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MarineMax reports 4Q, year-end results

MarineMax today reported a drop in revenue and same-store sales for its fourth quarter. The company also reported lower revenue for its fiscal year, but ended the year with a net profit.

Revenue was $124.4 million for the quarter that ended Sept. 30, compared with $207.2 million for the comparable quarter last year. Same-store sales declined about 36 percent, compared with a 41 percent increase 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.

"The company's revenue in the year-ago quarter ended Sept. 30, 2009, benefited from the company's aggressive reduction of inventory in light of the deteriorating industry conditions," Clearwater, Fla.-based MarineMax said in a statement. "This planned strategy resulted in a significant reduction in the company's margins and unusually strong same-store sales growth."

The net loss for the fourth quarter of fiscal 2010 was $1.8 million, or 8 cents a share, compared with a net loss of $33 million, or $1.72 a share, in the comparable quarter last year.

Inventory in the fourth quarter declined $17.2 million, or 8 percent, to $188.7 million, compared with $205.9 million on Sept. 30, 2009. Short-term borrowings declined $48.2 million, or 34 percent, to $93.8 million, compared with $142 million on Sept. 30, 2009.

In a conference call today with analysts, company officials acknowledged disappointing fourth-quarter sales, but said there are signs that the market will pick up as consumer confidence rebounds.

Fuel sales have been up "substantially" and more customers are participating in MarineMax boating events, chairman, president and CEO William McGill Jr. told analysts. However, with consumer confidence "choppy," people are still hesitant to make large purchases.

McGill added that recent boat shows, including the Fort Lauderdale International Boat Show, which ended earlier this week, were "bright spots."

"[Fort Lauderdale] was up substantially in units and dollars, compared to last year," he said. "It was very encouraging to see the attitude of the customers."

Revenue was $450.3 million for fiscal 2010, compared with $588.6 million in fiscal 2009. Same-store sales declined about 17 percent, compared with a 29 percent decline in the previous fiscal year.

Net income for the fiscal year was $2.5 million, or 11 cents a diluted share, compared with a net loss of $76.8 million, or $4.11 a share, for fiscal 2009.

"Our fourth-quarter results reflect the challenging conditions that continue to pressure the boating industry. Nonetheless, we believe our retailing strategies have allowed us to increase our market share and our financial position remains strong," McGill Jr. said in a statement.

"We recently enhanced our flexibility through the addition of a new $30 million financing facility following the successful completion of the $100 million credit facility we closed in our third quarter," he added. "The actions that we have taken to improve our inventory aging, reduce inventory levels and reduce our expenses while continuing to enhance our customer service positions us well when industry conditions begin to improve."

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