OneWater Marine announced the results for its first fiscal quarter ending Dec. 31.
Revenue for the quarter was a record $366.7 million, an increase of 9% compared with the year-prior quarter. OneWater attributed the growth to strong service, parts and other sales from acquired businesses.
Same-store sales decreased 14% following 28% and 38% increases in the first quarters 2022 and 2021, respectively. The company attributes the decline primarily to the return of seasonality in a business where lower sales and higher inventory levels are typical in the first quarter.
Historically, the first quarter has represented about 15% of OneWater’s annual sales.
“Our first quarter results came in largely as we anticipated as the industry experienced a return to more normalized seasonality, with revenue growing high-single digits, on top of a 57% increase in the prior year,” CEO Austin Singleton said in a statement. “Our high-margin service, parts and other sales grew 86%, driven by strategic acquisitions over the last 18 months, strengthening our overall gross margins as expected.
“Signs are pointing to a strong selling season, with positive boat show activity and healthy demand levels, but given the considerable amount of unknowns driven by a cloudy macro-economic environment, we are lowering our full-year outlook,” he added.
New-boat revenue decreased 1.6%, driven by a drop in unit sales and muted by an increase in average unit price. Preowned boat revenue increased 4.4% compared with the previous-year quarter; finance and insurance income gained 4%. Service, parts and other sales were up 86.3% compared with the prior-year quarter, as the company focused on expanding its high-margin, less-cyclical revenue streams.
Gross profit totaled $110 million for the quarter, up $9 million over 2022. Gross profit margin of 30% was flat compared with the previous year.
Net income for the quarter was $11.4 million, compared with $23.5 million in 2022. As of Dec. 31, OneWater’s cash and cash equivalents balance was $43.5 million, and total liquidity, including cash and availability under credit facilities, was in excess of $100 million.
