MarineMax reports 2Q results


MarineMax today announced an increase in revenue and same-store sales for its second quarter, but also reported a net loss for the period.

On a call this morning with analysts, chairman, president and CEO William McGill Jr. noted it was the company's second quarter in a row with growth in new-boat sales. New-unit sales were up more than 10 percent, he said, and margins showed improvement in the quarter.

Sales, he said, were helped by the addition of more brands in certain areas of the country, as well as partnerships the company recently forged.

"We have a good mix of the right product," he said.

Revenue was $115.8 million for the quarter that ended March 31, compared with $110.1 million for the comparable quarter last year. Same-store sales increased about 5 percent, compared with a 5 percent decrease in the comparable quarter last year.

The company reported a net loss of $4.5 million, or 20 cents a share, for the 2011 quarter, compared with a net loss of $6.3 million, or 29 cents a share, for the comparable quarter last year.

Inventory was $190.2 million on March 31, essentially flat compared with $189.2 million on Dec. 31, 2010. On a year-over-year basis, inventory was up 9 percent from $173.7 million on March 31, largely because of new lines that MarineMax added to its product portfolio during the last year and the timing of the receipt of those products before the start of the seasonally stronger selling season.

Revenue was $207.9 million for the six months that ended March 31, compared with $210.6 million for the comparable period last year. Same-store sales decreased about 1 percent, compared with a 3 percent increase in the comparable period last year.

The company lost $9.2 million, or 41 cents a share, during the six-month period, compared with net income of $3.8 million, or 17 cents a share, in the comparable period last year.

"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," McGill said in a statement.

"However, recent reports indicate that the industry may be starting to improve as we approach the summer selling season," he added. "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."

During the quarter MarineMax announced "three important steps," McGill said.

The company added Bayliner to its product offerings in eight states, allowing MarineMax to serve consumers it historically had not targeted with its existing brands. The company also formed a strategic alliance with Marinas International.

Lastly, MarineMax added its 57th location by acquiring Treasure Island Marina's retail sales and brokerage operation in Panama City, Fla. This is the company's first new location since 2006.

McGill noted that the headlines this April "are more in favor of the consumer" than they were last year, when the upcoming midterm elections and the Gulf oil spill dominated the news.

It looks as if April will show an increase in new-boat sales, he said. Early indications suggest things are improving as we head into the key selling season, with retail financing easier to get and buyers seeming to be interested in returning to the market, he added.

"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," McGill said.

MarineMax stock opened Friday at $9.95, but fell in early trading. Its 52-week high and low are $12.79 and $6.17.

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