MPX - Earnings call transcript Q3 2017 | Marine Products Corporation

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Operator

Good morning, and thank you for joining us for Marine Products Corporation's Third Quarter 2017 Financial Earnings Conference Call. Today's call will be hosted by Rick Hubbell, President and CEO; and Ben Palmer, Chief Financial Officer. Also present is Jim Landers, Vice President of Corporate Finance. At this time, all participants are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session, instructions will be provided at that time for you to queue up for questions. advise this to recorded. is like would everyone conference that being I will reading by us forward-looking Jim started the get disclaimer.

Jim Landers

Good morning.

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

All are available at of on which our site Web www.marineproductscorp.com.

not visit have for again you copies. received Web www.marineproductscorp.com If our press please at our releases, site

We will questions. then your and make quarter a comments the be for about we’ll available few

turn the over I’ll President call and our Now, Hubbell. to CEO, Rick

Rick Hubbell

issued quarter operational earnings the this moment. Palmer, our for time, results the Ben morning. a will We of our this CFO more briefly release third highlights. will our discuss At I in financial press you, Thank in XXXX detail Jim. discuss

by increased our Chaparral quarter. mix boats of sales sales an Net and which Series. included net model to due X.X% Surf improved Our increased larger sales the during

We the be pleased of share of product to categories. market our continue all with

approximately the months to Our product drive continued its to the same the ending for XX.X% for market Chaparral's share year. in hold category, June XX, stern compared XX% XX highest XXXX last period

continues Robalo’s Number sport X share the ranked Chaparral category. the in outboard the grow position is Our market to hold fishing XX foot line Number continues in boat Vortex XX jet as X to category. now to it

that a XXX,XXX common third I to of Also declared will Ben turn our $X.XX our over Directors quarter $X.XX per the CFO, With dividend share. a now overview, stock open quarterly this we special announced We of Palmer. morning yesterday that of market. the of repurchased dividend also per it from shares share, plus during regular Board

Ben Palmer

you, Thank Rick.

compared of million, to the third of XXXX, For quarter reported net $X.X XX, increase of the quarter in we an income XXXX. X.X% $X.X ended September million

increase primarily of share in diluted offer to diluted for Our $X.XX due per approximately our to quarter. per EPS share XXXX. contributed earnings compared $X.XX share this $X.XX were $X.XX, year A count to lower our tender diluted an last completed earnings the quarter of

quarter For increase adjustments also. to third Net per third compared of million, quarter XXXX, the about of $XX.X quarter $X.XX X.X% an tax of for contributed XXXX income sales were the share of 'XX. third the

Selling, quarter were quarter of third prior net X.X% compared increasing were year. of the general the third were $XXX,XXX and million sales the the quarter sales compared during to third 'XX. of strong, net the 'XX in comparable of net Gross the million, an quarter a Gross of prices compared to during of was For the increased 'XX. compared average selling XX.X% profit quarter, mix. of due the year. to the sales year, quarter improved to third X.X% quarter third the favorable last last higher were sales U.S. of of XX.X% quarter approximately sales to year. average XX.X% third $X.X third compared in to margin increase to our but due third increase expenses unit quarter SG&A prices quarter the by during an in third XX.X%, to administrative prior quarter selling the of XX.X% the to of domestic in expenses 'XX, $XX.X

of third the only this sales sales XX%, of X.X% quarter However, of to compared during third the a year, quarter total decreased international during X.X% and represented sales XXXX. by total of decrease

during to third last the principally fund to of decrease $XX $XX.X million to completed million and end due quarter third Our the to 'XX of year. the marketable of quarter the decreased was offer balance end cash fourth last due $XX.X million third quarter of at the was required during the marketable securities in million the of third at our compared tender year. last a third the Interest $X.XXX $X. million of securities This lower quarter during quarter was year. the was to last $XXX,XXX provision income quarter to the tax to XXX compared year. third compared quarter balance. in This $XX,XXX income of Marine Product's

I tax of tax in quarter beneficial Last that planning rate XX.X% Our fourth EPS for XX%. increased year's effective our tax be project referred quarter effective to included the strategies quarter this We that the year's was by the approximately earlier. the of third last which impact to last of $X.XX rate quarter compared will year. XXXX third third in results only XX.X% year, of

higher I'll to second few sell than it was were September at the end of than XXXX prepare of With of as that, turn of as the backlog quarter over dealers dealers comments. models. the end the accept to Rick a second lower our As closing for inventory XX, retail to back our through continue Order end season. XXXX, at selling inventories the the quarter dealer

Rick Hubbell

quarter Robalo and the during the specialized results. In stern sales quarter. by market fishing Thanks, The boating ahead the the we boats and drive Chaparral Ben. retail continues financial boat our sport to be models Irma, impacted Hurricane strong positively of look negatively continued drive to spite XXXX. season wide industry our third as approximately our continue selling sales, end to recreational weakness third X% in

Our the made delayed were quarter. early in fourth quarter shipments third

also to In landfall. hurricane the the our addition the sales, annual on that conference in impacting to Keys our take which place made weekend scheduled dealer was the delayed hurricane

year to plant. we going in this are a our manufacturing smaller have to dealer meeting So November close

to to models XXXX for network few joining a morning. dealer to We like happy in are questions excited any this thank have. our forward And we'd take us I’d may be weeks. our you introducing to and look you them about

Operator

first Eric Thank you. [Operator B. Instructions] Riley. We will go Wold to with

Eric Wold

good and you morning. Thank

Rick Hubbell

Eric. Hi,

Eric Wold

maybe do And kind the of in Couple immediate you pressures I you sense environment on boat us pricing of, there noted of quick competition various can shipments the impact in think or you if up the consumers one, terms the competitive of etcetera. out in that in the be been questions. you’re give willingness impact negatively your of year hurricane quarters terms delayed could there and a give of replace the demand etcetera? sense the to made maybe few of quarter maybe guess, over from is seeing what us QX, within next segments then have purchase, positively, a

Jim Landers

of are price now. environment saying, Eric, real this strong. in competitive Demand operating not we right without for our a boats competition Well, is Jim. that business goes but feature a are is

market So, with working trying we’re niches. to find the right our dealers,

kind we are. we’ve that where products Ben mentioned, some and people Rick and As got that’s are demanding of

is the there to say dynamic beyond competitive not much and else that. it's So

of On in, sales, sales seen hurricane environments in in about we the for additional example. and the idea hurricanes not spring whole sales lot have a pick up retail following coming past,

You we and the -- are sales any I lost of right we aware retail the discussed just I that have indication mean, upcoming people in planning just we now. best the that’s boats, for higher because or selling at last month not conference and retail season,

Ben Palmer

Yes. This is Ben.

I think that’s right.

things people another the defer go boat and their another all want being boats I lost out or their purchase. they were to side may want difficulty] and be they to [technical they them. and people to may positive think I Other hopefully replace exposed guess, I storm will insured say, tragedy, on don’t equal, so

be. not would positive, what we’d So Certainly, into coming hope that we’re that but unclear year. ramping building plans up the will it be our net-net, for impact necessarily operational the it's or

Eric Wold

Thank you. helpful. That’s

Ben Palmer

Sure.

Operator

[Operator Instructions] that today’s And presentation. concludes

We two be at hours. a www.marineproductscorp.com As thank you the within for reminder, available next today’s participation. call replay for your will

You may now disconnect.

Marine Products (MPX) 25 Oct 172017 Q3 Earnings call transcript