximately 11% and 9%, respectively, of our revenue in fiscal 2022. 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 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.
The maturity of each of the facilities is August 2027. The New Credit Agreement is further discussed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of this Annual Report on Form 10-K.
The maturity of each of the facilities is August 2027. The Amended Credit Facility is further discussed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of this Annual Report on Form 10-K.
Pursuant to this strategy, we have completed recent acquisitions including Fraser Yachts Group, Northrop & Johnson, Skipper Marine Holdings, Inc. and certain affiliates (collectively, "SkipperBud’s"), KCS International Holdings, Inc. and certain affiliates ("Cruisers Yachts"), Intrepid Powerboats, Texas MasterCraft, and IGY Marinas.
Pursuant to this strategy, we have completed recent acquisitions including Fraser Yachts Group, Northrop & Johnson, Skipper Marine Holdings, Inc. and certain affiliates (collectively, "SkipperBud’s"), KCS International Holdings, Inc. and certain affiliates ("Cruisers Yachts"), Intrepid Powerboats, Texas MasterCraft, IGY Marinas, Midcoast Marine Group, C&C Boat Works and AGY.
As a result of our emphasis on premium brand boats, our average selling price for a new boat in fiscal 2022 was approximately $256,000, an increase from approximately $227,000 in fiscal 2021, compared with the industry average selling price for calendar 2021 of approximately $71,000 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 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.
Over the three-year period ended September 30, 2022, the average revenue for the quarters ended December 31, March 31, June 30 and September 30 represented approximately 20%, 24%, 32%, and 24%, respectively, of our average annual revenues.
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.
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 2022, fee income generated from F&I products accounted for approximately 3.0% or $69.0 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 2023, fee income generated from F&I products accounted for approximately 2.8% or $66.8 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 3.3% or $76.7 million of our fiscal 2022 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 4.7% 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.
Typically, one of our delivery captains or the sales representative delivers the customer’s boat to an area boating location and thoroughly instructs the customer about the operation of the boat, including hands-on instructions for docking and trailering the boat.
Typically, one of our delivery captains or other team members delivers the customer’s boat to an area boating location and thoroughly instructs the customer about the operation of the boat, including hands-on instructions for docking and trailering the boat.
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 services 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. 1 MarineMax commenced operations as a result of the March 1, 1998 acquisition of five previously independent recreational boat dealers.
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 participate in boat shows and in-the-water sales events at area boating locations, typically held in January, February, March, and toward the end of the boating season, in each of our markets. Boat shows and other offsite promotions are an important venue for generating customer engagement.
We participate in boat shows and in-the-water sales events at area boating locations, typically held in January, February, March, and toward the end of the boating season, in each of our markets. Boat shows and other offsite promotions are an important venue for engaging new customers.
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 $56.7 billion in retail sales in calendar 2021, which is above the former peak of $49.4 billion in calendar 2020.
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.
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 $45.7 billion of such sales in calendar 2021.
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.
Item 1. B usiness Introduction Our Company MarineMax is the world’s largest recreational boat and yacht retailer, selling new and used recreational boats, yachts, and related marine products and services. MarineMax has over 120 locations worldwide, including 78 retail dealership locations, some of which include marinas. Collectively, with the IGY acquisition, MarineMax owns or operates 57 marinas worldwide.
Item 1. B usiness Introduction Our Company MarineMax is the world’s largest recreational boat and yacht retailer, selling new and used recreational boats, yachts, and related marine products and services. MarineMax has 130 locations worldwide, including 81 retail dealership locations, some of which include marinas. Collectively, with the IGY acquisition, MarineMax owns or operates 66 marina and storage locations worldwide.
Also, through Fraser Yachts Group and Northrop & Johnson, we offer yacht and superyacht brokerage. During fiscal 2022, brokerage sales commissions accounted for approximately 5.8% or $133.1 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 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.
The following table sets forth certain of our waterfront properties. 10 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 Georgia Lake Lanier Wilmington River Illinois Lake Michigan Lake Marie Maryland Chesapeake Bay Massachusetts Town River Michigan Saginaw River Lake St.
Used Boat Sales We sell used versions of the new makes and models we offer and, to a lesser extent, used boats of other makes and models generally taken as trade-ins. During fiscal 2022, used boat sales accounted for 7.3% or approximately $169.0 million of our revenue.
Used Boat Sales We sell used versions of the new makes and models we offer and, to a lesser extent, used boats of other makes and models generally taken as trade-ins. During fiscal 2023, used boat sales accounted for 7.9% or approximately $189.5 million of our revenue.
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.
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.
IGY Marinas caters to a wide variety of luxury yachts, while also being exclusive home ports for some of the world’s largest megayachts. 8 Maintenance, repair, rent, and storage services accounted for approximately 5.7% or $130.5 million of our revenue during fiscal 2022 of which, approximately 3.3% or $77.1 million related to repair services, approximately 0.8% or $17.6 million related to parts and accessories for repairs, and approximately 1.6% or $35.8 million related to income from rent and storage service rentals.
IGY Marinas caters to a wide variety of luxury yachts, while also being exclusive home ports for some of the world’s largest megayachts. 8 Maintenance, repair, rent, and storage services accounted for approximately 9.5% or $228.6 million of our revenue during fiscal 2023 of which, approximately 3.1% or $73.6 million related to repair services, approximately 1.3% or $30.9 million related to parts and accessories for repairs, and approximately 5.1% or $124.1 million related to income from rent and storage service rentals.
Barletta offers quality construction, simple yet refined models, and customer focused amenities. Starcraft is a leading boat manufacturer with a long history of continuous improvements to fiberglass hull design and a dedication to providing pontoon, runabouts, and deck boat models for families and watersport enthusiasts. Sylvan builds quality, innovative, high performance pontoon boats.
Starcraft is a leading boat manufacturer with a long history of continuous improvements to fiberglass hull design and a dedication to providing pontoon, runabouts, and deck boat models for families and watersport enthusiasts. Sylvan builds quality, innovative, high performance pontoon boats.
Petersburg One Island Park Miami Beach United States, New York & Maine North Cove Marina at Brookfield Place, New York Fore Points Marina, Maine United States Virgin Islands, Saint Thomas Yacht Haven Grande USVI American Yacht Harbor Operations Dealership Operations and Management We have adopted a generally decentralized approach to the operational management of our dealerships.
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.
Our same-store sales increased 25% in fiscal 2020, increased 13% in fiscal 2021, and increased 5% in fiscal 2022. The U.S. recreational boating industry generated approximately $56.7 billion in retail sales in calendar 2021, which is above the former peak of $49.4 billion in calendar 2020.
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.
Additionally, we hold online experience events including immersive boat tours that allow participants to explore boats and yachts from multiple manufactures, segments, and models from nearly any electronic device including their phone, tablet, or computer.
Additionally, we hold online experience events, including immersive boat tours, that allow participants to explore boats and yachts from multiple manufacturers, segments, and models from anywhere using their phone, tablet, or computer.
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. In October 2022, we completed the acquisition of IGY Marinas. IGY Marinas maintains a network of strategically positioned luxury marinas situated in yachting and sport fishing destinations around the world.
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. In October 2022, we completed the acquisition of IGY Marinas.
April 2022 France Endeavour Marina August 2022 Texas IGY Marinas October 2022 Worldwide 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 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.
MarineMax provides finance and insurance services through wholly owned subsidiaries and operates MarineMax Vacations in Tortola, British Virgin Islands. The Company also owns Boatyard, an industry-leading customer experience digital product company.
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.
During fiscal 2022, new boat sales, including sales of Cruisers Yachts and Intrepid Powerboats, accounted for approximately 73.2% or $1.689 billion of our revenue. 5 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 2022 average new boat sales price of approximately $256,000 an increase from approximately $227,000 in fiscal 2021, compared with an estimated industry average selling price for calendar 2021 of approximately $71,000 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 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.
Previously he served as 17 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.
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
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 Spain IGY Málaga Marina Málaga Marina San Andres St. Maarten Simpson Bay Marina Yacht Club Isle de Sol 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 NEOM Sindalah Island Spain IGY Málaga Marina Málaga Marina San Andres IGY Ibiza Marina St.
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.
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.
Product Line and Trade Name Overall Length Manufacturer Suggested Retail Price Range E-Power Yachts Wider Yachts 40’ to 120’+ 12,000,000 to 35,000,000+ Motor Yachts Azimut 40’ to 120’+ $800,000 to $16,000,000+ Ocean Alexander Yachts 45’ to 155’+ 1,500,000 to 35,000,000+ Benetti 30M to 145M 12,000,000 to 24,000,000+ Princess 35' to 95' 700,000 to 10,000,000 Pleasure Boats Sea Ray 19’ to 40’ 50,000 to 1,100,000 Aquila 28’ to 72’ 290,000 to 6,500,000+ Galeon 32’ to 80’ 750,000 to 6,000,000+ NauticStar 19’ to 28’ 30,000 to 300,000 MJM Yachts 35’ to 50’+ 800,000 to 2,000,000+ Aviara 32’ to 40’ 400,000 to 800,000+ Cruisers Yachts (1) 33’ to 60’ 300,000 to 2,500,000+ Tiara 34' to 53' 400,000 to 2,500,000 Four Winns 19' to 35' 45,000 to 550,000 Intrepid Powerboats (1) 25' to 48' 200,000 to 1,500,000 Pontoon Boats Harris 19’ to 27’ 30,000 to 250,000 Crest 20’ to 27’ 40,000 to 175,000 Bennington 17’ to 30’ 30,000 to 300,000 Barletta 20' to 28' 60,000 to 250,000 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 Grady White 18’ to 45’ 70,000 to 1,800,000 Scout 17’ to 53’ 20,000 to 2,700,000 Sailfish 19’ to 36’ 100,000 to 500,000 Ski Boats Nautique by Correct Craft 20’ to 25’ 100,000 to 400,000 Tigé 20’ to 25’ 150,000 to 220,000 ATX Surf Boats 20’ to 24’ 120,000 to 140,000 Mastercraft 20’ to 26’ 110,000 to 260,000 Jet Boats Yamaha Jet Boats 19’ to 24’ 40,000 to 100,000 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+ 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 .
Princess yachts are a leading British luxury yacht manufacturer with attention to detail, design, and performance. Pleasure Boats . Sea Ray pleasure boats target both the luxury and the family recreational boating markets and come in a variety of configurations designed to suit each customer’s particular recreational boating style.
Sea Ray pleasure boats target both the luxury and the family recreational boating markets and come in a variety of configurations designed to suit each customer’s particular recreational boating style.
Additionally, our Boatyard digital platform allows marine businesses effective and customized digital solutions delivering great customer experiences by enabling customers to interact through a personalized experience tailored to their needs.
Our Boatyard digital platform provides marine businesses effective and customized digital solutions, delivering great customer experiences by enabling customers to interact through a personalized experience tailored to their needs. Additionally, Boatzon offers a boat and marine digital retail platform, through our recently formed technology entity, New Wave Innovations.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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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.
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.
As is typical in the industry, we generally deal with manufacturers, other than Sea Ray, Boston Whaler, and Azimut, under renewable annual dealer agreements. These agreements do not contain any contractual provisions concerning product pricing or required 18 purchasing levels. Pricing is generally established on a model year basis, but is subject to change in the manufacturer’s sole discretion.
As is typical in the industry, we generally deal with manufacturers, other than Sea Ray, Boston Whaler, and Azimut, under renewable annual dealer agreements. These agreements do not contain any contractual provisions concerning product pricing or required purchasing levels. Pricing is generally established on a model year basis, but is subject to change in the manufacturer’s sole discretion.
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 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.
While we attempt to mitigate these risks by employing extensive measures, including employee training, 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, 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.
Environmental and other regulatory issues may impact our operations. Our operations are subject to extensive regulation, supervision, and licensing under various federal, state and local statutes, ordinances and regulations, such as those relating to finance and insurance, consumer protection, consumer privacy, escheatment, anti-money laundering, environmental, emissions, health or safety, U.S. trade sanctions, the U.S.
Environmental and other regulatory issues may impact our operations. Our operations are subject to extensive regulation, supervision, and licensing under various federal, state and local statutes, ordinances and regulations, such as those relating to finance and insurance, consumer protection, consumer privacy, escheatment, anti-money laundering, the environment, emissions, health or safety, U.S. trade sanctions, the U.S.
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.
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.
While such tariffs may be delayed or cancelled before coming into effect and we believe we have taken steps to mitigate their potential effects, such tariffs would likely increase our costs for our Chinese suppliers. 23 Our international operations create a number of logistical and communications challenges.
While such tariffs may be delayed or cancelled before coming into effect and we believe we have taken steps to mitigate their potential effects, such tariffs would likely increase our costs for our Chinese suppliers. Our international operations create a number of logistical and communications challenges.
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.
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.
Laws or regulations may be enacted 26 nationally or locally which could result in fees from lenders being eliminated or reduced, materially impacting our operating results. If customer financing becomes more difficult to secure, it may adversely impact our business.
Laws or regulations may be enacted nationally or locally which could result in fees from lenders being eliminated or reduced, materially impacting our operating results. If customer financing becomes more difficult to secure, it may adversely impact our business.
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. 27 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 or state tax policies can have a negative effect on us.
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.
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.
A portion of our income results from referral fees derived from the placement or marketing of various finance and insurance products, consisting of customer financing, insurance products, and extended service contracts, the most significant component of which is the participation and other fees resulting from our sale of customer financing contracts.
A portion of our income results from referral fees derived from the placement or marketing of various finance and insurance products, consisting of customer financing, insurance coverage, and extended service contracts, the most significant component of which is the participation and other fees resulting from our sale of customer financing contracts.
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 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, 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.
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.
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.
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.
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.
Any inability to utilize the New Credit Agreement or the acceleration of amounts owed, resulting from a covenant violation, insufficient collateral, or lender difficulties, could require us to seek other sources of funding to repay amounts outstanding under the New Credit Agreement or replace or supplement the New Credit Agreement, which may not be possible at all or under commercially reasonable terms.
Any inability to utilize the Amended Credit Agreement or the acceleration of amounts owed, resulting from a covenant violation, insufficient collateral, or lender difficulties, could require us to seek other sources of funding to repay amounts outstanding under the Amended Credit Agreement or replace or supplement the Amended Credit Agreement, which may not be possible at all or under commercially reasonable terms.
Since March 1, 1998, we have acquired 32 additional previously independent recreational boat dealers, multiple marinas, five boat brokerage operations, two 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 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.
The availability and costs of borrowed funds can adversely affect our ability to obtain and maintain adequate boat inventory and the holding costs of that inventory as well as the ability and willingness of our customers to finance boat purchases. We rely on the New Credit Agreement to purchase and maintain our inventory of boats.
The availability and costs of borrowed funds can adversely affect our ability to obtain and maintain adequate boat inventory and the holding costs of that inventory as well as the ability and willingness of our customers to finance boat purchases. We rely on the Amended Credit Agreement to purchase and maintain our inventory of boats.
The variable interest rate under our New 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. A significant increase in interest rates could have a material adverse effect on our operating results.
Depressed economic conditions, weak consumer spending, turmoil in the credit markets, and lender difficulties, among other potential reasons, could interfere with our ability to maintain compliance with our debt covenants and to utilize the New Credit Agreement to fund our operations.
Depressed economic conditions, weak consumer spending, turmoil in the credit markets, and lender difficulties, among other potential reasons, could interfere with our ability to maintain compliance with our debt covenants and to utilize the Amended Credit Agreement to fund our operations.
Item 1A. Ri sk Factors Risks Related to Competition, Economic, and Industry Conditions Our success depends to a significant extent on the well-being, as well as the continued popularity and reputation for quality of the boating products, of our manufacturers, particularly Brunswick’s Sea Ray and Boston Whaler boat lines and Azimut-Benetti Group’s Azimut products.
Item 1A. Ri sk Factors Risks Related to Competition, Economic, and Industry Conditions Our success depends to a significant extent on the well-being, as well as the continued popularity and reputation for quality of the boating products, of our manufacturers, particularly Brunswick’s Sea Ray and Boston Whaler boat lines, Azimut-Benetti Group’s Azimut products and Mercury Marine engines.
Additionally, to the extent unfavorable weather conditions are exacerbated by global climate change, regardless of the cause, resulting in environmental changes including, but not limited to, severe weather, changing sea levels, poor water conditions, or reduced access to water, which could disrupt or negatively affect our business. 28 Environmental and climate changes could affect our business.
Additionally, to the extent unfavorable weather conditions are exacerbated by global climate change, regardless of the cause, resulting in environmental changes including, but not limited to, severe weather, changing sea levels, poor water conditions, or reduced access to water, such conditions could disrupt or negatively affect our business. Environmental and climate changes could affect our business.
The remainder of our fiscal 2022 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 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.
Some additional supply risks that could disrupt our operations, impair our ability to deliver products to customers, and negatively affect our financial results include: 25 • an outbreak of disease or facility closures due to the COVID-19 pandemic, or similar public health threat; • a deterioration of our relationships with suppliers; • events such as natural disasters, power outages, or labor strikes; • financial pressures on our suppliers due to a weakening economy or unfavorable conditions in other end markets; • supplier manufacturing constraints and investment requirements; or • disruption at major global ports and shipping hubs.
Some additional supply risks that could disrupt our operations, impair our ability to deliver products to customers, and negatively affect our financial results include: • an outbreak of disease or facility closures due to a public health threat; • a deterioration of our relationships with suppliers; • events such as natural disasters, power outages, or labor strikes; • financial pressures on our suppliers due to a weakening economy or unfavorable conditions in other end markets; • supplier manufacturing constraints and investment requirements; or • disruption at major global ports and shipping hubs.
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 54%, 50% and 51% of our dealership revenue during fiscal 2020, 2021, and 2022, 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 50%, 51% and 53% of our dealership revenue during fiscal 2021, 2022, and 2023, respectively, could have a major impact on our operations.
Our ability to borrow under the New Credit Agreement depends on our ability to continue to satisfy our covenants and other obligations under the New Credit Agreement and the ability for our manufacturers to be approved vendors under our New Credit Agreement.
Our ability to borrow under the Amended Credit Agreement depends on our ability to continue to satisfy our covenants and other obligations under the Amended Credit Agreement and the ability for our manufacturers to be approved vendors under our Amended Credit Agreement.
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 health issues such as the COVID-19 pandemic.
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.
The aging of our inventory limits our borrowing capacity as defined provisions in the New Credit Agreement reduce the allowable advance rate as our inventory ages.
The aging of our inventory limits our borrowing capacity as defined provisions in the Amended Credit Agreement reduce the allowable advance rate as our inventory ages.
In addition, increases in the United States corporate income tax rates (as currently being contemplated by the legislative and federal branches) would have 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 .
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, restrict them to specified locations, and retain approval rights over changes in management and ownership, among other things.
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.
The New Credit Agreement provides the Company a line of credit with asset based borrowing availability of up to $750 million and establishes a revolving credit facility in the maximum amount of $100 million, a delayed draw term loan facility to finance the acquisition of IGY Marinas in the maximum amount of $400 million, and a $100 million delayed draw mortgage loan facility.
The Amended Credit Agreement provides the Company a line of credit with asset based borrowing availability of up to $950 million and establishes a revolving credit facility in the maximum amount of $100 million, a delayed draw term loan facility to finance the acquisition of IGY Marinas in the maximum amount of $400 million, and a $100 million delayed draw mortgage loan facility.
Any difficulties encountered by any of our manufacturers, particularly Brunswick and Azimut-Benetti Group, resulting from economic, financial, supply chain, or other factors, such as the COVID-19 pandemic, could adversely affect the quality and amount of products that they are able to supply to us and the services and support they provide to us.
Any difficulties encountered by any of our manufacturers, particularly Brunswick and Azimut-Benetti Group, resulting from economic, financial, supply chain, or other factors could adversely affect the quality and amount of products that they are able to supply to us and the services and support they provide to us.
Over the three-year period ended September 30, 2022, the average revenue for the quarterly periods ended December 31, March 31, June 30 and September 30 represented approximately 20%, 24%, 32%, and 24%, respectively, of our average annual revenue.
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.
None of our real estate has been pledged for collateral for the New Credit Agreement. As of September 30, 2022, we were in compliance with all of the covenants under the New Credit Agreement and our additional available borrowings under the New Credit Agreement was approximately $65.8 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, 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.
Weather and environmental conditions may adversely impact our operating results. For example, drought conditions, reduced rainfall levels, excessive rain and environmental conditions, and hurricanes may force boating areas to close or render boating dangerous or inconvenient, thereby curtailing customer demand for our products.
Risks Related to the Environment and Geography Weather and environmental conditions may adversely impact our business. Weather and environmental conditions may adversely impact our operating results. For example, drought conditions, reduced rainfall levels, excessive rain and environmental conditions, and hurricanes may force boating areas to close or render boating dangerous or inconvenient, thereby curtailing customer demand for our products.
In addition to facing competition generally from recreation businesses seeking to attract consumers’ leisure time and discretionary spending dollars, the recreational boat industry itself is highly fragmented, resulting in intense competition for customers, quality products, boat show space, and suitable retail locations.
In addition to facing competition generally from recreation businesses seeking to attract consumers’ leisure time and discretionary spending dollars, the recreational boat industry itself is highly fragmented, resulting in intense competition for customers, quality products, boat show space, and suitable retail locations. We rely to a certain extent on boat shows to generate sales.
Our operations involve certain international activities, including our sales of yachts produced by the Azimut-Benetti Group in Italy, yachts produced by Galeon in Poland, and power catamarans for our charter fleet produced by Sino Eagle in China, as well as our Fraser Yachts Group and Northrop & Johnson operations.
Our operations involve certain international activities, including our sales of yachts produced by the Azimut-Benetti Group in Italy, yachts produced by Galeon in Poland, yachts produced by Ocean Alexander in Taiwan, and power catamarans produced by Sino Eagle in China, as well as our Fraser Yachts Group and Northrop & Johnson operations in various countries.
Approximately 23% of our revenue in fiscal 2022 resulted from sales of new boats manufactured by Brunswick, including approximately 11% from Brunswick’s Sea Ray division, 9% from Brunswick’s Boston Whaler division, and approximately 3% from Brunswick’s other divisions. Additionally, approximately 8% of our revenue in fiscal 2022 resulted from sales of new boats manufactured by Azimut-Benetti Group.
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.
In particular, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”) imposes joint, strict, and several liability on: • owners or operators of facilities at, from, or to which a release of hazardous substances has occurred; • parties that generated hazardous substances that were released at such facilities; and • parties that transported or arranged for the transportation of hazardous substances to such facilities. 29 A majority of states have adopted Superfund statutes comparable to and, in some cases, more stringent than CERCLA.
In particular, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”) imposes joint, strict, and several liability on: • owners or operators of facilities at, from, or to which a release of hazardous substances has occurred; • parties that generated hazardous substances that were released at such facilities; and • parties that transported or arranged for the transportation of hazardous substances to such facilities.
If the permits necessary to dredge marinas or dispose of the dredged material cannot be timely obtained after the acquisition of a marina, or if dredging is not practical or is exceedingly expensive, this would have a material adverse effect on our financial performance. Risks Related to the Environment and Geography Weather and environmental conditions may adversely impact our business.
If the permits necessary to dredge marinas or dispose of the dredged material cannot be timely obtained after the acquisition of a marina, or if dredging is not practical or is exceedingly expensive, this would have a material adverse effect on our financial performance.
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. 20 Risks Related to Our Strategies Failure to implement strategies to enhance our performance or our strategies could have a material adverse effect on our business and financial condition.
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.
We compete in each of our markets with retailers of brands of boats and engines we do not sell in that market. 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.
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, we may encounter difficulties in integrating the operations of acquired dealers with our own operations, difficulties in retaining employees, potential risks of losing customers, suppliers, or other business relationships, and difficulties in managing acquired dealers profitably without substantial costs, delays, or other operational or financial problems. 21 Our ability to continue to grow through acquisitions depends upon various factors, including the following: • the availability of suitable acquisition candidates at attractive purchase prices; • the ability to compete effectively for available acquisition opportunities; • the availability of cash on hand, borrowed funds or stock with a sufficient value to complete the acquisitions; • the ability to obtain any requisite manufacturer or governmental approvals; • the ability to obtain approval of our lenders under our current credit agreement; and • the absence of one or more manufacturers attempting to impose unsatisfactory restrictions on us in connection with their approval of acquisitions.
Our ability to continue to grow through acquisitions depends upon various factors, including the following: • the availability of suitable acquisition candidates at attractive purchase prices; • the ability to compete effectively for available acquisition opportunities; • the availability of cash on hand, borrowed funds or stock with a sufficient value to complete the acquisitions; • the ability to obtain any requisite manufacturer or governmental approvals; • the ability to obtain approval of our lenders under our current credit agreement; and • the absence of one or more manufacturers attempting to impose unsatisfactory restrictions on us in connection with their approval of acquisitions.
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.
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.
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.
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.
If we were to be found to be a responsible party under CERCLA or a similar state statute, we could be held liable for all investigative and remedial costs associated with addressing such contamination.
A majority of states have adopted Superfund statutes comparable to and, in some cases, more stringent than CERCLA. If we were to be found to be a responsible party under CERCLA or a similar state statute, we could be held liable for all investigative and remedial costs associated with addressing such contamination.
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.
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.
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 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.
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.
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.
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.
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.
We rely to a certain extent on boat shows to generate sales. 19 We compete primarily with single-location boat dealers and, with respect to sales of marine parts, accessories, and equipment, with national specialty marine parts and accessories stores, online catalog retailers, sporting goods stores, and mass merchants.
We compete primarily with single-location boat dealers and, with respect to sales of marine parts, accessories, and equipment, with national specialty marine parts and accessories stores, online catalog retailers, sporting goods stores, and mass merchants. Competition among boat dealers is based on the quality of available products, the price and value of the products, and attention to customer service.
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. 24 Risks Related to Our Operations The availability and costs of borrowed funds can adversely affect our ability to obtain adequate boat inventory and the ability and willingness of our customers to finance boat purchases.
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.
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.
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.
Our systems, procedures, controls, financial resources, and management and staffing levels may not be adequate to support expanding operations.
Our systems, procedures, controls, financial resources, and management and staffing levels may not be adequate to support expanding operations. The inability to manage our growth effectively could have a material adverse effect on our business, financial condition, and results of operations.
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. Our business operations could be negatively impacted by an outage or breach of our informational technology systems or a cybersecurity event.
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.
Our continued expansion and success will be negatively impacted if we are not able to fully exploit these channels.
In addition to our traditional repeat and referral business in our physical locations, digital channels are increasingly significant in serving our existing customer base and reaching new customers. Our continued expansion and success will be negatively impacted if we are not able to fully exploit these channels.
These laws and regulations include, for example, the European General Data Protection Regulation, 30 effective May 2018, and the California Consumer Privacy Act, effective January 2020. Regulatory actions or litigation seeking to impose significant penalties could be brought against us in the event of a data breach or alleged non-compliance with such laws and regulations.
Regulatory actions or litigation seeking to impose significant penalties could be brought against us in the event of a data breach or alleged non-compliance with such laws and regulations. Risks Related to Our Common Stock The timing and amount of our share repurchases are subject to a number of uncertainties.
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.
Additionally, certain states have required or are considering requiring a license in order to operate a recreational boat.
Competition among boat dealers is based on the quality of available products, the price and value of the products, and attention to customer service. There is significant competition both within markets we currently serve and in new markets that we may enter.
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.
Removed
The inability to manage our growth effectively could have a material adverse effect on our business, financial condition, and results of operations. 22 In addition to our traditional repeat and referral business in our physical locations, digital channels are increasingly significant in serving our existing customer base and reaching new customers.
Added
The market prices of certain materials and components used by us and our suppliers in manufacturing our products can be volatile.
Removed
The degree to which our financial results are affected for any given time period will depend in part upon the success and extent of our hedging activities.
Added
Significant increases in inflation, particularly those related to wages and increases in the cost of raw materials, may have an adverse impact on the business, financial condition, and results of operations of us or our suppliers, and our suppliers may in turn pass such increases along to us by raising the cost of our inventories.
Removed
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.
Added
In addition, new boat buyers often finance their purchases. Inflation, along with rising interest rates, could translate into an increased cost of boat ownership.
Removed
Risks Related to Our Common Stock The timing and amount of our share repurchases are subject to a number of uncertainties. The Company maintains a stock repurchase plan authorizing the Company to purchase up to 10 million shares of its commons stock through March 2024.
Added
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.
Removed
We actively engage in discussions with our shareholders regarding further strengthening our Company and creating long-term shareholder value. This ongoing dialogue can include certain divisive activist tactics, which can take many forms.
Added
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.
Added
Changes in accounting standards, how the accounting standards are interpreted, or the adoption of new accounting standards can have a significant effect on our reported results, and could even retroactively affect previously reported transactions, and may require that we make significant changes to our systems, processes and controls.
Added
Changes resulting from these new standards may result in materially different financial results and may require that we change how we process, analyze and report financial information and that we change financial reporting controls. Such changes in accounting standards may have an adverse effect on our business, financial position, and income, which may negatively impact our financial results.
Added
Risks Related to Our Strategies Failure to implement strategies to enhance our performance or our strategies could have a material adverse effect on our business and financial condition.
Added
In addition, we may encounter difficulties in integrating the operations of acquired dealers with our own operations, difficulties in retaining employees, potential risks of losing customers, suppliers, or other business relationships, and difficulties in managing acquired dealers profitably without substantial costs, delays, or other operational or financial problems.
Added
Risks Related to Our Operations The availability and costs of borrowed funds can adversely affect our ability to obtain adequate boat inventory and the ability and willingness of our customers to finance boat purchases.
Added
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
Changes in the assumptions used to calculate our acquisition related contingent consideration liabilities could have a material adverse impact on our financial results. Our recent acquisitions included contingent consideration liabilities relating to payments based on the future performance of the operations acquired. Under generally accepted accounting principles, we are required to estimate the fair value of any contingent consideration.
Added
Our estimates of fair value are based upon assumptions believed to be reasonable but which are uncertain and involve significant judgments. Changes in business conditions or other events could materially change the projection of future earnings used in the fair value calculations of contingent consideration liabilities.
Added
We reassess the fair value quarterly, and increases or decreases based on the actual or expected future performance of the acquired operations will be recorded in our results of operations. These quarterly adjustments could have a material effect on our results of operations.
Added
An impairment in the carrying value of long-lived assets and goodwill could negatively impact our financial results and net worth. Our long-lived assets, such as property and equipment, are required to be reviewed for impairment whenever events or changes in circumstance indicate that the carrying value of an asset may not be recoverable.
Added
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.

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Item 2. Properties

Properties — owned and leased real estate

14 edited+1 added−1 removed2 unchanged
Biggest changeThe 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. 31 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; 56 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 only, 8 wet slips — Intracoastal Waterway Clearwater Company owned 42,000 Retail and service; 20 wet slips 1973 Tampa Bay Cocoa Company owned 15,000 Retail and service 1968 — Dania Company owned 32,000 Repair and service; 16 wet slips 1991 Port Everglades Fort Walton Beach Company owned 3,000 Repair and service; 83 wet slips 2019 Choctawhatchee Bay Fort Myers Company owned 60,000 Retail, service, and storage; 64 wet slips 1983 Caloosahatchee River Jacksonville Third-party lease 9,000 Retail and service 2016 Intracoastal Waterway Key Largo Third-party lease 8,900 Retail and service; 6 wet slips 2002 Card Sound Miami Company owned 7,200 Retail and service; 15 wet slips 1980 Little River Miami Company owned 5,000 Service only; 11 wet slips 2005 Little River Naples Company owned 19,600 Retail and service; 14 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, and storage; 60 wet slips 2016 Pensacola Bay Pompano Beach Company owned 23,000 Retail and service; 16 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; 15 wet slips 1972 Sarasota Bay St.
Biggest changeLocation 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.
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.
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.
Item 2. P roperties The Retail Operations segment includes our leased corporate offices in Clearwater, Florida. We also lease 48 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 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.
Additionally, we own four 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.
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.
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 36 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.
(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. 34 IGY Marinas offers a global network of marinas in the Americas, the Caribbean, and Europe.
(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.
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, 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 Third-party lease Maximo Marina, 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) Spain IGY Málaga Marina Joint venture Málaga Marina San Andres Managed (2) 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 NEOM Sindalah Island Managed (2) Spain IGY Málaga Marina Joint venture Málaga Marina San Andres Managed (2) IGY Ibiza Marina Joint venture St.
Croix River Excelsior Third-party lease 2,500 Retail only; 14 wet slips 2013 Lake Minnetonka Rogers Company owned 70,000 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, service, and storage; 300 wet slips 1987 Lake of the Ozarks Laurie (3) Company owned 700 Retail and service — — 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 31,000 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 — Southport Third-party lease 1,600 Retail only 2008 Cape Fear River Wrightsville Beach Third-party lease 34,500 Retail, service, and storage 1996 Masonboro Inlet Ohio Marina Del Isle Third-party lease 163,800 Retail, marina, service and storage; 189 wet slips 2020 Lake Erie Port Clinton Company owned 80,000 Retail, service and storage; 8 wet slips 1997 Lake Erie 33 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 88,480 Retail, service, and storage; 30 wet slips 2002 Clear Lake Aubrey (3) Company owned 15,000 Retail and service — — Fort Worth Company owned 30,000 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.
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.
Petersburg Company owned 15,000 Retail and service; 20 wet slips 2006 Boca Ciega Bay Stuart Company owned 29,100 Retail and service; 66 wet slips 2002 Intracoastal Waterway Venice Company owned 62,000 Retail, service, and storage; 90 wet slips 1972 Intracoastal Waterway Georgia Buford (Atlanta) (3) Company owned 13,500 Retail and service 2001 — Cumming (Atlanta) Third-party lease 13,000 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 32 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 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 Managed (2) One Island Park Miami Beach Managed (2) United States, New York & Maine North Cove Marina at Brookfield Place, New York Managed (2) Fore Points Marina, Maine Managed (2) United States Virgin Islands, Saint Thomas Yacht Haven Grande USVI 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.
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.
(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.
(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.
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. 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.
The 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.
We believe that our properties are well maintained and in good operating condition. 35
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
Removed
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. The Product Manufacturing segment operates out of four owned manufacturing properties, three in the Green Bay, Wisconsin metropolitan area, and one in Largo, Florida.
Added
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.

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, 2022, 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, 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.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe graph assumes an investment of $100 on September 30, 2017. The calculations of cumulative shareholder return on the Russell 2000 Index and the Nasdaq Retail Trade Index include reinvestment of dividends. 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.
Biggest changeThe 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.
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, 2022 to July 31, 2022 — $ — — 8,919,764 August 1, 2022 to August 31, 2022 — — — 8,919,764 September 1, 2022 to September 30, 2022 63,884 29.79 — 8,919,764 Total 63,884 $ 29.79 — 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, 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.
(2) 63,884 shares reported in September 2022 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. 37 Performance Graph The following line graph compares cumulative total shareholder returns for the five years ended September 30, 2022 for (i) our common stock, (ii) the Russell 2000 Index, and (iii) the Nasdaq Retail Trade Index.
(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.
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.
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
On November 14, 2022, there were approximately 50 record holders and approximately 22,000 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 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.
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.
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.
High Low 2020 Fourth quarter $ 39.96 $ 25.54 2021 First quarter $ 63.99 $ 34.14 Second quarter $ 70.89 $ 44.06 Third quarter $ 56.00 $ 43.75 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 (through November 14, 2022) $ 35.33 $ 27.40 On November 14, 2022, the closing sale price of our common stock was $33.85 per share.
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.
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). 36 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, 2022.
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).
Added
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 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.

Item 7. Management's Discussion & Analysis

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

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Biggest changeRecent Accounting Pronouncements See Note 3 of the Notes to Consolidated Financial Statements. 41 Results of Operations The following table sets forth certain financial data as a percentage of revenue for the periods indicated: Fiscal Year Ended September 30, 2020 2021 2022 (Amounts in thousands) Revenue $ 1,509,713 100.0 % $ 2,063,257 100.0 % $ 2,308,098 100.0 % Cost of sales 1,111,000 73.6 % 1,403,824 68.0 % 1,502,344 65.1 % Gross profit 398,713 26.4 % 659,433 32.0 % 805,754 34.9 % Selling, general and administrative expenses 291,998 19.3 % 449,974 21.8 % 540,550 23.4 % Income from operations 106,715 7.1 % 209,459 10.2 % 265,204 11.5 % Interest expense 9,275 0.6 % 3,665 0.2 % 3,283 0.2 % Income before income taxes 97,440 6.5 % 205,794 10.0 % 261,921 11.3 % Income tax provision 22,806 1.5 % 50,815 2.5 % 63,932 2.7 % Net income $ 74,634 5.0 % $ 154,979 7.5 % $ 197,989 8.6 % Fiscal Year Ended September 30, 2022, Compared with Fiscal Year Ended September 30, 2021 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, 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 .
We also own Fraser Yachts Group, a leading superyacht brokerage and luxury yacht services company with operations in multiple countries, Northrop & Johnson, another leading superyacht brokerage and services company with operations in multiple countries, SkipperBud’s, one of the largest boat sales, brokerage, service and marina/storage groups in the United States, Cruisers Yachts, a manufacturer of sport yacht and yachts with sales through our select retail dealership locations and through independent dealers.
We also own Fraser Yachts Group, a leading superyacht brokerage and luxury yacht services company with operations in multiple countries, Northrop & Johnson, another leading superyacht brokerage and services company with operations in multiple countries, SkipperBud’s, one of the largest boat sales, brokerage, service and marina/storage groups in the United States, and Cruisers Yachts, a manufacturer of sport yacht and yachts with sales through our select retail dealership locations and through independent dealers.
The interest rate is (a) for amounts outstanding under the floor plan facility, 3.45% above the one month secured term rate as administered by the CME Group Benchmark Administration Limited (CBA) (“SOFR”), (b) for amounts outstanding under the revolving credit facility or the term loan facility, a range of 1.50% to 2.0%, depending on the total net leverage ratio, above the one month, three month, or six month term SOFR rate, and (c) for amounts outstanding under the mortgage loan facility, 2.20% above the one month, three month, or six month term SOFR rate.
The interest rate is (a) for amounts outstanding under the Floor Plan, 3.45% above the one month secured term rate as administered by the CME Group Benchmark Administration Limited (CBA) (“SOFR”), (b) for amounts outstanding under the revolving credit facility or the term loan facility, a range of 1.50% to 2.0%, depending on the total net leverage ratio, above the one month, three month, or six month term SOFR rate, and (c) for amounts outstanding under the mortgage loan facility, 2.20% above the one month, three month, or six month term SOFR rate.
We also sell related marine products, including engines, trailers, parts, and accessories. In addition, we provide repair, maintenance, and slip and storage services; we arrange related boat financing, insurance, and extended service contracts; and we offer boat and yacht brokerage sales, and yacht charter services. In the British Virgin Islands, we offer the charter of catamarans, through MarineMax Vacations.
We also sell related marine products, including engines, trailers, parts, and accessories. In addition, we provide repair, maintenance, and slip and storage rentals; we arrange related boat financing, insurance, and extended service contracts; and we offer boat and yacht brokerage sales, and yacht charter services. In the British Virgin Islands, we offer the charter of catamarans through MarineMax Vacations.
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. 40 We do not directly finance our customers’ boat, motor, or trailer purchases.
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.
For the fiscal year ended September 30, 2021, cash used in investing activities was primarily 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, 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.
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 results of operations.
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.
We recognize revenue from service operations and slip and storage services over time on a straight-line basis over the term of the contract as our performance obligations are met. We recognize revenue from the rentals of chartering power yachts over time on a straight-line basis over the term of the contract as our performance obligations are met.
We recognize revenue from service operations and slip and storage rentals over time on a straight-line basis over the term of the contract as our performance obligations are met. We recognize revenue from the rentals of chartering power yachts over time on a straight-line basis over the term of the contract as our performance obligations are met.
(4) Amounts for operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. These amounts are not a material component of operating expenses. 44
(4) Amounts for operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. These amounts are not a material component of operating expenses.
We believe the steps we have taken 39 to address weak market conditions in the past have yielded, and we believe are likely to yield in the future, an increase in revenue.
We believe the steps we have taken to address weak market conditions in the past have yielded, and we believe are likely to yield in the future, an increase in revenue.
Discussions of fiscal 2020 items and year-to-year comparisons between fiscal 2021 and 2020 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, 2021.
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.
Overview We believe we are the largest recreational boat and yacht retailer and superyacht services company in the world. Through our current 78 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 current 81 retail locations in 21 states, we sell new and used recreational boats and related marine products, including engines, trailers, parts, and accessories.
Since the initial acquisitions in March 1998, we have, as of the filing of this Annual Report on Form 10-K, acquired 32 recreational boat dealers, five boat brokerage operations, two full-service yacht repair 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 33 recreational boat dealers, five boat brokerage operations, two full-service yacht repair operations, five boat brokerage operations, and two boat and yacht manufacturers.
We base the chargeback allowance, which was not material to the consolidated financial statements taken as a whole as of September 30, 2021 and 2022, 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, 2022 and 2023, on our experience with repayments or defaults on the related finance contracts.
As of September 30, 2022, the Retail Operations segment includes the activity of 78 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, 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.
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 $5.7 million and $5.9 million as of September 30, 2021 and September 30, 2022, 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 $5.9 million and $5.3 million as of September 30, 2022 and September 30, 2023, respectively.
For the fiscal year ended September 30, 2022, cash provided by financing activities was primarily attributable to increased short-term borrowings and net proceeds from issuance of common stock under incentive compensation and employee purchase plans, partially offset by purchase of treasury stock, payments on tax withholdings for equity awards, payments for long-term debt, payments for debt issuance costs, and contingent acquisition consideration payments.
For the fiscal year ended September 30, 2022, cash provided by financing activities was primarily attributable to 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 purchase of treasury stock, payments on tax withholdings for equity awards, payments for long-term debt, payments for debt issuance costs, and contingent acquisition consideration payments.
For the fiscal year ended September 30, 2021, cash used in financing activities was primarily attributable to net payments for short-term borrowings, 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, 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.
Our business could become substantially more seasonal if we acquire additional dealers that operate in colder regions of the United States or close retail locations in warm climates. 42 Our business is also subject to weather patterns, which may adversely affect our results of operations.
Our business could become substantially more seasonal if we acquire additional dealers that operate in colder regions of the United States, or other parts of the world, or close retail locations in warm climates. Our business is also subject to weather patterns, which may adversely affect our results of operations.
We completed two acquisitions in the fiscal year ended September 30, 2020, three acquisitions in the fiscal year ended September 30, 2021, and four acquisitions in the fiscal year ending September 30, 2022. General economic conditions and consumer spending patterns can negatively impact our operating results.
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.
This section of this Form 10-K generally discusses fiscal 2022 and 2021 items and year-to-year comparisons between fiscal 2022 and 2021.
This section of this Form 10-K generally discusses fiscal 2023 and 2022 items and year-to-year comparisons between fiscal 2023 and 2022.
Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated approximately 54%, 50%, and 51% of our dealership revenue during fiscal 2020, 2021, and 2022, 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 50%, 51%, and 53% of our dealership revenue during fiscal 2021, 2022, and 2023, respectively, can have a major impact on our operations.
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.
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.
We also use this evaluation in conjunction with our review of our current and expected operating performance and expected business levels to determine the adequacy of our financing needs. These cash needs historically have been financed with cash generated from operations and borrowings under the New Credit Agreement (described below).
We also use this evaluation in conjunction with our review of our current and expected operating performance and expected business levels to determine the extent of our financing needs. These cash needs historically have been financed with cash generated from operations and borrowings under the Amended Credit Facility (described below).
The New Credit Agreement provides the Company a line of credit with asset based borrowing availability of up to $750 million and establishes a revolving credit facility in the maximum amount of $100 million (including a $20 million swingline facility and a $20 million letter of credit sublimit), a delayed draw term loan facility to finance the acquisition of IGY Marinas in the maximum amount of $400 million, and a $100 million delayed draw mortgage loan facility.
The Amended Credit Facility provides the Company a line of credit with asset based borrowing availability (the "Floor Plan") of up to $950 million and establishes a revolving credit facility in the maximum amount of $100 million (including a $20 million swingline facility and a $20 million letter of credit sublimit), a delayed draw term loan facility to finance the acquisition of IGY Marinas in the maximum amount of $400 million, and a $100 million delayed draw mortgage loan facility.
In October 2022, we completed the acquisition of IGY Marinas. 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.
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.
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 year ended September 30, 2023, cash used in operating activities was primarily related to increases in inventory, increases in accounts receivable, and decreases in contract liabilities (customer deposits), partially offset by increases in accounts payable and 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.
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 New Credit Agreement and therefore our ability to utilize the New Credit Agreement to fund operations. As of September 30, 2022, we were in compliance with all covenants under the New Credit Agreement.
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.
Our ability to utilize the New Credit Agreement to fund operations depends upon the collateral levels and compliance with the covenants of the New Credit Agreement.
Our ability to utilize the Amended Credit Facility to fund operations depends upon the collateral levels and compliance with the covenants of the Amended Credit Facility.
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.
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.
However, we cannot predict the length of favorable economic or financial conditions. We regularly monitor the aging of our inventories and current market trends to evaluate our current and future inventory needs.
We cannot predict the length of prevailing economic or financial conditions. We regularly monitor the aging of our inventories and current market trends (including supply chain issues) to evaluate our current and future inventory needs.
Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufacturing sport yacht and yachts with sales through our select retail dealership locations and through independent dealers. Cruisers Yachts is recognized as one of the world’s premier manufacturers of premium sport yacht and yachts, producing models from 33’ to 60’ feet. Intrepid Powerboats, also a wholly-owned MarineMax subsidiary, is a producer of customized boats.
Cruisers Yachts is recognized as one of the world’s premier manufacturers of premium sport yacht and yachts, producing models from 33’ to 60’ feet. Intrepid Powerboats, also a wholly-owned MarineMax subsidiary, is a producer of customized boats.
Refer to Note 11 and 22 of the Notes to Consolidated Financial Statements for disclosure of borrowing availability, interest rates, terms of our short-term borrowings and long-term debt, and closing of the IGY Marinas transaction in October 2022.
Refer to Note 11 of the Notes to the Consolidated Financial Statements for disclosure of borrowing availability, interest rates, and terms of our short-term borrowings (Floor Plan) and long-term debt.
In August 2022, we entered into to a Credit Agreement with Manufacturers and Traders Trust Company as Administrative Agent, Swingline Lender, and Issuing Bank, Wells Fargo Commercial Distribution Finance, LLC, as Floor Plan Agent, and the lenders party thereto (the “New Credit Agreement”).
We are party to the Amended Credit Facility with Manufacturers and Traders Trust Company as Administrative Agent, Swingline Lender, and Issuing Bank, Wells Fargo Commercial Distribution Finance, LLC, as Floor Plan Agent, and the lenders party thereto.
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.
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.
Revenue increased $244.8 million, or 11.9%, to approximately $2.308 billion for the fiscal year ended September 30, 2022 from $2.063 billion for the fiscal year ended September 30, 2021.
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.
For the fiscal year ended September 30, 2020, cash provided by operating activities was primarily related to decreases in inventory, accounts receivable, increases in accrued expenses and other liabilities, increases in accounts payable, and our net income adjusted for non-cash expenses and gains such as depreciation and amortization expense, deferred income tax provision, stock-based compensation expense, and insurance proceeds received.
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 years ended September 30, 2021 and 2020, cash used in financing activities was approximately $145.7 million and $158.1 million, respectively.
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.
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased $90.6 million, or 20.1%, to $540.6 million for the fiscal year ended September 30, 2022 from $450.0 million for the fiscal year ended September 30, 2021. Selling, general and administrative expenses for the fiscal year ended September 30, 2022, included $4.8 million of hurricane expenses.
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.
For the fiscal year ended September 30, 2020, cash used in financing activities was primarily attributable to a decrease in net short-term borrowings as a result of decreased inventory levels, repurchase of common stock under the share repurchase program, 43 payments on tax withholdings for equity awards, partially offset by proceeds from the issuance of common stock from our stock-based compensation plans and proceeds from long- term debt.
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.
As of September 30, 2022, our indebtedness associated with our short-term borrowings and our long-term debt totaled approximately $135.1 million and $48.7 million, respectively. As of September 30, 2022, short-term borrowings and long-term debt recorded on the Consolidated Balance Sheets included unamortized debt issuance costs of approximately $3.1 million and $0.5 million, respectively.
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.
For the fiscal year ended September 30, 2020, cash used in investing activities was primarily used to purchase property and equipment associated with improving existing retail facilities and purchase property and equipment and other assets associated with business acquisitions. For the fiscal year ended September 30, 2022, cash provided by financing activities was approximately $73.1 million.
For the fiscal year ended September 30, 2023, cash used in investing activities was primarily used for the acquisition of IGY Marinas, to purchase property and equipment associated with improving existing retail facilities, and to purchase investments, partially offset by proceeds from the sale of investments and property and equipment.
For the fiscal years ended September 30, 2022, 2021, and 2020, cash used in investing activities was approximately $140.5 million, $161.1 million, and $30.1 million, respectively.
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.
Our effective income tax rate decreased to 24.4% for fiscal year ended September 30, 2022, from 24.7% for fiscal year ended September 30, 2021. The decrease in the effective income tax rate was primarily attributed to benefits from stock-based compensation.
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.
Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies with operations in multiple countries, are also included in this segment. As of September 30, 2022, the Product Manufacturing segment includes activity of Cruisers Yachts and Intrepid Powerboats.
Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies with operations in multiple countries, are also included in this segment. Through IGY Marinas, which is also included in this segment, we maintain a network of strategically positioned luxury marinas situated in yachting and sport fishing destinations around the world.
Of this increase, $94.7 million was attributable to a 5% increase in comparable-store sales and an approximate $150.1 million net increase was related to stores opened, including acquired, or closed that were not eligible for inclusion in the comparable-store base, as well as Intrepid Powerboats and Cruisers Yachts manufacturing revenue which are not included in comparable retail store sales.
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.
Interest expense decreased $0.4 million, or 10.8%, to $3.3 million for the fiscal year ended September 30, 2022, from $3.7 million for the fiscal year ended September 30, 2021. Interest expense as a percentage of revenue remained consistent at 0.2% for the fiscal year ended September 30, 2022 and for the fiscal year ended September 30, 2021.
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 .
Excluding hurricane expenses, selling, general and administrative expenses increased as a percentage of revenue to 23.2% for the fiscal year ended September 30, 2022 from 21.8% for the fiscal year ended September 30, 2022.
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.
We currently depend upon cash flows from operations, dividends and other payments from our dealerships, and the New Credit Agreement to fund our current operations and meet our cash needs.
We currently depend upon dividends and other payments from our businesses and the Amended Credit Facility to fund our current operations and meet our cash needs. As the majority owner of each of our businesses, we determine the amounts of such distributions subject to applicable law, and currently, no agreements exist that restrict this flow of funds from our businesses.
The decrease in interest expense was primarily the result of decreased borrowings on average throughout the fiscal year. Income Taxes . Income tax expense increased $13.1 million, or 25.8%, to $63.9 million for the fiscal year ended September 30, 2022 from $50.8 million for the fiscal year ended September 30, 2021.
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.
Removed
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.
Added
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.
Removed
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.
Added
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 December 2022, we acquired Midcoast Marine Group, a leading full-service marine construction company based on Central Florida's Gulf Coast.
Removed
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.
Added
In January 2023, we acquired Boatzon, a boat and marine digital retail platform, through our recently formed technology entity, New Wave Innovations. In June 2023, we acquired C&C Boat Works, a full-service boat dealer in Crosslake, Minnesota. In October 2023, we acquired AGY, a luxury charter management agency based in Athens, Greece.
Removed
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.
Added
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.
Removed
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.
Added
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.
Removed
The increase in our comparable-store sales was primarily due to demand driven increases in new boat revenue and our higher margin finance and insurance products, brokerage, parts, service, and storage services. Gross Profit .
Added
We recognize lessor common area charges, utility sales, food and beverage sales and other ancillary goods and services. Performance obligations include performing common area maintenance and providing utilities, food and beverages, and other ancillary goods and services when goods are transferred or services are performed. Payment terms typically align with when the goods and services are provided.
Removed
Gross profit increased $146.3 million, or 22.2%, to $805.8 million for the fiscal year ended September 30, 2022 from $659.4 million for the fiscal year ended September 30, 2021. Gross profit as a percentage of revenue increased to 34.9% for the fiscal year ended September 30, 2022 from 32.0% for the fiscal year ended September 30, 2021.
Added
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.
Removed
The increase in gross profit as a percentage of revenue was primarily the result of demand driven price increases resulting in greater new and used boat margins and increases in our higher margin businesses, including our superyacht-services companies, as a percentage of sales. The increase in gross profit dollars was primarily attributable to increased new boat sales.
Added
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.
Removed
As 100% owner of each of our dealerships, we determine the amounts of such distributions subject to applicable law, and currently, no agreements exist that restrict this flow of funds from our dealerships. For the fiscal years ended September 30, 2022, 2021 and 2020, cash provided by operating activities was approximately $76.6 million, $373.9 million, and $304.7 million, respectively.
Added
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.
Removed
Based on the information currently available to us, the COVID-19 pandemic’s impact on consumer demand is uncertain, however, 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 for possible significant acquisitions.
Added
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.
Removed
Commitments and Commercial Commitments The following table sets forth a summary of our material contractual obligations and commercial commitments as of September 30, 2022: Payments Due by Period Ending September 30, Total Less Than 1 Year (2023) 1-3 Years (2024 and 2025) 3-5 Years (2026 and 2027) More Than 5 Years (2028 and thereafter) (Amounts in thousands) Short-term borrowings (1) $ 135,066 $ 135,066 $ — $ — $ — Long-term debt (2) 48,693 2,882 5,764 9,764 30,283 Other liabilities (3) 16,156 9,300 6,416 440 — Operating leases (4) 138,764 14,715 24,916 20,216 78,917 Total $ 338,679 $ 161,963 $ 37,096 $ 30,420 $ 109,200 (1) Estimates of future interest payments for short-term borrowings have been excluded in the tabular presentation.
Added
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
Recent Accounting Pronouncements See Note 3 of the Notes to Consolidated Financial Statements.
Added
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.
Added
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.
Added
Advances under the Floor Plan are initiated by the acquisition of eligible new and used inventory or are re-advanced against eligible new and used inventory that have been partially paid-off. Advances on new inventory will generally mature 1,080 days from the original invoice date. Advances on used inventory will mature 361 days from the date we acquire the used inventory.
Added
Each advance is subject to a curtailment schedule, which requires that we pay down the balance of each advance on a periodic basis starting six months after receiving such advance. The curtailment schedule varies based on the type and value of the inventory.
Added
The collateral for the Amended Credit Agreement is primarily the Company’s inventory that is financed through the Amended Credit Agreement and related accounts receivable.
Added
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.
Added
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.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−0 removed5 unchanged
Biggest changeMost of the transactions or balances for Fraser Yachts Group are denominated in euros. Net revenues recognized whose functional currency was not the U.S. dollar were less than 2% of our total revenues in fiscal 2022.
Biggest changeMost 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.
If and when we do engage in foreign currency exchange hedging transactions, there can be no assurance that our strategies will adequately protect our operating results from the effects of exchange rate fluctuations. Additionally, the Fraser Yachts Group and Northrop & Johnson have transactions and balances denominated in currencies other than the U.S dollar.
If and when we do engage in foreign currency exchange hedging transactions, there can be no assurance that our strategies will adequately protect our operating results from the effects of exchange rate fluctuations. Additionally, the Fraser Yachts Group, Northrop & Johnson and IGY Marinas have transactions and balances denominated in currencies other than the U.S dollar.
These estimated increases are based upon the outstanding balance of our short-term borrowings and long-term debt as of September 30, 2022 and assumes 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, 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.
For 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 $1.7 million, $3.4 million, or $5.1 million in annual pre-tax interest expense.
For 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.

Other HZO 10-K year-over-year comparisons