OneWater Marine (ONEW) 30 Jul 242024 Q3 Earnings call transcript

Company Profile

Participants

Jack Ezzell	executive
Philip Singleton	executive
Anthony Aisquith	executive
Andrew Crum	analyst
Joseph Altobello	analyst
Michael Swartz	analyst
Craig Kennison	analyst
Frederick Wightman	analyst
Noah Zatzkin	analyst
Griffin Bryan	analyst

Call transcript

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Operator

Good morning, and welcome to the OneWater Marine Fiscal Third Quarter 2024 Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jack Ezzell, Chief Financial Officer. Please go ahead.

Jack Ezzell

Good morning, and welcome to OneWater Marine's Fiscal Third Quarter 2024 Earnings Conference Call. call Aisquith, Austin Officer. President the Officer; Chief on Anthony and and joined today Singleton, by Executive I'm Chief Operating

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

company's you beyond As many that company's the a the cautions the there and with factors, filings SEC. might cause company's forward-looking found in are company number affect in which from the those would events release, of a which described are the can which and be in discussed Relations to that website the statements. materially earnings Investor are control, of in its future results Factors the results result, actual on differ section

undertaking our will circumstances unless forward-looking noted. to occur opening forward-looking any also The update statements comparisons to note disclaims made, that are statements the reflect to by after with as third the all except obligation I'd law. made company required are Please call that, the to that remarks. begin who otherwise with like turn events a Austin And Austin? date of quarter or Singleton, quarter of over results or third XXXX XXXX, against few the

Philip Singleton

to we down. positive Jack, last, for in Thanks, When slightly May today's noted spoke and trended you everyone, same-store and thank trended April you, we call. sales slightly joining

negative from of saw worse. quarter. the and got our severe Also one weather into Texas, the June, impact May throughout significant the progressively However, we towards key a markets, decline end in of sales

the our our respectively, approximately XX% results in indicated Texas. June from for XX% In adverse were were the industry down we Whereas categories and down unit including expectations. the and data end, the XX% X%, participate weather in sales were in approximately third Recent quarter impact the quarter. that below

our unit were down sales X% quarter. only for Texas, the Excluding

challenging I am a continue proud down of to outperform the team same-store a industry X% sales for On for the sales basis, were results environment that in quarter. the delivering data.

to We to July cautiously course the remain so about optimistic flat and positive, quarter. we trending fourth encouraged are changing see sales-to-date

the cannot control inventory to optimization, we market continue we during While of conditions the management or quarter. on which weather, proactive efficient focus improved both cost and

terms Importantly, further terms lower inventory we to despite on of sequentially to reducing selling dollars XXXX. quarter. inventory, is headway our the year weeks on for made units aligned season and in our summer prepare effort we in and that This ensure due model hand and revenues focused clean demand with of both with fiscal mix the for are end market as we

hand broader While dynamic see environment. encouraged on the we continue as outperform industry are weeks we declined in the for to adjusts market industry sequentially area, to this the inventory to this

We approach initiatives to to that maintain a cost implemented year proactive XXXX. fiscal quarter, to of and number we a pay we the realize off also for expect optimization beginning considerably are Last expense benefits. management

us enables structure actions accelerate these cost flexible to our cost necessary. Importantly, when

Turning we remains time to initiatives. The are strategic pipeline and considerable deal on active, M&A. spending

appropriate are We thoughtful capital will the deal strategic while prioritize price and evaluating to are levels long-term our we opportunities right when and continue leverage and our aligned experienced will the strategic the team, supporting of OneWater a pursue of and patient timing, objectives. viability fit allocation business. management maintain with

it as that much of our growth for as story X is key just We believe a decades. the been has last part acquisitional

been in very turnaround encouraged the that that pleased On of report am seen the we've fundamentals the to industry, have July. I by we

year industry-wide decline that full outlook. we the are weather-related and quarter impact However, in lowering Texas, our we given the this saw

our positioned ongoing discuss have control, very within I These to Despite shoots have strategic cost-cutting on business. in XXXX. and management to seen the the inventory we business Anthony fiscal into year the over distribution turn lower guidance, that, including will us With measures green operations. it the our as our well factors remains page the turn prepare focus we to

Anthony Aisquith

Thanks, Austin.

slowed quarter July. As before in picking mentioned, up demand during the

typically by volume the Given at season. which also sales delaying in is the various during of legs We closures retail the sales are challenging purchases. retail Texas, the slower, when environment, and our were forced we cycle seeing of customers experience weather locations high summer challenged time severe

if sizable this see is will we one-off the it's be a unclear they recouped. as the and event, lost sales While impact of

saw retail team as challenging the did which up categories, our boat a margin, new outpacing various gross premium preowned well expected sales. held within holding in job retail line great range. our and environment, we For sales the expected, sequentially and were Despite

next we and The aggressive staying competitive, way selling the environment have good and while our from ensuring remains appropriate making deals are model current by our evaluating make tools, through inventory levels are inventory, we every model and our make and we year, location. closing we utilizing active, selling demand. for manufacturing support meet partners. To teams are are to management progress industry-leading with

For some we for elected brands have certain optimize and the exit model locations, to others. mix

the with price with has expected XX to -- year weeks next for moderated up approximately ended low on for we model quarter, increases on-hand Pricing boats. of XXXX weeks versus manufacturers. XX industry the hand. have boat year's For inventory single-digit

out and customers are we value of boats, looking these lineup. new ton will believe all the features getting selling in the XXXX and with to forward a find We

to Turning our higher-margin businesses.

trends sales. segment a we comfortably In our income target and other in range. the that of our quarter insurance that similar within occurred We are Dealership service and of increased XXXX. are were out parts and fourth as the dispositions we businesses, solid, saw as factoring pleased of finance up is slightly previous quarter. when impact Finance penetration percentage the and sales

heading seen see far green they July in the call that, from The shoots water. on retail team by detail. we're remains getting position good over feel inventory to and more turn with challenge go faced business. segment to continue them about what by the the fourth the manufacturers, production Distribution into out boat to Overall, Our over Jack of our on meeting And reduced customers' the in and quarter. our focused so financials we've but the needs pleased I'll

Jack Ezzell

Thanks, in Anthony. Fiscal third million quarter decreased revenue to XXXX XXXX. $XXX $XXX from X.X% million in

$XXX original environment an to while outsized boat decrease of New X% sales manufacturer X% service boat segment quarter sales the $XXX in sales The accessory impact to sales XX% service in retail million. in decreased largely quarter was from the of million. decreased and Distribution demand levels. in due pre-owned in down equipment and sales were fiscal due the third other reduced XXXX, to the to million weather elevated to to $XX industry-wide boat for Texas. the sales . Revenue and softness parts other response adverse and inventory lower, parts parts to were

sales However, factoring service and parts out when dealership segment dispositions. remain other solid our recent

continued Finance and our XXXX. $XX to XXXX third gross profit basis margins $XXX compared Sequentially, slightly boats Driven was total and declined was by percentage points million insurance expectations. gross in in but X% higher margins XX in the profit sold. to of normalization line a million decreased revenue $XXX of to boat as quarter decreased in on Gross with million the XX% sales.

million. expenses million from and selling, XXXX, to general Third $XX decreased $XX administrative quarter

basis on EBITDA cost the a $XX sales, based to due quarter. was up costs percentage inflation compared of that XX%, as On in cost ongoing sales adjust to management on and expense for previous Operating SG&A points lower was $XX largely CPI. XX reduction actions, basis, X.X% dollar to personnel decreased lower to was SG&A rents fixed $XX due and from a $XX adjusted million. million million income million down

adjusted the the or diluted $X.XX third net to of diluted diluted million compared $XX quarter share. Net per to was earnings totaled third per million $X.XX share share fiscal $XX earnings of per In fiscal share income adjusted compared diluted $X.XX. per or $X.XX income quarter, for

of of the was in total availability $XX to million, XX, additional under and XXXX, our including liquidity turning Now On sheet. $XX facilities. credit balance excess June cash million

focus million to of XX, was Despite with levels demand. XX% XX, sequentially $XXX XXXX, at June our matching inventory due on million revenues inventory the us decrease inventory lower-than-expected $XXX quarter, market enabled to Total XXXX. in proactive the compared March to

the continue inventory down the to work expect begins. until build when inventory to seasonal fall We

Now turning to our outlook.

conditions We third are market updating challenging guidance in our to due the the fiscal XXXX quarter.

mid-single initial built to for year guidance on down sales performance in Our low our to flat digits. the was this industry with of mid-single to be up unit expectation expected digits,

sales the XX%. data unit in suggesting of excess is will be Now industry down

and down to expecting sales are digit. same-store unit We now mid-single our sales be

inventory To $X. and our we and share dynamics. in And of we we $X.XX we out adjusted some expect to committed $XX as be in earnings closing We management, are will factors the market close year. of and to to remain I range within adjusted to the in remarks. turn as on confident with EBITDA million adapt the the our to and continue million we $XXX diluted range Accordingly, be to per monitor to changing that, execute over call Austin control position for prudent to expense conclude,

Philip Singleton

Thanks, Jack.

dynamic resilient Our well environment. in to a execute continues team

environment continue painful leadership and of expect made term, weather adverse The it appropriate decision with backdrop is the in Given in we with reduce short the and guidance the on to rapidly the market the inventory changing is outpacing year position, to industry hand. retail a our Texas. but end thoughtfully

think our and Texas open some we into providing segment Operator, Importantly, production of sales fiscal tailwinds growth market, provide our we expense for the as prepared business as remarks. inventory, in profitable This the this distribution are ongoing should outperformance the XXXX XXXX, our concludes in management, line navigate position time, of you and reduction shoots we formal not decisions are increase the rightsized interest industry a all guidance green recovery these do trends the for at for would XXXX. in fiscal please questions. rates OEMs the hopefully

Operator

with [Operator question Drew first from Crum The Instructions] Stifel. is

Andrew Crum

the in market the understand With forecast made isolated adverse those of just weather of is Texas. guidance, relative to And the is severe linger year? it this ago? that or your trying this is to updates through two as function XQ? magnitude factors. a to of to balance fiscal the challenges the relates Texas, I'm months it does Or Or more it it fiscal you've 'XX more just X to

Philip Singleton

Yes.

more a would When it's board I that, the at up of spoke off the for only may industry, a quarter, of expectations, out industry. in dramatic April great say the really SSI conditions. Coming overall fell line look to to expecting And data, there's in you for decrease you that June, leans and check we probably but it out close kind just -- not for towards cliff. last to felt have the and when were So across June. being we market and we fell . June, a us, been

that so And hurt. really

as Dallas. May. far meaningful in has -- As that a are total entire and of rainfall already you went like two stores We've through And of year when the Texas impact. biggest through goes, Houston amount the you got at if had look it's for our Houston

And boat on them. had closed so Texas actually lakes what that boat we were our weren't had our and we that of lot to a in you on was customers allowed

into for kind But we're impact. had off-season rolling it the days into just about I when whole just XX a and just and But and going -- to their okay, in pickup just lake not So just with was isolated, life doesn't and a in a it mean, they buying well go I and really like, and was built use decline, to quarter. that on came think we are look weather sunny boat I the day. on going industry on have you a lakes. overall, it it, people tough that had of getting itself out that boat? that was Even we it an deal boat. put saw excited If up So buying make at about expect June. they here we a don't a fact because it a to we're can't then breed it why buy to they're

Andrew Crum

Go ahead, Jack.

Jack Ezzell

of of but Texas to seem July, an going got in have back kind we bit did to impact mid-July, kind as started little of things opening normal. and a will it up

Andrew Crum

that or you on Okay. forward. And the line then you Got to trying the percentage reduction initiatives your achieve fiscal cost SG&A revenue XQ in it. of during understand to the indicative and just optimization if just [indiscernible] reported -- hope is the going

Jack Ezzell

fixed see layers that's back say was based you percent personnel the March, end basis lining would and that I down. costs made SG&A. for are have of points are a of are that's cuts at like peel you down we the when CPI time fixed on rents that tied XX that Yes. on expenses of that kind up. as things When where sales onion, we of When we to can the looking it's in we actually even up sales just line XX, in -- that whatnot the makes a going going

So we season, we'll now continue monitor at selling -- June the accordingly. react and we're the we'll on happens will quarter through it's and continue retail, right, right and what focused both, to

Operator

next with is question Altobello Raymond The from Joe James.

Joseph Altobello

that related months So think, up July. perhaps? we And sort of from I follow just inflection Is to think saw you timing the June at want one as should guys two those to period. you on demand that, look

Philip Singleton

in... here. a of the middle come fourth lot the Joe, people the sale a week of in And

Jack Ezzell

me? a think I we Austin, we're there, you you maybe Joe, lost a so. just losing hear No, bit don't

getting what is down. in that week lot I think looking have we slightly flat it something shifted late of a up caused like June move in fourth right? I July saw but lot, was Thursday, at -- a was to we on kind July wasn't wouldn't July down the Austin -- be of think forward, I may the as to

So . sort and pushing I of don't forth next. from timing think the month X there's to or any back

Joseph Altobello

QX? it. What's in Got guide, midpoint . guidance. a the I Okay. -- of improvement your trends maybe flat last question with QX it imply year. roughly from on that look does If the is driving at And EPS

Jack Ezzell

Yes.

look at differential there's on going I some more I with the When EPS. there little is -- focused at look when you bit on a EBITDA. But at some EBITDA, think there. where you the some line. they're is at. coming in where the think there I rates. hopefully, on half some improvement We interest see in largely taxes in back coming all are But in --

Philip Singleton

. now? me hear you Can

Jack Ezzell

Austin. Yes, .

Operator

from . is Swartz with Michael question next Truist. The

Michael Swartz

said flat to clarify Just a point one July you but positive. that are prepared think the I is. clarification, sales of Jack, wanted running . had down, remarks, you to flat just in just said to which I it

Jack Ezzell

I apologize, it's sorry. I'm up, to slightly flat up,

Michael Swartz

pretty we calling you implied just this quarter. is probably if it's I in store like fourth up. up kind to July, comp July significant but sales flat that And of to but to of talked the -- can maybe look -- and we've trying color inflection quarter like get what's us still kind significantly, the fact guidance July to just something mean, I'm of about a how understand for is at down you're you out flat around Perfect. that. and down the understand if any given help is July are portion

Jack Ezzell

now. of slow so the you're There's July to as right, biggest business, is right the a it's going working XXX%. right? through Yes, of market seasonality And then month, in after the the that. lot also uncertainty

out guidance this the there, is it our put conservative beginning with and range. year. So I to we just adjusted for quarter think low reasonable you tried of take end since We we're through, kind at of right? And June kind fell share out haven't just we quarter were number -- to of a the that. the as last guys leaning position we trying have towards came a that then We we the of -- through the

a there out reflect only to that bit we put tightened one kind for to makes So the a the number we're little quarter We range up fact trying of left. you have that sense. just

the -- And results where are at. narrow we in the so hopefully, helps coming think that

Michael Swartz

encountered then and that you. think Gap] And Got margin, quarter? in the gross I just you with [Audio

Jack Ezzell

sequentially, [ when from quarter you XX look points correct Yes, you're I'd last ]. down on it's we boat stepped basis on the new step say right, down while

think that's But it change So I more kind with trend. aligned a our expectations. like hey, of kind in of felt

we the so -- of that through started forward pace year. we of And kind remainder the

Michael Swartz

that be way side. annualized And just year, a the much maybe Is how cost cost this from there to And from structural is any on how based much more Okay. in kind nature? variable taken of system? the fiscal of frame of actions removed you've will one me that how for versus the you've much final

Jack Ezzell

Yes.

XX% million kind you we typically -- we about $XX I fixed, a basis about about think know, on million XX% and last As was look receive our had quarter is percent that be said variable. to take we annual I quarter, worked off. of it structure point think about expense to looking to shaved half SG&A And that, sales $XX of as an out which of to a X.X of

in on so particular. that quarter the line in And this personnel saw we coming

a of . in focused down a the bit March we little on came little Some were in cuts other those bit, but lines personnel.

Operator

question Craig - next The Kennison Baird. with Kennison excuse from is or me,

Craig Kennison

mean delaying dealerships, mentioned pushing Anthony your to factor Or back that think just I'm curious, that but just purchases. is they're does it's just believe at a or consumers causes were you another I there shopping that stores delay. on price? they're

Anthony Aisquith

shopping . they're doing I I appears. think what is just more it think they're

Craig Kennison

Okay. And ahead. go then -- as yes, . it relates

Jack Ezzell

I'd of ticked interest get as we the questions just quarter. sales right? around a Our up little ], a [ in lot like percent bit of say, a rates, F&I

seem like And so financing it a is challenge. doesn't

I Fed hurt some wouldn't rate us the environment the consumers certainly gave keep adjusting if think new relief. us to .

Craig Kennison

promotional the how And this what today you thought last time winter? the would even year versus environment frame you maybe in or

Philip Singleton

manufacturers, money. have inventory in I how on. quick build great do got as XXXX that clean knows be to I model into make to that. of mean, jump think year I that has a got on and we They the continuing real mean done the I roll the manufacturers boats. I'll I think job they everybody think

seems they've better to the know channel they help channel. and And by month. month getting that better to be got so that clear And

And I was then that's come and June kind in the to of and of not that's X just back it's boy, bit a a think word, started alive oh little July, a in lender whole. July also. -- a they leading in but toto huge up saw as back it industry June, in drop Wells who's Fargo, floorplan space, the the and picked

manufacturers are continuing end continue year's So still probably boat to needs through next year, shows. into the and what and doing I the activity promotional that done the expect to of be is

on I more need. be think reorders and going up the to a manufacturers little stocking or your what little us, everybody want bit is conservative and tighter dealers and -- a that's not bit

and that month out to month. to So they're going prove continue after help

Operator

question next The Wolf Wightman Fred Research. is from with

Frederick Wightman

about In talking Anthony's XX was he a a future XX sense, Moller a handful that majority thought prepared in was more was coming remarks, model or product of XX products year there June. earlier boats, out but in I

give sort versus inventory of what product your can us XX is look in So that of sense a would normally? of mix the now like you what

Philip Singleton

Yes.

XX So not I doing updates when all But serial in Jack boats changing changeover the changing in speak the product they're can that's new They're not product because whole number. out old dealers June, to that. the to they're production. bringing -- a put they're think the out is not

manufacturers of late to about to talk do and try lot bringing year on a So June, XXXXs the depending out in May that.

who the because take them. you when that about think it's will of changes to second in June be if 'XX new weeks two have out a wants the boats And week all the boats to it,

NADA the value number boat, to of at value. and the you go an the the look cereal you when So book dictates

according a before, titled same on and on XXXX boat and it's the value to the day XXXX, in the as boat the a so came different XXXX that if book. that preowned there's was And it's

a that good on have not so rely really to just be that. to book, And but rely you as to on dealer,

all in, X, rolling those on next a little there's rolling really working around majority July month. in stuff into changeover get is the but after start those will we that. the the XXXX of So as

we mean, So than we're XX you than like clear haven't that think are truckloads XXXXs, a future -- our a as know out better I Anthony, probably boats mean taking Jack. I day don't we that tense ton he just going be talking was seen We're I of about right? October.

Anthony Aisquith

They're coming now yes.

Jack Ezzell

to inventory, so we inventory. our week, right? produce of we percentage manufacturers the supply are shipping so so to boats. build winter right? many many right is have can low much through have because only have a They're just winner the for to a stock That's It's the to boats They why summer.

starting said, to about hard country, to talking various they're now, to while to has the and when models come are -- Austin real ship especially by. start and Xs I things Xs and mean, those you ship dealers they're that, there's so like and right, supply starting And new a no very across one like

Frederick Wightman

last sounded It Makes Austin, you sounded pretty remarks again in upbeat sense. today. again And the then, about prepared the pipeline. quarter, really upbeat M&A

velocity thinking can So of update for at of high of you the inbound, a an us just give about sort on outlook how level? M&A sort deals, you're

Philip Singleton

pre-COVID, Yes. the pick deal I has as about I off same. I the opportunities cadence us. like and much mean, even mean as through far COVID, flow pretty it to been to or on turns us mean, it's not

got we've pipeline, decades. just numerous happen. right I've plenty now, it at now, the to said of I right mean, like opportunity going what's looking it's it's think times in And I

think the inventory are some I it see struggles place. dealers through that that. we that of realization like the with And seem field got think bear didn't industry, than really winter. the so XX% XX expected that, come weeks of some heavier across this rates that that and you've I last winter, majority that's mom lower on at your it and are took the plus to than interest to for . average. an pops,

again, we're flow looking We're we're free do use I going our going We're sit do. back make want But that where stays at to we to deals. opportunistic. very something so going that continue sure and want think and to several things, leverage And just we're cash to to it's then we to to.

until especially in out and it But that we're a cautious. working us the made going very the selective, into market. to We're actively little deteriorate we kind in how bit up we'll deals, next got actively us we're more put flushes over XXX starting just see like be -- so And what days. and to to felt of July, were things XX

Operator

next from The with Capital Noah [Operator question Instructions] Zatzkin Markets. comes KeyBanc

Noah Zatzkin

Maybe this June? the of would of July, any And when controlling. Or to softness is but little do like up, of drove how then what say guys are you kind kind you more answer, industry working you think improvement's idiosyncratic, I more hypotheses about frame you tough industry-driven you of around a in kind think that improvement? guess, much how

Philip Singleton

can we know well, I think I mean, board. us. I know can Yes. in don't across don't we -- July, has really But the speak to I the of been what in kind I the think blindsided pickup happened. it July pickup

talk any dealers when don't of individual with day compared track we about they previous wells, of -- So when payoffs, we the and the and get years. lot amount the as talk into a whole the industry means payoffs a by I by week by to

uptick an they've And payoffs, sales. data, And and what board there's industry. SSI an in in the June. decrease the now payoffs uptick across saw they that's that's in for so know -- in which matched They there's uptick when payoffs. in And saw. an they seen the a

So the should also. that data match SSI

It rolls is it. to don't set come the June in can lot it or standpoint. a can't an us, -- it take June industry maybe what like that up. was a Thursday, XX% happened following, Most to a is whatever significantly my the delivery from rebound a I and for we July a whatever weekend. the compared really they and research see as on June. in as on the across know Friday, put it's was just far for for was Wednesday, people -- next June to expect month we . But I if a finger it up I it on has -- [indiscernible] But not it's mean hook of from down, demo the of Now improved of do by industry, that what then XX%

of -- in days decision that but or presold the us time on you the really have what people hook is we in June, what the soft of a still that's on so in that. tell coming the majority a led stuff we XX to week's kind and And that stuff rolls, can't I went boats made

Noah Zatzkin

touched Anything coming then That's point your to kind I of think softer of June. but call the in out on really heels time. health industry, like helpful. a the on of sense of of you broader terms this, kind And across in dealer just

Philip Singleton

Yes, I don't think right health the really is word.

I premier strategy. think And dealers what this beginning are dealers at 'XX, motivation. the boy, that Well, "Oh old. XX there XX this the 'XX", was what this when exit for I very What's through up say in strategy had a out it's was that seen, mature saw we And you exit ends lot, years to or country something that going we go I'm and what of leading like it years ago. another the COVID think when like, were happening the we've is started in lot a whole thing Anthony, there of to? not XX I that. the was it to

or I think what up end year. end at looking these of already and seeing couple we saw you what so a up we'll this And

XXXX. more whatever," they're and just XXXX going chips now during I something, the middle or in again. not tightness have this just just to or or mature whole of going versus health fight that the gotten been is majority in through a off and a to much to again, about not we're going last in simple all years [indiscernible] they're the to inventory And COVID pretty be as is trend as maybe think regardless the have 'XX industry number and won't worried for will they the many really not as through dealers the or "All going work really all set of as time, of some and good because perspective, you're right, with like, okay, I'm all to could I winner I from just survive -- time. the help the shape through as comfortable my what If be the an having to up heading very is, table, inventory X where say, a as winter. take age the the is, they're have where really I'm And it's

of winter bit excitement in quarter And is to to to in what's is a not -- It's little up. QX going a kind I think quarter going down, flat, the that that the wasn't probably more roll us -- spot. going going we're it's will of right the back through seasonality, this boat now is the be next slightly inventory year, good. right but we the into gangbuster in be that's time and season quarter for be slightly probably show a now us by tougher for

we forward green of expect on bit bunch and year. in rebound see is sort there's kind think of of -- of margin really little to to a other script. the and boats. about then It a we shoots uptick So new XXXX a be some looking has us that talked going in

Operator

with is question Griffin next Bryan DA Davidson. from The

Griffin Bryan

Yes.

where with maybe you and that you terms you guys as will building So the we to at. playbook molar out the look of retail I guys guess, then build that just to of given in inventory think the units magnitude plan inventory what do XX fall, be for

Philip Singleton

it is team at them is XXXXs Well, We to now rid to and need environment of I we get and the that takes XXXX. of replace in tough sell XXXXs. for mandate need mean, whatever this with get to the right rid the goal the

into end I'm and and XX% so of to you're because you right if margin a if make it And for we now going $XXX,XXX math, using you boat take, take simple the round season. the have on just instance, numbers

You an not sell this boat, exact is the math.

that going only Well, it's March, interest $XX,XXX to bring going if probably to boat we margin, make hold a You but XX% carry. next it's to have

internally what So consideration or you're going $XX,XXX is. And make that in going a lot $X,XXX pay refer right. into $XXX,XXX interest you're to to take we whatever even boat, number doesn't to on as that but carry

to it, many got all got you to you clean how times move it, that many How stuff. times

and with weeks because the but And August come the up clean replace going continually start next first we once now with the will sold even of we're and that's basically with get -- of basically September on going mandate spring. are interest-free. inventory, the interest-free to all get them then boat in to of XXXXs stuff part down to So the which it's flipping start hand, or that of in. fine are where building the and with inventory sold to where clean end is that that an go down towards those

floor us Anthony, the all inventory get interest plan and So playbook next I to Jack, that for that? anything save on interest-free get want the do boats think ready money that's is year. get to our the for clean, you add

Anthony Aisquith

previously right getting that's spot. inventory that Just sure exactly And in right. are. we the we're what make at It's the working to

a have very successful So we'll 'XX.

Griffin Bryan

exits. the then maybe Got the rationale around it. those Makes And can that in? those then and quarter categories just get sense. brands you on the you of like the that kind comment throughout And were

Philip Singleton

we and we bit we versus tool, we think at what X.XX%, X.X% don't went can our different do but mean deep that. with little look bit I bit want little deeper a a Well, I inventory dive X%, we've are interest done, you is a different. which little so rates a things things did talk at to today to

higher than Some brands other have had increases price brands.

innovation going we we were We some other short not look inventory. company you when that brands inventory brands have could things. the a needed were made COVID, brought had. the not But of we couldn't at to take we to and have Some these selling because a and everything be other as on of decision touch brands -- we

we've tying the back to analyzed manufacturer. and location options then from to that to model everything So basically

look have in easy we to set in key so the deck go our and to that. It's brands. the we have at majority region. they're or of a our stores And that in majority

that But a now Those things that maybe COVID locations lot up said, can't that we other that looked and locations the have inventory of other of one-off the and changed. to wave there's So really X at intervention and the rode or in. of that needed just nothing's brands didn't some kind we you XX got are here okay, move the and with were normalized #X Pursuit. for -- we brands out the more plan Well, In two premium going can years. up have gotten buy their happening these to we dollars were tie when -- kind from that brand. not it's anymore. that of we're things now point certain guys -- the there sold not I'd out floor models back -- that's

it's of depending cadence boat, the the XX -- of complexity Now normal back XX to the weeks. on to

next like year. not going only X of these there's and to we're -- get so And

You're XX want if going get them of you them. to

stuff when make around manufacturer So looked XX money more instead brand and we season we said, doesn't okay, a at X locations sense We that it OneWater. quicker with adjustments. we in through would we move entirety Pursuit this some just -- have inventory of put can as a from of you that there's like some go spend the rather make the and so a that

lot less probably a So dozen, less than a of there Anthony wasn't than them. XX?

Anthony Aisquith

Yes.

Philip Singleton

a you dollar -- at like look when it at to it especially and it wasn't when from do. was look perspective, It a wasn't profit it easy perspective, you from

Operator

concludes This presentation. conference. and you today's session Thank question-and-answer attending for the the

may now You disconnect.

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