OneWater Marine Inc.

Good day, and thank you for standing by. Welcome to One Water Marines Fiscal Fourth Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After this week's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 11. or on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mr. Jack Azell, Chief Financial Officer. Please go ahead, sir.

Good morning, and welcome to One Water Marines' fiscal fourth quarter and full year 2023 earnings conference call. I am joined on the call today by Austin Singleton, Chief Executive Officer, and Anthony Asquith, 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 Longwater 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 the 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 SCC filings. 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 i would like to begin by thanking the one water team for their solid execution in a challenging operating environment despite the return to historical buying patterns and normalized pricing we delivered record revenue in 2023 which increased 11% on top of a 42% growth in 2022. Furthermore, the team delivered same-store sales growth of 3% for the full year. For the quarter, same-store sales of 14.6% significantly outperformed the industry, which market data indicated was down high single digits. Full-year revenue from our higher margin sales Service parts and other sales grew 26%, which helped us offset the expected decline in new boat margins as the industry returned to normalized pricing. Margins in the fourth quarter were in line with the third quarter, which is encouraging. Overall, we believe that margins will continue to fluctuate with seasonality and model mix, but it does seem to feel like boat margins are stabilizing. Windwater's proven track record of managing through various economic cycles served us well during 2023. Over the past year, our proactive and aggressive approach to inventory management resulted in inventory levels at 19 weeks on hand compared to an industry average of 25 weeks on hand. We continue to aggressively work down non-current inventory, saving on interest expense and other carrying costs. This positioned us with a good supply of model year 2024 boats compared to 2023, which provides a more compelling sales opportunity. This competitive positioning in a market flooded with non-current inventory is driving results today and sets us up for success in the quarters to come. I am pleased to announce that earlier this week, despite the difficult banking environment, we were able to increase our floor plan facility by $100 million, to a total capacity of 650 million. This will support the business and recent completed acquisitions. It's important to note that while same store sales inventory hasn't grown in terms of units compared to 2019, it has increased more than 40% on a dollar basis. This additional capacity provides us greater flexibility, especially as we integrate the dealers we have acquired over the past few years. We also completed a sale leaseback agreement for Rossioli Yachting Center, which bolstered our cash flow and allows us to sharpen our focus on Sunseeker yacht sales, warranty, and service operations. The proceeds from the sale were used to pay down a portion of our long-term debt and to acquire the remaining 20% interest in quality boats located on the west coast of Florida. As a reminder, we first acquired a major interest back in December of 2021 and have been pleased with quality's performance in one of the most attractive boating markets in the country. On the M&A front, the deal pipeline continues to be attractive, and our strong balance sheet provides the drive power for the right dealer. While we are seeing plenty of activity, we are being extremely selective and scrutinize every opportunity to find the right dealership to add to our portfolio. In summary, I'm proud of our team's execution while navigating industry challenges as we return to a more normalized operating environment. We continue to work tirelessly to provide our customers with the boat of their dreams. We remain nimble in our response to changing market dynamics and continue to focus our efforts on strategic priorities that position OneWater for long-term success. With that, I will turn it over to Anthony to discuss business operations.