MPX - Earnings call transcript Q1 2018 | Marine Products Corporation

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Operator

Good morning, everyone. And thank you for joining us for Marine Products Corporation's First Quarter 2018 Financial Earnings Conference Call. Today's call will be hosted by Rick Hubbell, President and CEO; and Ben Palmer, Chief Financial Officer. And also present is Jim Landers, Vice President of Corporate Finance. At this time, all participants are in a listen-only mode. we at a to that for presentation, will session, queue the questions. provided be time following will question-and-answer conduct instructions up And for you being that like conference advise would everyone I call to is recorded. this And now, by forward-looking disclaimer. us reading the will Jim get started Jim?

Jim Landers

Laurie, you, morning. and good Thank

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

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

for not press If received a like release our one, would our you and copy. website please visit

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

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

Rick Hubbell

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

boats price net contributed in by X.X% during larger increased due X.X% the to Our per selling to boat. a sales the mix of quarter. average Net increase model first increased sales which

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

continues category. approximately share stern outboard sport drive market the the for XX.X% XX ranked category, grow market highest XXXX. number months is their Robalo’s now Chaparral Our December in in products continue the as to fishing share three ended XX, it hold to

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

Ben Palmer

compared an Gross of million, to of XXXX. quarter were sales due $X.X decline slightly. for generated year. to 'XX, you, Higher SG&A first first Thank net compared million were were the declined XX.X% XX.X% mix. XX% first that $XX.X of quarter first the quarter due XXXX of expenses during of results, increase prices increase the slight primarily this the an and expenses to of unit improved to vary incentive first increase quarter operating to average Rick. compensation. a to year, compared such improved the of administrative first was quarter quarter first of the the margin ‘XX. in an XXXX. general the as SG&A model to of approximately of previous as of the quarter profit selling X.X% $XX.X sales Gross first quarter XX.X%, quarter Selling, X.X% Net in sales in quarter, increase, compared during first this improved increased the an to expenses million, with slightly compared the

earnings Diluted XX.X% net year, year-over-year discuss sales compared earnings year.’ in by For I of last during tax share increased as lowered ended compared income share the the Sales of sales rate X.X% million. first per we or by sales our year. the markets, XX.X% ‘XX increased of represented including prior $X.XX and improvement was compared $X.X first March $X.XX net income the Canada. Net of to total increased the of per quarter reported to income $X.X in in several to year. net or moment. to corporate quarter will X.X% a of Attributing XX, million this international International quarter last

of last first year. XXX,XXX this the compared compared the of quarter at end the slight $X.X first balance of securities year, to marketable an to Our of million increase XXXX. million increased the cash to of $XX.X increase quarter of And end and a

next Act be periods. tax quarter tax of rate fourth estimate XX% these in The reflect year. last that Our and range. approximately Cut first rate an the be the three of quarter tax a in tax effective Jobs first year. restricted rate in the the of per the significant to earnings We the XX.X%, benefit years Product's compared tax Also quarters during in decrease to because the lower provided primarily The for quarter last the XXXX to this the rate for year, of quarter XX.X% first the effective the during XX declined tax will year. quarter tax during first rate due Marine divested enacted excess XX% to diluted excuse both $X.XX by effective compared tax low of will approximately to effective also the the quarter in for the of share effective effective – and shares quarters Tax of was last first tax first me, months of ’XX rate rate reform increased $X.XX effective

than were As first and end time quarter, the the backlog inventories of this last of higher at dealer XXXX, year. of quarter

demand closing to model the of And we a for turn XXXX now the As compare Rick year. back support our comments. to during dealers with few that, over it higher remainder I’ll

Rick Hubbell

boat continued recreational entered retail overall Ben. weakness be we selling of height Thanks, the season. strong The XXXX In spite the as to sterndrive market. in continues of boating market

have. are be market us for you this share you We to products success appealing developing market Thank and and Robalo’s share that morning and and any pleased we happy we'll with joining questions growth. to Chaparral may continue our be results take drive

Operator

we'll go Thank you. And Riley. first at B. [Operator Wold to Eric Instructions]

Eric Wold

kind has there recovery terms out et what Is the any of data poor so in your sales questions. in mostly that April. there channel guess due weakness dealers March that believe SSi kind we by from been one, you was in heard What weakness? of new registration the for were not of have delivery March some boat if entirely during cetera, impact, I did of during from you far there sales hear Couple weather.

Jim Landers

Jim. Eric, this is

Your dealers. question sell retail from because the that one we're customer the step was to - the the fact away we from

aware we we – really impact. dealers and of that haven't we SSi our of a to southeast are about the - it to that - data, be non-event Florida. I in comment negative the really a given got mean, us. we've bit So impact, big seems a seen large but We an retail in that, presence a

perspective our just it. So on

Eric Wold

thoughts but around else offset lastly everything And ability have there cost, I costs, proposed on level on helpful. That's update if on tariffs going then costs those tariff any to Okay. your pressure? and commodity any be us just – to your forward the some and costs, general in could commodity on fiberglass, is guess obviously what going

Ben Palmer

the overall are cost This is terms Ben. of some commodity upward market, prices there, of on indication some Eric, In commodities. pressure they in

tariffs, to You we're guess but to know, we've not that. with point, this that respect looking manage too a seen I fluid. question, very but yet good is that at very it's

there's You of know particular regard. there's in in been - anything not that's that out a necessarily lot come talk been

impacted, question they're or point Our can talk point planning concern but respond nothing suppliers hopeful Obviously don't it. is But but impacts. be Japanese more I just they think working at do our a engine rather this and largest suppliers, obviously through our directly, happens, this everybody, relevant they obviously posturing of have but that rhetoric so hopefully for that point. them and is we'll won't knows, one this supplier at are myself whatever it, and to than to who potential we through actual it's there really to at

Eric Wold

guys. you, Thank Perfect.

Ben Palmer

Thank you.

Rick Hubbell

Thanks.

Operator

And go at we'll Securities. next Ronald to Bookbinder IFS

Ronald Bookbinder

Good morning a on to fiscal congratulations and nice ‘XX. start

Rick Hubbell

Thank you.

Ronald Bookbinder

or you think you growth do to the Why boats some of color? market, slightly. just is that price decreased you're sales moving it is, overall unit add boating the Your given that higher could

Jim Landers

Jim. is this Ron,

a best answer to the big is. our that overall. has sterndrive retail retail, But and sales - is historically I think I That's continue - sterndrive historically a decline. have this to the best sales part of sales, think that But sales will we've be weak still if market probably continue I may not. handy see I mean and or yeah, I been

other a with products niches. then for just while sterndrive market the sterndrive weakness it's some weakness. that different course, so think fighting of been and things, in we've And Robalo with So that I

Ben Palmer

definition size add, net-net has more of - some on you think its and that on by unit and to of shipping the so. well. I our the fewer a equal where where moving timing helping we can I’ll That's to we for go slight But All bigger occurred basis margins. to obviously make take and margin go that I up dealers shipments we things prefer is a is had think the where I’ll if slight is for the have of Ben, that a and want we overall the sales We're in be. our demand to where know, best also this hoped. is that we increase and certainly probably boats will as ourselves going timing means as being

flattish decline. think the I focusing of it to So is unit order more better then on probably a a look at way

the flattish then pointed think more we've in down. that out probably So I but release, is

Ronald Bookbinder

And lot boats. to priced the obviously XX%, that higher the a inventory increased of due is

are the an increase between inventory say last the basis year's boats? and balance top it aging much. as on And the older how nearly a It on of you with So is your But wasn't increase. unit was inventory. of and comfortable newer

Ben Palmer

that's inventory with our different alluded new there a couple And sheet, difference shipped on that comfortable that I very as Obviously were okay. terms is with have you sitting the boats. balance of of shipments the that. timing on ways, hadn't in answer yet, I'll been what inventory all some very, that's brand of in to

the So what's what's big on of to sheet. part the - a that's increase of balance part contributing

sheet, year-over-year. are are with to up actually comfortable our only inventory not levels inventories we're on with dealer Now slightly balance respect very that. Those which

the that's boats are really to are of we ‘XX of customer. them through model aging That So those - a they year than And boats good there majority current terms are thing. that few seven the are and very earlier boat. year good retail of a - means sales year model have model in

with the very, comfortable very at So also we're dealer inventory. the level

Ronald Bookbinder

lower you experienced Okay. expense QX? did into And in that that QX the warranty continue

Ben Palmer

are one seeing things pleased But is works warranty know, a had warrantees itself of reserving which the at level We be we're on longer to warranty time. for are trends periods comfortable we where we're is this that the it But reasonable. positive that Yes, still of we're we side, and and stable always better. with - at want those which point. over of out comfortable it you

Ronald Bookbinder

presenting And guys the are Conference Okay. Friday? to going Burkenroad lastly, at be you on

Rick Hubbell

are Yes, Are Ron. you coming? we

Ronald Bookbinder

see there. I'll you Yes.

year. start Okay, a Congratulations great great. to on the

Rick Hubbell

very much. you Thank

Ben Palmer

Thank sir. you,

Operator

[Operator Instructions] you, turn time. sir. over Mr. Landers, no additional this And it at to questions have back looks like I'll we things

Jim Landers

for and questions. a good in Okay. everybody Everybody you Laurie, the thanks you thank listened to and to who soon. day. Talk have

Operator

on and today's today's for a conference. And will conclude thank joining for gentlemen And us thank joining reminder within completion hours everyone does to once conference today. again the be that replayed ladies us www.marineproductscorp.com that today's of I'd just again like two following Once conference. you today.

Marine Products (MPX) 25 Apr 182018 Q1 Earnings call transcript