OneWater Marine Inc. announced results for its fiscal third quarter ended June 30, 2023.
Revenue for fiscal third quarter 2023 was $594.3 million, an increase of 4.5% compared to $568.9 million in fiscal third quarter 2022, which the company said was attributable to strong pre-owned boat sales and service, parts and other sales from acquired businesses. During fiscal third quarter 2023, dealership same-store sales were flat.
“In a deteriorating selling environment, our team did a great job driving a 4% increase in sales, maintaining flat dealership same-store sales and aggressively managing overall boat inventory. The marine industry continues to transition back to historical norms and moderated pricing. However, the pace of this transition accelerated ahead of expectations, which pressured margins in the third quarter,” commented Austin Singleton, Chief Executive Officer at OneWater.
New boat revenue decreased by 1.4%, driven by a decrease in units sold, partially offset by an increase in average unit price. Finance & insurance income was flat compared to the prior year quarter. Pre-owned boat revenue increased 13.5%, driven by an increase in both unit sales and average price per unit. Service, parts and other sales were up 23.2% compared to the prior year quarter, supported by the company’s strategic focus on expanding its high margin, less cyclical revenue streams.
Gross profit totaled $159.4 million for fiscal third quarter 2023, down $24.5 million from $183.9 million for fiscal third quarter 2022. Gross profit margin of 26.8% decreased 550 basis points compared to the prior year period, driven by the accelerated normalization of new and pre-owned boat pricing, partially offset by meaningful contributions from higher margin service, parts & other revenue.
Fiscal third quarter 2023 selling, general and administrative expenses totaled $92.8 million, or 15.6% of revenue, compared to $87.9 million, or 15.4% of revenue, in fiscal third quarter 2022. The slight increase in selling, general and administrative expenses as a percentage of revenue was due to higher costs associated with the company’s acquired service, parts & other businesses.
Net income for fiscal third quarter 2023 totaled $33.3 million, compared to $64.5 million in fiscal third quarter 2022.
“We remain intently focused on strategic inventory management, cost optimization, and generating free cash flow to end the year in a position of strength,” Singleton said.
OneWater’s full Q2 2023 results can be found on the company’s investors website.