OneWater(ONEW) - 2024 Q4 - Annual Report

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]