OneWater Marine Inc. (NASDAQ:ONEW) Q3 2023 Earnings Conference Call August 3, 2023 8:30 AM ET

Company Participants

Jack Ezzell - Chief Financial Officer

Austin Singleton - Chief Executive Officer

Anthony Aisquith - President & Chief Operating Officer

Conference Call Participants

Joseph Altobello - Raymond James

Michael Swartz - Truist Securities

Kevin Condon - Baird

Brandon Rollé - DA Davidson

Operator

Good day and thank you for standing by. Welcome to OneWater Marine's Fiscal Third Quarter 2023 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I'd now like to hand the conference over to the speaker today. Please go ahead.

Jack Ezzell

Good morning and welcome to OneWater Marine's fiscal third quarter 2023 earnings conference call. I'm joined on the call today by Austin Singleton, Chief Executive Officer; and Anthony Aisquith, 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 OneWater 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 the future results are discussed in the company's earnings release which can be found in the Investor Relations section on 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.

And with that, I'd like to turn the call over to Austin Singleton, who will begin with a few opening remarks. Austin?

Austin Singleton

Thanks, Jack and thank you everyone for joining today's call. I would like to start by commending our team for doing a tremendous job driving increased sales and maintaining flat same-store sales in this dynamic and changing environment, especially as we lap a comparable period of double-digit same-store sales growth in the biggest quarter of the year.

The selling environment deteriorated in the third quarter. However, our team rose to the challenge. In the face of double-digit declines in industry unit sales, we delivered flat unit sales and same-store sales. With our sales pace outperforming the industry, we believe these results in increased market share for OneWater. We also maintained a very healthy inventory level of 17 weeks on hand. The industry average is approximately 28 weeks and as it continues to build, some believe the industry inventory levels will grow to 35 weeks to 40 weeks on hand. This will undoubtedly lead to a more promotional environment and put further pressure on new boat margins.