# Revenue and profitability
- Q3 2024 revenue: $542.4 million, -8.7% YoY, +11.1% QoQ.
- Gross profit: $132.6 million, -16.8% YoY, +14.8% QoQ; gross margin 24.4%.
- Operating income: $40.0 million, -33.4% YoY, +38.0% QoQ; operating margin 7.37%.
- EBITDA: $47.1 million; EBITDA margin ~8.69%.
- Net income: $14.7 million, -48.6% YoY, +470% QoQ; diluted EPS $0.99; adjusted EPS $1.05.
- SG&A: $87.1 million, 16% of sales; down $6.2% YoY in dollar terms due to cost actions, but fixed rent CPI effects kept SG&A as a percentage of sales elevated by ~40 bps.
- Interest expense: $18.3 million; depreciation & amortization: $5.8 million.
- Tax rate (effective): ~27.5%; net margin: ~2.7%.
# Cash flow and liquidity
- Net Cash Provided by Operating Activities: $93.8 million.
- Free Cash Flow: $86.8 million.
- Cash at end of period: $51.9 million; liquidity >$60 million including revolver availability.
- Net debt: ~$1.016 billion; long-term debt: $547.1 million; short-term debt: $526.4 million.
- Inventory: $598.6 million; weeks on hand ~23 weeks vs industry ~26 weeks (Sequent improvement through the quarter).
# Balance sheet and leverage
- Total assets: $1.6359 billion; total liabilities: $1.2355 billion; stockholders’ equity: $368.6 million.
- Current ratio: 1.29; quick ratio: 0.35; debt-to-capitalization: 0.742; debt ratio: 0.647; interest coverage: 2.19.
- Inventory management reduced inventory by 13% sequentially to $599 million as management positions to de-risk seasonality and prepare for 2025 model year.
# Guidance and outlook
- FY2024 guidance updated: unit sales and same-store sales now expected to be down mid-single digits; adjusted EBITDA guidance narrowed to $90–$100 million; adjusted diluted EPS guidance $1.50–$2.00.
- Management emphasizes control over controllable factors (inventory management, cost discipline) and anticipates tailwinds from 2025 model-year ramp, OEM production increases, potential rate relief, and Texas market recovery.
# Segment and channel dynamics
- New boat margins declined modestly QoQ; premium segments held up better; pre-owned outpaced new boat demand in the quarter.
- Finance & insurance revenue declined 6% but margin as a percentage of sales improved modestly; service and parts remained stable.
- Distribution faced OEM production headwinds but showed “green shoots” in the retail business. Management cited strategic inventory optimization and location-by-location evaluation of makes/models.
Notes: All figures in USD unless stated. Ratios are as reported or calculated from company data. YoY and QoQ changes are from the company’s disclosed metrics or standard line items where provided.