Executing on Strategic Approach for Driving Sales and Managing Inventory
Fiscal First Quarter 2025 Highlights
- Revenue increased 3% to $376 million
- Same-store sales increased 4%, including an increase in units sold
- Gross profit margin of 22.4%, impacted by exiting brands
- GAAP net loss of $14 million, or $(0.81) per diluted share and adjusted diluted loss per share1 of $(0.54)
- Adjusted EBITDA1 of $2 million
"First quarter results exceeded expectations driven by higher unit sales in both new and preowned categories. Our strategic inventory management and operational execution drove outperformance against the industry, and our team did a great job working down inventory. Although these efforts pressured margins in the quarter, higher finance and insurance penetration helped offset the impact, reinforcing the durability of our business model,” commented Austin Singleton, Chief Executive Officer at OneWater.
"We remain cautiously optimistic, supported by a healthy inventory position that enables us to effectively meet customer demand. As the year progresses, we expect further benefit from our ongoing cost reduction initiatives, which continue to strengthen our financial profile.”
| For the Three Months Ended December 31 | 2024 | 2023 | $ Change | % Change | |||||||||||
| Revenues | (unaudited, $ in thousands) | ||||||||||||||
| New boat | $ | 247,997 | $ | 241,084 | $ | 6,913 | 2.9 | % | |||||||
| Pre-owned boat | 56,798 | 53,283 | 3,515 | 6.6 | % | ||||||||||
| Finance & insurance income | 9,400 | 7,360 | 2,040 | 27.7 | % | ||||||||||
| Service, parts & other | 61,619 | 62,286 | (667 | ) | (1.1 | )% | |||||||||
| Total revenues | $ | 375,814 | $ | 364,013 | $ | 11,801 | 3.2 | % | |||||||
Fiscal First Quarter 2025 Results
Revenue for fiscal first quarter 2025 was $375.8 million, an increase of 3.2% compared to $364.0 million in fiscal first quarter 2024. Same-store sales increased 4.2%. New boat revenue increased 2.9%, driven by an increase in units sold. Pre-owned boat revenue increased 6.6%, driven by the increase in units sold and average price per unit. Finance & insurance income increased as a percentage of total boat sales, while service, parts & other sales were down 1.1% compared to the prior year quarter. Distribution segment service, parts, and other sales were lower due to reduced production by boat manufacturers.
Gross profit totaled $84.1 million for fiscal first quarter 2025, down $7.4 million from $91.4 million for fiscal first quarter 2024. Gross profit margin of 22.4% decreased 270 basis points compared to the prior year period, driven by new and pre-owned boat pricing, including the impact of select brands the Company is exiting.
Fiscal first quarter 2025 selling, general and administrative expenses totaled $79.1 million, or 21.0% of revenue, compared to $79.6 million, or 21.9% of revenue, in fiscal first quarter 2024. The decrease in selling, general and administrative expenses as a percentage of revenue was driven by cost reduction actions and higher revenues.
Net loss for fiscal first quarter 2025 totaled $(13.6) million, compared to net loss of $(8.0) million in fiscal first quarter 2024. The Company reported net loss per diluted share for fiscal first quarter 2025 of $(0.81), compared to net loss per diluted share of $(0.49) in 2024. Adjusted diluted loss per share1 for fiscal first quarter 2025 was $(0.54), compared to adjusted diluted loss per share1 of $(0.38) in 2024.
Fiscal first quarter 2025 Adjusted EBITDA1 decreased to $1.9 million compared to $7.1 million for fiscal first quarter 2024.
As of December 31, 2024, the Company's cash and cash equivalents balance was $22.7 million and total liquidity, including cash and availability under credit facilities, was in excess of $40.0 million. Total inventory as of December 31, 2024, decreased 9.9% to $636.7 million, compared to $706.8 million on December 31, 2023, primarily driven by the Company's inventory management and the increase in same-store sales.
Total long-term debt as of December 31, 2024 was $428.3 million, and adjusted long-term net debt (net of $22.7 million cash)1 was 5.2 times trailing twelve-month Adjusted EBITDA1.
Fiscal Year 2025 Guidance
The Company is maintaining its previously issued fiscal full year 2025 outlook. For fiscal full year 2025, OneWater anticipates revenue to be in the range of $1.7 billion to $1.85 billion and dealership same-store sales to be up low single digits. Adjusted EBITDA2 is expected to be in the range of $80 million to $110 million and Adjusted Diluted Earnings Per Share is expected to be in the range of $1.00 to $2.00.
Conference Call and Webcast
OneWater will host a conference call to discuss its fiscal first quarter earnings on Thursday, January 30th, at 8:30 am Eastern time. To access the conference call via phone, participants can dial (+1) 646 564 2877 or (+1) 800 549 8228 (North America Toll Free).
Alternatively, a live webcast of the conference call can be accessed through the "Events” section of the Company's website at https://investor.onewatermarine.com/ where it will be archived for one year.
A telephonic replay will also be available through February 6th, 2025 by dialing (+1) 646 517 3975 (US), (+1) 289 819 1325 (Canada), or (+1) 888 660 6264 (North America Toll Free), and entering access code 94147 #.
- See reconciliation of Non-GAAP financial measures below.
- See reconciliation of Non-GAAP financial measures below for a discussion of why reconciliations of forward-looking Adjusted EBITDA and adjusted earnings per diluted share are not available without unreasonable effort.
| ONEWATER MARINE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) (Unaudited) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Revenues: | |||||||
| New boat | $ | 247,997 | $ | 241,084 | |||
| Pre-owned boat | 56,798 | 53,283 | |||||
| Finance & insurance income | 9,400 | 7,360 | |||||
| Service, parts & other | 61,619 | 62,286 | |||||
| Total revenues | 375,814 | 364,013 | |||||
| Gross profit | |||||||
| New boat | 36,876 | 44,681 | |||||
| Pre-owned boat | 11,216 | 11,937 | |||||
| Finance and insurance | 9,400 | 7,360 | |||||
| Service, parts & other | 26,562 | 27,465 | |||||
| Total gross profit | 84,054 | 91,443 | |||||
| Selling, general and administrative expenses | 79,060 | 79,599 | |||||
| Depreciation and amortization | 5,315 | 4,222 | |||||
| Transaction costs | 559 | 579 | |||||
| Change in fair value of contingent consideration | 242 | 572 | |||||
| Restructuring and impairment | 851 | - | |||||
| Net (loss) income from operations | (1,973 | ) | 6,471 | ||||
| Other expense (income): | |||||||
| Interest expense - floor plan | 7,026 | 7,812 | |||||
| Interest expense - other | 8,988 | 9,152 | |||||
| Other expense (income), net | 887 | (247 | ) | ||||
| Total other expense, net | 16,901 | 16,717 | |||||
| Net loss before income tax benefit | (18,874 | ) | (10,246 | ) | |||
| Income tax benefit | (5,262 | ) | (2,276 | ) | |||
| Net loss | (13,612 | ) | (7,970 | ) | |||
| Net income attributable to non-controlling interests | - | (119 | ) | ||||
| Net loss attributable to non-controlling interests of One Water Marine Holdings, LLC | 1,641 | 919 | |||||
| Net loss attributable to OneWater Marine Inc. | $ | (11,971 | ) | $ | (7,170 | ) | |
| Net loss per share of Class A common stock - basic | $ | (0.81 | ) | $ | (0.49 | ) | |
| Net loss per share of Class A common stock - diluted | $ | (0.81 | ) | $ | (0.49 | ) | |
| Basic weighted-average shares of Class A common stock outstanding | 14,831 | 14,540 | |||||
| Diluted weighted-average shares of Class A common stock outstanding | 14,831 | 14,540 | |||||
| ONEWATER MARINE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Cash | $ | 22,711 | $ | 44,569 | |||
| Restricted cash | 13,847 | 9,584 | |||||
| Accounts receivable, net | 56,912 | 47,885 | |||||
| Inventories | 636,676 | 706,805 | |||||
| Prepaid expenses and other current assets | 67,328 | 78,469 | |||||
| Total current assets | 797,474 | 887,312 | |||||
| Property and equipment, net | 91,499 | 83,221 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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