Hi There,

Today, we are sharing the analysis of Intred, an Italian small-cap company that competes with Unidata (investment thesis published a few weeks ago). We believe it is very interesting both to gain a better understanding of the sector and to make a comparison with Unidata.

Also, as we mentioned last week, we are going to publish our analysis and comments on the results of all the companies we follow (analysis published in the last 12 months) and others that are on our radar. Today we share we are sharing the 5 that reported this week . The objective is to cover almost 40 companies among the entire team in the coming weeks.

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MarineMax $ HZO

Record revenue in 3Q23 was $721.8 million (+4.8%), mainly due to the acquisition of IGY Marinas in Oct-22. However, Net Income decreased to $46.5 million (-35%). Gross profit margin was 33.8%, which decreased 50 basis points from 34.3%. SG&A expenses represented 23.4% of sales compared to 20% in 3Q22 (this continues to be one of the main points we dislike about $HZO). As we mentioned, interest expenses also rose significantly (from $1 MM in 3Q22 to $14 MM this quarter).

MarineMax narrowed/confirmed its fiscal year 2023 guidance for adjusted earnings to a range of $5.10 to $5.50 per diluted share, compared with a prior range of $4.90 to $5.50. Adjusted EBITDA guidance was also narrowed to a range of $225 MM to $245 MM, compared with a prior range of $220 MM to $245 MM. (We understand this movement as a confirmation of its guidance)

Some comments:

Thoughts:

After 2 consecutive quarters of lowering the guidance, the market has taken this quarter's numbers well. We are concerned that while the gross margin has increased by 3%, SG&A expenses have gone up by 20% (apart from the interests, but this has been a trend across the industry and is inherent to the cycle). What we don't like at all is that inventories have increased from $711 million to $740 million, when this is the quarter where they should be decreasing. On the positive side, due to the acquisition of the marinas, the percentage of revenue derived from the sale of new boats continues to decrease, dropping 3 points to 69%. The number of shares has increased by 2% year-to-date....

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