West Marine's net income jumps to US$34.5m for Q2
By IBI Magazine
West Marine today reported a jump in net income to US$34.5m for its second quarter ended July 4, 2009, compared to net income of US$4.4m a year ago. Earnings per share also jumped to US$1.46 compared to US$0.20 a year ago. The company earlier reported sales of US$215.4m for the quarter, down 5 per cent compared to the same period a year ago. Same-store sales were down by 1 per cent. "We are extremely pleased with our operating results for the second quarter," said Geoff Eisenberg, CEO, in a statement. "Our profitability and cash flow increased significantly, and we dramatically lowered debt." Cash from operating activities year-to-date was US$45.3m, an increase of US$29.0m compared to last year. Its long-term debt at quarter-end was US$18.0m, a decrease of $33.0m, or 64.7 per cent, compared to the same period last year. Eisenberg said a movement toward "do-it-yourself" projects among boaters and the "demise" of Boater's World helped boost sales. He noted that sales in its wholesale Port Supply division to boat builders has been adversely impacted by a "soft" new boat market. "But the relative strength in retail, which has been better than we anticipated, positively impacted our results," added Eisenberg. At 10:30 EST, its shares traded at 8.01, a 15 per cent gain from the day's opening of 7.55.
(30 July 2009)
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