OneWater(US:ONEW)2022-08-05 20:28Financial Performance - Total revenues for the three months ended June 30, 2022, were $568.9 million, a 40.7% increase from $404.2 million in the same period of 2021[21] - Net income for the three months ended June 30, 2022, was $64.5 million, compared to $51.6 million for the same period in 2021, representing a 25% increase[21] - Earnings per share for Class A common stock were $3.96 for the three months ended June 30, 2022, compared to $3.14 for the same period in 2021[21] - Net income for the quarter ending June 30, 2022, was $64.483 million, up from $42.354 million for the same period in the previous year, representing a year-over-year increase of about 52.2%[24] - For the nine months ended June 30, 2022, net income increased to $130.3 million from $93.9 million in the same period of 2021, representing a growth of approximately 38.8%[29] - Net income attributable to OneWater Inc. increased by $21.5 million, or 62.2%, to $56.0 million for the three months ended June 30, 2022[159] - Net income attributable to One Water Marine Inc. increased by $49.5 million, or 78.9%, to $112.3 million for the nine months ended June 30, 2022, compared to $62.8 million for the same period in 2021[182] Revenue Breakdown - New boat sales reached $376.9 million for the three months ended June 30, 2022, up 30.7% from $288.2 million in the prior year[21] - Revenue from the company's top ten brands accounted for approximately 42.9% of total sales for the nine months ended June 30, 2022, compared to 41.1% in 2021, highlighting the importance of these brands to overall sales[34] - Non-boat sales contributed 16.5% and 11.1% to revenue in the three months ended June 30, 2022 and 2021, respectively, and 16.1% and 10.8% in the nine months ended June 30, 2022 and 2021, respectively[145] - New boat sales increased by $223.4 million, or 32.9%, to $903.1 million for the nine months ended June 30, 2022, compared to $679.7 million for the same period in 2021[184] - Service, parts, and other sales increased by $104.0 million, or 149.9%, to $173.5 million for the nine months ended June 30, 2022, compared to $69.4 million for the same period in 2021[188] Expenses and Liabilities - Selling, general and administrative expenses for the three months ended June 30, 2022, were $87.9 million, a 45.4% increase from $60.5 million in the same period of 2021[21] - The company reported a total current liability of $421.9 million as of June 30, 2022, compared to $227.6 million as of September 30, 2021[19] - The company incurred cash paid for interest amounting to $9.6 million for the nine months ended June 30, 2022, compared to $4.9 million in 2021, reflecting increased borrowing costs[29] - Interest expense - other increased by $2.2 million, or 205.7%, to $3.3 million, related to the increase in long-term debt for acquisitions[177] - The company has a liability under the Tax Receivable Agreement of $46.2 million as of June 30, 2022, compared to $40.1 million as of September 30, 2021[106] Acquisitions and Growth Strategy - The company is in the process of acquiring Ocean Bio-Chem, Inc. and aims to integrate its operations to realize expected synergies[14] - The company completed acquisitions totaling $357.2 million for the nine months ended June 30, 2022, with $326.1 million paid at closing[61] - The acquisitions contributed $91.8 million to consolidated revenue for the three months ended June 30, 2022, and $178.5 million for the nine months ended June 30, 2022[62] - The company has completed 29 acquisitions since its formation in 2014, adding 75 retail locations and enhancing its market presence[124] Inventory and Assets - The company reported a significant increase in inventories, totaling $269.4 million as of June 30, 2022, compared to $143.9 million as of September 30, 2021[19] - The total assets of the company increased to $1.35 billion as of June 30, 2022, from $720.6 million as of September 30, 2021[19] - Goodwill increased to $342.6 million as of June 30, 2022, up from $168.5 million as of September 30, 2021, reflecting acquisitions during the period[70] Market Presence and Operations - The company operated a total of 96 retail locations and 10 distribution centers/warehouses across 19 states as of June 30, 2022, indicating a robust market presence[32] - The company aims to acquire stores at attractive EBITDA multiples, historically below 4.0x EBITDA on a trailing twelve-month basis[130] - The company has a strategy to enhance customer experience and expand retail locations in regions with strong boating cultures[129] Tax and Compliance - The effective tax rates for the three and nine months ending June 30, 2022, were 22.6% and 21.9%, respectively[103] - The company maintained compliance with all financial covenants related to its credit facilities as of June 30, 2022[75][78] Seasonal and Economic Factors - The business is highly seasonal, with lower sales typically occurring in the quarters ending December 31 and March 31, except in Florida[210] - The COVID-19 pandemic has led to an industry-wide inventory shortage, impacting the availability of boats and marine parts[127] - The company is monitoring the impact of the COVID-19 pandemic on its operations, particularly regarding supply chain constraints and consumer demand[39]