OneWater Marine's Q1 Earnings & Revenues Top Estimates, Stock Up

Core Viewpoint - OneWater Marine Inc. reported first-quarter fiscal 2025 results with earnings and revenues exceeding expectations, although the bottom line showed a decline compared to the previous year [1][4]. Financial Performance - The company reported an adjusted loss per share of 54 cents, which was better than the Zacks Consensus Estimate of a loss of 94 cents, but worse than the prior year's loss of 38 cents [4]. - Quarterly revenues reached $375.8 million, surpassing the Zacks Consensus Estimate of $335 million, marking a 3.2% year-over-year increase driven by new unit sales and a 4% growth in same-store sales [4]. - New boat revenues increased by 2.9% year over year to $248 million, while finance and insurance income rose by 27.7% to $9.4 million [5]. - Pre-owned boat revenues grew by 6.6% year over year to $56.8 million, supported by higher unit sales and average prices [5]. - Service, parts, and other sales declined by 1.1% year over year to $61.6 million [5]. Operational Highlights - Selling, general, and administrative expenses as a percentage of total revenues decreased to 21% from 21.9% in the prior year, attributed to lower personnel costs and ongoing expense management [6]. - Gross profit for the quarter was $84.1 million, down from $91.4 million in the prior year, with gross margins contracting by 270 basis points to 22.4% [7]. - Adjusted EBITDA was reported at $1.9 million, significantly lower than the $7.1 million from the previous year [7]. Balance Sheet - As of December 31, 2024, cash totaled $22.7 million, down from $44.6 million a year earlier [8]. - Inventory decreased to $636.7 million from $706.8 million in the prior year [8]. - Net long-term debt was reduced to $412.6 million from $433.7 million in the previous quarter [8]. Fiscal Outlook - For fiscal 2025, the company anticipates revenues between $1.7 billion and $1.85 billion, with dealership same-store sales expected to rise in the low single digits [9]. - Adjusted EBITDA is projected to be between $80 million and $110 million, with adjusted earnings per share expected to range from $1 to $2 [9].