MPX - Earnings call transcript Q1 2020 | Marine Products Corporation

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Operator

Good morning, and thank you for joining us for Marine Products Corporation's First Quarter 2020 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. [Operator Instructions]

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

Good morning.

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

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

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

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

Rick Hubbell

indications XX% reduce a first the fourth issued to We goal almost the first quarter this first dealers our Jim, time end operational order of decreased discuss our earnings thank selling the as of had CFO, planned Early we production inventories. quarter, results because highlights. Ben a dealer We the will in you. briefly by many declined strong of At production financial accomplished – the prior will in to of quarter inventories in the morning. compared as year. dealer XXXX We for press detail by moment. Palmer, in release during season. the quarter discuss I our this this increase more to retail

At selling of our events our in time, we it we to impact would early production began manufacturing end of suspended community. May. became macro March, this hope that and employees, in season. operations the emerge the pandemic mid-March, COVID-XX of out our family, for as At However disrupt resume their concern boating retail temporarily clear to

share market the in and And outboard to Chaparral Robalo to will combination Robalo the share also first review be models at market size held pleased end both of that market outboard of recreational I'm share their boat category. its leader leader the we highest report in a quarter, a continues to sterndrive the continues As Chaparral market share in our category. be the category. outboard

board We morning of reduction a directors declared announced this the $X.XX that previous $X.XX our quarterly quarter’s of compared share, dividend dividend. regular to of a per

during the As first in quarter, repurchase did shares open a the we not any of common market. note, stock

I'll over Palmer. CFO, that turn it our to Ben With overview,

Ben Palmer

XX.X% margin Gross caused decrease last was to quarter were profit as percentage the first Net of XXXX. Thank a sales XX.X% to you, sales of unchanged. current the prior XX.X% inefficiencies quarter to the lower of the of cost XXXX to first year first quarter was Gross $XX.X margin XX.X% declined selling XX.X% a quarter first in in this during million, million, prices first compared quarter of compared were declined a quarter. Rick. the year. the to compared compared quarter production the for during manufacturing due of the decrease by Average net XXXX. Gross sales quarter $XX.X for of the year. Unit by first

sales XX.X% of These million due XX.X% $X.X XXXX, in profitability, last expenses. quarter to of in the and decrease quarter year. net sales and lower first a and $X.X million of Selling, were general These first expenses quarter sales including quarter first of of $X.X million decreased XXXX that the expenses compensation administrative compared the of to the first of compared incentive expenses to with expenses net in XXXX. warranty in vary were

in March net decrease net of of of a XX.X%, compared $X.X of XX, ended million XXXX. we’ve income income For to first million, reported the quarter XXXX, $X.X quarter the

the in this $X.XX $X.XX were year the compared quarter share first per in of earnings to quarter XXXX. first of Diluted

in first last the XX.X% rate compared XX.X% effective with XXXX during first of Our of year. quarter quarter was the tax

Our decreased total international sales by XX.X% sales. for X.X% accounted and of

Our moderately. only international sales decreased dealers to Canadian

other balance XXXX. decreased quarter of Cash at million much to of and significantly. an marketable the to of first the markets end international sales quarter of first the million, increase the at compared cash more was Our million $XX.X $X.X securities $XX.X of end

XXXX. the As XX% Rick were mentioned, lower at dealer inventory compared quarter quarter year, levels to of first almost the of first end of the this

We as will resume production. we begin our backlog to manage

temporarily end March, and orders. been we were and we – had production in dealer for did which from which some shut there Although of the manufactured April, firm down ship at boats

With Rick. that to I will over turn it back

Rick Hubbell

Well, challenges in Along unprecedented business companies months. other unexpected across with thanks, globe, the faced the and have Ben. two past we

time, boating communications recreational belief network providing appeal in we private long-term American dealer consumer. disruption managing have enduring the their our by and walkthroughs efforts consistent through assisted of conduct this to for During to viewing We're guided this present actions are our are an and the appointments. virtual and

fact, as left offering and dealers setting. shelter-in-place temporarily In in in outdoor recreational as safe boating homes are an reports activities that friends and in an April families strong March encouraged urban families several in we our sales areas with very the of opportunity by to for enjoyed areas

during resuming in few number increased X. note significantly to have and social time, operations indicator the that our forward are the interest week We another of our to May weeks. the this engagements of production we media As during look traffic our of during web increased pleased products past

us morning be we'd Thank and you for to you take questions joining happy any have. this may

Operator

of from Mr. our ahead. take We Riley. Instructions] [Operator now Eric Wold question will go Please first

Eric Wold

morning. good and you, Thank

Rick Hubbell

morning, Eric. Good

Eric Wold

March, due were levels of reduction inventory. obviously, I shipping plants assuming that to of down majority was production guess, to dealer the your at of shut I'm knowing the manage couple the the in quarter questions. decision end reduce A to

impact I get of and of quarter to reduced or if at in levels kind May the you the before reopening on were be what in six the back second production that a early QX for you kind the of So first assuming of, is that -- production track to place? the were there we weeks levels would stay lose frame those guess, five an to, way plants,

Ben Palmer

This is Ben.

can imagine, the do we're that, soon. to many making production some their resume as resumed the here. the plans get we've component very back dependent certainly have of the or have chain best think supply get upon managing difficult to that have discussed our on of that's as have working our on you going frame been to we to manufacturers, We'll can place that's key question. we and We which quickly -- to to As levels. up prior but production very in be a But been plans workforce time

going at So But to worthwhile I a difficult as can, ramp question. time up and as mean quickly as and we we we're to just comfortably see. will this see.

in comments of been March did shut that we even the As have bit in of in a even April, -- to into that we we had out number April. pointed our normal manufactured but that late for little whole month down here, a boats was the course in though did continue ship production

without some manufacturing were So there, there operations continuing. sales again,

Eric Wold

Were just communication still workforce that it relative bringing Or it the I being you a how helpful. and in Okay. let in Are employees, to and is was of of, with back sense the process shutdown? -- them? to just employees prior guess, HX? That's is ramping where of go? maybe what kind a

Rick Hubbell

we'll to of back will since Again, complex and in but ceased them little can and how to have it for We're have but goes. be it a that, hard to to we will have some unemployment over been communicate I just see complicated, month at But we are to the like be able with have things worked to coordinated production, them been get make them. communication so imagine, working point, can of But a each do we a this hard kind do communication channel in come as a have it you happen, a with be filing we it community. that mechanisms And fairly to it's really manner mechanism. employees. be we -- assisting but guess them and with

We many community made to Chairman's And pointed of out live there. appreciative down press our our gift family and which employees substantial very the that that. in our the were shareholders majority of they in release a

way families to And their too themselves to connected get a to remain employees, so that's again, meals. with came the many which, of

just And useful, be have so it in was we'll another that see too. to And contact, more recently will stay them to hopeful how way month goes. and so ago that seen than a having we're

Eric Wold

Okay. just final demand. And been of know a tough it's kind me. for around question environment I then

You all seeing in coming that. talked even dealers your demand some about good with stay-at-home, the of

given Are period? there heading that kind into dealers are key reacting Just of relatively what's been the the mix? firm discounting pricing, to they Or environment? staying -- on into the summer this some are creeping how we're

Jim Landers

lower. really hard extra all fairly we've right dealers' may with lines don't. to there Eric, in is shape be i.e., general, inventories And good supply, in now. this being is inventories say here. Jim product you or some demand also you discounting. our Either think a actually inelastic are we our of boat want dealer But across It's found declining, that

So see being what and in a interested demand. to we will We're meet more don't demand as that this be environment. able discounting

Rick Hubbell

anything this hearing at point about additional not We're significant Yes. discounting.

be most moment. retail dealers, this been selling As part, additional the think firm holding at very into placing understandable to but stronger the honest, and haven't you reasonable certainly been said, that's going season, of lots orders, I and, have for

comfortable and think many getting really back many to to from see on how and get been the recreational and foundation good nice their thing with it of out lenders, to are the of away I back houses to lakes and bit and has feels their good we're be to get of lake, get if a has how and see the how and lake, everybody But out impressive, boating. it working inventory, people demand for that and that the with come floor are that provide things, people we current gets this they're enjoying a of out has out, comfortable plan to heading

with So pleased that. we're

Eric Wold

you, Thank helpful. guys. That’s

Jim Landers

Thanks.

Rick Hubbell

Thanks, Eric.

Operator

remarks. [Operator have at the questions appears you to any hand like over I final further back would call this time. Mr. Instructions] no Landers It to for Jim now

Jim Landers

everybody, and us a safe, Thank day. thanks who you. do But to have and to everyone questions, people good to the Stay thanks Thanks. the listen talk for soon. we now. That it in. will for called Eric, will other

Operator

today. Ladies call this and our gentlemen, concludes for

two this your will within for of disconnect. As be you Thank a for all conclusion call on replay and now much participation, available a you may marineproductscorp.com hours at very the reminder, call. today's

Marine Products (MPX) 29 Apr 202020 Q1 Earnings call transcript