OneWater Marine Inc. (NASDAQ:ONEW) Q3 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 08:30 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the OneWater Marine, Inc., Fiscal Third Quarter 2020 Earnings Conference Call.
I would now like to hand the conference over to your speaker today, Mr. Jack Ezzell, Chief Financial Officer. Thank you. Please go ahead.
Good morning, and welcome to OneWater Marine's Fiscal Third Quarter 2020 Earnings Conference Call.
I am joined on the call today by Austin Singleton, Chief Executive Officer, and Anthony Aisquith, President and Chief Operating Officer.
Before we begin, I would 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 would cause actual results and events to differ materially from those described in the forward-looking statements.
Factors that might affect results are discussed in the company's earnings release and can be found on the Investor Relations section of the company's website and in its SEC filings. The company disclaims any obligation or undertaking to update the forward-looking statements to reflect circumstances or events that occur after the date of the forward-looking statements are made, except as required by law.
With that, I would like to turn over the call to Austin Singleton who will begin with a few opening remarks. Austin?
Thanks, Jack, and thank you, everyone, for joining today's call.
Our third quarter 2020 was a record quarter for OneWater and possibly for the industry. Our team executed incredibly well considering we started the quarter with shelter-in-place orders expanding around the country and ended the quarter with unprecedented retail demand. During the quarter, we saw revenues increase 49% and a record same-store sales increase of 44% year-over-year, significantly outpacing industry reports and delivering substantial market share gains across all segments of our business.
Our highly efficient sales process, innovative retail technologies and strong manufacturing partnerships enabled the team to pivot quickly, supporting the growth of new and pre-owned boat sales by 59% and 30% year-over-year, respectively. Our high-margin finance and insurance income also saw a dramatic increase of 66% year-over-year. In total, not only did we achieve record revenue growth, we also saw gross margin expand 40 basis points, which is significant given our diverse model mix. This growth can be attributed to the effectiveness of our digital platform, CRM and custom technologies along with our dynamic pricing strategy, all of which help us to outperform the industry during the quarter and will continue to serve as a competitive advantage going forward.
Our flexible business model has proven to be effective in supporting cycle resilience. During the quarter, our team quickly adjusted to work under shelter-in-place orders and adopted new selling techniques to operate effectively in the current environment, whether it was conducting virtual sales appointments or taking one-on-one appointments with customers