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spk04: Good morning and welcome to the Marine Max Inc. Fiscal 2023 Fourth Quarter and Full Year Conference Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. At this time, I would like to turn the call over to Scott Solomon of the company's investor relations firm, Sharon Merrill. Please go ahead, sir.
spk00: Good morning, and thank you for joining us. Hosting today's call are Brett McGill, MarineMax's president and chief executive officer, and Mike McClam, the company's chief financial officer. Brett will begin the call by discussing MarineMax's operating highlights. Mike will review the financial results, and then management will be happy to take your questions. The earnings release and supplemental presentation can be found at investor.marinemax.com. With that, I'll turn the call over to Mike.
spk12: Thank you, Scott. Good morning, everyone, and thank you for joining this call. I'd like to start by reminding you that certain of our comments are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Any forward-looking statements speak only as of today. These statements involve risks and uncertainties that could cause actual results to differ materially from expectations. These risks include, but are not limited to, the impact of seasonality and weather, global economic conditions and the level of consumer spending, the company's ability to capitalize on opportunities or grow its market share, and numerous other factors identified in our Form 10-K and other filings with the Securities and Exchange Commission. Also on today's call, we will make comments referring to non-GAAP financial measures. We believe that the inclusion of these financial measures helps investors gain a meaningful understanding of the changes in the company's core operating results. These metrics can also help investors who wish to make comparisons between MarineMax and other companies on both a GAAP and a non-GAAP basis. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is available in today's earnings release. With that, let me turn the call over to Brett. Brett?
spk11: Thank you, Mike. Good morning, everyone, and thank you for joining us. I want to begin by thanking the entire MarineMax team, whose outstanding customer service contributed to strong top-line growth in fiscal 2023. As evidenced by our record fourth quarter and full-year revenue, demand for the boating lifestyle remains strong. From our 81 retail locations to our manufacturing facilities, marinas, and super yacht operations worldwide, our team is focused on one mission, to provide the world's best pleasure boating experience. Through strategic acquisitions, we are broadening our presence well beyond retail dealerships to higher margin segments of the industry that encompasses all aspects of the boat ownership lifecycle and enables us to build deep customer relationships. Today, Mike and I are speaking to you from the Fort Lauderdale International Boat Show. We're here representing all of our premium product lines, as well as large displays for Fraser Yachts, Northup & Johnson, and IGY marinas. We anticipate robust attendance, and we are particularly excited about the demand we continue to see in the premium segment, one of the critical drivers of our long-term growth strategy. Turning to our fourth quarter performance, we saw continued momentum from our strategic marketing and customer engagement initiatives, which drove an 8% increase in same-store sales. New and used boat sales were up in dollars and units, with the premium categories again performing well. However, we also saw better strength in categories that were lagging earlier in the year, like pontoons and towboats. Solid revenue gains in our higher margin businesses like service and finance and insurance contributed to the same store sales increase. IGY marinas, which we acquired last October, contributed meaningfully to our revenue growth for the quarter and full year. From a cadence perspective, as we noted on our July call, the quarter started strong and generally stayed active through the entire quarter with a strong close to September. Although our full-year adjusted EPS and adjusted EBITDA were in line with our most recent guidance, there's some additional work we need to do. We are looking specifically at SG&A expenses to evaluate more fully the latitude we have to reduce costs in areas that do not impact the customer experience. Clearly, inflation has affected operating costs. but we believe cost synergies do exist, and we will work to offset some of that inflation going forward. Given rising inventory levels across the industry and a return to seasonality, we anticipated some retail margin erosion in the quarter. However, we were pleased to see gross margins remain in the mid-30s. Plus, for the full year, our gross margins are flat at about 35%. That speaks to our business's increasing diversification and resilience across market cycles, as well as our strategy of adding higher margin businesses. Sophisticated data and analytics are adding more precision to our marketing initiatives. For example, we are using intelligent customer and inventory tools to monitor demand in real time. These tools enable us to drive marketing demand and inventory alignment. Our expanded strategic marketing capabilities are clearly driving improved retail results and driving market share growth. We're also gaining momentum with new wave innovation. More and more marine dealerships are registering to use BoatsOn.com, our digital retailing marine platform. In much the same way technology has streamlined the process of buying a car, BoatsOn is simplifying the customer experience of purchasing a boat. While still in the startup phase, we expect a bright future for both sides. Turning to other recent highlights, this month, Fraser Yachts completed the previously announced very strategic acquisition of Atalanta Golden Yachts, or AGY. Based in Athens, AGY is one of Greece's leading charter management companies. The addition of AGY is consistent with our strategy of adding high-quality businesses that enhance our margin profiles. AGY complements and greatly expands our superyacht services business in Greece, a major charter destination and home to one of the largest superyacht fleets in the world. Our M&A pipeline remains active and we continue to evaluate potential opportunities that align with our strategic priorities. A number of investors have asked us about the near-term industry outlook in light of the current economic environment. From a macro perspective, we are approaching fiscal 2024 with appropriate caution, but are encouraged by how 2023 ended. Nonetheless, we realize much uncertainty faces the world. That said, we continue to focus on the areas within our control by reviewing expenses, deploying our capital wisely, and capturing revenue synergies. As we look ahead to 2024, we are excited to build upon this foundation and deliver on our commitment to providing unparalleled boating and yachting experiences to a growing number of customers worldwide. With that update, let me turn the call over to Mike for a financial recap.
spk12: Mike? Thank you, Brett. I also want to thank our team for their efforts, which produced a strong fourth quarter and record revenue in fiscal 2023. In the quarter, we grew revenue 11% to $595 million, driven by an 8% increase in same-store sales. The same-store improvement was driven roughly 50-50 by units and average unit selling price growth. Consistent with our commentary all year, our premium brands continue to outshine any price point categories. However, as Brett noted, we did see additional strength this quarter from traditional seasonal boats, like pontoons and towboats, two categories that lagged earlier in the year. Geographically, we saw positive trends in most markets with particular strength in Florida and the Midwest. Gross profit of $204 million was up $7 million from last year, while gross margin was down year-over-year to 34.3%. As expected, product margins moderated as inventory levels in the industry have increased. Generally, product margins approach pre-pandemic levels while our consolidated margins remain in the mid-30s. As Brett said, the strength of our consolidated margins is a testament to our strategy of adding higher margin businesses. SG&A expenses were up 16% to $169 million. Well over half the dollar increase was from the IGY, Midcoast, BoatZone, and CNC acquisitions we completed this year. However, we did see increases from various categories such as health insurance, property insurance, inventory maintenance, and marketing, to name a few. Clearly, some of the costs drove top-line growth, but as Brett mentioned, we are exploring various opportunities to improve synergies internally as well as areas for cost savings while not impacting the experience of the customer. Interest expense increased by $14.8 million, reflecting rising interest rates increased inventory, and higher long-term debt associated with IGY. Given the increase in rates, floor plan interest was incrementally higher than we expected. On the bottom line, we generated gap net income of more than $15 million, or $0.67 per diluted share, compared with net income of $38.4 million, or $1.73 per diluted share last year. Our adjusted EBITDA for the quarter was $43 million, compared with $68 million last year, primarily due to lower net income and higher floor plan interest expense, which accounted for nearly $8 million of the difference. For the full year, GAAP net income was $109 million, or $4.87 per diluted share, and we generated adjusted net income of $117 million, or $5.21 per diluted share. in line with our guidance. Our full year adjusted EBITDA was in line with guidance at $239 million compared with $310 million last year, with floor plan interest expense accounting for roughly $25 million of the difference. Our balance sheet remains healthy as we ended the year with more than $200 million in cash. Inventories at year end increased to $813 million, which as expected was up sequentially from June. On a same-store basis, unit inventories are in the neighborhood of down a little over 30% compared with September 2019 levels. Looking at liabilities, our short-term borrowings, which is our floor plan financing, rose largely due to increased inventories and the timing of payments. As expected, customer deposits declined sequentially from June to $82 million, reflecting our ability to better meet demand as inventory becomes available. Our liquidity position remains strong. At year end, debt to EBITDA net of cash was less than one. We have additional liquidity in the form of unlevered inventory plus available lines of credit that totaled approximately $200 million. Turning to guidance, I will comment first on our thoughts regarding the industry unit trends for our fiscal year 2024. For many months of the upcoming year, the year-over-year unit trends are relatively easy comparisons in terms of the industry's ability to post either unit growth or a minimal decline. Assuming no significant economic downturn, but also no major improvements, we believe the industry will be flattish to up slightly in our fiscal year. We also believe that the premium end will continue to outperform price point segments. We expect the industry to be back in full seasonal mode for all of fiscal 2024. This means the December quarter will be by far the smallest quarter of the year, followed by seasonally stronger quarters through the selling season. We also expect inventory to modestly build seasonally as it has historically. Based on our industry unit expectations, we expect low to mid single digit same store sales growth in 2024. At the same time, we do expect product margins to moderate as we continue to reap the long-term benefits of the higher margin strategy we have successfully executed. It's also worth noting that in the December 22 and March 23 quarters, we had lower interest costs driven by lower rates and lower inventory than we will have in the same quarters this fiscal year. Factoring all this in, we expect our adjusted net income per share to be in the range of $4.50 to $5 per diluted share for fiscal 2024, with adjusted EBITDA to be in the range of $225 million to $250 million. Higher depreciation and stock-based compensation, as well as additional shares in the denominator, adversely impacts EPS versus adjusted EBITDA. We are using an expected tax rate of approximately 27% and a share count of 23.1 million shares in our assumptions. Looking at current trends, October last year was aided by boats that pushed from September due to Hurricane Ian. This year, October currently looks to be flattish to that strong comparison as people continue to seek the boating lifestyle. With that, I'll turn the call back over to Brett for closing comments. Brett?
spk11: Thanks, Mike. Despite a challenging market environment, we executed well in fiscal 2023, delivering record revenue and strong gross margins. While the retail boating industry continues to see a return to historical seasonality, our diversified revenue stream and our position in the premium segment of the retail market creates a sustainable competitive advantage for MarineMax. Our strategic initiatives over the past several years continues to improve our long-term margin profile and generate new growth opportunities. MarineMax is a diversified global marine company providing an international customer base with the products, services, and experiences to enrich their journey on the water. We remain committed to maintaining MarineMax's financial strength and building long-term shareholder value. by pursuing opportunities to drive profitable growth. And with that, operator, let's open up the call for questions.
spk04: Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, in the interest of time, please limit yourself to one question and a follow-up. Our first question comes from James Hardiman with Citi. Please go ahead.
spk02: Hey, good morning. Thanks for taking my call. So Mike, you talked about the comparisons. Maybe walk us through, it seems like maybe the December quarter should, you know, should see maybe the best growth of the year. Maybe that's, it's easiest to predict because it's most current. But that full year loaded mid single digit, same store sales. How do you think about that progression over the course of the year?
spk12: Yeah, great question, James. For sure, from an industry perspective, the December quarter does appear to be the easiest comparison with the unit declines on a year-over-year basis. But even if you go all the way into January, February, March, April, and even into May, the comparisons are relatively easy. Then they're mixed when you go through the rest of our fiscal year, June, July, August, and September. As I said on the call, it sure seems like absent a recession, many of those months have the ability to post positive unit gains. Historically, if the industry has unit growth, we traditionally outperform the industry. Then you get a migration of average unit selling price, which is kind of the basis of our same-store sales growth for 2020 forward.
spk02: Got it. That's helpful. And then on the inventory question, I think you touched on a little bit of this in the prepared remarks, but can you just bridge last year's inventory number and this year's inventory number, specifically as we think about sort of acquired inventory, but then also units versus dollars. And as we think about how you're thinking about ordering patterns and inventory going forward, Are we at a place where you would generally think about a unit in and a unit out, right, wholesale, equaling, retail? Or do you anticipate lowering inventories on a like-for-like basis or building inventories on a like-for-like basis?
spk12: So let me try to take all those questions if I can remember them. On a year-over-year basis, there really isn't a whole lot of acquired growth in terms of acquisitions. The CNC acquisition was a smaller one, so there's some from that. A little bit, I guess, in terms of the balance sheet inventory from IGY that has fuel and stuff like that, but the bulk of the growth is just building of inventories from last year, which was a relatively low level. skewed by dollar growth, quite frankly. So as I said, the units on the same store basis are still down 30% from 2019 levels. You know, it's probably not surprising that we have some categories and some areas that are heavier in inventory than we necessarily need. You've seen what's gone on in the industry with pontoons and tows. Towboats, we're working very closely with all of our manufacturers in those categories, and they're all very receptive to the dialogue about, you know, products that we need and how we're trying to get inventories in line. But likewise, there's categories where we're still pretty far below and where we need product and some of the real premium, larger center console outboards and even some of the larger product that we sell. So it's an interesting time right now. The industry is rebuilding to some level of healthy inventory. All the dealers are trying to stay at a very healthy inventory. Actually, I think all the manufacturers are recognizing that it's important to stay at that level too. So While we'll probably have some seasonal build, I think we'll be in a pretty good place overall from a unit inventory perspective as we go through 2024.
spk02: Got it. So your base case is effectively wholesale equals retail from a unit perspective over the next year.
spk12: You know, I actually think in some categories it's probably not the case where we need product. But certainly, and not to speak out of both sides of my mouth, there's other categories where, yeah, we need to retail, you know, more than we're bringing in in time periods. And some of the categories have been softer during the year.
spk09: Got it.
spk02: That's helpful.
spk09: Appreciate it. Thanks, James.
spk04: Thank you. Our next question comes from Drew Crump. But Steve, please go ahead.
spk05: Okay, thanks. Hey, guys. Good morning. So on your fiscal 24 guidance, this is at a high level. Can you comment on what type of macroeconomic outlook you're assuming? In other words, does your forecast embed a recession scenario or any other incremental macro headwinds? And then I have a follow-up.
spk12: No, Drew, that's actually a good question. We're not embedding a recession in our forecast. We commented that generally status quo to what we've been experiencing over the last couple of quarters on a go-forward basis. You look at how we ended fiscal 2024, which was a real strong close to the year, and we were up against pretty tough comparisons in the September quarter of last year. We had 11% same-store sales growth, and we posted 8% same-store sales growth this quarter. So it's clear the the number of people that are still seeking the voting lifestyle is fairly active out there, you know, through our fourth quarter.
spk05: Got it. Okay. And then just maybe a housekeeping item. Can you tell us where maintenance, repair, storage, and P&A revenue ended up for the quarter and the year? And, you know, on a related note, as you think about adjusted gross margin and its impact, on fiscal 24, do you see this line sustaining in the mid-30s range, or is it reasonable to assume that it slips a little bit year on year?
spk12: Thanks.
spk05: Good questions.
spk12: On a revenue mix perspective, new and used boat sales were around 75% of our mix for Q4, but for the full year, they're down to around 72%. The higher margin businesses actually have grown, as we expected they would, to around 28% for all of fiscal 2023. And then on your last point about margins, I did not comment as to what we really think margins are going to do for 2024, but we do think product margins on the full-year basis will moderate some. as they did in the fourth quarter, the quarter we just ended. But we think overall we'd still say consolidated margins are going to be in that mid-30 range. I realize mid is a range of numbers, but we'll be in the mid-30 range for 2024. We do expect growth in finance and insurance, service, other higher margin categories that we have within our numbers, which is traditionally what's happened over time.
spk05: Okay, very helpful. Thanks, guys.
spk09: Thanks, Chris.
spk04: Thank you. Our next question comes from Joe Altabello with Raymond James. Please go ahead.
spk06: Hey, guys. Good morning. Appreciate your question. I guess first I wanted to follow up, Mike, on your commentary there regarding margins. With respect to promotional activity, where do we stand today versus 2019? It seems like things heat up quite a bit during the summer. So would you expect that to continue, or has your premium category been a little bit more immune to some of those promotional pressures?
spk12: I would comment that the promotional activity seems to be back in the industry at reasonable levels, probably still not quite as aggressive overall. There are some categories that are certainly back to historic times, but I'd say in general promotional activities have been back now for sure the last, two quarters, starting maybe in the March quarter. Mike, go ahead.
spk11: A lot of new model innovations continue to come out by all these different manufacturers, and that really helps preserve margin as well because you're introducing new products and new innovations. That's really helped as well.
spk06: Got it. And maybe just to follow up on that, in terms of the credit environment, are you seeing lenders getting a little more cautious with respect to you know, consumer loans? And have you seen the percentage of cash buyers in your business pick up at all? Good question, Joe.
spk12: We get that, you know, several times a year. And really the way the banks look at the credit worthiness of the buyers really hasn't changed. Obviously the rate environment has changed. You know, there was a period in this year where we certainly saw the percentage of cash buyers ticking up. But really, the last couple of quarters, it seems like the public maybe is getting a little – they don't like the rates, but they're a little more accustomed to the rates perhaps. And the percentage of cash buyers is receding. It's still a little higher than it would have otherwise been, but receding.
spk09: Got it.
spk04: Thank you.
spk09: Thank you.
spk04: Thank you. Our next question comes from Brandon Rolla with DA Davidson. Please go ahead.
spk10: Good morning. Thank you for taking my question. Just a quick one on your higher margin businesses. Could you talk about your outlook for growth and some of your higher margin categories throughout fiscal year 24?
spk12: The outlook for growth, so generally when you have relatively lower same-store sales growth, which is what our forecast is, it gives those higher margin businesses a chance to catch up, quite frankly. And over the last three or four years, we've had some pretty good same-store sales growth in different periods where the base of the revenue got to a certain level where those other businesses have been trying to catch up. And when you have back-to-back years like 2023 and 2024 with relatively low same-store sales growth, finance and insurance, service, brokerage, other portions of our store operations that are in the higher margin businesses have a have a chance to catch up, not to mention the ability of Northrop and Johnson and Frazier and IG Wire and the other businesses we own to also continue to grow in 2024. Demand in the service side of the business seems really strong still.
spk11: A lot of people, parts and accessories, and then, you know, marina revenue and marina slips at all of our locations. It's hard to find a flip and rates are holding strong.
spk10: Great. Just one follow-up. You guys are reporting from the Fort Lauderdale show. Any early takeaways from what you've seen in terms of demand? I know it just started yesterday, but any early takeaways? Thank you.
spk11: Yeah, great traffic at the show for a first day. A little breeze helped the weather, so that's good. But, yeah, generally seems good. That very first day is always hard to get a good full read until you get deep into the weekend. But generally, I think it's a good feel at the show.
spk09: Great. Thank you. Thanks, Brian.
spk04: Thank you. Our next question comes from Eric Wald with B.E. Riley Securities. Please go ahead.
spk03: Thanks. Good morning. Just a couple questions. I guess one, you talked about your M&A pipeline being robust. Maybe talk about where you're seeing opportunities, obviously we're not getting specific, you know, kind of what areas you're looking at. What does the competitive environment look for those acquisitions? I know it's getting, it's, it's, it's increased recently, but what do you see as a competitive wise when you're looking at targets and maybe who else is involved in there? Is there a lot of other parties you tend to still be the only one at the table?
spk12: I can start off and make it a comment. I mean, the types of companies that we're looking at are consistent really with what we've looked at in the past to a degree there's dealerships. We were really focused on higher margin dealerships though, which would be those with a, storage component, good management, good brands, all of that. And so we're still in discussions with dealerships. We still are looking at the super yacht services sector. We acquired AGY to begin this fiscal year, which is a great business. Actually an important business to help grow our overall business in Greece. Marinas in the U.S. and also internationally where they make sense and where they have a reasonable return for a company like us. and just other businesses that are involved in marine that have a higher margin profile with a good team and a good strategy that makes sense to kind of bring into our family.
spk03: And a competitive environment for those?
spk12: You know, obviously when you're talking about marinas, there's competition. a lot of people around the world that are attracted to marinas. With the dealerships that we're looking at in terms of the premium end and the relationships, usually it's not a very competitive environment. It's usually, you know, we've known the folks for a long, long time. This is the case. It's always been this way. And same with some of the other businesses where we've developed a reputation as a good place for a team and a company to belong and to become a part of Whereas in some of these acquisitions where we're talking to companies, there's not a crowded field of people that we're talking to or that are also talking to them.
spk03: Dan, a follow-up question. Obviously, you noted a lot of pressure from higher interest rates and interest costs in the floor plan. If you think back to kind of where you were a couple years ago in the midst of the pandemic, you actually got – you used your cash balance. It takes floor plan financing basically down – or floor plan balance basically down to $0. You're sitting on a healthy cash balance now, and you have been for the past few quarters, $200 million. What's the appropriate level of cash to keep on hand relative to what you want to have levered through floor plan on the inventory side?
spk12: Good question, Eric. Obviously, you can imagine, we're a net debtor, and actually we have been for most of our 26 years that we've been public. As a net debtor, throughout the quarters, this is not a surprise probably to anybody on the phone, Our cash is zero. We pay down our floor plan and save all the interest on that. And then at quarter end, like every other company does, we add the cash to the balance sheet so everybody realizes we have a lot of liquidity, which we do. But we're paying down debt every single day all the time except for right at quarter end. So we're taking advantage of the cash that we've generated.
spk09: Got it. Well, thanks, Mike. Thank you, Eric.
spk04: Thank you. Our next question comes from the line of Michael Swartz with Truist Securities. Please go ahead.
spk08: Hey, guys. Good morning. This is Lucas. I'm from Mike. Could you talk a little bit about your expected cadence of average selling price in fiscal 24?
spk12: Yeah, in 2024, overall in the guidance, we commented that we expect the industry to have, you know, call it modest unit growth, flattest to slight unit growth. and we would have low single-digit to maybe as much as mid-single-digit same-store sales growth, you can assume that the same-store sales growth is roughly 50-50 between maybe units and AUP or could lean more towards AUP. We've had nice AUP growth for a number of years, and with the new models that Brett talked about and with what our manufacturing partners are providing, there's great product. They tend to have more options and also maybe a little bit on the larger side and the more premium side, which does drive the AUP, you know, higher over time.
spk08: Okay, perfect. And then just you also commented on driving savings in SG&A. Any additional colors to share there? Maybe some quantification or where it's coming from? That's all I had.
spk12: Thank you. No, you know, the commentary and the script are we're – digging in and analyzing opportunities for savings. I will comment we did have in the quarter a handful of categories that increased slightly. One was up more than slightly. That was health care insurance, just a number of unfortunate claims that hit our stock loss maximums. But, no, we're digging into things and trying to see where we can get some synergies in the organization and also some potential cost savings, but we don't have an answer today.
spk08: Okay, thank you, that's all I have.
spk09: Thank you.
spk04: Thank you. Our next question comes from the line of John Healy with North Coast Research. Please go ahead.
spk01: Thanks for taking my question, guys, and congrats on the strong close of the year. Just one question for me, just on the SG&A side. I think you mentioned during the prepared remarks that you're looking at some opportunities there to improve the customer experience, or you're looking at SG&A opportunities. outside of things that would impact the customer experience. Is there a way you can maybe textualize that a bit for us, kind of maybe what some of the bigger opportunities are there, how much runway there is on that? And is it more in the traditional business or is it more on the marina side and some of these kind of adjacencies that you've extended to recently?
spk11: Yeah, I'll comment first just at a high level. There's clearly an opportunity with our super yacht, IGY, and that segment to create more synergy, which does cost-saving synergies in a lot of cases, which we're digging into aggressively right now. And then just from the day-to-day operations of all of our stores that have been around a long time, there's always things to dig into. But there is inflation in all of that, which is some of that can be mitigated and some can't. Mike, you want to?
spk12: No, that was good. We don't have all the answers today, but generally where Brett just said is what we're looking into.
spk09: Great. Thank you. Thank you.
spk04: Our next question comes from the line of David McGregor with Longbow Research. Please go ahead.
spk11: morning this is joe nolan on for david i just have a one quick one for you guys just wondering about the used boat market just wondering what you guys are seeing in terms of values and in terms of demand there yeah you know used boat markets uh strong holding up well um you know don't see any significant you know wild action on price changes pricing's holding up well you know in the marketplace new boats are higher and higher in prices. So that helps. So it's been a good part of our business and, uh, continue to focus on it.
spk07: And any notable trends within mix within the use boat market?
spk12: No, not that I can, uh, call out, you know, for us, our use boats are just the trades that we're taking. We don't speculatively buy a ton of use boats. Uh, And there was a time period over the last couple of years where there just wasn't a whole lot of people trading votes in. And it's nice that we're getting some additional trades now. And we expect that business is going to be sort of back to historical performance levels going forward.
spk09: Got it.
spk12: All right.
spk07: That's all for me. Thanks.
spk09: Thank you.
spk04: Thank you. As there are no further questions, I will now hand the conference over to Mr. Brett McGill. for closing comments.
spk11: Well, thank you, everybody, for joining us today, and we'll update you on our next call. If you're in the Lauderdale area, please come on down to the show and take a look at some of the great products we have.
spk09: Talk to you soon.
spk04: Thank you. The conference of MarineMax, Inc. has now concluded. Thank you for your participation. You may now disconnect your lines.
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