UPDATE 2-MarineMax posts Q3 loss; shares up on inventory cuts

* Q3 adj loss/shr $0.38 vs est loss $0.09

* Revenue fall 44 pct to $151.5 mln

* Same-store sales fall 39 pct

* Inventory down 34 pct

* Shares up 11 pct (Recasts; adds CFO and analyst comments; updates share movement)

By Renju Jose

BANGALORE, July 30 (Reuters) - MarineMax Inc (HZO.N) posted a wider-than-expected quarterly loss, hurt by soft retail conditions, but shares rose as investors cheered the boat retailer's efforts to reduce its inventory levels.

The company, which sells new and used recreational boats and provides yacht brokerage services, reduced inventory by 34 percent to $339 million at the end of the quarter.

"The most important thing for the marine industry right now is to clear out old inventory," Rochdale Securities analyst Hayley Wolff said by phone.

There was a perception that MarineMax were going out of business, but the company's balance sheet improved significantly in the quarter, on both inventory and cash, Wolff, who has a "hold" rating on the stock, said.

"MarineMax will survive and probably end picking up considerable market share next year," she said.

Inventory reduction initiatives generated more than $100 million in cash flow from operations during the first nine months of fiscal 2009, and it allowed MarineMax to bring down its outstanding borrowings, the company said.

"I think there is a belief out there that the marine industry maybe getting close to the bottom," Chief Financial Officer Michael McLamb told Reuters.

Rochdale's Wolff agreed with McLamb, and said the rise in July sales showed "things were stabilizing and maybe turning."

However, McLamb said the marine industry will continue to be "challenging" in the near term.

NARROWER LOSS

For the third quarter ended June 30, the company posted a loss of $9.2 million, or 49 cents a share, compared with a loss of $113.3 million, or $6.15 a share, a year earlier.

Excluding items, it posted a loss of 38 cents a share, while analysts on average were expecting the company to post a loss of 9 cents a share, before items, on revenue of $167.4 million, according to Reuters Estimates.

Revenue fell 44 percent to $151.5 million.

Shares of the Clearwater, Florida-based retailer were trading up 7 percent at $5.21 Thursday afternoon on the New York Stock Exchange. They touched a high of $5.39 earlier in the day.

For related alerts double click [ID:nWNBB5749] (Reporting by Renju Jose in Bangalore; Editing by Jarshad Kakkrakandy)