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CLEARWATER, Fla. — In the fiscal third quarter that ended June 30, MarineMax Inc. posted a loss of $9.2 million, or $0.49 per share, according to a report today from the company. The net loss for the comparable quarter last year was $113.3 million, or $6.15 per share.
Revenue at the marine retailer was down 44 percent to $151.5 million, compared with $271.3 million for the comparable quarter last year. Same-store sales were down about 39 percent compared with a 27 percent decrease last year. Revenue from recently closed stores that were not eligible for inclusion in the same-store sales base was $25.2 million.
As of June 30, inventory was down 34 percent on a year-over-year basis, dropping to $339 million from $515 million.
William H. McGill Jr., chairman, president and CEO of MarineMax, said the company was affected by soft retail conditions, dealer failures and the difficult retail lending environment. However, he said the company had made progress toward its stated goals.
“We reduced expenses by over $17 million from the June quarter of last year, on a comparable basis. We also made considerable progress reducing our inventory levels, as shown by the significant $175 million year-over-year reduction at quarter end,” McGill said in the report. “Our focus on reducing inventory has resulted in lower gross profit margins, which we believe is the right strategy given the challenges faced by the industry. We also successfully secured an amendment to our credit agreement, as previously reported, which allows us to be even more aggressive in further reducing our inventory levels.”
According to the report, about $2.0 million, or $0.11 per share, of the net loss was associated with store closing costs. Also, the company said it was unable to record a meaningful tax benefit during the quarter due to carry back limitations.
Included in the third quarter fiscal 2008 loss was a non-cash charge of $122.1 million before tax, or approximately $6.33 per share, net of tax, including a valuation allowance related to deferred tax assets associated with the impairment of goodwill and intangibles.
For the nine months that ended June 30, MarineMax had revenue of $381.3 million, compared with $719.8 million for the comparable period last year. Same-store sales declined about 44 percent compared with a 23-percent decline last year. The net loss was $43.8 million compared with a net loss of $123.2 million last year.
Results for the nine-month period included $3.4 million of costs associated with store closings, as well as $5.9 million for incurred losses and increases in its inventory reserves for brands the company no longer represents.
According to MarineMax, the net loss for the fiscal year to date, excluding the non-cash impairment charge mentioned above, was $0.43 per share, using the company’s historical tax rate of approximately 40 percent. That includes $0.08 per share arising from gains related to insurance proceeds received associated with the 2007 damages to the company’s Missouri facilities, a net gain that resulted from the company’s retirement of its various mortgage loans and related interest rate swaps and a gain related to changes in the company’s benefit plans.
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