OneWater reports Q4 decline and predicts slow start to 2025
OneWater Marine has revealed its financial results for its fiscal fourth quarter and year ended September 30, 2024, with revenue for 2024 decreasing 8.5 per cent to $1.78 billion.
In its fiscal fourth quarter, OneWater has reported revenues of $377.9 million, down 16.2 per cent compared with $451 million year-over-year. Same-store sales decreased 17 per cent, and new-boat revenue decreased 18 per cent. Preowned-boat revenue declined 20.2 per cent. The company cites hurricane disruption as a factor in poor fourth quarter results but says it is well positioned for 2025.
Austin Singleton, chief executive officer at OneWater says: “Our team demonstrated remarkable resilience and execution amidst a challenging retail environment as consumer behaviour and industry inventory reset in fiscal 2024. Our revenue and brand diversification, coupled with our geographic reach, helped mitigate the impact of macroeconomic uncertainty and severe weather, underscoring the strength of our business model.
“As we closed out the fiscal year, Hurricane Helene struck the West Coast of Florida, causing extensive damage. Our thoughts remain with those affected, and we are actively supporting local recovery efforts.
“In preparation for the storm we temporarily closed several stores, and insurance companies halted writing new policies, disrupting sales during the last ten days of the month and significantly impacting our fourth quarter results. Currently, all retail locations are operational, and we are ready to assist customers as they resume their boat buying journey.”
“Looking to fiscal 2025, we expect a slower start to the year given the ongoing impacts from hurricanes Helene and Milton; however, we are cautiously optimistic in our full year outlook. Customers are active, our inventory positioning remains healthy, and we expect our recent cost actions to continue to benefit us as we move through the year.”
OneWater fourth quarter results 2024
OneWater reported revenues for fiscal fourth quarter of 2024 of $377.9 million, a decrease of 16.2 per cent compared to $451.0 million in the fourth quarter of 2023.
The fiscal fourth quarter 2024 adjusted EBITDA1 decreased 73.7 per cent to $7.8 million compared to $29.8 million for the fiscal fourth quarter in 2023.
Same-store sales decreased 17 per cent. New boat revenue decreased 18.0 per cent, driven by a decrease in units sold. The 20.1 per cent decrease in pre-owned boat revenue was driven by the decrease in units sold and average price per unit.
Prior to the threats of the hurricane, OneWater says same-store sales were trending in line with the company’s expectations. Finance & insurance income increased slightly as a percentage of total boat sales. Service, parts & other sales were down 6.7 per cent compared to the prior year quarter. Excluding the impact from the dispositions that occurred in the fourth quarter of 2023, Onewater says dealership segment service, parts and other sales were positive. Distribution segment service, parts, and other sales were lower due to reduced production by boat manufacturers. Gross profit totalled $90.7 million for the fiscal fourth quarter of 2024, down $28.3 million from $119.0 million for the fiscal fourth quarter of 2023.
Gross profit margin of 24.0 per cent decreased 240 basis points compared to the prior year period, driven by new and pre-owned boat pricing, including the impact of select brands the company is exiting. Excluding charges related to brands being exited, new boat margins were flat sequentially.
Net loss for fiscal fourth quarter 2024 totalled $(10.4) million, compared to net loss of $(110.9) million in fiscal fourth quarter 2023. The net loss in the prior year period was driven by a $147.4 million non-cash impairment charge related to certain intangible assets. The company reported a net loss per diluted share for the fiscal fourth quarter of 2024 of $(0.63), compared to a net loss per diluted share of $(6.89) in 2023. Adjusted diluted loss per share for fiscal fourth quarter 2024 was $(0.36), compared to adjusted diluted earnings per share1 of $0.42 in 2023.
OneWater financial results year ending 30 September 2024
Revenue for the fiscal year ended 30 September 2024 decreased 8.5 per cent to $1,772.6 million from $1,936.3 million for the fiscal year ended 30 September 2023, driven by a decrease in new and pre-owned unit sales and a 9.7 per cent decrease in service, parts & other sales compared to the prior year.
Same-store sales decreased 7 per cent compared to the prior year. Prior to the threats of the hurricane, same-store sales were trending down mid-single digits, in line with the company’s expectations. Excluding the impact from the dispositions that occurred in the fourth quarter of 2023, dealership segment service, parts and other sales were positive. Distribution segment service, parts, and other sales were lower due to reduced production by boat manufacturers. Gross profit totalled $435.1 million for fiscal year 2024, compared to $535.1 million for fiscal year 2023. Gross profit margin of 24.5 per cent decreased 310 basis points compared to the prior year, primarily due to moderated boat pricing as a result of the industry normalisation following the COVID-era environment.
Adjusted EBITDA1 decreased 53.2% to $82.5 million, compared to $176.4 million in fiscal year 2023.
As of 30 September 2024, the company’s cash and cash equivalents balance was $16.8 million and total liquidity, including cash and availability under credit facilities, was approximately $30 million. Total inventory as of 30 September 2024, decreased to $590.8 million, compared to $598.6 million on 30 June 2024. Inventory was down slightly due to the continued focus on matching inventory levels with market demand. Total long-term debt as of September 30, 2024 was $422.8 million, and adjusted long-term net debt (net of $16.8 million cash)1 was 4.9 times trailing twelve-month Adjusted EBITDA1.
For the fiscal full year 2025, OneWater anticipates revenue to be in the range of $1.7 billion to $1.85 billion and dealership same-store sales to be up low single digits. Adjusted EBITDA2 is expected to be in the range of $80 million to $110 million and Adjusted Diluted Earnings Per Share is expected to be in the range of $1.00 to $2.00.
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