MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat retailer, today announced results for its second quarter ended March 31, 2008.
Revenue was $233.3 million for the quarter ended March 31, 2008 compared with $325.1 million for the comparable quarter last year. Same-store sales declined approximately 28%, or $90.4 million, compared with a 2% increase in the comparable quarter last year. Revenue from stores recently opened or closed that were not eligible for inclusion in the same-store sales base decreased $1.4 million. The net loss for the second quarter of fiscal 2008 was $3.5 million, or $0.19 per share, compared with net earnings of $3.3 million, or $0.17 per diluted share in the comparable quarter last year. Second quarter 2007 earnings per diluted share were $0.11 after removing $0.06 per diluted share for insurance gains.
Revenue was $448.5 million for the six months ended March 31, 2008 compared with $559.1 million for the comparable period last year. Same-store sales declined approximately 20%, or $110.4 million, compared with a 6% increase in the comparable period last year. The net loss for the six-months ended March 31, 2008 was $9.9 million, or $0.54 per share, compared with a net loss of $454,000, or $0.02 per share for the comparable period last year. The Company’s results for the six-month period ended March 31, 2007 includes net earnings of $0.06 per share for insurance gains.
For the three and six months ended March 31, 2008, the Company’s same-store sales have been negatively impacted by the widely reported economic softness that has impacted most retailers. The Company’s geographic concentration in Florida and other markets that have been adversely affected by the housing slowdown have added to the decline in same-store sales.
William H. McGill, Jr., Chairman, President and Chief Executive Officer stated, “As we indicated in our April 16, 2008 release, continued deterioration in the marine retail environment, impacted by widely publicized pressures in the housing and credit markets, resulted in second quarter performance that fell below our expectations. For the quarter, however, we were pleased to be able to increase the Company’s overall gross margins. We also reported a reduction in selling, general, and administrative expenses as a result of a decline in our variable costs and our focus on reducing our cost structure. We also strengthened our balance sheet on a year-over-year basis.”
Mr. McGill continued, “We remain focused on growing market share in this difficult environment while exceeding our customers’ expectations. We are also further reducing our purchases from manufacturers to better align our inventory levels with sales trends. Lastly, we continue to strive to ensure our cost structure is consistent with the level of sales we are obtaining. Even in a declining market, MarineMax has sustained its record of market share gains as a result of our premium brand offering, outstanding team, strong balance sheet, and customer centric strategies. I am confident that these competitive advantages will enhance our leading position and benefit us when the market turns.”
About MarineMax
Headquartered in Clearwater, Florida, MarineMax is the nation's largest recreational boat and yacht retailer. Focused on premium brands, such as Sea Ray, Boston Whaler, Meridian, Cabo, Hatteras, Azimut Yachts, Grady White, Ferretti Yachts, Pershing, Riva, Mochi Craft, and Bertram, the Company sells new and used recreational boats and related marine products and provides yacht brokerage services. The Company currently operates 88 retail locations in Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Maryland, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Texas and Utah. MarineMax is a New York Stock Exchange-listed company.
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include expectations regarding fiscal 2008, the March 2008 quarter, projected inventory purchases, company performance compared with industry performance as well as expected market share gains and long-term revenue and earnings growth. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks include the ability to reduce inventory, accomplish the goals and strategies, anticipated revenue enhancements, general economic conditions and the level of consumer spending, the Company’s ability to integrate acquisitions into existing operations and numerous other factors identified in the Company’s Form 10-K and other filings with the Securities Exchange Commission.
MarineMax, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Amounts in thousands, except share and per share data) (Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||||
| Revenue | $ | 233,262 | $ | 325,082 | $ | 448,530 | $ | 559,113 | |||||||
| Cost of sales | 178,783 | 252,554 | 345,927 | 430,231 | |||||||||||
| Gross profit | 54,479 | 72,528 | 102,603 | 128,882 | |||||||||||
Selling, general, and administrative expenses | 56,198 | 59,533 | 109,389 | 115,698 | |||||||||||
| Income (loss) from operations | (1,719 | ) | 12,995 | (6,786 | ) | 13,184 | |||||||||
| Interest expense | 5,952 | 7,547 | 11,833 | 14,087 | |||||||||||
Income (loss) before income tax provision (benefit) | (7,671 | ) | 5,448 | (18,619 | ) | (903 | ) | ||||||||
| Income tax provision (benefit) | (4,162 | ) | 2,116 | (8,691 | ) | (449 | ) | ||||||||
| Net income (loss) | $ | (3,509 | ) | $ | 3,332 | $ | (9,928 | ) | $ | (454 | ) | ||||
| Basic net income (loss) per common share | $ | (0.19 | ) | $ | 0.18 | $ | (0.54 | ) | $ | (0.02 | ) | ||||
| Diluted net income (loss) per common share | $ | (0.19 | ) | $ | 0.17 | $ | (0.54 | ) | $ | (0.02 | ) | ||||
Weighted average number of common shares used in computing net income (loss) per common share: | |||||||||||||||
| Basic | 18,363,692 | 18,377,902 | 18,364,187 | 18,332,346 | |||||||||||
| Diluted | 18,363,692 | 19,042,015 | 18,364,187 | 18,332,346 | |||||||||||
MarineMax, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Amounts in thousands, except share and per share data) (Unaudited) | ||||||||
| March 31, 2008 | March 31, 2007 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 24,116 | $ | 23,489 | ||||
| Accounts receivable, net | 60,337 | 65,309 | ||||||
| Inventories, net | 553,890 | 547,959 | ||||||
| Prepaid expenses and other current assets | 5,950 | 6,371 | ||||||
| Deferred tax assets | 7,068 | 5,241 | ||||||
| Total current assets | 651,361 | 648,369 | ||||||
| Property and equipment, net | 119,437 | 119,906 | ||||||
| Goodwill and other intangible assets, net | 121,160 | 121,838 | ||||||
| Other long-term assets | 4,167 | 4,510 | ||||||
| Total assets | $ | 896,125 | $ | 894,623 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 16,364 | $ | 21,941 | ||||
| Customer deposits | 18,397 | 26,486 | ||||||
| Accrued expenses | 30,705 | 27,106 | ||||||
| Short-term borrowings | 419,000 | 414,500 | ||||||
| Current maturities of long-term debt | 4,433 | 4,581 | ||||||
| Total current liabilities | 488,899 | 494,614 | ||||||
| Deferred tax liabilities | 11,394 | 12,167 | ||||||
| Long-term debt, net of current maturities | 24,210 | 30,287 | ||||||
| Other long-term liabilities | 3,991 | 2,526 | ||||||
| Total liabilities | 528,494 | 539,594 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding at March 31, 2008 and 2007 | -- | -- | ||||||
| Common stock, $.001 par value, 24,000,000 shares authorized, 18,368,369 and 18,673,113 shares issued and outstanding, net of shares held in treasury, at March 31, 2008 and 2007, respectively | 19 | 19 | ||||||
| Additional paid-in capital | 173,720 | 162,678 | ||||||
| Retained earnings | 209,893 | 199,852 | ||||||
| Accumulated other comprehensive income (loss) | (191 | ) | 43 | |||||
Treasury stock, at cost, 790,900 and 336,300 shares held at March 31, 2008 and 2007, respectively | (15,810 | ) | (7,563 | ) | ||||
| Total stockholders’ equity | 367,631 | 355,029 | ||||||
| Total liabilities and stockholders’ equity | $ | 896,125 | $ | 894,623 | ||||
Contacts:
Michael H. McLamb, 727-531-1700
Chief
Financial Officer
or
Integrated Corporate Relations, Inc.
Brad
Cohen, 203-682-8211
