Investor Presentation
F e b r u a r y 2 0 2 4
1
Disclaimer
Cautionary Statement Concerning Forward-Looking Statements
Information in this presentation of OneWater Marine Inc. ("OneWater," "ONEW," the "Company," "we," or "us"), and any oral statements made in connection therewith, may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including regarding our strategy, future operations, financial position, prospects, plans and objectives of management, growth rate and its expectations regarding future revenue, operating income or loss or earnings or loss per share. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "will be," "will likely result," "should," "expects," "plans," "anticipates," "could," "would," "foresees," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "outlook" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These forward-looking statements are not guarantees of future performance, but are based on management's current expectations, assumptions and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct.
Important factors, some of which are beyond our control, that could cause actual results to differ materially from our historical results or those expressed or implied by these forward-looking statements include the following: effects of industry wide supply chain challenges including a heightened inflationary environment and our ability to maintain adequate inventory, changes in demand for our products and services, the seasonality and volatility of the boat industry, fluctuation in interest rates, adverse weather events, our acquisition and business strategies, the inability to comply with the financial and other covenants and metrics in our credit facilities, cash flow and access to capital, effects of the COVID-19 pandemic on the Company's business, risks related to the ability to realize the anticipated benefits of any proposed acquisitions, including the risk that proposed acquisitions will not be integrated successfully, the timing of development expenditures, and other risks. More information on these risks and other potential factors that could affect our financial results is included in our filings with the Securities and Exchange Commission, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our most recently filed Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.
Non-GAAP Financial Measures
This presentation includes financial measures that are not presented in accordance with generally accepted accounting principles ("GAAP"), including Adjusted EBITDA, Adjusted Net Income Attributable to OneWater and Adjusted Diluted Earnings Per Share, and Return on Invested Capital ("ROIC"). While management believes Adjusted EBITDA, Adjusted Net Income Attributable to OneWater and Adjusted Diluted Earnings Per Share, and ROIC may be useful in performing meaningful comparisons of past and present operating results and in understanding the performance of ongoing operations and how management views the business, none are a measure of our financial performance under GAAP and none should be considered in isolation or as an alternative to any measure of such performance derived in accordance with GAAP. Adjusted EBITDA is calculated as net income (loss) before interest expense - other, income tax expense, depreciation and amortization and other (income) expense, further adjusted to eliminate the effects of items such as the change in fair value of warrant liability, contingent consideration, gain (loss) on extinguishment of debt, transaction costs, stock-based compensation and loss on impairment. Adjusted Net Income Attributable to OneWater is calculated as net income (loss) attributable to OneWater before transaction costs, intangible amortization, change in fair value of contingent consideration, loss on impairment and other expense (income), all of which are then adjusted for an allocation to the non-controlling interest of OneWater Marine Holdings, LLC. Each of these adjustments are subsequently adjusted for income tax at an estimated effective tax rate. Management also reports adjusted diluted earnings per share which presents all of the adjustments to net income attributable to OneWater noted above on a per share basis. ROIC is calculated as Adjusted EBITDA of an investment divided by the GAAP purchase price of an investment, including estimated earnout payments.
Amounts excluded from these non-GAAP measures in future periods could be significant and our current presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. These non-GAAP measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Because our non‐-GAAP financial measures may be defined differently by other companies, our definition of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. We have not reconciled non GAAP forward-looking measures to their corresponding GAAP measures because certain items that impact these measures are unavailable or cannot be reasonably predicted without unreasonable efforts. See the Appendix for a reconciliation to directly comparable GAAP financial measures.
Industry and Market Data
This presentation includes market data and other statistical information from third-party sources, including independent industry publications or other published independent sources. Although we believe these third-party sources are reliable as of their respective dates, we have not independently verified the accuracy or completeness of this information. Some of the data is also based on our good faith estimates, which are derived from our review of internal sources as well as the third-party sources described above.
Trademarks and Trade Names
OneWater owns or has rights to various trademarks, service marks and trade names that it uses in connection with the operation of its business. This presentation also contains trademarks, service marks and trade names of third parties, which are the property of their respective owners. OneWater's use or display of third parties' trademarks, service marks, trade names or products in this presentation is not intended to, and does not imply, a relationship with OneWater (except as stated herein) or an endorsement or sponsorship by or of OneWater. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that OneWater will not assert, to the fullest extent under applicable law, its rights or the right of the applicable licensor to these trademarks, service marks and trade names.
Other
Certain monetary amounts, percentages and other figures included in this presentation have been subject to rounding adjustments. Percentage amounts included in this presentation have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this roadshow may vary from those obtained by performing the same calculations using the figures in our consolidated financial statements included elsewhere. Certain other amounts that appear in this presentation may not sum due to rounding.
2
OneWater at a Glance
KEY INVESTMENT HIGHLIGHTS
One of the fastest | Multi-pronged growth | Expanding margin |
growing marine | strategy; bolstered | profile through |
retailers of scale | by proven M&A strategy | diversification strategy |
STRONG FINANCIAL TRACK RECORD
Revenue ($MM) | Adj. EBITDA ($MM) 1 | ||||||||
$1,936 | $258 | ||||||||
$1,745 | |||||||||
$1,228 | $162 | $176 | |||||||
$1,023 | |||||||||
$768 | $85 | ||||||||
$603 | |||||||||
$41 | $46 | ||||||||
$391 | $18 | ||||||||
FY 17 | FY 18 | FY 19 | FY 20 | FY 21 | FY 22 | FY 23 | |||
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 | |||||||||
Margin | 5% | 7% | 6% | 8% | 13% | 15% | 9% | ||
Experienced | Consistent track record of |
leadership | leading adj. EBITDA |
team | growth |
GROWING FOOTPRINT
98 | 10 |
Retail locations | Parts and accessories |
centers | |
18 | Multiple Online |
States | marketplaces |
3 | Note: Company has a September 30 fiscal year end. | |
1. | See reconciliation of non-GAAP financial measures in the appendix. | |
2. | CAGR FY17 - FY23. |
OneWater's Evolution into a Market Leader
KEY
- # RETAIL LOCATIONS
Singleton family | Mr. Aisquith |
founded | joins Singleton |
Marine |
1 | 9 |
15
23
29
Mr. Ezzell joins
OneWater
45
53
96 | 98 |
63 | 61 | 70 |
1987 | 2008 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
4 | Note: Figures in bar chart represent ONEW owned retail locations as of fiscal year end. 2023 figures are as of December 2023. |
Strategic footprint in highly attractive markets
KEY
Denotes ONEW as market leader | Stores | Parts and Accessories Center |
Note: retail location count as of February 2024.
1. Graphic excludes 1 international Denison Yachting location in Monaco
52. 2022 NMMA Recreational Boating Statistical Abstract. Top 20 states, in order, include Florida, Texas, Michigan, North Carolina, Minnesota, New York, Wisconsin, California, Georgia, Alabama, South Carolina, Tennessee, Louisiana, New Jersey, Missouri, Washington, Ohio, Virginia, Illinois, and Pennsylvania.
98
retail locations across 15 states1
11
of which are
top 20 boating states2
Market leader in more than
10 markets
In excess of
65
boat brands
In excess of
45
boat manufacturers
Diversified Income Streams Across the Boat Life Cycle
NEW BOAT SALES | PRE-OW NED BOAT SALES | FINANCE & INSURANCE | PARTS & ACCESSORIES | REPAIR & | |||||||||
MAINT . SERVICES | |||||||||||||
CONTRIBUTION | |||||||||||||
Revenue | Revenue | Revenue | Revenue |
64% | 17% | 3% | 16% |
CONTRIBUTION | |||
Gross Profit | Gross Profit | Gross Profit | Gross Profit |
50% | 14% | 10% | 26% |
6
Note: Represents figures for the fiscal year 2023 ended September 30, 2023.
Acquisition Driven Growth Strategy
HIGHLY FRAGMENTED MARKET | STRATEGIC RATIONALE/M&A PLAYBOOK |
4,000+ | Top dealers | Geographic | Multi-year |
dealerships | in top markets | expansion | pipeline |
nationwide |
DRIVING HIGH RETURN
FY 2016 to FY 2022 Dealership Acquisitions
Completed 22 acquisitions for a $386m combined purchase price and preacquisition EBITDA of $78m at an average 4.9x EV/EBITDA multiple including earnouts, generating $114m in trailing twelve months EBITDA1A
29% | 3.4x |
TTM ROIC | TTM EV/EBITDA multiple |
FY16-FY22 acquisitions | FY16-FY22 acquisitions |
Attractive Purchase Multiple - Aim to pay <4.0x EV/EBITDA dealerships
Expanded Geography & Portfolio - Significant targets in attractive marine markets
Financial Returns - Aim to double the EBITDA of an acquired dealership within 24 months
FY 2016 to FY 2018 Dealership Acquisitions
Completed 9 acquisitions for a $72m combined purchase price and preacquisition EBITDA of $16m at an average 4.5x EV/EBITDA multiple including earnouts, generating $49m in trailing twelve months EBITDA1A
68% | 1.5x |
TTM ROIC | TTM EV/EBITDA multiple |
FY16-FY18 acquisitions | FY16-FY18 acquisitions |
7 | Note: ROIC is defined as adjusted EBITDA divided by GAAP purchase price including estimated earnout payments. |
1. TTM as of 12/31/23 | |
The Power of Acquisitions
Acquired dealers gain immediate access to OneWater's portfolio and resources
Acquired | New | Pre-owned | Parts & | Finance & | |||||
Dealer | Boats | Boats | Services | Insurance | |||||
8
Double Acquired Adj. EBITDA within 2 years
YEAR 1 | YEAR 2 |
Path to 2x profit:
- Introduce/expand an array of F&I products to acquired dealers
- Integrate into ONEW inventory universe
- Implement/expand pre-owned trade, reconditioning and sales process
- Implement best practices in parts & services
- Leverage ONEW synergies and scale to identify immediate cost savings
The Power of Acquisitions
Acquired | New | Pre-owned | Parts & | Finance & |
Dealer | Boats | Boats | Services | Insurance |
Separate Parts & Services
acquisition engine
drives further growth
T-H Marine
Distribution Segment
Acquired | Acquired | Acquired |
Distributor | ||
Supplier | Manufacturer | |
9
Consistent Track Record of Leading Growth
ONEWATER HAS CONSISTENTLY DEMONSTRATED AN ABILITY TO ACHIEVE LEADING SAME-STORE SALES AND ACQUISITION GROWTH
Revenue Bridge ($MM)1
$143
$48 | |||||||||||
$370 | |||||||||||
$106 | $147 | ||||||||||
$70 | $99 | $1,936 | |||||||||
$1,745 | |||||||||||
$185 | |||||||||||
$71 | $94 | $1,228 | |||||||||
$1,023 | |||||||||||
$768 | |||||||||||
$603 | |||||||||||
FY18 | Dealership Acquisitions | FY19 | Dealership Acquisitions | FY20 | Dealership Acquisitions | FY 21 | Dealership Acquisitions | FY 22 | Dealership Acquisitions | FY 23 | |
Revenue | Same-Store | Revenue | Same-Store | Revenue | Same-Store | Revenue | Same-Store | Revenue | Same-Store | Revenue | |
Sales | Sales | Sales | Sales | Sales |
% Growth | 12% | 15% | 24% | 9% | 10% | 10% | 12% | 30% | 3% | 8% |
10 | Note: OneWater has a September 30 fiscal year end |
1. Dealership same-store sales growth includes the sales from acquisitions at the end of the dealership's thirteenth month of operations under our ownership. Revenues are only | |
included for identical months in the same-store base periods |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
OneWater Marine Inc. published this content on 09 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2024 15:46:08 UTC.