MarineMax Reports 33-percent increase in same-store sales

CLEARWATER, Fla., — MarineMax, Inc., the nation’s largest recreational boat retailer, today announced that it increased its same-store sales by 33 percent in its third quarter of 2011, compared to the same quarter of 2010.
The company reported revenue of $153.2 million for the quarter ended June 30, 2011, compared with $115.4 million for the comparable quarter last year. Same-store sales for the dealership increased approximately 33 percent compared with a 17-percent decrease for the comparable quarter last year.
“Our strong same-store sales increase of 33 percent highlights the third consecutive quarter we have achieved growth in overall new boat sales,” said William H. McGill, Jr., Chairman, President, and Chief Executive Officer. “It appears the customer is returning, and we are gaining market share despite periods of difficult weather conditions, low consumer confidence, and rising fuel prices during much of the quarter. As anticipated, with the large increase in new boat sales, our revenue mix resulted in a lower gross margin than last year. Our performance the past few quarters demonstrates that we have the right customer centric strategies and passionate team in place to capitalize on the industry fundamentals that are finally showing signs of improvement.”
Net income for the quarter totaled $3.4 million, compared with net income of $512,000 for the comparable quarter last year. Included in the results for the quarter ended June 30, 2010 was approximately $1.0 million of loan costs written off as a result of MarineMax entering into a new financing facility during that period.
The company’s inventory rose to $200.9 million as of June 30, 2011, compared with $190.2 million as of March 31, 2011. Inventory was up 6 percent from its previous fiscal year end of September 30, 2010. The increase was largely due to the new product lines added to MarineMax’s product portfolio over the past year.
For the nine-month period ended June 30, 2011, revenue totaled $361.1 million, compared with $325.9 million for the comparable period last year. Same-store sales increased approximately 11 percent for the nine-month period, compared with a 5-percent decrease for the comparable period last year. The net loss for the nine months ended June 30, 2011, was $5.8 million, compared with net income of $4.3 million, or $0.19 per diluted share, for the comparable period last year. The company’s results for the nine-month period ended June 30, 2010 included a tax benefit of approximately $19.4 million, primarily related to the recognition of fiscal 2009 tax net operating loss carry-backs. Without the tax benefit last year, it would have incurred a net loss of $15.1 million. MarineMax said that the significant reduction in its net loss, absent the tax carry-back for fiscal 2010, was primarily related to increased sales.
“We recently enhanced our financial flexibility through an increase in our existing financing facility with GE Capital from $100 million to $150 million,” McGill said. “The additional borrowing capacity gives us a competitive advantage and further strengthens our leading position in the industry. While consumer confidence continues to fluctuate and the economy remains soft, our broad product offerings and large geographic footprint are providing an advantage for boating enthusiasts throughout the country. We remain encouraged by the past several quarters’ results and believe we are well-positioned to continue to outperform. As we move forward and seek to drive additional stockholder value, we remain committed to pursuing additional opportunities while controlling our expenses and inventory levels.”

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