Q3 2020 OneWater Marine Inc Earnings Call
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I'd now like to hand, the conference over to you figure today much Jackie's L. Chief Financial Officer. Thank you. Please go ahead.
Good morning, and welcome to one water Marines fiscal third quarter 2020 earnings Conference call I'm joined on the call today by Awesome, Singleton, Chief Executive Officer, and Anthony Asquith, President and Chief operating.
Oh sure before we begin I would like to remind me that certain statements made by management in this morning's conference call regarding one water marine and its operations maybe 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 number factor as many of which are beyond that.
Companies control, which could cause actual results and events could 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 actually see filings.
The company disclaims any obligation or undertaking to update 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 it would 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 one more 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 increased 49% and a record same store sales increased 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 innovated retail technologies and strong manufacturing partnerships enabled the team to pivot quickly support supporting the growth of new and pre owned boat sales by 59% and 30% year over year, respectively.
Our heart high margin finance and insurance income also saw a dramatic increase of 66% year over year.
In total not only did we achieved record revenue growth. We also saw gross margin expanded 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 we'll continue to serve as a competitive advantage going forward.
Our flexible business model has proven to be effective and 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 are taking one on one appointments with customers at home or out on the war.
We are extremely encouraged by the surge in first time boat buyers.
We believe they can find boating to be an exceptional outdoor activity that can be enjoyed with friends and family in a safe social distanced way.
As with so many we believe these new customers will return to the dealership for annual maintenance and to purchase new parts and accessories on a regular ongoing basis. Additionally, they realize how boating is a lifestyle that they can't live without.
Historically once a customer purchases a boat they tend to remain in bogey for years.
Well just lifecycle, they make purchase a larger boat a different type or style of boat or be interested in the incredible new technology coming from so many of our manufacturers today.
One water uniquely stands ready to serve them with a talented and will train team and a diverse product portfolio of over 70 brands that are carried in some of the leading boating market in the country.
As previously announced at the start of the third quarter, we were focused on implementing our 2008 playbook and initiating cost controls to help navigate through a pandemic. Despite a tremendous recovery and sales. Many of these cost cuts and controls remain in effect. Today addition.
Only we have continued to evaluate new cost savings opportunities to further strengthen our financial position.
We're running a better more efficient company today than we were prior to the outbreak of cope with my team because of these disciplined approach.
To that end, we recently announced the successful completion of our long term debt refinancing.
We also elected to use excess cash to make a significant paydown of the principal amount of our debt in conjunction with the refinance.
These actions will reduce our interest expense by more than 6 million in 2021.
I would like to think Suntrust and Synovus teams, who acted as joint Bookrunners in the syndication for helping US completing this refinancing with very favorable terms in the wake of a turbulent credit environment.
After taking a temporary pause on acquisitions last quarter. So that we can understand the impact of shelter in place orders on our acquisitions EBITDA and manufacturers ability supply product to maintain that EBITDA. We are back in acquisition mode.
M&A as a key part of our strategic growth plans and our acquisition pipeline remains full with opportunities that can both strengthen our current geographic footprint and help us to expand into some of the best boating markets in the country.
We've built a significant cash position on the balance sheet and an expense and expanded our revolver, which provides us significant dry powder to complete acquisitions in the future.
With that said, we will we will be disciplined in our executions as we evaluate potential acquisitions, but are excited about our near term prospects.
We remain focused on executing our long term growth strategy and are confident that through the completion of strategic acquisitions.
Implementation of innovative technologies.
Ongoing process is process improvements and the evolution of our higher margin business segments, we will be able to expand our market share generate meaningful value for our shareholders as we move forward.
With that we'll turn it over to Anthony to discuss business operations.
Thanks Austin.
Our team continues to adopt new sales strategies to deliver both on time.
Keep our growing customer base out on the water.
As mentioned earlier with people people hasn't moved to travel in the current environment.
Other activities being canceled we've seen more individuals and families turn to boating this summer in.
It was more virtual world or sales team has embraced our initiative.
Industry, leading technology and proprietary digital platform to effectively engage with new customers continue building relationships with existing customers.
All of our stores if soon so reopened.
During the quarter many stores were temporarily closed.
To shelter in place restrictions.
And some employees are continued to work remotely today.
Our inquiries they'd be remains our priority.
And as the result of our technology, we put in place they've been able to continue to sell and service customers in a new paper environment.
In this high demand environment.
We're operating them, we've seen inbound be increased roughly 500%.
And the investments we've made in our custom CRM have enabled us to efficiently handle this tremendous surge our inventory management tool and operational dashboard have made it easy for us that sailboats across all of our dealerships.
Move inventory across locations need rising demand and have provided visibility about inventory coming in from our diverse list of manufacturers.
These to support our current and future sales trends and will help us continue to outperform the industry.
Our close relationship with her manufacturer partners to ensure we did not the.
Issue security inventory to meet the heightened demand we sold during the quarter.
I'd like to thank all of our manufacturer partners, we're working through this challenging environment or keeping their teams date.
And steel manufacturing incredible progress products for our customers do enjoy it out on the war.
As we've mentioned before new one brand represents more than 11% of our revenue. However in many cases, we represent more than 30% of our brands annual sales.
We are immaterial customers manufactures and as a result.
We work with US together the inventory, we mean in a timely manner.
We were one of the first one through see both once the manufacturers resumed production on the temporary shutdowns at the beginning of the quarter.
And the majority of the bugs that were in coming through our viewership. These days were pre sold.
As a result, our inventory is lower than it normally would be at this point in the boating season. However.
Levels remain sufficient as we finished the summer selling season.
This reduction in inventory carrying costs and floor plan interest over the next several months.
Generate additional savings for the business ultimately driving margin expansion in fiscal year 2021.
Looking ahead, we are laser focused on the continued development of our high margin businesses.
Which have proven to be effective in generate income during times of uncertainty.
While our parts and accessory and repair and maintenance service business experienced more moderate growth during the fiscal third quarter due to shelter in place restrictions and increased sales volume.
We are preparing for an increase in our service activity in fiscal 2021.
As part of our efforts to expand our high margin business. We are in the process of opening two new location that will be services only.
We have added a service location NIM in the Atlanta area, and our restructuring service operations in Alabama to establish a second location for retail service, we expect to see the changes and additions we are making now drive our higher margin business in the month in years to come.
We also remain committed through expanding finance and insurance and there are several opportunities to grow this business, even further including increasing our penetration rate and the number of products that are available to customers.
As part of our broader sales process, we're always looking for new ways to improve operation at both our core store and newly acquired stores and our team made great strides this quarter.
Our flexible and resilient business model and technology has enabled our team actively pursue new business opportunities continue providing our customers with everything they need.
While a lot of uncertainty remains about what the coming months may look like our size technology and team have us well positioned to continue to outperform the industry and our competitor.
Growing our same store sales of expanding market share and with that I'll turn the call over to Jack to discuss the financials in more detail.
Thanks, Anthony we delivered tremendous results in the third quarter with total revenue increasing 49% to 408.3 million in 2020 from 274.8 million in 2018 same store sales increase a record 44% primarily driven by an increase in the men.
Those units sold.
Throughout the entire third quarter, we saw the pace of sales increase and the demand for new and pre owned boats rise as consumers look for ways to get outside and spend time with their friends and family, while maintaining safe social distances.
We did not see the reduced consumer demand, which typically occurs in a weaker macroeconomic environment and new boat sales grew at 58.8% to 287 million in the fiscal third quarter 2020 from $180.7 million and the prior year and pre owned boat sales increase.
29.9% to 85.9 million from 66.1.
Focusing on growing all aspects of the business has helped us to outperform our competitors and gain market share and what has been an unprecedented operating environment.
We grew financed insurance revenue by 66.3% to 16.6 million in our fiscal third quarter 2020 revenue from parts service and other sales increased 4% to 18.7 million compared to the prior year those impacted by store closures, which prevented us from being able to execute.
On certain retail parts and service sales.
Gross profit increased 50.9% to 94.7 million in the third quarter compared to 62.7 million in the prior year driven by the increase in new and pre owned unit sale and higher finance and insurance revenue.
Gross profit as a percentage of sales increased 40 basis points to 23.2% compared to 22.8% in the prior year.
While selling general and administrative expenses increased to 43.2 billion from 34.7 million SGN, a as a percentage of sales declined to 10.6% from 12.6% in the prior year.
The decline in as soon as a percentage of sales, let's see to the increase in the sales volume and the crop cost reduction actions enacted in response to cause a 19 at the end of March this year.
Operating income increased 88.2% to 50.7 million compared to 26.9 million in the prior year.
Driven by increased bed sale and lower transaction Paul.
Adjusted EBITDA rose, 94.7% to 49.2 million compared to 25.3 million in the prior year.
Net income totaled 40.6 million in the third quarter up 24.3% from $32.7 million in the prior year. The increase is primarily due to the growth in sales, partially offset by higher interest expense in income taxes in the current year.
It's important to note that the prior year contain income related to a noncash change in fair value of a warm for 10.4 million.
Excluding the income related to the noncash change in fair value from the prior year, resulting net income being all 82.1% year over year.
Now turning to the balance sheet and as of June Thirtyth 2020, we had 88.0 million, a cash and $10 million availability under our revolving line of credit.
Total inventory at June Thirtyth, 2020 was 171.3 million compared to 259.3 million at June Thirtyth 2019.
This substantial decrease is primarily due to current sales demand for new and pre owned units and manufacturing shutdowns related to covert 19 seen at the beginning of the quarter.
Our strong and diverse manufacturer partnership tech well have us well position to continue building inventory to meet current demand, but we believe our carrying cost will be significant lower this winter, which should lead to meaningful savings for the business.
As previously announced on July 22nd we successfully refinanced our long term debt. The new credit facility consists of an 80 million dollar term loan with a $30 million undrawn revolver and replaces our former $110 million facility with Goldman Sachs specialty lending.
Which included a $10 million Undrawn revolver.
The credit facility has a five year term and provides us with $15 million accordion feature to expand the line.
The initial interest rate.
On the alone is LIBOR based with a 75 basis 0.4, plus a sliding scale or two to 300 basis points.
Based on our net leverage ratio.
At closing the initial rate on the facility is 3%.
The new credit facility offers more flexible covenant and terms and is currently projected to deliver annual savings more than $6 million in fiscal year 2021.
This refinancing strengthens our balance sheet and provides additional liquidity enhances our financial flexibility and will support the continued execution of our long term growth strategy as we pursue strategic acquisitions.
And expand our geographic footprint into regions with strong voting markets.
In light of the uncertainty that exists around pivot 19 pandemic on March 26, we would through our fiscal year 2020 guidance that was previously provided.
As it turns out 2020 is shaping up to be another record year. We are encouraged to see sales trends continuing in July.
And the fourth quarter is off to a great start.
Despite being up against a strong 20% comparable sales figure in the prior year. We believe we are on track toward a similar same store sales figure for the fourth quarter fiscal 2020.
With that said there are many unknowns that remain including the macroeconomic environment, how cousin 19 pandemic will impact back to school.
And if any shelter in place orders will be issued.
We are offering no additional guidance at this time, but expect to provide more insight into our fiscal year 2021 on our fourth quarter and year end earnings call. This later this year.
This concludes our permit prepared remarks, operator will you. Please open the line professions.
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Our first question cousin, Joe Altobello with Raymond James Your line is now open.
Great. Thanks, guys good morning.
First question, Jeff If you wanted to clarify something he just said about July being off to a good start for Q4 off the that start.
That you expect a similar I think it today.
Similar comp is for Q of last year that is that what you said.
Yes, that's correct. So you know something in the high teens I think like last year, we were.
19, I, just shy of 20% for the quarter.
Something in that that high teens.
Perfect. Thank you and then secondly, obviously, we're seeing a lot of new boaters into the space and I'm sure you guys are benefiting from that as well I'm. Just curious how you think about that is there some.
Perhaps some pull forward from from next year.
The new both buyers and maybe what are you doing differently to make sure that those new boat or stay engaged in that category.
Well, Joe I think that's that's it won't be and Anthony can kinda tag team that when the I'll start off by saying you know I think at the beginning went out when we really started to see this ramp up in early April home as April went on we thought we might be pulling some business for but as it's continued to trend in the same way well really.
No. That's that's the case I think what we're seeing in a couple of different things, you're seeing past voters that aren't voters any more getting rejuvenating because it's an activity at leisure recreational activity that they can jump into that they've known from the past and and and they like it and then you do have that new brand new.
I would owner that is discovered this as a you know an outlet.
For the current can environment. We're in so we kind of look at it did if if we perform the way we're supposed to and deliver that experience. We're able now to create lifelong voters I think when you looked at it from the past when you had people that would jump in to the industry jump out I think a lot of that.
That was.
A lot of that happened because the experience of the consumer was not at the level, but it is not only with one water, but just at the industry as a whole today I think you know your premier dealers. The once we're looking at for acquisitions, you know our competitor Marine Max.
Yes, some of the Premier dealers are delivering a boating experience should captivate these guys into into something that makes it pleasurable and something they won't want to get out of them, we should be able to grow a lot new long term.
Ladies first time buyers into long time boating fuzziness.
It's kind of what I think I I don't think that we pulled business forward from next year.
You know I just I think it's just a trend that is that it's going to keep driving people to it because of the reasons.
The environment is presented to US Anthony you got when I add to that.
Yeah, I mean, a little bit Austin.
Two years ago. Some of these people are coming back into voting, Joe I mean like when I started in the boat business you know each year the manufacturer would come out with their new boat and it was just a different color. It wasn't anything new in the brands that we are aligned with currently today every year that are coming out with either its technologies is on.
And lay out there coming out with Oh My gosh.
Both so these voters that are coming back into voting that number one there while by whom I Gotta go far this has changed since I've been listening to past and were so blessed to be with these current manufacturers and brands that.
I think they're going to see them stay in boating because of the new models. The continue to come out as much more than just a killer change if you will that make sense.
No it's.
I was just curious.
The way that you guys do business meeting in the past that may have been a more transactional relationship between yourselves and the boat buyer.
But if you have a lot of new boat buyers or new voters in general does that mean, there's more engagement between you and that buyer.
Oh, absolutely no.
Well, you voter where there's more engagement yes.
You know the people that used to be in voting that is the lions share of these people that are buying no. These people.
We expect you know.
A great experience nothing thats, where we showing.
All over source is the experience that we give these voters to want to stay in boating because of the in the past and they were in building new there were dealing with other dealers or other things that.
Didnt have things in place to actually keep them in boating.
I I want to add to that real quick Joe you know I take a little bit is of that as our sales process and maybe a little bit of our secret sauce on buying to boats and emotional purchase it's not like buying a car you have to have a car to go get food and and go to work and and take kids to school Bona Vita boats into most.
Optional you know and emotional purchase we really work on that that part of the business of having our sales guys in the process that Anthony's put in place the creates that.
I think that relationship between not only our sales staff that to service that that almost you know is becoming like a friendship instead of a you know a transactional type a experience we wanted to be more of an emotional friendship type deal versus the dead. The away I think it used to be.
Got it okay. Thank you guys appreciate it.
Thank you and as a reminder to ask the question you will need to press Star then one on your touched on telephone to withdraw your question from the Q. Please press the pound King.
A question comes from Swartz with Suntrust. Your line now open.
Hey, good morning, guys.
One of my Justin just maybe starting off on the inventory environment a lot of what we hear out there is.
Things are very tight you made comments said, obviously you have lower carrying costs going through the fall in the winter.
Given what's going on but is there any reason to suspect that you know what we're seeing could actually start to limit or present, some some somewhat of a a headwind to sales until the end inventory environment the availability that Bruce.
Your next Gen No no I mean it.
Yeah go ahead Anthony.
Not really because you remember if you look at our business model. This this time, but you know our inventory start to rise in pretty heavily.
Traditionally in September the.
Peaks around March or April.
Just steadily drops all the way through September. So you know because there was the best time for this to happen. If it had up it was the best time. That's you know as our sales started running the orange or our first quarter, which is.
So that's.
As for.
Yes. So that's that's the comment of having less Korean costs, because we're not gonna have as you know you know extra lots with both stored and so and so forth ready for the season. So no way we've got to timed and we went ahead of the service you will dealing with their manufacturers and and making sure.
We have the right amount.
Amount of inventory coming up.
So I don't know idle.
I'd also add to that right. We you know we carry a lot of different brands at a lot of different locations and so we have with our inventory management tools, we have a lot of good visibility.
Salesperson in one location can pull up a particular model at all of our locations. A you know what that went down a touch of a button as well as you know present that boat to a customer you know right on the spot and so that helps facilitate transactions when the boats not physically there.
You know and then secondly, you know we are have a good pipeline and order volume going into our manufacturers and very good visibility of whats coming out of our manufacturers and so our ability to sell sell a boat that's going to.
Land at the store on.
July 30 effort and give us a couple of days, it's a preference and turn it around at the customer can take it you know August onest.
Okay. That's that's helpful and and just stick commentary around M&A, maybe it's just me, but the vis vis the language sounded a little different in terms I think the last time, we talk to you said you'd kind of be holding off one on M&A until fiscal year 21, now it sounds like it's more imminent so I guess it.
Am I am I reading that correctly, and then second it given everything that's happened in the industry over the past three to four months.
Is there any change in the way you look at acquisition targets just in the aftermath of coven.
So to answer answer the first piece of it you know we did.
Kind of a signal that we were slowing down and it's mainly like Jack mentioned in the earlier comments. It was really just so that we made sure that we were evaluating our target EBITDA in the impact of cobot to that EBITDA, because we didn't know if the negative and then once we kind of figured out that we had some tailwinds and into people. We were looking at had the same tail.
Then we had to make sure that they were going to be able to get inventory to support these tailwinds and we kind of cross got both of those boxes chat and so about the only thing that we've done in changing in the way we look at stuff that we're probably moving a little bit more towards a certain percentage of the purchase price being an.
Earn out just to make sure that we protect ourselves if there was a little pull forward or if we were to have you know another flare up of discovered stuff that did impact that it differently you know through the winter or into the next spring.
I think that answered the first from what was the second question again.
No that was just wondering if you look at the target different differently. So maybe that but that's the antigens in terms of how you get a purchase.
Yeah, I don't think we're looking at them any differently I think we're just looking at a little bit too a little bit of a small tweaks to the to the structure.
Okay No. That's that's helpful.
I don't know question, maybe for Jack just in terms of the the service the parts the repair business, which obviously was was impacted.
By store closures during the quarter any sense of what the pipeline looks like there for sure.
They maybe worked at that couldn't have been completed during the quarter that maybe you'll get to in the current quarter or beyond.
Yeah, I wouldn't say, we are we really don't have a great no sense of exactly what those dollars are I mean, certainly and again, we've had conversations with customers who are.
You know maybe delaying repairing some fiberglass work or something like that until later in the year after the season.
But we certainly we certainly believe as as a more votes get into the market. Then obviously, there's going to be more boats. The service and you know we that's part of.
You know and Anthony's remarks, where he made the comment about you know some standalone service only facilities that were in the process. The opening up it's partly to capture that demand demand not only for for our customers, but other customers that are you know you need a need an oil change either maintenance need a win.
In relation.
Variously bearing level of service, but then also take some burden off our existing stores to help them continue to grow and expand on the retail sale side.
And that let me add one thing to two Mike might what Jack was just saying and the reason that Anthony kind of has been pushing for this is it's not just us. It's other dealers you know so if you have a dealer thats been running you know a mom and pop it's a competitor in the same market were end that's a great dealership they've got great service, but they are they've always been kind of maxed out.
Out on the service side that you know they've done all they could just service what they were selling new in their past customers and then they end up having a 10 15 2025, 30% also had an increase that's just going to flood the market and we think theres huge upside in this running into to next season to next fall into the spring.
You get 2022, where there's going to be so much demand for service not just from the extra boats, we've been selling but from the extra boats that are just entering the total amount of the market the of the increased.
So I think that we have some good tailwinds on the service.
Okay, great. Thanks, guys.
Thank you. Our next question comes and Craig Kennison with Baird. Your line is now open.
Hey, guys. Thanks for taking my questions I apologize I hopped on late here. So I wanted to ask about two things one just.
Did you commented on the retail technologies that you've invested in driving some of your.
Seeming outperformance in the quarter and then second what are you doing.
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I guess a.
Take advantage of all these first time customers and make sure that their lifelong voters apology, if if youve been asked this question.
Sure the early last looked at us.
Yeah, I mean, let me I'm, a little I want you to talk about that but I think theres a lot of technology that we put in place and I'm a linear cover that that it's it's kind of comical that we had this technology that we've been working on.
That we that we launched in March one that had we had no idea how impactful it was going to beat the company when cobot hit.
It wasn't something that we thought about once coven was here. It was something we've been working on for about a year now and Anthony got launched in March which was just perfect timing, but once you cover some of the stuff. The Anthony you know digit this just our heart teams equal to process.
Though that we receive we're mining for leads in different ways affirmative or talk about but oh, we're able to wherever or staff is whether their own vacation there at home during the grocery store wherever they have access on their phones.
To do.
Almost a complete Brookfield, besides like the money and you.
The real time quotes of example would be and you know a both its in Texas and the somebody's Atlanta that could be at home at Nike in such a couple buttons and they have access to that inventory.
Full pictures and so closer are being done instantly, where it's usually a process you have to.
To get to that other locations or were able to the share that inventory. So even though we do own or we do represent 73 different brands. So have a no.
Parts of the country that middle the same brand. So we will show that inventory in real time.
Hey, well one of the thing that when.
Well.
I'm wondering if it need to cover real quick is I mean, given general sense of how many it I mean, where our lead generation has you know how much it's up this year and how that you know I don't think we want to get into particulate, but how our system allows for super efficient fast follow up sourcing and for.
For us to monitor that stuff and I want to digital platform in so that we know that we're maximizing from an efficiency.
Standpoint of making sure. We're the first people in front of every customer who sends lenient.
Sure I mean, it just just with the technology, how it comes in and we're fortunate enough to to have this.
Serum built for all of our men manufacturer leads or every boat trader leads all of our web sites are monitored.
With the real real time people to talk to you know we've also installed in some parts of the country a BDC center to ensure that customers are or talk to you know doing business hours or our goal is less than 30 minutes and unfortunately in our industry. If you were to put a leading to a someone's.
Website, you may get something back at it there so.
So what we're communicating with people in less than 30 minutes dorner business to.
What did the leading freaks Anthony what we didn't we think about earlier 500 person.
I did on the call huh.
Oh, you hit or it's about 500%.
But we would not have some of the tools in place that we have today or you know somebody comes on our website.
We were able to start talking with them before they actually put their information and then.
Turning that into a relieved that is then followed up within 30 minutes during business hours.
Yeah. It's also important to note right I mean this with this technology and if you think back through the quarter.
End of March 1st of April I mean, we were sheltering places people we were we were.
Having partial store closures and so you know the sales staff was were displaced from their typical office and being asked to work from home out on the Lake.
At a customer's house and all this technology enabled them to do so and just a tremendous way I definitely see that as a significant competitive advantage and certainly.
Health and impacted our results during the quarter.
And maybe.
If I could as a follow up with respect to your consolidation strategy. One element of your synergy would come from the F., an eye Department, where you have advantages versus maybe a target I'm wondering to what extent you think this CRM lead generation tool is another form of synergy in the sense that you think it.
Might be a tool to drive better sales than a tough target might be able to achieve without you.
No question no question that it will deliver better sales.
I mean, we're talking to some phenomenal dealers that are in like in that are doing great. I mean, there there the one or two in their market. They carry great brands. They are in great boating market and they have one guy with one pricing.
They do everything on legal Pat you sticky notes.
Absolutely. This technology will will drop own additional sales in revenue to any acquisition that we did.
Perfect. Okay. Thank you so much.
Thank you.
Thank you and at that time Im showing no further questions in the queue I'd like to turn the call back units are often singleton for any closing them.
Well, we just want to thank everybody for jumping on the call and we appreciate your interest in one water and this concludes call. Thanks.
Ladies and gentlemen, thank for your participation on today's conference. This does conclude your program and you may now disconnect.
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