Profile: MarineMax, Inc (HZO)

Marinemax, Inc., incorporated in January 1998, is a recreational boat dealer in United States. Through 55 retail locations in Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Maryland, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, Tennessee and Texas, the Company sells new and used recreational boats, including pleasure and fishing boats. The Company also sells related marine products, including engines, trailers, parts and accessories. In addition, the Company arranges related boat financing, insurance and extended service contracts; provide repair and maintenance services; offer boat and yacht brokerage services, and offer slip and storage accommodations. The Company is also a dealer for Hatteras Yachts throughout the state of Florida (excluding the Florida panhandle) and the states of New Jersey, New York and Texas; the dealer for Cabo Yachts throughout the states of Florida, New Jersey and New York; the dealer for Boston Whaler in many of its markets, including its locations in the states of New York, North Carolina and portions of the states of Florida, California and Texas; and the exclusive dealer for Meridian Yachts in its geographic markets. In addition, the Company is a dealer for Italy-based Azimut-Benetti Group for Azimut and Atlantis mega-yachts, yachts and other recreational boats for the Northeast United States from Maryland to Maine and the state of Florida.

New Boat Sales

The products the Company offer are manufactured by Brunswick, the manufacturer of recreational boats, including Sea Ray pleasure boats, Boston Whaler fishing boats, Cabo Yachts, Hatteras Yachts and Meridian Yachts. The Company manufactures motor yachts, convertibles, pleasure boats and fishing boats. The motor yacht product lines include designs with live-aboard luxuries. Hatteras Yachts offers a flybridge with guest seating; covered aft deck, which may be fully or partially enclosed, providing the boater with additional living space; an elegant salon, and multiple staterooms for accommodations. Azimut yachts are known for their Americanized open layout.

Hatteras Yachts and Cabo Yachts are the convertible yacht builders and offer designs with live-aboard luxuries. Convertibles are fishing vessels, which are equipped to meet the needs of even the most serious tournament-class competitor. Hatteras features interiors that offer salon/galley arrangements, multiple staterooms with private heads, and a cockpit that includes a bait and tackle center, fishbox, and freezer. Cabo is known for spacious cockpits and accessibility to essentials, such as bait chests, livewells, bait prep centers and tackle lockers.

Sea Ray and Meridian pleasure boats target both the luxury and the family recreational boating markets and come in a range of configurations to suit each customer’s particular recreational boating style. Sea Ray sport yachts and yachts serve the luxury segment of the recreational boating market and include living accommodations with a salon, an equipped galley and multiple staterooms. Sea Ray sport yachts and yachts are available in cabin, bridge cockpit and cruiser models. Meridian sport yachts and yachts are available in sedan, motor yacht and pilothouse models.

The fishing boats the Company offer, such as Boston Whaler and Grady White, 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 feature livewells, in-deck fishboxes, rodholders, rigging stations, cockpit coaming pads, and fresh and saltwater washdowns.

Used Boat Sales

The Company sells used versions of the new makes and models it offer and to a lesser extent, used boats of other makes and models taken as trade-ins. The Company acquires all of its used boats through customer trade-ins. In addition, the Company’s entire used boat inventory is posted on its Website, www.MarineMax.com, which expands the awareness and availability of its products to a large audience of boating enthusiasts.

Marine Engines, Related Marine Equipment and Boating Accessories

The Company offers marine engines and propellers, all of which are manufactured by Mercury Marine, a division of Brunswick. The Company sells marine engines and propellers to retail customers as replacements for their existing engines or propellers. Mercury Marine has introduced a range of engine models that reduce engine emissions to comply with current Environmental Protection Agency requirements. The Company also sells related marine parts and accessories, including oils, lubricants, steering and control systems, corrosion control products, engine care, maintenance and service products (primarily Mercury Marine’s Quicksilver line); high-performance accessories (such as propellers) and instruments, and a complete line of boating accessories, including life jackets, inflatables and water sports equipment. The Company also offers novelty items, such as shirts, caps and license plates bearing the manufacturer’s or dealer’s logo.

Maintenance, Repair and Storage Services

The Company provides maintenance and repair services at its retail locations. In addition, in many of its markets, the Company provides mobile maintenance and repair services at the location of the customer’s boat. The Company’s perform both warranty and non-warranty repair services, with the cost of warranty work reimbursed by the manufacturer in accordance with the manufacturer’s warranty reimbursement program. At many of its locations, the Company offers boat storage services, including in-water slip storage, and inside and outside land storage. These storage services are offered at competitive market rates and include in-season and winter storage.

F&I Products

At each of the Company’s retail locations, the Company offers its customers the ability to finance new or used boat purchases and to purchase extended service contracts and arrange insurance coverage, including boat property, credit life and accident, disability, and casualty insurance coverage (collectively F&I). The Company also offers third-party extended service contracts. The Company also is able to assist its customers with the opportunity to purchase credit life insurance, accident and disability insurance, and property and casualty insurance. Credit life insurance policies provide for repayment of the boat financing contract if the purchaser dies while the contract is outstanding. Accident and disability insurance policies provide for payment of the monthly contract obligation during any period in which the buyer is disabled. Property and casualty insurance covers loss or damage to the boat.

Brokerage Services

Through employees or subcontractors that are licensed boat or yacht brokers, the Company offers boat or yacht brokerage services at its retail locations. The Company’s maintenance and repair services, including mobile service, also are available to the Company’s brokerage customers.