MarineMax earnings take hit, but sales up

CLEARWATER, Fla. – Boat retail chain MarineMax, Inc. (NYSE: HZO) saw its revenue increase but its earnings decline dramatically during the second quarter ended March 31 due to challenging market conditions. But it is reassured by its ability to take business from its competitors.

“As we indicated in our April 12, 2007 release, while we are disappointed with our earnings and the softness in our industry, we are confident that our performance has yielded significant market share gains,” commented William H. McGill, Jr., chairman, president and chief executive officer, in a recent statement. “Given that a large percentage of our revenue is from repeat and referral buyers, these market share gains should generate future growth in revenue and earnings as the industry recovers. Our premium brands, outstanding team, strong balance sheet and customer centric strategies create significant competitive advantages. We will look to capitalize on these strengths as we move through the summer selling boating season.”

Revenue grew 13 percent to $326.1 million for the quarter from $287.4 million for the comparable quarter last year. Same-store sales increased 2 percent, or $6.0 million, following a 14 percent increase in the comparable quarter last year. Revenue from stores recently opened or acquired that are not eligible for inclusion in the same-store sales base was $35.5 million.

Net income was $3.3 million compared with $8.6 million for the second quarter of fiscal 2006. The company notes its 2007 results include the proceeds of business interruption insurance for claims associated with Hurricane Wilma in 2006.

For the six month period, MarineMax revenue grew 20 percent to $560.8 million compared with $468.6 million for the comparable period in fiscal 2006. Same-store sales increased 7 percent on top of a 6-percent increase in the year ago period. Revenue from stores recently opened or acquired that are not eligible for inclusion in the same-store sales base was $64.2 million, according to the company.

Net loss for the six-months ended March 31 was $454,000 compared with net income of $9.3 million for the comparable period last year.

Based on current business conditions, retail trends and other factors, the company expects its earnings per share for its fiscal year ending September 30, 2007 to range from $0.45 to $0.65 on a fully diluted basis. The company’s 2007 guidance assumes same-store sales will be flat to low single digit and excludes the $0.06 per diluted share, arising from the proceeds of business interruption insurance for claims associated with Hurricane Wilma in 2006 as well as the impact from any potential material acquisitions that it may complete.

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