Yahoo Finance Marine Products Corp (MPX) Q1 2024 Earnings Call Transcript Highlights: Navigating Market ...
Sales: Decreased by 42% to $69.3 million.
Gross Profit: Decreased 52% to $14 million.
Gross Margin: Down 420 basis points to 20.2%.
SG&A Expenses: Reduced to $8.7 million, down 40%.
Diluted EPS: Decreased to $0.13 from $0.34.
EBITDA: Decreased to $5.9 million from $15 million.
EBITDA Margin: Decreased 410 basis points to 8.5%.
Dividends: Announced $0.14 per share regular and $0.70 per share special dividend.
Cash Position: Ended the quarter with over $80 million in cash.
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide some insights on your production schedule for the rest of the year? Are there specific retail sales inflections you are looking for to adjust production levels? A: Ben M. Palmer, President and CEO of Marine Products Corp, explained that the company has set its production levels based on current demand and firm orders. They are hopeful for an increase in production following the selling season, depending on dealer inventory levels and order flow. The company remains cautious and will adjust production as needed.
Q: Can you discuss the current state of field inventory and any progress made since the beginning of the year? A: Ben M. Palmer noted that while overall field inventory is still high, Marine Products Corp is comfortable with its current production and inventory levels. The company anticipates that dealer inventories will stabilize, allowing for potential increases in production in the upcoming quarters.
Q: Will the promotions needed to incentivize consumers continue throughout the selling season? A: Ben M. Palmer stated that the company expects to maintain incentive programs throughout the selling season. These incentives are considered normal and are not outsized compared to previous years. Adjustments will be made as necessary, but the current level of incentives is expected to remain for the next couple of quarters.
Q: With recent issues at larger dealers, can you comment on the health of your dealer partners and their readiness to take on new model years? A: Ben M. Palmer reassured that Marine Products Corp has strong, healthy relationships with its dealers, who are managing well despite high inventory levels. The company is confident in its diversified dealer network and continues to support them with incentive programs.
Q: What are your expectations for the financial performance in the upcoming quarters? A: Michael L. Schmit, CFO, indicated that while year-over-year comparisons are challenging, they expect sales to stabilize sequentially. The company has implemented cost reductions and normalized incentives which should help in maintaining stable margins.
Q: Can you elaborate on the special dividend announced and your strategy for capital allocation? A: Ben M. Palmer highlighted the board's approval of a regular and special dividend, reflecting a strong return of capital to shareholders. The company's robust cash position and debt-free balance sheet allow flexibility in capital allocation, including potential acquisitions and further returns to investors.
These highlights from the Marine Products Corp earnings call provide insights into the company's operational strategies, financial health, and future outlook as they navigate current market challenges.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
