OneWater Marine Inc. Announces Fiscal Third Quarter 2024 Results
OneWater Marine Inc. (NASDAQ: ONEW) reported its fiscal third quarter 2024 results, showing a 9% decrease in revenue to $542 million. The company experienced an 8% decline in same-store sales and a gross profit margin of 24.4%. GAAP net income was $17 million, or $0.99 per diluted share, while adjusted diluted earnings per share reached $1.05. Adjusted EBITDA stood at $39 million.
Despite outperforming the industry, OneWater faced challenges due to a weaker market environment and adverse weather in Texas. The company is focusing on proactive inventory and expense management as it approaches fiscal 2025. For the full fiscal year 2024, OneWater anticipates dealership same-store sales to be down mid-single digits, with Adjusted EBITDA expected between $90 million to $100 million and adjusted earnings per diluted share projected at $1.50 to $2.00.
OneWater Marine Inc. (NASDAQ: ONEW) ha riportato i risultati del suo terzo trimestre fiscale 2024, evidenziando una riduzione del 9% nei ricavi, pari a 542 milioni di dollari. L'azienda ha registrato un declino dell'8% nelle vendite negli stessi negozi e un margine di profitto lordo del 24,4%. L'utile netto secondo i principi contabili GAAP è stato di 17 milioni di dollari, ovvero 0,99 dollari per azione diluita, mentre l'utile per azione diluita rettificato ha raggiunto 1,05 dollari. L'EBITDA rettificato è stato di 39 milioni di dollari.
Nonostante abbia superato le performance del settore, OneWater ha affrontato sfide legate a un mercato più debole e condizioni meteorologiche sfavorevoli in Texas. L'azienda si sta concentrando sulla gestione proattiva dell'inventario e delle spese mentre si avvicina all'anno fiscale 2025. Per l'intero anno fiscale 2024, OneWater prevede che le vendite negli stessi negozi dei concessionari scenderanno a numeri a una sola cifra, con l'EBITDA rettificato atteso tra 90 milioni e 100 milioni di dollari e gli utili rettificati per azione diluita previsti tra 1,50 e 2,00 dollari.
OneWater Marine Inc. (NASDAQ: ONEW) informó los resultados de su tercer trimestre fiscal de 2024, mostrando una disminución del 9% en los ingresos, alcanzando 542 millones de dólares. La compañía experimentó un declive del 8% en las ventas en tiendas comparables y un margen de ganancia bruta del 24.4%. La utilidad neta de acuerdo con los principios contables generalmente aceptados fue de 17 millones de dólares, o 0.99 dólares por acción diluida, mientras que las ganancias ajustadas por acción diluida alcanzaron 1.05 dólares. El EBITDA ajustado fue de 39 millones de dólares.
A pesar de superar el desempeño de la industria, OneWater enfrentó desafíos debido a un entorno de mercado más débil y condiciones climáticas adversas en Texas. La compañía se está enfocando en la gestión proactiva de inventarios y gastos mientras se acerca al año fiscal 2025. Para el año fiscal 2024 completo, OneWater anticipa una disminución de ventas en tiendas comparables a un solo dígito medio, con el EBITDA ajustado esperado entre 90 millones y 100 millones de dólares y las ganancias ajustadas por acción diluida proyectadas entre 1.50 y 2.00 dólares.
OneWater Marine Inc. (NASDAQ: ONEW)는 2024 회계년도 3분기 실적을 발표하며 매출이 9% 감소한 5억 4200만 달러를 기록했다고 전했습니다. 이 회사는 동일 매장 매출이 8% 감소했으며, 총 이익률이 24.4%에 달했습니다. GAAP 기준의 순이익은 1700만 달러, 즉 희석 주당 0.99 달러였으며, 조정된 희석 주당 수익은 1.05 달러에 이르렀습니다. 조정된 EBITDA는 3900만 달러로 집계되었습니다.
산업 평균을 초과하는 성과에도 불구하고, OneWater는 시장 환경 약화와 텍사스의 불리한 기후로 인해 어려움에 직면했습니다. 이 회사는 2025 회계연도를 앞두고 재고 및 비용 관리를 적극적으로 추진할 계획입니다. 2024 회계연도 전체에 대해 OneWater는 대리점의 동일 매장 매출이 중간 한 자릿수 감소할 것으로 예상하며, 조정된 EBITDA는 9000만 달러에서 1억 달러 사이로, 조정된 희석 주당 수익은 1.50 달러에서 2.00 달러로 예상하고 있습니다.
OneWater Marine Inc. (NASDAQ: ONEW) a publié ses résultats pour le troisième trimestre fiscal 2024, montrant une diminution de 9 % des revenus, atteignant 542 millions de dollars. La société a connu un décrochage de 8 % des ventes dans les mêmes magasins et une marge brute de 24,4 %. Le revenu net selon les normes GAAP s'élevait à 17 millions de dollars, soit 0,99 dollar par action diluée, tandis que le bénéfice ajusté par action diluée a atteint 1,05 dollar. L'EBITDA ajusté s'est élevé à 39 millions de dollars.
Bien que la société ait dépassé les performances de l'industrie, OneWater a rencontré des défis en raison d'un environnement de marché plus faible et de conditions météorologiques défavorables au Texas. L'entreprise se concentre sur la gestion proactive des inventaires et des dépenses alors qu'elle se rapproche de l'exercice fiscal 2025. Pour l'exercice fiscal 2024 complet, OneWater prévoit que les ventes dans les mêmes magasins des concessionnaires diminueront d'un chiffre à un seul chiffre moyen, avec un EBITDA ajusté attendu entre 90 millions et 100 millions de dollars et des bénéfices ajustés par action diluée projetés entre 1,50 et 2,00 dollars.
OneWater Marine Inc. (NASDAQ: ONEW) berichtete über die Ergebnisse des dritten Quartals des Geschäftsjahres 2024, die einen Rückgang der Einnahmen um 9 % auf 542 Millionen Dollar zeigten. Das Unternehmen verzeichnete einen Rückgang der Same-Store-Verkäufe um 8 % und eine Bruttogewinnmarge von 24,4 %. Der GAAP-Nettoertrag betrug 17 Millionen Dollar, oder 0,99 Dollar pro verwässerter Aktie, während der bereinigte Gewinn pro verwässerter Aktie 1,05 Dollar erreichte. Das bereinigte EBITDA belief sich auf 39 Millionen Dollar.
Trotz der Übertreffung der Branche sah sich OneWater Herausforderungen aufgrund eines schwächeren Marktumfelds und ungünstiger Wetterbedingungen in Texas gegenüber. Das Unternehmen konzentriert sich auf die proaktive Verwaltung von Lagerbeständen und Ausgaben, während es sich dem Geschäftsjahr 2025 nähert. Für das gesamte Geschäftsjahr 2024 erwartet OneWater, dass die Same-Store-Umsätze der Händler im mittleren einstelligen Bereich zurückgehen werden, wobei das bereinigte EBITDA zwischen 90 Millionen und 100 Millionen Dollar und die bereinigten Erträge pro verwässerter Aktie zwischen 1,50 und 2,00 Dollar prognostiziert werden.
- Outperformed industry despite challenging conditions
- Reduced SG&A expenses by 6.2% through cost management
- Decreased inventory by 13% sequentially, aligning with market demand
- Maintained strong liquidity with over $60 million available
- Revenue decreased 9% to $542 million
- Same-store sales declined 8%
- Gross profit margin decreased 240 basis points to 24.4%
- Net income dropped from $33.3 million to $16.7 million year-over-year
- Adjusted EBITDA decreased 36.6% to $39.2 million
- Lowered full-year guidance for same-store sales and financial metrics
Insights
OneWater Marine's fiscal Q3 2024 results reveal a challenging quarter for the boat retailer. Revenue declined
Despite the headwinds, OneWater demonstrated effective cost management, reducing SG&A expenses by
The company's inventory management deserves attention. Total inventory decreased
However, the revised full-year guidance suggests continued challenges ahead. The expectation of mid-single-digit declines in dealership same-store sales and adjusted EBITDA range of
Investors should monitor OneWater's ability to navigate the weakening market environment, particularly its success in maintaining margins and managing inventory levels in the face of declining sales. The company's performance relative to the broader boating industry will be a key indicator of its competitive positioning and long-term resilience.
OneWater Marine's Q3 results offer valuable insights into the current state of the recreational boating market. The
Notably, the company's performance in Texas was significantly impacted by adverse weather conditions. Excluding Texas locations, same-store unit sales were only down
The normalization of new and pre-owned boat pricing is a trend worth watching. It suggests that the exceptional demand and pricing power seen during the pandemic years is waning, potentially signaling a return to more typical market conditions. This could have implications for profit margins across the industry in the coming quarters.
OneWater's distribution segment experienced lower service, parts and other sales due to reduced production by boat manufacturers. This points to a broader industry adjustment, with manufacturers likely scaling back production in response to softening demand. Investors should monitor how this trend develops, as it could impact the supply chain and inventory levels throughout the boating retail sector.
Looking ahead, the company's cautiously optimistic outlook and focus on proactive inventory and expense management suggest that industry players are preparing for a potentially challenging period. This defensive posture could become a common theme among boat retailers as they navigate the evolving market landscape.
Significantly Outperformed Industry, Notwithstanding a Severe Weather Impact in Texas
Continued to Manage the Cost Structure, Lowering SG&A on a Dollar Basis During the Quarter
Clean and Optimized Inventory Position Ahead of Fiscal Year 2025
Fiscal Third Quarter 2024 Highlights
- Revenue decreased
9% to$542 million - Same-store sales decreased
8% for the quarter - Gross profit margin of
24.4% - GAAP net income of
$17 million , or$0.99 per diluted share and adjusted diluted earnings per share1 of$1.05 - Adjusted EBITDA1 was
$39 million
BUFORD, Ga., July 30, 2024 (GLOBE NEWSWIRE) -- OneWater Marine Inc. (NASDAQ: ONEW) (“OneWater” or the “Company”) today announced results for its fiscal third quarter ended June 30, 2024.
“In the third quarter, our strategic inventory management and operational execution drove outperformance against the industry. 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,” commented Austin Singleton, Chief Executive Officer at OneWater. “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.”
| For the Three Months Ended June 30 | 2024 | 2023 | $ Change | % Change | |||||||||
| Revenues | (unaudited, $ in thousands) | ||||||||||||
| New boat | $ | 333,162 | $ | 371,645 | $ | (38,483 | ) | (10.4 | )% | ||||
| Pre-owned boat | 106,889 | 111,469 | (4,580 | ) | (4.1 | )% | |||||||
| Finance & insurance income | 17,932 | 19,028 | (1,096 | ) | (5.8 | )% | |||||||
| Service, parts & other | 84,458 | 92,197 | (7,739 | ) | (8.4 | )% | |||||||
| Total revenues | $ | 542,441 | $ | 594,339 | $ | (51,898 | ) | (8.7 | )% | ||||
Fiscal Third Quarter 2024 Results
Revenue for fiscal third quarter 2024 was
Gross profit totaled
Fiscal third quarter 2024 selling, general and administrative expenses totaled
Net income for fiscal third quarter 2024 totaled
Fiscal third quarter 2024 Adjusted EBITDA1 decreased
As of June 30, 2024, the Company’s cash and cash equivalents balance was
Total long-term debt as of June 30, 2024 was
Fiscal Year 2024 Guidance
The Company is updating its previously issued fiscal full year 2024 outlook. For fiscal full year 2024, OneWater anticipates dealership same-store sales to be down mid-single digits. Adjusted EBITDA2 is expected to be in the range of
OneWater will host a conference call to discuss its fiscal third quarter earnings on Tuesday, July 30, at 8:30 am Eastern time. To access the conference call via phone, participants can dial 1-833-630-0581 or 1-412-317-1814 (International).
Alternatively, a live webcast of the conference call can be accessed through the “Events” section of the Company’s website at https://investor.onewatermarine.com/ where it will be archived for one year.
A telephonic replay will also be available through August 13th, 2024 by dialing 1-877-344-7529 (US Toll Free), 855-669-9658 (Canada Toll Free), or 1-412-317-0088 (International Toll), by entering access code 1155553.
- See reconciliation of Non-GAAP financial measures below.
- See reconciliation of Non-GAAP financial measures below for a discussion of why reconciliations of forward-looking Adjusted EBITDA and adjusted earnings per diluted share are not available without unreasonable effort.
| ONEWATER MARINE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| New boat | $ | 333,162 | $ | 371,645 | $ | 901,552 | $ | 959,334 | |||||||
| Pre-owned boat | 106,889 | 111,469 | 238,820 | 242,641 | |||||||||||
| Finance & insurance income | 17,932 | 19,028 | 40,022 | 43,286 | |||||||||||
| Service, parts & other | 84,458 | 92,197 | 214,381 | 240,068 | |||||||||||
| Total revenues | 542,441 | 594,339 | 1,394,775 | 1,485,329 | |||||||||||
| Gross profit | |||||||||||||||
| New boat | 56,722 | 76,162 | 161,483 | 213,567 | |||||||||||
| Pre-owned boat | 22,263 | 25,055 | 50,065 | 57,743 | |||||||||||
| Finance and insurance | 17,932 | 19,028 | 40,022 | 43,286 | |||||||||||
| Service, parts & other | 35,688 | 39,189 | 92,840 | 101,523 | |||||||||||
| Total gross profit | 132,605 | 159,434 | 344,410 | 416,119 | |||||||||||
| Selling, general and administrative expenses | 87,059 | 92,841 | 253,169 | 260,872 | |||||||||||
| Depreciation and amortization | 5,091 | 5,980 | 14,185 | 17,310 | |||||||||||
| Transaction costs | 242 | 97 | 966 | 1,668 | |||||||||||
| Change in fair value of contingent consideration | 214 | 436 | 3,918 | 763 | |||||||||||
| Restructuring and impairment | — | — | 11,847 | — | |||||||||||
| Net income from operations | 39,999 | 60,080 | 60,325 | 135,506 | |||||||||||
| Other expense (income): | |||||||||||||||
| Interest expense – floor plan | 9,290 | 7,436 | 25,627 | 17,687 | |||||||||||
| Interest expense – other | 9,008 | 9,077 | 27,352 | 25,265 | |||||||||||
| Other (income) expense, net | (1,357 | ) | 361 | 889 | (465 | ) | |||||||||
| Total other expense, net | 16,941 | 16,874 | 53,868 | 42,487 | |||||||||||
| Net income before income tax expense | 23,058 | 43,206 | 6,457 | 93,019 | |||||||||||
| Income tax expense | 6,344 | 9,916 | 2,222 | 21,264 | |||||||||||
| Net income | 16,714 | 33,290 | 4,235 | 71,755 | |||||||||||
| Net income attributable to non-controlling interests | — | (938 | ) | (119 | ) | (3,468 | ) | ||||||||
| Net income attributable to non-controlling interests of One Water Marine Holdings, LLC | (2,031 | ) | (3,782 | ) | (572 | ) | (8,013 | ) | |||||||
| Net income attributable to OneWater Marine Inc. | $ | 14,683 | $ | 28,570 | $ | 3,544 | $ | 60,274 | |||||||
| Net earnings per share of Class A common stock – basic | $ | 1.01 | $ | 2.00 | $ | 0.24 | $ | 4.21 | |||||||
| Net earnings per share of Class A common stock – diluted | $ | 0.99 | $ | 1.95 | $ | 0.24 | $ | 4.12 | |||||||
| Basic weighted-average shares of Class A common stock outstanding | 14,593 | 14,314 | 14,571 | 14,317 | |||||||||||
| Diluted weighted-average shares of Class A common stock outstanding | 14,891 | 14,675 | 14,835 | 14,639 | |||||||||||
| ONEWATER MARINE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value and share data) (Unaudited) | |||||
| June 30, 2024 | June 30, 2023 | ||||
| ASSETS | |||||
| Cash | $ | 41,034 | $ | 45,409 | |
| Restricted cash | 10,896 | 7,753 | |||
| Accounts receivable, net | 103,854 | 93,972 | |||
| Inventories, net | 598,567 | 572,932 | |||
| Prepaid expenses and other current assets | 67,645 | 88,399 | |||
| Total current assets | 821,996 | 808,465 | |||
| Property and equipment, net | 92,602 | 118,965 | |||
| Operating lease right-of-use assets | 142,580 | 127,973 | |||
| Other long-term assets | 1,304 | 6,062 | |||
| Deferred tax assets, net | 33,455 | 5,607 | |||
| Intangible assets, net | 207,341 | 306,776 | |||
| Goodwill | 336,602 | 397,469 | |||
| Total assets | $ | 1,635,880 | $ | 1,771,317 | |
| LIABILITIES | |||||
| Accounts payable | $ | 27,873 | $ | 40,096 | |
| Other payables and accrued expenses | 54,409 | 61,558 | |||
| Customer deposits | 43,428 | 56,123 | |||
| Notes payable – floor plan | 486,547 | 444,770 | |||
| Current portion of operating lease liabilities | 15,598 | 13,914 | |||
| Current portion of long-term debt, net | 8,632 | 23,896 | |||
| Current portion of tax receivable agreement liability | 2,447 | 2,363 | |||
| Total current liabilities | 638,934 | 642,720 | |||
| Other long-term liabilities | 8,819 | 13,597 | |||
| Tax receivable agreement liability | 40,688 | 43,991 | |||
| Long-term operating lease liabilities | 129,491 | 115,557 | |||
| Long-term debt, net | 417,599 | 433,889 | |||
| Total liabilities | 1,235,531 | 1,249,754 | |||
| STOCKHOLDERS’ EQUITY | |||||
| Total stockholders’ equity attributable to OneWater Marine Inc. | 368,641 | 451,130 | |||
| Equity attributable to non-controlling interests | 31,708 | 70,433 | |||
| Total stockholders’ equity | 400,349 | 521,563 | |||
| Total liabilities and stockholders’ equity | $ | 1,635,880 | $ | 1,771,317 | |
| ONEWATER MARINE INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except per share data) (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income attributable to OneWater Marine Inc. | $ | 14,683 | $ | 28,570 | $ | 3,544 | $ | 60,274 | |||||||
| Transaction costs | 242 | — | 97 | 966 | — | 1,668 | |||||||||
| Intangible amortization | 2,086 | 3,376 | 5,743 | 9,962 | |||||||||||
| Change in fair value of contingent consideration | 214 | 436 | 3,918 | 763 | |||||||||||
| Restructuring and impairment | — | — | 11,847 | — | |||||||||||
| Other (income) expense, net | (1,357 | ) | 361 | 889 | (465 | ) | |||||||||
| Net income attributable to non-controlling interests of One Water Marine Holdings, LLC (1) | (107 | ) | (389 | ) | (2,103 | ) | (1,085 | ) | |||||||
| Adjustments to income tax expense (2) | (248 | ) | (893 | ) | (4,890 | ) | (2,494 | ) | |||||||
| Adjusted net income attributable to OneWater Marine Inc. | 15,513 | 31,558 | 19,914 | 68,623 | |||||||||||
| Net earnings per share of Class A common stock - diluted | $ | 0.99 | $ | 1.95 | $ | 0.24 | $ | 4.12 | |||||||
| Transaction costs | 0.02 | 0.01 | 0.07 | 0.11 | |||||||||||
| Intangible amortization | 0.15 | 0.23 | 0.39 | 0.68 | |||||||||||
| Change in fair value of contingent consideration | 0.01 | 0.03 | 0.26 | 0.05 | |||||||||||
| Restructuring and impairment | — | — | 0.80 | — | |||||||||||
| Other (income) expense, net | (0.09 | ) | 0.02 | 0.06 | (0.03 | ) | |||||||||
| Net income attributable to non-controlling interests of One Water Marine Holdings, LLC (1) | (0.01 | ) | (0.03 | ) | (0.14 | ) | (0.07 | ) | |||||||
| Adjustments to income tax expense (2) | (0.02 | ) | (0.06 | ) | (0.33 | ) | (0.17 | ) | |||||||
| Adjusted earnings per share of Class A common stock - diluted | $ | 1.05 | $ | 2.15 | $ | 1.35 | $ | 4.69 | |||||||
| (1) Represents an allocation of the impact of reconciling items to our non-controlling interest. | |||||||||||||||
| (2) Represents an adjustment of all reconciling items at an estimated effective tax rate. | |||||||||||||||
| ONEWATER MARINE INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except per share data) (Unaudited) | ||||||||||
| Three Months Ended June 30, | Trailing twelve months ended June 30, | |||||||||
| 2024 | 2023 | 2024 | ||||||||
| Net income (loss) | $ | 16,714 | $ | 33,290 | $ | (106,631 | ) | |||
| Interest expense – other | 9,008 | 9,077 | 36,644 | |||||||
| Income tax expense (benefit) | 6,344 | 9,916 | (22,454 | ) | ||||||
| Depreciation and amortization | 5,785 | 6,584 | 23,917 | |||||||
| Stock-based compensation | 2,256 | 2,122 | 8,702 | |||||||
| Change in fair value of contingent consideration | 214 | 436 | 1,551 | |||||||
| Transaction costs | 242 | 97 | 1,137 | |||||||
| Restructuring and impairment | — | — | 159,249 | |||||||
| Other (income) expense, net | (1,357 | ) | 361 | 2,307 | ||||||
| Adjusted EBITDA | $ | 39,206 | $ | 61,883 | $ | 104,422 | ||||
| Long-term debt (including current portion) | $ | 426,231 | ||||||||
| Less: cash | (41,034 | ) | ||||||||
| Adjusted long-term net debt | $ | 385,197 | ||||||||
| Pro forma adjusted net debt leverage ratio | 3.7 | x | ||||||||
About OneWater Marine Inc.
OneWater Marine Inc. is one of the largest and fastest-growing premium marine retailers in the United States. OneWater operates a total of 98 retail locations, 10 distribution centers / warehouses and multiple online marketplaces in 18 different states, several of which are in the top twenty states for marine retail expenditures. OneWater offers a broad range of products and services and has diversified revenue streams, which include the sale of new and pre-owned boats, finance and insurance products, parts and accessories, maintenance, repair and other services.
Non-GAAP Financial Measures and Key Performance Indicators
This press release and our related earnings call contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income Attributable to OneWater Marine Inc., Adjusted Diluted Earnings Per Share and Adjusted Long-Term Net Debt, as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, to understand the performance of the Company’s ongoing operations and how management views the business. Reconciliations of reported GAAP measures to adjusted non-GAAP measures are included in the financial schedules contained in this press release. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP. Because our non-GAAP financial measures may be defined differently by other companies, our definition of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. We have not reconciled non-GAAP forward-looking measures, including Adjusted EBITDA and adjusted earnings per diluted share guidance, to their corresponding GAAP measures due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to change in fair value of contingent consideration and transaction costs. Change in fair value of contingent consideration and transaction costs are affected by the acquisition, integration and post-acquisition performance of our acquirees which is difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA and adjusted earnings per diluted share are not available without unreasonable effort.
Adjusted EBITDA
We define Adjusted EBITDA as net income (loss) before interest expense – other, income tax (benefit) expense, depreciation and amortization and other (income) expense, further adjusted to eliminate the effects of items such as the change in fair value of contingent consideration, gain (loss) on extinguishment of debt, restructuring and impairment, stock-based compensation and transaction costs. See reconciliation above.
Our board of directors, management team and lenders use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and other items (such as the change in fair value of contingent consideration, gain or loss on extinguishment of debt, income tax (benefit) expense, restructuring and impairment, stock-based compensation and transaction costs) that impact the comparability of financial results from period to period. We present Adjusted EBITDA because we believe it provides useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. Adjusted EBITDA is not a financial measure presented in accordance with GAAP. We believe that the presentation of this non-GAAP financial measure will provide useful information to investors and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance.
Adjusted Net Income Attributable to OneWater Marine Inc. and Adjusted Diluted Earnings Per Share
We define Adjusted Net Income Attributable to OneWater Marine Inc. as Net Income Attributable to OneWater Marine Inc. before transaction costs, intangible amortization, change in fair value of contingent consideration, restructuring and impairment and other expense (income), all of which are then adjusted for an allocation to the non-controlling interest of OneWater Marine Holdings, LLC. Each of these adjustments are subsequently adjusted for income tax at an estimated effective tax rate. Management also reports Adjusted Diluted Earnings Per Share which presents all of the adjustments to net income attributable to OneWater Marine Inc. noted above on a per share basis. See reconciliation above.
Our board of directors, management team and lenders use Adjusted Net Income Attributable to OneWater Marine Inc. and Adjusted Diluted Earnings Per Share to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of unusual or one time charges and other items (such as the change in fair value of contingent consideration, intangible amortization, restructuring and impairment, transaction costs and other expense (income)) that impact the comparability of financial results from period to period. We present these metrics because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. Adjusted Net Income Attributable to OneWater Marine Inc. and Adjusted Diluted Earnings Per Share are not financial measures presented in accordance with GAAP. We believe that the presentation of these non-GAAP financial measures will provide useful information to investors and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance.
Adjusted Long-Term Net Debt
We define Adjusted Long-Term Net Debt as long-term debt (including current portion) less cash. We consider, and we believe certain investors and analysts consider, adjusted long-term net debt, as well as adjusted long-term net debt divided by trailing twelve-month Adjusted EBITDA, to be an indicator of our financial leverage.
Same-Store Sales
We define same-store sales as sales from our Dealership segment, excluding new and acquired stores. New and acquired stores become eligible for inclusion in the comparable store base at the end of the store’s thirteenth month of operations under our ownership and revenues are only included for identical months in the same-store base periods. Stores relocated within an existing market remain in the comparable store base for all periods. Additionally, amounts related to closed or sold stores are excluded from each comparative base period. We use same-store sales to assess the organic growth of our Dealership segment revenue. We believe that our assessment on a same-store basis represents an important indicator of comparative financial results and provides relevant information to assess our performance.
Cautionary Statement Concerning Forward-Looking Statements
This press release and statements made during the above referenced conference call may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including regarding our strategy, future operations, financial position, prospects, plans and objectives of management, growth rate and its expectations regarding future revenue, operating income or loss or earnings or loss per share. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “will be,” “will likely result,” “should,” “expects,” “plans,” “anticipates,” “could,” “would,” “foresees,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “outlook” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These forward-looking statements are not guarantees of future performance, but are based on management’s current expectations, assumptions and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct.
Important factors, some of which are beyond our control, that could cause actual results to differ materially from our historical results or those expressed or implied by these forward-looking statements include the following: effects of industry wide supply chain challenges including a heightened inflationary environment and our ability to maintain adequate inventory, changes in demand for our products and services, the seasonality and volatility of the boat industry, fluctuation in interest rates, adverse weather events, our acquisition and business strategies, the inability to comply with the financial and other covenants and metrics in our credit facilities, cash flow and access to capital, effects of a global pandemic on the Company’s business, risks related to the ability to realize the anticipated benefits of any proposed acquisitions, including the risk that proposed acquisitions will not be integrated successfully, the timing of development expenditures, and other risks. More information on these risks and other potential factors that could affect our financial results is included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 and in our subsequently filed Quarterly Reports on Form 10-Q, each of which is on file with the SEC and available from OneWater Marine’s website at www.onewatermarine.com under the “Investors” tab, and in other documents OneWater Marine files with the SEC. Any forward-looking statement speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.
Investor or Media Contact:
Jack Ezzell
Chief Financial Officer
IR@OneWaterMarine.com
FAQ
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