OneWater Marine Inc.

Good morning. My name is Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to the One Water Marine Inc. Fiscal Second Quarter 2025 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Should you wish to ask questions at that time, please press star 1 on your telephone keypad. Thank you. I would now like to turn the conference over to Jack Ezell. Chief Financial Officer, please go ahead.

Good morning and welcome to One Water Marine's fiscal second quarter 2025 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 the 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 that 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 of the company's website and in its filings with the SEC. The company disclaims any obligation or undertaking to update the 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 second quarter 2025 results are made against the second quarter 2024, unless otherwise noted. And with that, I would like to turn the call over to Austin Singleton, who would begin with a few opening remarks. Austin?

Thanks, Jack, and thank you, everyone, for joining today's call. Our teams executed well despite considerable macroeconomic uncertainty and a challenging environment. Fame store sales declined 2% for the quarter, driven primarily by softer sales on the west coast of Florida, which continues to recover from the impact of hurricanes Helena and Milton. Performance from our impacted locations is improving over time, with results more in line with the rest of our dealerships when compared to the first quarter. Total unit sales for the industry were down in excess of 10% for the quarter, with our results continuing to outperform the industry and take market share. In face of these headwinds, our teams across the country continue to execute on our inventory and brand rationalization strategies, where we are seeing tangible benefits. Through strategic planning and a strong push to close sales, we reduced inventory by 12% year over year, and 5% sequentially outpacing the industry. This not only improves working capital, but also strengthens our long-term position. We continue to be focused on keeping a clean slate of inventory that includes our highest performing brands as we make our way through the selling season. Gross margins remain challenged largely due to the current promotional environment within the industry. We are being thoughtful with our pricing, striking a balance between closing the deal and maintaining margin, integrity, and brand value. We are also continuing to execute on our cost savings initiatives. However, higher costs associated with boat shows and inflationary pressures on our fixed costs more than offset savings, leading to higher selling general and administrative expenses as compared to the prior year period. Moving forward, we expect further benefits from our initiatives as we accelerate cost actions in our distribution segment at the end of the quarter. We will continue to adjust our cost structure to align with retail activity given our flexible operating model. Turning to the tariff landscape, we are keeping a close eye on the situation and monitoring developments. From where we stand today, we do not expect an impact to pricing on our current inventory, We are communicating with our manufacturing partners who are doing their best to mitigate tariff impacts and temper pricing increases for the upcoming model year. While the direct impacts to the supply chain are still being determined, we are taking a more cautious view on the demand environment, and consequently, we are updating our outlook. While April results are in line with the prior year, the macro environment remains uncertain. We are focused on factors within our control, including rationalizing our brand portfolio, streamlining operations, and meeting the needs of our customers. These efforts are positioning us to not only weather the challenges of today, but to emerge stronger and more competitive over the long term. With that, I will turn it over to Anthony to discuss the business operations.