BUFORD, Ga., April 29, 2021 (GLOBE NEWSWIRE) -- OneWater Marine Inc. (NASDAQ: ONEW) ("OneWater" or the "Company") today announced results for its fiscal second quarter ended March 31, 2021.
"Our business is firing on all cylinders, with fiscal second quarter revenues increasing to a record $330 million supporting a 315% increase in Adjusted EBITDA¹ compared to the prior year. Further, our high-margin finance & insurance and service, parts and other business lines continue to expand, underscoring the strength of our strategy to further diversify beyond new and used boats sales, providing another leg of growth for OneWater," commented Austin Singleton, Chief Executive Officer at OneWater.
"As we implement our acquisition integration playbook, the addition of Tom George, Walker Marine and Roscioli, strengthens OneWater as we realize synergies and make operational improvements. The creation and expansion of OneWater Yacht Group will provide a broadened geographic footprint and expanded product portfolio. In addition, our technology investments continue to drive operational efficiencies across our business and enable us to capture a customer desire to get out on the water. I am extremely proud of our team's ability to remain agile in today's fast-paced, dynamic environment. We believe that current demand levels will remain heightened, as new and experienced boaters come to OneWater for our arsenal of premium boats and robust service capabilities," Mr. Singleton concluded.
Fiscal Second Quarter 2021 Results
Revenue for the fiscal second quarter 2021 was $329.6 million, an increase of 73.5% compared to $190.0 million in fiscal second quarter 2020, driven by an increase in sales across all boating categories and higher finance & insurance and service, parts and other sales. During the fiscal second quarter 2021 same-store sales increased 57%.
Gross profit totaled $88.8 million for the fiscal second quarter 2021, compared to $44.6 million for the fiscal second quarter 2020. Gross profit margin of 26.9% increased 340 basis points compared to the prior year primarily due to a shift in the mix and size of boat models sold, the Company's focus on dynamic pricing, increases in service, parts & other sales, finance & insurance, and the emphasis on meeting customer demand.
Fiscal second quarter 2021 selling, general and administrative expenses totaled $48.3 million, or 14.7% of revenue, compared to $32.4 million, or 17.0% of revenue, in the fiscal second quarter of 2020. The decrease in selling, general and administrative expenses as a percentage of revenue was due to the Company's ability to leverage its existing expense structure to support the increase in revenue.
Net income for the fiscal second quarter of 2021 totaled $30.6 million, compared to $3.0 million in the fiscal second quarter of 2020. The significant increase was primarily due to higher sales and gross margins on boats sold in the period and a reduction in interest expense.
Fiscal second quarter 2021 Adjusted EBITDA (see reconciliation of Non-GAAP financial measures) increased to $40.1 million, compared to $9.7 million for the fiscal second quarter of 2020.
As of March 31, 2021, the Company's cash and cash equivalents balance was $76.7 million, an increase of $56.3 million compared to $20.4 million as of March 31, 2020.
Liquidity totaled in excess of $100 million on March 31, 2021 including cash on hand and availability on the revolving line of credit and floor plan credit facility. Total inventory as of March 31, 2021 decreased sequentially to $186.1 million compared to $196.1 million on December 31, 2020, primarily due to the increased sales and tight inventory across the industry.
Fiscal Year 2021 Guidance
Given the broad-based outperformance in the first half of fiscal year 2021, OneWater is increasing its outlook. For the fiscal full year 2021, the Company now expects same store sales to increase in the mid-to-upper teens, with Adjusted EBITDA to be in the range of $130 million to $135 million and diluted earnings per share to be in the range of $5.80 to $6.00, excluding any acquisitions that may be completed later in the year. This outlook assumes OneWater's manufacturers can maintain production at the current pace to meet elevated demand levels in the face of industry-wide supply chain constraints.
Conference Call and Webcast
OneWater will host a conference call to discuss its fiscal first quarter earnings on Thursday, April 29, 2021 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 #1757237. This call is being webcast and 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.
About OneWater Marine Inc.
OneWater Marine Inc. is one of the largest and fastest-growing premium recreational boat retailers in the United States. OneWater operates 69 stores throughout 10 different states, seven 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, parts and accessories, finance and insurance products, maintenance and repair services and ancillary services such as boat storage.
Investor or Media Contact:
Jack Ezzell
Chief Financial Officer
IR@OneWaterMarine.com
"Our business is firing on all cylinders, with fiscal second quarter revenues increasing to a record $330 million supporting a 315% increase in Adjusted EBITDA¹ compared to the prior year. Further, our high-margin finance & insurance and service, parts and other business lines continue to expand, underscoring the strength of our strategy to further diversify beyond new and used boats sales, providing another leg of growth for OneWater," commented Austin Singleton, Chief Executive Officer at OneWater.
"As we implement our acquisition integration playbook, the addition of Tom George, Walker Marine and Roscioli, strengthens OneWater as we realize synergies and make operational improvements. The creation and expansion of OneWater Yacht Group will provide a broadened geographic footprint and expanded product portfolio. In addition, our technology investments continue to drive operational efficiencies across our business and enable us to capture a customer desire to get out on the water. I am extremely proud of our team's ability to remain agile in today's fast-paced, dynamic environment. We believe that current demand levels will remain heightened, as new and experienced boaters come to OneWater for our arsenal of premium boats and robust service capabilities," Mr. Singleton concluded.
Fiscal Second Quarter 2021 Results
Revenue for the fiscal second quarter 2021 was $329.6 million, an increase of 73.5% compared to $190.0 million in fiscal second quarter 2020, driven by an increase in sales across all boating categories and higher finance & insurance and service, parts and other sales. During the fiscal second quarter 2021 same-store sales increased 57%.
Gross profit totaled $88.8 million for the fiscal second quarter 2021, compared to $44.6 million for the fiscal second quarter 2020. Gross profit margin of 26.9% increased 340 basis points compared to the prior year primarily due to a shift in the mix and size of boat models sold, the Company's focus on dynamic pricing, increases in service, parts & other sales, finance & insurance, and the emphasis on meeting customer demand.
Fiscal second quarter 2021 selling, general and administrative expenses totaled $48.3 million, or 14.7% of revenue, compared to $32.4 million, or 17.0% of revenue, in the fiscal second quarter of 2020. The decrease in selling, general and administrative expenses as a percentage of revenue was due to the Company's ability to leverage its existing expense structure to support the increase in revenue.
Net income for the fiscal second quarter of 2021 totaled $30.6 million, compared to $3.0 million in the fiscal second quarter of 2020. The significant increase was primarily due to higher sales and gross margins on boats sold in the period and a reduction in interest expense.
Fiscal second quarter 2021 Adjusted EBITDA (see reconciliation of Non-GAAP financial measures) increased to $40.1 million, compared to $9.7 million for the fiscal second quarter of 2020.
As of March 31, 2021, the Company's cash and cash equivalents balance was $76.7 million, an increase of $56.3 million compared to $20.4 million as of March 31, 2020.
Liquidity totaled in excess of $100 million on March 31, 2021 including cash on hand and availability on the revolving line of credit and floor plan credit facility. Total inventory as of March 31, 2021 decreased sequentially to $186.1 million compared to $196.1 million on December 31, 2020, primarily due to the increased sales and tight inventory across the industry.
Fiscal Year 2021 Guidance
Given the broad-based outperformance in the first half of fiscal year 2021, OneWater is increasing its outlook. For the fiscal full year 2021, the Company now expects same store sales to increase in the mid-to-upper teens, with Adjusted EBITDA to be in the range of $130 million to $135 million and diluted earnings per share to be in the range of $5.80 to $6.00, excluding any acquisitions that may be completed later in the year. This outlook assumes OneWater's manufacturers can maintain production at the current pace to meet elevated demand levels in the face of industry-wide supply chain constraints.
Conference Call and Webcast
OneWater will host a conference call to discuss its fiscal first quarter earnings on Thursday, April 29, 2021 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 #1757237. This call is being webcast and 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.
About OneWater Marine Inc.
OneWater Marine Inc. is one of the largest and fastest-growing premium recreational boat retailers in the United States. OneWater operates 69 stores throughout 10 different states, seven 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, parts and accessories, finance and insurance products, maintenance and repair services and ancillary services such as boat storage.
Investor or Media Contact:
Jack Ezzell
Chief Financial Officer
IR@OneWaterMarine.com
