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MarineMax reports 4Q, year-end results

MarineMax, the nation's largest recreational boat retailer, today reported a decline in revenue for the fourth quarter, but an increase in revenue for the full fiscal year. However, the retailer ended the fiscal year with a net loss.

Revenue was $119.8 million for the quarter that ended Sept. 30, compared with $124.4 million for the comparable quarter last year. Same-store sales decreased about 2 percent, compared with a 36 percent decrease for the comparable quarter in 2010.

The net loss for the fourth quarter of fiscal 2011 was $5.7 million, or 25 cents a share, compared with a net loss of $1.8 million, or 8 cents a share, for the comparable quarter last year. The net loss for the fourth quarter of fiscal 2010 included a reversal of $3.9 million, or 18 cents a share, of stock-based compensation expense, which significantly affects the expense comparability between periods.

Also included in the net losses for the fourth quarter of 2011 and 2010 were about $500,000, or 2 cents a share, and $1.1 million, or 5 cents a share, respectively, associated with store-closing and lease-termination costs.

Revenue was $480.9 million for the fiscal year, compared with $450.3 million for fiscal 2010. Same-store sales increased about 8 percent, compared with a 17 percent decrease in the previous fiscal year.

The net loss for the fiscal year was $11.5 million, or 52 cents a share, compared with net income of $2.5 million, or 11 cents a share, for fiscal 2010. The company's results for the fiscal year, however, included the reversal of $3.9 million of stock-based compensation expense, or 18 cents a share, which significantly affects the expense comparability between the fiscal years, as well as a tax benefit of about $19.6 million, or 89 cents a share, primarily related to the recognition of tax net operating loss carry-backs.

Included in the company's results for fiscal 2011 and 2010 was about $750,000, or 3 cents a share, and $1.2 million, or 5 cents a share, respectively, associated with store-closing and lease-termination costs.

Inventory was $219.6 million on Sept. 30, compared with $188.7 million on Sept. 30, 2010, an increase of 16 percent. Most of the increase, however, related to new brand expansions, as well as the timing of receipt of inventory this year, compared with last year.

“The September quarter was our fourth consecutive quarter of new boat unit sales growth, albeit at a slower pace. We generated the unit growth while also incrementally increasing product margins and improving our already strong market share position,” MarineMax chairman, president and CEO William McGill Jr. said in a statement. “We would have preferred to have produced stronger results, but our industry's challenges persisted, with a significant drop in consumer confidence brought about by increasing softness in the economy, the national debt debate and, to a much lesser degree, Hurricane Irene. While our fourth-quarter results fell short of our expectations, we are making progress.

“On an annual basis, in 2011 we generated positive same-store sales and unit growth, incrementally increased gross margins, greatly reduced the pretax loss, achieved higher market share, improved our brand offerings to better align with customers' changing desires and completed an acquisition in the panhandle of Florida, one of our key geographic markets.

“However, with softer than expected fourth-quarter sales, we are focusing on reducing expenses to improve our operating results. Toward that end, as we ended fiscal 2011 we closed three stores and implemented additional cost reductions, which we believe will be achieved without compromising our outlook for growth or the experience we deliver to our customers,” McGill added.

MarineMax stock opened Thursday at $6.67 a share. Its 52-week high and low are $10.63 and $5.50.

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