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MarineMax Inc. Reports Operating Results (10-Q)

February 07, 2012 | About:
10qk

10qk

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MarineMax Inc. (HZO) filed Quarterly Report for the period ended 2011-12-31.

Marinemax Inc. has a market cap of $204.5 million; its shares were traded at around $8.73 with and P/S ratio of 0.4.

Highlight of Business Operations:

General economic conditions and consumer spending patterns can negatively impact our operating results. Unfavorable local, regional, national, or global economic developments or uncertainties regarding future economic prospects could reduce consumer spending in the markets we serve and adversely affect our business. Economic conditions in areas in which we operate dealerships, particularly Florida in which we generated 45%, 54%, and 50% of our revenue during fiscal 2009, 2010, and 2011, respectively, can have a major impact on our operations. Local influences, such as corporate downsizing, military base closings, inclement weather, environmental conditions, and specific events, such as the BP oil spill in the Gulf of Mexico, also could adversely affect our operations in certain markets.

Revenue. Revenue decreased $403,000, or 0.4%, to $91.8 million for the three months ended December 31, 2011 from $92.2 million for the three months ended December 31, 2010. Of this decrease, $2.5 million was attributable to stores opened or closed that were not eligible for inclusion in the comparable-store base for the three months ended December 31, 2011, which was partially offset by a $2.1 million, or 2.4%, increase in comparable-store sales. The increase in our comparable-store sales was due to incremental increases in new boat sales, partly attributable to new brands, and incremental increases in brokerage services, F&I products, and service, parts and accessories products, partially offset by a decline in used boat sales.

Gross Profit. Gross profit increased $2.0 million, or 8.4%, to $25.6 million for the three months ended December 31, 2011 from $23.6 million for the three months ended December 31, 2010. Gross profit as a percentage of revenue increased to 27.9% for the three months ended December 31, 2011 from 25.6% for the three months ended December 31, 2010. The three months ended December 31, 2010 included a favorable resolution of approximately $700,000 of inventory repurchases from a manufacturer whose brands we no longer carry, which benefited gross margins approximately 0.8%. The increase in gross profit as a percentage of revenue was primarily a result of generally higher margins on all segments of products and the incremental expansion of our higher margin brokerage services, F&I products, and service, parts and accessories products as a percentage of our overall revenue in the December 2011 quarter compared with the comparable period last year.

Selling, General, and Administrative Expenses. Selling, general, and administrative expenses increased $1.1 million, or 4.1%, to $28.5 million for the three months ended December 31, 2011 from $27.4 million for the three months ended December 31, 2010. Selling, general, and administrative expenses as a percentage of revenue increased to 31.1% for the three months ended December 31, 2011 from 29.8% for the three months ended December 31, 2010. The three months ended December 31, 2010 included a benefit of approximately $700,000 from a favorable resolution of accounts receivable from a manufacturer whose brands we no longer carry. Excluding this item would have resulted in an increase in selling, general, and administrative expenses as a percentage of revenue of approximately 1.7% to 31.1% for the three months ended December 31, 2011 from 30.5% for the three months ended December 31, 2010. This increase in selling, general, and administrative expenses (with such adjustment) as a percentage of revenue was primarily attributable to increased compensation for improved store and department performance.

Interest Expense. Interest expense increased $374,000, or 44.4%, to $1.2 million for the three months ended December 31, 2011 from $843,000 for the three months ended December 31, 2010. Interest expense as a percentage of revenue increased to 1.3% for the three months ended December 31, 2011 from 0.9% for the three months ended December 31, 2010. The increase was primarily a result of increased borrowings under our credit facilities due to increased inventories.

Read the The complete Report

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