OneWater Marine Inc. (OneWater Inc.) is a fastest-growing marine retailer in the United States.
The company had 96 dealership locations, 10 distribution centers/warehouses and multiple online marketplaces as of September 30, 2024. The company’s retail locations are located in highly attractive markets throughout the Southeast, Gulf Coast, Mid-Atlantic and Northeast, many of which are in the top twenty states for marine retail expenditures. The company is a market leader by volume in sales of pr...
OneWater Marine Inc. (OneWater Inc.) is a fastest-growing marine retailer in the United States.
The company had 96 dealership locations, 10 distribution centers/warehouses and multiple online marketplaces as of September 30, 2024. The company’s retail locations are located in highly attractive markets throughout the Southeast, Gulf Coast, Mid-Atlantic and Northeast, many of which are in the top twenty states for marine retail expenditures. The company is a market leader by volume in sales of premium boats in many of the markets in which the company operates.
Additionally, the acquisitions of T-H Marine Supplies, LLC (‘T-H Marine’) and Ocean Bio-Chem, Inc. (now Ocean Bio-Chem, LLC) (‘Ocean Bio-Chem’) have significantly expanded the company’s sales of marine-related parts and accessories. The combination of the company’s significant scale, diverse inventory, access to premium boat brands, access to a broad array of parts and accessories, and meaningful group brand equity enables the company to provide a consistently professional experience as reflected in the number of the company’s repeat customers and Dealership same-store sales growth.
Effective August 9, 2022, the company’s reportable segments changed as a result of the company’s acquisition of Ocean Bio-Chem, which changed management’s reporting structure and operating activities. The company reports its operations through two reportable segments: Dealerships and Distribution.
As of September 30, 2024, the Dealerships segment included operations of 96 dealerships in 16 states, including Florida, Texas, Alabama and Georgia, among others, and represents approximately 91% of revenues for the year ended September 30, 2024. The Dealership segment engages in the sale of new and pre-owned boats, arranges financing and insurance products, performs repairs and maintenance services, offers marine related parts and accessories and offers slip and storage accommodations in certain locations. In the year ended September 30, 2024 (fiscal year 2024), the company sold over 9,500 new and pre-owned boats, many of which were sold to customers who had a trade-in or with whom the company otherwise had established relationships. The company offers a wide array of new boats at various price points through relationships with over 35 manufacturers covering more than 50 brands. The company is a top-three customer for 25 of the company’s brands and the single largest customer for each of the company’s top five highest-selling brands.
As of September 30, 2024, the Distribution segment included the activity of three of the company’s 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. The company offers a wide array of branded parts and accessories, including jack plates, rigging parts, plumbing components, LED lighting, storage systems, and appearance, cleaning, and maintenance products for the marine and ancillary industries.
The company has a diversified revenue profile that is consisted of new boat sales, pre-owned boat sales, finance & insurance products, repair and maintenance services, and parts and accessories. Non-boat sales were approximately 19.3% of revenue in fiscal year 2024.
Market and Customer
The company’s scale and business model allow the company to leverage its 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. The company’s inventory and product selection allow the company 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, the company generates sales from related products, including finance & insurance and service, parts & other sales. The acquisitions of T-H Marine and Ocean Bio-Chem have significantly expanded the company’s sales of marine parts and accessories. The company’s strategic growth in this area is also expected to materially expand the company’s addressable market in the parts and accessories business.
Growth Strategy
The company’s growth strategies are to expand the company’s online presence and sales through digital platforms to engage in online new and pre-owned boat sales, parts and accessories, as well as financing & insurance; and continue to strategically evaluate potential acquisitions.
Products and Services
The company offers new and pre-owned recreational boats, yachts and related marine products, including parts and accessories, with a specific focus on premium brands. The company also provides boat repair and maintenance services, arrange boat financing and insurance and offer other ancillary services, including indoor and outdoor storage, marina services, and rentals of boats and personal watercraft.
New and Pre-Owned Boat Sales
The company’s Dealership segment focuses primarily on the sale of new and pre-owned recreational boats, including saltwater fishing boats, pontoon, runabout, wake/ski boats, and yachts. The company offers products from a broad variety of manufacturers and brands without relying on any one manufacturer or brand in particular. The company also sells pre-owned versions of the brands the company offers and preowned boats of other brands the company takes as trade-ins or acquire.
The company offers new and pre-owned recreational boats in a broad range of product categories. The product lines and brands the company offers are among the highest quality within their respective market categories, with well-established brand recognition and reputations for quality, performance, styling and innovation.
Fishing Boats. Revenue from fishing boats comprised 38% of the company’s new boat revenue for fiscal year 2024. The fishing boats the company offers range from entry-level models to advanced models, from brands such as Everglades, Grady-White, Pursuit, Sportsman, Cobia and World Cat, each designed for fishing and water sports in lakes, bays and off-shore waters, with cabins with limited live-aboard capability. The fishing boats the company offers typically feature livewells, in-deck fishboxes, rodholders, rigging stations, cockpit coaming pads and fresh and saltwater washdowns.
Pontoon Boats and Runabouts. Revenue from pontoon boats and runabouts comprised 29% of the company’s new boat revenue for fiscal year 2024. The company offers a variety of some of the most innovative, luxurious, and premium pontoon models to fit boaters’ needs, from brands such as Bennington and Barletta. The company’s 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 the company offers 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. With a variety of designs and options, the pontoon boats and runabouts the company offers appeal to a broad audience of boat enthusiasts and existing customers.
Wake/Ski Boats. Revenue from wake/ski boats comprised 4% of the company’s new boat revenue for fiscal year 2024. The ski boats the company offers range from entry-level models to advanced models, from brands such as Axis and Malibu, all of which are designed to generate specific wakes for optimal skiing, surfing and wakeboarding performance and safety. With a broad range of designs and options, the ski boats the company offers appeal to both competitive and recreational users.
Yachts. Revenue from yachts comprised 24% of the company’s new boat revenue for fiscal year 2024. The yachts the company offers range from traditional models to advanced models, from brands such as Absolute, Riviera, Tiara and Sunseeker. The yacht product lines typically include state-of-the-art designs with live-aboard luxuries, offering amenities such as flybridges with extensive guest seating; covered aft deck, which may be fully or partially enclosed, providing the boater with additional living space; an elegant salon; and multiple staterooms for accommodations.
Motors, Trailers, Personal Water Crafts (‘PWC’), Wholesale and Other. Revenue from motors, trailers, PWC, wholesale and other sales comprised 5% of the company’s new boat revenue for fiscal year 2024. The motors and trailers the company offers range in size, horsepower, length and style dependent upon the type of boat the company’s customers may own. The company offers PWC, primarily including models from Yamaha and Sea Doo, which appeal to a broad audience of customers. Wholesale sales primarily consist of transactions with other dealers and other sales include the remaining new inventory products the company offers.
Finance & Insurance Products
At each of the company’s dealerships, the company’s customers have the ability to finance their new or pre-owned boat purchase, purchase a third-party extended service contract and arrange insurance covering boat property, disability, gel sealant, fabric protection and casualty insurance coverage (collectively, ‘finance & insurance’). The company’s relationships with various national marine product lenders allow buyers to purchase retail installment contracts originated by the company in accordance with existing pre-sale agreements between the company and the lenders. These retail installment contracts provide the company with a portion of the expected finance charges based on a variety of factors, including the buyer’s credit rating, the annual percentage rate of the contract and the lender’s then-existing minimum required annual percentage rate. These contracts are subject to repayment by the company upon buyer prepayment or default within a designated time period (typically within 180 days). To the extent required by applicable state law, the company’s dealer groups are licensed to originate and sell retail installment contracts financing the sale of boats and other marine products.
The company offers its customers third-party extended service contracts, which allow the company to extend customers’ new boat coverage beyond the time frame or scope of the manufacturer’s standard hull and engine warranty. The company also offers purchasers of pre-owned boats the ability to purchase a third-party extended service contract, even if the applicable boat is no longer covered by the manufacturer’s warranty. The company also provides the related repair services, when needed by the company’s customers, pursuant to the service contract guidelines during the contract term at no additional charge to the customer above a deductible. Generally, the company receives a fee for arranging these extended service contracts and most of the required services under the contracts are provided by the company and paid for by the third-party contract holder.
The company also assists its customers with obtaining property and casualty insurance. Property and casualty insurance covers loss or damage to their boat. The company does not act as an insurance broker or agent or issue insurance policies on behalf of insurers. The company provides marketing activities and other related services to insurance companies and brokers for which the company receives marketing fees. One of the company’s strategies is to generate increased marketing fees by offering more competitive insurance products.
Service, Parts & Other
Service, parts & other accounted for 16.4% of the company’s revenue during fiscal year 2024 and is consisted of revenues generated from the company’s Dealerships and Distribution reporting segments.
Dealerships
The company provides repair and maintenance services at most of the company’s dealerships. The company’s repair and maintenance services help strengthen its customer relationships and that the company’s quality service and emphasis on preventative maintenance increases the quality and supply of well-maintained boats available for the company’s pre-owned boat business. The company performs both warranty and non-warranty repair services, with the cost of warranty work reimbursed by the manufacturer in accordance with the manufacturer’s warranty reimbursement program. The company also offers third-party extended warranty contracts, which result in a continuous demand for the company’s repair and maintenance services for the term of the extended warranty contract.
The company offers engine parts, oils, lubricants, steering and control systems, electronics, safety products, water sport accessories (such as tubes, wakeboards, surfboards, lines, and lifejackets), products relating to docking and anchoring, boat covers, trailer parts, and a complete line of other boating accessories at the company’s dealerships and online, primarily to retail customers to repair their current engines or other marine related parts and equipment.
At certain of the company’s dealerships, the company offers marina and boat rental services, which are generally recurring in nature and create additional opportunities to connect with potential buyers. The company maintains a small fleet of rental boats, and after one season, the rental boats are repurposed for pre-owned sales. Additionally, the company operates 20 marina locations that provide fueling, docking and indoor and outdoor storage.
Distribution
The company offers the sale of marine related parts and accessories along with appearance and maintenance products for the marine and other ancillary markets.
The acquisitions of T-H Marine and PartsVu expanded the company’s sale of marine related parts and accessories, including general boat accessories, electronics (GPS, radar, sonar, etc.), original equipment manufacturer (‘OEM’) marine parts, boat performance items, access hatches, deck plates, deck hardware, live well aeration, plumbing fittings, battery trays, fishing rod holders, boat lights, rigging accessories, trolling motor accessories, and safety equipment. These products are sold to boat manufacturers, distributors, big box retailers, boat dealerships and after-market customers.
The acquisition of Ocean Bio-Chem further expanded the company’s Distribution segment. Ocean Bio-Chem is principally engaged in the manufacture, marketing, and distribution of a broad line of appearance, performance and maintenance products for the marine, automotive, power sports, recreational vehicle, home care and outdoor power equipment markets, under the Star brite and Star Tron brand names. In addition, Ocean Bio-Chem produces private label formulations of many of its products for various customers and provide custom blending and packaging services for these and other products. 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.
This segment has advanced the company’s strategic growth and diversification strategies and has expanded the company’s addressable market in the parts and accessories business.
Locations
In the company’s Dealership segment, the company offers new and pre-owned recreational boats and other related marine products and boat services through 96 dealerships in 16 states as of September 30, 2024. Each dealership generally includes an indoor showroom and an outside display area for the company’s new and pre-owned boat inventories, along with a business office to facilitate finance & insurance products and repair and maintenance services facilities. The company also has 10 locations spanning 5 states in the company’s Distribution segment. The use of these facilities varies and primarily includes manufacturing facilities, distribution centers, warehouses, administrative and product testing centers.
Sales and Marketing
Each of the company’s dealerships offer its customers the opportunity to evaluate a variety of new and pre-owned boats in an environment that is convenient, comfortable and professional. The company’s dealerships provide a full-service purchasing process, which includes attractive finance & insurance packages and extended third-party service agreements. The company has a number of waterfront dealerships, most of which include marina-type facilities and docks at which the company displays its new and pre-owned boats. These waterfront dealerships and marinas are easily accessible to boating customers, operate as in-water showrooms and enable the company’s sales team to give potential customers impromptu in-water demonstrations of the company’s various boat models. The company’s sales team members are providing certain customers with the option of in-person or virtual walkthroughs of inventory and/or private, at home or on water showings. The company continues to expand its online presence and sales through digital platforms to engage in online new and pre-owned boat sales, parts and accessories, as well as finance & insurance products. The company continue to launch tools for its internally developed customer relationship management system, the company’s websites and online sales portals, which the company expects to be further enhanced by the company’s continued investments in digital initiatives.
The company provides customers a diverse offering of boat brands, which span across a multitude of sizes, uses and activities, including leisure, fishing, watersports, luxury and vacation.
With the addition of T-H Marine and Ocean Bio-Chem, the company sells its manufactured and assembled products through national retailers, direct to OEM manufacturers and online. The company’s branded and private label products are sold through national retailers such as Wal-Mart, Tractor Supply, West Marine and Bass Pro Shops. Additionally, the company markets its products via online retailers, such as Amazon. The company also sells to national and regional distributors that resell the company’s products to specialized retail outlets.
Additionally, the company focuses on customer education through personalized education by the company’s sales representatives and other professionals, before, during and after a sale through product demonstrations on the use and operation of their boat. Typically, one of the company’s delivery professionals or the sales representative delivers the customer’s boat to the customer’s boating location and thoroughly instructs the customer about the operation of the boat, including hands-on instructions for docking and trailering the boat.
With the addition of T-H Marine and Ocean Bio-Chem, the company sells its manufactured and assembled products through national retailers, direct to OEM manufacturers and online. The company’s branded and private label products are sold through national retailers such as Wal-Mart, Tractor Supply, West Marine and Bass Pro Shops. Additionally, the company markets its products via online retailers such as Amazon. The company also sells to national and regional distributors that resell the company’s products to specialized retail outlets.
Seasonality
The company’s business, along with the entire retail marine industry, is highly seasonal, and such seasonality varies by geographic market. With the exception of Florida, the company generally realizes significantly lower sales and higher levels of inventories, and related floor plan borrowings, in the quarterly periods ending December 31 and March 31. Revenue generated from the company’s dealerships in Florida serves to offset generally lower winter revenue in the company’s other states and enables the company to maintain a more consistent revenue stream. Over the three-year period ended September 30, 2024, the average revenue for the quarters ended December 31, March 31, June 30 and September 30 represented approximately 20%, 27%, 31%, and 22%, respectively, of the company’s average annual revenues. Every January, the onset of consumer boat and recreation shows generally marks the beginning of an increase in boat sales which allows the company to begin to reduce the company’s inventory levels and related short-term borrowings for the remainder of the fiscal year.
Environmental and Other Regulatory Issues
The company’s business operations, along with the entire retail marine industry, are subject to numerous environmental and occupational health and safety laws and regulations that may be imposed in the United States at the federal, state and local levels. Federal agencies that implement and enforce these laws and regulations include the U.S. Environmental Protection Agency (‘EPA’) and the U.S. Occupational Safety and Health Administration (‘OSHA’). The more significant of these environmental and occupational health and safety laws and regulations include the following federal legal standards that currently exist in the United States, as amended from time to time:
the Clean Air Act (‘CAA’), which restricts the emission of air pollutants from many sources, including outboard marine engines and chemical manufacturing operations, and imposes various pre-construction, operational, monitoring, and reporting requirements, and that the EPA has relied upon as authority for adopting climate change regulatory initiatives relating to greenhouse gas (‘GHG’) emissions;
the Federal Water Pollution Control Act (the ‘Clean Water Act’), which regulates discharges of pollutants from facilities to state and federal waters and establishes the extent to which waterways are subject to federal jurisdiction and rulemaking as protected waters of the United States;
the Oil Pollution Act (‘OPA’), which subjects owners and operators of vessels, onshore facilities, and pipelines, as well as lessees or permittees of areas in which offshore facilities are located, to liability for removal costs and damages arising from an oil spill in waters of the United States;
the Comprehensive Environmental Response, Compensation, and Liability Act (‘CERCLA’), which imposes liability on generators, transporters, disposers and arrangers of hazardous substances at sites where hazardous substance releases have occurred or are threatening to occur;
the Resource Conservation and Recovery Act (‘RCRA’), which governs the generation, treatment, storage, transport, and disposal of solid wastes, including hazardous wastes;
the Emergency Planning and Community Right-to-Know Act, which requires facilities to implement a safety hazard communication program and
disseminate information to employees, local emergency planning committees, and fire departments on toxic chemical uses and inventories; and
the Occupational Safety and Health Act, which establishes workplace standards for the protection of the health and safety of employees, including the
implementation of hazard communications programs designed to inform employees about hazardous substances in the workplace, potential harmful
effects of these substances, and appropriate control measures.
Intellectual Property
The company is the registered holder of a U.S. trademark and a domain name that include the company’s primary brand name ‘OneWater’. Additionally, the company has obtained registered trademarks for Star brite , Star Tron , Performacide and other trade names used on the company’s products. The company also relies on a number of trade names with respect to the regional dealer groups that the company has acquired, which the company does not re-brand under the company’s ‘OneWater’ mark.
The company owns several patents, the most significant of which relate to a delivery system for use with products containing chlorine dioxide. In 2021, the company was issued a new patent for the company’s ClO delivery system that expires on July 8, 2039.
History
OneWater Inc. was founded in 2014. The company was incorporated as a Delaware corporation in 2019.
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