CLEARWATER, Fla. — MarineMax Inc. recorded a net loss of $6.3 million in its second quarter, improving on a net loss of $20.3 million for the comparable quarter last year, the company said in its quarterly report. The quarter ended March 31.
Revenue dropped to $110.1 million from $129.6 million last year, with same-store sales declining 5 percent compared with a 41 percent decline last year. During the same period, inventory levels were reduced by more than half, with $173.7 million in inventory compared with $399.1 million a year ago.
“With our successful efforts to substantially reduce our inventory levels behind us, gross margins returned to more typical levels,” William H. McGill, the company’s CEO, said in the report. “The margin expansion, combined with the initiatives we implemented to streamline our store base and to significantly lower our overall cost structure resulted in a greatly reduced quarterly loss when compared with the comparable quarter last year.”
During the quarter, the company operated with 56 stores, which is 18 fewer stores than in the prior year. MarineMax closed 26 stores in fiscal 2009.
McGill said the company’s same-store sales decline is indicative of continued challenging conditions in the market. He also said poor weather adversely affected the business during the quarter in key markets. However, he remained positive about the future.
“We are optimistic about the future,” McGill said. “The steps we have taken to reduce inventory and its related financing as well as our improved working capital position have resulted in a balance sheet with very strong ratios and increased flexibility. This financial position and the failure of other boat retailers provides us with a competitive advantage and should allow us to capitalize on opportunities as they arise. There are signs the economy is generally improving. In addition, retail sales in many industries appear to be increasing, although the improvement has yet to be felt in the high-end, big ticket segment. We remain convinced that, as industry conditions rebound, we will start to see the pent up demand from those customers who have delayed their first or next boat purchase. Boaters remain passionate about the benefits of the boating lifestyle, and MarineMax is well positioned to serve their needs.”
Click here to see the complete Marine Max Second Quarter Results.