• Revenue: Decreased 16% to $378 million in Q4 2024 from $451 million in Q4 2023.

• New Boat Sales: Down 18% to $217 million in Q4 2024.

• Pre-Owned Boat Sales: Decreased 20% to $73 million in Q4 2024.

• Service, Parts, and Other Sales: Decreased 7% to $76 million in Q4 2024.

• Finance and Insurance Revenue: Decreased 12% to $11 million in Q4 2024.

• Gross Profit: Decreased 24% to $91 million in Q4 2024.

• SG&A Expenses: Decreased to $80 million from $85 million in Q4 2023.

• Operating Income: Increased to $4 million from a loss of $117 million.

• Net Loss: $10 million or $0.63 per diluted share in Q4 2024.

• Adjusted EBITDA: $8 million in Q4 2024.

• Same Store Sales: Decreased 7% for fiscal 2024.

• Total Revenue for 2024: Decreased 8% to $1.8 billion.

• Gross Profit Margin for 2024: 24.5%.

• Total Inventory: $591 million as of September 30, 2024.

• Total Long Term Debt: $423 million as of September 30, 2024.

• Net Leverage: 4.9 times trailing 12-month adjusted EBITDA.

• Warning! GuruFocus has detected 5 Warning Signs with ONEW.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• OneWater Marine Inc (NASDAQ:ONEW) reported a record Fort Lauderdale Boat Show with unit sales up double digits compared to the prior year, indicating strong customer demand.

• The company successfully reopened all retail locations after hurricanes with minimal damage, showcasing resilience and operational recovery.

• Cost-saving measures and restructuring actions have been implemented, which are expected to benefit margins in 2025.

• Inventory optimization efforts have led to a slight decrease in inventory levels, positioning the company well for future demand.

• The company has a diverse brand portfolio, which provides a competitive advantage and ensures a wide range of options for customers.

Negative Points

• Hurricanes Helene and Milton significantly disrupted sales, particularly impacting the fourth quarter results.

• Fiscal fourth-quarter revenue decreased by 16% compared to the previous year, with new boat sales down 18% and pre-owned boat sales down 20%.

• Same-store sales were down 7% for the full year, reflecting softer demand in the recreational marine market.

• The company experienced a net loss for the fiscal fourth quarter, driven by lower sales and restructuring charges.

• High inventory levels across the industry and promotional activities have pressured margins, with expectations of continued challenges in the near term.

Q & A Highlights

Q: Can you quantify the impact of Hurricane Helene on revenue and EBITDA for the quarter? A: It's challenging to pinpoint an exact number, but we estimate the impact to be in the $30 million range. Some deals were closed on the east coast of Florida, which wasn't affected, but overall, the disruption was significant.