MarineMax Reports Second Quarter Fiscal 2014 Results

CLEARWATER, Fla.--()--MarineMax, Inc. (NYSE:HZO), the nation’s largest recreational boat retailer, today announced results for its second quarter ended March 31, 2014.

Revenue was $136.6 million for the quarter ended March 31, 2014 compared with approximately $160.0 million for the comparable quarter last year. Same-store sales declined approximately 16%, primarily due to weather, following two consecutive March quarters of double digit percentage same-store sales growth on a year-over-year basis. The Company reported a net loss of less than $2.0 million, or $0.08 per share for the quarter ended March 31, 2014 compared to a net income of $344,000, or $0.01 per share, for the comparable quarter last year.

Revenue decreased 5% to $246.2 million for the six months ended March 31, 2014 compared with $259.1 million for the comparable period last year. Same-store sales decreased approximately 6% as compared to a 10% increase in the comparable period last year. The Company’s net loss for the six months ended March 31, 2014 was $5.3 million, or $0.22 per share, compared with a net loss of $3.8 million, or $0.17 per share, for the comparable period last year.

William H. McGill, Jr., Chairman, President, and Chief Executive Officer, stated “While we worked hard to overcome challenging weather conditions that impacted not only our entire industry, but many consumer facing businesses, we were pleased with our team’s ability to continue to drive margin expansion despite our need to aggressively promote the business this past quarter. We believe that many of the potential sales that did not close in the second quarter, have likely been deferred to later quarters. We expect to benefit from our broad selection of brand offerings and recent brand additions, and believe that our strong balance sheet, strategically placed inventory and improving market conditions position us well for the future.”

Mr. McGill continued, “We are confident in the long term industry recovery cycle and the significant upside that exists for MarineMax. As we head into the prime boating season, we believe our team is poised to increase market share, grow margins and deliver the best possible experience to our passionate customers. We also believe we have a strong foundation in place and are well positioned to drive positive cash flow growth as consumer confidence returns.”

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, Grady-White, Bayliner, Harris FloteBote, Crest, Scout, Sailfish, Scarab Jet Boats, Aquila, Ocean Alexander, Nautique and Malibu, MarineMax sells new and used recreational boats and related marine products and services as well as provides yacht brokerage and charter services. MarineMax currently has 55 retail locations in Alabama, Arizona, California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas and operates MarineMax Vacations in Tortola, British Virgin Islands. MarineMax is a New York Stock Exchange-listed company. For more information, please visit www.marinemax.com.

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 the Company's anticipated financial results for the second quarter ended March 31, 2014; its belief that many of the potential sales that did not emerge in the second quarter have likely been deferred to later quarters; its expectation to benefit from its broad selection of brand offerings and recent brand additions; its belief that its strong balance sheet, well-positioned inventory and improving market conditions position it well for the future; its confidence in the long term industry recovery cycle and the significant upside that exists for it; its belief that its team is poised to take market share, grow margins and deliver the best possible experience to its customers; its belief that it has a solid foundation in place and its belief that as consumer confidence returns it is well positioned to drive positive cash flow growth. 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 Company’s abilities to reduce inventory, manage expenses and accomplish its goals and strategies, the quality of the new product offerings from the Company's manufacturing partners, general economic conditions, as well as those within our industry, the levels and timing 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 for the fiscal year ended September 30, 2013, subsequent Reports on Form 8-K and 10-Q 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   Six Months Ended
March 31, March 31,
2014   2013 2014   2013
Revenue $ 136,615 $ 160,008 $ 246,206 $ 259,059
Cost of sales 101,829   122,358   181,510 195,131  
 
Gross profit 34,786 37,650 64,696 63,928
Selling, general, and administrative expenses 35,687   36,100   67,969 65,543  
 
Income (loss) from operations (901 ) 1,550 (3,273 ) (1,615 )
Interest expense 1,078   1,166   2,075 2,163  
 
Income (loss) before income tax provision (1,979 ) 384 (5,348 ) (3,778

)

 

Income tax provision

-

  (40 )

-

(40 )
 
Net income (loss) $ (1,979 ) $ 344   $ (5,348 ) $ (3,818

)

 

 
Basic net income (loss) per common share $ (0.08 ) $ 0.01   $ (0.22 ) $ (0.17

)

 

 
Diluted net income (loss) per common share $ (0.08 ) $ 0.01   $ (0.22 ) $ (0.17

)

 

 
Weighted average number of common shares used in computing net income (loss) per common share:
Basic 23,845,302   23,188,450   23,779,913 23,070,798  
 
Diluted 23,845,302   24,019,409   23,779,913 23,070,798  
 
   
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 
March 31, March 31,
2014 2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 30,798 $ 30,092
Accounts receivable, net 24,232 21,755
Inventories, net 260,396 230,705
Prepaid expenses and other current assets 4,141 3,468
 
Total current assets 319,567 286,020
Property and equipment, net 100,475 103,075
Other long-term assets, net 5,662 4,462
 
Total assets $ 425,704 $ 393,557
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 9,771 $ 8,250
Customer deposits 15,035 18,244
Accrued expenses 19,221 23,242
Short-term borrowings 160,104 141,132
 
Total current liabilities 204,131 190,868
Long-term liabilities 394 1,811
 
Total liabilities 204,525 192,679
STOCKHOLDERS’ EQUITY:
Preferred stock

-

-

Common stock 25 24
Additional paid-in capital 226,443 219,637
Retained earnings (accumulated deficit) 10,521 (2,973 )
Treasury stock (15,810 ) (15,810 )
 
Total stockholders’ equity 221,179 200,878
 
Total liabilities and stockholders’ equity $ 425,704 $ 393,557
 

Contacts

MarineMax, Inc.
Michael H. McLamb
Chief Financial Officer
or
Abbey Heimensen
Public Relations
727-531-1700
or
ICR, Inc.
Brad Cohen, 203-682-8211
bcohen@icrinc.com

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Contacts

MarineMax, Inc.
Michael H. McLamb
Chief Financial Officer
or
Abbey Heimensen
Public Relations
727-531-1700
or
ICR, Inc.
Brad Cohen, 203-682-8211
bcohen@icrinc.com