WATSONVILLE, Calif. — West Marine Inc. released its unaudited operating results for the second quarter of 2011, and raised guidance for fiscal 2011.
2011 second quarter highlights include:
• Income before taxes for the second fiscal quarter was $40.0 million, a $4.0 million, or 11.0%, increase compared to the same period last year.
• Net income for the second quarter was $44.7 million, or $1.92 per fully diluted share, compared to $35.1 million, or $1.52 per fully diluted share, a 26.3% increase compared to the same period last year.
• Included in second quarter net income was $4.8 million, or $0.21 per fully diluted share, for an income tax benefit related to the reversal of the majority of our tax valuation allowance.
• Income before taxes for the first six months was $27.7 million, a $1.2 million, or 4.4%, increase compared to the same period last year.
• Net income for the first six months was $32.4 million, or $1.39 per fully diluted share, a 24.1% increase over the $25.6 million, or $1.12 per fully diluted share, in the same period last year.
• West Marine is raising its previously issued 2011 full-year pre-tax earnings guidance to a range from $18.5 million to $20.0 million.
• Earnings per share guidance is increasing to a range from $1.05 to $1.16 per share due to the release of the majority of the valuation allowance against our deferred tax assets and an increase in pre-tax earnings expectations.
Geoff Eisenberg, Chief Executive Officer of West Marine, said, “After a much later beginning to the boating season because of difficult weather in many markets, Customer activity finally kicked in during the last month of the quarter. We experienced stronger year-over-year sales after Memorial Day, while continuing to manage expenses and gross margin. Based on our current outlook, combined with positive Customer response to many of our sales initiatives, we have increased our full-year guidance for both revenues and earnings.”
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