Revenues Down 8.7% in OneWater Third Quarter

OneWater Marine reported revenues of $524.2 million in its fiscal third quarter, a year-over-year decrease of 8.7% from $594.3 million. Same-store sales were down 8%, new-boat revenue decreased 10.4%, and preowned-boat income decreased 4.1%.

“In the third quarter, our strategic inventory management and operational execution drove outperformance against the industry,” CEO Austin Singleton said in a statement. “However, our performance for the quarter was below our expectations due to a progressively weaker market environment and a negative impact from weather in Texas. As we look to the balance of the fiscal year, we remain cautiously optimistic. We are focused on proactively managing inventory and expenses, which should provide some tailwinds as we navigate into fiscal 2025.”

Excluding Texas locations because of adverse weather, same-store unit sales were down 1.9% for the quarter. The company said said finance-and-insurance income increased slightly as a percentage of total boat sales.

Service, parts and other sales were down 8.4%. Excluding the impact from dispositions that occurred in the fourth quarter of 2023, the company said, dealership segment service, parts and other sales were positive. Distribution segment service, parts and other sales were lower due to reduced production by boatbuilders.

Gross profit for the quarter was $132.6 million, down from $159.4 million year-over-year. Gross profit margin declined 24.4%, a drop of 240 basis points compared with the prior year, driven by the “normalization of new and preowned boat pricing and lower revenue from higher-margin businesses.”

Selling, general and administrative expenses totaled $187.1 million in the third quarter compared with $92.8 million a year ago. Net income was $16.7 million, compared with $33.3 in the prior-year quarter.

As of June 30, cash and equivalents were $41 million, and total liquidity, including cash and availability under credit facilities, exceeded $60 million. Total inventory at the end of June decreased to $598.6 million, compared with $687.5 million March 31.