What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-02-01 compared with 2021-07-27 · 63 added, 76 removed, 97 unchanged (59% of the section changed)

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Actual results could differ materially from those currently anticipated as a result of a number of factors, including those set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021.

In March 2020, the outbreak of COVID-19 caused by a novel strain of the coronavirus was recognized as a pandemic by the World Health Organization, and the outbreak is widespread throughout the United States (including Florida in which we generated approximately 54% of our revenue during both fiscal 2019 and 2020), and in other countries in which we operate.

In March 2020, the outbreak of COVID-19 caused by a novel strain of the coronavirus was recognized as a pandemic by the World Health Organization, and the outbreak is widespread throughout the United States (including Florida in which we generated approximately 54% and 50% of our revenue during fiscal 2020 and 2021, respectively), and in other countries in which we operate.

As a result, from March 2020 through June 2020, we temporarily closed certain departments or locations based on guidance from local government or health officials.

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Our experienced teams continue to engage with customers virtually and in our stores to help customers select their boats and obtain appropriate services.

We are the largest recreational boat and yacht retailer in the United States with fiscal 2020 revenue above $1.5 billion.

We believe we are the largest recreational boat and yacht retailer and superyacht services company in the world.

Through our current 79 retail locations in 21 states, we sell new and used recreational boats and related marine products, including engines, trailers, parts, and accessories.

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offer yacht and boat brokerage sales;

and, where available, offer slip and storage accommodations, as well as the charter of power yachts in the British Virgin Islands.

and, where available, offer slip and storage accommodations.

In the British Virgin Islands we offer the charter of catamarans, through MarineMax Vacations.

We also own Fraser Yachts Group, a leading superyacht brokerage and luxury yacht services company with operations in multiple countries.

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In May 2021, we purchased all of the outstanding equity of Cruisers Yachts.

Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufactures boats and yachts with sales through our select retail dealership locations and through independent dealers, and is recognized as one of the world’s premier manufacturers of premium yachts.

Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufactures sport yacht and yachts with sales through our select retail dealership locations and through independent dealers, and is recognized as one of the world’s premier manufacturers of premium sport yacht and yachts.

In July 2021, we acquired Nisswa Marine, a full-service dealer located in Minnesota.

In November 2021, we acquired Intrepid, a premier manufacturer of powerboats, and Texas MasterCraft, a premier watersports dealer in Northern Texas.

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.

Since the initial acquisitions in March 1998, we have acquired 31 recreational boat dealers, four boat brokerage operations, two full-service yacht repair operations, and one manufacturer.

As a part of our acquisition strategy, we frequently engage in discussions with various recreational boat dealers regarding their potential acquisition by us.

Since the initial acquisitions in March 1998, we have acquired 32 recreational boat dealers, four boat brokerage operations, two full-service yacht repair operations, and two boat and yacht manufacturers.

As a part of our acquisition strategy, we frequently engage in discussions with various potential acquisition targets regarding their potential acquisition by us.

Potential acquisition discussions frequently take place over a long period of time and involve difficult business integration and other issues, including, in some cases, management succession and related matters.

As a result of these and other factors, a number of potential acquisitions that from time to time appear likely to occur do not result in binding legal agreements and are not consummated.

We completed two acquisitions in the fiscal year ended September 30, 2019, two acquisitions in fiscal 2020, and three acquisitions to date in fiscal 2021.

We completed three acquisitions in the fiscal year ending September 30, 2021 and two acquisitions to date in fiscal 2022.

General economic conditions and consumer spending patterns can negatively impact our operating results.

Unfavorable local, regional, national or global economic developments or uncertainties regarding future economic prospects could reduce consumer spending in the markets we serve and adversely affect our business.

Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated approximately 54% of our revenue during both fiscal 2019 and 2020, can have a major impact on our operations.

Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated approximately 54% and 50% of our revenue during fiscal 2020 and 2021, respectively, can

have a major impact on our operations.

Local influences, such as corporate downsizing, military base closings, and inclement weather such as hurricanes and other storms, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico in 2010, also could adversely affect, and in certain instances have adversely affected, our operations in certain markets.

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Retail Operations and Product Manufacturing.

See Note 17 of the Notes to Unaudited Condensed Consolidated Financial Statements.

The Retail Operations segment includes the activity of our current 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.

See Note 18 of the Notes to Unaudited Consolidated Financial Statements.

As of December 31, 2021, 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.

We also sell related marine products, including engines, trailers, parts, and accessories.

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we arrange related boat financing, insurance, and extended service contracts;

we offer boat and yacht brokerage sales;

yacht charter services;

and we operate a yacht charter business in the British Virgin Islands.

We also own Fraser Yachts Group and Northrop & Johnson, leading superyacht brokerage and luxury yacht services companies with operations in multiple countries.

The Product Manufacturing segment includes activity of Cruisers Yachts, a wholly-owned MarineMax subsidiary, manufacturing boats 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 yachts, producing models from 33’ to 60’ feet.

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.

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 December 31, 2021, the Product Manufacturing segment includes activity of Cruisers Yachts and Intrepid.

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, also a wholly-owned MarineMax subsidiary, is recognized as a world class producer of customized boats, carefully reflecting the unique desires of each individual owner.

Intrepid follows a direct-to-consumer distribution model and has received many awards and accolades for its innovations and high-quality craftsmanship that create industry leading products in their categories.

Application of Critical Accounting Policies

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Consolidated Results of Operations

The following discussion compares the three and nine months ended June 30, 2021, with the three and nine months ended June 30, 2020 and should be read in conjunction with the unaudited condensed consolidated financial statements, including the related notes thereto, appearing elsewhere in this report.

Three Months Ended June 30, 2021 Compared with Three Months Ended June 30, 2020

Revenue increased $168.0 million, or 33.7%, to $666.3 million for the three months ended June 30, 2021, from $498.3 million for three months ended June 30, 2020.

The increase was due to a net increase of $28.5 million or 5.7% in comparable-store sales and an increase of $139.5 million from stores opened, stores closed, and acquisitions that are not eligible for inclusion in

the comparable-store base for the full period.

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.

The following discussion compares the three months ended December 31, 2021, with the three months ended December 31, 2020 and should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements, including the related notes thereto, appearing elsewhere in this report.

Three Months Ended December 31, 2021 Compared with Three Months Ended December 31, 2020

Revenue increased $61.2 million, or 14.9%, to $472.7 million for the three months ended December 31, 2021, from $411.5 million for three months ended December 31, 2020.

Of this increase, $36.6 million was attributable to an 8.9% increase in comparable-store sales and a $24.6 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 and Cruisers Yachts manufacturing revenue which were not included in comparable retail store sales.

The increase in our comparable-store sales was primarily due to demand driven increases in new boat revenue and growth in our higher margin finance, insurance, brokerage, parts, service, storage services, and superyacht services revenue.

Gross Profit.

Gross profit increased $81.2 million, or 65.7%, to $204.7 million for the three months ended June 30, 2021, from $123.5 million for the three months ended June 30, 2020.

Gross profit as a percentage of revenue increased to 30.7% for the three months ended June 30, 2021 from 24.8% for the three months ended June 30, 2020 .

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 additional sales by Northrop & Johnson (which typically carry higher margins), as a percentage of sales.

The increase in gross profit dollars was primarily attributable to increased new boat sales.

Gross profit increased $43.8 million, or 35.5%, to $167.2 million for the three months ended December 31, 2021, from $123.4 million for the three months ended December 31, 2020.

Gross profit as a percentage of revenue increased to 35.4% for the three months ended December 31, 2021 from 30.0% for the three months ended December 31, 2020 .

The increase in gross profit as a percentage of revenue was primarily the result of demand driven price increases resulting in greater boat margins and increases in our higher margin revenue as noted above, as a percentage of sales.

The increase in gross profit dollars was primarily attributable to increased new boat sales and our higher margin businesses.

Selling, General, and Administrative Expenses.

Selling, general, and administrative expense increased $49.0 million, or 65.5%, to $123.8 million for the three months ended June 30, 2021, from $74.8 million for the three months ended June 30, 2020.

Selling, general, and administrative expenses as a percentage of revenue increased to 18.6% for the three months ended June 30, 2021 from 15.0% for the three months ended June 30, 2020.

Selling, general, and administrative expenses increased $28.6 million, or 31.3%, to $120.0 million for the three months ended December 31, 2021, from $91.4 million for the three months ended December 31, 2020.

Selling, general, and administrative expenses increased as a percentage of revenue to 25.4% for the three months ended December 31, 2021 from 22.2% for the three months ended December 31, 2020.

The increase in selling, general, and administrative expenses was driven by an increase in mix to our higher margin businesses, which typically carry a higher expense structure, and acquisitions.

Interest Expense.

Interest expense decreased $1.5 million, or 71.4%, to $0.6 million for the three months ended June 30 , 2021, from $2.1 million for the three months ended June 30 , 2020.

Interest expense as a percentage of revenue decreased to 0.1% for the three months ended June 30 , 2021 from 0.4% for the three months ended June 30 , 2020.

Interest expense decreased $0.7 million, or 53.8%, to $0.6 million for the three months ended December 31 , 2021, from $1.3 million for the three months ended December 31 , 2020.

Interest expense as a percentage of revenue decreased to 0.1% for the three months ended December 31 , 2021 from 0.3% for the three months ended December 31 , 2020.

The decrease in interest expense was primarily the result of decreased borrowings.

Income Taxes.

Income tax expense increased $9.1 million, or 78.4%, to $20.7 million for the three months ended June 30 , 2021, from $11.6 million for the three months ended June 30 , 2020.

Our effective income tax rate increased to 25.7% for the three months ended June 30 , 2021, from 24.9% for three months ended June 30 , 2020.

The increase in the effective income tax rate was primarily attributed to minor changes in the allocation of pre-tax income between taxing jurisdictions.

Nine Months Ended June 30, 2021 Compared with Nine Months Ended June 30, 2020

Revenue increased $490.0 million, or 44.1%, to $1.601 billion for the nine months ended June 30, 2021, from $1.111 billion for the nine months ended June 30, 2020.

The increase was due to a net increase of $230.3 million or 20.7% in comparable-store sales and an increase of $259.7 million from stores opened, stores closed, and acquisitions that are not eligible for inclusion in the comparable-store base for the full period.

The increase in our comparable-store sales was primarily due to demand driven increases in new and used boat revenue and our higher margin finance and insurance products, brokerage, parts, service, and storage services.

Gross Profit.

Gross profit increased $202.7 million, or 71.8%, to $484.9 million for the nine months ended June 30, 2021, from $282.2 million for the nine months ended June 30, 2020.

Gross profit as a percentage of revenue increased to 30.3% for the nine months ended June 30, 2021 from 25.4% for the nine months ended June 30, 2020 .

The increase in gross profit dollars was primarily attributable to increased new and used boat sales.

Selling, General, and Administrative Expenses.

Selling, general, and administrative expense increased $110.8 million, or 53.2%, to $319.1 million for the nine months ended June 30, 2021, from $208.3 million for the nine months ended June 30, 2020.

Selling, general, and administrative expenses as a percentage of revenue increased to 19.9% for the nine months ended June 30, 2021 from 18.7% for the nine months ended June 30, 2020.

The increase in selling, general, and administrative expenses was driven by an increase in mix to our higher margin businesses which typically carry a higher expense structure and acquisitions.

Interest Expense.

Interest expense decreased $5.5 million, or 64.7%, to $3.0 million for the nine months ended June 30 , 2021, from $8.5 million for the nine months ended June 30 , 2020.

Interest expense as a percentage of revenue decreased to 0.2% for the nine months ended June 30 , 2021 from 0.8% for the nine months ended June 30 , 2020.

The decrease in interest expense was primarily the result of decreased interest rates and decreased borrowings.

Income Taxes.

Income tax expense increased $24.2 million, or 147.6%, to $40.6 million for the nine months ended June 30 , 2021, from $16.4 million for the nine months ended June 30 , 2020.

Our effective income tax rate decreased to 24.9% for the nine months ended June 30 , 2021, from 25.1% for the nine months ended June 30 , 2020.

The decrease in the effective income tax rate was primarily attributed to excess equity compensation for tax purposes.

Income tax expense increased $3.5 million, or 49.3%, to $10.6 million for the three months ended December 31, 2021, from $7.1 million for the three months ended December 31 , 2020.

Our effective income tax rate decreased to 22.8% for the three months ended December 31 , 2021, from 23.2% for three months ended December 31 , 2020.

The decrease in the effective income tax rate was primarily attributed to benefits from stock-based compensation.

Liquidity and Capital Resources

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We regularly monitor the aging of our inventories and current market trends to evaluate our current and future inventory needs.

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.

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 Credit Facility (described below).

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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 Credit Facility and therefore our ability to utilize the Credit Facility to fund operations.

As of June 30, 2021, we were in compliance with all covenants under the Credit Facility.

As of December 31, 2021, we were in compliance with all covenants under the Credit Facility.

We currently depend upon dividends and other payments from our dealerships and the Credit Facility to fund our current operations and meet our cash needs.

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 nine months ended June 30, 2021 and 2020, cash provided by operating activities was approximately $329.6 million and $221.3 million, respectively.

For the nine months ended June 30, 2021, cash provided by operating activities was primarily related to decreases in inventory (excluding acquisitions), increases in contract liabilities (customer deposits), increases in accrued expenses and other liabilities, and our net income adjusted for non-cash expenses such as depreciation and amortization expense, stock-based compensation expense, and deferred income tax provision, partially offset by increases in accounts receivable, decreases in accounts payable, and increases in prepaid expenses and other assets.

For the nine months ended June 30, 2020, cash provided by operating activities was primarily related to decreases in inventory, increases in accrued expenses and other liabilities, increases in contract liabilities (customer deposits), increases in accounts payable, and our net income adjusted for non-cash expenses such as depreciation and amortization expense, stock-based compensation expense, and deferred income tax provision, partially offset by increases in accounts receivable, and increase in prepaid expenses and other assets.

For the nine months ended June 30, 2021 and 2020, cash used in investing activities was approximately $131.1 million and $7.2 million, respectively.

For the nine months ended June 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 nine months ended June 30, 2020, cash used in investing activities was primarily used to purchase property and equipment associated with improving existing retail facilities, and for acquisitions, partially offset by proceeds received from the sale of property and equipment.

For the nine months ended June 30, 2021 and 2020, cash used in financing activities was approximately $154.1 million and $165.9 million, respectively.

For the nine months ended June 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 nine months ended June 30, 2020, cash used in financing activities was primarily attributable to net payments for short-term borrowings , and payments on tax withholdings for equity awards, partially offset by net proceeds from issuance of common stock under incentive compensation and employee purchase plans .

In July 2021, we entered into an Amended and Restated Loan and Security Agreement (the “Credit Facility”), with Wells Fargo Commercial Distribution Finance LLC, M&T Bank, Bank of the West, and Truist Bank.

For the three months ended December 31, 2021, cash provided by operating activities was approximately $8.1 million.

For the three months ended December 31, 2020, cash used in operating activities was approximately $12.8 million.

For the three months ended December 31, 2021, cash provided by operating activities was primarily related to increases in contract liabilities (customer deposits), decreases in accounts receivable, and our net income adjusted for non-cash expenses such as depreciation and amortization expense and stock-based compensation expense, partially offset by increases in inventory and decreases in accrued expenses and other liabilities.

For the three months ended December 31, 2020, cash used in operating activities was primarily related to increases in inventory, decreases in accounts payable, and decreases in accrued expenses and other liabilities, partially offset by increases in contract liabilities (customer deposits), decrease in accounts receivable, and our net income adjusted for non-cash expenses such as depreciation and amortization expense, stock-based compensation expense, and deferred income tax provision.

For the three months ended December 31, 2021 and 2020, cash used in investing activities was approximately $92.6 million and $55.2 million, respectively.

For the three months ended December 31, 2021, cash used in investing activities was primarily used for acquisitions, to purchase property and equipment associated with improving existing retail facilities, to purchase property and equipment from locations formerly leased, and to purchase investments.

For the three months ended December 31, 2020, cash used in investing activities was primarily used for acquisitions and to purchase property and equipment associated with improving existing retail facilities.

For the three months ended December 31, 2021 and 2020, cash provided by financing activities was approximately $79.0 million and $33.1 million, respectively.

For the three months ended December 31, 2021, cash provided by financing activities was primarily attributable to net increases in short-term borrowings 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 and contingent acquisition consideration payments.

For the three months ended December 31, 2020, cash provided by financing activities was primarily attributable to proceeds from long-term debt and net proceeds from issuance of common stock under incentive compensation and employee purchase plans, partially offset by net decreases in short-term borrowings and payments on tax withholdings for equity awards.

In May 2020, we entered into a Loan and Security Agreement, which was subsequently amended in July 2021, with Wells Fargo Commercial Distribution Finance LLC, M&T Bank, Bank of the West, and Truist Bank.

The Credit Facility provides the Company a line of credit with asset based borrowing availability of up to $500.0 million for working capital and inventory financing, with the amount permissible pursuant to a borrowing base formula.

The Credit Facility has a three-year term and expires in July 2024, subject to extension for two one-year periods, with lender approval.

The Credit Facility expires in July 2024, subject to extension for two one-year periods, with lender approval.

The Credit Facility has certain financial covenants as specified in the agreement.

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The interest rate for amounts outstanding under the Credit Facility is 345 basis points plus the greater of 75 basis points or the one-month LIBOR.

The Credit Facility allows for the transition of the benchmark interest rate used from LIBOR to SOFR.

There is an unused line fee of ten basis points on the unused portion of the Credit Facility.

As of December 31, 2021, we were in compliance with all covenants under the Credit Facility.

Advances under the Credit Facility are initiated by the acquisition of eligible new and used inventory or are re-advances against eligible new and used inventory that have been partially paid-off.

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None of our real estate has been pledged for collateral for the Credit Facility.

As of June 30, 2021 , our indebtedness associated with financing our inventory and working capital needs totaled approximately $ 2.9 million.

As of June 30, 2020 and 2021 , the interest rate on the outstanding short-term borrowings was approximately 3.9 % and 4.2 %, respectively.

As of June 30, 2021 , our additional available borrowings under our Credit Facility were approximately $ 1 02.9 million based upon the outstanding borrowing base availability.

As of June 30, 2021 we had approximately $48.4 million in long-term debt, net of current maturities as a result of our mortgage facilities.

See Note 10 of the Notes to Unaudited Condensed Consolidated Financial Statements.

As of December 31, 2021, our indebtedness associated with our short-term borrowings and our long-term debt totaled approximately $113.7 million and $50.8 million, respectively.

As of December 31, 2021, short-term borrowings and long-term debt recorded on the Unaudited Condensed Consolidated Balance Sheets included unamortized debt issuance costs of approximately $0.2 million and $0.6 million, respectively.

Refer to Note 11 of the Notes to Unaudited Condensed Consolidated Financial Statements for disclosure of borrowing availability, interest rates, and terms of our short-term borrowings and long-term debt.

Except as specified in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in the Unaudited Condensed Consolidated Financial Statements in the “Financial Statements (Unaudited)”, we have no material commitments for capital for the next 12 months.

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.

Based on the information currently available to us (including the COVID-19 pandemic’s impact on consumer demand, which is 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 for possible significant acquisitions.

Impact of Seasonality and Weather on Operations

Our business, as well as the entire recreational boating industry, is highly seasonal, with seasonality varying in different geographic markets.

With the exception of Florida, we generally realize significantly lower sales and higher levels of inventories, and related short-term borrowings, in the quarterly periods ending December 31 and March 31.

With the exception of Florida, we generally realize significantly lower sales, higher levels of inventories, and related short-term borrowings, in the quarterly periods ending December 31 and March 31.

The onset of the public boat and recreation shows in January generally stimulates boat sales and typically allows us to reduce our inventory levels and related short-term borrowings throughout the remainder of the fiscal year.

Our 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.

Our expansion into boat storage may act to reduce our seasonality and cyclicality.

Our business is also subject to weather patterns, which may adversely affect our results of operations.

For example, prolonged winter conditions, drought conditions (or merely reduced rainfall levels) or excessive rain, may limit access to area boating locations or render boating dangerous or inconvenient, thereby curtailing customer demand for our products.

In addition, unseasonably cool weather and prolonged winter conditions may lead to a shorter selling season in certain locations.

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 Hurricanes Harvey and Irma in 2017.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis