Company: ONEW
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001772921-25-000025
Chunk: 139

Company: OneWater Marine Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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 equipment to support operations.

Transaction Costs 

Transaction costs increased to $0.9 million for the six months ended March 31, 2025 compared to $0.7 million for the six months ended March 31, 2024, which is attributable to similar acquisition activity for the six months ended March 31, 2025 and 2024.   

Change in Fair Value of Contingent Consideration 

During the six months ended March 31, 2025, we recognized expense of $0.3 million related to accretion of contingent consideration liabilities. During the six months ended March 31, 2024, we recognized expense of $3.7 million related to updated forecasts and accretion of contingent consideration liabilities.

Restructuring and impairment 

During the six months ended March 31, 2024, we made proactive changes to better align our cost structure with the normalization of sales and margins and accordingly, recognized a loss of $11.8 million related to the restructuring plan. During the six months ended March 31, 2025, we recognized a loss of $2.3 million related to other various restructuring activities, of which $1.2 million was recorded in restructuring and impairment and $1.1 million was recorded in new boat cost of sales in the unaudited consolidated statement of operations.

Income from Operations

Income from operations decreased $6.0 million, or 29.7%, to $14.3 million for the six months ended March 31, 2025 compared to $20.3 million for the six months ended March 31, 2024. The decrease was primarily attributable to the $17.3 million decrease in gross profit and the $1.7 million increase in depreciation and amortization for the six months ended March 31, 2025 as compared to the six months ended March 31, 2024, partially offset by a $10.6 million decrease in restructuring and impairment and a $3.4 million decrease in the change in fair value of contingent consideration during the same periods. 

Interest Expense – Floor Plan 

Interest expense – floor plan decreased $1.8 million, or 11.1%, to $14.5 million for the six months ended March 31, 2025 compared to $16.3 million for the six months ended March 31, 2024. Floor plan related interest expense decreased primarily due to an decrease in the average inventory for the six months ended