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8-K - LIVE FILING - MARINEMAX INC | htm_38512.htm |
Exhibit 99.1
CONTACT: | Michael H. McLamb Chief Financial Officer MarineMax, Inc. 727/531-1700 |
Brad Cohen ICR, Inc. 203/682-8211 bcohen@icrinc.com |
MARINEMAX REPORTS THIRD QUARTER FISCAL 2010 RESULTS
~Improves Gross Margins and Achieves Profitability~
~Inventory Down 47% and Debt Down 77% Year Over Year ~
CLEARWATER, FL, July 29, 2010 MarineMax, Inc. (NYSE: HZO), the nations largest recreational boat retailer, today announced results for its third quarter ended June 30, 2010.
Revenue was $115.4 million for the quarter ended June 30, 2010 compared with $151.5 million for the comparable quarter last year. Same-store sales declined approximately 17% compared with a 39% decline in the comparable quarter last year. Revenue from stores recently closed that were not eligible for inclusion in the same-store sales base was $12.3 million. Net income for the third quarter of fiscal 2010 was $512,000, or $0.02 per diluted share, compared with a net loss of $9.2 million, or $0.49 per share, for the comparable quarter last year. Included in the third quarter of fiscal 2010 net income was approximately $1.0 million, or $0.04 per diluted share, relating to loan costs written off associated with the Companys recently retired financing facility. Included in the third quarter fiscal 2009 net loss was approximately $2.0 million, or $0.11 per share, associated with store closing costs.
Inventory declined $158.4 million, or 47%, to $181.4 million compared with $339.8 million at June 30, 2009. Short-term borrowings declined $192.8 million, or 77%, to $57.2 million compared with $250.0 million as of June 30, 2009.
Revenue was $325.9 million for the nine months ended June 30, 2010 compared with $381.3 million for the comparable period last year. Same-store sales declined approximately 5% compared with a 44% decline in the comparable period last year. Net income for the nine months ended June 30, 2010 was $4.3 million, or $0.19 per diluted share, compared with a net loss of $43.8 million, or $2.37 per share, for the comparable period last year. The Companys results for the nine-month period ended June 30, 2010 included a tax benefit of approximately $19.4 million, or $0.88 per share, primarily related to the recognition of fiscal 2009 tax net operating loss carry-backs realized through the recent change in tax laws, which increased the number of historical years that companies can carry back losses. Without the tax benefit, the Company would have incurred a net loss of $15.1 million, or $0.69 per share. Additionally, included in the net income for the nine months ended June 30, 2010, was approximately $1.0 million, or $0.04 per diluted share, relating to loan costs written off associated with the Companys recently retired financing facility. The Companys results for the nine-month period ended June 30, 2009 included $3.4 million, or $0.18 per share, of costs associated with store closings, as well as $5.9 million, or $0.32 per share, for incurred losses and increases in its inventory reserves for brands the Company no longer represents.
During the quarter ended June 30, 2010, the Company operated with 56 stores, which is nine fewer stores than at June 30, 2009. MarineMax closed 26 stores in fiscal 2009 as a key component of its efforts to better align its fixed costs with the decline in business it has experienced because of the prevailing weak economic conditions.
~more~
William H. McGill, Jr., Chairman, President, and Chief Executive Officer, stated, We have demonstrated this quarter that we can achieve profitability from lower levels of revenue than we ever have in the past. We attribute this improvement to the substantial progress we have made in our key initiatives. These include lowering our inventories to better align supply and demand, resulting in higher boat margins, as well as growing our higher margin service businesses and reducing our cost structure over the past 18 months. These efforts allowed us to generate a slight profit in the quarter despite the ongoing economic pressure on our industry and the impact of the BP oil spill in the Gulf of Mexico on customers purchasing decisions.
Mr. McGill continued, We also successfully secured a new financing facility with more favorable terms for our Company, including the elimination of operating covenants, removal of our real estate as a pledged asset, and lower interest rates. As a result of this new facility and the structural changes we have made to our business, we are now able to operate our business with more financial flexibility than before and resume a strategy focused on growth. We continue to look for opportunities to further entrench our position as the countrys largest boating retailer. I am also happy to report that we have seen our customers boating more this summer, indicating that their passion for the boating lifestyle remains strong. We believe we are well positioned to be their first choice for those that decide to upgrade or purchase their next boat.
About MarineMax
Headquartered in Clearwater, Florida, MarineMax is the nations largest recreational boat and yacht retailer. Focused on premium brands, such as Sea Ray, Boston Whaler, Meridian, Cabo, Hatteras, Azimut Yachts, and Grady White, MarineMax sells new and used recreational boats and related marine products and provides yacht brokerage services. MarineMax currently has 56 retail locations and operates within Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Kansas, Maryland, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, Tennessee and Texas. MarineMax is a New York Stock Exchange-listed company.
Use of Non-GAAP Financial Information
In this release, the Company discloses pro forma or non-GAAP measures of net income and earnings
per share. The Company believes that this pro forma information provides greater comparability
regarding its ongoing operating performance. These measures should not be considered an alternative
to measurements required by accounting principles generally accepted in the United States (GAAP),
such as net income and earnings per share. These pro forma measures are unlikely to be comparable
to pro forma information provided by other companies.
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 the Companys ability to achieve profitability from lower levels of revenue; the Companys ability to operate its business with more financial flexibility; the Companys ability to resume a strategy focused on growth; the Companys opportunities to further entrench its position as the countrys largest boat dealer; the Companys assessment of its customers passion about boating; the Companys assessment of the pent up demand from customers; the Companys positioning to serve the boating needs of its customers; the Companys assessment of customers future buying decisions; the Companys positioning as the first choice for those that decide to upgrade or purchase their next boat; the Companys success in achieving key initiatives, including inventory control, growing higher margin service business, and reducing our cost structure; and the Companys long-term prospects. 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, general economic conditions and the level of consumer spending, the Companys ability to integrate acquisitions into existing operations and numerous other factors identified in the Companys Form 10-K and other filings with the Securities and Exchange Commission.
~more~
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue |
$ | 115,383 | $ | 151,514 | $ | 325,948 | $ | 381,346 | ||||||||
Cost of sales |
80,829 | 118,898 | 245,217 | 305,313 | ||||||||||||
Gross profit |
34,554 | 32,616 | 80,731 | 76,033 | ||||||||||||
Selling, general, and administrative
expenses |
33,340 | 38,975 | 92,600 | 114,197 | ||||||||||||
Income (loss) from operations |
1,214 | (6,359 | ) | (11,869 | ) | (38,164 | ) | |||||||||
Interest expense |
702 | 3,380 | 3,223 | 11,216 | ||||||||||||
Income (loss) before income tax benefit |
512 | (9,739 | ) | (15,092 | ) | (49,380 | ) | |||||||||
Income tax benefit |
| (559 | ) | (19,419 | ) | (5,591 | ) | |||||||||
Net income (loss) |
$ | 512 | $ | (9,180 | ) | $ | 4,327 | $ | (43,789 | ) | ||||||
Basic net income (loss) per common share |
$ | 0.02 | $ | (0.49 | ) | $ | 0.20 | $ | (2.37 | ) | ||||||
Diluted net income (loss) per common
share |
$ | 0.02 | $ | (0.49 | ) | $ | 0.19 | $ | (2.37 | ) | ||||||
Weighted average number of common shares
used in computing net income (loss) per
common share: |
||||||||||||||||
Basic |
22,077,086 | 18,575,332 | 21,951,424 | 18,502,933 | ||||||||||||
Diluted |
22,793,218 | 18,575,332 | 22,612,105 | 18,502,933 | ||||||||||||
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(Unaudited)
June 30, | June 30, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 24,356 | $ | 13,825 | ||||
Accounts receivable, net |
19,388 | 34,065 | ||||||
Inventories, net |
181,388 | 339,849 | ||||||
Prepaid expenses and other current assets |
10,725 | 10,065 | ||||||
Deferred tax assets |
| 298 | ||||||
Total current assets |
235,857 | 398,102 | ||||||
Property and equipment, net |
98,465 | 109,527 | ||||||
Other long-term assets |
2,205 | 3,257 | ||||||
Deferred tax asset |
| 1,206 | ||||||
Total assets |
$ | 336,527 | $ | 512,092 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Accounts payable |
$ | 28,597 | $ | 16,752 | ||||
Customer deposits |
16,478 | 6,065 | ||||||
Accrued expenses |
24,881 | 24,693 | ||||||
Short-term borrowings |
57,212 | 250,000 | ||||||
Total current liabilities |
127,168 | 297,510 | ||||||
Other long-term liabilities |
2,672 | 4,821 | ||||||
Total liabilities |
129,840 | 302,331 | ||||||
STOCKHOLDERS EQUITY: |
||||||||
Preferred stock |
| | ||||||
Common stock |
23 | 19 | ||||||
Additional paid-in capital |
209,375 | 183,797 | ||||||
Retained earnings |
13,099 | 41,755 | ||||||
Treasury stock |
(15,810 | ) | (15,810 | ) | ||||
Total stockholders equity |
206,687 | 209,761 | ||||||
Total liabilities and stockholders equity |
$ | 336,527 | $ | 512,092 | ||||
MarineMax, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
GAAP net income
(loss) as reported |
$ | 512 | $ | (9,180 | ) | $ | 4,327 | $ | (43,789 | ) | ||||||
Less the tax
benefit related to
tax loss
carry-backs due to
recent changes in
tax law |
| | (19,419 | ) | | |||||||||||
Non-GAAP proforma
net income (loss) |
$ | 512 | $ | (9,180 | ) | $ | (15,092 | ) | $ | (43,789 | ) | |||||
GAAP diluted net
income (loss) per
common share |
$ | 0.02 | $ | (0.49 | ) | $ | 0.19 | $ | (2.37 | ) | ||||||
Less the tax
benefit per share
related to tax loss
carry-backs due to
recent changes in
tax law |
| | (0.88 | ) | | |||||||||||
Non-GAAP proforma
net loss per common
share |
$ | 0.02 | $ | (0.49 | ) | $ | (0.69 | ) | $ | (2.37 | ) | |||||
Common shares used
in the calculations
of net income
(loss) per common
share |
22,077,086 | 18,575,332 | 21,951,424 | 18,502,933 | ||||||||||||