Q3 2024 OneWater Marine Inc Earnings Call Transcript
Key Points
- OneWater Marine Inc (ONEW) outperformed industry data with unit sales down 14% in June and 6% for the quarter, compared to the industry's 23% and 15% declines, respectively.
- The company made significant progress in reducing inventory levels, with a 13% sequential decrease in total inventory.
- Finance and insurance income increased slightly as a percentage of sales, indicating strong finance penetration.
- Proactive cost optimization initiatives have begun to show benefits, with SG&A expenses down 6.2% due to previous cost reduction actions.
- The M&A deal pipeline remains active, with the company focusing on strategic initiatives and thoughtful capital allocation.
- Fiscal third-quarter revenue decreased by 8.7% to $542 million, driven by a 10% decline in new boat sales and a 4% decline in pre-owned boat sales.
- Severe weather in Texas significantly impacted sales, particularly in key markets like Houston and Dallas.
- Gross profit decreased by 17% to $133 million, with gross profit margins declining 20 basis points sequentially.
- The company lowered its full-year outlook due to challenging market conditions and adverse weather impacts.
- Operating income decreased from $60 million to $40 million, and adjusted EBITDA fell from $62 million to $39 million.
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.
Good morning, and welcome to OneWater Marine's fiscal third-quarter 2024 earnings conference call. I'm joined on the call today by Austin Singleton, Chief Executive Officer; and Anthony Aisquith, President and Chief Operating Officer.
Before we begin, I would like to remind you that certain statements made by management in this morning's conference call regarding OneWater Marine and its operations may be considered forward-looking statements under security law and involve a number of risks and uncertainties. As a result, the company cautions you that there are a number of factors, many of which are beyond the company's control, which would cause actual results and events to differ materially from those described in
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