OneWater Marine Inc.

Good day and welcome to the One Water Marine fiscal fourth quarter and full year 2024 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 and then two. Please note this event is being recorded. I would now like to turn the conference over to Jack Izzle, Chief Financial Officer. Please go ahead.

Good morning and welcome to One Water Marine's fiscal fourth quarter and full year 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'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 sections of the company's website, and in its filings with the SEC. The company declaims 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. Please note that all comparisons of our fourth quarter 2024 results are made against the fourth quarter of 2023, unless otherwise noted. 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. This past year has been challenging for our team, our industry, and our communities. Tragically, in late September, Hurricane Helena struck, followed by Hurricane Milton in early October, causing extensive damage and disruption across the west coast of Florida. Our thoughts and prayers remain with those affected by the storms. Most importantly, I am pleased to report that our teams are safe and most of our stores sustained only minor damage. As of today, while a few docks are still under repair, all retail locations have reopened and are fully operational. Despite the hardships, the resilience and support within these communities has been remarkable. I'm incredibly proud of our team's dedication to our customers and the communities during these difficult times. As you would expect, the disruption from Hurricane Alina significantly impacted Our fourth quarter results. As previously disclosed in our press release in late September, we temporarily closed several stores in preparation for the storm and as insurance companies imposed a moratorium on writing new policies. As a result, sales were disrupted during a typically strong selling period for us. While the number of sales were closed in October, it is difficult to predict when the remaining sales will deliver. Customers are starting to settle insurance claims and rebuild their lives, and our teams are prepared to serve them when they are ready. This past year was challenging for the marine industry as demand and pricing reset to historical norms. Our team's strong operational execution, along with our revenue, brand, and geographic diversity helped us mitigate these challenges. We remain focused on disciplined expense management and keeping our operating model in line with current demand. As a result, we executed further cost saving measures in the fourth quarter, including rationalizing additional brands and consolidating certain parts and service facilities to more efficiently serve our customers. Although these restructuring actions impact margins in the fourth quarter, we expect to see benefit in 2025. We implemented similar actions earlier in the year that are already yielding results. as reflected in our lower SG&A expenses compared to the prior year period. We believe this positions us for success in the coming year. Turning to full year results, same-store sales were down 7%, reflecting softer demand within the broader recreational marine market. While this fell slightly short of our target, it's worth noting that through August, same-store sales we're down only 5% aligning with our expectations before the impact of Hurricane Alina. Our distribution segment service parts and other sales were also negatively impacted throughout the year by lower production for manufacturers. With higher interest rates on our floor plan and the current selling environment, we remain focused on managing our inventory to align with retail demand. I am proud with the progress we've made in executing our inventory strategy and we are well positioned as we head into 2025 with inventory tracking in the right direction. Turning to M&A, we were relatively quiet in 2024 as compared to prior years, but the pipeline remains active. Opportunistic transactions with a minimal capital outlay continue to be attractive and plentiful. We are actively monitoring the market and pursuing targets that meet our discipline, financial criteria while also supporting our strategic objectives. As we look back on the year, our diverse revenue streams, strategic brand offering, and geographic reach have helped us offset some of the challenges from macroeconomic uncertainty and adverse weather. This has enabled us to navigate what remains a complex operating environment. While cautious, we hold an optimistic view as we move into 2025. As Anthony will touch on shortly, the customer is active and we are strategically managing our inventory and our cost optimization efforts for March and September are working. Recent interest rate cuts and inventory reduction have helped reduce our overall interest expense and carrying costs. While not embedded into our guidance, future interest rate cuts should provide additional tailwinds to our business. With that, I will turn it over to Anthony to discuss the business operations.