OneWater Marine has announced its financial results for the fiscal first quarter ended 31 December 2024.
OneWater Marine operates 96 retail locations, 10 distribution centres and multiple online marketplaces across 19 states in the US. The company offers new and pre-owned boats, finance and insurance products, parts and accessories, as well as maintenance, repair and other services.
Revenue for the quarter increased by 3.2 per cent to $375.8m, compared to $364m in the same period of the previous year. Same-store sales rose by 4.2 per cent. Revenue from new boats grew by 2.9 per cent, driven by higher unit sales. Pre-owned boat revenue increased by 6.6 per cent due to higher sales volumes and average pricing. Finance and insurance income rose, while sales in service, parts and other categories declined by 1.1 per cent, reflecting lower production levels from boat manufacturers.
Gross profit for the quarter totalled $84.1m, down from $91.4m in the prior year period. The gross profit margin of 22.4 per cent represented a decline of 270 basis points, attributed to pricing adjustments for new and pre-owned boats, including the effect of brands the company is exiting.
Selling, general and administrative expenses were $79.1m, or 21 per cent of revenue, compared to $79.6m, or 21.9 per cent of revenue, in the same quarter of the previous year. The decrease as a percentage of revenue was linked to cost reduction measures and higher sales.
Net loss for the quarter was $13.6m, compared to a net loss of $8m in the same period last year. Net loss per diluted share was $0.81, compared to $0.49 in the prior year quarter. Adjusted diluted loss per share was $0.54, compared to $0.38 in the previous year. Adjusted EBITDA totalled $1.9m, down from $7.1m a year earlier.
As of 31 December 2024, cash and cash equivalents stood at $22.7m, with total liquidity, including credit facility availability, exceeding $40m. Inventory decreased by 9.9 per cent to $636.7m, compared to $706.8m at the end of 2023, reflecting inventory management efforts and higher same-store sales.
Total long-term debt at the end of the quarter was $428.3m. Adjusted long-term net debt, after accounting for available cash, was 5.2 times trailing twelve-month adjusted EBITDA.
Austin Singleton, chief executive officer at OneWater, says: “First quarter results exceeded expectations driven by higher unit sales in both new and pre-owned 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.”
He adds: “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.”
OneWater Marine fiscal year 2025 outlook
OneWater Marine has maintained its previously issued full-year outlook for fiscal 2025. Revenue is expected to be between $1.7bn and $1.85bn, with same-store sales projected to grow in the low single digits. Adjusted EBITDA is anticipated to be between $80m and $110m, while adjusted diluted earnings per share are expected to range from $1 to $2.
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