OneWater(US:ONEW)2025-05-02 20:50Financial Performance - Total revenues for the three months ended March 31, 2025, were $483.5 million, a decrease of 1.6% compared to $488.3 million for the same period in 2024[19]. - For the six months ended March 31, 2025, total revenue was $859.3 million, compared to $852.3 million for the same period in 2024, indicating an increase of approximately 0.7%[138]. - Net loss attributable to OneWater Marine Inc. for the three months ended March 31, 2025, was $368,000, compared to a net loss of $3.97 million for the same period in 2024[19]. - For the six months ended March 31, 2025, the net loss was $13,987,000 compared to a net loss of $12,479,000 for the same period in 2024, representing an increase in loss of approximately 12.1%[24]. - The company reported a gross profit margin of 22.9% for the three months ended March 31, 2025, compared to 24.6% for the same period in 2024[19]. Cash and Assets - Cash and cash equivalents increased to $67.5 million as of March 31, 2025, from $16.8 million as of September 30, 2024[17]. - Total assets rose to $1.64 billion as of March 31, 2025, compared to $1.59 billion as of September 30, 2024[17]. - Cash and restricted cash at the end of the period was $75,553,000, an increase of $48,216,000 from the beginning of the period[24]. - Total accounts receivable increased to $91.6 million as of March 31, 2025, from $73.3 million as of September 30, 2024, representing a 24.9% increase[67]. - The company experienced a decrease in accounts receivable by $15,540,000 for the six months ended March 31, 2025[24]. Inventory and Financing - Inventory levels increased to $602.4 million as of March 31, 2025, from $590.8 million as of September 30, 2024[17]. - The outstanding balance of the Inventory Financing Facility was $509.0 million as of March 31, 2025, up from $443.4 million as of September 30, 2024[72]. - The Company’s Inventory Financing Facility balance was $309.0 million as of March 31, 2025, with a potential interest expense change of approximately $3.1 million for a 100 basis point interest rate fluctuation[251]. - The A&R Credit Facility had an outstanding balance of $231.4 million as of March 31, 2025, with a potential interest expense change of approximately $2.3 million for a 100 basis point interest rate fluctuation[252]. Expenses and Liabilities - Selling, general and administrative expenses were $87.8 million for the three months ended March 31, 2025, slightly up from $86.5 million in the same period of 2024[19]. - Interest expense related to floor plan financing was $7.5 million for the three months ended March 31, 2025, compared to $8.5 million in the same period of 2024[19]. - The company reported depreciation and amortization of $12,208,000 for the six months ended March 31, 2025, up from $10,470,000 in the prior year[24]. - The company incurred total expenses of $40.8 million under the Tax Receivable Agreement as of March 31, 2025, representing 85% of anticipated net cash savings from tax benefits[119]. Shareholder Equity and Stock - OneWater Marine Inc. reported a total stockholders' equity of $381,615,000 as of March 31, 2025, down from $390,753,000 at the end of 2024[21]. - The company issued 160 shares upon vesting of equity-based awards, resulting in a decrease of $1,824,000 in additional paid-in capital[21]. - The total unrecognized compensation expense related to outstanding equity awards was $7.8 million as of March 31, 2025[87]. - As of March 31, 2025, the company has repurchased and retired 73,487 shares of Class A common stock for approximately $1.9 million, with $48.1 million remaining available for future purchases under the share repurchase program[91]. Operational Insights - The company experienced a decrease in new boat revenues, which totaled $309.5 million for the three months ended March 31, 2025, down from $327.3 million in 2024[19]. - The company anticipates continued challenges in the boat industry due to seasonality and economic conditions affecting consumer demand[12]. - As of March 31, 2025, OneWater Marine Inc. operates 98 retail locations and 9 distribution centers across 19 states[27]. - The company recorded a loss on asset disposals of $200,000 for the six months ended March 31, 2025[24]. Tax and Regulatory Matters - The effective tax rates for the three months ended March 31, 2025, and 2024, were 28.3% and 29.0%, respectively, while for the six months ended March 31, 2025, and 2024, they were 27.9% and 24.8%[113]. - The Company has not recognized any uncertain tax positions or penalties as of March 31, 2025, indicating a stable tax position[118]. Risk Factors - Economic conditions, including rising interest rates and trade policy uncertainties, may negatively impact the Company's operating results[28]. - The company is exposed to foreign currency risk due to purchasing new boats and parts from foreign manufacturers, which may affect competitive pricing in the U.S.[254]. - Fluctuations in foreign currency rates could adversely impact the company's future operating results if not recaptured in customer pricing[254].