MarineMax to benefit from slowdown?

CLEARWATER, Fla. – Boat retailer MarineMax, Inc. (NYSE: HZO) is reporting record growth in revenue and income for its third quarter of fiscal 2006. But most of that growth is the result of newly opened stores or stores that have been newly acquired.

Revenue grew 37.6 percent to $421.3 million for the quarter ended June 30 from $306.1 million for the comparable quarter last year, the company reported in a statement today. Same-store sales increased 1.2 percent, following a 37.0 percent increase in the same quarter last year. The remaining growth came from stores opened or acquired that are not eligible for inclusion in the same-store sales base. Net income increased 26.7 percent to $17.5 million, or $0.90 per diluted share, from net income of $13.8 million, or $0.74 per diluted share, for the third quarter of fiscal 2005.

Revenue grew 23.8 percent to $889.9 million for the nine-month period ended June 30 compared with $718.7 million for the comparable period in fiscal 2005. Same-store sales increased 4.1 percent on top of a 22.5-percent increase in the year ago period. The remaining growth came from stores opened or acquired that are not eligible for inclusion in the same-store sales base. Net income for the nine-months ended June 30 was $26.8 million, or $1.42 per diluted share, compared with net income of $23.7 million, or $1.33 per diluted share, for the comparable period last year.

“I am pleased with our third quarter results and the performance of our team, especially given softer economic conditions, as cited by many retailers and marine industry manufacturers,” said William H. McGill, Jr., chairman, president, and chief executive officer. “Our strong performance is the result of incremental same-store sales growth despite the very difficult comparison to an unusually strong 37 percent same-store sales increase in the third quarter of last year, as well as very positive performance from the acquisitions we completed this year. While it is true that it is a more challenging environment for the marine industry, the premium segment and the larger products, which is where MarineMax is focused, historically have been more resilient than the rest of the industry.”

McGill also pointed out that “weaker economic conditions historically have benefited MarineMax by enabling us to increase market share and acquire dealers.” Therefore the company expects “to continue to grow revenue, profits and gain additional market share,” he added.

MarineMax is updating its fiscal 2006 guidance to the range of $2.08 to $2.13 per diluted share. Based on current business conditions, retail trends and other factors, for fiscal 2007 the company expects earnings per diluted share to be in the range of $2.15 to $2.25. The company’s 2007 guidance assumes same-store sales growth in the mid single digits. The company’s guidance excludes the impact from any potential material acquisitions that it may complete.

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