CLEARWATER, Fla. – Net income was up 27 percent, revenue increased 25 percent and same store sales rose 24 percent for recreational boat retailer MarineMax, Inc., in the fourth quarter ended Sept. 30, the company said in a release earlier this week.
Revenue increased to $228.6 million from $183.3 million for the comparable quarter last year. Net income increased to $10.2 million resulting in earnings per diluted share of $0.54 compared with net income of $8.0 million and earnings per diluted share of $0.48 for the fourth quarter last year.
For the fiscal year ended Sept. 30, MarineMax said revenue increased 24 percent to $947.3 million compared with $762.0 million for fiscal 2004. Same-store sales increased 23 percent compared with a 21 percent gain last year. Net income increased 29 percent to $33.8 million, or $1.88 per diluted share, from net income of $26.3 million, or $1.58 per diluted share, for fiscal 2004.
The company said results for the fourth quarter and fiscal year would have been higher if it were not for the effect of its increasing its litigation reserve. The reserve was increased due to a single lawsuit award that MarineMax is currently appealing. Excluding the reserve, net income would have been $11.2 million, or $0.60 earnings per diluted share, for the fourth quarter and $34.8 million or $1.93 earnings per diluted share, for the fiscal year ended September 30, 2005. This represents an increase in net income of 40 percent and 33 percent for the fourth quarter and fiscal year ended, respectively.
"Fiscal 2005 proved to be an excellent year,” said William H. McGill, Jr., chairman, CEO and president. “We finished the year strong, overcoming hurricanes, rising gas prices, and a mixed economic environment to post fourth quarter same-store sales growth of 24 percent.
"We thank the MarineMax team for once again delivering outstanding same-store sales and earnings growth. In addition to gaining further market share, we strengthened our balance sheet. As we enter fiscal 2006, inventories are in great shape and we are armed with a terrific product line."
McGill said that hurricane Wilma had damaged several of the company’s South Florida stores, although damage was limited everywhere but at its Pompano Beach store, which he said suffered extensive damage. He went on to say that Wilma would undoubtedly impact the December quarter and 2006.
“Nonetheless, we believe that by adhering to our proven strategies and with the strength of our team, we will continue to gain market share, further distancing MarineMax from the competition, while creating long-term value for our shareholders, McGill said."
MarineMax said it is updating its previously announced guidance for fiscal 2006 to the range of $1.85 to $1.95 from the range of $1.95 to $2.00 per diluted share, based on current business conditions, retail trends and other factors.
Both ranges are after the impact of expensing stock options.
MarineMax said its 2006 guidance assumes same-store sales growth in the high single digits and its guidance excludes the impact from any potential material acquisitions that it may complete.
Banc of America Securities Equity Research analyst Gary Cooper said in a release that the MarineMax results, which came out earlier this week, were likely a sign that Brunswick was also doing well. Cooper said that Banc of America estimates that MarineMax accounts for 10-15 percent of Brunswick’s boat sales.
“According to our estimates [Brunswick’s] boats account for about 60-70 percent of [MarineMax’s] revenues, and the Sea-Ray brand alone represents about 50 percent of [MarineMax] revenues,” Cooper wrote.
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