MarineMax Reports Record Second Quarter Results; Same-store sales growth exceeds 14%; Net income increases 22%
CLEARWATER, Fla.--April 20, 2006--MarineMax, Inc. , the nation's largest recreational boat retailer, today announced record results for its second quarter of fiscal 2006.Revenue grew 25.8% to $287.4 million for the quarter ended March 31, 2006 from $228.4 million for the comparable quarter last year. Same-store sales increased 14.4%, or $32.7 million, following an 11.4% increase in the same quarter last year. Net income increased over 22.5% to $8.6 million, or $0.46 per diluted share, from net income of $7.0 million, or $0.39 per diluted share, for the second quarter of fiscal 2005.
Revenue grew 13.6% to $468.6 million for the six-month period ended March 31, 2006 compared with $412.6 million for the comparable period in fiscal 2005. Same-store sales increased 6.3% on top of a 13.6% increase in the year ago period. Net income for the six-months ended March 31, 2006 was $9.3 million, or $0.50 per diluted share, compared with net income of $9.8 million, or $0.57 per diluted share, for the comparable period last year.
The Company's results for the six-month period ended March 31, 2006 include after-tax expenses of approximately $700,000, or $0.04 per diluted share, for direct costs associated with Hurricane Wilma. These costs exclude the indirect costs associated with inefficiencies, lost productivity and downtime also caused by the hurricane. Additionally, during this same period, the Company began expensing stock options as required by Statement of Financial Accounting Standards No. 123R, "Share-Based Payment." During the six-months ended March 31, 2006, the Company recorded compensation expense for stock options of approximately $1.2 million after-tax, or $0.07 per diluted share.
William H. McGill, Jr., Chairman, President and Chief Executive Officer stated, "The ongoing success MarineMax has achieved shows that we are building one of the strongest brands in the recreational industry. Our team continues to execute in an exemplary manner our customer centric strategies, yielding our market leading results. Our results validate our belief that buyers of premium products are resilient and want a full service approach to enhance their boating experience."
"In addition, we were able to capitalize on our very strong balance sheet and complete our largest acquisition to date," Mr. McGill continued. "The Surfside-3 Marina acquisition, which we completed on March 31, will allow us to enter the sizable New York market and expand the MarineMax North-South connection from New England to Florida. We are now even better equipped to take care of our customers along this popular and important boating route as we remain dedicated to promoting the benefits of MarineMax boating by providing quality service and superior products."
Based on current business conditions, retail trends, other factors and the recently announced acquisition of Surfside-3 Marina, Inc., MarineMax is updating its previously announced fiscal 2006 guidance to a range of $2.05 to $2.13 per diluted share from $1.89 to $2.01, both of which include an estimated charge of $0.10 per diluted share, based on current assumptions related to stock-based compensation expense as required by Statement of Financial Accounting Standards No. 123R, "Share-Based Payment."
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, Hatteras, Grady White, Ferretti Yachts, Pershing, Riva, Mochi Craft, Apreamare, Bertram and Azimut the Company sells new and used recreational boats and related marine products and provides yacht brokerage services. The Company currently operates 85 retail locations in Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Maryland, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, 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 strength of our products and the performance of our team; our competitive position in the boating market; the success of our strategies; our ability to capitalize on improving industry trends; our ability to continue long-term growth; our ability to achieve market share gains and increase stockholder value; and our earnings guidance for fiscal 2006. 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 goals and strategies, the success of the acquisition program, 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's Form 10-K and other filings with the Securities 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,
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Revenue $287,387 $228,384 $468,571 $412,572
Cost of sales 218,812 173,368 355,648 313,432
----------- ----------- ----------- -----------
Gross profit 68,575 55,016 112,923 99,140
Selling, general, and
administrative expenses 50,088 40,921 90,560 78,061
----------- ----------- ----------- -----------
Income from
operations 18,487 14,095 22,363 21,079
Interest expense 4,294 2,704 7,055 5,088
----------- ----------- ----------- -----------
Income before income
tax provision 14,193 11,391 15,308 15,991
Income tax provision 5,605 4,385 6,056 6,156
----------- ----------- ----------- -----------
Net income $8,588 $7,006 $9,252 $9,835
=========== =========== =========== ===========
Basic net income per
common share $0.49 $0.42 $0.52 $0.61
=========== =========== =========== ===========
Diluted net income per
common share $0.46 $0.39 $0.50 $0.57
=========== =========== =========== ===========
Weighted average number
of common shares used
in computing net
income per common
share:
Basic 17,705,799 16,505,919 17,658,304 16,137,974
=========== =========== =========== ===========
Diluted 18,751,417 17,834,520 18,638,117 17,392,389
=========== =========== =========== ===========
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
(Unaudited)
March 31, March 31,
2006 2005
--------- ---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $14,938 $20,928
Accounts receivable, net 59,406 32,374
Inventories, net * 514,548 354,664
Prepaid expenses and other current assets 5,722 5,046
Deferred tax assets 4,929 3,873
--------- ---------
Total current assets 599,543 416,885
Property and equipment, net 120,939 88,164
Goodwill and other intangible assets, net 116,204 56,177
Other long-term assets 4,756 658
--------- ---------
Total assets $841,442 $561,884
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $27,613 $69,505
Customer deposits 39,353 23,426
Accrued expenses 30,329 23,668
Short-term borrowings 385,000 155,000
Current maturities of long-term debt 3,607 3,116
--------- ---------
Total current liabilities 485,902 274,715
Deferred tax liabilities 11,285 9,982
Long-term debt, net of current maturities 23,660 21,322
--------- ---------
Total liabilities 520,847 306,019
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value, 1,000,000 shares
authorized, none issued or outstanding at March 31,
2006 and 2005 -- --
Common stock, $.001 par value, 24,000,000 shares
authorized, 18,684,686 and 17,510,836 shares issued
and outstanding at March 31, 2006 and 2005,
respectively 19 18
Additional paid-in capital 150,629 122,307
Deferred stock compensation -- (2,775)
Retained earnings 170,176 136,933
Accumulated other comprehensive income 389 --
Treasury stock, at cost, 30,000 shares held at
March 31, 2006 and 2005 (618) (618)
--------- ---------
Total stockholders' equity 320,595 255,865
--------- ---------
Total liabilities and stockholders' equity $841,442 $561,884
========= =========
* = Inventories include approximately $120 million associated with the Port Arrowhead Group and Surfside-3 Marina acquisitions completed during the March 2006 quarter.