MarineMax Reports Fourth Quarter and Fiscal 2009 Results
http://www.businesswire.com/news/home/20091105005227/en
Reports Significant Reductions in Inventory and Related Debt Levels
CLEARWATER, Fla.--(Business Wire)--
MarineMax, Inc. (NYSE: HZO), the nation`s largest recreational boat retailer,
today announced results for its fourth quarter and fiscal year ended September
30, 2009.
Fiscal Fourth Quarter Results
Revenue was $207.2 million for the quarter ended September 30, 2009, an increase
of 25% compared with $165.6 million for the comparable quarter last year.
Same-store sales increased approximately 41% compared with a 45% decline in the
comparable quarter last year. Revenue from stores recently closed that were not
eligible for inclusion in the same-store sales base was $15.4 million. The net
loss for the fourth quarter of fiscal 2009 was $33.0 million, or $1.72 per
share, compared with a net loss of $11.1 million, or $0.60 per share, for the
comparable quarter last year.
Included in the fourth quarter fiscal 2009 net loss was approximately $2.8
million, or $0.15 per share, associated with store closing costs, as well as
$6.6 million, or $0.34 per share, for incurred losses and increases in inventory
reserves for brands the Company no longer carries. The Company was unable to
record a meaningful tax benefit during the quarter because of loss carry back
limitations. Using the Company`s approximate historical tax rate of 40%, the tax
benefit would have reduced the net loss by approximately $0.59 per share.
Included in the fourth quarter fiscal 2008 net loss was approximately $1.6
million, or $0.09 per share, of costs associated with store closing costs.
At September 30, 2009, inventory declined 56%, or $262.7 million, to $205.9
million compared to $468.6 million as of September 30, 2008. Short-term
borrowings declined 62%, or $230.0 million, to $142.0 million compared to $372.0
million as of September 30, 2008.
During the quarter, the Company`s aggressive inventory reduction strategy drove
the substantial increase in same-store sales as well as the decline in the
Company`s gross profit margins, which contributed to the reported loss. Also as
planned, the Company closed an additional 11 stores during the September
quarter, bringing the total store closures to 26 during fiscal 2009. These
planned store closures were a key component in the Company`s efforts to better
match its fixed costs with the decline in business caused by the soft economic
conditions.
Fiscal Year 2009 Results
Revenue was $588.6 million for the fiscal year ended September 30, 2009 compared
with $885.4 million for fiscal year 2008. Same-store sales declined
approximately 29% compared with a 28% decline for the previous fiscal year. The
net loss for the fiscal year ended September 30, 2009 was $76.8 million, or
$4.11 per share, compared with a net loss of $134.3 million, or $7.30 per share,
for fiscal 2008.
The Company`s results for fiscal year ended September 30, 2009 included $6.2
million, or $0.33 per share, of costs associated with store closings, as well as
$12.6 million, or $0.67 per share, for incurred losses and increases in
inventory reserves for brands the Company no longer represents. The tax benefit
for the fiscal year was also reduced by loss 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 $1.37 per share.
The Company`s results for the fiscal year ended September 30, 2008 included a
non-cash charge of $122.1 million before tax, or approximately $6.28 per share,
related to the impairment of goodwill and intangibles as well as a valuation
allowance related to deferred tax assets. Excluding the non-cash impairment
charge, the net loss was $18.8 million, or $1.02 per share, for the fiscal year
ended September 30, 2008, using the Company`s historical tax rate of
approximately 40%. The loss per share also included $0.09 of store closing costs
and $0.08 per share arising from gains related to insurance proceeds received
associated with the 2007 damages to the Company`s Missouri facilities, a net
gain that resulted from the Company`s retirement of its various mortgage loans
and related interest rate swaps, and a gain related to changes in the Company`s
benefit plans.
William H. McGill, Jr., Chairman, President and Chief Executive Officer, stated,
"Our planned strategy to reduce our inventory levels and strengthen our
competitive position was very successful during the fourth quarter. We reported
our largest sequential inventory reduction to date, dropping significantly from
the June quarter and over $262 million from last year end. Our aggressive
pricing strategy successfully reduced inventory levels and produced substantial
cash flows from operations, resulting in an increase in same-store sales for the
first time in over two years. We believe our September quarter same-store sales
growth well outpaced our industry, yielding market share gains. While our
aggressive pricing strategy helped to drive sales, we were encouraged to see how
well our existing and new customers responded in this economic environment."
Mr. McGill, continued, "Our inventory and cost reduction strategy allowed us to
generate over $200 million of cash flows from operations during fiscal 2009 and
significantly reduce our outstanding borrowings, further strengthening our
financial position. Our key balance sheet ratios improved significantly
year-over year. We believe that the actions we have taken to lower our expense
structure, streamline our store footprint, and reduce our inventory levels
positions us to achieve improved operating margins and take advantage of growth
opportunities in the future. We are encouraged to see so many families seeking
the MarineMax lifestyle of boating and the strength of their passion for this
great recreation."
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,
MarineMax sells new and used recreational boats and related marine products and
provides yacht brokerage services. MarineMax currently has 55 retail locations
and operates within 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 and Texas. 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.
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 ability to achieve
improved operating margins and take advantage of growth opportunities in the
future, 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 and market share 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`s Form 10-K and other filings with the Securities and
Exchange Commission.
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended Fiscal Year Ended
September 30,
September 30,
2009 2008 2009 2008
Revenue $ 207,239 $ 165,600 $ 588,585 $ 885,407
Cost of sales 194,612 123,806 499,925 679,164
Gross profit 12,627 41,794 88,660 206,243
Selling, general, and 45,801 56,414 159,998 217,426
administrative expenses
Goodwill and intangible asset impairment charge -- -- -- 122,091
Loss from operations (33,174 ) (14,620 ) (71,338 ) (133,274 )
Interest expense 2,848 3,566 14,064 20,164
Loss before income tax benefit (36,022 ) (18,186 ) (85,402 ) (153,438 )
Income tax benefit (3,039 ) (7,093 ) (8,630 ) (19,161 )
Net loss $ (32,983 ) $ (11,093 ) $ (76,772 ) $ (134,277 )
Basic net loss per common share $ (1.72 ) $ (0.60 ) $ (4.11 ) $ (7.30 )
Diluted net loss per common share $ (1.72 ) $ (0.60 ) $ (4.11 ) $ (7.30 )
Weighted average number of common shares
used in computing net loss per common share:
Basic and Diluted 19,148,498 18,421,629 18,685,423 18,391,488
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(Unaudited)
September 30, September 30,
2009 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 25,508 $ 30,264
Accounts receivable, net 45,480 35,675
Inventories, net 205,934 468,629
Prepaid expenses and other current assets 12,314 7,949
Deferred tax assets -- 307
Total current assets 289,236 542,824
Property and equipment, net 102,316 113,869
Other long-term assets 2,092 3,424
Deferred tax asset -- 1,206
Total assets $ 393,644 $ 661,323
LIABILITIES AND STOCKHOLDERS` EQUITY
CURRENT LIABILITIES:
Accounts payable $ 15,847 $ 4,481
Customer deposits 4,882 6,505
Accrued expenses 29,328 25,380
Short-term borrowings 142,000 372,000
Total current liabilities 192,057 408,366
Other long-term liabilities 3,831 4,374
Total liabilities 195,888 412,740
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued or outstanding at September 30, 2008 and 2007 -- --
Common stock, $.001 par value, 24,000,000 shares authorized, 21,705,870 and 18,424,487 shares issued and outstanding, net of shares held in treasury, at September 30, 2009 and 2008, respectively 22 19
Additional paid-in capital 204,772 178,830
Retained earnings 8,772 85,544
Treasury stock, at cost, 790,900 shares held at (15,810 ) (15,810 )
September 30, 2009 and 2008
Total stockholders` equity 197,756 248,583
Total liabilities and stockholders` equity $ 393,644 $ 661,323
MarineMax, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information
(Amounts in thousands, except share and per share data)
(Unaudited)
Three months ended Fiscal Year ended
September 30, September 30,
2009 2008 2009 2008
GAAP net income (loss) as reported $ (32,983 ) $ (11,093 ) $ (76,772 ) $ (134,277 )
Impairment of goodwill and indefinite lived intangible assets (net of tax at the historical 40% rate and valuation allowance) -- -- -- (115,469 )
Non-GAAP proforma net income (loss) $ (32,983 ) $ (11,093 ) $ (76,772 ) $ (18,808 )
GAAP diluted net income (loss) per common share $ (1.72 ) $ (0.60 ) $ (4.11 ) $ (7.30 )
Impairment of goodwill and indefinite lived intangible assets (net of tax at the historical 40% rate and valuation allowance) -- -- -- (6.28 )
Non-GAAP proforma diluted net income (loss) per common share $ (1.72 ) $ (0.60 ) $ (4.11 ) $ (1.02 )
Common shares used in the calculations of diluted earnings per common share 19,148,498 18,421,629 18,685,423 18,391,488
MarineMax, Inc.
Michael H. McLamb, 727-531-1700
Chief Financial Officer
or
ICR, LLC
Brad Cohen, 203-682-8211
bcohen@icrinc.com
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