BUFFALO, N.Y. - OneWater Marine Inc. (NASDAQ:ONEW) has announced its financial results for fiscal year 2023, showcasing a mix of robust sales growth tempered by increased expenses and a significant non-cash impairment charge. The company, which went public in early 2020 and operates 98 retail locations, revealed an 11% increase in annual revenue to $1.94 billion. This growth was propelled by strong pre-owned and new boat sales, particularly evident in the last quarter with revenue reaching $451 million, a 13.4% rise year-over-year.
Despite this top-line growth, OneWater faced headwinds that led to a GAAP net loss of $39 million for the fiscal year, primarily due to a non-cash impairment charge of $147 million. This was a notable downturn from the net income of $152.6 million reported in the previous fiscal year. Adjusted diluted earnings per share stood at $5.10, with the company projecting earnings to be between $3.25 and $3.75 for fiscal 2024.
The final quarter's performance exceeded analysts' expectations with revenues surpassing the forecasted $422.2 million. However, gross profit margins contracted to 26.4%, down from last year's 31.7%, reflecting normalization in boat pricing and not meeting market expectations of 27%. The company also saw same-store sales surge by 14.6% year-over-year, significantly outstripping the anticipated modest increase of 0.6%.
OneWater's CEO Austin Singleton highlighted the record revenue and strong cash generation amidst these challenges. He also emphasized the company's strategic focus on high-margin service areas and dealership same-store sales growth for the upcoming fiscal year.
Despite an impressive annualized revenue growth rate of 26% over the past four years, analysts are forecasting a slight decline in OneWater's revenue over the next twelve months by approximately 1.8%. The company's market capitalization currently stands at $381.6 million, supported by a cash balance of over $93.31 million.
OneWater's financial position as of September 30 includes a cash balance of $84.6 million and total liquidity exceeding $100 million. However, inventory levels have increased to $609.6 million due to supply chain normalization and recent acquisitions as part of an aggressive inventory management strategy.
The firm is grappling with moderated boat pricing and elevated selling, general, and administrative costs which have risen to 17.8% of revenue. Total long-term debt is at $457.8 million with adjusted long-term net debt at 2.2 times trailing twelve-month Adjusted EBITDA.
This financial disclosure reflects OneWater Marine's resilience in generating revenue through strategic expansion while navigating market challenges such as pricing normalization and increased operational expenses.
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