OneWater Marine Inc. announced results for its fiscal third quarter ended June 30, 2022.
"The business is firing on all cylinders, significantly exceeding our expectations. We delivered record results in the fiscal third quarter, with revenues increasing 41% and Adjusted EBITDA rising 45%. Our performance was bolstered by strength across the business, diversity in our model, and a powerful, multi-faceted acquisition engine,” commented Austin Singleton, chief executive officer at OneWater. “Through a broad network of high-caliber stores, our dealers are leveraging OneWater’s scale, inventory and expanded offerings, while mitigating challenges presented by a constrained production environment. At the same time, we are rapidly growing the business and further positioning OneWater as a leader in the industry. Our announced acquisition of Ocean Bio-Chem, Inc. late in the quarter provides yet another example of our M&A prowess to support long-term profitable growth.”
Record revenue for fiscal third quarter 2022 was $568.9 million, an increase of 40.7% compared to $404.2 million in fiscal third quarter 2021 and was primarily due to our increase in same-store sales and revenue from acquired businesses, with strong contribution from acquired revenues related to service, parts and other sales. During fiscal third quarter 2022 same-store sales increased 12% compared to fiscal third quarter 2021, primarily as a result of the continued strong demand environment.
New and pre-owned boat revenue increased 30.8% and 38.1%, respectively, compared to the prior year, driven by a significant increase in the average unit price of new boats and a significant increase in the unit sales of pre-owned boats. Finance & insurance income was up 24.6% and service, parts and other sales was up 152.6%, both compared to the prior year, as a result of the Company’s acquisition activity to expand the higher margin, less cyclical service, parts & other revenues.
Gross profit totaled $183.9 million for fiscal third quarter 2022, up $57.0 million from $127.0 million for fiscal third quarter 2021. Gross profit margin of 32.3% increased 90 basis points compared to the prior year period driven by strategic acquisitions of companies focused on higher margin, less cyclical service, parts & other revenues and brokerage revenues, as well as the shift in the mix and size of boats sold and local pricing strategies.
Fiscal third quarter 2022 selling, general and administrative expenses totaled $87.9 million, or 15.4% of revenue, compared to $60.5 million, or 15.0% of revenue, in fiscal third quarter 2021. The increase in selling, general and administrative expenses as a percentage of revenue was due mainly to higher marketing expenses, as well as higher administrative costs.
Net income for fiscal third quarter 2022 totaled $64.5 million, compared to $51.6 million in fiscal third quarter 2021. The increase was primarily due to the elevated gross profit and significant increase in service, parts and other sales during the period.
“As we enter the final quarter of our fiscal year, we have maintained our momentum and the consumer demand has been robust,” Singleton said. “Since entering the public markets more than two years ago, we have delivered strong earnings results for our shareholders quarter after quarter, and we believe we have strategies in place for long-term value creation. Through our expanded footprint, diversified business model and best-in-class integration playbook, we believe we are well-positioned for outperformance throughout the coming years.”