Good day everyone and welcome to the MarineMax Incorporated Third Quarter Fiscal 2009 Earnings Conference Call. Today's call is being recorded. At this time for opening remarks and introduction, I would like to turn the call over to Ms. Kate Messmer of ICR. Please go ahead ma'am.

Thank you, operator. Good morning everyone and thank you for joining this discussion of MarineMax's 2009 fiscal third quarter results. I am sure that you've all received a copy of the press release that went off this morning. But if you have not, please call Linda Cameron at 727-531-1700, and she will fax or e-mail one to you. I would now like to introduce the management team of MarineMax, Bill McGill, Chairman, President and CEO; and Mike McLamb, CFO of the company. Management will make some comments and then will be available for your questions. Mike?

Thank you, Kate. Good morning, everyone, and thank you for joining this call. Before I turn the call over to Bill, I'd like to tell you that certain of our comments are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements involve uncertainties that may cause actual results to differ materially from expectations. These risks include, but are not limited to the impact of seasonality and weather, general economic conditions and the level of consumer spending, the company's ability to reduce its inventory and related financing, and numerous other factors identified in our Form 10-K and other filings with the Securities and Exchange Commission. With that in mind, I'd like to turn the call over to Bill.

Thank you, Mike and good morning everyone. During the June quarter the marine retailing environment continue to be adversely impacted by the soft economy, more restrictive retail lending practices and shaken consumer confidence. All caused by general uncertainty. And in addition to these macro factors, we also faced challenges brought about by dealer failures and re-possessions of boats previously sold, which create short term dumping of products resulting in margin pressure. Despite these challenges, I am pleased that we significant progress towards our stated goals of reducing expenses and inventory during the quarter. We are able to report another substantial reduction and expenses with the decline of approximately 17 million in the quarter on a comparable basis versus the prior year. In fact, we generated 17% more revenue in our June quarter than our March quarter and our expenses were only up 3% after excluding unusual items in both periods. Keep in mind, the March quarter reflected substantial cost savings as well. Our improved cost structure reflects the actions we've taken to downsize our business in response to weaker retail demand. Specifically, the savings we've realize have come from reducing the number of team members, closing storage and looking for opportunities to lower our cost in just about every area of our business. The team member reductions continue to be the most difficult decisions to make as they impact back families, but unfortunately are necessary during these difficult times. We closed nine stores during the quarter, bringing us to a total of 65 stores compared to the 87 at the same time last year. We continue to evaluate our footprint on a market by market store by store basis to make sure that we achieve the optimum balance between serving our customer base and achieving the necessary throughput for our…

Thank you, Bill, and good morning again everyone. For the three months ended June 30th, 2009, our third quarter revenue was 151 million compare to 271 million last year. Our same store sales declined approximately 39% or about 95 million compared with the 27% decrease in the same quarter last year. Additionally, revenue declined approximately 25 million from stores closed that are no longer eligible for inclusion in the same store sales space. Generally during the quarter, we continued to experience softness across all of our markets and segments that we participate. Gross profit as a percentage of revenue decreased approximately 130 basis points to 21.5%. The decrease in our overall gross profit margin was largely due to our more aggressive pricing to drive inventory reductions. As Bill mentioned, given the flexibility afforded by our amendment, we expect to continue this aggressive stance throughout the September quarter. Our selling, general and administrative expenses decreased approximately 24.5% or about 12.6 million during the quarter. However, the current quarter includes about 2 million of unusual expenses for store closing costs. And we also had about 400,000 of loan closing costs associated with our recent amendment. Likewise, the June 2008 quarter had about 2.6 million of unusual gains for items like business interruption insurance, cancelled interest rate swaps and changes to our benefit plans. When factoring in these items, we have actually reduced our expenses by about 33% on a year-over-year basis. And as Bill mentioned, our expenses were close to flat sequentially for March while rising revenues 17%. Interest expense decreased approximately 29% to 3.4 million as a result of reduction our average borrowings underlying the credit. As for income taxes, it is important to note as we've mentioned in the past, our loss carry back is limited by the current tax…

Thank you, Mike. As we continue to navigate our company through this challenging environment, our industry leading possession should offer opportunities for us to consider expanding into new markets and/or leveraging our existing brands. We continue to pursue market share gains aggressively and evaluate other potential growth opportunities. I want to also reiterate that MarineMax has amassed substantial tangible network over the years, which provides us with the financial strength to weather the storm and emerge as a stronger company when industry growth returns. We are working to capitalize on our competitors' weaknesses and take the necessary actions to transform MarineMax into a lean organization both in terms of inventory and also expense levels. I am confident that these actions will put MarineMax in a position for even stronger growth when the economy begins to recover. As we approach in plan for fiscal 2010, the challenges facing the retail boating industry are expected to exist for the foreseeable future. While glimmers of economic hope are reported more frequently now than several months ago, it seems clear to most that recovery will take longer than typical recessions. Retail financing while incrementally improving is still harder to secure than it has been and continues to make it difficult for us to close deals. The less favorable retail lending environment also impacts our ability to drive financial insurance profits, which is as you know have historically been one of our highest margin businesses. We believe that dealer failures are likely going to escalate as we head into the winter. Again that's were challenge us on our margin line and our market share on a short-term basis until the pipeline have deeply discounted re-possessions are sold. On the other hand, these challenges they confront the industry should very well turned into long-term benefits for…

Thank you, Mr. McGill. The question-and-answer session will be conducted electronically. (Operator Instructions). And our first question comes from Joe Hovorka with Raymond James.

Thanks guys. I just want to -- you said July retail was actually up?

Well, first of all thanks for asking the question, Joe. I thought we did such a good job with the script that we'd addressed anybody's question. But, yes, July will end up for us, I don't know the degree that it's going to be usually you guys ask us that question. I wanted to be proactive and say it in the script. And also wanted to put a lot of caveats around that we are driving business pretty hard, we're being aggressive. But July finish up for MarineMax.

Okay, that was my next question. So part of that is, you increase the amount of discounts in July versus what you did in the June quarter?

Yes.

That is fair to say.

Fair to say.

As we are being up, we're being very aggressive to move the inventory out and basically any buyers or potential buyers we have -- we are making sure they do not leave that we -- they received the deal of life time in some cases.

And the comps as you went through the June quarter, I am assuming June was the best of the three months?

They roll pretty close to the same, to be honest with you. There wasn't any events during the June quarter a year ago to make us have an easier or a harder comp this year. They were all in that 35 to 40% down. I know there is some statistics out there, saying that some data points to June maybe being little bit better than the prior year. But I think it was pretty much the same. And for us, as it had -- each of the months are about the same, Joe, I apologize.

Okay. Great. Thanks guys.

Thanks.

Thank you, Joe.

(Operator Instructions).

I think we did such a good job, Bill.

Well, then I'll do the closing statement operator. So, thank you everyone for your continued interest and support in MarineMax. I would also like to thank our team members for their hard work and their passion for the business and serving our customers during these challenging times. They are truly they keyed our industry at leading position. Mike and I are available all day, if you have any additional questions. Thank you everyone.

Ladies and gentlemen that thus conclude today's conference. We thank you for your participation.