MPX - Earnings call transcript Q4 2018 | Marine Products Corporation

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Operator

Good morning and thank you for joining us for Marine Products Corporation's Fourth Quarter 2018 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 listen-only mode.

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

Jim Landers

Good morning, you. and thank

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

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

website our share non-GAAP and a diluted financial Our which GAAP measures. issued today earnings are to net press release and reconciliation these per measures of contains financial income the nearest

press our website our visit not again for please have release, a www.marineproducts.com you copy. received If at

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

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

Rick Hubbell

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

quarter. decreased per average offset sold decreased increase sales net to during a decrease XX.X% units by boat. X.X% the selling Net due price firstly an in the fourth XX.X% Our sales by in

- year to the the declined tariffs unit markets for sales of to was cost international sales concentrated Our prior compared in orders. impacted

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

Our for now highest ending outboard the the hold three Chaparral Robalo's is category. sport share in share approximately months XX.X% category fishing September the sterndrive products in XX, market continue number their XXXX. to nine market

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

Ben Palmer

Net of you, Rick. sales the million, of XXXX again compared to XXXX. was a for the fourth fourth quarter decrease of quarter Thank $XX.X X.X%

prices a sales markets, fourth was to of Gross increased popularity of selling unit sales Gross fourth the $XX international our our decrease and average margin cost number with year. compared a decreased to XX% of XXXX XXXX. the $X.X million X.X% manufacturing in and to quarter million expenses the $X to Selling, compared administrative XX.X% compared larger fourth the quarter of were to quarter in million, models. during Although the especially due the fourth due primarily in of efficiencies slightly quarter of declined the to of unchanged relatively quarter labor. last fourth XXXX quarter general profit in

lower of sales. Reform. fourth to corporate due income of increased the the XXXX full net XX.X% rates expenses to benefit SG&A XXXX fourth in quarter share in SG&A sales, tax XX.X% net of percentage quarter year was of Net the for last year. Tax from earnings include XX.X% per for and of the a XXXX As of

Tax to Tax net Reform December the $X.X of a to $X.XX compared excluding or impact earnings diluted impact of earnings of per Diluted of million, of of during we of fourth decrease share in the X.X% income $X.XX the excluding XX, per share of by decreased of For Reform XXX,XXX quarter $X.XX million XXXX, XXXX. quarter the XXXX. fourth $X net compared quarter the ended reported income

most which fourth fourth quarters Our decreased sales rate year. third the sales effective full-year quarter International of tax of represented of during the fourth in compared XXXX XXXX International rate trade our was sales quarter to also is the us during sales net due X.X% Canada, and X.X% and the net Mexico. XX% the in during European quarter tariffs the XXXX. last for notably significantly for to estimated effective of Union fourth of

balance and million, marketable end a million the decrease compared $X.X of $XX.X end fourth the of the of XXXX. at securities cash Our quarter was to

securities marketable capital, cost because as as and higher increased dividends well repurchases working during higher XXXX. as decreased balance XXXX, with cash Our share of of compared and

in at than higher compared the year over our As unchanged same last the sales reflecting our XXXX end essentially of With of given supportive to time of which model XXXX dealers December Rick. positive planned about the levels. of was that, confidence production XX, increase and the at turn inventories I'll to our remainder full-year year were dealer the prior year Backlog is it growth. the year back

Rick Hubbell

designs boats new Ben. results. of to contribution appeal we prices, consumers higher Thanks our their this selling and times larger Several to morning financial and our mentioned the

Chaparral its boat Chaparral a model supersized sterndrive distinguishes a of models a beam full end us is and enclosed to peers. This full sized with cabin. that big our lot SSX. the the cabin XXX One largest bowrider and from during comparably really is both of this The year is boat this mean beam the

Winter we'll Show's some retail showing season. Boat that the upcoming selling the other boats large at in be We have

excited about be We you may the this take to about morning, for are forward and you these XXX joining as are with Thank to about we'll we and look soon. them boats we SSX any as happy you talking have. us questions

Operator

IFS of from [Operator Securities. Bookbinder this time at Ronald Instructions] And hear we'll

Ronald Bookbinder

Have this wondering demand? I was been for the inventory on the engines, build supply able to outboard of was tight supply manufacturers fairly off-season. during

Ben Palme

This is Ben.

For we're today. us, in better yes, much shape

a part up that is because fact up of we've that working ahead, regard. our in and capital inventories to bit bought few ourselves In and the engines protect reason are a

generally we're point. good So at in this shape

Ronald Bookbinder

the in sector, has with agreements America? improved international North lately no that in And

Jim Landers

is this as of sales weak moment. has International this as Jim. improved. and this Not that are at moment Ron, Ben nothing mentioned, there's

Ben Palmer

our it's This is the percentage last course couple sales. for of the very total single-digit of in Ben. quarter low Luckily been us of fourth over quarters

the - anything a but of going relatively has to including based labor our that everywhere, that any changes momentum on total or no lastly now. anything that's to just or portion looking backup free labor and change And addressed change that that's conservative forward. real should been love good be any on going good we we small but not sales, So is quarters see to tight the everybody us at gross be news given it's is forward for market the we be point going would and several on would labor new be recently. [DSC] on this margin, cost been for the this

Rick Hubbell

people something certainly for labor to of are right working constant and enough It excluded and we're challenge Well train all to everybody to big address issue a always a is the that. is key and I not try people think from for we that.

we and up sort that attempted - stabilize. last place the and continue - that over to shows again it again of be the train those having developing shows workforce, us are the will right some right recruit few address the at inefficiencies the people it's challenge that to in new we're talking During people to up for places a There against to creating the hopefully try we're - programs to expectation are quality is it time we've quarters. for those couple and some as about. have We some to least of of improve quarters few hope another the of margins that but to of in going improve overall

Operator

remarks. in [Operator time to no call Instructions] closing questions would like are to additional queue. or now for this Jim I the Landers turn at back the any And further there

Jim Landers

Have people called appreciate much. question. appreciate in very listen, you soon. to the good forward Look We everybody a Thank the to seeing who I day.

Operator

within be the call. you of www.marineproductscorp.com conference completion this today. participation will remind your hours And thank for on call everyone, following to the do We replayed two

Marine Products (MPX) 23 Jan 192018 Q4 Earnings call transcript