OneWater Marine (ONEW) 30 Jan 252025 Q1 Earnings call transcript

Company Profile

Participants

Jack Ezzell	executive
Philip Singleton	executive
Anthony Aisquith	executive
Frederick Wightman	analyst
Michael Swartz	analyst

Call transcript

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Operator

Good morning. My name is Chloe, and I will be your conference operator today. At this time, I would like to welcome everyone to the OneWater Marine, Inc. Fiscal First Quarter 2025 Conference Call. [Operator Instructions] I would now like to turn the conference over to Jack Ezzell, Chief Financial Officer. ahead. go Please

Jack Ezzell

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

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

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

Philip Singleton

for joining Thanks, Jack. Thank today's call. everyone, you,

up new to industry. are vary driven deliberate Margins to than came results with market push team increase gain low better same-store reflecting drive the X%, increased sales. X% outpacing inventory. Margins of Overall, the driven quarter, also close declined Our up by by to sales strong significantly model well sales from double-digit are were sales year and the the margins first expected, product. our by unit a brands revenue impact quarter discounted actions in holding optimize exiting we share Current sales. in in while

West I Milton pleased Given the had with the our of am Helene of growth in quarter. Florida, Hurricane top and on Coast line impact the

may you the Florida stores As affecting for in and storm we temporarily the Coast. Gulf recall, closed in several the fall preparation

in making managing it to While is lost to the year-over-year. area inventory, during on sales difficult down digits the were good is we sales progress the which down are that we year. Overall, quantify recouped compared XX% mid-single quarter, impacted prior

Our goal to was are to starting each year pay have maintaining and operational model, customer ensuring we prior needs period. positioned floor quarter, lower by as highlighted cost carrying balance off. striking efforts our right make interest brand, on meet to while that cleaner the efficiency. plan These inventories versus the are of well expense

changes position face not quarters seen and cautiously We as of dollar we XXXX for our ongoing and to remain The Between up significant outlook optimistic we of for our the that declined a about the the OneWater success first results cost is are general challenging initiatives alter setting Selling, a actions, historically continues smallest industry also we have percentage our total quarter, reduction inventory year. and would come. Despite better-than-expected which in to XXXX. seeing after quarter, benefits both any certainty market a on taking effect. expenses basis our cost administrative revenue. and are in the

result, range a our we XXXX. reaffirming As for are guidance

in respond while market it Anthony the discuss any focus operations. summer will over changes to remaining nimble I on prepare Our that, executing to the remains inventory our business for dynamics. With as turn to season, we to strategy selling

Anthony Aisquith

the developed lower months. price With stores by quarter the again in drive as during Sales slower work we closures, to sales to we Austin. our seasonally promotional of give additional Thanks, experiences the average from in operational increase of the sales winter achieve the to volumes, proud actions unit activity. offset all and quarter team's hurricane-related benefited after in unit buy. customers the strategies effort I the higher reasons am that to slowest

Our now mixed have show shifts attention the boat shows to season. results. been Region

weather year with weather Despite rain significant Atlanta facing Petersburg these done Some been show. adversities, serve as ready the customers has active All and and to inventory. overall challenges, cold has a customers premium category in sentiment been Outdoor well high clear management the a inventory industry we is in excess has trends. put positive. St. when inventory focused approach unprecedented in position line events. After at to by noncurrent in permitted works to at and upcoming and have The all, out marked strong snow and recent are us our levels,

insurance While as which and impact the period XX finance model. Total benefits performance, discounting, prior highlighted this percentage penetration of our some grew offset caused are a push some encouraged and solid of revenue and diverse we business helped the points and strong. basis to our finance by total remains finance revenue of the insurance near-term compared

meet our the Our diverse needs with of different supporting has sales portfolio across accurately promotional and partners initiatives customers and to clear advantage, manufacturing Meanwhile, continues environment the markets. continued key us varied enabling wants aged inventory. to a deliver our helping brand be to boats and

we the that, at added we to call Although slower months, the in. And over go the we've model compared over build mindful financials quarter and from turn winter more to detail. taking inventories of to a pace Jack XXXX the the fourth volume year, I'll typically in being inventory with the prior in boats are of

Jack Ezzell

Thanks, Anthony.

year revenue in quarter a solid was X% million to from start the to $XXX with first the The increasing million prior year. $XXX

$XX in in. Revenue up increase new were an compared same-store margins total sales despite addition boat other This in by quarter unit to boat several drove sales and boat production insurance $XX our Finance in in of sales. from parts boat sales X% unit in our XXXX. X%, sales quarter first from schedules sales driven dealership increased were was X% segment. to for XX% percentage industry driven we being pricing. exiting boat the to decreased quarter distribution revenue higher and in service to million seen X% in the reduced Gross in lower New the brands we on to as while to and we offset lower million $XX profit million. which million, pre-owned the $XXX increases are segment, up to sales and down quarters, new pre-owned as decreased million $XX categories XXXX the approximately the partially XX% by X% a was the participate manufacturers increased in first sales by Overall, $X were have last in million

per First Operating percentage as administrative fixed share revenue quarter selling, and was were Adjusted percentage of in decreased $X.XX in the increase in by points basis expenses X% lower reduction quarter Net net the loss ongoing totaled adjusted XXXX prior due was diluted share diluted loss previous year. expenses. compared of EBITDA part for certain share inflationary $X of general share cost million. an $X.XX to compared $X adjusted costs diluted per or the per $X loss a expense million prior XX%, and XX down as actions $XX $XX and million. loss offset a in partially administrative $X.XX the decreased quarter, to sales SG&A of first to year. a savings management. personnel to million was to million $X.XX in or and diluted per loss These

total December XXXX, at $XXX million was balance Now compared in of and million XXXX, XX, was under including XX, turning credit to at inventory to $XX our the Total million, $XXX excess facilities. XX, million additional XXXX. of liquidity sheet. December December availability cash $XX

on current We rationalizations. aging continue while brand execute we to improve in our our mix

incremental $XX results some X.Xx throughout We we of of expect net in reductions long-term net million cash, December was year. inventory in adjusted XXXX, as leverage the further $XXX XX-month EBITDA. progress to million, as trailing from benefits debt Total XX, of see

latter on We of half XXXX. are leverage the focused reducing in

issued sales our in total low to to single guidance maintaining billion are and XXXX digits. we ahead, in be fiscal up of Looking $X.X the $X.XX same-store previously with the range sales anticipate billion,

to expect range million be to per to in share to and diluted be continue EBITDA $X. the $XXX of adjusted in adjusted $X of $XX million earnings We to range the

remain The where shareholders. the open allocation markets. greatest priorities remarks. Operator, we continue strategic through growth, for Our same, pipeline is will driving boating creates the deploy please expanding to presence for value capital but questions. our cash line our you the it in prepared concludes This key organic will active, acquisitions

Operator

Research. the question of line Fred [Operator first Instructions] Our from Wightman from Wolfe comes

Frederick Wightman

or last about October the about Also, you you you I quarter. cadence held last, reported when of was talk some I the the hoping think talked could trends. encouraging call just

if wondering just could basis. you what you update on month-to-month saw So sort us of I'm from

Philip Singleton

pretty a get it because every was over places, can't starts some but get on it really that think it solid anything, were one October and you you But to average December, December Christmas do. for caught is than cold would you people if would just I [indiscernible] last up a pinpoint I I on the say into really year. I comparing in were Year's feel strong say just in have Thanksgiving then better month into was quarter running month and flat. Anthony, the year-end, New November and probably November or and pretty that probably if

Anthony Aisquith

Yes.

you is described what exactly. normally and it November with very it were normal think December times. I in October our just mean I being strong

Jack Ezzell

were to the the was The storms. Fred, October, thing locations in particular, I'd Florida half first by point out is impacted that especially -- the in you,

a rest that to light country. of So was compared kind the geography of bit the little

Frederick Wightman

on a little it makes you down a guys sense. exiting some and brands. just Okay. year-over-year down then sequentially. bit are grosses, That the down was front-end know then little I And

on us margin what maybe you to like-for-like like how guideposts maybe think that give basis about can going forward? the that brands, So a exited just profile some looked for versus

Philip Singleton

gone. sales I'll no other Jack, want I don't guys manufacturer. we future like no kind long-term thing. -- mean say, do when they there's for the just want gravitate -- The those I real we in to look, brands, this fill and support just let the wherever. say what and them you can to from exiting there's those you because Fred, things of don't get then me so

job good are a so a those really done ] of a good negative having it's sledding, at pushing we've mean I impact. So a [ coming But either pretty margin it's or through. X those and margin tough

there we brands, we little earnings get think bit do up feel us script get the of on that's we of off a And we we green was call new much quarter further gives better, a margin. better the what are rid the these into margin. last as in the one those mentioned that stuff the because what saw New I lift this in Year said boats exiting we'll get year, model margin like the bringing that got confidence higher healthier we some of shoots a has

Jack Ezzell

our little bit balancing 'XXs But tick margins Yes, our slower we get heat that up we're Fred, coming did. we as we're of next a we'll year I of that some bit. and expect, them. think year the in inventory would our model 'XXs on But once of quarter see little margin may through I get are rest season focused the keep pressure a into quarter, model with [indiscernible] check, continue than get past we kind the second

bringing that and those You'll decline on focus inventory to we're continue year-over-year, by notice numbers down. going to

Frederick Wightman

be to sequential in do you is clear, what comment, that And just say you Jack, comment, a mean. both are year-over-year when XQ, pressure

Jack Ezzell

a especially in hard better. moving of really product an it's those move a product. scenically bit the a to outstanding of say outside months job team it's outside Florida, maybe little even year-over-year. would of I And Florida. Again, It's winter flattish, lot did

Operator

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

Unknown Analyst

just Martin comp. is first comp have to was the on where you of excluding I This touch an Joe. wanted on Do Florida? for idea

Jack Ezzell

X%. probably the to going probably it's in range of -- move up X%, -- Yes, it was it's I'd say

Unknown Analyst

ASPs? then breakdown the comp And on a Do Okay. have between units quickly again. and just you

Jack Ezzell

digits. -- largely it's up mean units were I Yes. double

think I XX% was So the range. it in XX%,

Operator

comes Mike Truist of question line next the from from Our Securities. Swartz

Michael Swartz

of there, what And Maybe you to just that terms there new inventory. in for inventory an maybe inventory relative starting level where an fiscal are I are today? with Is Jack, targeting boats? level guys guess, look does are you is year? like we guys actually

Jack Ezzell

as well we managing effort No, down to percent. good made with the as our Yes. quarter. this concerted target September with a And for push 'XX our we're how is year-over-year. sales orders XX-plus be

could flex additional advance over little -- quarter, those the think think I a season. -- quarter next some while down we in I X% again, take X% we of we're in that this as

excess throughout be the will that down be to our goal is XX%. fluid little in year, but a So of

Philip Singleton

that a our we've if down based Mike, that almost know back as that we're seeing what the I good plan see means yes, push -- into out on the year we on retail what will I brands. be bit do we're that be there, goal really the little side. down out -- daily exited feel then day, is mean what accordingly to this the move we're be if a Well, retail a every not monitor continue X have But to to better goal also is a going on basis. our about to and watch probably mean going half. is I weekly and mean, But to we to case. big market. just demand because we'll I pretty than and comes off don't let's do we we expected,

Michael Swartz

And so? inventory, is And do X of typical -- about subject of just trying maybe maybe I'm like the versus to exiting? the to or also, some last, is the inventory of think or what of have sticking whatever there looks how these guess, today what year? months couple sorry, quarters typical you're in you up inventory sense -- aged next on it, not call relative then way kind brands much a just a how get seen what headwind inventory with used a that we've used, of impactful means I a over what to still wrapped

Philip Singleton

Yes. I of that wouldn't impactful next over say it's couple the quarters.

just those exiting feel a of little box. I But said it think it a standpoint that ago, the while when really from we're look we'll brands we at all I -- Jack little -- in total dated as we a quarter. bit dated pressure are this my because

off-season you've you, wanted got the And year, not calendar industry current around typically, that. up but I a carryovers always you probably slightly really year, than So but the in I pre-COVID, XX%, got somewhere then going somewhere XX% that, new decades normal that around wanting of XXXX we're you for going warning, or you've ended now. We're XX%. year, in pre-COVID less Of know usually there and dated -- into stuff. the X went into new front don't mean XX% Jack. and be if to under have at we in right right

Jack Ezzell

your that Yes. with of as front to point. would suggested that was of industry the right I don't in whole hear have me. I from that I getting did I've wells a comment. data kind some from agree gotten

Philip Singleton

a from into get up ago, month X that on months the good season. they happier there wells a It's per especially just not -- what's going out be versus seem and cleaning the the don't inventory X water, perspective but ago, to forecasting is selling lot were wells story ago, dated for than industry inventory is pretty a me, dadgum to the today total really they inventory I months into

the dating the So see continuing last on the back months is but shoots the of green cleaning year. surely, perspective a inventory itself and trend up the that's of we it's that that itself the some half slowly in from on been

Michael Swartz

Okay.

like lot sense your right, we easy internally us the And quarter can maintaining the year terms outlook? discussion of maybe you're mean in plus-X in full forward? challenges despite that and came Okay. ] pretty having a what just had philosophically, and That's of going your the [ in comp market. with helpful. -- outlook that Florida that just of a what dislocation some for in just you was maybe maintaining of comps the despite give some I headwinds

Jack Ezzell

quarter feels year. little has look mean consensus at strong. and when to I consensus, think, with about seems the you -- also quarter, look, million, excuse it's I Yes. out of go a QX a December has me, slowest or I QX -- it which of EBITDA the $XX of lot I -- right, at do When think the

think close to And if another. so layer I one to tend QX in and and pretty be -- QX you

a consensus level think you that and [ And which of you range. if is the bit, that kind QX, QX out I XX little number, I QX of the so think keeps bring around and down ] midpoint

Philip Singleton

Jack, I'm we seen mean a and shoots. little you kind starting of of these But in shoots some we've thought green curveballs. can green some bit been more I'm of see an to I throwing past optimist have really the --

until out show, front little out of are little I the the the cautious after in to a And half confidence get more think Miami of more season. of today like Jack watch Miami, in us so the slowest that want we we'll -- back bit have of into and said, we In a be really what's bit we a further little the where coming versus bit quarter selling year.

Jack Ezzell

interest Yes. what point like months that to not right, a fell once suggests going thought Fed forecast tailwind feels cuts we rates latest of or X the it ago. too, the -- just as rates whatnot, we're as and get like from X out, many I'll

were necessary -- don't headwind going get I doesn't it's so to it back we're us, relief half of feel And some year. coming the like expecting that but of just the in at maybe like we the feel a

Operator

line from of next question Zatzkin KeyBank comes Our Markets. Capital the Noah from

Unknown Analyst

on be in your on I the and kind environment, be out confidence it, know other touched it it kind like of shoots pause put has you nowhere if you're This for has green it would cut on Ryan changes this of but quarter. conversation just seems of to hear industry is and any coming that would difficult of or in great hear now. kind great Noah. seeing a changed maybe perspective on for briefly But And rate to

Philip Singleton

there's if change know don't a I confidence. in

and when reasonably a and green Anthony that you itself I be dated still inventory achievable. I that think last as of it out laid the there mean, And perspective, up -- about cleaning out industry took the because if one think XXXXs out the looked you shoots from the and older, at will of out, the and just inventory a up all drivers what inventory look just I that kind you total has into Jack dated the and still they if took really earnings call lot. you cleans what talk healthy. get on is biggest the production. inventory just we of that are have of XXXX. and back are in I amount going industry mean XXXX, manufacturers super dealers into the industry The been the disciplined cutting taking right

a interest from on things several saves So margins like, more It's industry you're OneWater even getting And great there's if it to then with we the less the an us when quicker a perspective cost -- count turns It up, move you interest we up. lot we new more shape new hard dollars know XXx stuff pay. money from to turns the our boat versus that that on in it. the the move, we're because It clean at around which boats, leads that that, turns, your leads other higher sales. what up look you to perspective. and cleaned to about we you that's Xx, look can okay, leads the you are that is if savings, there's look interest rates like increase don't you associated but quantify, savings at when

XX%, those to increase revenue have to TH into do build have All helps manufacturers cleans but up, as to manufacturers the and XX% to manufacturers its they TH swaps so what increase going XX% in order ready and have parts we'll lift -- we we which on then those doesn't going a increasing to because to production the inventory are -- have is to increase line. and the there boat. the need get XXXX, anything get bottom And today increase are to in itself over sales for do a production because that sell sales

of of headed end and at I'm the starting in So talking quarter, with there's lot -- every it a weekly things that up. at really really that these to of that end shape, I take to every are now to a little we're the right cleaned say the just on wells, really basis kind inventory all every month would do direction. but getting has of And

selling little come We a off is we haven't track to of to season, which confidence need -- the the a hasn't and starting build the train wait that as We that's go just continue. see. and bit and into just

Unknown Analyst

you're a just of maybe XXXX. market? What it to And any hear how be preowned little bit, pivoting state kind around you're and helpful the about Yes. there used seeing would thoughts of thinking in

Philip Singleton

anytime we've it's of we inventory. still Yes, been an better It's broken is for It's not enough that last the see extremely saying getting industry there's the old don't just enough preowned on -- XX same that years, extremely out them. still from that have don't record market perspective, there. on And soon. I limited limited

Operator

next ] of Our Baird. Ali from the comes Strickland [ question from line

Unknown Analyst

consumers monthly given On a new. the In payment we're math for and inflation if Maybe be some versus but just pre-owned you trade buyers focused this markets way the Curious have seeing on measure trade-in to sitting trading morning. a first-time auto, some wood related values. because rates to a buyers. bit make question, little out sense more and little like doesn't Craig

Marine So wondering category. the playing if you're out seeing it's how that in anything and on

Philip Singleton

that. that, you show I'll can let the we just Boat mean you Anthony, Jack, what to on there. speak saw all Atlanta take I really probably

Anthony Aisquith

Yes.

significantly it year, in they trades new where the things. in in today, people started boats to I more think with continue years tied reach are -- weren't of some a has our boat to before. starting dropped year different whole amount a was just of are and the where we reason manufacturers this lot to fiscal demand prior off to really period up people of be out COVID trading are incredible bringing in already whereas where blessed the went that trade manufacturers to every trades be down where the innovative trades color ago, a a came gives are XX-some-odd that seeing

it's want to So making people trade.

the it don't the have you up has was in... with of percentage, Jack, don't gone percentage in if So that dramatically actual it I know I -- you front but where

Jack Ezzell

was when challenge what or our comes selling is getting also at supply selling it biggest right, Again, to trades boats. used

And our of trades seen think little shifting in break by right. that a double some to. the When pre-owned so trend of sales, you little up people which are down indicators I supply sales, a countered our we've at coming you show referred up from in that, actually in are X.X% digits consignment, bit downward year-over-year,

was So paperwork trade, over a to new their and else their and we'll with care getting process where they the for new them an just that and easier, trading It getting hand ahead people everything them boats boat. take product. can efficient more of go in

Philip Singleton

get operate have -- really it's other though, too, for have kind been us this of basically we years Well, states some to to to we of clarity good and in we , need a title. that but that that hard in we've one really for because gone thing, now the on pushing

if when sold that the and a we've states you tax never it consumer, a get the starting prove didn't if that sales So change was that once legislation half to you get of probably in. And sales started to That been it -- too. a slowly probably go the pay the new -- from and past get trades -- time, more way person boat, you you you that And like operated through that we paid because getting you if are dealership consumer pushed wave you to no there a from person, because dealership. go to the was went pay from through come haven't get advantage. don't tax boats at to you you it it And standpoint lot us, went in a to tax.

what Jack little really said, I I both up. gauge believe with trades agree So to that. it's a do to and are But Anthony hard

Unknown Analyst

helpful That's Great. color.

some gears F&I what's And switching bit. mean year? bit, balance the down I dig Just let's pressure of called that? little little that driving into of you that's mitigating margin sustainable higher the out a Maybe working from something the through inventory. it is a penetration

Jack Ezzell

a Yes. concerted by again, It's definitely it's -- effort team. the

I can won't it. finance, those you if not areas to think that get it's you're pushing as one of get hard as you

And and think looking strategies. options to to special the little of had F&I bit, price that so drive in executed kind department and We of our continue discontinued some for team help competitive we'll income finance of points be a there. some on I kind very increase penetration some those increase but the some brands expand and our

Unknown Analyst

And Great. touch to just on want pipeline. I think I then M&A the

what think active, looks bit more maybe I little frame like you it called a that today.

Philip Singleton

react a think what been cautious and we're day, to XX, days in see going trailing see time we're and it's lot how favor. a over out down hard ago, into deals season pan most they come the on There's Yes. numbers I XX. waiting that a we're them. and wait XX buy being right kind getting just how there of a the kind We're no how the year every works just like that winter season. selling they we -- things especially -- in And dealers our hurry since to anything And compared look of do now. out next for I to the time of into mean of

for to kind timing now disciplined in and be be bit fall wait selective stuff going of just lap. little on our a Just very and to right

Operator

next the Instructions] from [Operator Our DA line comes question of Davidson. Brian from Griffin

Unknown Analyst

these so just maybe competitive, on far still but what promotional a been I'm shows seeing seen guys and right? maybe it's so by aspect you category dealers. other have high-level What of far, assuming comments from some you've

Philip Singleton

Show basically they're much especially help the this a to we've same stated got inventory I very out inventory. bit had Atlanta the boat -- boat they've think and was steady all boat why that's there could the shows. really show been. that. and for weren't you are They being it's manufacturers Boat that what or in [ to through, been you buy Eddy in moving think I ] past what I supportive, and lot fall the pushing level January for last still be last know still because and doing a their whole did But ready the mean, at October they expecting the know pretty quarter I no think been we at it's doing on Anthony, And they season. buy incentive the year. shows at still be when

it's par So been X.X promotion. years year, with been for much what pretty over of just it's I last think on the like

very think committed I clean are all manufacturers helping retail moving inventory to that the because benefits field us forward. up the

Anthony Aisquith

think us. it's everybody. manufacturers, of not our mean No, are the competitors, all in been to it's with every digging our I them just manufacturer, manufacturers, board I across

those haven't this at So I they are help -- don't point, slowing down I very see putting together. but helpful facilitate it to

Unknown Analyst

Got what are how from impact OEMs you. demand and margins that And overall? you hearing may and potential guys on tariffs

Philip Singleton

ahead, mean -- go Jack. Well, I

Jack Ezzell

think that. it product, do be think in what anything which a -- like things to remains have but of of I to of certainly worked sort them wait-and-see it of a course to through on But sources their noise United just I I seen I diversify over number lot have manufactured of of there's are helps. States, too the of time, to kind a look much manufacturers products standpoint. a to the lot or think mean, to exactly prepare counteract try the around

Philip Singleton

it impactful I have they're or But what tariffs or boat, at on. don't to a want because nothing to on you if -- depending where say effect it's at meaningful going are you're look It's and that it's pontoon boat, in looking fishing not -- will the ski-boat is to whether the boat or no say the the aluminum, of about, run console in That's that center of at the pricing make boat. a that majority where materials The is. fiberglass, majority stuff. your to engine the a or pricing all and raw the all

[ up go this sudden, materials XX%. XX% to be from went it's So of all impact. the countries the not people. mean, expensive have seem in going all because are me they're to ] doesn't to big it's that it see so tariffs hell, stuff of already piece a just we're [indiscernible] going of I on and X not these boat now boats to billion all like to up bothering and where just going to all different build it a It's a an

Operator

There are call. no further concludes conference at time. This today's questions this

disconnect. now may You

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