OneWater Marine Inc.

Good day and welcome to the One Water Marine Fiscal Second Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jack Ugo, Chief Financial Officer. Please go ahead.

Good morning and welcome to One Water Marine's fiscal second quarter 2022 earnings conference call. I'm joined on the call today by Austin Singleton, Chief Executive Officer, and Anthony Askwith, President and Chief Operating Officer. Before we begin, I'd 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 could cause actual results and events 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 in the investor relations section on the company's website and in its 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. Across the board, we delivered exceptional results for the second quarter of 2022 and outperformed the industry. Bank Store sales increased 8% on top of an incredible 57% comp in the prior year. Our results reaffirm the strength of our proprietary technology, scale and access to our global inventory pool, and proven acquisition model that allows us to outperform. But most importantly, the enthusiasm and persistence of our team to leave no stone unturned led to this record quarter. Revenue for the quarter increased 34% to 442 million, despite the industry-wide supply chain bottleneck impacting OEM production. Importantly, we saw this flow through to the bottom line with adjusted EBITDA growing 65% to 66 million for the quarter. Contributing to those amazing achievements, I want to highlight the significant increase in our higher margin service, parts, and other revenue, which was up a whopping 178% versus the prior year period. Our emphasis on building out the higher margin, stable revenue streams is really coming to light with the addition of TH Marine. As this portion of our business grows, we become less exposed to typical cyclicality of the new boat market. While we are not seeing any signs of the demand abating, we believe One Water is in a strong position regardless of where we are in any given cycle. As aggressive as we have been with our acquisitions, we hold less than 4% of the total market share. In such a fragmented market, we have a long runway to capitalize on our winning strategy and post-acquisition synergies. This proven strategy and synergies gives us a very healthy run rate EBITDA of 240 million that could easily grow in excess of 275 million as synergies take form over the next 24 months. Looking at the larger recreational sector, the marine industry stands to benefit from the migration of populations moving on or near the water. When someone sells their waterfront home and consequently their pre-owned boat, someone else swoops in and buys the home and of course a new boat. In the end, we see this churn as a net positive as more boaters enter the lifestyle. In the more immediate term, we are preparing for the summer selling season as demand continues to accelerate alongside the warmer weather. April was another great month with positive same store sales and we are encouraged by a strong start. Turning to some of our more recent acquisitions, We closed two tuck-in parts and accessories deals this quarter and closed a large dealership transaction in early April. Denison Yachting ranked number one in super yacht sales for three consecutive years is an outstanding addition to our list of strategic acquisitions. With Denison, we significantly extend our customer reach in the super yacht category, as well as improve our service offerings, such as Denison's yacht charter and management services which have experienced record growth since 2019. These services coupled with the brokerage sales will continue to support our higher gross margin profile in the future. As a new boat margins find a new normal, which we expect to happen in the next couple of years, Denison has an exciting opportunity for us, and we look forward to bolstering our combined leadership position in the space. As a part of our corporate acquisition and diversification strategy, we have established a target to complete two to four parts and service acquisitions per year, primarily through our acquisition engine, TH Marine. In addition, we are also targeting to complete four to six dealership acquisitions per year. These transactions continue to add significant shareholder value and are a key ingredient to OneWater's competitive strengths. The quality of our acquisition platform, robust pipeline, and the ability to add true synergistic value is truly unmatched. These transactions will continue to leverage OneWater's expertise and platform to efficiently scale, yielding a true remarkable shareholder return for years to come. In addition to acquisitions, we recognize an opportunity to return cash to shareholders and make strategic investments and what we view as a very undervalued asset, OneWater. This quarter, we announced our first ever stock repurchase program with an authorization of up to $50 million. Considering our current market valuation against our growth outlook, on a cash return perspective, stock repurchasing can be as accretive as a dealership acquisition with no integration or operational risk. With the program in place, we can now weigh the opportunity against deals giving us another tool in our tool belt to drive value to our shareholders. With that, I will turn it over to Anthony to discuss business operations.