Exhibit 99.1
Exhibit 99.1
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CONTACT:
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Michael H. McLamb
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Brad Cohen |
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Chief Financial Officer
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ICR, Inc. |
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MarineMax, Inc.
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203/682-8211 |
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727/531-1700
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bcohen@icrinc.com |
FOR IMMEDIATE RELEASE
MARINEMAX REPORTS SECOND QUARTER FISCAL 2011 RESULTS
~Same store sales increased 5%~
~Revenue and gross margins improved compared with the prior year quarter~
CLEARWATER, FL, April 29, 2011 MarineMax, Inc. (NYSE: HZO), the nations largest
recreational boat retailer, today announced results for its second fiscal quarter ended March 31,
2011.
Revenue was $115.8 million for the quarter ended March 31, 2011 compared with $110.1 million for
the comparable quarter last year. Same-store sales increased approximately 5% compared with a 5%
decrease in the comparable quarter last year. The net loss for the second quarter of fiscal 2011
was $4.5 million, or $0.20 per share, compared with a net loss of $6.3 million, or $0.29 per share,
for the comparable quarter last year.
Inventory was $190.2 million as of March 31, 2011, essentially flat compared with $189.2 million as
of December 31, 2010. On a year-over-year basis, inventory was up 9% over the $173.7 million of
inventory at March 31, 2010, largely due to new product lines added to the Companys product
portfolio over the past year and the timing of the receipt of such products before the start of the
seasonally stronger selling season.
Revenue was $207.9 million for the six months ended March 31, 2011 compared with $210.6 million for
the comparable period last year. Same-store sales decreased approximately 1% compared with a 3%
increase in the comparable period last year. The net loss for the six-months ended March 31, 2011
was $9.2 million, or $0.41 per share, compared with net income of $3.8 million, or $0.17 per
diluted share, for the comparable period last year. The Companys results for the six-month period
ended March 31, 2010 included a tax benefit of approximately $19.3 million, or $0.86 per diluted
share, primarily related to the recognition of fiscal 2009 tax net operating loss carry-backs.
Without the tax benefit, the Company would have incurred a net loss of $15.5 million, or $0.71 per
share, for the first six months of the last fiscal year.
William H. McGill, Jr., Chairman, President, and Chief Executive Officer, stated, The March
quarter was the second consecutive quarter in which we experienced improving business trends in an
otherwise challenging industry environment. Our new boat sales were up for the second consecutive
quarter compared with the comparable prior year quarters, which is in contrast to the declines that
are still being reported across the industry. However, recent reports indicate that the industry
may be starting to improve as we approach the summer selling season. We also drove another quarter
of improvement in gross margins as the aging of our inventory improved and we maintained a
disciplined pricing strategy. Additionally, dealer failures and soft used boat prices are largely
behind us, which is helping to improve the overall health of the industry.
~more~
Mr. McGill continued, During the quarter, we also announced three important steps towards
enhancing our product offerings and expanding our geographic footprint. First, we added Bayliner to
our product offerings in eight states, allowing us to serve consumers we historically had not
targeted with our existing brands. We also formed a strategic alliance with Marinas International,
an operator of 27 marinas with over 15,000 slips across the country, which will provide us with the
opportunity to establish sales brokerage offices in its marinas while supplying its marinas with
increased traffic and occupancy. Finally, we expanded our geographic footprint, adding our
57th location with the acquisition of Treasure Island Marinas retail sales and
brokerage operation in Panama City, Florida. We continue to evaluate additional opportunities to
further expand and position MarineMax to take advantage of improvements in industry demand while
maintaining a tight focus on our team, customers, expenses, and inventory.
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, Bayliner,
Hatteras, Azimut Yachts, Malibu, Nautique and Grady White, MarineMax sells new and used
recreational boats and related marine products and provides yacht brokerage services. MarineMax
currently has 57 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
assessment of industry conditions; the Companys assessment of its ability to increase gross
margins; the Companys belief that the steps it has taken will enhance its product offerings and
expand its geographic footprint; the Companys assessment that its strategic alliance with Marina
International will provide it with the opportunity to establish additional sales brokerage offices
and supply the marinas with increased traffic and occupancy; and the ability of the Company to
further expand and position itself for an improvement in industry demand while maintaining a tight
focus on its team, customers, expenses and inventory. 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)
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Three Months Ended |
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Six Months Ended |
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March 31, |
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March 31, |
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2011 |
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2010 |
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2011 |
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2010 |
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Revenue |
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$ |
115,756 |
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$ |
110,116 |
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$ |
207,946 |
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$ |
210,565 |
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Cost of sales |
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88,961 |
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85,910 |
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157,569 |
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164,388 |
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Gross profit |
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26,795 |
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24,206 |
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50,377 |
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46,177 |
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Selling, general, and administrative
expenses |
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30,446 |
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29,631 |
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57,887 |
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59,260 |
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Loss from operations |
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(3,651 |
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(5,425 |
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(7,510 |
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(13,083 |
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Interest expense |
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836 |
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1,059 |
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1,679 |
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2,521 |
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Loss before income tax benefit |
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(4,487 |
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(6,484 |
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(9,189 |
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(15,604 |
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Income tax benefit |
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(146 |
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(19,419 |
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Net income (loss) |
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$ |
(4,487 |
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$ |
(6,338 |
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$ |
(9,189 |
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$ |
3,815 |
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Basic net income (loss) per common share |
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$ |
(0.20 |
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$ |
(0.29 |
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$ |
(0.41 |
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$ |
0.17 |
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Diluted net income (loss) per common
share |
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$ |
(0.20 |
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$ |
(0.29 |
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$ |
(0.41 |
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$ |
0.17 |
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Weighted average number of common
shares used in computing net income
(loss) per common share: |
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Basic |
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22,329,156 |
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21,982,631 |
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22,283,970 |
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21,888,574 |
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Diluted |
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22,329,156 |
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21,982,631 |
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22,283,970 |
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22,521,571 |
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MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(Unaudited)
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March 31, |
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March 31, |
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2011 |
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2010 |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
21,436 |
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$ |
16,786 |
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Accounts receivable, net |
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19,987 |
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20,312 |
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Inventories, net |
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190,160 |
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173,695 |
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Prepaid expenses and other current assets |
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6,069 |
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9,319 |
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Total current assets |
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237,652 |
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220,112 |
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Property and equipment, net |
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98,641 |
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99,621 |
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Other long-term assets |
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1,264 |
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2,347 |
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Total assets |
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$ |
337,557 |
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$ |
322,080 |
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LIABILITIES AND STOCKHOLDERS EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
11,982 |
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$ |
27,077 |
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Customer deposits |
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9,556 |
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10,790 |
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Accrued expenses |
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26,028 |
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23,490 |
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Short-term borrowings |
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90,031 |
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53,000 |
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Total current liabilities |
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137,597 |
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114,357 |
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Other long-term liabilities |
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4,675 |
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3,168 |
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Total liabilities |
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142,272 |
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117,525 |
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STOCKHOLDERS EQUITY: |
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Preferred stock |
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Common stock |
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23 |
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23 |
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Additional paid-in capital |
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208,992 |
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207,755 |
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Retained earnings |
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2,080 |
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12,587 |
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Treasury stock |
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(15,810 |
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(15,810 |
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Total stockholders equity |
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195,285 |
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204,555 |
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Total liabilities and stockholders equity |
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$ |
337,557 |
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$ |
322,080 |
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MarineMax, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information
(Amounts in thousands, except share and per share data)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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March 31, |
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March 31, |
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2011 |
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2010 |
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2011 |
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2010 |
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GAAP net income (loss) as
reported |
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$ |
(4,487 |
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$ |
(6,338 |
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$ |
(9,189 |
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$ |
3,815 |
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Less the tax benefit
related to tax loss
carry-backs due to recent
changes in tax law |
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(19,273 |
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Non-GAAP proforma net loss |
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$ |
(4,487 |
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$ |
(6,338 |
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$ |
(9,189 |
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$ |
(15,458 |
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GAAP diluted net income
(loss) per common share |
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$ |
(0.20 |
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$ |
(0.29 |
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$ |
(0.41 |
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$ |
0.17 |
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Less the tax benefit per
share related to tax loss
carry-backs due to recent
changes in tax law |
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(0.86 |
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Non-GAAP proforma net
loss per common share |
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$ |
(0.20 |
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$ |
(0.29 |
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$ |
(0.41 |
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$ |
(0.71 |
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Common shares used in the
calculations of net
income (loss) per common
share |
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22,329,156 |
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21,982,631 |
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22,283,970 |
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21,888,574 |
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