Good day everyone and welcome to the MarineMax Incorporated fourth 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 Kate Messmer of ICR. Please go ahead.

Thank you, operator. Good morning everyone and thank you for joining this discussion of MarineMax's 2009 fiscal fourth quarter and year-end results. I am sure that you've all received a copy of the press release that went out 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. 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 capitalize on opportunities or grow its market share, 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. As you saw in our press release this morning, we made substantial progress executing our planned strategy of reducing inventory levels during the September quarter. I am very proud of our team’s accomplishment. We believe better alignment with supply and demand as well as improved ageing of our inventory will be key factors in helping to restore profitability to MarineMax. As such, we launched and executed on a planned strategy to finish 2009 with much lower inventory levels and better ageing. While we believe that our inventory reduction in related sales undoubtedly led the industry, we also believe that inventory levels had come down substantially for all dealers and manufacturers, which is an important step towards improving the health of the marine industry in the overall pricing environment. During the quarter, we drove inventory down almost 40% or $134 million from the June quarter. This is the largest sequential reduction to date and this resulted in a very large year-over-year reduction of $263 million or about 56%. The reduction of inventory allowed us to generate substantial cash flows from operations and drive a 41% increase in same-store sales. This is the first same-store sales increase we have reported in more than two years. We generated this increase in sales at a time when industry data is still suggesting decreased sales overall. As such, we believe we have taken market share during this challenged time period, which ultimately will yield future sales for MarineMax as incremental customers we have now added trade into larger and newer products. As planned, we adopted an aggressive pricing strategy to drive sales and improve our inventory position as we took advantage of the enhanced flexibility under our amended credit agreement, which we discussed in our June quarter call.…

Thank you, Bill, and good morning again everyone. For the three months ended September 30, 2009, our fourth quarter revenue increased 25% to $207 million compared to $166 million last year. Our same-store sales increased approximately 41% or about $57 million compared with a 45% decrease in the same quarter last year. Revenue declined approximately $15 million from store closures that are no longer eligible for inclusion in the same-store sales base. I will note that this is the first September quarter where revenue exceeded the June quarter. We generally feel that where we have consolidated stores within a market, our remaining stores in that market will capture the bulk of the sales from the closed stores. The market share data we have seen today as well as the results from this quarter would seem to support this belief. Gross profit as a percentage of revenue decreased to approximately 6% in the fourth quarter from approximately 25% in the prior year. The decrease in our overall gross profit margin was largely due to our planned efforts to aggressively move boats through pricing to drive inventory reductions of aged products. A few items also contributed to the dramatic drop from last year. First, we incurred losses and increased reserves $6.6 million related to brands we no longer carry. Second, because of dramatic reduction and cancellation of orders during 2009, we consciously chose not to qualify for certain manufacturer performance incentive s that typically are earned and paid in the September quarter. Absent these two items, gross margin would have been closer to 11%. We do expect to achieve such performance moneys in fiscal 2010 subject to our ultimate purchase levels, which are dependent on resale activity. I will note that in general we made money at the gross profit line on…

Thank you, Mike. Our successful inventory and expense reduction strategies allow us to settle [ph] today as one of the strongest companies in our industry. Our leaner cost structure should position us for operating margin expansion as conditions improve. As many other retailers struggle or fail through these challenging fall and winter months ahead, we are exploring strategic opportunities including expanding into new markets. Inventories in the channel are dropping but dealer (inaudible) are likely to continue as cash constraints in excess to dealer financing continues to challenge them. Hope is not a strategy but the most encouraging indicator of the future opportunities is that our customers’ passion for boating remains strong and is creating pent-up demand which we may have seen signs of this quarter. Our customers are still out boating with their families and more than ever today are demanding that we provide them with what we do best, which is to teach them, service them, and show them how to have fun. As a result of these factors, we believe that we will emerge from this period in an even stronger competitive position as the industry leading boating retailer, well positioned with the right team and right strategies for market share gains and long-term growth. And with that operator, we will open the call out for questions.

(Operator instructions) We will take our first question from Greg McKinley from Dougherty & Company. Greg McKinley – Dougherty & Company: Yes, good morning. I wanted to understand where you are in your process of inventory reductions, obviously you made significant strides in the September quarter largely due to a clearance activity, I know you indicated your plans would be to have further reductions in inventory levels in 2010, but are you still sort of behaving similarly from a promotional standpoint and clearance standpoint here to start the beginning of a new fiscal year or should we expect to see a fairly quick into some of that real aggressive promotional activity?

Greg, if you look at our mix of inventory, we still have some models as an example in the Freddie Group that we will continue to discount and have (inaudible) some other product that we did not move that we will continue to be aggressive on, but all in all, most of the inventory is fresh as we mentioned and is newer inventory and so we should be able to get back to the higher margins. We just finished up before Lauderdale Boat Show and it as a good show especially for some larger boars, and as we mentioned, the margins seem to be holding up very well on the ’09 products and most of what we have now is ’09. So we are encouraged by the show, we are also encouraged by what looks like October to make a quarter, but looks like October same-store sales are up also. Greg McKinley – Dougherty & Company: Okay.

We have got a little mix issue that we are still working through with some of the products but it is very low and I think we exceeded even our greatest expectation zone for what we did this quarter. Greg McKinley – Dougherty & Company: Okay.

Greg, I would tell you the pockets of challenges that we still have are very manageable and from a total dollar level, we are pretty close to where we need to be on inventory. The team did a great job getting us to where we are now. Greg McKinley – Dougherty & Company: Yes, absolutely. I have looked back historically, typically we see a seasonal increase in inventory levels per store in operation from the September to December quarters, I would imagine your inventory management behaviors through this cycle are not typical. So, are we going to see that surface again or is this sort of a new approach to inventory behavior and we are going to be much more cautious about building inventories on a store basis to start at the beginning of the year?

I think long-term the industry because of its seasonality it is going to be hard to get away from some level of build up in the winter time but I think this time period that we have all just lived through has been so painful that be it from the manufacturer to the dealer, we are all trying to figure out how to build more from, I would call it, just in time but how to build more to demand and to retail than to the way we have done it historically. The answer is going to be kind of a little bit of both, I think you will probably see long term some seasonal build in the winter but it will be less exaggerated than it had been in the past. Greg McKinley – Dougherty & Company: Okay. And then two quick follow-ups. Mike, could you again go through the EBITDA provisions of your debt covenants and explain the adjustments, the $10 million and I think you mentioned stock comp, I just want to make sure I understand how that works again, and if indeed you are saying you have to be flip positive on a cumulative basis equal to your interest expense on an adjusted basis for the full fiscal year in Q4, can you go through that again and then maybe comment on October, you said it is still showing some signs of strength, just how strong of a follow-through have you seen since the September quarter?

Yes, for the EBITDA, the amendment that we did in September is, you take the allowable loss EBITDA that was in the previous agreement and you add $10 million to it basically to increase EBITDA. So, for the December quarter, our maximum allowable EBITDA loss, and EBITDA is the regular definition that you would think about, but then you add back stock compensation, then you also add $10 million on top of that, and we are allowed to have up to $20 million adjusted EBITDA loss basically through the December quarter. Greg McKinley – Dougherty & Company: Okay. So, your as reported EBITDA loss could be something into the mid $30 million range?

Correct. And then, if you look at the six months through June, it is the same $22 million, so the six months through June we need to be below that $22 million – Greg McKinley – Dougherty & Company: Through March.

I am sorry, through March, yes. And then, for the nine months through June, it is $15 million and just so everybody understands, if you actually take those numbers and apply them and calculate an adjusted EBITDA number without the $10 million for 2009, we basically will be in compliance with these numbers anyhow in 2009. Greg McKinley – Dougherty & Company: Okay.

And then if you look at the full year, we have got to cover our EBITDA as adjusted as increase but the $10 million has to cover our interest and we believe that based on the cost initiatives that we have done in terms of getting the stores down to the right level, and number of team members, and inventory levels and all that, we believe that complying with that number should not be a problem for 2010. Greg McKinley – Dougherty & Company: I got you. So on an as adjusted basis, it must be positive for the full fiscal year.

That is correct. Greg McKinley – Dougherty & Company: Okay and what is that $10 million again?

It is the amendment we did in September as we were going out to raise equity, we decided to tie the amendment back where we got additional flexibility in our EBITDA covenant within our facility where we took 50% of our net proceeds and we added it to the EBITDA. So, it was a restructured process to give us additional flexibility in 2010. Greg McKinley – Dougherty & Company: Yes. And then finally, just some comments on the follow-through of strength in October?

October, as Bill alluded to, would be the fourth month that we have actually seen positive same-store sales growth. We have an absolute growth in revenue and with the stores that we closed by default, you are going to have a decent same-store sales numbers. It is not near as strong as it was in the September quarter but also the margins are obviously returning back to where we would like to see them be, they are not all the way back to where they need to be yet but they are coming back up to those levels. So we are pleased that we are able to, I guess, get refocused on what we need to be focused on, which is selling products for a good margin and getting the business aligned towards putting us in the best position to be profitable. Greg McKinley – Dougherty & Company: And just a clarification, absolute growth in revenues, so you are saying you are tracking to do more revenues on 55 stores than you did on 75 stores in the year-ago period.

Yes, I think the number is something like 80 stores in the year-ago period and we have more revenue today in October than we did last year with much more stores, that is correct, I need to obviously add the cautionary statement that Bill added, I mean, one month (inaudible) we don’ t know we got to close all the deals from October from the Fort Lauderdale Boat Show and so forth, but I would rather be able to tell you that we are up than we are down, so take that for what it is worth as we are looking for incremental signs of improvement here. Greg McKinley – Dougherty & Company: Thank you.

Thank you, Greg.

We will take our next question from Ed Aaron from RBC Capital Markets. Ed Aaron – RBC Capital Markets: Good morning everybody.

Good morning Ed. Ed Aaron – RBC Capital Markets: I want to just dive in a little bit deeper on just the process for restoring the price integrity in the business, just it is one of those things that is hard to get back once you lose and as I thought about your company in the past, it is hard to make the model work unless you have gross margins that are north of 20. Can you just maybe talk a little bit about the path of getting back to that level if you do think that those are attainable margins to get back to?

I would tell you Ed that what we have seen in October would tell you that that is realistic for 2010.

Well, plus the fact Ed that we mentioned that in the quarter that the sale of 2009 Sea Rays the margins were comparable with a year ago. So at the end of the day, people are buying a lifestyle, and even though we put out the message that let’s make a deal because we have too much inventory and we are adjusting to this market, and so there were deals there but at the end of the day people are buying a lifestyle and it is not as much about price even though we had to make it that way. But most of our, probably most is a big word, but a lot of our sales that we made during the September quarter were not to our customers. So that is encouraging. So our customers are still out there and of course they are sitting on the edge of their boat seat saying, “Honey, we need the next one that is larger and more innovative and better,” but they are still in the wait-and-see mode Ed because of the uncertainty that is out there with consumer companies. Ed Aaron – RBC Capital Markets: Right. And then historically, I think your revenue per store has trended roughly $13 [ph] million plus or minus, and I am just curious to know what you think that number is going to look like over time because presumably the market is going to be smaller but at the same time you have shed your smaller stores, so what would you kind of look out what you consider to be a more normalized sales environment? What do you think a typical store will contribute in revenue on an annual basis?

Ed, I think you are 100% right, I think mathematically our revenue per store will go up over time even above what it has been historically because we have obviously shrunk our footprint, we plan to tightly control that footprint also as this begins to return, so we can push more volume through the stores, part of that is going to be achieved through the intense focus that the industry has on improving inventory turns.

And Ed, the necessity to have 90 plus stores with some of it was because there was a lot more competitors out there than there are today. We are seeing a lot of fall-outs in the markets even in the selling seasons that we just finished and we believe there will even be more. So the willingness of a customer to travel a little bit further to go to our main store it is not complicated by the fact that there is a dealer down the street that is a little easier for him to get to. So we think that will help leverage this 55 store that we have even better. Ed Aaron – RBC Capital Markets: Right, thank you.

There are no questions in queue. At this time, I would like to turn the call back over to Bill McGill for any closing remarks.

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 our business in upholding the high standards of customer service. They worked with us to transform our business during these difficult times and positioned us for growth in the future. Mike and I are available today, if you have any additional questions. So, thank you everyone.

This concludes today’s presentation. Thank you for your participation.