Please select your home edition
Edition
Coast Guard Foundation LEADERBOARD 3

OneWater Marine announces fiscal first quarter 2022 results

by OneWater Marine 4 Feb 05:35 PST
OneWater Marine Inc. updates on its business operations © OneWater Marine Inc

Fiscal first quarter 2022 highlights

  • Revenue increased 57% to $336 million
  • Same-store sales increased 28%
  • Gross profit margin expanded 550 basis points to 30%
  • Net income increased 99% to $23 million
  • Net income per diluted share attributable to OneWater increased 105% to $1.45
  • Adjusted EBITDA increased 146% to $41 million
  • Completed four strategic acquisitions, including the largest in company history

OneWater Marine Inc. (NASDAQ: ONEW) ("OneWater" or the "Company") have announced results for its fiscal first quarter ended December 31, 2021.

"The OneWater team once again delivered an exceptional quarter in the face of ongoing supply chain challenges. Our same store sales increased 28%, compared to a tremendous quarter last year, highlighting the strength of our team and effective use of our advanced inventory management tools which are enabling us to outperform the industry," commented Austin Singleton, Chief Executive Officer at OneWater.

"In the first quarter, we completed acquisitions of Naples Boat Mart, T-H Marine, Norfolk Marine, and acquired a controlling interest in Quality Boats, all of which will be immediately accretive to OneWater and we believe positions us for continued accelerated growth. Looking to the remainder of the year, we remain focused on executing our long-term growth strategy, continuing to expand our earnings potential and realizing the power of our acquisition strategy on the future of OneWater, all of which is expected to increase value for shareholders," concluded Mr. Singleton.

Revenue for fiscal first quarter 2022 was $336.3 million, an increase of 57.1% compared to $214.1 million in fiscal first quarter 2021 due primarily to our increase in same-store sales and revenue from acquired businesses. During fiscal first quarter 2022 same-store sales increased 28%, following a 38% increase in first quarter 2021, as a result of the strong demand environment. New and pre-owned boat revenue increased 55.6% and 38.5%, respectively, due to the acquired businesses and a significant increase in average unit price of new and pre-owned boats and a modest increase in units sold. Finance & insurance income was up 56.1% compared to the prior year and service, parts and other sales was up 110.7% as a result of the Company's strategic focus on expanding the high margin, less cyclical service, parts & other revenues.

Gross profit totaled $101.0 million for fiscal first quarter 2022, up $48.5 million from $52.4 million for fiscal first quarter 2021. Gross profit margin of 30.0% increased 550 basis points compared to the prior year driven by the shift in the mix and size of boats sold, dynamic pricing, and the sharp increase in high margin service, parts & other sales during the quarter.

Fiscal first quarter 2022 selling, general and administrative expenses totaled $59.1 million, or 17.6% of revenue, compared to $34.9 million, or 16.3% of revenue, in fiscal first quarter 2021. The increase in selling, general and administrative expenses as a percentage of revenue was due mainly to higher variable personnel costs driven by the increased level of profitability.

Net income for fiscal first quarter 2022 totaled $23.5 million, compared to $11.8 million in fiscal first quarter 2021. The significant increase was primarily due to the heightened level of gross profit for the period and significant increase in service, parts, and other income.

Earnings per diluted share for fiscal first quarter 2022 was $1.45 per diluted share, compared to $0.71 per diluted share in 2021. For both periods, charges related to transaction costs and contingent consideration adversely impacted diluted earnings per share. These amounts, tax effected at 25%, were $0.41 per share in first fiscal quarter 2022 and $0.03 per share in first fiscal quarter 2021.

Fiscal first quarter 2022 Adjusted EBITDA increased 146% to $41.0 million, compared to $16.7 million for fiscal first quarter 2021 (see reconciliation of non-GAAP financial measures).

As of December 31, 2021, the Company's cash and cash equivalents balance was $67.9 million, an increase of $42.0 million compared to $26.0 million as of December 31, 2020. Total inventory as of December 31, 2021, increased sequentially to $248.2 million compared to $143.9 million on September 30, 2021. As expected, the Company was able to start building inventory levels following a robust summer selling season, supported by acquisition synergies. Total long-term debt as of December 31, 2021, was $346.4 million, and long-term debt (net of $67.9 million cash) is 1.5 times trailing twelve-month Adjusted EBITDA. The increase in long-term debt was related to acquisition financing for T-H Marine and Quality Boats.

Subsequent events

Subsequent to the fiscal first quarter end, the Company announced the acquisition of JIF Marine, a provider of stainless steel ladders and docking products. This acquisition further diversifies and expands the Company's service, parts and other revenue stream.

Fiscal year 2022 guidance

The Company is raising its fiscal full year 2022 outlook for Adjusted EBITDA to be in the range of $210 million to $220 million and earnings per diluted share to be in the range of $8.00 to $8.40, both of which includes the previously completed acquisitions and the recently announced acquisition of JIF Marine but excludes any other acquisitions that may be completed during the year. For the fiscal year 2022, OneWater maintains its anticipation that same store sales to be up high-single digits, despite an expected challenging inventory environment.

Conference call and webcast

OneWater will host a conference call to discuss its fiscal first quarter earnings on Thursday, February 3rd, 2022, at 8:30 am Eastern time. The conference call may be accessed by dialing (866) 220-5793 in the U.S./Canada or (615) 622-8064 for participants outside the U.S./Canada using the Conference ID #9198026. This call is being webcast and can be accessed through the "Events" section of the Company's website at investor.onewatermarine.com where it will be archived for one year.

Related Articles

OneWater Marine to acquire Ocean Bio-Chem, Inc.
Expected to significantly advance growth of parts and accessories business OneWater Marine Inc. (NASDAQ: ONEW) (“OneWater” or the “Company”) announced today that it has signed a definitive agreement to acquire Ocean Bio-Chem, Inc. (NASDAQ: OBCI) (“OBCI” or “Ocean Bio-Chem”) Posted on 23 Jun
OneWater Marine Inc. announces Fiscal Q2 Results
Continued outperformance and multi-pronged acquisition strategy driving record earnings OneWater Marine Inc. (NASDAQ: ONEW) ("OneWater" or the "Company") today announced results for its fiscal second quarter ended March 31, 2022. Posted on 5 May
OneWater announces Fiscal Q2 earnings release date
Second quarter 2022 financial results on Thursday, May 5th, 2022 OneWater Marine Inc. (NASDAQ: ONEW) (the "Company" or "OneWater") announced today that it will release its fiscal second quarter 2022 financial results on Thursday, May 5th, 2022, before the market opens. Posted on 21 Apr
OneWater completes acquisition of Denison Yachting
Further advances growth and diversification strategy with leading superyacht dealer OneWater Marine Inc. (NASDAQ: ONEW) ("OneWater" or the "Company") announced today that it has completed the previously announced acquisition of Denison Yachting. Posted on 6 Apr
OneWater announces share repurchase authorization
Underscores Management and Board of Directors' confidence in long-term value creation opportunity OneWater Marine Inc. (NASDAQ: ONEW) ("OneWater" or the "Company") announced today that its Board of Directors approved a share repurchase program to repurchase up to $50 million of the Company's Class A common stock from time to time in the open market Posted on 31 Mar
OneWater announces appointment of Greg Shell
Increasing the size of the Board from nine to ten directors OneWater Marine Inc. (NASDAQ: ONEW) ("OneWater" or "the Company") today announced the appointment of Greg Shell to the Company's Board of Directors as an additional independent director, effective as of April 1, 2022. Posted on 24 Mar
T-H Marine announces acquisition of JIF Marine LLC
Acquisition solidifies leadership position in steel ladder market OneWater Marine Inc. (NASDAQ: ONEW) ("OneWater" or "the Company") announced today that its subsidiary, T-H Marine, has acquired JIF Marine LLC ("JIF"), an industry-leading supplier of stainless steel ladders Posted on 3 Feb
OneWater announces Fiscal Q1 earnings release date
Releasing on February 3rd before the market opens OneWater Marine Inc. (NASDAQ: ONEW) (the "Company" or "OneWater") announced today that it will release its fiscal first quarter 2022 financial results on Thursday, February 3rd, 2022, before the market opens. Posted on 21 Jan
OneWater complete the acquisition of Quality Boats
The transaction expands the company's presence on the west coast of Florida OneWater Marine Inc. (NASDAQ: ONEW) ("OneWater" or the "Company") announced today that it has completed the previously announced acquisition of a majority interest in Quality Boats, recognized as a top dealer in customer satisfaction. Posted on 6 Jan
6,800 toys for Toys for Tots Charities
OneWater Marine Inc. donated more than $200,000 OneWater Marine Inc. (NASDAQ: ONEW) (“OneWater” or the “Company”) today announced that it donated more than $200,000 and collected over 6,800 toys for local Toys for Tots programs in 2021. Posted on 6 Jan
RS Sailing 2021 - FOOTERMarine Resources 2022 - FOOTERNorth Sails 2021 Innovation - FOOTER