OneWater Marine Inc. Provides Business Update Regarding Hurricane Helene

Rhea-AI Summary

OneWater Marine Inc. (NASDAQ: ONEW) has announced that Hurricane Helene will directly impact its Gulf Coast operations. The company has initiated preparedness procedures at 26 Gulf Coast locations, with an additional 21 locations in Alabama, Georgia, and South Carolina expecting significant weather and flooding. As a result, September sales will be lower than anticipated, and the company expects full-year results to be at the bottom or slightly below previously issued guidance.

CEO Austin Singleton stated that the company has implemented its Hurricane Disaster Plan and safety protocols to mitigate losses and protect assets. Insurance carriers have placed moratoriums on writing new policies in certain areas, preventing customers from binding insurance on boats they want to purchase. While these measures are temporary, fourth-quarter sales will be negatively impacted. OneWater expects to recover affected sales outside the direct path of the storm in the first part of fiscal year 2025.

Positive

• Implementation of Hurricane Disaster Plan to mitigate losses and protect assets
• Expectation to recover affected sales outside the direct path of the storm in early fiscal year 2025

Negative

• September sales lower than anticipated due to hurricane impact
• Full-year results expected at the bottom or slightly below previously issued guidance
• Fourth-quarter sales negatively impacted by hurricane and insurance moratoriums
• Temporary closure of 26 Gulf Coast locations and potential impact on 21 additional locations

Insights

Financial Analyst

The impact of Hurricane Helene on OneWater Marine's operations is significant, affecting 26 Gulf Coast locations and potentially 21 more in nearby states. This disruption is expected to have a material impact on the company's financial performance:

• September sales will be lower than anticipated
• Full-year results are now expected to be at the bottom or slightly below previous guidance
• Q4 sales will be negatively impacted due to temporary closures and insurance moratoriums

While some sales may be recovered in early fiscal 2025, the immediate financial impact is concerning. The company's proactive measures, including their Hurricane Disaster Plan, may help mitigate some losses. However, investors should be prepared for a potential earnings miss and possible stock price volatility in the near term.

Long-term implications depend on the extent of damage and the company's ability to quickly resume operations post-hurricane. The recurring nature of such weather events in the Gulf Coast region poses an ongoing risk to OneWater's business model, which investors should factor into their risk assessment.

Risk Management Expert

OneWater Marine's response to Hurricane Helene demonstrates a well-prepared risk management strategy:

• Early implementation of the Hurricane Disaster Plan
• Safety protocols to mitigate losses and protect assets
• Clear communication with stakeholders about potential impacts

However, the company faces significant challenges:

• Direct impact on 26 Gulf Coast locations
• Potential effects on 21 additional locations
• Insurance moratoriums limiting new policy issuance

The company's ability to quantify and communicate the expected impact on guidance shows transparency, which is positive from a risk management perspective. The mention of potential sales recovery in early fiscal 2025 indicates a forward-looking approach to mitigating long-term effects.

Investors should monitor the company's post-hurricane recovery efforts and any updates to financial projections. The recurring nature of such events in the region suggests that OneWater's risk management strategies will remain important for long-term resilience and investor confidence.

BUFORD, Ga., Sept. 26, 2024 (GLOBE NEWSWIRE) -- OneWater Marine Inc. (NASDAQ: ONEW) (“OneWater” or the “Company”) today announced that its operations on the Gulf Coast will be directly impacted by Hurricane Helene. As a result of the hurricane’s evolving trajectory, which is expected to further intensify, earlier this week the Company’s 26 Gulf Coast locations initiated preparedness procedures, as the region braces for landfall. An additional 21 locations in Alabama, Georgia, and South Carolina are expected to see significant weather and flooding over the weekend as well. As a result, September sales will be lower than anticipated and the Company now expects its full year results to come in at the bottom or slightly below previously issued guidance.

“First and foremost, our thoughts and prayers are with everyone in the path of Helene. We are closely monitoring the hurricane and are taking all necessary precautionary measures to ensure the safety of our employees, customers, and communities. Earlier this week, we put our Hurricane Disaster Plan into action and implemented safety protocols to mitigate losses and protect assets. Additionally, insurance carriers have placed moratoriums on writing new policies in certain geographies preventing customers from binding insurance on boats they are looking to purchase. While these procedures and moratoriums are temporary, our fourth quarter sales will be negatively impacted. For affected locations outside the direct path of the storm, we expect to recover these sales in the first part of fiscal year 2025,” commented Austin Singleton, Chief Executive Officer at OneWater. “In the meantime, we remain committed to executing our long-term strategy and we are focused on factors within our control to minimize disruption, resuming operations when it is deemed safe.”

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 97 retail locations, 10 distribution centers / warehouses and multiple online marketplaces in 20 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.

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

How will Hurricane Helene affect OneWater Marine's (ONEW) financial performance?

Hurricane Helene is expected to negatively impact OneWater Marine's September sales and fourth-quarter performance. The company anticipates full-year results to be at the bottom or slightly below previously issued guidance due to the hurricane's effects on operations and sales.

How many OneWater Marine (ONEW) locations are affected by Hurricane Helene?

26 Gulf Coast locations of OneWater Marine are directly impacted by Hurricane Helene, with an additional 21 locations in Alabama, Georgia, and South Carolina expected to experience significant weather and flooding.

What measures has OneWater Marine (ONEW) taken to prepare for Hurricane Helene?

OneWater Marine has implemented its Hurricane Disaster Plan, which includes safety protocols to mitigate losses and protect assets. The company has also initiated preparedness procedures at affected locations to ensure the safety of employees, customers, and communities.

When does OneWater Marine (ONEW) expect to recover sales affected by Hurricane Helene?

OneWater Marine expects to recover sales affected by Hurricane Helene in locations outside the direct path of the storm in the first part of fiscal year 2025.