OneWater Marine Inc. (ONEW) Q4 2024 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 15 2024
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Should l Buy ONEW?
Source: SeekingAlpha
Fiscal Fourth Quarter Revenue $378 million, a decrease of 16% from $451 million in 2023 due to disruptions caused by Hurricane Helene.
New Boat Sales $217 million, down 18% from the previous year.
Pre-Owned Boat Sales $73 million, a decrease of 20% year-over-year.
Service Parts and Other Sales $76 million, down 7% from the prior year.
Finance and Insurance Revenue $11 million, a decrease of 12% in the fourth quarter.
Gross Profit $91 million, down 24% from $119 million in 2023, impacted by return to pre-COVID margins and restructuring charges.
Selling, General and Administrative Expenses (SG&A) $80 million, down from $85 million, representing 21% of sales, up 220 basis points due to lower sales.
Operating Income Increased by $4 million from a loss of $117 million in the previous year.
Adjusted EBITDA $8 million, down from $30 million in the prior year.
Net Loss for Fiscal Fourth Quarter $10 million or $0.63 per diluted share, compared to a net loss of $111 million or $6.89 per diluted share in 2023.
Adjusted Loss per Diluted Share $0.36 compared to an adjusted earnings per diluted share of $0.42 in the previous year.
Full Year Revenue $1.8 billion, an 8% decrease compared to the prior year.
Same-Store Sales Decreased 7% for fiscal 2024, impacted by softer retail environment and weather-related closures.
Service Parts and Other Revenue for Fiscal 2024 $291 million, down 10% year-over-year.
Full Year Gross Profit $435 million, a decrease of 19% from the previous year.
Gross Profit Margin for Fiscal 2024 24.5%.
Full Year SG&A Expenses $333 million, or 18.8% of revenue, down from $346 million or 17.8% of revenue in 2023.
Full Year Operating Income $65 million, compared to $18 million in the prior year.
Net Loss for Fiscal Year 2024 $6 million or $0.39 per diluted share, compared to a net loss of $39 million or $2.69 per diluted share in the prior year.
Adjusted EBITDA for Fiscal Year 2024 $82 million, down from $5.10 per diluted share in 2023.
Total Liquidity as of September 30, 2024 $30 million, including $17 million in cash.
Total Inventory as of September 30, 2024 $591 million, down from $599 million on June 30, 2024.
Total Long-Term Debt as of September 30, 2024 $423 million, resulting in a net leverage of 4.9 times trailing 12-month adjusted EBITDA.
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Analyst Views on ONEW
About ONEW
OneWater Marine Inc. is a premium marine retailer in the United States. The Company operates a total of approximately 95 retail locations, six distribution centers/warehouses and multiple online marketplaces in 18 different states. The Company's segments include Dealerships and Distribution. The Dealership segment is engaged in the sale of new and pre-owned boats, arranges financing and insurance products, performs repairs and maintenance services, offers marine related parts and accessories and offers slip and storage accommodations in certain locations. The Distribution segment is engaged in the manufacturing, assembly and distribution primarily of marine-related products to distributors, big box retailers and online retailers through a network of warehouses and distribution centers. It offers a range of branded parts and accessories including jack plates, bilge pumps, rigging parts, plumbing components, LED lighting, storage systems and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Management Conference Call: Following the earnings release, the management team will host a conference call at 8:30 a.m. Eastern Time to discuss the financial results, enhancing transparency for investors regarding the company's operations.
- Webcast Availability: The conference call will be available via live webcast on the company's investor relations webpage and archived for one year, ensuring that investors can access the information at their convenience.
- Company Overview: OneWater Marine is one of the largest premium marine retailers in the U.S., operating 94 retail locations and 6 distribution centers, offering a diverse range of products and services, which underscores its strong competitive position in the marine retail market.
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- Management Conference Call: Following the earnings release, the management team will host a conference call at 8:30 a.m. Eastern Time to discuss the financial results, enhancing investor understanding of the company's performance.
- Webcast Availability: The conference call will be available via live webcast on the company's Investor Relations section and archived for one year, ensuring investors can access the information at their convenience.
- Company Overview: OneWater Marine is one of the largest premium marine retailers in the U.S., operating 94 retail locations and 6 distribution centers, offering a diverse range of products and services including new and pre-owned boat sales, finance, insurance, and maintenance services.
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- Management Conference Call: Following the earnings release, the management team will host a conference call at 8:30 a.m. Eastern Time to discuss the financial results, enhancing transparency for investors regarding the company's operations.
- Webcast Availability: The conference call will be available via live webcast on the company's investor relations webpage and archived for one year, ensuring that investors can access the information at their convenience.
- Company Overview: OneWater Marine is one of the largest premium marine retailers in the U.S., operating 94 retail locations and 6 distribution centers, offering a diverse range of products and services, which underscores its strong competitive position in the marine retail market.
See More
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- Management Conference Call: Following the earnings release, the management team will host a conference call at 8:30 a.m. Eastern Time to discuss the financial results, enhancing investor understanding of the company's performance.
- Webcast Availability: The conference call will be available via live webcast on the company's Investor Relations section and archived for one year, ensuring investors can access the information at their convenience.
- Company Overview: OneWater Marine is one of the largest premium marine retailers in the U.S., operating 94 retail locations and 6 distribution centers, offering a diverse range of products and services including new and pre-owned boat sales, finance, insurance, and maintenance services.
See More
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- Declining EPS: The company's earnings per share (EPS) has plummeted by 53.6% over the last three years, despite a modest revenue increase of 1.9%, suggesting a decline in profitability during expansion, which could raise concerns among investors regarding its earnings outlook.
- High Debt Levels: With $526.7 million in debt against only $32.23 million in cash, OneWater's 7× net-debt-to-EBITDA ratio indicates over-leverage, increasing financial risk and the potential for credit rating downgrades if profitability declines.
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See More
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See More
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- Adjusted Financial Outlook: The company has lowered its fiscal 2026 revenue forecast to between $1.78 billion and $1.88 billion, down from the previous range of $1.83 billion to $1.93 billion, reflecting the revenue loss from exited brands.
- Earnings Per Share Revision: Adjusted earnings per share are now expected to be between $0.20 and $0.70, a decrease from the prior forecast of $0.25 to $0.75, indicating pressure on profitability following the divestiture.
- Positive Market Reaction: Despite the downward revision in financial outlook, OneWater Marine's shares rose over 1% in pre-market trading, reflecting investor confidence in the company's strategic adjustments, closing at $13.51 on Monday with a gain of 1.73%.
See More
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- Financial Impact: This transaction is projected to lower OneWater's net leverage ratio below 4.0x by fiscal year-end, with anticipated annual interest expense savings of approximately $3.5 million, thereby strengthening cash flow.
- Fiscal Year 2026 Outlook: OneWater has updated its fiscal year 2026 guidance, forecasting total revenue between $1.78 billion and $1.88 billion, while same-store sales are expected to remain flat due to the impact of exited brands, reflecting a challenging industry environment.
- Focus on Core Assets: The company will continue to concentrate on core assets, with adjusted EBITDA expected to range from $60 million to $80 million, demonstrating its strategic adaptability amid market uncertainties.
See More
