OneWater Marine Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the One Water Marine, Inc. Fiscal First Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star then 1 on your telephone. Please be advised that today's conference may be recorded. If you require any further assistance, please press star then 0. I would now like to hand the conference over to your host today, Jack Ezell, Chief Financial Officer. Please go ahead.

Good morning, and welcome to the One Water Marine Fiscal First Quarter 2021 Earnings Conference Call. I'm joined on the call today by Austin Singleton, Chief Executive Officer, and Anthony Asquith, President and Chief Operating Officer. Before we begin, I would like to remind you that certain statements made by management in this morning's conference call regarding One Water Marine and its operations may be considered forward-looking statements under securities law and involve a number of risks and uncertainties. As a result, the company cautions you that there are a number of factors, many of which are beyond the company's control, which would cause actual results to differ materially from those described in the forward-looking statements. Factors that might affect future results are discussed in the company's earnings release, which can be found on the investor relations section of the company's website, and in his filings with the SEC. The company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. And with that, I'd like to turn the call over to Austin Singleton, who will begin with a few opening remarks.

Austin? Thanks, Jack, and thank you, everyone, for joining today's call. We delivered tremendous results in the first quarter of 2021, including a 39% increase in revenue compared to the prior year. Expanded gross margins and significantly increased earnings. Same-source sales increased 38% in the quarter, on top of a 17% increase in the prior year and a 25% increase last quarter. Leveraging our efficient sales process, innovative digital platform, and key relationships with our manufacturers, we realized growth across all market segments. Year over year, new boat sales increased 48%, while pre-owned boat sales grew 18%. Our high margin finance and insurance income also saw strong growth of 38%, and service parts and other revenue rose 32% compared to the prior year. Overall gross margins surged 360 basis points with margin increases across all categories. The tremendous growth during the quarter can be attributed to our ongoing investment in our highly effective digital platform, CRM, and innovative sales process. Additionally, the combination of our inventory management systems and dynamic pricing strategy continue to lay the foundation for future outperformance. On the M&A front, we had a very busy start to the fiscal year, completing three of the largest acquisitions in OneWater's history and putting more than $80 million to work for our shareholders. As we have successfully done many times in the past, we are laser focused on implementing our tried and tested integration playbook. This translates into increasing sales and EBITDA. Let me briefly recap these new dealerships. Tom George Yacht Group enhances our presence on the west coast of Florida and expands new and pre-owned boat sales, as well as yacht brokerage and service and parts. Walker Marine Group marks the largest dealership acquisition in our company's history, adding five retail locations in southwest Florida to serve its established and growing customer base with new and pre-owned boat sales, quality service and parts, as well as finance and insurance services. And lastly, but certainly not least, Rossioli Yachting Center expanded the company's presence in the yachting category, supporting our diversification strategy, including higher margin service and repair offerings. We have completed three acquisitions in line with our expectations of doing two to four deals per year. Since the pandemic hit the U.S. last March, we have kept our M&A pipeline full and remain opportunistic. We were fortunate to be able to front load these acquisitions, which we expect to have a significant impact on our physical 2021 results and long into the future. As we continue to execute on our long-term growth strategy, we are confident that through the integration of our recent M&A activity, continued investment in our innovative digital technology, and the evolution of our higher margin business segments, We will further drive market share growth and sustain a meaningful value for our shareholders. With that, I will turn it over to Anthony to discuss business operations.