MPX - Earnings call transcript Q1 2022 | Marine Products Corporation

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Operator

Good morning, and thank you for joining us for Marine Products Corporation's First Quarter 2022 Financial Earnings Conference Call. Today's call will be hosted by Rick Hubbell, President and CEO; and Ben Palmer, Chief Financial Officer. Also to present is Jim Landers, Vice President of Corporate Services. [Operator Instructions] I would now like to advise everyone that this conference call is being recorded. Jim will get us started by reading the forward-looking disclaimer.

Jim Landers

good and operator, you, morning. Thank

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

our is website measure release performance. capital our on regard marineproductscorp.com. measure of Also, we compare earnings available All . this because structure. these operating today's at and to without us to refer performance in are changes non-GAAP of allows use We to a consistently in call, it periods conference over EBITDA, which non-GAAP various

if release financial press financial non-GAAP the to Our contain website today Please how our measure. of review interested nearest issued a which this reconciliation disclosure it's calculated. net you're is GAAP in income, seeing measure and this

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

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

Rick Hubbell

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

to be significant a for by quarter. few Marine Now impacted highlights continues in chain Corporation challenges. Products supply the

to driver key deliver to ongoing final supply boats of to the normal These As the of to year, challenges many continue a ability impacting with complete quarter shortages related as experience coupled the first of XXXX result, shipped our prior efficiently delays than components a in during delays, on we assembly fewer schedule. receiving are units effect boats. required in chain we

by of XX, actual last in of model selling to highs category, a favorable of The quarter mix, raw prices and this X.X%. that from in the this XX- indications was of Chaparral order price indicates months and which remain December by selling the held XXXX, increased market was updated historic Robalo necessitated an and sales a remain market outboards the for share market sterndrive plus dealers category, offset the increase a share orders as third market category brand the increases Chaparral in Robalo the share category because inventories ended cost low. XX.X% combination dealer as market boats. labor Backlog With increases XX-foot highest second compared unit increases in had XX-foot to Our the share larger share XX statistics to during decline of in well XX average which included materials substantially the and highest prices. Average the period. holding reporting in at

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

Ben Palmer

to to compared the components to sales well million, larger migration due the by decrease year. implement, continued labor to customer selling in increased Thank of Average first you, to prices were quarter due XXXX a first increases increases the Net for boats. $XX.X as for as and of X.X% materials forced were price quarter and costs we Rick. last XX.X% and preferences

first as XX% sales Every shows our XXXX million, million, in employment-related Gross boats X.X% scheduling the participated to the XXXX. XX.X% quarter in working possible compared administrative compared we last quality decrease general compared in as quarter margins boat in during increased problems year. to of costs. that of a of quarter first and $XXX,XXX Gross was of than to net of As of quarter during more higher expenses percentage higher increases supply larger as first EBITDA comprised of a production expenses were the XXXX first decrease the of $XX.X as than many hard the a These these in XXXX. $X.X despite first because declined to to increased company a in in and model margin of impacted challenging XXXX. because faced. X.X% to XXXX, resulting at was increase quarter of deliveries facilities. chain we to profit $X.X normal inventory by more Selling, improved build is employee sales of of Rick deliver mentioned, times. cost XX.X% unit level first mix a year Gross million last the and or the due quarter boats the boat quarter million $X.X an of X.X% the compared quarter and profitable first in

to XXXX. quarter ended of quarter were quarter in in the XX.X% per diluted $X.X year. last For share compared reported income first of March of we Diluted to a the XX, decrease net $X.X first $X.XX the share compared million million, per $X.XX 'XX, earnings earnings

XX.X% Our year. approximately project last rate the full We to effective rate tax a during year XX%. XXXX tax of first compared quarter was effective XX.X%

year. a international last compared in quarter decreased, dealers sales first X.X% to international accounted X.X% of other Canadian the Our to for increase of Sales our improved representing markets. but total, the

end boats. at in delayed and Our components by are quarter balance compared 'XX. of of caused fourth suppliers of substantially significantly lows. the will at quarter. historic results I'll at Rick to remain lower closing few end orders cash over that, and Demand end With end it are be million of $XX.X quarter inventories higher 'XX. continue quarter from higher of the declines deliveries cash back delayed balance resulting fourth critical slightly highs. cash cash the than at the first is deliveries of us. at the of for the $XXX,XXX to first end quarter turn The of the but than first remarks. 'XX, of point to was Dealer inventories the million, a a quarter and of end direct the The the Dealer year-over-year lower shipments for focal completed at remain than boat $XX the of the historic a balance and production significantly our sequential Scheduling decrease inventories at balance of

Rick Hubbell

our continues possible motivates Ben. boating circumstances. under revival Products produce focus resurgence efforts Thanks, on new as the on uniquely continued enduring as years and Marine boats X activity. challenging model to recreational emphasis Corporation leisure to many a ship quality American past and as This popular our our designs, over

volumes. were winter boat the well shows shows number demand of indications, take because generated there were strong ongoing place a limited COVID restrictions. Our optimism of is and supported by The continued strong did order attended although that

boat retail by retail their As demand we the inventories remain high. published customers. our selling low continue backlog enter sales dealer have the recently it remains from and And from data, Judging marine completely our problems our satisfying historically industry the season, report products strong to through most production demand. of appears dealers bottlenecks high is that that working chain prevented same and supply

this we'd like systems have. our you to and We and appreciate the and dedication customers. our us to dealers I'd you from thank of support be joining the of suppliers may any are happy take morning, these for and continued tackling questions our retail problems the employees, that

Operator

Wightman your Instructions] question line of comes Research. from Fred from the Wolfe first And [Operator

Fred Wightman

bit is exactly sort on more seeing give bottlenecks of you that is components a detail Could just there's where just if the acute? rotate? most chain a of little Or you're handful supply where the it

Ben Palmer

maybe the Unfortunately, our of -- other some that some innovative And different it's some widely on the of is not some items. has It's of available are put like But complexity or it's issue. our increases the of at because Unfortunately, not boat that as engines the particular outboard other components to than on used been well. problem, part not the the a contributing Step deal larger a unique into problem features our are Ben. with of variety maneuverability items to easily are This as are of particular that greatly to also particular these the factory. models. Power us there kits consistent trying

So that we catch so things unfortunately, wait to up to come we're complete that these just for having can construction. in and

like Fortunately, -- to impact significant not our way. of and things boats initiate of in that, in ability new has it that could impact construction materials yet any terms impacted us

it the I with components, their is way process lot time. of described these a we're for in that's put frustrating on but deal as involved of some other take to to able everybody And have boats, that plant, it does here the issues. current So through worked after the

Fred Wightman

of color? the just finished been you in the little second some shipping that sense. also you that as more something seeing just driver bit acute. a What and of Makes as far shortages Any it's you some of guys dealing from And improving out that give signs with, the there? quarter? called products, sort could are impact of you've Is had

Jim Landers

Jim. this is Fred, Yes.

to completely when some we get the part at you little issue and we any on books, and see ready go to they bit if sheet is So There our when close better, would We're folks come do like ready And goods are is can't inventory indication tell boats getting our and transportation. there on ship are exactly that's our that can. transport. -- some boats boats the finished you'll or soon that sheet to better. requesting goods which see that finished on balance are are But certainly, you a stay as allowing have is the finished balance we forever. as degree. to time, of dealers getting Those that they're and don't given or you awaiting what waiting but

Ben Palmer

Fred, Ben. this is

company drivers. -- We do we have have

our to transportation outsourced to have this try We issue. of historically some and address

supply the But of seeking is in problem economic it both to other up driver will as getting some the sources a only a things it's some free but it's receiving we're see issues, but timing industries. we're ship, chain Hopefully, the unfortunately, vendors drivers impacting us that -- a bit. many also hopefully, are seeing bit we signs better. from seeing it's shortage signs hopefully, parts driver from difference. We're little ability well. a shortages, and U.S. hopeful We And

progresses, not-too-distant maybe future, toward we So as in year ease the we'll it. it get the of normalized levels hopefully, and that back will

Fred Wightman

me. And for Great. one final then one

increases looks of for to just price land expected today? interest marine you comment customer give how the and demand you the that rates sort Just the you impact Could of feels really think aren't or or higher backlogs. the made lay

Jim Landers

a Jim the again. buy if marginal rates boat it's decides who Fred, interest to not There customer may do be increase.

of some at cost monthly than of could the marginal the term boat going point in $XXX increase And month things increase by at fine, some the that $XXX. look I least rates, so point, little may dealer or a remember, but buy and this rates you are buy basis was interest so average financial ownership like at the less XXX that, loan we If a -- believe to enough buyers are to for say that backlogs one. at to interest low going it's results, consumers the our foreseeable that are we our who boat not a still But there future. waiting not are impact time high inventories $XXX, at

Fred Wightman

agree Okay. agree I that. with that. I with

Operator

And the Craig line Baird. comes your next question from from Kennison of

Craig Kennison

how good well deliver can't move I It is willing and advantage you boat ahead versus capture you to boat that a season? process if supply. I'm this on are your guess or It demand used dealers And make yes, And the -- demand even consumers you another patient it just of to sounds take to to demand it sounds like what to today? is be even you. talk like wondering for sure is to of

Ben Palmer

Ben. it's Craig,

so think that's Jim demand think good everyone relates or point my to that similar are is would this said, a answer which we we issues. back feel at that indications kind I what is question, experiencing is back of relate that of type strong,

our deposits, We are taking are taking the -- of out are every working hard, accepting we indications at there. not dealers not certainly, orders. plant, But order that's

be we that of reluctant the are orders required any manufacture have plant parts order because the so to actual -- boat. to planning scheduled and from and We to actually forth and the and in procure could that's hand get at the production take able to every

styling our instances, heard We've and we feel out. than there's for our are folks of quality going So frankly, demand our really still out reputation of indication some any any are expensive that there sure demand not boat. there's feel away. point, high we our even that think, I'm many price but are no there that more in I and

customer customer indicated have soon dealer happier in retail frustrating begin remain -- are demand. And that think because going we Hopefully, positioned. the that I employees our here with. a all to as better supply that my chain patient will we right we'll so it's we're and it's everybody well the So make meet retail can again, free to the issues to hopefully, up certainly, happier, the company situation deal remarks, of and to really obviously,

Craig Kennison

a follow-up, And profile they of base? relative boaters? into the you might buyer are repeat much Are to as Are during visibility buyers? the you any what And new those seeing behavior among change groups pandemic? do have have happened they your

Jim Landers

know XX%, a are have who profile Craig, recent have it's general, we seem never started, boat since before. never of In terms boats than than changed Jim. to a thing. this more that's probably you, sort that people professional have the as not a before. but a buying percentage this update time age, we of XX% buyers, are people today The demographic income, pandemic XX%, owned boat is status, less of of greater have in that new owned but does I are at who buyers the seeing for don't north first-time defined of

have bigger, The boats. thought that retire as in may boomers this baby don't and buying gets future. numbers right wave that they the show baby will retiring long more be We that that moment boomers there

Craig Kennison

delaying tight a might may at and I boat if repeat that have follow-up know really say, ultimately just maybe customer this don't then market that, to the out would out And "Look, on looking of demand? of be but this might buyer. give my buy a repeat going I'm repeat there data, thesis just be sit you some defer even look any evidence there couple confidence are a a as purchases of a purchase." you deferred of Is pent-up any sort you existing some that that where your years, customers

Ben Palmer

"I'm Show I team was at "If sell of I'm the particular around want think of conversation was would loud Miami model. it. he I He be point, of a overheard the I'll Chaparral. I'm have, pleased with debating pleased our person that's there. sure was sort a management customers -- boat, I my buy." why happened who Boat Craig. when where not great out said, that was the this boat just sell at I actually debating one standing to with it, He I I and wait.

of deliveries. be for perfect I and to in I in know industry, understand." being me, also, think take to it's car going I the delays there's a able lot

particular again, So I issue, this to understand the but they going out. it were person, wait

able a think up, think be great were to point may Chaparral the if may be existing boat boat. that to that be to they're market existing or some -- other things I a make and I and you a new it owners they there free have boat, So flip whether use get able

yes, undetected consumers. where could we now right I -- for from there's know think direct demand there scenario beyond what be that's indications likely a very that out

you point. So a think make I great

opportunity another for that's us. think I

Operator

[Operator questions Landers, to I to would Instructions] further now at remarks. any Vice Services for And of call hand like Corporate are back no this time. closing over President the Jim there

Jim Landers

will Thank you, you else operator. has a We interest. day, thanks the called and thanks your Hope we and Craig, questions, talk to good for listen. who Fred soon. in appreciate everybody and and everybody to

Operator

your This concludes participation. Thank you call. today's for conference

now You may disconnect.

Marine Products (MPX) 27 Apr 222022 Q1 Earnings call transcript