MarineMax Reports Third Quarter 2002 Results; EPS of $0.49 Surpasses Previously Announced Range.Business EditorsCLEARWATER Clearwater, city, United States Clearwater, residential and resort city (1990 pop. 98,784), seat of Pinellas co., W central Fla., on the Pinellas peninsula, between Clearwater Bay and the Gulf of Mexico; inc. 1891. , Fla.--(BUSINESS WIRE)--July 23, 2002 MarineMax, Inc. (NYSE NYSE See: New York Stock Exchange : HZO HZO Herpes Zoster Ophthalmicus ), the nation's largest recreational boat retailer, today announced revenue and earnings for its third fiscal quarter and nine-month fiscal period ended June June: see month. 30, 2002. The Company reported a 3% increase in third quarter revenue to $170.6 million compared to $165.5 million for the comparable quarter last year. The revenue increase was primarily due the to the recent acquisition of Gulfwind Marine's three stores in the Sarasota, Florida Sarasota is a city located in Sarasota County on the central west coast of Florida, USA. Its official limits include Sarasota Bay and several barrier islands between the bay and the Gulf of Mexico. area, but was offset by a 6% decline in same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. . The decline in same-store sales is attributable to ongoing soft economic and market conditions. Net income for the three-month period ended June 30, 2002 decreased 6% to $7.7 million, or $0.49 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income of $8.2 million, or $0.54 per diluted share, in the comparable quarter last year. For the nine-month period ended June 30, 2002, revenue increased 3% to $405.0 million compared to $392.7 million for the nine-month period ended June 30, 2001. The revenue increase was driven by the recent Sarasota, Florida acquisition, while same-store sales remained flat. Net income for the nine-month period ended June 30, 2002 increased 2% to $10.9 million, or $0.70 per diluted share, compared to net income of $10.7 million, or $0.70 per diluted share, in the comparable period last year. William H. McGill, Jr., Chairman and Chief Executive Officer, stated, "We are pleased to report better than expected third quarter results. As a result of the soft market conditions, our retail traffic trailed previous levels, resulting in continued sales and margin pressure. However, we remain focused on our retailing strategy, which centers around always taking care of our customers and delivering a family-oriented recreational activity that can be enjoyed close to home. This strategy once again produced industry leading results. "I am pleased to report the Sarasota acquisition integration, which was our largest acquisition since our public offering, is proceeding as planned, allowing us to better serve consumers in the large and growing west Florida
West Florida was a region on the north shore of the Gulf of Mexico, which underwent several boundary and sovereignty changes during its history. boating community. The acquisition has contributed to our revenue and added to our economies of scale. It also reinforces the fact that MarineMax provides growth and liquidity opportunities for the owners of marine retailers and their teams," McGill added. Mr. McGill concluded, "We believe our financial strength and extensive retail platform positions MarineMax for sales and earnings growth. While we wait for clear indications that market conditions are improving, we will continue to strengthen our team and utilize our strong balance sheet to expand opportunistically. Operationally, we remain committed to increasing profitability and mitigating mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. pricing pressure by complimenting our practices with an expanded emphasis on high-margin businesses, such as service, parts, finance and insurance activities. This diversity, along with our focus on cost-containment initiatives, should maximize our profits going forward." Based on current business conditions, MarineMax is reiterating its recent fiscal 2002 earnings per diluted share guidance in the range of $0.93 to $0.95 and fiscal 2003 earnings guidance in the range of $1.05 to $1.10 per diluted share. Headquartered in Clearwater, Florida Clearwater is a city located in central Pinellas County, Florida, USA, nearly due west of Tampa. As of the 2000 census, the city had a total population of 108,787; however, according to the 2005 U.S. Census Bureau's estimates, the city's population fell slightly to 108,687. , MarineMax is the nation's largest recreational boat retailer. Focused on premium brands, such as Sea Ray, Boston Whaler Boston Whaler, or just "Whaler," is a brand of motorboat manufactured in the United States. Classically, a Whaler is characterized by a foam-cored fiberglass hull (often twin V-hull in design), with an outboard motor and center steering console. and Hatteras, the Company sells new and used recreational boats and related marine products, and provides yacht yacht: see motorboating; sailing. yacht Sail- or motor-driven vessel used for racing or recreation. The term is popularly applied to large recreational engine-powered boats; the sailboats known as yachts and used for racing are usually light and brokerage service through its Motor Yachts division. The Company currently operates 57 retail locations in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). , Florida, Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , Minnesota, Nevada, New Jersey, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Ohio, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Texas and Utah. MarineMax is a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Stock Exchange-listed Company. Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. 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 service revenue enhancements revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. , the effectiveness of cost-containment initiatives, general economic conditions and the level of consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. , the Company's ability to integrate acquisitions into existing operations and numerous other factors identified in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other filings with the Securities Exchange Commission.
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Results of Operations
(Unaudited amounts in thousands, except share and per share data)
For the Three-Month Period For the Nine-Month Period
Ended June 30, Ended June 30,
------------------------ ------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Revenue $ 170,595 $ 165,544 $ 404,975 $ 392,690
Cost of sales 130,466 127,301 317,568 304,459
----------- ----------- ----------- -----------
Gross profit 40,129 38,243 87,407 88,231
Selling, general
and
Administrative
expenses 27,126 24,240 68,781 69,228
----------- ----------- ----------- -----------
Income from
operations 13,003 14,003 18,626 19,003
Interest expense,
net 478 732 909 1,600
----------- ----------- ----------- -----------
Income before
income taxes 12,525 13,271 17,717 17,403
Income tax
provision 4,822 5,056 6,821 6,700
----------- ----------- ----------- -----------
Net income $ 7,703 $ 8,215 $ 10,896 $ 10,703
=========== =========== =========== ===========
Basic net income
per common share $ 0.50 $ 0.54 $ 0.71 $ 0.70
=========== =========== =========== ===========
Diluted net income
per common share $ 0.49 $ 0.54 $ 0.70 $ 0.70
=========== =========== =========== ===========
Shares used in
computing net
income per common
share:
Basic 15,276,721 15,193,995 15,260,289 15,213,477
=========== =========== =========== ===========
Diluted 15,780,582 15,231,290 15,519,392 15,225,911
=========== =========== =========== ===========
MarineMax, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited amounts in thousands, except share data)
June 30, June 30,
2002 2001
----------- -----------
ASSETS
CURRENT ASSETS:
Cash $ 13,257 $ 16,371
Accounts Receivable, net 25,402 22,623
Inventories 163,315 156,768
Prepaids and other current assets 4,133 2,812
----------- -----------
Total current assets 206,107 198,574
Property and equipment, net 64,352 50,237
Goodwill and other assets 49,490 40,155
Other long-term assets 1,176 624
----------- -----------
Total assets $ 321,125 $ 289,590
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 13,795 $ 10,300
Customer deposits 8,140 12,271
Accrued expenses 16,478 14,891
Short-term borrowings 125,000 115,000
Current maturities of long-term debt 1,308 770
Current deferred tax liability 292 14
----------- -----------
Total current liabilities 165,013 153,246
Long-term debt, net of current maturities 12,868 8,063
Other liabilities 1,014 3,561
Deferred tax liability 3,274 1,826
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value, 1,000,000
shares authorized, none issued or
outstanding -- --
Common stock, $.001 par value; 24,000,000
shares authorized, 15,278,625 and 15,195,710
shares issued and outstanding at June 30,
2002 and 2001, respectively 15 15
Additional paid-in capital 63,974 63,925
Treasury stock, at cost, 2,349 and 81,413
shares held at June 30, 2002 and 2001,
respectively (18) (501)
Retained earnings 74,985 59,455
----------- -----------
Total stockholders' equity 138,956 122,894
----------- -----------
Total liabilities and stockholders'
equity $ 321,125 $ 289,590
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