Marine Products (MPX) 26 Jul 232023 Q2 Earnings call transcript

Good morning, and thank you for joining us for Marine Products Corporation's second quarter 2023 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. [Operator Instructions] I would like to advise everyone that this conference call is being recorded. Jim will get us started by reading the forward-looking disclaimer. Please go ahead.

Thank you, and good morning.

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

EBITDA today's of performance website. In our release press to which non-GAAP allows release, our also We please call, capital credit to compare If periods use with refer various and use you've We're facility. changes not we'll our conference report received our is covenants visit a financial operating consistently this earnings to it to revolving compliance EBITDA, under because non-GAAP in regard without structure. measure measure us to over required performance.

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

issued dealers. and deliver ship Products in few inventory was and regarding completed larger to that substantially our for you, morning. Corporation XXXX as morning. joining a press our you number boats begin thank release with highlights Thank second quarter we I were generated second net a Jim, our Marine call will this able earnings to the strong quarter sales during this our them of

costs, prices increases see model chain and delivery to compared Robalo price prior favorable to to due a and components. increased increased in although selling to primarily mix components critical compared materials continue Chaparral including at and timely to remains prior the primarily cover supply challenging. Average improvements year, We of certain periods, our both

building the levels. to inventories quarter to In more shipments begin a their inventory during normalized dealers to toward process. Dealer addition, the return more ordering unit increased are trending allowed our typical

inventory pre-pandemic remains However, below levels.

unit can quarters more of our satisfy to towards demand the dealers inventory. as expect production sell-through begin coming routinely over out demand We trending

this now our $X.XX of regular turn Mike We also announced I Board of overview, declared CFO. quarterly will Schmit, over a call that share. With morning Directors the dividend that per our cash to

Ben. to a the year. second sales Thanks, results. begin increased and the quarter selling compared Net prices increased company's the I'll XXXX by by quarter XX%. XX% of for increase of second million, average XX%, overview $XXX.X were with financial sales last an second quarter Unit

efficiencies the second to ship prior mentioned, quarter Ben second the second million, incentive compensation, The XX.X% was $X.X to from We $XX.X of second quarter in commissions to increase by the the As The compared the $XX.X second improvements were share and $X.XX quarter, were increase higher a net sales million supply typically last million were such second expenses to and second year. of continue compared quarter the favorable due earnings favorable $XX.X increases adjustments. slight quarter quarterly general permanent the for results benefited The an million as $X.X the in second profitability, year. to expenses increase quarter increase of the $XX quarter and the last same XXXX. million quarter second XX% second of XX% million, as sales $XX.X in and a of mix the of last in increase is XX.X% with chain primarily periods. Gross were of Selling, of administrative well second benefits compared gross complete compared last XX% XXXX. Diluted the that demand effective quarter, boats reported quarter compared to to increase the see warranty the to favorable they in as adjustments compared quarter to last due year. as quarter sales over XX% for in profit from the or for year. a sales income dealer we was in driven margin and XX% of our an tax second rate lower quarter expense. EBITDA to net of year discrete million, the of our and net modest second was in in quarter a administrative ability saw quarter improvement as operating $X.XX in these a per were beneficial the XX.X%, the costs and satisfy some mix. Selling, general we to model a of of

increased Our second X% international the the X% quarter sales, compared year. our of last accounted which to for during total quarter second of sales approximately

balance second increase cash Our quarter million first balance the of $XX.X to cash million, end $X.X end a quarter the the was at the this of at the of compared year.

normalized models. The is Our by start dealers be but our pre-pandemic favorable working caused meet moderately than levels. generally result and our purchase but current of improving season by operating profitable capital season the impacted results and weather-related to requirements, expenditures. continued recent inventories XXXX partially to was issues. increasing These towards was selling by boating a inventories reduced are cash spring the to Dealer levels capital lower more higher demand allow offset balance late

possibility headwinds turn it for a concerns but are interest dealers economic optimistic of model rates over and Ben to remarks. slowdown. I'll now closing be Our of back over from continue upcoming confidence regarding an the higher to the potential few resulting from consumer year aware

Thanks, Mike.

based market data, remains #X share report sterndrive statistical on pleased Chaparral market Our its quarter, very reached the strong. category. I latest to survey size that the share this in am

recently They share were we in highest and size introduced with their to us addition, with In third appeal good dealers, quality. our to market our and models. the efficiently to as well customer pleased Robalo's of the outboards XXXX with produce designed allow the them combination retail Chaparral category. Together as held are

aware recreational that are our normalized dealer believe modify the prior adjusting the levels, demand. We we as compared best some of backlogs to consistently healthiest appropriately industry help sales right now. business. to dealer turns inventories and network, and our and year the retail to have dealer necessary We of in experience in balance that with boat some tend production we to And dedicated to are our plan the of retail the boat inventory we

conditions we'll take be next morning, you as any you us and happy this whatever the have. joining We market few questions to thank for to are unfold in prepared months. I'd for like

Jim for [Operator questions call closing at this Instructions] time. like remarks. Landers There are I'd the over no to back transfer to

thank talk and everybody you, soon. called to in you to we listen have and you Thank good who day, hope will this morning. for We a you

call. conference today's concludes This

may You disconnect. now