OneWater Marine today reported first-quarter revenue of $153.7 million, an increase of 49 percent compared with $103.3 million in fiscal first quarter 2019. It’s the company’s first quarterly financial report since its initial public offering earlier this month.
OneWater said in a statement that the increase was primarily driven by sales of both new and preowned units.
“Following a successful initial public offering earlier this month, we are thrilled to report a strong start to our fiscal year 2020,” CEO Austin Singleton said in the statement. “Since its inception in 1987, OneWater has executed a strategy that blends organic growth and strategic acquisitions. We believe that this strategy, coupled with an excellent customer experience, has positioned OneWater well to meet the demands of a large and growing boating market.”
Recently acquired dealerships contributed to the increase in first quarter sales, and same-store sales for the quarter increased 17 percent, comprising increases in units sold and price per unit.
First quarter finance and insurance income increased to $4.3 million from $2.2 million in the prior year period.
Gross profit was $32.2 million for the quarter 2020, compared to $23.3 million for the same quarter in 2019, driven by the increased new and preowned unit sales and higher F&I income.
OneWater said gross margin of 20.9 percent declined 170 basis points compared to the prior year due primarily to a shift in the mix and size of boats sold, the margin profile of recently acquired locations and the company’s emphasis on generating strong same-store sales.
“During the fiscal first quarter, positive consumer sentiment and favorable retail boat trends drove our same-store sales growth of 17 percent, with increased sales across all of our boat categories, particularly in ski and wake, as well as runabouts,” Singleton said. “Feedback from the start of the 2020 boat season suggests continued momentum and optimism across our network. In fact, our sales at several major boat shows, such as Atlanta, grew beyond our high-single-digit expectations.”
The company doubled its “high-margin” F&I income, Singleton said.
For fiscal 2020, OneWater expects same-store sales growth of low double-digits and adjusted EBITDA in the range of $56 million to $58 million, excluding potential acquisitions.
“As we look to the remainder of fiscal 2020, while we anticipate that solid consumer retail trends will continue, the agility of our team and operations allow us to react quickly to any change in macroeconomic disruptions and their potential impact on marine retail sales,” Singleton said. “We also believe the pipeline of high-quality dealerships to add to the OneWater family remains robust.”