Revenue Performance - Fiscal first quarter 2025 revenue was $375.8 million, a 3.2% increase from $364.0 million in the same quarter of 2024[4] - New boat revenue increased by 2.9% to $248.0 million, while pre-owned boat revenue rose by 6.6% to $56.8 million[4] - Finance and insurance income grew by 27.7% to $9.4 million, contributing positively to overall revenue[3] - The company maintains its fiscal year 2025 revenue guidance of $1.7 billion to $1.85 billion, with same-store sales expected to increase in low single digits[9] Profitability and Expenses - Gross profit for the quarter was $84.1 million, down from $91.4 million, resulting in a gross profit margin of 22.4%, a decrease of 270 basis points year-over-year[5] - Selling, general and administrative expenses were $79.1 million, representing 21.0% of revenue, down from 21.9% in the prior year[6] - The net loss for the quarter was $(13.6) million, compared to a net loss of $(8.0) million in the same quarter of 2024, with a diluted loss per share of $(0.81)[7] - Adjusted EBITDA decreased to $1.9 million from $7.1 million in the prior year quarter[8] Inventory Management - Total inventory decreased by 9.9% to $636.7 million, down from $706.8 million a year earlier, due to effective inventory management[8] Debt and Financial Leverage - As of December 31, 2024, total long-term debt was $428.3 million, with an adjusted long-term net debt leverage ratio of 5.2 times trailing twelve-month Adjusted EBITDA[9] - Adjusted Long-Term Net Debt is defined as long-term debt minus cash, which is used to assess financial leverage[27] Operational Insights - OneWater Marine Inc. operates 96 retail locations and 10 distribution centers across 19 states, focusing on premium marine retail[21] - The company utilizes Adjusted EBITDA as a key performance indicator, which excludes interest, taxes, depreciation, and other non-operational expenses[22][23] - Adjusted Net Income attributable to OneWater Marine Inc. is calculated by excluding transaction costs and other unusual expenses, providing a clearer view of operational performance[25][26] - Same-store sales are used to measure organic growth, excluding new and acquired stores until they have been operational for 13 months[28] Future Outlook and Risks - Forward-looking statements indicate management's expectations regarding future revenue and operating income, but these are subject to uncertainties and risks[29][30] - Key risks include demand fluctuations, supply chain challenges, and the impact of global events on business operations[31] - Management's strategy includes potential acquisitions and market expansion, although integration risks are acknowledged[31] Revenue Diversification - The company has a diversified revenue stream, including sales of new and pre-owned boats, financing, and maintenance services[21] - The company emphasizes the importance of non-GAAP measures for investors to assess financial performance across reporting periods[24][26]

Core Insights - OneWater Marine Inc. reported fiscal first quarter 2025 results with revenues of $375.8 million, a 3.2% increase from $364.0 million in the same quarter of 2024, driven by higher unit sales in both new and pre-owned boat categories [4][10] - The company experienced a net loss of $(13.6) million for the quarter, compared to a net loss of $(8.0) million in the prior year, with adjusted diluted loss per share of $(0.54) [7][21] - Gross profit decreased to $84.1 million, down from $91.4 million year-over-year, resulting in a gross profit margin of 22.4%, a decline of 270 basis points [5][8] Revenue Breakdown - New boat revenue reached $248.0 million, up 2.9% from $241.1 million, while pre-owned boat revenue increased by 6.6% to $56.8 million [4][13] - Finance and insurance income rose significantly by 27.7% to $9.4 million, contributing positively to overall revenue despite a slight decline in service, parts, and other sales [4][8] - Same-store sales increased by 4.2%, indicating organic growth within the dealership segment [4][10] Cost Management and Expenses - Selling, general, and administrative expenses totaled $79.1 million, representing 21.0% of revenue, a decrease from 21.9% in the previous year, attributed to cost reduction initiatives [6][8] - The company is focused on ongoing cost reduction efforts to enhance its financial profile as it navigates inventory management challenges [3][10] Financial Position - As of December 31, 2024, OneWater's cash and cash equivalents stood at $22.7 million, with total liquidity exceeding $40.0 million [8][9] - Total inventory decreased by 9.9% to $636.7 million compared to $706.8 million a year earlier, reflecting effective inventory management [9][10] - Long-term debt was reported at $428.3 million, with an adjusted long-term net debt leverage ratio of 5.2 times trailing twelve-month Adjusted EBITDA [9][10] Future Outlook - The company maintains its fiscal full year 2025 guidance, projecting revenues between $1.7 billion and $1.85 billion, with dealership same-store sales expected to increase in low single digits [10][11] - Adjusted EBITDA is anticipated to range from $80 million to $110 million for the fiscal year [10][11]

Company Overview - OneWater Marine Inc. is one of the largest and fastest-growing premium marine retailers in the United States, operating 96 retail locations and 10 distribution centers across 19 states [3] - The company offers a diverse range of products and services, including new and pre-owned boat sales, finance and insurance products, parts and accessories, as well as maintenance and repair services [3] Upcoming Financial Results - OneWater Marine Inc. will release its first quarter 2025 financial results on January 30, 2025, before the market opens [1] - Following the release, the management team will host a conference call at 8:30 a.m. Eastern Time to discuss the results [1] - The conference call will be accessible via phone and will also be available as a live webcast on the company's Investor Relations website [1] Telephonic Replay Information - A telephonic replay of the conference call will be available until February 6, 2025, with specific dialing instructions provided for participants [2]

Financial Position and Performance - Total revenues for 2024 decreased to $1,772,630, down 8.5% from $1,936,310 in 2023[576] - Net loss attributable to OneWater Marine Inc. for 2024 was $(5,705), compared to a net loss of $(38,592) in 2023[576] - Total current assets decreased to $777,366, down 11.8% from $881,899 in 2023[573] - Total liabilities decreased to $1,199,236, down 5.9% from $1,275,081 in 2023[573] - Cash balance as of September 30, 2024, was $16,849, a significant decrease from $84,648 in 2023[573] - New boat revenue for 2024 was $1,118,292, a decrease of 8.6% from $1,223,691 in 2023[576] - Service, parts & other revenue decreased to $290,651, down 9.7% from $321,817 in 2023[576] - Selling, general and administrative expenses decreased to $332,680, down 3.6% from $345,524 in 2023[576] - Comprehensive loss attributable to OneWater Marine, Inc. for 2024 was $(7,603), compared to $(38,584) in 2023[578] - The company reported a net loss of $6,176,000 for the year ended September 30, 2024, compared to a net loss of $39,111,000 in the previous year[584] Cash Flow and Investments - Operating activities generated net cash of $34,839,000, a significant recovery from the cash used in operating activities of $129,760,000 in the prior year[585] - The company invested $25,918,000 in property and equipment, an increase from $21,251,000 in the previous year[585] - Cash used in acquisitions net of cash acquired was $5,712,000, down from $28,882,000 in the previous year[585] - Cash paid for interest during the fiscal year was $75.96 million, compared to $49.51 million in the previous year[1] - For the fiscal year ended September 30, 2024, total cash and restricted cash at the end of the period was $27.34 million, down from $93.31 million at the beginning of the period, reflecting a net change of $(65.97) million[1] Debt and Financing - The outstanding balance under the Inventory Financing Facility not covered by interest rate swaps is $243.4 million, with a potential interest expense change of approximately $2.4 million for a 100 basis point increase in interest rates[557] - The A&R Credit Facility has an outstanding balance of $226.6 million not covered by interest rate swaps, which could lead to a change in interest expense of about $2.3 million for a 100 basis point increase in interest rates[558] - The company made payments of $78,381,000 on long-term debt, compared to $18,338,000 in the previous year[585] - As of September 30, 2024, total debt outstanding was $430.3 million, a decrease from $465.1 million as of September 30, 2023, representing a reduction of approximately 7.5%[688] - The principal repayment requirements of long-term debt for the year ending September 30, 2025, are $10.7 million, with total principal payments of $430.3 million due[689] Acquisitions and Goodwill - The company acquired the remaining 20% of the economic interest in Quality Assets and Operations, LLC on October 31, 2023, resulting in 100% ownership as of September 30, 2024[1] - The total consideration paid for the acquisitions in fiscal year 2023 was $42.0 million, with $28.9 million paid at closing[650] - The acquisitions in fiscal year 2023 contributed $60.9 million to consolidated revenue and $6.3 million to net income before income tax expense[654] - The total consideration for the acquisitions in fiscal year 2022 was $490.6 million, with $459.5 million paid at closing[656] - The company recorded goodwill of $15.9 million and $173.2 million for the fiscal years 2023 and 2022, respectively[661] Impairments and Restructuring - The company recognized a $57.7 million impairment for goodwill for the year ended September 30, 2023[1] - The Company recognized a $46.7 million impairment for definite-lived intangible assets for the year ended September 30, 2023[616] - The company recognized $15.3 million in charges related to the 2024 Restructuring, with $12.4 million recorded in restructuring and impairment[731] - The 2023 Impairment resulted in a loss of $147.4 million, primarily impacting the Dealerships and Distribution reporting segment[733] Tax and Compliance - The effective income tax rate for the year ended September 30, 2024, was 2.4%, a significant decrease from 8.0% in 2023 and 22.0% in 2022[736] - The company has a liability under the Tax Receivable Agreement of $40.6 million as of September 30, 2024, down from $43.1 million in 2023[742] - The company has not recognized any uncertain tax positions, penalties, or interest as of September 30, 2024[741] Risk Factors - The company may face risks related to demand for products and services, seasonality, and supply chain challenges[18] - The company’s future operating results and profitability are subject to various risks and uncertainties, including economic conditions and competition[16] - The company is exposed to foreign currency risk due to purchasing inventories from foreign manufacturers, which may affect competitive pricing in the U.S.[560] Accounting and Compliance - The company’s financial statements for the years ended September 30, 2024, 2023, and 2022 present fairly its financial position and results of operations in accordance with U.S. GAAP[566] - The company has no critical audit matters arising from the current period audit of the financial statements[570] - The company’s management is responsible for the financial statements, while the independent auditor expresses an opinion based on the audits conducted[568] - The Company plans to adopt new accounting pronouncements in fiscal years 2025 and 2026, which may impact consolidated financial statements[641][642] Stockholder Equity and Compensation - Total stockholders' equity attributable to OneWater Marine Inc. increased slightly to $360,810 from $358,609 in 2023[573] - Total stockholders' equity as of September 30, 2024, was $390,753,000, an increase from $414,078,000 in the previous year[582] - The Company achieved 74% of the performance target for performance-based restricted stock units as of September 30, 2024[699] - Compensation expense for performance-based units was $2.9 million for the fiscal year ended September 30, 2024[700] - The Company recognized $7.9 million of total compensation expense for the fiscal year ended September 30, 2024, down from $8.2 million in 2023[700]

Financial Data and Key Metrics Changes - Fiscal Q4 2024 revenue decreased 16% to $378 million from $451 million in Q4 2023, with new boat sales down 18% to $217 million and pre-owned boat sales down 20% to $73 million [24][30] - Gross profit decreased 24% to $91 million in Q4 2024 compared to $119 million in Q4 2023, driven by a return to pre-COVID margins and restructuring charges [26][30] - Full year 2024 net loss totaled $6 million or $0.39 per diluted share compared to a net loss of $39 million or $2.69 per diluted share in the prior year [32] Business Line Data and Key Metrics Changes - Same-store sales for the full year 2024 were down 7%, reflecting softer demand in the recreational marine market [12][29] - Revenue from service parts and other sales decreased 10% to $291 million for fiscal 2024, driven by lower sales from the distribution segment [30] Market Data and Key Metrics Changes - The marine industry faced challenges as demand and pricing reset to historical norms, with elevated inventory levels common across the industry [10][21] - The Fort Lauderdale boat show reported record unit sales up double-digits compared to the prior year, indicating sustained customer appetite despite economic uncertainties [19] Company Strategy and Development Direction - The company executed cost-saving measures in Q4, including rationalizing brands and consolidating service facilities, expecting benefits in 2025 [11][35] - The company remains focused on disciplined expense management and aligning inventory with retail demand, with expectations of a 10% decrease in inventory next year [21][33] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating total sales between $1.7 billion and $1.85 billion, with same-store sales expected to increase in the low-single digits [35] - The impact of Hurricanes Helene and Milton is expected to affect sales recovery, with management noting that customers may take time to return to the market [39][62] Other Important Information - Total liquidity as of September 30, 2024, was $30 million, including $17 million in cash [33] - The company is actively monitoring the M&A market, with a pipeline of opportunistic transactions that meet financial criteria [14][52] Q&A Session Summary Question: What was the impact on revenue and EBITDA in the quarter from Hurricane Helene? - Management estimated the impact to be in the $30 million range, with some sales being recouped on the East Coast of Florida [37] Question: How does management view the state of the boat consumer? - Management noted a positive sentiment at the Fort Lauderdale show, indicating a shift in consumer confidence despite economic uncertainties [44][46] Question: Why did same-store sales lag the industry? - Management attributed the lag to geographic concentration in Florida and the impact of hurricanes, which affected service and retail operations [50] Question: What is the outlook for gross margins in fiscal 2025? - Management expressed cautious optimism for margin improvement as inventory issues are resolved, but noted that promotional activities may still affect margins [54][58] Question: What are the expectations for cash uses and M&A flexibility? - Management indicated that they continue to look for acquisitions with minimal capital outlay while working to reduce debt [51][52]

Core Viewpoint - OneWater Marine reported a significant decline in revenue and earnings per share (EPS) for the quarter ended September 2024, missing Wall Street expectations [1][3]. Financial Performance - Revenue for the quarter was $377.86 million, down 16.2% year-over-year, and below the Zacks Consensus Estimate of $417.8 million, resulting in a surprise of -9.56% [1]. - EPS for the quarter was -$0.36, compared to $0.42 a year ago, reflecting a surprise of -550.00% against the consensus estimate of $0.08 [1]. Revenue Breakdown - New boat revenue was $216.74 million, missing the average estimate of $241.85 million, and down 18% year-over-year [3]. - Service, parts & other revenue was $76.27 million, below the average estimate of $79.70 million, representing a decline of 6.7% year-over-year [3]. - Finance & insurance income was $11.47 million, compared to the estimated $12.70 million, marking a 12% decrease from the previous year [3]. - Pre-owned boat revenue was $73.37 million, significantly lower than the estimated $88.40 million, reflecting a 20.1% year-over-year decline [3]. Gross Profit Analysis - Gross profit from new boats was $35.40 million, below the average estimate of $41.05 million [3]. - Gross profit from service, parts & other was $29.72 million, compared to the average estimate of $31.90 million [3]. - Gross profit from finance & insurance income matched the revenue figure of $11.47 million, below the average estimate of $12.70 million [3]. - Gross profit from pre-owned boats was $14.06 million, compared to the estimated $17.20 million [3]. Stock Performance - Over the past month, OneWater Marine's shares returned +1.7%, while the Zacks S&P 500 composite increased by +3.1% [4]. - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4].

Company Performance - OneWater Marine reported a quarterly loss of $0.36 per share, significantly missing the Zacks Consensus Estimate of $0.08, and down from earnings of $0.42 per share a year ago, representing an earnings surprise of -550% [1] - The company posted revenues of $377.86 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 9.56%, and down from $450.98 million in the same quarter last year [2] - Over the last four quarters, OneWater Marine has not surpassed consensus EPS or revenue estimates [2] Stock Performance - OneWater Marine shares have declined approximately 29.9% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.56 on revenues of $354.3 million, while for the current fiscal year, it is $2.55 on revenues of $1.89 billion [7] Industry Outlook - The Leisure and Recreation Products industry, to which OneWater Marine belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact OneWater Marine's stock performance [5]

The upcoming report from OneWater Marine (ONEW) is expected to reveal quarterly earnings of $0.08 per share, indicating a decline of 81% compared to the year-ago period. Analysts forecast revenues of $417.8 million, representing a decrease of 7.4% year over year.The consensus EPS estimate for the quarter has been revised 12% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to ...

Wall Street expects a year-over-year decline in earnings on lower revenues when OneWater Marine (ONEW) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 14, 2024, might help the stock move higher if these key numbers are better t ...

OneWater Marine (ONEW) shares rallied 10.1% in the last trading session to close at $25.81. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11% gain over the past four weeks.OneWater’s stock rally is driven by optimism regarding the company’s proactive cost-cutting measures and strategic inventory reductions. This, along with a promising M&A pipeline, adds confidence to the company’s strategy for fiscal 2025 ...