MarineMax reduces net loss in Q2

CLEARWATER, Fla. — MarineMax Inc. today announced results for its second fiscal quarter, which ended March 31.

Revenue was $115.8 million for the quarter compared with $110.1 million for the comparable quarter last year. Same-store sales increased approximately 5 percent compared with a 5 percent decrease in the comparable quarter last year. The net loss for the second quarter of fiscal 2011 was $4.5 million compared with a net loss of $6.3 million for the comparable quarter last year.

"The March quarter was the second consecutive quarter in which we experienced improving business trends in an otherwise challenging industry environment," William H. McGill Jr., CEO of MarineMax, said in a statement. "Our new boat sales were up for the second consecutive quarter compared with the comparable prior year quarters, which is in contrast to the declines that are still being reported across the industry. However, recent reports indicate that the industry may be starting to improve as we approach the summer selling season. We also drove another quarter of improvement in gross margins as the aging of our inventory improved and we maintained a disciplined pricing strategy. Additionally, dealer failures and soft used boat prices are largely behind us, which is helping to improve the overall health of the industry."

Inventory was $190.2 million as of March 31, which the company said was essentially flat compared with $189.2 million as of December 31. On a year-over-year basis, inventory was up 9 percent over the $173.7 million of inventory at March 31, 2010, largely due to new product lines added to the cmpany's product portfolio over the past year and the timing of the receipt of such products before the start of the seasonally stronger selling season.

Revenue was $207.9 million for the six months ended March 31, compared with $210.6 million for the comparable period last year. Same-store sales decreased approximately 1 percent, compared with a 3 percent increase in the comparable period last year. The net loss for the six months ended March 31 was $9.2 million compared with net income of $3.8 million for the comparable period last year. The company's results for the six-month period ended March 31, 2010, included 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 $15.5 million for the first six months of the last fiscal year.

"During the quarter, we also announced three important steps towards enhancing our product offerings and expanding our geographic footprint," McGill said. "First, we added Bayliner to our product offerings in eight states, allowing us to serve consumers we historically had not targeted with our existing brands. We also formed a strategic alliance with Marinas International, an operator of 27 marinas with over 15,000 slips across the country, which will provide us with the opportunity to establish sales brokerage offices in its marinas while supplying its marinas with increased traffic and occupancy. Finally, we expanded our geographic footprint, adding our 57th location with the acquisition of Treasure Island Marina's retail sales and brokerage operation in Panama City, Florida. We continue to evaluate additional opportunities to further expand and position MarineMax to take advantage of improvements in industry demand while maintaining a tight focus on our team, customers, expenses, and inventory."

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