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| CONTACT: | | Michael H. McLamb | | Brad Cohen 203/682-8211 |
| | Chief Financial Officer | | Tom Ryan 203/682-8200 |
| | MarineMax, Inc. | | Integrated Corporate Relations, Inc. |
| | 727/531-1700 | | |
MARINEMAX REPORTS FOURTH QUARTER AND FISCAL YEAR 2004
RESULTS
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| | Fourth Quarter Highlights |
| | - Same-store sales increased 8%, despite four hurricanes |
| | - EPS of $0.48 exceeded revised guidance |
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| | Fiscal 2004 Highlights |
| | - Same-store sales rose 21% |
| | - Net income increased 34% |
| | - Company maintains fiscal 2005 guidance |
CLEARWATER, FL, October 26, 2004 — MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat retailer, today announced revenue and earnings for the fourth quarter and 2004 fiscal year.
For the quarter ended September 30, 2004, revenue increased 12.3% to $183.3 million compared with $163.3 million for the comparable quarter last year. Despite the unprecedented occurrence of four hurricanes that impacted the company’s operations, fourth quarter same-store sales increased 8% following an 18% increase in the year ago quarter. Net income increased 5% to $8.0 million from net income of $7.6 million, in the comparable quarter last year. Earnings per diluted share remained constant at $0.48 due to additional dilution in the current period.
For the fiscal year ended September 30, 2004, revenue increased 25% to $762.0 million compared with $607.5 million for fiscal 2003. Same-store sales increased 21% compared with a 6% gain last year. Net income increased 34% to $26.3 million, or $1.58 per diluted share, from net income of $19.7 million, or $1.26 per diluted share, in fiscal 2003.
William H. McGill, Jr., Chairman, Chief Executive Officer and President, stated, “I am very pleased with our fourth quarter results. Despite the adverse effects of the four hurricanes that affected Florida, which represents about half of our company, and our other markets in the last two months of the quarter, we were able to deliver solid same-store sales growth and earnings. Faced with unusual adverse circumstances, our MarineMax team members exhibited exceptional performance. Our results are a testimony to both the strength of the MarineMax brand and the resiliency of our customers. Regardless of the obstacles, people want to enjoy the boating lifestyle that focuses on family and stress relief.”
Mr. McGill continued, “Fiscal 2004 proved to be an outstanding year. Our strategy of broadening our products and services, together with our investments in our team, stores, and inventories, enabled us to capitalize on the improved economic conditions. Importantly, we continued to gain market share throughout the year.”
Mr. McGill concluded, “As we look ahead, we expect a strong 2005 for MarineMax. We are poised with the best product line up we have ever had. Our inventory aging is in great shape which will allow us to capitalize on improving industry conditions. However, our near-term results may be affected by the lingering effects of the four hurricanes, causing our growth to be skewed toward the second half of the year. Boat docks and marinas will be under construction in the coming months, while the infrastructure for portions of Florida needs additional time to heal. Nevertheless, we remain confident that the MarineMax brand and highly customer-centric, full-service approach to “delivering the boating dream” will enable us to continue to further enhance our industry-leading position and create long-term stockholder value.”
Based on current business conditions, retail trends and other factors, MarineMax is maintaining its previously announced fiscal 2005 guidance of $1.75 to $1.80 per diluted share.
About MarineMax
Headquartered in Clearwater, Florida, MarineMax is the nation’s largest recreational boat retailer. Focused on premium brands, such as Sea Ray, Boston Whaler, Meridian, Princecraft, Hatteras, Grady White, Ferretti Yachts, Custom Line, CRN, Pershing, Riva, Mochi Craft, Apreamare and Bertram, the Company sells new and used recreational boats and related marine products and provides yacht brokerage services. The Company currently operates 67 retail locations in Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Maryland, Minnesota, Nevada, New Jersey, North Carolina, Ohio, South Carolina, Texas and Utah. MarineMax is a New York Stock Exchange-listed Company.
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 expectations regarding the strength of our products and the performance of our team; our position in the boating market; our ability to continue long-term growth and increase stockholder value; and our earnings guidance for fiscal 2005. 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 accomplish goals and strategies, the success of the acquisition program, synergies expected from acquisitions, anticipated revenue enhancements, general economic conditions and the level of consumer spending, the Company’s ability to integrate acquisitions into existing operations and numerous other factors identified in the Company’sForm 10-K and other filings with the Securities Exchange Commission.
(table follows)
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited amounts in thousands, except share and per share data)
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| | | Three Months Ended | | Twelve Months Ended |
| | | September 30,
| | September 30,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
| Revenue | | $ | 183,305 | | | $ | 163,290 | | | $ | 762,009 | | | $ | 607,501 | |
| Cost of sales | | | 130,206 | | | | 117,118 | | | | 573,616 | | | | 459,729 | |
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| Gross profit | | | 53,099 | | | | 46,172 | | | | 188,393 | | | | 147,772 | |
| Selling, general, and administrative expenses | | | 38,584 | | | | 32,849 | | | | 139,470 | | | | 113,299 | |
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| |
| Income from operations | | | 14,515 | | | | 13,323 | | | | 48,923 | | | | 34,473 | |
| Interest expense | | | 1,633 | | | | 939 | | | | 6,499 | | | | 2,471 | |
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| Income before income taxes | | | 12,882 | | | | 12,384 | | | | 42,424 | | | | 32,002 | |
| Income tax provision | | | 4,869 | | | | 4,768 | | | | 16,126 | | | | 12,321 | |
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| Net income | | $ | 8,013 | | | $ | 7,616 | | | $ | 26,298 | | | $ | 19,681 | |
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| Basic net income per common share: | | $ | 0.51 | | | $ | 0.50 | | | $ | 1.69 | | | $ | 1.28 | |
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| Diluted net income per common share: | | $ | 0.48 | | | $ | 0.48 | | | $ | 1.58 | | | $ | 1.26 | |
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| Weighted average number of common shares used in computing net income per common share: | | | | | | | | | | | | | | | | |
| Basic | | | 15,717,991 | | | | 15,385,488 | | | | 15,585,314 | | | | 15,337,873 | |
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| Diluted | | | 16,717,805 | | | | 15,950,257 | | | | 16,666,107 | | | | 15,671,470 | |
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(table follows)
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited amounts in thousands, except share and per share data)
| | | | | | | | | |
| | | September 30, 2004
| | September 30, 2003
|
ASSETS
|
| CURRENT ASSETS: | | | | | | | | |
| Cash and cash equivalents | | $ | 13,865 | | | $ | 10,508 | |
| Accounts receivable, net | | | 26,188 | | | | 21,757 | |
| Inventories, net | | | 283,992 | | | | 165,382 | |
| Prepaids and other current assets | | | 5,966 | | | | 4,127 | |
| Deferred tax assets | | | 3,465 | | | | 1,528 | |
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| Total current assets | | | 333,476 | | | | 203,302 | |
| Property and equipment, net | | | 84,507 | | | | 71,899 | |
| Goodwill and other intangible assets, net | | | 55,862 | | | | 53,144 | |
| Other long-term assets | | | 709 | | | | 810 | |
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| Total assets | | $ | 474,554 | | | $ | 329,155 | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| CURRENT LIABILITIES: | | | | | | | | |
| Accounts payable | | $ | 55,841 | | | $ | 12,402 | |
| Customer deposits | | | 15,917 | | | | 9,924 | |
| Accrued expenses | | | 17,820 | | | | 14,629 | |
| Short-term borrowings | | | 153,000 | | | | 97,000 | |
| Current maturities of long-term debt | | | 2,885 | | | | 2,344 | |
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| Total current liabilities | | | 245,463 | | | | 136,299 | |
| Deferred tax liabilities | | | 8,918 | | | | 6,801 | |
| Long-term debt, net of current maturities | | | 23,352 | | | | 19,999 | |
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| Total liabilities | | | 277,733 | | | | 163,099 | |
| STOCKHOLDERS’ EQUITY: | | | | | | | | |
| Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding at September 30, 2004 and 2003 | | | — | | | | — | |
| Common stock, $.001 par value; 24,000,000 shares authorized, 15,711,012 and 15,401,686 shares issued and outstanding at September 30, 2004 and 2003, respectively | | | 16 | | | | 15 | |
| Additional paid-in capital | | | 70,325 | | | | 65,235 | |
| Retained earnings | | | 127,098 | | | | 100,806 | |
| Treasury Stock, at cost, 30,000 shares held at September 30, 2004 | | | (618 | ) | | | — | |
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| Total stockholders’ equity | | | 196,821 | | | | 166,056 | |
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| Total liabilities and stockholders’ equity | | $ | 474,554 | | | $ | 329,155 | |
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