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We believe that we are a market leader by volume in sales of premium boats in many of the markets in which we operate.
−Removed: Additionally, the recent acquisitions of T-H Marine Supplies, LLC (“T-H Marine”) and Ocean Bio-Chem, Inc.
−Removed: ("Ocean Bio-Chem") have significantly expanded our sales of marine-related parts and accessories.
+Added: Additionally, the acquisitions of T-H Marine Supplies, LLC (“T-H Marine”) and Ocean Bio-Chem, Inc.
+Added: (now Ocean Bio-Chem, LLC) ("Ocean Bio-Chem") have significantly expanded our sales of marine-related parts and accessories.
The combination of our significant scale, diverse inventory, access to premium boat brands, access to a broad array of parts and accessories, and meaningful group brand equity enables us to provide a consistently professional experience as reflected in the number of our repeat customers and Dealership same-store sales growth.
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In fiscal year 2024, we sold over 9,500 new and pre-owned boats, many of which were sold to customers who had a trade-in or with whom we otherwise had established relationships.
−Removed: We offer a wide array of new boats at various price points through relationships with 49 manufacturers covering 70 brands.
+Added: We offer a wide array of new boats at various price points through relationships with over 35 manufacturers covering more than 50 brands.
We believe we are currently a top-three customer for 25 of our brands and the single largest customer for each of our top five highest-selling brands.
While we believe our order volume amounts to between 10% to 40% of total sales for those top five brands, no single brand accounts for more than 8% of our total sales volume.
−Removed: As of September 30, 2023, the Distribution segment includes the activity of three of our fully-owned businesses, PartsVu, Ocean Bio-Chem and T-H Marine and its subsidiaries, which together operate 11 distribution centers/warehouses in Alabama, Florida, Oklahoma, Indiana, Tennessee and Illinois and represents approximately 9% of revenues.
+Added: As of September 30, 2024, the Distribution segment includes the activity of three of our fully-owned businesses, Central Assets & Operations, LLC d/b/a PartsVu ("PartsVu"), Ocean Bio-Chem and its subsidiaries and T-H Marine and its subsidiaries, which together operate 10 distribution centers/warehouses in Alabama, Florida, Oklahoma, Indiana and Tennessee and represents approximately 9% of revenues.
The Distribution segment engages in the manufacturing, assembly and distribution of primarily marine-related products for sale to distributors, big box retailers, online retailers and direct to consumers.
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Our Market and Our Customer
−Removed: Consumer spending in the United States on boats, engines, services, parts, accessories and related purchases reached $59.3 billion in 2022, up 4.4% from 2021, and has, on average, grown in excess of 6% annually since 2011.
−Removed: New powerboat sales have driven market growth and reached $16.0 billion in 2022, resulting in a 12% average annual growth rate since 2011.
+Added: Consumer spending in the United States on boats, engines, services, parts, accessories and related purchases reached $57.7 billion in 2023, down 2.6% from 2022, and has, on average, grown 6% annually since 2012.
+Added: New powerboat sales have driven market growth and reached $15.8 billion in 2023, resulting in an 11% average annual growth rate since 2012.
Of the approximately 959,000 powerboats sold in the United States in 2023, 82% of total units sold (approximately 783,000 ) were pre-owned.
−Removed: Relative demand for new and late-model boats has increased in recent years in part due to the continuous evolution of boat technology and design including, but not limited to, seating configurations, power, efficiency, instrumentation and electronics, and wakesurf gates, each of which represents a material design improvement that cannot be matched by more dated boat models.
+Added: Relative demand for new and late-model boats has remained strong in recent years in part due to the continuous evolution of boat technology and design including, but not limited to, seating configurations, power, efficiency, instrumentation and electronics, and wakesurf gates, each of which represents a material design improvement that cannot be matched by more dated boat models.
We believe the increasing pace of innovation in technology and design will result in more frequent upgrade purchases and ultimately higher sales volumes of new and late-model, pre-owned boat sales.
−Removed: While we continue to monitor the impact of the macro-economic environment, including challenges related to inflation and consumer demand, our financial position through September 30, 2023 suggests that spending in our regions and across product lines has proven resilient as families continue to focus on outdoor recreation, driving increased sales.
The boat dealership market is highly fragmented and is comprised of approximately 4,000 dealerships nationwide.
Most competing boat retailers are operated by local business owners who own three or fewer stores;
−Removed: however we do have two large competitors – MarineMax and Bass Pro Shops.
+Added: however we do have other large competitors.
We believe we are one of the largest and fastest-growing marine retailers in the United States.
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Our scale and business model allow us to leverage our extensive inventory to provide consumers with the ability to find a boat that matches their preferences (e.g., make, model, color, configuration and other options) and to deliver the boat within days while providing a personalized sales experience.
+Added: Our inventory and product selection allow us to cater to a highly diverse customer base with price points and boat types that appeal to a broad spectrum of budgets and preferences.
In addition to boat sales, we also generate sales from related products including finance & insurance and service, parts & other sales.
−Removed: The recent acquisitions of T-H Marine and Ocean Bio-Chem have significantly expanded our sales of marine parts and accessories.
+Added: The acquisitions of T-H Marine and Ocean Bio-Chem have significantly expanded our sales of marine parts and accessories.
Our strategic growth in this area is also expected to materially expand our addressable market in the parts and accessories business.
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To the extent that we are not, we will evaluate acquiring other local retailers in order to increase our sales, to add additional brands or to provide us with additional high-quality personnel.
−Removed: Our inventory and product selection allow us to cater to a highly diverse customer base with price points and boat types that appeal to a broad spectrum of budgets and preferences.
−Removed: The boating industry’s and MarineMax’s average selling prices for a new boat were $84,000 in calendar year 2022 and $306,000 in fiscal year 2023, respectively.
−Removed: By comparison, our average selling price for a new boat in fiscal year 2023 was $232,000.
Growth Strategy
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While we have a strong presence in the Southeastern portion of the United States, there are several areas of opportunity in states adjacent to our current geographic footprint as well as states in new regions in the Midwest and Western United States.
−Removed: We continue to strategically evaluate potential acquisitions and as a result of our reputation in the marketplace, we expect our pipeline of potential acquisitions to grow over time.
+Added: We continue to strategically evaluate potential acquisitions and as a result of our reputation in the marketplace, we expect our pipeline of potential acquisitions to remain strong.
Industry Trends and Market Opportunity
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While Florida is the leading state for new boating sales and registrations due to its abundance of both fresh water and salt water, boating is very popular throughout the United States with Texas, Michigan, North Carolina and Minnesota representing the rest of the top five states for new marine retail expenditures.
−Removed: In 2022, $59.3 billion was spent on retail boating sales, which has contributed to annual growth in excess of 6% percent since 2011.
+Added: In 2023, $57.7 billion was spent on retail boating sales, which has contributed to annual growth of 6% percent since 2012.
Consumer marine spending includes purchases of new and pre-owned boats;
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Boat sales volumes are correlated with consumer confidence and the availability of consumer credit.
−Removed: Recent increase in spending has been driven by the rising average selling prices partially offset by a decrease in units sold.
−Removed: Innovation, including updated boat configurations, hull designs, wake gates and other electronics, have contributed to shorter boat upgrade cycles which result in higher unit sales volume prior to the current year decrease.
+Added: Innovation, including updated boat configurations, hull designs, wake gates and other electronics, contribute to shorter boat upgrade cycles which typically results in higher unit sales volume.
Pre-owned traditional powerboat sales were approximately $10.3 billion in 2023, which represents a decrease of 15.3% compared to 2022.
−Removed: After the significant growth in 2020 and 2021, pre-owned traditional powerboat sales have started to normalize following the COVID-19 pandemic but still remain well in excess of pre-pandemic sales.
+Added: After the significant growth in 2020 and 2021, pre-owned traditional powerboat sales have normalized following the COVID-19 pandemic but still remain well in excess of the pre-pandemic level of $9.2 billion in 2019.
With the exception of 2020 - 2022, pre-owned traditional powerboat sales have remained relatively consistent seen since 2006 and through economic cycles.
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Revenue from pontoon boats and runabouts comprised 29% of our new boat revenue for fiscal year 2024.
−Removed: We offer a variety of some of the most innovative, luxurious, and premium pontoon models to fit boaters’ needs, from brands such as Bennington, Barletta and Harris.
−Removed: Our runabouts, such as Cobalt, Regal and Chris-Craft, target the family recreational boating markets and come in a variety of configurations to suit each customer’s particular recreational boating style.
+Added: We offer a variety of some of the most innovative, luxurious, and premium pontoon models to fit boaters’ needs, from brands such as Bennington and Barletta.
+Added: Our runabouts, such as Cobalt, Regal, Chris-Craft and Yamaha, target the family recreational boating markets and come in a variety of configurations to suit each customer’s particular recreational boating style.
The models we offer may include amenities such as advanced navigation electronics and sound systems, a variety of hull, deck, and cockpit designs that can include a swim platform, bow pulpit and raised bridges, and swivel bucket helm seats, lounge seats, sun pads, wet bars, built-in ice chests, and refreshment centers.
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Ocean Bio-Chem also manufactures, markets and distributes chlorine dioxide-based deodorizing disinfectant, and sanitizing products under the Star brite® and Performacide® brand names, utilizing a patented delivery system for use with products containing chlorine dioxide.
−Removed: We believe this segment will advance our strategic growth and diversification strategies and is expected to materially expand our addressable market in the parts and accessories business.
+Added: This segment has advanced our strategic growth and diversification strategies and has expanded our addressable market in the parts and accessories business.
We believe that the expansion will allow us to drive deeper customer engagements through the offer of private label consumable products and may help partially offset the industry cyclicality of boat sales.
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Each location is managed by a general manager, often a former owner, who oversees the day-to-day operations and financial performance of that particular individual location.
−Removed: Typically, each retail location also has a staff consisting of sales representatives, a finance & insurance manager, a service manager, a parts manager, maintenance and repair technicians and additional support personnel.
+Added: Each retail location also has a staff typically consisting of sales representatives, a finance & insurance manager, a service manager, a parts manager, maintenance and repair technicians and additional support personnel.
Distribution centers/warehouses typically have an on-site management team and warehouse workers.
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We also display a select number of boats and yachts through consignment agreements, including with related parties.
−Removed: We offer a wide array of new boats at various price points through relationships with 49 manufacturers covering 70 brands.
+Added: We offer a wide array of new boats at various price points through relationships with over 35 manufacturers covering more than 50 brands.
We believe we are currently a top-three customer for 25 of our brands and the single largest customer for each of our top five highest-selling brands.
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For the years ended September 30, 2024, 2023 and 2022 , interest on new boats and for rental units was calculated using the Adjusted 30-Day Average SOFR (as defined in the Inventory Financing Facility section below) .
−Removed: For the years ended September 30, 2021, interest on new boats and for rental units was calculated using the legacy one month London Inter-Bank Offering Rate (“LIBOR”).
Our Inventory Financing Facility requires us to pay the benchmark rate plus an applicable margin of 2.75% to 5.00% depending on the age of the inventory.
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Every January, the onset of consumer boat and recreation shows generally marks the beginning of an increase in boat sales which allows us to begin to reduce our inventory levels and related short-term borrowings for the remainder of the fiscal year.
−Removed: Our limited ability to participate in boat shows in our existing target markets, including cancellation of boat shows for any reason, including a pandemic, could have an impact on our seasonality.
+Added: Our limited ability to participate in boat shows in our existing target markets, including cancellation of boat shows for any reason, including weather events or a global health crisis, could have an impact on our seasonality.
To the extent boat shows may be delayed or cancelled, we intend to hold complementary sales events on a smaller, more personalized scale.
Our business is also sensitive to weather patterns, such as unseasonably cool weather, prolonged winter conditions, drought conditions (or merely reduced rainfall levels) or excessive rain, which may shorten the selling season, limit access to certain locations for boating or render boating hazardous or inconvenient, thereby curtailing customer demand for our products and services and adversely affecting our results of operations.
−Removed: Additionally, hurricanes and other storms may cause disruptions to our business operations or damage to our inventories and facilities.
+Added: Additionally, hurricanes, tornadoes and other storms have and in the future may cause disruptions to our business operations or damage to our inventories and facilities.
We believe our geographic diversity is likely to reduce the overall impact to us of adverse weather conditions in any one market area.
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Our inability to participate in boat shows in our existing or targeted markets could have a material adverse effect on our business, financial performance and results of operations.
−Removed: We compete primarily with local marine retailers who own three or fewer stores, as well as with a limited number of larger operators, including MarineMax and Bass Pro Shops.
+Added: We compete primarily with local marine retailers who own three or fewer stores, as well as with a limited number of larger operators.
Additionally, with respect to sales of marine parts, accessories, and equipment, we also compete with national specialty marine parts and accessory stores, online catalog retailers, sporting goods stores, and mass merchants.
47 unchanged sentences
The remainder of the OneWater LLC Units are held by certain Legacy Owners (the “OneWater Unit Holders”).
−Removed: References in this Form 10-K to the “Legacy Owners” refer to the owners of OneWater LLC as they existed immediately prior to the Reorganization, including, but not limited to, certain affiliates of Goldman Sachs & Co.
−Removed: LLC, affiliates of The Beekman Group and certain members of our management team.
+Added: References in this Form 10-K to the “Legacy Owners” refer to the owners of OneWater LLC as they existed immediately prior to the Reorganization.
As the sole managing member of OneWater LLC, OneWater Inc.
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Schraudenbach held various positions at Ernst & Young for 37 years until his retirement in June 2019.
−Removed: He served as the Americas Senior Client Service Partner at Ernst & Young beginning in 2014, where he established structure and policies for Ernst & Young’s Americas Assurance practice.
−Removed: Prior to this, Mr.
−Removed: Schraudenbach was the Managing Partner of Business Development for the Southeast U.S.
−Removed: Region and an Audit Partner.
−Removed: Schraudenbach serves on the board of Printpack, Inc a private manufacturer of packaging materials for consumer products and other industries.
+Added: Schraudenbach serves on the board of Proficient Auto Logistics, Inc.
+Added: PAL), a company in the auto hauling industry.
+Added: He also serves on the board of Printpack, Inc a private manufacturer of packaging materials for consumer products and other industries.
Schraudenbach also serves on the University of Georgia Foundation Board as well as various other civic organizations.
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Prior to that, he was the Executive Vice-President and Chief Financial Officer of Movie Gallery, Inc., a Nasdaq-listed video specialty retailer.
−Removed: Roy has served on the University of Alabama President’s Cabinet, and as a Director at the Business Council of Alabama and the Dothan Area Chamber of Commerce.
+Added: Roy currently serves on the University of Alabama System Board of Trustees and previously served as a Director at the Business Council of Alabama and the Dothan Area Chamber of Commerce.
Roy earned his B.S.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.