Exhibit 99.1


OneWater Marine Inc. Announces Fiscal First Quarter 2020 Results
Strong Revenue Growth Builds Momentum Going Into 2020 Boat Season

Fiscal First Quarter 2020 Highlights:


Revenue increased 49% to $153.7 million

Same-store sales grew 17%

Pre-owned boat sales increased 90% to $37.8 million

Finance & insurance income increased 100% to $4.3 million

Operating income increased 176% to $3.0 million

Net loss totaled $1.1 million

Adjusted EBITDA1 rose to $1.1 million, compared to a loss of $0.1 million in the prior year

Successfully completed initial public offering (“IPO”) on February 11, 2020; net proceeds totaled $59.2 million

BUFORD, GA – February 27, 2020 – OneWater Marine Inc. (NASDAQ: ONEW) (“OneWater”) today announced results for its fiscal first quarter ended December 31, 2019.

“Following a successful initial public offering earlier this month, we are thrilled to report a strong start to our fiscal year 2020. 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,” commented Austin Singleton, Chief Executive Officer of OneWater.

Mr. Singleton continued, “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. 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. Furthermore, through our focused efforts and training, we doubled our high-margin finance & insurance income in the fiscal first quarter of 2020 compared to the prior year. We also delivered positive adjusted EBITDA in our seasonally lowest sales quarter.”

“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. We also believe the pipeline of high-quality dealerships to add to the OneWater family remains robust. The successful completion of our IPO further solidifies OneWater’s position as a market leader in the marine industry and sets us up for further expansion and growth in 2020 and beyond,” concluded Mr. Singleton.



1 See reconciliation of Non-GAAP financial measures below.


For the three months ended December 31
 
2019
   
2018
   
$ Change
   
% Change
 
   
(unaudited, $ in thousands)
 
Revenues
                       
New boat sales
 
$
98,102
   
$
67,564
   
$
30,538
     
45.2
%
Pre-owned boat sales
   
37,821
     
19,914
     
17,907
     
89.9
%
Finance & insurance income
   
4,325
     
2,164
     
2,161
     
99.9
%
Service, parts & other sales
   
13,450
     
13,636
     
(186
)
   
(1.4
)%
Total revenues
 
$
153,698
   
$
103,278
   
$
50,420
     
48.8
%

First Quarter 2020 Results

Revenue for the fiscal first quarter 2020 was $153.7 million, an increase of 49% compared to $103.3 million in fiscal first quarter 2019, primarily driven by strong sales of both new and pre-owned units. Stores recently acquired contributed to the increase in first quarter sales and same-store sales for the fiscal first quarter increased 17%, comprised of a balanced increase in both units sold and price per unit. Fiscal first quarter 2020 finance & insurance income increased to $4.3 million from $2.2 million in the prior year period.

Gross profit totaled $32.2 million for the fiscal first quarter 2020, compared to $23.3 million for the fiscal first quarter 2019, driven by the increased new and pre-owned unit sales and higher finance & insurance income. Gross margin of 20.9% declined 170 basis points compared to the prior year due primarily to a shift in the mix and size of boat models sold, the margin profile of recently acquired locations and the Company’s emphasis on generating strong same-store sales.

Fiscal first quarter 2020 selling, general and administrative expenses totaled $28.4 million, or 18.5% of sales, compared to $21.6 million, or 20.9% of sales, in the first quarter of 2019. The reduction in selling, general and administrative expenses as a percentage of sales was due to leverage from the incremental same-store sales increase.

Net loss attributable to common interest holders for the fiscal first quarter of 2020 totaled $3.7 million, compared to net income of $0.8 million, in the fiscal first quarter of 2019.  The decrease is primarily due to a $3.9 million reduction in income related to the non-cash change in fair value of warrant liability and amounts related to the redeemable preferred interest. Post-IPO, OneWater’s share count changed dramatically as a result of the stock split and share offering. Additionally, the warrant liability and redeemable preferred interest were also converted  and repaid, respectively, at the IPO.

Fiscal first quarter 2020 adjusted EBITDA (see reconciliation of Non-GAAP financial measures) totaled $1.1 million, compared to adjusted EBITDA loss of $0.1 million in the fiscal first quarter of 2019.

At December 31, 2019, the Company’s cash and cash equivalents balance was $10.5 million, an increase of $3.5 million compared to $7.0 million at December 31, 2018. Total inventory at December 31, 2019 increased to $313.8 million compared to $251.3 million at December 31, 2018, primarily due to the dealerships we acquired during the fiscal year 2019.

2020 Guidance

For fiscal year 2020, the Company expects same-store sales growth of low double-digits and adjusted EBITDA in the range of $56.0 million to $58.0 million. These amounts exclude the impact of any acquisitions that the Company may complete during the fiscal year 2020.


Recent Developments

On February 11, 2020, OneWater successfully completed its IPO of 5,307,693 shares of its Class A Common Stock at a price of $12.00 per share, which includes the exercise in full by the underwriters of their option to purchase an additional 692,308 shares of Class A Common Stock.

The net proceeds received by OneWater from the offering (after deducting underwriting discounts and commissions) were approximately $59.2 million. OneWater contributed the net proceeds to its subsidiary, One Water Marine Holdings, LLC (“OneWater LLC”) in exchange for limited liability company units in OneWater LLC. OneWater LLC contributed the proceeds to its subsidiary One Water Assets & Operations LLC (“OWAO”) and OWAO used the net proceeds, together with cash on hand and borrowings under its credit facility, to redeem all outstanding preferred units in OWAO held by certain affiliates of Goldman Sachs & Co. LLC and The Beekman Group.

Conference Call and Webcast

OneWater will host a conference call to discuss its fiscal first quarter 2020 earnings on Thursday February 27, 2020 at 8:30 am Eastern time. The conference call may be accessed by dialing (866) 220-5793 in the U.S./Canada or (615) 622-8064 for participants outside the U.S./Canada using the Conference ID # 4568628. This call is being webcast and can be accessed through the “Events” section of the Company’s website at https://investor.onewatermarine.com/ where it will be archived for one year.

About OneWater Marine Inc.
OneWater Marine Inc. is one of the largest and fastest-growing premium recreational boat retailers in the United States. OneWater operates 63 stores throughout 11 different states, eight of which are in the top twenty states for marine retail expenditures. OneWater offers a broad range of products and services and has diversified revenue streams, which include the sale of new and pre-owned boats, parts and accessories, finance and insurance products, maintenance and repair services and ancillary services such as boat storage.

Non-GAAP Financial Measures and Key Performance Indicators
This press release and our related earnings call contain certain non-GAAP financial measures, consisting of adjusted EBITDA as a measure of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, to understand the performance of its ongoing operations and how management views the business. Reconciliations of reported GAAP measures to adjusted non-GAAP measures are included in the financial schedules contained in this press release. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP. Because our non-GAAP financial measures may be defined differently by other companies, our definition of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. We have not reconciled non‐GAAP forward-looking measures to their corresponding GAAP measures because certain items that impact these measures are unavailable or cannot be reasonably predicted without unreasonable efforts.

Adjusted EBITDA
We define Adjusted EBITDA as net income (loss) before interest expense – other, income taxes, depreciation and amortization and other expense (income), further adjusted to eliminate the effects of items such as the change in the fair value of warrants, contingent consideration and transaction costs.

Our board of directors, management team and lenders use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and other items (such as the fair value adjustment of the warrants, contingent consideration and transaction costs) that impact the comparability of financial results from period to period. We present Adjusted EBITDA because we believe it provides useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. We believe that the presentation of this non-GAAP financial measure will provide useful information to investors and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance.


Same-Store Sales
We define same-store sales as sales from our stores excluding new and acquired stores. New and acquired stores become eligible for inclusion in the comparable store base at the end of the store’s thirteenth month of operations under our ownership and revenues are only included for identical months in the same-store base periods. Stores relocated within an existing market remain in the comparable store base for all periods. Additionally, amounts related to closed stores are excluded from each comparative base period. We use same-store sales to assess the organic growth of our revenue on a same-store basis.  We believe that our assessment on a same-store basis represents an important indicator of comparative financial results and provides relevant information to assess our performance.

Cautionary Statement Concerning Forward-Looking Statements
This press release and statements made during the above referenced conference call may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including regarding our strategy, future operations, financial position, prospects, plans and objectives of management, growth rate and its expectations regarding future revenue, operating income or loss or earnings or loss per share. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “will be,” “will likely result,” “should,” “expects,” “plans,” “anticipates,” “could,” “would,” “foresees,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “outlook” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These forward-looking statements are not guarantees of future performance, but are based on management's current expectations, assumptions and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct.

Important factors, some of which are beyond our control, that could cause actual results to differ materially from our historical results or those expressed or implied by these forward-looking statements include the following: decline in demand for our products and services, the seasonality and volatility of the boat industry, our acquisition strategies, the inability to comply with the financial and other covenants and metrics in our credit facilities, cash flow and access to capital, the timing of development expenditures, and other risks. More information on these risks and other potential factors that could affect our financial results is included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the prospectus filed in connection with our initial public offering. Any forward-looking statement speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

Investor or Media Contact:
Jack Ezzell
Chief Financial Officer
IR@OneWaterMarine.com


One Water Marine Holdings, LLC and Subsidiaries
Consolidated Statements of Operations
 
             
For the three months ended December 31
 
2019
   
2018
 
   
($ in thousands except share and per share data)
(unaudited)
 
Revenues
           
New boat sales
 
$
98,102
   
$
67,564
 
Pre-owned boat sales
   
37,821
     
19,914
 
Finance & insurance income
   
4,325
     
2,164
 
Service, parts & other sales
   
13,450
     
13,636
 
Total revenues
   
153,698
     
103,278
 
                 
Gross Profit
               
New boat gross profit
   
16,501
     
12,242
 
Pre-owned boat gross profit
   
5,601
     
3,033
 
Finance & insurance gross profit
   
4,325
     
2,164
 
Service, parts & other gross profit
   
5,762
     
5,880
 
Total gross profit
   
32,189
     
23,319
 
                 
Selling, general and administrative expenses
   
28,440
     
21,629
 
Depreciation and amortization
   
760
     
607
 
Income from operations
   
2,989
     
1,083
 
                 
Other Expense (income)
               
Interest expense – floor plan
   
2,659
     
1,787
 
Interest expense – other
   
1,853
     
1,228
 
Transaction costs
   
437
     
298
 
Change in fair value of warrant liability
   
(771
)
   
(4,695
)
Other income expense, net
   
(122
)
   
(45
)
Total other expense (income), net
   
4,056
     
(1,427
)
                 
Net (loss) income
   
(1,067
)
   
2,510
 
                 
Less: Net income attributable to non-controlling interest
   
247
     
277
 
Net (loss) income attributable to One Water Marine Holdings, LLC
   
(1,314
)
   
2,233
 
                 
Redeemable preferred interest, dividends and accretion
   
2,345
     
1,391
 
OneWater LLC Preferred distribution
   
49
     
47
 
Net (loss) income attributable to common interest holders
 
$
(3,708
)
 
$
795
 
                 
(Loss) earnings per unit attributable to common interest holders:
               
Basic
 
$
(48.42
)
 
$
10.49
 
Diluted
 
$
(48.42
)
 
$
7.72
 


One Water Marine Holdings, LLC and Subsidiaries
Consolidated Balance Sheets
 
             
December 31
 
2019
   
2018
 
   
($ in thousands)
(unaudited)
 
Assets
           
Current assets:
           
Cash
 
$
10,461
   
$
6,992
 
Restricted cash
   
250
     
665
 
Accounts receivable
   
9,574
     
9,336
 
Inventories
   
313,837
     
251,266
 
Prepaid expenses and other current assets
   
11,946
     
2,099
 
Total current assets
   
346,068
     
270,358
 
                 
Property and equipment, net
   
17,489
     
20,200
 
                 
Other assets:
               
Deposits
   
345
     
327
 
Identifiable intangible assets
   
61,304
     
50,735
 
Goodwill
   
113,059
     
99,528
 
Total other assets
   
174,708
     
150,590
 
Total assets
 
$
538,265
   
$
441,148
 
                 
Liabilities and Members’ Equity
               
Current liabilities:
               
Accounts payable
 
$
5,610
   
$
4,274
 
Other payables and accrued expenses
   
14,188
     
9,097
 
Customer deposits
   
7,736
     
5,849
 
Notes payable – floor plan
   
264,481
     
218,353
 
Current portion of long-term debt
   
6,823
     
3,344
 
Total current liabilities
   
298,838
     
240,917
 
                 
Long-term Liabilities:
               
Other long-term liabilities
   
1,569
     
2,486
 
Warrant liability
   
50,116
     
47,528
 
Long-term debt, net of current portion and unamortized debt issuance costs
   
67,013
     
48,096
 
Total liabilities
   
417,536
     
339,027
 
                 
Redeemable preferred interest in subsidiary
   
87,053
     
80,533
 
                 
Members’ Equity:
               
Members' Equity attributable to One Water Marine Holdings, LLC
   
27,962
     
16,718
 
Equity attributable to non-controlling interests
   
5,714
     
4,870
 
Total liabilities and Members' Equity
 
$
538,265
   
$
441,148
 


One Water Marine Holdings, LLC and Subsidiaries
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
 
             
For the three months ended December 31
 
2019
   
2018
 
   
($ in thousands)
(unaudited)
 
             
Net (loss) income
 
$
(1,067
)
 
$
2,510
 
Interest expense – other
   
1,853
     
1,228
 
Income taxes
   
-
     
-
 
Depreciation and amortization
   
760
     
607
 
Gain on settlement of contingent consideration
   
-
     
-
 
Transaction costs
   
437
     
298
 
Change in fair value of warrant liability
   
(771
)
   
(4,695
)
Other expense (income), net
   
(122
)
   
(45
)
Adjusted EBITDA
 
$
1,090
   
$
(97
)




The following information was filed by Onewater Marine Inc. (ONEW) on Thursday, February 27, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Onewater Marine Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Onewater Marine Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Log in with your credentials

or    

Forgot your details?

Create Account