OneWater Marine Inc. (NASDAQ: ONEW) has announced results for its fiscal second quarter ended March 31, 2023.
Austin Singleton, CEO commented:
Our team once again showcased its ability to execute in a dynamic environment, delivering a 19% growth in sales during the quarter, on top of a 34% increase in the prior year period. Same store sales grew 11% year-over-year driven by a balance of unit and price increases. Additionally, our higher margin service, parts and other sales grew 28% in the quarter, bolstered by revenue from strategic acquisitions and organic growth. As the industry continues to return to historical seasonal cycles with more normalized pricing and inventory levels, we will utilize our robust sales platform and inventory management tools to continue to outperform the industry, gain market share and create value for our shareholders.
Fiscal Second Quarter 2023 Highlights
- Revenue increased 19% to $524 million, a new fiscal second quarter record
- Service, parts & other revenue grew 28% to $78 million
- Same-store sales increased 11%
- Gross profit margin of 28% remains strong
- Net income was $27 million in the quarter or $1.56 per diluted share
- Adjusted EBITDA1 of $52 million
Revenue for fiscal second quarter 2023 was $524.3 million, an increase of 18.6% compared to $442.1 million in fiscal second quarter 2022. The growth was primarily attributable to strong new boat sales and service, parts and other sales from acquired businesses. During fiscal second quarter 2023, same-store sales increased 11%, driven by increases in both units sold and average price per unit.
New boat revenue increased 22.5%, driven by an increase in unit sales and average unit price. Finance & insurance income increased 2.5% compared to the prior year quarter. Pre-owned boat revenue was flat, driven by an increase in unit sales, offset by a decrease in consignment revenue. Service, parts and other sales were up 27.8% compared to the prior year quarter.
Gross profit totaled $146.7 million for fiscal second quarter 2023, up $4.2 million from $142.5 million for fiscal second quarter 2022. Gross profit margin of 28.0% decreased 420 basis points compared to the prior year period, driven by the normalization of new and pre-owned boat pricing, partially offset by meaningful contributions from higher margin service, parts & other revenue.
Fiscal second quarter 2023 selling, general and administrative expenses totaled $90.2 million, or 17.2% of revenue, compared to $75.5 million, or 17.1% of revenue, in fiscal second quarter 2022. Selling, general and administrative expenses as a percentage of revenue were flat compared to the prior year period.
Net income for fiscal second quarter 2023 totaled $27.0 million, compared to $42.4 million in fiscal second quarter 2022. Earnings per diluted share for fiscal second quarter 2023 was $1.56 per diluted share, compared to $2.54 per diluted share in 2022. For fiscal second quarter 2023, interest expense increased $9.9 million compared to the prior year driven by an increase in the average outstanding borrowings and higher interest rates.
Fiscal second quarter 2023 Adjusted EBITDA1 decreased 21.7% to $51.8 million compared to $66.1 million for fiscal second quarter 2022.
As of March 31, 2023, the Company’s cash and cash equivalents balance was $61.0 million and total liquidity, including cash and availability under credit facilities, was in excess of $100.0 million. Total inventory as of March 31, 2023 increased to $593.3 million compared to $293.2 million on March 31, 2022, primarily driven by acquisitions completed during the year and the return of the traditional seasonal cycles.
Total long-term debt as of March 31, 2023, was $463.2 million, and adjusted long-term net debt (net of $61.0 million cash)1 was 1.8 times trailing twelve-month Adjusted EBITDA1.
