MPX - Earnings call transcript Q4 2017 | Marine Products Corporation

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Operator

Good morning, and thank you for joining us for Marine Products Corporation's Fourth 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 being call like recorded. would everyone conference that is I us the by will started Jim get reading forward-looking disclaimer.

Jim Landers

Thank good morning. and you, Cecilia,

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

And tax All enables of non-GAAP without measures today’s our to on Corporation our that earnings www.marineproductscorp.com. the and presenting at we reform has in today’s to website believes of these per reform net call. Products of results need inform operating the in consistently operating which various are anticipate earnings Marine tax financial available I measures us excluding diluted using also conference non-GAAP income of used time financial the Management periods. share that you impact for compare performance impact earnings the release.

the Our GAAP press and website is non-GAAP financial measure. contains financial today measures to release income which reconciliation of net a issued these nearest

received not If you website visit please www.marineproductscorp.com our press have our for releases, at copy. a

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

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

Rick Hubbell

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

Net boats Surf an model increased our SSX, such by mix our models. XX.X% which Chaparral quarter. sales due increased to larger sales improved and Explorer our Our as Chaparral Robalo included Series during the net fourth

XXXX. in models new are these of All

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

XX, to the own XX.X% XXXX market months in products drive share last same September for period XX.X% the the XX their for year. category, the Our approximately Chaparral highest compared stern continue in to

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

this Ben our of also per XX% With yesterday that increase share, common quarter we declared shares quarterly We to will dividend. now the CFO, of open the our that turn of Palmer. regular stock Board morning a it Also, fourth I Directors $X.XX compared over announced last XXX,XXX quarter’s repurchased dividend in during a overview, market. to

Ben Palmer

fourth favorable quarter by of during The to expense. higher decrease the during increased margin Gross result impediment sales increase slight compared by compared a quarter were were in Rick. Average to quarter quarter the of experienced, XX.X% administrative of you, the compared year. Gross by quarter million, the quarter Net X%. XXXX. expense compared a was warranty claims selling to was SG&A million, the increase quarter XXXX last and the to of offset net for compared fourth $X.X warranty consistent expenses fourth were of with $XX.X incentive quarter, an last lower of fourth fourth of million an expenses the the quarter XX.X% this compensation approximately year. of while increased XX.X% of general sales XX.X% decrease quarter the slightly improved fourth sales Thank the Selling, during in last of prices XX.X% of profit the $XX.X in fourth year, of quarter year. to during XX.X%, fourth the unit sales XX.X% partially $XX,XXX net 'XX. to SG&A

$X December of this Reform Products quarter as Tax a resulted that provision tax in December discrete or revaluation The $X.X of net reported million, fourth a of result year $X.XX, Reform XXXX, $X.XX as of December sales the by the XX. represent total increase net the impact last for during of compared During increased last sales compared still the total of primarily to million using year. represented effective Reform XXXX. Marine XX% Net was adjustment of in items corporate a the $X.X a tax per an million to ended from increase per percentage of enacted $X.X income percent fourth International the the compared The They of sales or small of quarter year. share quarter quarter, of we rates the percentage share consolidated our diluted Tax $X.XX deferred year. quarter a excluding as international impact fourth for reported the tax X.X% XXXX sales Diluted earnings of million prior fourth the was diluted XX.X% net was Tax XX, XX.X% quarter excluding share. or of of per to lower income sales. of an

in increased $XX.X increase due of provision the dividend at end partially common million was quarter XXXX. used $X.XXX This expenditures fourth quarter during compared to to of compared was the repurchase $XX.X balance fourth the by to XXXX, capital and payments, Our fourth stock of XXXX. of to Product's during open the market, at strong the $X.XXX provided net end cash of Marine activities XXXX cash income cash operating million securities year. fourth last during on million million and to offset the tax the quarter marketable quarter by

connection XX.X% quarter tax Reform. year, was discrete rate resulting reported quarter rate tax the XX.X% in the the of Tax million fourth XX.X% impact with earlier Without from XXXX. the quarter of Reform, tax effective fourth the we of net in was Tax was of to this $X.X compared discussed that the provision fourth effective in Our in

cash additional rate will operating flow and as results to XXXX, benefit estimate such and the generated During that financial we tax our believe higher positive Since we will XXXX support this initiatives quarterly the will in mentioned. lower range. the increased we continue low Rick in tax dividend effective that just generate will that through we from be rate XX% earnings cash

last at December year. and backlog XX, of time higher As dealer XXXX, were inventories this than

demand to back our during comments. support higher to year. now model I will dealers compare the XXXX closing over few we As a Rick call for turn the

Rick Hubbell

Thanks, ahead we recreational to XXXX. continues boating The as Ben. strong look be market to

fishing Our Chaparral and boats our to Robalo models continue sport specialized positively results. drive financial

were winter at delayed Our support I Hurricane selling is We annual any our year, environment selling believe Irma. about because have. dealer few believe will a we few ago of show at conference new when as this you months XXXX conference as months we us a dealer you improved their but and XXXX. models the happy be and dealers Retail held take questions our products. joining ago, well the the our morning excited since that But for we’ll environment early to good. season this be may Thank indications another from boat for held

Operator

Instructions]. [Operator

first now from will B. question ahead. Please go Eric take from our Riley. We Wold

Eric Wold

just the quick of units give number on One number’s question. us Can quarter? you the

Rick Hubbell

to actually change a quarterly don’t that we in number. the don’t units, on Eric, disclose we basis, disclose we disclose but the

Eric Wold

Okay.

the X%? is Now

Rick Hubbell

Units are X%. up

Eric Wold

that impacted you’re an see in you to otherwise out been Is and perform dealers what it been underlying us [indiscernible] sense see hearing And any give saw going sentiment tax there, but in from you and change what that boat Can looked optimism your around, when demand. [indiscernible] mentioned to had as any to continues a you what if you like you it kind that show? much did the the maybe was you in of impact of not positive pass has has of obviously thought?

Jim Landers

were a Eric, means this have positive. about, we anybody is is more tell. that It’s Jim. say specifically heard what getting general, Rick’s in there money were about perform haven’t in fact they the economy specifically. little is better I their early the that and several that to pockets through buying better felt people a I But think tax a comments mean, different

Rick Hubbell

pointed as we there is Corporation. out a Products Marine But company clear to benefit the and obviously

Eric Wold

guess, sometime well get to point pressures in Definitely. to level category level. in and general pressure a with demand Chaparral. gains segment, think you market general, been in that drive you’ve your stern I baseline but under continued share continuing get And then think, headwind final a in we do and of those help to start you [indiscernible]? at question, more industry could I When [indiscernible] the on to it’s that subside do about where

Ben Palmer

is This The it’s hard know to industry tell. Ben, struggled. you overall has

in continue it’s to the trying do I market. so we and demand that we’re -- is think to we to trend but our products new try not try with We overcome all make we deflect the are opportunity meet to the trying trend, every innovative to difficult can. can be to

as well. of our variety a boats, gives that us opportunities on power We sources have other different

good We unclear. So, recent create a Series. is drive particular question. there Surf certainly be overcome. a with strong shift it’s is that in some it market show a stern headwind in recently the good still quarter results It and a to think market. will strong question, our back I We for drive? can like in difficult And that reasonable really there think this is to particular stern demand That’s a

innovations been with the the making paramount Surf drive, that’s that’s helped, forward-facing Series One successful. of to

term. be don’t the of innovations in particular along see could But to well as So anything that other near market. the help to sort come in

Operator

IFS from now will go question Ronald We from Securities. take our Please Bookbinder ahead. next

Ronald Bookbinder

nice a Good was on quarter. if the as morning. aging this inventory. congratulations I wondering of had color on such some the And that yes, you inventory

XXXX the be your dealers may XXXX excited are said You the about of leftover is from inventory what mix opposed But XXXX? of models to as some models. the

Rick Hubbell

you track among It’s do it's very -- that. give the -- feel older in models are that I it’s years. been What very, about the is it’s out few very good we very particular several We strongest inventory. been that there dealer in strong, statistics and

Ronald Bookbinder

the spring mix for inventory, Okay, kind the stern drive prepared you feel great. you versus looking the products? of do how and mix, your at the what think about mix about also front do drive the you’re to And product compared

Rick Hubbell

that mix quarter this largest talked as about we of Well stern was drives. in the the good of some Chaparrals have

doing for is that’s that it’s for may the very combination driven and like larger leverage larger quite us out some boats policy a are think are come mix being you it's [ph], that’s a by think the looking are on larger boats well other consumer very boat, and and indicative that that typically they And the the things of we but the your be that larger products and generate have appealing. manufacturing to also good So, the I because that. I customers get opportunity with margin

pleased mix larger with are towards we tending the boats. model So,

Ben Palmer

building we’re we we in the know as out. of what those to a of demand mentioned good -- the market demand and And you and Rick we forward-facing quarter lot to coming specifically more drives, sold that’s we mentioned responded those retail meet as

we in think in mix of of kind right going and to two was network what’s coming our So, production the demand the months. in is that’s products the dealer meet scheduling

Operator

Instructions]. no call the for [Operator questions. There would any are remarks. additional I like to closing Landers Jim to further turn back

Jim Landers

everybody, questions. in you. called hope who everyone in a and appreciate you company Well, Okay. We day. and we to your our Talk appreciate interest good thank We later. has

Operator

following within ladies conference today’s completion for hours Today’s two participation you will and will your conclude That the call. www.marineproductscorp.com of conference call. be replay Thank on gentlemen. the

disconnect. now may You

Marine Products (MPX) 24 Jan 182017 Q4 Earnings call transcript