CONTACT: | Michael H. McLamb Chief Financial Officer MarineMax, Inc. 727/531-1700 | Brad Cohen ICR, LLC 203/682-8211 bcohen@icrinc.com |
FOR IMMEDIATE RELEASE
MARINEMAX REPORTS SECOND QUARTER FISCAL 2009 RESULTS
~ Reports Significant Reduction in Expenses and Inventory Levels ~
CLEARWATER, FL, May 7, 2009 – MarineMax, Inc. (NYSE: HZO), the nation’s largest recreational boat retailer, today announced results for its second quarter ended March 31, 2009.
Second Fiscal Quarter Results
Revenue was $129.6 million for the quarter ended March 31, 2009 compared with $233.3 million for the comparable quarter last year. Same-store sales declined approximately 41% compared with a 28% decrease in the comparable quarter last year. Revenue from stores recently closed that were not eligible for inclusion in the same-store sales base was $15.2 million. The net loss for the second quarter of fiscal 2009 was $20.3 million, or $1.09 per share, compared with a net loss of $3.5 million, or $0.19 per share, for the comparable quarter last year. Included in the second quarter fiscal 2009 net loss was approximately $900,000, or $0.05 per share, associated with store closing costs. Additionally, during the quarter, the Company incurred losses and increased its inventory reserves for expected losses associated with brands that it no longer represents, which reduced gross profit by $4.1 million, or $0.22 per share. Also, the Company was unable to record a meaningful tax benefit during the quarter due to carry back limitations, which contributed to its higher than anticipated losses. Using the Company’s approximate historical tax rate of 40%, the tax benefit would have reduced the net loss by approximately $0.32 per share. At March 31, 2009, inventory declined 28%, or $155 million, on a year-over-year basis.
Year-to-Date Results
Revenue was $229.8 million for the six months ended March 31, 2009 compared with $448.5 million for the comparable period last year. Same-store sales declined approximately 46% compared with a 20% decline in the comparable period last year. The net loss for the six-months ended March 31, 2009 was $34.6 million, or $1.87 per share, compared with a net loss of $9.9 million, or $0.54 per share, for the comparable period last year. The Company’s results for the six-month period ended March 31, 2009 included $1.3 million, or $0.07 per share, of costs associated with store closings, as well as $4.9 million, or $0.27 per share, for incurred losses and the increase in its inventory reserves, as noted above, for brands the Company no longer represents. The tax benefit for the six-month period was also reduced by carry back limitations, as noted above. Using the Company’s approximate historical tax rate of 40%, the tax benefit would have reduced the net loss by approximately $0.45 per share.
~more~
1
For the three and six months ended March 31, 2009, the Company’s same-store sales continued to be negatively impacted by the challenging economic conditions.
William H. McGill, Jr., Chairman, President and Chief Executive Officer, stated, “We made significant progress in a number of areas during the second quarter despite the continued weak retail conditions. Our ongoing efforts to aggressively reduce our cost structure allowed us to realize an approximate $20 million decrease in expenses during the quarter, the largest year-over-year quarterly reduction we have reported to date. Additionally, our focus on tightly controlling our inventories allowed us to achieve another quarter of significant inventory reductions, with approximately a $155 million decline on a year-over-year basis. It is noteworthy that, at quarter end, we had more than $105 million of inventory in excess of the related inventory financing, and we had $111 million of property and equipment, debt free, resulting in over $217 million in tangible net worth. Despite the very tough retail environment and our year-to-date losses, we produced over $64 million in cash flow from operations during the first six months of fiscal 2009. We expect to achieve further declines in our inventory, which should yield additional cash from operations and result in reductions to the related borrowings.”
Mr. McGill continued, “While we expect the industry to remain under pressure until the economy begins to improve, we are encouraged to see that our customers’ passion for boating remains strong and are pleased that our industry leading position is producing new business opportunities for us to consider. We remain committed to providing our customers the highest level of service and boating experiences so that, when consumers are ready to make a purchase, they continue to choose and recommend MarineMax.”
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, Azimut Yachts, and Grady White, the Company sells new and used recreational boats and related marine products and provides yacht brokerage services. The Company currently operates 74 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.
Use of Non-GAAP Financial Information
In this release, the Company discloses pro forma or non-GAAP measures of net income and earnings per share. The Company believes that this pro forma information provides greater comparability regarding its ongoing operating performance. These measures should not be considered an alternative to measurements required by accounting principles generally accepted in the United States (GAAP), such as net income and earnings per share. These pro forma measures are unlikely to be comparable to pro forma information provided by other companies.
~more~
2
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 Company’s position as it enters the spring and summer selling season, expectations regarding declines in inventory and related reduced borrowings, the Company’s assessment of market conditions and its effect on the boating industry, the business opportunities available to the Company, the Company’s industry position, the success of operating cost reductions, the ability to service customers at desired levels of customer service, and the Company’s long-term prospects. 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 reduce inventory, accomplish the goals and strategies, 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 and Exchange Commission.
~more~
3
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||
Revenue | $ | 129,608 | $ | 233,262 | $ | 229,832 | $ | 448,530 | ||||||||||||||||
Cost of sales | 109,894 | 187,783 | 186,415 | 345,927 | ||||||||||||||||||||
Gross profit | 19,714 | 54,479 | 43,417 | 102,603 | ||||||||||||||||||||
Selling, general, and | ||||||||||||||||||||||||
administrative expenses | 36,360 | 56,198 | 75,222 | 109,389 | ||||||||||||||||||||
Loss from operations | (16,646 | ) | (1,719 | ) | (31,805 | ) | (6,786 | ) | ||||||||||||||||
Interest expense | 3,774 | 5,952 | 7,836 | 11,833 | ||||||||||||||||||||
Loss before income tax benefit | (20,420 | ) | (7,671 | ) | (39,641 | ) | (18,619 | ) | ||||||||||||||||
Income tax benefit | (151 | ) | (4,162 | ) | (5,032 | ) | (8,691 | ) | ||||||||||||||||
Net loss | $ | (20,269 | ) | $ | (3,509 | ) | $ | (34,609 | ) | $ | (9,928 | ) | ||||||||||||
Basic net loss per common share | $ | (1.09 | ) | $ | (0.19 | ) | $ | (1.87 | ) | $ | (0.54 | ) | ||||||||||||
Diluted net loss per common share | $ | (1.09 | ) | $ | (0.19 | ) | $ | (1.87 | ) | $ | (0.54 | ) | ||||||||||||
Weighted average number | ||||||||||||||||||||||||
of common shares used in | ||||||||||||||||||||||||
computing net loss per | ||||||||||||||||||||||||
common share: | ||||||||||||||||||||||||
Basic | 18,512,104 | 18,363,692 | 18,465,325 | 18,364,187 | ||||||||||||||||||||
Diluted | 18,512,104 | 18,363,692 | 18,465,325 | 18,364,187 | ||||||||||||||||||||
4
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(Unaudited)
March 31, | March 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 14,982 | $ | 24,116 | ||||
Accounts receivable, net | 28,228 | 60,337 | ||||||
Inventories, net | 399,116 | 553,890 | ||||||
Prepaid expenses and other current assets | 7,731 | 5,950 | ||||||
Deferred tax assets | 298 | 7,068 | ||||||
Total current assets | 450,355 | 651,361 | ||||||
Property and equipment, net | 111,257 | 119,437 | ||||||
Goodwill and other intangible assets, net | — | 121,160 | ||||||
Other long-term assets | 3,261 | 4,167 | ||||||
Deferred tax asset | 1,206 | — | ||||||
Total assets | $ | 566,079 | $ | 896,125 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 21,922 | $ | 16,364 | ||||
Customer deposits | 6,495 | 18,397 | ||||||
Accrued expenses | 23,668 | 30,705 | ||||||
Short-term borrowings | 294,000 | 419,000 | ||||||
Current maturities of long-term debt | — | 4,433 | ||||||
Total current liabilities | 346,085 | 488,899 | ||||||
Deferred tax liabilities | — | 11,394 | ||||||
Long-term debt, net of current maturities | — | 24,210 | ||||||
Other long-term liabilities | 2,522 | 3,991 | ||||||
Total liabilities | 348,607 | 528,494 | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding at March 31, 2009 and March 31, 2008 | — | — | ||||||
Common stock, $.001 par value, 24,000,000 shares authorized, 18,512,104 and 18,368,369 shares issued and outstanding, net of shares held in treasury, at March 31, 2009 and March 31, 2008, respectively | 19 | 19 | ||||||
Additional paid-in capital | 182,328 | 173,720 | ||||||
Retained earnings | 50,935 | 209,893 | ||||||
Accumulated other comprehensive loss | — | (191 | ) | |||||
Treasury stock, at cost, 790,900 shares held at March 31, 2009 and March 31, 2008 | (15,810 | ) | (15,810 | ) | ||||
Total stockholders’ equity | 217,472 | 367,631 | ||||||
Total liabilities and stockholders’ equity | $ | 566,079 | $ | 896,125 | ||||
###
5