Exhibit 99.1
CONTACT: | Michael H. McLamb Chief Financial Officer MarineMax, Inc. 727/531-1700 | Brad Cohen Integrated Corporate Relations, Inc. 203/682-8211 bcohen@icrinc.com | ||
Susan Hartzell – Media Contact Integrated Corporate Relations, Inc. 203/682-8238 |
MARINEMAX REPORTS FIRST QUARTER FISCAL 2007 RESULTS
- First Quarter Loss Per Diluted Share $0.21 -
- - Revenue Increases 30% to $234.7 Million -
- - Same-Store Sales Increased 14% -
CLEARWATER, FL – January 25, 2007 – MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat retailer, today announced results for its first quarter of fiscal 2007 ended December 31, 2006.
Revenue increased approximately 30% to $234.7 million from $181.2 million for the comparable quarter last year. This increase was driven by same-store sales growth of 14% and $28.7 million from stores that were opened or acquired that are not eligible for inclusion in the same-store sales base. Operating margins were negatively impacted by additional team member and product incentives, and higher marketing and promotional costs which were necessary to drive the Company’s sales. The net loss for the first quarter of fiscal 2007 was $3.8 million, or $0.21 per diluted share, compared with net income of $664,000, or $0.04 per diluted share, for the first quarter of fiscal 2006.
William H. McGill, Jr., Chairman, President and Chief Executive Officer of MarineMax stated, “As we indicated in our January 8, 2007 release, we believe our relative performance is greatly outpacing the industry, resulting in significant market share gains. We believe these gains will lead to meaningful revenue and earnings growth when the industry recovers. While we are disappointed that the challenging macro economic environment adversely impacted our results and required additional spending to secure sales, I am proud of our team’s execution and remain confident in our strategies.”
Inventories at December 31, 2006, were $545.3 million including approximately $117.6 million associated with the acquisitions of the Port Arrowhead Group and Surfside-3 Marina completed during the March 2006 quarter and approximately $13.6 million associated with the addition of the Cabo Yachts product line which the Company added in late September 2006.
Based on current business conditions, retail trends, and other factors, the Company is reiterating its recently updated fiscal 2007 guidance to the range of $1.40 to $1.50 per share on a fully diluted basis. The Company’s fiscal 2007 guidance assumes same-store sales will be in the mid-single digits and excludes the impact from any potential material acquisitions that it may complete.
About MarineMax
Headquartered in Clearwater, Florida, MarineMax is the nation’s largest recreational boat and yacht retailer. Focused on premium brands, such as Sea Ray, Boston Whaler, Meridian, Cabo, Hatteras, Grady White, Ferretti Yachts, 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 88 retail locations in Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Maryland, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, 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 results of fiscal 2007, company performance compared with the industry performance as well as expected market share gains. 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 the goals and strategies, the success of 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)
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MARINEMAX, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended December 31, | ||||||||
2006 | 2005 | |||||||
Revenue | $ | 234,738 | $ | 181,184 | ||||
Cost of sales | 177,677 | 136,836 | ||||||
Gross profit | 57,061 | 44,348 | ||||||
Selling, general, and administrative expenses | 56,872 | 40,472 | ||||||
Income from operations | 189 | 3,876 | ||||||
Interest expense | 6,540 | 2,761 | ||||||
(Loss) income before income tax (benefit) provision | (6,351 | ) | 1,115 | |||||
Income tax (benefit) provision | (2,565 | ) | 451 | |||||
Net (loss) income | $ | (3,786 | ) | $ | 664 | |||
Basic and diluted net (loss) income per common share | $ | (0.21 | ) | $ | 0.04 | |||
Weighted average number of common shares used in computing net (loss) income per common share: | ||||||||
Basic | 18,287,781 | 17,611,841 | ||||||
Diluted | 18,287,781 | 18,525,849 | ||||||
(table follows)
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MARINEMAX, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(Unaudited)
December 31, | December 31, | |||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 13,130 | $ | 10,638 | ||||
Accounts receivable, net | 48,834 | 26,515 | ||||||
Inventories, net | 545,282 | 388,072 | ||||||
Prepaid expenses and other current assets | 7,881 | 6,446 | ||||||
Deferred tax assets | 4,626 | 5,176 | ||||||
Total current assets | 619,753 | 436,847 | ||||||
Property and equipment, net | 121,354 | 99,649 | ||||||
Goodwill and other intangible assets, net | 116,366 | 56,320 | ||||||
Other long-term assets | 4,437 | 369 | ||||||
Total assets | $ | 861,910 | $ | 593,185 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 15,588 | $ | 15,560 | ||||
Customer deposits | 18,189 | 21,998 | ||||||
Accrued expenses | 25,518 | 22,925 | ||||||
Short-term borrowings | 405,500 | 206,000 | ||||||
Current maturities of long-term debt | 4,555 | 4,580 | ||||||
Total current liabilities | 469,350 | 271,063 | ||||||
Deferred tax liabilities | 11,932 | 11,065 | ||||||
Long-term debt, net of current maturities | 31,493 | 24,557 | ||||||
Total liabilities | 512,775 | 306,685 | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding at December 31, 2006 and 2005 | — | — | ||||||
Common stock, $.001 par value, 24,000,000 shares authorized, 18,619,767 and 17,937,595 shares issued and outstanding at December 31, 2006 and 2005, respectively | 19 | 18 | ||||||
Additional paid-in capital | 160,030 | 125,648 | ||||||
Retained earnings | 196,520 | 161,588 | ||||||
Accumulated other comprehensive income (loss) | 129 | (136 | ) | |||||
Treasury stock, at cost, 336,300 and 30,000 shares held at December 31, 2006 and 2005, respectively | (7,563 | ) | (618 | ) | ||||
Total stockholders’ equity | 349,135 | 286,500 | ||||||
Total liabilities and stockholders’ equity | $ | 861,910 | $ | 593,185 | ||||
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