OneWater(ONEW) - 2025 Q1 - Quarterly Report

Revenue Performance - Total revenues for the three months ended December 31, 2024, increased to $375.814 million, up from$364.013 million in the same period of 2023, representing a growth of 2.4%[18] - New boat sales revenue reached $247.997 million, compared to$241.084 million in the prior year, reflecting an increase of 2.5%[18] - Sales from the top ten brands accounted for approximately 45.7% of total sales for the three months ended December 31, 2024, down from 48.9% in the same period of 2023[28] - The company recognized revenue from contract liabilities of $38.41 million for the three months ended December 31, 2024, compared to$31.38 million for the same period in 2023, indicating a year-over-year increase of approximately 22.5%[46] - Revenue from goods and services transferred at a point in time accounted for 92.6% of total revenue for the three months ended December 31, 2024, slightly down from 92.7% in the same period of 2023[47] Financial Losses - The net loss attributable to OneWater Marine Inc. for the quarter was $11.971 million, compared to a net loss of$7.170 million in the same quarter of 2023, indicating a deterioration in performance[18] - For the three months ended December 31, 2024, OneWater Marine Inc. reported a net loss of $13,612,000, compared to a net loss of$7,970,000 for the same period in 2023, indicating a year-over-year increase in losses of approximately 71.5%[23] - Net loss increased by $5.6 million to$13.6 million for the three months ended December 31, 2024, compared to $8.0 million for the same period in 2023[176] - Adjusted net loss attributable to OneWater Marine Inc. was$8.0 million for the three months ended December 31, 2024, compared to $5.4 million for the same period in 2023, indicating a decrease of$2.54 million[190] Cash Flow and Assets - The company’s cash position improved to $22.711 million as of December 31, 2024, compared to$16.849 million at the end of September 2024, an increase of 34.8%[16] - Total current assets increased to $797.474 million as of December 31, 2024, up from$777.366 million at the end of September 2024, marking a rise of 2.8%[16] - Total cash and restricted cash at the end of the period was $36,558,000, down from$54,153,000 at the end of December 2023, reflecting a decrease of 32.5%[23] - Net cash used in operating activities decreased by $72.6 million to$37.4 million for the three months ended December 31, 2024, compared to $110.0 million for the same period in 2023[199] - Net cash used in investing activities was$2.8 million for the three months ended December 31, 2024, a decrease of $42.6 million from net cash provided by investing activities of$39.8 million in 2023[200] Expenses and Liabilities - Selling, general and administrative expenses for the quarter were $79.060 million, slightly down from$79.599 million in the same quarter of 2023, a decrease of 0.7%[18] - The interest expense on floor plan financing was $7.026 million for the quarter, down from$7.812 million in the same period of 2023, a decrease of 10.1%[18] - Total liabilities rose to $1.227928 billion as of December 31, 2024, compared to$1.199236 billion at the end of September 2024, reflecting an increase of 2.4%[16] - The company reported depreciation and amortization expenses of $6,037,000 for the three months ended December 31, 2024, compared to$4,905,000 in the same period of 2023, reflecting an increase of 23.0%[23] Inventory and Receivables - The company’s inventory levels increased to $636.676 million as of December 31, 2024, compared to$590.838 million at the end of September 2024, an increase of 7.8%[16] - The company experienced a significant increase in accounts receivable, totaling $16,357,000 for the three months ended December 31, 2024, compared to$20,240,000 in the prior year, representing a decrease of 19.0%[23] - Total accounts receivable as of December 31, 2024, was $57.44 million, down from$73.82 million as of September 30, 2024, reflecting a decrease of approximately 22%[63] - New vessels inventory increased to $481.06 million as of December 31, 2024, from$442.83 million as of September 30, 2024, reflecting an increase of approximately 8.6%[64] Acquisitions and Growth Strategy - OneWater Marine Inc. acquired the remaining 20% of Quality Assets and Operations, LLC on October 31, 2023, resulting in full ownership as of December 31, 2024[30] - The company aims to acquire dealerships at attractive EBITDA multiples, typically less than 4.0x EBITDA on a trailing twelve-month basis[137] - The company expects to continue strategic acquisitions to enhance dealership growth and expand its parts and accessories business[136] - The company has completed 34 acquisitions since its formation in 2014, including 81 additional dealerships and 12 distribution centers[134] Market Presence - OneWater Marine Inc. operated 96 retail locations and 10 distribution centers/warehouses across 19 states as of December 31, 2024, maintaining a strong presence in key markets[26] - The company operates 96 dealerships across 17 states, positioning itself as one of the largest marine retailers in the U.S.[130] - The Dealerships segment accounted for approximately 93% of revenues, with over 9,500 new and pre-owned boats sold in fiscal year 2024[132] Financial Compliance and Standards - The Company was in compliance with all financial and non-financial covenants for the reporting period ended December 31, 2024[70] - The company plans to adopt new accounting standards related to segment reporting and income tax disclosures in fiscal years 2025 and 2026, respectively, which may impact future financial reporting[56][57] - The company was in compliance with all covenants under the A&R Credit Facility and the Inventory Financing Facility for the reporting period ended December 31, 2024[195]