OneWater Marine Inc. Reports Fiscal Fourth Quarter and Full-Year 2024 Financial Results
OneWater Marine Inc. (NASDAQ: ONEW) reported its financial results for the fiscal fourth quarter and year ended September 30, 2024.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | YoY Change | FY 2024 | FY 2023 | YoY Change |
|---|---|---|---|---|---|---|
| Total Revenue | $377.9M | $451.0M | -16.2% | $1.78B | $1.94B | -8.5% |
| Net Loss | $(10.4)M | $(110.9)M | Improved | $(6.2)M | $(39.1)M | Improved |
| Earnings per Share (EPS) | $(0.63) | $(6.89) | Improved | $(0.39) | $(2.69) | Improved |
| Adjusted Diluted EPS | $(0.36) | $0.42 | Down | $0.98 | $5.10 | Down |
| Gross Profit | $90.7M | $119.0M | -23.8% | $435.1M | $535.1M | -18.7% |
| Gross Profit Margin | 24.0% | 26.4% | -240 bps | 24.5% | 27.6% | -310 bps |
| Adjusted EBITDA | $7.8M | $29.8M | -73.7% | $82.5M | $176.4M | -53.2% |
Interpretation: OneWater Marine's financial performance shows significant declines in both quarterly and yearly revenues, largely due to decreased sales of new and pre-owned boats. Although the net loss decreased due to previous impairment charges, the company failed to meet the revenue and EPS consensus estimates for the current quarter. The Gross profit margin eroded due to pricing pressures.
Revenue Performance by Segment
| Segment | Q4 2024 | YoY Change | FY 2024 | YoY Change |
|---|---|---|---|---|
| New Boat Revenue | Down | -18.0% | Down | NA |
| Pre-owned Boat Revenue | Down | -20.1% | Down | NA |
| Service, Parts & Other | Down | -6.7% | Down | -9.7% |
Interpretation: The most notable declines were in the new and pre-owned boat segments, which reflect challenges with inventory and sales disrupted by severe weather conditions. Despite these setbacks, finance and insurance income slipped but fared better as a percentage of total sales.
Key Developments and Operational Highlights
- Natural Disasters: Hurricane Helene negatively impacted sales, particularly in Florida, where several locations temporarily closed.
- Operational Readiness: All retail locations are now operational, and the company is actively supporting local recovery efforts.
- Cost Management: Selling, general and administrative expenses decreased on a dollar basis due to cost reduction initiatives.
Management Commentary
CEO Austin Singleton highlighted the company's resilience in a challenging environment, citing revenue and brand diversification as pillars of strength. He expressed caution over the immediate outlook due to ongoing weather-related interruptions but remained optimistic about the year ahead.
Forward Guidance
For the fiscal year 2025, OneWater anticipates: - Revenue: $1.7 billion to $1.85 billion - Adjusted EBITDA: $80 million to $110 million - Adjusted Diluted EPS: $1.00 to $2.00
Stock Price Movement
- Following the earnings release, OneWater Marine's stock price showed a 0.0% change, indicating a stable market response to the quarterly results.
In summary, although OneWater Marine faces challenges due to external factors, including severe weather, management remains optimistic about the company's strategic position and potential for recovery in the upcoming fiscal year.
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