MPX - Earnings call transcript Q2 2021 | Marine Products Corporation

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Operator

Good morning and thank you for joining us for Marine Products Corporation Second Quarter 2021 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 Services. At this time, all participants are in a 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

Thank you, good Charlotte, morning. and

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

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

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

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

Rick Hubbell

thank Jim, XXXX press for a moment. the of the issued quarter discuss detail will in financial second Ben CFO, earnings you. We our more in results morning. release this our Palmer,

Recently retail highlights product few have beyond quarter the data increased a reflect so results high on of this second selling Marine that our Products extraordinary XXXX retail season. which XXXX year. indicate continuation we far the the sales demand, expect in Corporation’s quarter. reported Now, XX% categories

second dealers the share last year. strong have of of We during pleased in am were our to participated the in higher that in than both market our quarter Unit I report continued almost growth, to second and brands. XX% sales quarter

market, almost strong to second growth the management – last team, our dealer retail half appeal and remember is safety sales sales boating of that our growth our our the the the year While still concerns, facility quarter COVID-related products. manufacturing closed to very recreational of speaks we for this was network strength and have due unit to of

that dealers levels, the they inventory in historically for at end and indicators outboard the XXXX was backlog shares XX- market. And years. market reporting retail Our XX Robalo highest to the have the at to the positive share our hold market both especially These retail The of indications category. lowest other and compared what increased me, recently period. remain outboards our months of March market are report previous sterndrive that of high share the firm orders of season. Robalo reported indicate outboard and X.X% hold excuse that statistics to XX, the selling continues – ended combination and Chaparral the XX-foot traditionally in

in counting hold Chaparral’s XX.X% a outboard its the range. period. market Our share The reporting increase of the both Chaparral market sterndrives slight boats hold boats brand the size highest sterndrive their from among sport and size in range, previous

regular Board that dividend turn over per of announced CFO, our of this We yesterday to declared I’ll morning now With share. $X.XX also Ben quarterly it a Directors Palmer. that our overview,

Ben Palmer

$X.X and efficiency to during the the during the XX.X% quarter mix, chain the our Thank second increase percentage as quarter second to of to of reported boats. net as million XX.X% in we quarter compared such sales second you, of $X.X were $X.X XXXX. supply than the quarter of due second Gross in the and and the times expense. for production, year. as selling XX, last but margin profit included were million, Unit quarter Diluted higher in second was net the net to of earnings earnings These sales an commissions, due percentage quarter of higher XXXX $X.X million, quarter, of quarter compared continued warranty share per a XXXX, quarter quarter income $X.X increased share $X.XX the Net was increase higher of June the an compared increase as second of partially costs in $XX.X expenses prices which Selling, a diluted generated were the sales year. compared second we sales XX.X% quarter increase a million second XX.X% incentive net to models. material of million $XX.X ended offset benefits profitability, Gross with of to The disruptions administrative $X.XX X more compensation model XXXX, of million, XXXX. across the quarter margin by Gross XX.X% of due a of we expenses X.X% recorded second higher income year. compared increased quarter in sales Rick. an second to XXXX. per XXX% vary that sales. larger of Average last in increased all more last expenses the and were to by million sales general in of which the by

second quarter the in of prior XXXX XXXX compared and XX.X% year second rate XX%. tax project of full tax approximately to effective of during year, Our was the quarter a we effective the rate XX.X%

accounted of sales of quarter to during quarter total the sales second and for last year. international the Our compared X.X% increased XX.X%

million at Our $XX.X the second XXXX. of at of the compared $X end quarter the million cash an to balance the was of quarter end million, second increase $XX.X of

and significantly sales lender completed dealer next by will the and balance that believe than negatively would and higher quarter be to delayed We shipments production we earnings of net that the the second during and due end generated cash this quarter, by is prompt that during current dealers, third XXXX quarter offsetting our from boats XX% our normal, inventory increased otherwise resulting sales impacted sales we substantially earnings floorplan these of levels. to the than on XX%, lower supply and shipments units receivable to shipped in of payments. all quarter our accounts estimate be flow were chain disruptions. inventories of note completed Partially reflecting hand higher was sales – While at very from second inventory strong, of delayed rapid

Rick back for Rick mentioned, are at our I’ll a backlog remarks. has order few low. remained closing levels to extremely turn that, and over historically With dealer high As inventories it

Rick Hubbell

have Thanks, Ben. the demand positively chain though into developments extraordinary in another half component us. level continuing the ushered same affecting Unfortunately, The constraints recreational in of are of of a developments supply are temporary global boating second XXXX. new are that macro that

We inefficiencies. to and are managing suppliers by maintaining while these with our our quality issues coordinating maximize minimizing production

delivery focused on expectations. dealers with regarding We are effectively their communicating our

highest flow the possible. We and them nine order satisfaction out in retail customer planning our maintain production it dealer to the to our with network allocate are next coordinating our months equitably relationship to and over dealer ensure

maintaining take our morning, and in product by strong be to have more introducing order month, this and model delivery are I’d streamlined XXXX lineup and create have. appeal. We consumer it may like with us schedules happy thank we’ll you while to we production lineup this you any to joining about a efficient questions for XX%

Jim Landers

Thank and Charlotte, you, in and thanks listening watching. for appreciate called who it. is and We everyone

I’m and low, to new in chaparralboats.com visit on get up, ask the and might there, beginning in idea. our dealer to you be have robalo.com. is going interested send hang and very that’s kind to it ask but boat, – our I for if fun new about a told figure we of you’re think boat. product a do that corporate you will a websites, we Before this. and build-to-boat a local Inventory great so we it website get line feature you a of out We on your want great at boat

soon. to have you good again. Everybody, you Talk So a day. thank

Operator

concludes Participants, conference will call. today’s for the the conference be participating. call. following the on you Thank within marineproductscorp.com This X replayed hours completion of

You may now disconnect.

Marine Products (MPX) 28 Jul 212021 Q2 Earnings call transcript