OneWater Marine reported a second-quarter increase in revenue of more than 5 percent, to $190 million, primarily driven by sales of preowned units, as well as finance and insurance.
There was a 19.4 percent jump in preowned boat sales, to $43 million from $36 million in the prior year, and a 27.7 percent increase in F&I income, from $6.4 million in the second quarter of 2019 to $8.1 million.
Sales from stores recently acquired contributed to the fiscal second quarter increase in revenues but were partially offset by a 2.7 percent decrease in same-store sales.
“Rising second quarter sales and a proven, adaptable business model contributed to a strong fiscal second quarter,” CEO Austin Singleton said in a statement.
Same-store sales through mid-March outpaced the prior year, delivering approximately 10 percent growth year-over-year, but “slowed significantly” in the last two weeks of March as the covid-19 pandemic spread across the United States.
“Further, robust growth in finance and insurance income and preowned boat sales underscores the resiliency of our diversified portfolio,” Singleton said. “Through the end of April, we have outperformed our expectations despite this unprecedented environment, as nearly all of our dealerships have remained open in some capacity. Our sales team quickly pivoted their selling strategies leveraging our proprietary technology tools, virtual walkthroughs and one-on-one appointments while adhering to social distancing guidelines, to deliver solid April boat sales, ahead of previous years.”
Gross profit totaled $44.6 million for the second quarter, compared to $39.7 million for the samequarter 2019, driven by the increased preowned unit sales and higher finance and insurance income.
Gross profit margin of 23.5 percent increased 150 basis points compared with the prior year, due primarily to a shift in the mix and size of models sold, the margin profile of recently acquired locations and the company’s emphasis on expanding gross profit margins.
“Our top priority remains the health and safety of our team members and customers as we navigate through this difficult environment,” Singleton said.
OneWater company has taken “decisive actions” to align its cost structure and stay focused on adapting to the current environment and meeting shifting consumer demand, he said.
“We believe that while some form of social distancing will be with us through the summer months, boating provides a wonderful opportunity for people to get outdoors with their families while staying safe, which we believe will support continued boat sales, whether new or preowned,” Singleton said. “We believe we are well-positioned to take advantage of new opportunities in our markets as they present themselves and emerge from this crisis stronger.”