OneWater Marine reported 49 percent revenue growth in its third quarter, to $408.3 million. Same-store sales improved 44 percent.
New-boat sales increased 59 percent, to $287 million, and finance and insurance income increased 66 percent, to $16.6 million. Net income grew 24 percent, to $40.6 million, and adjusted EBITDA increased 95 percent, to $49.2 million, the company reported in a statement.
“The fiscal third quarter 2020 was a record quarter with unprecedented retail demand resulting in significant growth across all of our core business segments, including new-boat sales increasing nearly 59 percent, and our higher margin business, like finance and insurance, accelerating by more than 66 percent,” CEO Austin Singleton said in the statement.
The OneWater team pivoted quickly to accommodate an “incredibly fluid environment” while delivering substantial market share gains, Singleton said. “Further, our competitive differentiators, including our highly efficient sales process, innovative retail technologies and strong manufacturer partnerships, supported our outperformance of the industry,” he said.
“This summer proved that boating has become one of the top activities for those looking to enjoy the outdoors and spend time with friends and family in a safe, socially distanced way,” Singleton added. “More importantly, the strength of OneWater’s flexible business model has enabled us to execute incredibly well in a challenging environment.”
The company said it is encouraged by retail sales in July continuing at a robust pace and by the building sales backlog for August, despite the rapidly changing environment and a strong comparison on same-store sales from last year, Singleton said.
“In addition, we recently enhanced our financial strength by utilizing excess cash to complete the pay-down and refinancing of our term debt, which will lead to interest expense savings in excess of $6 million in fiscal year 2021 and offers more flexible covenants and terms,” he said.
This will result not only in significant savings going forward, but also provides the company with added flexibility as it resumes its acquisition strategy, Singleton said.
“We are confident that the strength in the marine industry will continue into the 2021 season as customers seek safe outdoor activities that can be enjoyed close to home,” he said. “Additionally, we are focused on executing on our multifaceted growth strategy through both acquisitions and the expansion of our high-margin business, which we believe will drive long-term shareholder value.”