ONEW - Earnings call transcript Q1 2022

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Operator

Good day and thank you for standing by. Welcome to the OneWater Marine Fiscal First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operators instructions] I will now hand the conference over to your speaker today, Jack Ezzelle, Chief Financial Officer. ahead. go Please

Jack Ezzell

Aisquith, welcome earnings and call Marine’s first and fiscal by Operating Good call. to I XXXX Anthony Officer, Executive conference Singleton, the and am quarter Chief Austin Officer. morning Chief OneWater President joined today on

begin, its remind you and I'd securities considered statements operations by may statements that regarding call law to morning's a under risks this be uncertainties. in conference like number and OneWater we certain made Before management Marine of involve and forward-looking

the forward-looking except a who many its I'd to website beyond that cause in can reflect Relations the the of turn the control, future As the to company are by there release, disclaims update in to statements. to occur made, forward-looking be earnings that you with and date with And Singleton, found law. of company's over could on any described events forward-looking required result, cautions affect in of results the Factors differ are a the number those might section like Investor undertaking Austin? which will materially after the opening the actual SEC. which the Austin statements begin company's statements a with or few call The events are or discussed company factors, results as and filings are from which circumstances that, company's that remarks. to obligation

Austin Singleton

team ability increased $XXX Across outperform board, for first highlighting are for an and share achieving the which XX% an Thanks, the Revenue of ongoing gains XX% the XXXX, Jack, gains. we everyone, supply results quarter and These even incredible above on exceptional million, first to and we quarter we delivered today's in our thank comp to of top increased are reports market same-store market. joining suggests the our the same-store industry constraints, the you, the sales the for in growth, of call. sales significantly year. on by XX% prior face chain of industry-wide strength

our we delivered a XXX%. other million, higher-margin sales, same-store EBITDA of in end, of an we service of saw part significant As in increase incredible $XX a in our parts the and adjusted revenue. increase increase And also a

up same-store As tough we comps stream shine quarter, these come revenue the the should on strength over see next sales stable through. we of

While prospects to we the persist few the we're business. for inventories lower over next quarters, extremely confident the expect in

pre robust to inventory continue quarter. remains elevated another -sold and see We demand, through yet

service boat in our outpacing sales PartsVU the increase acquisitions Marine growth XXX% T-H of revenue. by was our significantly parts other our We and up to further recent also diversification and of led quarter, of saw sales. that This driven

leverage we parts We're our these and revenue docking expect business. and reach for service finance, transactions parts the profit geographical as stainless even the products. margin boat steel provides integrate greater active and very OneWater's and pre products to leader opportunities margin space. as M&A boat the revenue part complimentary announced continue will to Earlier significant Marine transactions dealers were tuck-in We us dealer synergies growth outpace we market and OneWater's cyclical insurance extremely about start new to And and new three also higher our a in sales push future. in excited closing and this business. other acquisition our service These platform of ladders week, a less a to JIF in and expand establishes and piece to transactions support the bread-and-butter, expanding streams these of service sales, income, the are sales. to to The integrated and dealership closing and parts parts with adding service will year and newly other our heights. -owned acquisitions. overall expertise gross We this

grow our through two establishing us target acquisitions We diversification significant for dealership addition opportunity our acquisition the to in strategy, This as a and future is of of acquisitions six year. corporate part complete is additional a also and tuck-in completing an four to parts there service per we're per to target believe to parts acquisitions. and Accordingly, to year. service four

acquisition component Looking robust is strategy. of be core for pipeline to XXXX a ahead, our continue and overall will our

that significantly our the quarter our disciplined adds While results to with drive are in supply we're our the look first the forward plentiful, feel and to and capture our the our potential acquisition chain manage We We demand the earning company. the opportunities strategy summary, the to customer targets diversification In of line. of growth, meaningfully approach, top drove to line committed momentum selecting goals. are continuing about both bottom expansion through unrelenting and confident position of believe constraints. to

we expansion enhancing extend higher-margin market-leading shareholders. Anthony supporting and I that, to will earnings. operations. integrate streams, our will our over expand these the further believe overall M&A of will to as growth market efforts With generate business share business and to of Our dealers value revenue quality continue We turn activities discuss our and it to the fuel meaningful

Anthony Aisquith

quarter, carry during demand first strong XXXX the levels The fiscal winter Thanks, of months. into demand from when slows the Austin. typically year

boat of South, particularly strong continued in the than anticipated the were first delivered. out Presold strong demand. than stronger compared more sales sales are in quarter money Seasonal happy as for doubled the in quarter. no shopping, elevated climates with customer down demand remains were in Highlighting they inventory year. boats cooler their next And the deposits to prior units big Our customer of the and customers the signs and are slowing. putting presold

profile, any the continues geographies consequently strength performing flooring job levels prepare of from inventory inventory all our to higher see effectively to continues period. inventory a runabouts, the in across of fish, inventory to gross across for in tools supports to challenges superior as costs during coming margin using to pontoons, margin all asset-light the with season. attributed quarter, saltwater be reduces and marked we quarter our XXX great prior location compared We selling summer yachts continue The a point is in do portfolio. ski We OEMs. online. supply partially board This our Improving acquisitions categories which a continues numerous model team to by to our increase basis improvement management this an pose experienced year well. sell our and focus wakes, and chain The for

about us to environment the continue to will good point, technology new these to the where leveraging back overall supply we the will industry, manner. extraordinary normal. feel will to begin the chain strong However, we of level happen. environment vendor It allows and to this in and resources exclusive in still and inventory us position industry an outperform build navigate is unclear our We're stand. expertise the put to when some our At exactly relationships and normalize

However, we parts have sure had proud businesses. successfully tools I am of of environment. the other make our in can the this team the also service to we lines in success and and operate we have

pride boating to and keep customers back on years their needs, meeting great get they for takes making water, team boat, our come. them service dedicated the enjoying and can parts that Our in memories so will

their service comes. when them the boat next We will their and stand time to continue of boat ready existing their dreams to find help

our marketing between shows onto activities, balanced events. local and boat dealer-sponsored strategy our Moving continued we

over due some are at product saw shows to personalized activity While Customers the over about we throughout participated events. I excited they're buying local shows were that of more And innovation, the seeing happy, financial to in they're Jack boats. go and same that, COVID-XX, to with our canceled out, the quarter level other and turn the call in the they're detail. we're will

Jack Ezzell

XXXX XX% from first $XXX.X of quarter to in revenue Anthony. by million XX% prior-year sales million fueled quarter, Fiscal same-store a which increased Thanks, the was $XXX increase.

of million $XXX -owned to and million. the pre XX% XX% in increased XXXX, quarter grew sales boat $XX.X fiscal sales to boat first New

increased higher increased $X.X XX.X in business, to and parts our gross XXX million, increase businesses We million the $XX.X of to prior results in realize to $XXX in growth other in increase of compared to first by -owned benefits to Gross contributed points quarter basis sales to and and same-store in continue service in driven parts margin strategy of driven the the revenue parts, by increased Gross insurance our and increased million quarter. which year. profit XX.X% XX% quarter, new the the XX% and primarily of to the margins recently XX% margin to pre in acquired. the the service other sales in growing million sales. our and in XXXX profit higher-margin, prior meaningful Finance compared our the an sales year, boat XXX% first diversification

increased partially prior to as $XX And the $XX million a higher in percentage to higher EBITDA percentage increase SG&A the SG&A expenses administrative by as in $XX.X from and profitability SG&A income level or general selling offset XX% increased the share, to year. XX% the year, compared fiscal $XX.X diluted million $X.XX gross million million to mainly the million XXXX the totaled income of quarter. or by in was compared in from $XX.X profit the $X.XX prior million to XX% $XX.X in increase a to per result, of diluted driven sales expenses. due year. first increased variable million. personnel and per the for share prior year The quarter as climbed costs of Net a to XX% year. prior a from quarter First driven adjusted increased up $XX.X of sales, million compared to $XX.X Operating prior by

first per amounts at of transaction periods, charges first quarter per the consideration diluted in These in tax adversely both impacted share For of per $X.XX were share earnings the quarter and XXXX, XX% effected costs XXXX. related to $X.XX contingent and share.

strategy our run executing on year be XX% that by on strategies remain may XX% we M&A a aligned rate their same-store contributing XX%, year. during with our accelerating to basis, per strategic With and By M&A sales to $XXX for with be anticipation $X.XX and for full-year quarter $XXX per the are despite of JIF the be to ahead adjusted to to completed maintain range the we Looking ongoing XXXX, per diluted same-store up Marine exclude outlook in recently transaction, to but to organic an long-term leveraging on single-digits, and acquisitions completed growth, inventory believe we $X the million allocation, XX% increase can to announced these include the our our the first X% EBITDA be executing challenges. the capital opportunities share contributing operations we longer-term XX% regard projections EBITDA our the to adjusted synergies. acquisition earnings sales high expectations. focused million We raising additional share. of in range existing during for fiscal These any

this we growth guidance For of exceed the may our amounts complete before XX% low-end additional we we year. range, will year, with of adjusted believe yielding these this acquisitions, any excess EBITDA in

Following on shareholders rate a our remarks. this open to Operator, will gets dealerships, XXXX completing are you increase additional to on say, newly higher-margin execute questions. XX% growing by in million. enhancing math, for working in concludes hard for earnings the our implement run adjusted XXX excess you proven and we of please our acquired basically line strategies prepared businesses. our EBITDA the This and Needless through by to across acquisitions, our

Operator

[Operator Instructions] Crum from of come Stifel. the Drew line Our question first from

is open. line Your

Drew Crum

less economics same-store the guys. fiscal parts figures, I per basis price talked annual forward. multiples look better the around was store dealership what purchase Any an about to shape the of and sales businesses Okay. deals you like XQ How Thanks. going important. should morning. targeting services and to The of four Understanding sales. Thanks. year seasonally anyone compare on Good than then separately, the XX% think is And Austin, your transactions? Hey do expected. in thoughts these two

Austin Singleton

you on want sales the jump in to in same-store that do Jack, --

Jack Ezzell

ahead. Go

Austin Singleton

Go that. was little just I of ahead. to say bit a going

kind about lightest the this of be time, to early having came very and days XX really that to been are This in out year And into probably we some captured really and last got that that was for not basis, last us. quarter. a last we've guidance between so important most not comfortable couple some quarter, March. it's last probably or some is as The we're quarter. as happened to bit. been projection it do on pushed because of we think that's it extremely should much boats can -- quarterly the the and that quarter on seven That'll weren't busy, quarter days dependent going just seven with days calls shift that I've Year the sales the year-end for this choppy is of that. took each New we quarter the I of high-single-digit the last deals be as this very have on in same-store our spoken and a then we us Christmas And little had would dependence a sway because to as so everybody XX probably just deals be on Christmas doable, have like have push XX didn't can why

So getting we've this when got supposed we to come the we we had coming quarter, same-store knew sales, quarter, are in. were a into great what boats. the Like know we boats

then like look But are want confident the no before where long I as the to anything that about what the matter. talk it's so And do to we're days XX as several we pretty add there's next Jack, in and know what again, quarters. stuff? to disruptions or sit port last going for slowdowns, more you

Jack Ezzell

Yes. it's number a I up negative But QX we against to last XX% overcome. understand just then year to think QX, XX% important a QX, a be we're tough that had will and comp. comp and

think like expecting we're get even perfect think end a same-store and are just we're we'll able those bit it’s also for year though reduction, last expect I be wouldn't in Austin bit I the big although We're reduction I a the in right? be I easier, it's -- major flow to year. comp around comps against, largest QX quarter. -- sales, Because like said, in the on increase how challenging XX% sales. I a expecting the depend our same-store XX% So those up be the get the a not it's forecast a at So we're that I to will quarters. little right? then it's certainly is say a not going going going number and not of from to little think think to

Austin Singleton

Greenfield opportunities just on answer and then when looking And that that intriguing we Drew of of that, to parts pipeline it, when we one the part his at T-H he is, was we're the to is of side the the things was did had.

probably is because better and as everybody. or as mine So maybe his pipeline good he slew not it's even a than already knows

are the once integrated, David get end ramped addressing get down the and they're get So here with we as were let's set let's and all we up and them started to and folded T-H the guidance and we start like, opportunities, Jeff like, going and those.

over and right it's stable just a back not probably less cyclical, look are stable ours. a synergies It's is trailing And a bit a pipeline Economics closer so -- than the the times on a seven probably So years. business cyclical, XX. less word. I robust. is to little because bit He's so the little much pretty more not to there's different as peaks would the is as say four you valleys

is So stuff parts on anything the, going And a months. and on synergies up would going to SG&A little as and We're more. into in margin, be bit It's the buying on a side. to between like they're the the say six multiple bit synergies stuff This we're going quite the double to some is probably some mean, not I that. acquisitions pick then XX I smaller going five and little big, to aren't average

upside we're to going revenues. into So the increase or the build to have additional

side and the either so is T-H And ability expand either side, to fold the we're the bring revenues use to that take them as the have the margin. expand looking we they start in or it at to what in we when trying PartsVU of ones these, really complement do

should I your have answered think that's questions.

Drew Crum

Appreciate guys. Thanks, Yes. it.

Operator

will the come next line from Our Kennison question of from Craig Baird.

Your is line open.

Craig Kennison

Good morning. my Thanks questions. for taking

could think currently you just were because you're deposits I'm how that mentioned that handling you lack up. you can't the I if demand characterize you satisfy wondering inventory.

Austin Singleton

I let understand on consumer the just deals. last year-and-a-half don't been they're having me over this. let jump I'll in conditioned But wait say, we're missing much on pretty think everything. has to Anthony to The

deposits seeing -- and advance. planning they on people I more those So we we're why doing something lot double are are preparing The I in people were are where is what a were think think spring But going they for wait that jumped they wanted. he knowing have that. this probably, what I'll about talked fall let to will were out it to or summer, they to get Anthony if better be that

Anthony Aisquith

want paying and customers coming for what that specific models the any many willing new and it Craig, there's are they for more to that on they're a having are it. what consumer they we're issues with so are manufacturers dealing want out wait and little the with, is not so

feel they're So anything. they just don't getting They're as want. though we're I what missing exactly

Craig Kennison

to price features kind of environment dealer It's really for able to you're good be consumers really want. that the a and

large conversations how partners and want Are might want? guess, just features you OEM to any the price able pay preserve comes the in they scarcity be some to having dealer. expect I customer to dynamic You're choose this, you where of they full with your figure to and out

Anthony Aisquith

builds put models that the used boats a the If manufacturer year market all two models. XX takes those wants, I've models, it sell don't to our to different we of in do, instead have right in those two views that a year It's model most were that old make with like we turns that OEMs. we Daily using ordering boats always the are something I that of of -- but are have everybody conversations technology the higher, XX different past. sure and much in think this example you stock if the dealers that my a we what having a have

collect at right right the is we sure inventory ordering and the places between sharing that's getting have are and we right time the that better just boats better to data make real-time we better. and using inventory where that So the

on So yard order I to us an correctly. going boats don't if back really having of see we ever overabundance our

Austin Singleton

of flatten this. top production more efficient, margin. I healthier, schedule it XXXX, much creates wasn't that, When them manufacturers think an turns, a there in where on Craig, how the to for their the schedule peaks also opportunity creates makes it that seen makes the we there's valleys production had have manufacturers XXXX, not and understand dealers

years think so couple after the is they're And up want boats. ramp and don't a to just inventory. especially in want it, a be now going in take couple the going of to us And up the dealers I don't years think think think probably company think it's inefficiency of wants they're want will plan going one, there flooding it. start the of think going field. where -- say manufacturers, I these to don't Because floor of catch to don't to the that, to I by discipline valleys still not peaks most and producing short-term, and I And they the production. then they're overproduce I to old not inventory a it. not scarcity going manufacturers don't I create manufacture

they've realized that. I think

we just I of going have of and to a a but getting I 'XX, we years more able not normal, some see to inventories work that to in, a able only are think an inventory the the I we discipline to will I the ahead that. think that 'XX, and be So time going to back And 'XX, that's out where us weren't there perspective, on clean the because light period because through new supply think that channel. are of now chain for everybody's inventory after and think to brought everybody's page. to Has where things were we get everybody from of see give same us,

in there Now eventually people the I to channel. stuff that greed out. think But honestly sets that's years five start and six

OneWater tools And haul don't so have, that along tools. the we conversations we have with about them do need them some how of to as we

our will entire whole the manufactures line. the -- out help and even inventory this tool make production it of will industry Some that healthier

take can their out filled use we're have them on to there's at other how tools opportunities for push we those some so that And people to the inventory. manage there we that looking and help

Craig Kennison

things and guess What's so And future then do the you just the information money as delivered? I pleased when to up. have way that to, I follow experience the might Are customer progress like? even get down with it's what put uncertain a I along engaged have if flow keep of doing to customer, manage apprised about some and I How customers customer my to hard vote. feels so though the you experience, know

Anthony Aisquith

communication the away months our those have Craig, employees and train the we the it's touching or away. even the consumer with year to maybe CRM, touches continually in we're constant though nine We're continue about way a to customer.

Austin Singleton

quick. said be through today, grand saying, manufacturers. a that with give boat and Just Like it and have in. We're -- we're this don't want us okay, you XXX -- what matter is the real in mean, doesn't let you you you to working We able to going boat. well ordered, we'll boat $XX,XXX coming I our I know. customers if and not deposit came tools,

in any come you boat. pick If just and

a take an RX Sunseeker, matter. could Barletta, a doesn't it You Cobalt,

should going not a like it's a production mean, we XX slots over don't going good delivery you an It's that delivered. that we subplots really when We’re because big clue. next give have idea date, deliver. within boats I and have going of or unknown be we have the boat days before to to the be date to after a estimated that

all can. you kinds but said, later, it to date. XX when this, there's it's that Like things days shift we not that we'll earlier, well, delivery XX Now, of I days get

sales to want in their do of staff our aren't wanted stay that back. was things it's people old keep feel They why is said, mean, tool going So going to to them. talked everybody just very life purchase fallout is this an on and have emotional they because And they mind. sticky once phone the about We a make touches text. front that changing get powerful we get deposits purchase. dozen do that's like our the That's dozen we is those we that associates down, once really going and money deposit. or they're the a to I somebody back There's bit to have wait, changing calls. the the their a through I email something circumstance. CRM about we're off extremely yearly the like things a able not or They set It's expectation that put relocated. then mean, like half is Anthony the is to outs deposited something for boats

Craig Kennison

Great.

Okay. Thank you.

Operator

Our Joe come line from next Raymond James. will question the of Altobello from

You may begin.

Joe Altobello

morning. guess, first question guys. Good the maybe on clarification for Thanks, guidance. I Jack

you by guide known our T-H, So I million. net JF. better which acquisition the million $XX EBITDA raised $XX the and guess for is included, to By is quality, math,

I EBITDA. to think $XX million that million about $XX those of represent

base and went so million or about for math my was right, year? by business this the up So $XX

Austin Singleton

they're I contribute at going think full-year acquisitions, the $XX the to basis, to right? to got closer careful million. on look you acquisitions, Because probably when looking be a at you're

a it the $X So down EBITDA. adjusting you about mentioned got talking we're JIF little business. under wasn't make annual to period. It's sure $X that's million One a revenues is earlier, that partial in for about million about of smaller and you're thing

for long as it a So for the a way, portion projected -- portion of to rata a acquisitions the year. costs as on basis you it deal, but EBITDA those backing right, and scale thinking big wasn't the pro you're down about in it you're real of got that a

Joe Altobello

guys rate of out, then XX. the the brands for what figure can million or are call dealer terms the you it the dollar-plus maybe Okay. If year. But rate? to couple around secondly, first, morning to service and I and run XX run you've adding you're that parts fiscal acquisitions? And about $XX in five I this I similar guess million a guess what's right? Are acquisitions this that assumptions run talked assuming four helpful. That's XX acquisitions? you future rate for it of

Austin Singleton

historical based run to synergies. One out that off no Joe, is Yeah. Real numbers, want I quick. numbers. point thing historical That's rate that's

then what put planning for we when on I months. think acquisitions that's XX we doubling can another to acquisitions. And them we rate. ultraconservative do out of inside is side we any dealership run a about thing base important were as as the to you Jack, by have no in put that talk were case record means And historical that in. of we

Jack Ezzell

said, at midpoint. modest of parts think $XX there's a looking million even growth at company. taking of right, the if from -- worth Austin you upside And amount implementing cadence do if kind -- Again, a base on $XXX then, of powerful how tools. have decent very probably five acquisitions dealerships on probably business, upside it And a the as about kind I pride, of good about of we just now, million. you the EBITDA. right think of growth by look of to -- the adds it's on acquisitions going powerful dealership generate like Yes. very side, it we're That's total And it's year a the our that the history eight three improving those that to

Joe Altobello

more. then helpful. one in could That's And I Okay. squeeze if maybe

price of the just or in [Indiscernible]. given any all very XX of discounting comp a bit environment, we where strong, mostly XXXX to pricing to terms going chance inventories not that's is let the a start driven. -- there It's of talk at plus But see me In really silly obviously, a -- question. bit are

Austin Singleton

seen you some the where till cases in In have start and in to Yes. some are of the of this Midwest get it of the wet the really end just some lot have the I they a you of because in country don't weather flooded. I now, that seen till the the not have the boat end we've were past season. Midwest people season where had end discounting season lakes to mean, have pockets do especially couldn't see the -- on issues June a

want that you some discounting if come smaller end see So and just year, don't this to from as dynamic new an perspective, the while have a you you if get towards back dealers you it's to to like inventory. the some that, out look of country from take normal. might sort carryover some at of whole, of then the us any this to a But going inventory get

So operate. be mainly or don't side soon, value not on coming you do where anytime discounting, don't side, massive see low-end, the to and high-end we time that the super -- discounting soon. we where premium like I on expect see no really any I see

Joe Altobello

it could see It we be do later year. this If isolated.

Austin Singleton

if But XX% thing wrong. tell I'd boat other A was comp. was by driven ancillary lot lot like new that not point pricing on the And of Joe, then or A one you me those that I'm boats. to just of new businesses. and said out sales Jack, driven the

huge Our was that. and contributor service to parts a

Joe Altobello

That's a Thank guys. point. good you

Austin Singleton

Joe. Thanks

Operator

from of Research. next Our the Wightman Fred from Wolfe line question

may You begin.

Fred Wightman

guys, number? morning. parse Do what out inventory impact the the of sort on inventory try that number you the Hey good Just balance is organic have acquisitions the of on sheet? to

Austin Singleton

have don't to is by of it's a slightly. I It's it up but it of in not acquisitions. -- driven majority front flat me,

Fred Wightman

a when you flat year-over-year right? basis, up, on And say to Okay. that's

Austin Singleton

on through in to of yes. just the year. the more the Sequentially, year-over-year the winter. tends It yeah, basis, a build Year-over-year basis. lot it's because But seasonality business inventory up a of

Fred Wightman

Sure.

we looks going seasonality? have steady-state ticked quarter, are a like bit but bit at more segments it Okay. here last on that a we sense. margins quarter. about little How could for still the so forward? those It's down could that given And basis, saw rate year-over-year used should you fluctuate categories That in the new big just bit the on growth a versus margin think across you two a that? a the Do up give makes think you it might and performance detail

Austin Singleton

you is have I bigger think what on you sold tend now. here brands for going most have -- in months the also winter boats we're to that in

And typically, a margin that, lower so December quarter be quarter. tends the to

in think certainly well at play quarter. boat performed And a so that's business larger I see our this here. bit We what's very little

Fred Wightman

that that the high deliveries better worse said comp changed? that Makes Are versus sense. you OEMs there the do you are guiding And has -- quarter? assumption be to I mean, number unit then still just when put guys from going think last you is or differently, planning out you within to, single-digit for that

Austin Singleton

Yes.

I think about optimistic there are we're between pricing it we early is but some unique growth. the a a chain, I growth. and supply expecting to balance tell. still But little it's mean,

Fred Wightman

guys. Thanks, Perfect.

Operator

again, Securities. next Mike [Operator Our from comes of from Once question Truist Swartz line the Instructions]

You may begin.

Mike Swartz

intensive Hey, good much that on Jack side, capital that question morning, intensive working I return unveiling think part than dealerships? should capital acquisitions in capital more we guess guys. the of for Maybe around a acquisitions the annually. invested on for just about relative number just target businesses, or how to working cadence

Austin Singleton

the various funded they I cash have some businesses through are. Yes, of typically, sort revolver. mean, working capital either or

like do. and plan fixed businesses. cover massive aren't As existing our the they them right? capital, little and the integrate need, dealerships lot of of some that be floor as working costs facility improve boat working additional Quite operations, more some certainly a absorb But often of a to don't now, them so right into their well, have reduce There will cost. that capital we of can

Mike Swartz

segment. SEC in lines the service other and similar reporting Just parts

be I made relative tend out steady-state way there, that margin how acquisitions understanding a you've a should couple shaking to is about about diluted service, to so there guess think environment, we parts the to that? a Now think in

Austin Singleton

I margin a it so other, Yeah. saw our for and bit. little we at service this you where comes parts saw mean, down quarter

a will to service tends and be XX your which on margins closer Parts in I boat closer correct. kind a will so XX% that of to fall closer will will down depending be the to XX think XX, cadence blend more number. on acquisitions, a labor and but to sales, contribute higher to our XX%, of kind steady-state, that we'll to around -- But the that -- tend middle positively than is as the XXX% overall price margin in range. in there still XX, you're of a

Mike Swartz

Okay. you. Great. That's helpful. That's me. all for Thank

Austin Singleton

Mike. Thanks,

Operator

participation. no have that the conference, our Thank in for I And this for today's today. questions as further conclude queue. well. will will you Thank And you. your conclude Q&A

You day. disconnect. a great may have now Everyone,

OneWater Marine (ONEW) 3 Feb 222022 Q1 Earnings call transcript