Despite revenue increase, MarineMax faces Q4 net loss

CLEARWATER, Fla. — Boat retail chain MarineMax Inc. saw big improvements in revenue and same-store sales during its fourth quarter but couldn’t avoid a net loss, according to a report issued by the company yesterday. The company’s fiscal year ended Sept. 30.

Revenue was $207.2 million for the quarter, an increase of 25 percent compared with $165.6 million for the same quarter last year. Same-store sales increased about 41 percent compared with a 45-percent decline last year – the first increase in same store sales in more than two years, according to the company.

The net loss for the fourth quarter was $33.0 million, or $1.72 per share, compared with a net loss of $11.1 million, or $0.60 per share, for the comparable quarter last year.

The company said the loss includes about $2.8 million associated with store closing costs and $6.6 million for incurred losses and increases in inventory reserves for brands it no longer carries.

As of the quarter’s end, inventory declined 56 percent, or $262.7 million, to $205.9 million compared to $468.6 million as of Sept. 30, 2008. Short-term borrowings declined 62 percent, or $230.0 million, to $142.0 million.

“During the quarter, the company’s aggressive inventory reduction strategy drove the substantial increase in same-store sales as well as the decline in the company’s gross profit margins, which contributed to the reported loss,” MarineMax reported. “Also as planned, the company closed an additional 11 stores during the September quarter, bringing the total store closures to 26 during fiscal 2009. These planned store closures were a key component in the company’s efforts to better match its fixed costs with the decline in business caused by the soft economic conditions.”

Revenue for the entire fiscal year was $588.6 million, compared with $885.4 million for fiscal year 2008. Same-store sales declined approximately 29 percent compared with a 28-percent decline for the previous fiscal year. The net loss for the fiscal year was $76.8 million compared with a net loss of $134.3 million for fiscal 2008.

To read the company’s full report, click here.

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