CLEARWATER, Fla. — MarineMax posted a net loss of of $4.7 million for the first quarter of fiscal 2011, compared with net income of $10.2 million for the comparable quarter last year, but CEO William H. McGill said the company remains well-positioned for a recovery.
"While our results continue to be pressured by the overall challenging economic environment, we were encouraged by several points of progress in our business during the quarter," McGill said in the company's first quarter report. "Specifically, our new boat sales were up substantially compared to the prior year and we were able to improve our gross margins as the aging of our inventory and that of the industry continues to improve. The growth we experienced in new boat sales was offset by a decline in used boat sales, as both the industry and our used inventories have become lean. Nonetheless, we are encouraged by the growth in our new boat business which is evidence of our continued progress in gaining market share and a positive sign for the industry."
Revenue for the quarter, which ended Dec. 31, was $92.2 million compared with $100.4 million for the comparable quarter last year. Same-store sales declined approximately 8 percent compared with a 13 percent increase in the comparable quarter last year. Revenue from stores that were not eligible for inclusion in the same-store sales base was $600,000.
The company's net loss was reduced by approximately $1.4 million related to the favorable resolution of accounts receivable and inventory repurchases from a manufacturer whose brands the company no longer carries. Included in net income for the quarter was a tax benefit of approximately $19.3 million, primarily related to the recognition of fiscal 2009 tax net operating loss carry-backs. Without the tax benefit, the company would have incurred a net loss of $9.1 million.
Inventory declined $1.0 million, or 1%, to $189.2 million compared with $190.2 million on Dec. 31, 2009. Sequentially, inventory remained flat compared to the quarter ended Sept. 30, 2010, despite the seasonal increase that the industry typically experiences. Short-term borrowings declined $7.4 million, or 7%, to $94.6 million compared with $102.0 million as of Dece. 31, 2009.
"While it remains difficult to predict the timing of a full recovery for our industry, we believe that we are very well positioned," McGill reported. "MarineMax has a streamlined expense structure, an attractive footprint of stores, industry leading brands, a proven customer-focused strategy and the financial strength to take advantage of opportunities as they arise. Our customers' passion for boating remains strong. As we head into the spring and summer selling seasons, we are ready to serve our customers as their demand returns."
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