MPX - Earnings call transcript Q2 2022 | Marine Products Corporation

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Operator

[Call Started Abruptly] Ben Palmer, President and CEO; and Mike Schmit, Chief Financial Officer. Also hosting is Jim Landers, Vice President of Corporate Services. [Operator Instructions] I would like to advise everyone that this conference call is being recorded. Jim will get us started by reading the forward-looking disclaimer.

Jim Landers

Thank you, and good morning.

nature today, statements to on risks. that may forward-looking started some everyone this get number be the a of we in we I'd and remind like that call of Before known reflect unknown and will make like all our release of at available our our you which issued filings that marineproductscorp.com. to other website XX-K are and SEC refer outline to today, I'd press XXXX those risks, on which call, Also non-GAAP is in EBITDA, earnings refer today's a conference of we performance. and operating measure to release use it We periods allows to compare in this to our regard various over us non-GAAP measure structure. capital because performance without changes consistently

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

our we'll and visit for comments you've release, Palmer. to then and a If President for the our will call new We'll over Ben turn website, marineproductscorp.com about make copy. press received a few your questions. be again quarter, at I CEO, not please available this our

Ben Palmer

thanks, Jim, you joining for call morning. thank all this our and

new As Marine to pleased mentioned, on as take of Jim and President CEO Products the I'm Corporation. role

Hubbell During remain of Directors of active the and with second Chairman Rick Executive was will quarter, named the Board the company.

and team Chaparral corporate shareholder-friendly Together, we Marine conservative team. at management will managing Corporation and welcome also our tradition in our new Schmit, a Mike outstanding with to We Products continue manner. of operational CFO, our work the Robalo

We when shortages. manufacturing of XXXX to quarter, that second XX% issued volume compared material throughout earnings a raw quarter because Corporation's increased the just few by to XXXX release this with sales was regarding the was of Products the highlights second second begin year. me quarter unit second our Let morning. facility our briefly XXXX down of during quarter Marine press shut the prior in contrast operated

shortages improved, recently to prices timing by migrated materials larger but continues and Average higher as have costs well impacted boat boats issues shipments be chain that supply critical implemented our to XX% price of unpredictable has and mix selling XX our of response model towards as increases cover XXXX, Some of actual indications had and components. production in to to Robalo sporadic share due Backlog changes components dealers increased a demand. X.X%. inventories extremely and highs months category plus market low. at of the indicate The in order and combination the in historic statistics XX-foot from XX that of orders March Chaparral to for remain share XX, market of ended updated the remain dealer outboards by

highest brand second highest XX.X% the of share the the Chaparral sterndrive in held in category, category. in market XX-foot which With this market third was a the Robalo share to category, XX this holding

that announced Mike of per this of I'd Board And with CFO, declared share. quarterly new We like morning a $X.XX overview, introduce also our Directors regular to our cash Schmit. dividend that

Mike Schmit

Marine very for part to contribute Ben. company's the excited Thanks, to Products opportunity the of Corporation to I'm pleased be success. and

quarter the the the quarter last of were of overview second compared XX% financial second for quarter an with company's start to XXXX of increase Net Let's second sales year. million, a results. $XX.X XXXX

our sales primarily administrative to second last general year. XX% or model second expenses the margin the of $X.X year. quarter the or percentage compensation, a The profitability, to costs model the that sales with of sales by were parts second million selling in supplier $X.X shift Ben unit compared were or XX% and sales to increase accessories million, XX% As XXXX. mentioned, commissions increased increased second in prices These second and net incentive net warranty vary increase by expenses quarter EBITDA quarter to model of in of XX%. and increased improved of sales was XXXX for million as cost sales margin of in second profit a and Gross was quarter XX% net mix in comprised $XX.X Gross last to the year. quarter Selling quarter quarter boats. compared to compared Gross the XX% of average million, higher increased due XX% XX% an increases response to such XXXX. million due XX% $X.X in last also of price a XXXX in compared Also the increases of of sales to $XX the and larger the of second quarter second increase as to to second an the quarter compared due of of expenses. during of quarter mix. XXXX,

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

sales accounted representing of increase markets for of Canadian international the doubled. to year. modestly, quarter compared Sales a to international Our dealers XXX% other total last our X.X% improved second sales, to while sales

of Order first end and Dealer of at timing remain for second support levels. Ben chain increases be over the and now offset in by of lower continue at demand balance end XXXX historically million required are cash capital sales The production due continue increase since negatively of higher the and cash XXXX. a end the second disruptions the historically impact they high of few to million, I'll end to growth indications were at the turn boat it of requirements quarter $XX.X our to XXXX $X.X to while closing inventories than back quarter increase of compared and lows to the profitability, other slightly the remarks. cash in of shipments. to the at a backlog than Our partially was balance quarter at working is the XXXX. lower supply now

Ben Palmer

Mike. you, Thank

to have preferences continue manage boats. change we we we historically strong As morning, business at remain secular and recreational metrics experiencing are we believe levels, for that discussed our this to in use the a consumer

also trend, are within rising discretionary recreational there and both that an purchases larger rates economic aware short-term concerns products. spending, slowdown, consumer impacts interest including this typically regarding of of which are We

short-term demand to consumer believe However, a not demand at that decrease have exceed demand. will a impact to results we meet even in financial of because also an industry's our our lower immediate level on that capacity continues

which over this be morning, any improve We and next chain to we'll ship take allow happy joining to the will boats cash. producing, few Thank supply generate additional and you ability us have. more expect issues us profits are questions for which quarters, will you we than to the

Operator

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

Your open. line is

Fred Wightman

I you're question. sort signs rates of flagging concern sort is guys, you're higher you bit bit a potential just mentioned market watching uncertain recently morning. of are more But the more suggests that was demand. of forward Hi down road? hoping Thanks guys little consumers good just retail cautious? there interest that color? or a seeing as Or in anything that sort I of for give that you for that could a maybe impacting macro the know you the the more that are

Jim Landers

fuel. I that of be just in a there Jim. would of rates And Fred, less might the range be very this sort morning. recession, More that slowdown feeling they Good is rates latter, point demand. what and ASPs a cause interest financing migrate sometimes boats, our cost interest of do say and that of smaller higher to is use is that out also you higher a see to people wide. would would fears higher perhaps

So about to that's that we at it. might in But nothing increase, one decrease plug really this have a yet, point. that's see. But not anything we maybe of but seen rate the thing honestly

Ben Palmer

This agree. I Ben. Fred, is

I out, said, think just, we're it. of calling aware you as we're it

production any rates our at all strong this that. they're anything demand. many have or Everybody, adjusted dealers, We of point, very like not, still our consumers, of

So to that's we're when and just we sure it remain it, appropriate. aware making feel react we we'll that of

Fred Wightman

started maybe are but were I the some are share bit it Anything like And And you then on on quarter, some guys of last Perfect. issues about just driver you this lingering talked also you front. of about some that's sort the you trending little shortage quarter, to when there last could chain, quarter? better see supply Where a you think sort than sounds issues. still improvement?

there any So would update be great.

Ben Palmer

helped Again, focused, appreciate is Yes, this in get of and and our Yes. boats. have up in dealers, to trying picking come dealers we Ben. particular, to the boats also many of issue on some we delivered

regard. a it's team So effort good in been that

continues just they're we and we there respect make signs quarter, issue that it be And to we'll during focus feel some have component in it but quarters. but the we're suppliers through to their work working a and but something we'll issue, little it's With some that second to of our coming to are be getting an are material the just examples are to inventory better, continues I that did shortages, perhaps issues And and able progress think a on. down so quicker lingering here there somewhat be where some hopeful. --

Fred Wightman

that on mix you one of us that then how benefit? way of of price versus increase. a the broad Perfect. sense the the Any could just And was sort ASP last much give

Ben Palmer

but model mix. again, price was a it's shift selling the Much and in -- to improvement up up in increase that's in the response costs. of more lot margin from the The is average

So it's more model mix.

Fred Wightman

Great. Thank you.

Ben Palmer

Thanks Fred.

Operator

questions And time. closing you Jim remarks. back turn Mr. over Landers, for Instructions] at I no [Operator are to there call this further some the

Jim Landers

who and soon. look listened, talking for thanks to else have Fred, to And question, day, to Rob. you, good in and you Hope called forward everybody thanks Thank you the and a

Operator

following concludes the within replayed of the on conference call X hours call. be conference Today's This marineproductscorp.com completion will call. today's

You may now disconnect.

Marine Products (MPX) 27 Jul 222022 Q2 Earnings call transcript