OneWater Marine Inc.

Good day and welcome to the OneWater Marine Incorporated Second Quarter 2024 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 Mr. Jack Ezell, Chief Financial Officer. Thank you and over to you.

Good morning and welcome to One Water Marine's fiscal second quarter 2024 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 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 could cause actual results and events to differ in material 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 Arrested Relations section of the company's website and its filings with the FTC. 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. Our second quarter results were in line with our expectations at the start of the year. As we continue to see the industry stabilize towards historical cycles, same-store sales were down 5.1 percent as anticipated, considering the more normalized demand environment and the return of seasonality. However, We significantly outperformed the industry, which market data indicates was down 16 percent through March. From where we stand today, consumer sentiment is holding, and we continue to sell boats and grow our market share. Sales dynamics from the first quarter largely carried into the second quarter as customer buying patterns mirrored typical seasonality in an increasingly competitive selling environment. Pricing continued to moderate, which we expected through the first half of the year and will continue fluctuating with seasonal trends. Year-to-date, we have experienced more normalized pricing, solid finance and insurance penetration, and an inventory build peaking in February, all in line with historical standards. Thus, we believe we are headed towards a more typical year for OneWater in the industry. As a reminder, we historically build inventory levels during the winter months. From there, volumes ramped starting with the winter boat shows and through the summer selling season. Through the coming summer months, we expect to work inventory down to an appropriate level in preparation for the next model year boats. As we assess the business with where we are in this yearly cycle, our performance is tracking in line with seasonal pre-COVID metrics, reinforcing the strength and durability of our business model. As we have said before, we have grown significantly since 2019 through strategic acquisitions and strong execution of our integration playbook. As a result, we expect our baseline to reset higher than what we saw pre-COVID as the industry normalizes, though we continue to manage the business prudently with our ongoing focus on expense management. We had a solid first half of the year, and our variable cost structure allowed us to better align our SG&A expenses with market demand. However, given the degree of uncertainty in the marketplace, we found it prudent to proactively take further action to reduce costs. These actions went into effect late in the quarter, but we expect to see results in the back half of the year. We have additional flexibility should we need it, and we continue to monitor our expense structure to adjust for changes in retail activity. Accordingly, we remain cautiously optimistic and are maintaining our previously issued guidance. Turning to M&A, the deal pipeline remains active, and we continue to monitor the market for opportunities that support our growth objectives. As announced in yesterday's press release, we have closed on the acquisition of Garden State Yacht Sales, a premium sales, parts, and service, and marina facility. The acquisition bolsters our presence in the mid-Atlantic U.S. a low-risk, low-cost transaction that complements our Stone Harbor location. We are excited to put our proven integration playbook to work and capitalize on the strong upside potential of this acquisition. As we move through the back half of the year, we believe we are on the right trajectory for our business. While we continue to monitor various macroeconomic headwinds, I am confident we will extend OneWater's track record of successfully navigating through various economic cycles. With that, I will turn it over to Anthony to discuss business operations.