MPX - Earnings call transcript Q1 2019 | Marine Products Corporation

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Operator

Ladies and gentlemen, good morning, and thank you for joining us for Marine Products Corporation's First Quarter 2019 Financial Earnings Conference Call. Today's call will be hosted by Mr. Rick Hubbell, President and CEO; Mr. Ben Palmer, Chief Financial Officer; and also present is Mr. Jim Landers, Vice President of Corporate Finance. participants a all mode. time this are listen-only in At

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

Jim Landers

you Thank good morning. and

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

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

our a a one, We'll www.marineproductscorp.com not make received questions. please If will then about be available our we copy for website, visit like for you've release at your few quarter the again of and and would copy. comments a press

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

Rick Hubbell

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

in sales share. its is X.X% books, general, mix sales average Products Marine increased the number the quarter. increased decrease leading during for first In by the in XX.X% by maintaining sales during highlighted of sales a the sold. increase These was selling that model Our offset by increases quarter. of accounted to partially to were X.X% net a market boats Net in sales a prices. smaller more strong due unit boats larger decrease Corporation of

outboards category a Robalo the with maintained overall largest brand share, in its XX.X% this For position products the combination in second the highest of in And of the share with XXXX, market X.X%. share X.X%. highest as and third position Chaparral the market the held of held Chaparral a market sterndrive market that category. outboard Robalo

We announced of I'll share, quarter. quarter, as the shares per dividend previous regular of we per declared first our a turn CFO, our Palmer. this it stock over the in to Ben board market. also morning share overview, dividend in of $X.XX XXX,XXX regular yesterday the With same quarterly Also, directors quarterly that that our repurchased of common $X.XX open during the

Ben Palmer

the decreased this for increase the quarter first Thank year. X.X% quarter XXXX compared unit of last Unit to decline. sales million, were by Net you, sales for an smaller boats with first $XX.X Rick. of sales X.X% of the accounting

larger number our models average as by very selling however, XX.X%, increased a of Our sold well. prices

due to to sales our parts XX.X% that and margin $X.X was with headcount expenses to million, and almost with of model by increase compensation of increased of higher were Gross compared Gross and the such higher and an slightly the XXXX. first quality. These Selling, to profitability, year. quarter increased the research In commissions, costs as the accessories with XXXX million profit in first million sales last increase million $XX.X as quarter of development support rates administrative of XX.X% compared XXXX, general, an incentive with new quarter as the assist quarter addition, of XX%. in development. first and $X.X $X.X and the first to due expenses sales declined in retention expenses compared increased targeting first quarter well to during improved labor quarter X.X% higher in

quarter 'XX increase sales, $XX with 'XX. percentage net compared $XX,XXX, year last during of first an Interest of -- in year. this $XX,XXX XX.X% million $XX,XXX quarter the of the quarter was increased of first first first to a the quarter of during or compared income in expenses SG&A of to As XX.X% the

in portfolio we ten we years marketable During effective deposits, return had this short-term securities deposits liquidated taxpaying more our the our X.X% is in than first reinvested The of income quarter and in March per share which to the than $X.X in higher previously $X.XX taxes of which and million, at our XXXX. net which taxable on for of of interest. the time invested and proceeds taxable-equivalent of both were rate first of quarter a due a of the XX, million tax-exempt the as $X.X we've ended pay quarters invested. change XXXX. present XXXX net compared tax We we income first securities to entity. made quarter, The the Diluted and bank that we've lower 'XX, decrease the bank reported in status earnings

'XX compared of by last in XX.X% quarter increased of with compared was in of first Our quarter XX.X% prior our many to in International net the International the in international markets, year. year sales in the X.X% first during of quarter sales first sales 'XX. sales net sales of effective represented compared the the Canada. although and X.X% tax decreased quarter of to rate grew X.X% first

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

of as of Our cost requirements, working higher decreased because the and dividends cash and as securities previous increased four capital quarters. repurchases marketable during well share higher balance

same the backlog was average selling Unit to immediate the lower As year. in of that the will year. XX, than backlog at report to dealer average The we dollar reported prices higher quarter XXXX, March future. time and we slightly higher was selling unchanged inventories the essentially last the slightly due were at this -- believe that quarter end of compared prior

XXXX the year. We for have reduced order healthy unit to in upcoming our model production inventories in slightly dealer preparation keep

Rick Hubbell

we the boats. to we preparation strong, have years. that inventories feature that you, retail-selling for in are that continue Products our you ensure for happy believe prominent found Thank upcoming A questions and thank large opportunities season models like appealing we'd believe during will we the to I retail demand you for XXXX several customers the boat new shows. our morning dealer operational attracted monitoring to potential but develop us be continue be take that remain financial Ben. is to any have. that We may winter to and We of XXXX healthy joining this Marine

Operator

our question [Operator comes Eric first And Wold B. Riley. with instructions] from

Eric Wold

the that to the be quick of the improvement get tariff really weak Canada, expected change is could on Two there? Are One, lingers, expected norm may morning. release some can you in down And we understand that I seeing until any stay or had then follow-up? any quarter. demand become you more trends Good in you. as a I that in or questions. continue Thank to region

Ben Palmer

would with this uncertainty Ben. some it uncertain you that is be a to or definitive probably cleared that Eric, no a there's improvements. will I little that I of up. little until continue say gets agree trends or weak

Eric Wold

remaining impacted kind in from certain one the preferences dive Any buying types boat still aside more or it Thank kind kind weakness about a little and you in around optimistic the marketing. in more that of that your specific is kind pause you. And were maybe out kind of and ASP know than in than -- I Then models show quarter kind year? of that, of what season, financing as into smaller show not, of that as boats you the or what shifts was the are drove more kind the heading those others? of the talk was boat to maybe remain trends features, needs maybe there of then last then, are of into kind underlying the if giving coming boats bit everything can if possibly of

Jim Landers

I point Jim. are trends. view. a think -- is March smaller being it more or or susceptible that it possible We we see smaller to at short-term larger and trends boats a more are really smaller Eric, And is that weather any susceptible of being of this purchases February boats was boats do discernable boats this -- is to know It don't from difficult questions. point would weaker. point. that Good

little you might March, are it a bigger buying boat, you about impulse rainy and a small with do for boats, Whereas thinking an of purchase. cold, a that. more have you it's different If not it's a if plan mindset. might you And

to us, So a find different designs Also to possibility. that and trying niches market that things. just we're appeal is for

sure one macro big to the our or not I'm So other. results way point that trends

Ben Palmer

is stronger And that's in more larger small of there the I on just the that as that boat couple to appealing to last Well, this Ben, think of us, we're to -- boats market appealing to a where the and seen seeing and I overall, boats spending develop us. years more our more up we're -- dealers. strength say demand R&D it's as that's we've add we're dollars -- much a and would so over for to I The we're sales, weaker trying that, that's for some I larger trend think, for our picked is recently. continue positive think trend

boats, of than that more So boats. excess smaller just larger weakness the on focusing again, some the us is in

Operator

you. Thank

IFS comes question with next Our from Ronald Bookbinder Securities.

Ronald Bookbinder

boat you are slowdown, taking markets, Continuing the questions. for thank Good higher smaller is morning Canadian market of my they international the on percentage with smaller boats? or and

Jim Landers

to different, not that is good discernibly the into sure a mix so. but It's believe Ron. I Not that, delve do question trying

Ronald Bookbinder

not do I so. believe

you You just that talked had of smaller cut boats had less on larger of selection? such appealing an about boats, production your focus just you

Jim Landers

models. produce still our We No. of all

you -- there financially. during a every just So the found more is our want. produced for retail-selling that's us sometimes frankly, you certainly larger have season, models. boats the but been model that would We better that can't always you we certainly get There and and all for waiting line demand of was able

where that's operated So in quarter. we the

Ronald Bookbinder

smaller past purchaser people boat? as macro other aren't who impediment such But you some clear, entry-level entry-level see is that that looking for or there's the that boating to in a getting into sort some not boats don't of younger for be slowdown in

Jim Landers

would large-economic that. I no. three discourage of sales. would you discourage global I No, really from our assumptions months making from

Ben Palmer

the production the did The I guess, fewer sell on me. boats boats, smaller in Excuse quarter. we smaller

more it's to smaller shifted producing -- again, on but the we So fewer been ones. focus are has the production larger boats,

Ronald Bookbinder

the and that SG&A, in sales higher points. despite basis there XX costs? deleverage fixed caused the on it the Okay, Was anything specific on delivered

Ben Palmer

is of flow-through. variety This It just Ben. was a things, the

are rates gross also and employees affecting focus focus we margin. labor also talked There our on quality. this -- in retain improving of or on SG&A, rates are our rates labor to all higher about to We higher trying our

help will side. that investment employees future our on quarter, we was little spending in a the it's So larger R&D in profitability on up an boats. the bit focus believe us warranty and to the of the again, Also,

year, detrimental also impact and the small of were variety also there down in in But also fourth a audit So plan, it external an our quarter won't The net of was the retirement is the is through. last this a markets accounting fact there that year, fact there supplemental first of were flow was markets timing in that flowing our small get What was equity -- benefit. distortion. the and the there market into things. procedures was from auditors I the up quarter the a

hit So there quarter. kind that things of first of was variety during just a this

Ronald Bookbinder

Georgia costs, is finding or distribution? it retail labor And just move to that higher Nashville, the at your your product to you is just production your in network, the truckers or mentioned

Jim Landers

Ron, Georgia. what was plant impacted rural manufacturing our the in financials

with hiring manufacturing States skilled in I or United skilled having think of labor the labor. and company problems now right -- industrial every retention is

the So for us. financial that is where impact was

Ronald Bookbinder

be conference And New at presenting on Burkenroad lastly, will in Friday Orleans? the you

Jim Landers

sir. Yes,

look you. We to seeing will. We forward

Ronald Bookbinder

seeing you Okay. I forward to look all.

and very it luck a the in execution Okay, thank And was of year. quarter. with the much good the rest nice you

Operator

instructions] Thank At further time, I'm you again. this questions. [Operator showing no

Mr. closing Landers I'll for comments. it So back turn to

Jim Landers

soon. everyone in called questions dialogue. the We and you. who and forward the look to talking appreciate We everyone to Thank especially

So good Thank you. day. have a

Operator

as gentlemen, within on of will www.marineproductscorp.com reminder Ladies hours call. That following two replayed today’s call. completion a today’s concludes this and be conference the

may disconnect. You

Marine Products (MPX) 24 Apr 192019 Q1 Earnings call transcript