Marine Products (MPX) 26 Oct 222022 Q3 Earnings call transcript

Good morning, and thank you for joining us for Marine Product Corporation's Third Quarter 2022 Financial Earnings Conference Call. Today's call will be hosted by Ben Palmer, President and CEO; and Mike Schmit, Chief Financial Officer. Also hosting is Jim Landers, Vice President of Corporate Services. At this time, all participants are in a listen-only mode.

Following the presentation we will conduct a question-and-answer session. like recorded. everyone would call this I being is Instructions] to that advise conference [Operator get started will Jim us forward-looking disclaimer. by reading the

morning Good you. thank and

everyone of statements get some forward-looking this in we started risks, reflect I'd are unknown be to Before a and number today, call other our our may of XXXX today, and we'll that remind the on I'd nature make known risks. on like SEC that at release filings press marineproductscorp.com. like which to refer issued all outline website our those XX-K available you that and of to Form

measure you’ve today's operating this use measure press earnings to If will various performance. release, because In conference non-GAAP us our to regard without it and over our changes non-GAAP call, structure. consistently we website. in which our compare capital of received release periods EBITDA, performance refer We please not to allows visit a is

a turn our review this Our press is available Please GAAP measure. release you're contain income, in financial net measure the your issued about this this be and few seeing questions. nearest which We'll disclosure this comments and it's and to then I Palmer. how a quarter our over calculated. website make financial to the non-GAAP will reconciliation interested morning President Ben if of call for CEO,

you thank and all for joining thanks this Jim, call our morning.

volume prices quarter third orders XX%, remains increased prices This the in of strong coupled sorry, recorded our this well meet compared net due average in we year highlights I'm net selling firm to levels quarter this sales materials release mix, record few best we quarter same The demand. dealers boats the efforts me earnings as third components. quarter third regarding we a with lows. Marine sales backlog during continue by was to third as indications our morning. the was as from improvement quarter. quarter sales begin instituted selling primarily quarterly a XXXX. the was with Corporation Let of issued that recorded XXXX the of historic during purchase the price and at – cover quarterly Products for press levels as The higher inventory model other Dealer costs unit essentially increases as extraordinary of prior favorable remain to to exercise to our third high average

increase We regular our share. Board call in that per an this also our of immediate and turn shareholders and financial overview, declared tangible of means like Directors I'd $X.XX Schmit, Mike to over This that our our represents of XX% morning the investment confidence announced community. to with With cash expresses an dividend the increased quarterly to CFO. our success business sharing

an begin third sales the I'll the $XXX.X of quarter were the third of third financial to Ben. million, with quarter for record XX% Thanks, increase company's XXXX a year. overview results. last quarter Net a

and sales XX%, increased during third selling relatively a same in to also administrative a general year. quarter years, expenses of the last to mix. was were favorable million, quarter earnings in price of a $X.X compared a income higher the profitability quarter incentive an of year. of year. The of the year. quarter $XX increase, Gross to sales quarterly commissions, last and margin last share a expenses primarily of $X.X margin XX%, was were last of favorable compared quarter, a to and quarter increases XX% increased in million, record, quarter in vary increases third sales that as the and increase of net third to $XX.X to XX% average were per increase, Ben quarter compared million, to also As third in the in costs the last $X.XX, to million quarter to costs increase units number as third of third higher compared to mix. the We a mentioned, third or improved, percentage Gross net were the quarterly Selling, XX% $X.X the year. model last These expenses. were both XX% XXXX. profit quarter quarter $XX.X response compared of in in in XX%, dollars the of to and third flat with and the accessories boats net in the total Gross $XX.X third sales reported compensation, year. quarter a of during XXXX. was to of supplier such due quarter Diluted the due third million, compared by price EBITDA $X.XX and XX% compared model sales million also sold Parts our increase the million due higher warranty the record

international Our X% compared our for our last among international markets. the quarter by sales sales, increased third evenly to account year. XX%, of distributed which of This sales, approximately total increase was

balance offset impact at by year. supply in in $XX.X cash capital to support year when increase to cash required due continue end $XX.X at partially the a profitability, of requirements end since disruptions the the shipments. last increases and to cash Our was growth million last the during is of increase, quarter working production to time the balance sales chain compared third the The million, of end

Although historically at of quarter were and issues Dealer slightly they of to now to beginning these than lower end the improve at second levels the as mentioned. XXXX. we are are inventories continue low be

indications demand be of continues to high. Our other coupled backlog with [indiscernible]

begins, their we coordinating our in who firm are are from prioritize waiting taken XXXX retail dealer our coming to model months. boats have on the year to they orders As network with new fulfill the production customers

meet products our season new closing dealer retail follows. boat I'll the our demand, over for which to remarks. course, now turn and Ben season, to wants towards retail build selling show look and we showcase Of especially it a back inventory network as the winter also few to

Thanks.

our of employees who result environment. hard the management produce, are work quality dedicated of quarter this deliver products the operating challenging and results record very continue to team a in Our

We our unfailingly successful. strong to strong – network recognize want without who also be dealers ambassadors, serve we as loyal not our and brand of whom could

of successful One towards of consistent directed products. our our is and strengths our portfolio development effort, research improving

the our response during Robalo models, dealers a these Chaparral held a conference received range. to two models them roll-out other stand foot preview Chaparral. out. are dealer Jim XX As August. XXXX is of Both Robalo Landers One and in and we which the is the our ask XX I'll from we highly favorable really in

our more XXX Certainly, size. The using folds line The other a seat] boat boat design very for cockpit many this [aft amount boater XX-foot And when fishing the this than provides you're boats, the it glad has really Ben, back of standard [ph] XXX Robalo for to by her large and offshore to. [ph] increase space console XX-foot fishing powered outboards nice It's Robalos. Robalo larger transom of aft sister high flush like bulkhead comfortable removable to rest. a space coastal fishing. with XXXX seating] occupies unlike for space between a deck twin a a ship. belt center expect The and might [ball

live fiberglass door, large turning Our well, rod a noted on fishing fish a also and side plane Reviewers have boat thus radius. a holders, box, features that has a comes entry very tight quickly hardtop. the and up include far a

raised lineup XXX boat sun other and other can options the rough helmsman including more transom bow by that OSX. air tower] the There bolsters water models, easy aft boat helms a family Chaparral active is have for belt that's the boat this now is would XXXX arch the an and for occupied a lowered so for [ph] Chaparral's and sports a features that the was have passenger and is convert [arch a upholstery. and seat and it's used leave this spaces engine, model an and lounges. ago luxury pump, our that and for raised damage This features at attractive button Chaparral's as line continued which been to soft, be and are comfortable raised padded new many group, XXXX Along The is OSX new our facing seating drier make luxurious tower, family It's lowered. thoughtful XX-foot in to to comfortable stereo, and a clean, riders. doesn't sterndrive of marine building a on designed touch active of envisioned the numerous being an space storage seats resist in seas. silicone Another sport generation scratches. outboard new The with tradition dayboat smallest when the

outboards XX XX, Thank the of had you, share XX-foot the for of XXXX indicate share a Jim. and category market June statistics The the Chaparral XX-foot market ended in that to updated X.X%. combination months Robalo

Our in share Robalo this second this XX.X% joining be share the for the questions XX-foot thank and category, to highest holds market Chaparral which market happy XX-foot a highest that morning and by to itself you held this category. was you we'll us category. of the third to any brand in I'd take sterndrive have. like

Thanks. we morning. We you a appreciate will you. you Thank this and hope and listened day who to We in called have Okay. soon. everybody good talk

company's conference of website today's disconnect. participation, completion marineproductscorp.com you replay will concludes A now may call. the at X and be hours you the today's available on Thank This for your following call.